BUSINESS
Haskè Ventures invests in informal economy-digitalising start-up, ProXalys
Haskè Ventures, the venture builder for Francophone Africa, has boosted the growth of Senegalese distribution chain innovator ProXalys by investing $150 000 in pre-seed funding in December 2021.
ProXalys, founded in 2021 by finance expert Thierno Sakho, specialises in digital transformation in business-to-business commerce, with informal sector retailers as its primary target. The start-up aims to modernise and empower Senegal’s informal traders, who account for up to 90% of the country’s economy.
A key challenge for the sector has been growing competition from large distribution chains that have modern and formalised processes. With this new competition, informal businesses are reinventing themselves, particularly through the digitisation of conventional supply chain processes.
ProXalys is working to level the playing field for the informal sector by digitising the entire value chain and reinventing the supply chain processes of the numerous actors in this ecosystem.
According to Sakho, “Digitisation is crucial for the informal sector. We intend to strengthen and modernise the distribution channels. Our goal is to enable informal traders to withstand the dual digital and distribution revolution created by the large multinationals operating on the continent.”
It all started with a simple observation: informal traders, which include small scale vendors that operate on the side of the road – many of whom are women – and distributors of everyday products, experience difficulties accessing traditional loan or credit facilities, which are generally offered to formalised businesses.
ProXalys has three tools for managing and capturing daily financial flows in real time: an order-taking application for informal distributors; an IT system for administrative management (which includes order tracking and payment management; and a supply chain logistics management system – including: inventory, warehousing, transportation, and delivery.
The start-up also provides a procurement service for everyday products, such as onions and potatoes, with staggered payment terms and free delivery within 24-hours. A solution that will allow informal traders to extend their sales capacity thus enabling them to secure working capital for stock.
With more than a hundred customers, ProXalys is winning the trust of informal traders in Dakar. But the start-up does not plan to stop there and is also working to boost agricultural value chains. Each year in Senegal, 150 million dollars (100 billion F CFA) are lost in agricultural production due to limited market access.
“We support producers of all sizes, as we are the unique intermediary between them and informal distributors,” explains Sakho. ProXalys also works with formal sector customers across retail and hospitality value chains.
Thanks to the first round of fundraising, ProXalys intends to expand its reach in Dakar and in the major cities of Senegal with the ambition to eventually support the entire West African region. The start-up will invest the $150 000 capital in the reinforcement of its technology, and in the development of its physical infrastructure – which will include the consolidation of its vehicle fleet and warehouses.
Abdourahmane Diop, Chief Executive Officer of Haskè Ventures says, “We believe that technology has a key role to play in modernising infrastructure in Africa, a major challenge that must be addressed through the upgrade of vital operational channels. Additionally, the transfer of knowledge and skills development will play a critical role in ensuring the sustained longevity of initiatives undertaken now. We are proud to be supporting ProXalys on their journey and look forward to future progress.”
BUSINESS
A’IBOM GOVT SET TO PARTNER CHINA FOR ENTREPRENEURSHIP DEVELOPMENT, AGRICULTURE, TOURISM, OTHERS
BUSINESS
LAGOS SEALS PARTNERSHIP WITH NIGER FOR AGRIC COMMODITIES SUPPLIES
Lagos State Government, on Wednesday, brokered a strategic partnership with Niger State — a sub national entity with the largest agricultural farmland in the country — towards enhancing food production and security.
Governors of the two States signed a Memorandum of Understanding (MoU) in Lagos for a cooperation geared towards exploring their comparative advantages in order to facilitate constant supply of agricultural commodities for the end consumers.
The agreement tagged “Produce for Lagos Initiative” is part of the efforts of the two parties to key into the Emergency Food Security Initiative declared by President Bola Ahmed Tinubu to cultivate thousands of hectares of land to sustain food production and supply chain.
This arrangement is a long term strategic partnership between the two States in building competencies around their areas of strength. While Lagos is positioned as a ready organised food market for consumers, Niger has its core strength in arable land for agriculture and food production.
The signing of the agreement will be followed by massive supply of fresh farm produce to the Lagos Food Logistics hubs for storage and distribution.
Gov. Babajide Sanwo-Olu and his Niger State counterpart, Mallam Umar Mohammed Bago, signed the contract on behalf of the parties.
Sanwo-Olu said: “We have just put the pen to paper and signed the Government-to-Government agreement between Lagos and Niger states for agricultural production. Lagos, being the smallest State in terms of landmass, and Niger, being the largest State, is no coincidence that the biggest and the smallest are looking for at opportunities to citizens of our both states to be the beneficiaries of this historic partnership.”
Gov. Bago described the partnership as “a landmark” for both parties, noting that the North Central state was willing to leverage organised market in Lagos to boost economic activities in his State.
He said: “This is a landmark agreement that has been made today. Lagos is the largest consumer of agricultural resources in the country based on its population, while Niger State has the largest agricultural land. So, this Memorandum of Understanding came on the heels of exploring the strength of each state to promote food security and safety.
“Niger State is to produce agricultural commodities for Lagos State, and also process staple food items. Lagos State is to leverage the organised market and supply chain to meet consumers’ demands. This is basically the simple explanation of the Memorandum of Understanding, which is in tandem with Mr. President’s food security agenda.”
Lagos Commissioner for Agriculture, Ms. Abisola Olusanya, noted that the arrangement would help in price stability, as the MoU accommodated pre-production contracts in the value chain to enable farmers cut costs and improve output.
She said the first phase of the Food Security Systems and Central Logistics Park being built in Ketu-Ereyun, Epe would be commissioned in December to warehouse the large supplies from Niger State. In the meantime, she said the existing middle level hubs would be used as distribution points for the supplied commodities.
“This is a marriage made in heaven for our two States. This is a function of production meeting markets. Once there is an off-take market, it would catalyse the production end of the market. Then, this will lead to price stability and food availability.
“Farmers’ profit will also be guaranteed, just as consumers will be happy for timely supplies. We will also have middle men who will have regular sources of income by acting as a bridge between both ends of the market.”
Some of the agricultural commodities to be produced and shipped to Lagos markets include staple foods, rice paddies, tubers, beans, legumes, maize and grains.
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