Tag: kenya

How Lynk is building a “TaskRabbit for Kenya”, with the founders Adam and Johannes

Overview

A huge amount of employment in East Africa exists in the informal sector.

People often working on an ad hoc basis with little record of what they do.

This means that it is difficult for workers to build a reputation, and for customers generate trust.

Adam and Johannes at Lynk see a great opportunity to use technology to bring value in this broad sector.

We talk about how the founding story of their services marketplace above a hardware store, the processes around matching customers and workers, and their vision for how data can bring benefits to whole sector.

It’s a super interesting episode, and I hope you enjoy

 

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Here are some of the key quotes:

“80% of workers in Kenya are in the informal sector”

We can add a huge amount of value in this sector where payslips and mapped career progression aren’t really a thing. Like LinkedIn for the Linked Out.

“TaskRabbit for Kenya”

Is how some people think about what it is that we offer.

“We used to live above a hardware store”

We would spend the day talking to these informal workers, and then at night time go and do coding to build around the product.

“700 interviewed, verified workers”

These are people who we have on Lynk and that customers can choose to hire. They are across 150 different categories. An informal worker is known as a “fundi”

“We’ve gone broad as the market is bigger”

It would have been easier to pick, say, one category/ industry to work in, however we didn’t feel that there were that many, say, plumbing requests in Nairobi each month. Our way is harder, but bigger.

“There are lots of processes needed”

The job isn’t an easy one, as it’s not just a classifieds site. We’re ensuring that customers and workers have a great experience.

“Most requests are reactive”

Customers are always coming to us and saying that they want X done. Our vision is to be able to suggest Y to them.

“Marketing is tough”

Word of mouth is really the main way that fundis get work, or they hang around by hardware stores to see if they can help. Adam and Johannes used to live above one of these hardware stores.

“We met at university”

Adam was finishing up at Google and Johannes had just finished his Masters. They were looking at doing an idea in Nairobi and a service marketplace seemed to be a big problem to solve.

“There are some behaviours we wish to change”

For example, timeliness. For a fundi it’s low on their priorities, however it’s something that customers really value. Teaching fundis about this is an important aspect to the business.

“… and others we will adapt to”

Like how fundis want to get paid. We identified a series of behaviours where we would adapt to the market, and others where we wanted things to change.

“We manually deal with each request”

Currently when a new request comes in we will clarify a few things with you and then contact the best three fundis who could do the job, and ask them for a detailed quote.

“A full service solution”

We don’t put up a big list of providers for customers to scroll through as we don’t think that’s the best user experience, and there are also issues with scheduling. Instead, a customer comes to Lynk and has a relatively high level of service.

“Payment flows through Lynk”

This gives protection for both customer and fundi. Customers can pay in a variety of ways, and we pay fundis through mobile money. Lynk’s commission is 10%.

“Most communication is through SMS”

Customers and fundis receive phone numbers when a job is booked and then communicate from then on. Depending on the complexity, Lynk may stay involved. Either way, fundis don’t all have the phone/ data package to want to communicate through an app.

“Being cut out is inevitable”

It will never be fully avoidable. Ensure that there are limited disincentives to using the platform, and just generally that there is value from the service. We’ve found that we’re being “cut in” more.

“The data is amazing”

We’re interested in providing a good service for a fair price. Going forward, we’ll be collecting lots of rich information which can be used in other areas.

Social Media Follows etc.

Facebook: Lynk Kenya

Twitter: @LynkKenya

Website: www.lynk.co.ke

Game-changing technology that allows those with low-income to purchase goods on credit

Overview

If you don’t have much money there are lots of things that you can’t buy.

This might sound simplistic, but in a country where a high proportion of the population have low disposable income it means that, as a manufacturer of products, there is a huge number of people who you can’t access.

Unless… you could just give it to them have them pay you back over time.

This is the opportunity that Angaza has seen, and they have developed a software platform to allow manufacturers to switch off devices if credit payments aren’t paid.

Doing so puts products in the hands of people who otherwise couldn’t afford it.

Lindsay is the Head of the Africa office and we discuss the history of the company, considerations for giving products on credit and applying their technology to a range of different products.

It’s also similar, but different, to BBOXX who featured on an early episode called “Solar Systems”. You might be interested in listening to that too.

