Bruno Olierhoek, Chairman and Managing Director of Nestlé ESAR has announced that Nestlé, Nomanini and Standard Bank will be providing a technological and operational boost to Informal retail Micro, Small and Medium-Sized Enterprises (MSMEs) across the Eastern and Southern Africa Region (ESAR.He emphasized that the region’s economic growth is interdependent on strong partnerships amongst various stakeholders, including the informal retail sector.
“With Nestlé as one of our newest clients, we are able to address these and other key business challenges and transform the informal retail ecosystem through an innovative solution. Through our platform, Nestlé is able to provide much-needed access to sufficient working capital so that retailers can stock a wide range of high-quality products,” shared Vahid Monadjem, CEO and founder of Nomanini.
The capital will be offered in the form of physical stock, not cash. According to IFC research, the vast majority of retail transactions in sub-Saharan Africa are cash-based and occur in informal channels. Many retail MSMEs are therefore unable to create the digital footprint necessary to access the credit they need to keep their shelves stocked with high-quality essential items.
Due to the coronavirus lockdown regulations, many MSMEs across Africa were negatively affected by disrupted supply chains, inter-trade, as well as reduced consumer sales.“Being able to support the creation of wealthier and healthier communities by providing working capital to retail MSMEs is a real win for all,” said Adrian Vermooten, chief innovation officer at Standard Bank Group.
Standard Bank’s solutions are designed with MSME retailers at the core, through using technology and data, the bank’s partners can help MSMEs access credit responsibly. Following the successful implementation of the trial of concept in Zambia, Nestlé is set to expand the solution into other countries, benefitting thousands of MSMEs across the region.