 

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Here are some of the key quotes:

“Angaza is focused on Pay As You Go”

The challenge we’re looking to address is how to provide solar products on credit so that people don’t have to pay them completely upfront which blocks out a lot of the market.

“A software platform for PAYG products”

We began with a solar powered lamp and soon felt that the real value comes from being able to allow other manufacturers the ability to offer their products on credit. We partner with manufacturers and distributors.

“25,000 loans already”

This has come from working with 5 manufacturers and 30 distributors

“Everyone becomes a customer with PAYG”

If companies are only able to sell their products for cash they can only access a small percentage of the market. Angaza helps to grow the market.

“We can switch off products”

Using a broad range of technologies a device can be remotely switched off if, say, payments have not been made.

“Our partners pay us a licence fee”

In exchange for building PAYG products for manufacturers and distributors they pay a fee.

“The idea of credit has been around for a while”

Microfinance Institutions (MFIs) have been long been providing credit for an end-user. Traditionally once a loan has been given to an end user, the person is repaying the MFI and not the distributor.

“Tracking with pen and paper is tricky”

It’s laborious to can track of end users paying back for a product, especially as it will work regardless of whether the person stops paying back or not.

“Our innovation is switching off small devices”

A lot of the devices which can be turned off remotely are the larger solar home systems. Angaza has developed proprietory technology to bring this capability to a small solar lamp too.

“Angaza integrates with mobile money”

We can automatically switch off a product if a payment is behind based on whether payments have come in, such as with M-Pesa.

“Pay As You Go is a new space”

It’s far from obvious what is the best way to go about building a system for a PAYG product. We have a good idea, but haven’t yet written a bullet-proof playbook for manufacturers and distributors.

“It sometimes takes longer to payback”

Most people are paying back, but I have seen it taking longer than expected. This is for a number of reasons (head to 22:00).

“Is it Pay As You Go?”

Often it’s actually a fixed term loan and so that can cause some confusion. “Product loan” and “Lock out loan” are alternatives.

“We translate to local languages”

The founders speak English but we’ve designed the software and the platform to the language which agents are speaking.

“Considerations of connectivity”

The product offferings need to be related to the type of telco connectivity that exists in the environment of the end user.

“Angaza means enlighten”

In Swahili. Which was important for the founders in their starting market.

Social Media Follows etc.

Website: www.angaza.com

Facebook: Angaza Design

Twitter: Angaza Design

Why lack of working capital chokes the Kenyan food industry, and how Umati Capital solves this

Overview

Working capital in East Africa is tough to get your hands on.

Umati Capital are looking to help, using technology to give credit where banks won’t, typically through giving food producers an advance when a big order comes in.

Ivan and I talk about how the legal environment means issuing credit is tough, how they evaluate their clients, and their vision to professionalise the supply chain across the continent.

It’s similar to the SME Financing episode with Bakka from Patasente, so give that a listen too if you find this interested.

I also should note that the only room available in their co-working space was quite echo-y, and so the audio quality for this interview isn’t great.

A couple of answers get lost and so I’m sorry about that.

Nevertheless, I hope that doesn’t detract from what is a very interesting interview

 

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Here are some of the key quotes:

“My background is in banking”

I worked for Citibank across Africa. My co-founder has a background in Management Consulting.

“Banks require collateral to access capital”

This is a real blocker for small businesses looking to finance their operations. We’re using technology to open this up.

“We are working capital providers”

Our typical customers are food producers and we give them bridge financing when they receive an order.

“Supermarkets take 3 months to pay”

Imagine you are a cheese producer. You buy milk from farmers, turn it into cheese and sell it to a supermarket. The supermarket will accept it, but not give you the cash for 3 months. The farmers can’t wait that long and so the cheese producer has to find the money from somewhere.

“… and so a lot producers stay small”

If faced with the choice between small and regular payments or 10x sales through a supermarket, most will opt for the former as otherwise they’ll go out of business. They are thus bound to stay small.

“There’s a multiplier effect”

Not only does getting an advance smooth the operations, it also allows businesses to grow their business by constantly producing more of what they make.

“Cash flow based lending”

This is a concept in developed markets. If you can know with good probability that cash will come into a market then banks will lend based on that. That doesn’t happen with African banks, partly because there’s less trust that the courts will intervene.

“We make money by…”

Charging interest for the duration of the money being given. Typically this might be between 4-8% over 56 days.

“It might seem high”

Annualised you might think 24% annually seems expensive. However if access to this capital means you can grow your business by more than the interest you pay, it makes sense.

“There a multitude of checks that we make before releasing money”

When onboarding a customer we look into how many invoices have been unpaid previously due to quality issues etc. Then we look at the buyer and undertake a similar exercise.

“Buyers can find us pesky”

This is because we are holding them to account and essentially professionalising the industry. Our response is that professionalism yields a more stable supply chain.

“There are legitimate and illegitimate reasons for slow payment”

Sometimes the buyer is a middle man and so is waiting on their payment before passing it on. Sometimes though, buyers will choose to retain the capital within their business for other projects they are looking to finance.

“If the quality of the produce is bad…”

Then the responsibility sits with the producer. Umati Capital have a series of mechanisms whereby they reclaim the value in these instances.

“We’re going downstream”

The next phase of our growth is to work with our clients, and turn them into buyers. In the cheese example, it would mean providing finance for the milk producers.

“Technology is at the core of us scaling”

As we look to expand our offering to thousands of small-holder suppliers, we will use technology to keep things efficient and robust.

“Our money comes from…”

A variety of sources who are all looking for a short term return. These are institutional investors, high net worth individuals, and even crowdfunding..

“Clients assess us”

Small businesses may come to rely on financing from an organisation like Umati Capital.

“The market is huge”

Viewed as “SMEs who want credit” it’s massive. Agriculture concerns 25% of the economy and so Umati Capital has chosen here. Competitors have looked at other industries, but there’s place for plenty.

“Our vision is pan-African”

We see similar demand and demographics across the continent and so will be looking to expand our offering elsewhere.

Social Media Follows etc.

Get a Google News alert: (for Umati Capital)

Website: http://www.umaticapital.com/

Building “Spotify for Africa” with Martin Nielsen from Mdundo

Overview

One of the things I’ve found interesting is how proven international business models are being applied in East Africa.

Music streaming is one of these.

In years gone by people in Europe and the US would own CDs but now stream through services like Spotify, which pays royalties to its artists and makes music accessible to all.

Martin, who started Mdundo, is doing this in East Africa, though… it’s a little different.

We discuss the particulars of the African music market, the considerations in scaling their business and what they look for in hiring talent.

The room is slightly echo-y, so apologies in advance, however I hope this doesn’t detract from our very interesting conversation

 

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Here are some of the key quotes:

“Mdundo is a music service”

It started in 2012. From talking to stakeholders in the music industry it felt there was a big gap in the market.

“Our philosophy is similar to Spotify but…”

Operationally it’s different. We want people to access high quality music on their devices, and move away from illegal streaming sites.

“There are no record labels here”

It’s a very fragmented industry. We allow musicians to sign up and list their music onto the platform and then earn royalties when people play it.

“Licensing is a barrier”

Spotify aren’t operating here because it’s difficult for them to strike deals with disparate musicians and list local music on the service. You can’t go on Spotify and listen to a Kenyan artist and therefore local consumers won’t be satisfied with the service.

“There’s potential in live shows”

This is an area of the music industry which is really picking up. I think that record labels and signing deals is a difficult thing to go into.

“We’ve had some resistance from musicians”

And it’s basically down to trust. They are a one-man record label that are looking for ways to monetise their brand. Most money is from live shows and little from distribution. They don’t see how it will ever be a significant revenue stream.

“To be profitable we need to scale across Africa”

The key to our business is to be able to grow across many African countries and operate in many markets. This way we’ll get synergies.

“Growing the user base is straightforward”

It’s mostly being actively searched for. Musicians share on Facebook and so listeners find us quite easily.

“Filling the catalogue is key”

The most important song is the next one. If we aren’t able to provide a song for a listener then they’ll go off and use a pirated site and so we’ve probably lose them.

“Our listenership has changed”

It started off young, but now more and more it’s the older generation who are listening. Because of the demographics, in Kenya, above 35 is considered “old”

“Streaming is picking up fast”

‘Access to music’ started off meaning mp3 download. Now though we’re seeing more and more people streaming which is more in line with European markets, mainly because the cost of data has gone down.

“Mdundo means ‘beat/ rhythm’”

In Swahili. I wrote down a lot of words to do with music and then asked my friend to translate. “Mdundo” won.

“Content is key”

We need to ensure we have the Top 50 artists signed up before we launch. Also, we want young, hungry people to join the team.

“I’m surprised how much…”

… great quality music is being produced which no-one outside of Mdundo has been able to listen to yet.

“Taking the catalogue global”

Because we have a number of great musicians listed on our service we hope that it can be heard around the world.

Social Media Follows etc.

Android app: Mdundo

Website: www.mdundo.com

Listen to Martin’s fave: Just A Band

Selling cakes (and training cake makers), with Grace Murugi from Cakes.co.ke

Overview

If you consider businesses that bring people joy, for me at least, cake is one of them.

It’s also a product which is being bought by the emerging middle class especially in Kenya, with custom made ones being sold for up to $180.

Grace not only makes these cakes, but teaches others how to with her Cake Academy.

We discuss the customers who are buying cakes, how she taught her team to run the business when she went on maternity leave and innovations in the cake industry.

The interview took place outside her shop, and so there is a bit of background noise and not all of the answers are fully audible.

 

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Here are some of the key quotes:

“It started when I was at university”

We’ve been going for eight years and now have our own shop which also houses our cake academy.

“We train people to make their own cakes”

There seemed to be room for improvement in teaching people how to make cakes, and so after starting making my own, I now teach others.

“How creative can we get?”

We’re looking at introducing fruit and chocolate on the cakes as well as different shapes. We learn from our customers and from bakeries across the world.

“Instagram!”

Is where we get a lot inspiration.

“We do custom made cakes all the time”

Most people who come into the shop are buying a bespoke cake. These can cost from $30 up to $180.

“Our customers are the upper middle class”

They earn typically earn $20,000 – $30,000 per year. We then have the wedding cake industry too which is even more.

“We’re big on innovation”

Customers come to us to get the latest designs in cakes. We’re at the forefront of cake innovation in Kenya.

“Production is our biggest cost”

Buying things like icing sugar, paying wages and then utilities such as electricity and WiFi.

“We keep several suppliers”

When it comes to critical ingredients like cream, we need to keep accounts open with several in case one of them fails.

“I teach people recipes I’ve perfected”

I took a couple of classes back in 2005 and since then have been changing the recipes to make them better, such as adding an extra egg.

“We’re big on cupcakes”

These come from people who want to buy a present for the office to celebrate, or just as a walk in purchase.

“We reach our customers online”

This is via Facebook marketing, Instagram and we’re considering LinkedIn marketing too. There are also cake festivals and fairs that we attend too.

“People are seeing Cake Academy as a route to employment”

It’s inspirational for people to see success stories of people setting up their own businesses. 100s of people apply to join the course.

“I’ll be focusing on the Cake Academy”

Teaching other people is where my passion lies. We’re wanting to partner with other bakeries internationally.

“… but passion isn’t everything”

It’s important to learn business skills such as financial statements.

“I read business books and took classes”

These gave me some fundamental approaches to how to run the business which I’ve been applying such as allowing me more time strategise about the business. This all came once I was going on maternity leave.

“Franchise is the future”

The way that we’re looking to grow is by documenting everything that we do and then selling the rights to others to set up their own shops.

Social Media Follows etc.

Grace’s favourite book: The E Myth, Michael Gerber

Greatness Business Club: on Facebook

Facebook: Cakes.co.ke

Instagram: Cakes.co.ke

Website: www.cakes.co.ke

Pictures of cakes

Cakes.co.ke Cake 1
Cakes.co.ke Cake 2
Cakes.co.ke Cake 3

The CEO of iHub gives an overview of the East Africa tech ecosystem, with Kamal Bhattacharya

Overview

One of the first places I had earmarked for learning about business in Kenya was the iHub.

From reading up on business in East Africa it was always mentioned as the heart of the tech scene
not only in Kenya but also of the whole region.

In fact, when rumours leaked that I would be interviewing Kamal for this podcast, Facebook CEO Mark Zuckerberg made sure to drop in for a visit when he was in Africa in late July.

Kamal and I discuss the government’s role in fostering scalable businesses across East Africa, what makes a good pitch and the areas of growth that he sees in the Kenyan economy.

It’s a very interesting conversation that we have, and I hope you enjoy

 

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Here are some of the key quotes:

“iHub began six years ago”

The original goal was to create a physical space for people who were interested in technology to come together in Nairobi. We now have several components to the organisation.

“Every entrepreneur in Kenya has been through iHub”

We’re not taking credit for them all, but everyone will have passed by for a meeting or to be incubated. I recently inherited this global brand.

“How do we bring value to our community?”

The two things we’re looking at are improving the basic business hygiene of the organisation, and then how can we be better than what we are today.

“Kenya’s growth areas are agribusiness and FinTech”

And this is representative of the startups that come through iHub. This has been helped also by the [ubiquity of M-Pesa].

“I’m beginning to see overlap”

When I sit before pitches, I’m beginning to see repetition of ideas. This isn’t that bad though, as there’s enough space for many.

“I’ve seen a shift away from social enterprises”

The focus of pitches now seem to be more driven by making money which changes the style of the pitch.

“Leadership is an underappreciated quality”

It’s one of the things that I look for in entrepreneurs: not just the idea, but how they carry themselves.

“Considerations about scalability”

Compared to India, businesses will likely be harder to scale than in East Africa. There are different regulators to deal with across multiple countries.

“The blessing of no natural resources”

The fact that Kenya isn’t heavily endowed with natural resources means that we’ve had to develop a diversified economy.

“We want iHub to make businesses more investable”

Our goal is to prepare companies to be designed in such a way that investors are much more comfortable investing, and for this to be a real driver in the economic growth of Kenya.

“We haven’t seen big, big returns”

When it comes to diagnosing why there might not be as much investment occurring, the fact that there haven’t been huge success stories means it is likely that a risky investment will pay off.

“My biggest surprise is how strong the iHub brand is”

Internationally iHub is an incredibly recognisable and well-known entity. Lots of people are excited about what we’re doing. In the summer, Mark Zuckerberg came by during his day in East Africa.

Social Media Follows etc.

Website: http://ihub.co.ke/

Kamal’s blog: here

Facebook: https://www.facebook.com/iHubNairobi/

Twitter: @iHub

A history of surveying and market research in Kenya with Boniface Ngahu from SBO Research

Overview

Understanding the consumer is an important part of a lot of businesses.

Boniface is a director at SBO Research, a Market Research company that has been in business in Kenya since the mid-nineties.

After finding them on Google I went in for a chat and we spoke about his perspective of the market.

We discuss the change in political conditions that brought about the growth in market research industry, how drones are assisting researchers and whether an insurance policy will pay out if an eagle eats a chicken.

 

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Here are some of the key quotes:

“We started in 1993”

Our first job was doing surveying for Standard Chartered. We now serve over 50 clients per year.

“Understanding market gaps is the main value”

Clients come to us to get insights into the Kenyan market and whether their product/ service will fit.

“FMCG companies are common clients”

Companies with many employees are serving many customers and therefore want to employ services in order to best understand them.

“Government is our biggest customer”

They spend a lot on surveys to understand citizen satisfaction for the public services that are being offered. Often this is for commercial projects (like providing electricity) where there is private sector competition.

“We use mobiles to conduct surveys”

Agents talk to people, typically in their home, and record the responses that come from the survey.

“They chat on Whatsapp before”

When conducting focus groups, the client doing the research has the chance to communicate with everyone in a Whatsapp group to cover the basics beforehand.

“‘If an eagle eats my chicken, will I get paid?’”

Boni was doing a focus group for a new micro-insurance company and this was a pressing question one of the farmers had. Turns out that as eagles are wildlife and belongs to the government, the insurance company won’t pay out as its the government’s remit…

“Historically there would be only one brand”

The government had a regime where there was, say, only one type of cooking oil. As such, there’s no need for market research, because that is the market. Markets were liberalised in 1992, SBO Research was began the following year.

“Our clients are international”

But our insights come from Africa. Typically a multi-national corporation looking to introduce a new product line.

“Insights from inventory”

We track stock levels for different shop owners, in doing so we are able to deduce the market share that different products have.

“Technology will be the game changer”

Competition is coming from non-typical sources, such as Facebook and other telcos. We’re also seeing drones being used to observe how consumers interact with a product.

“We’ll want to hire more researchers”

As the industry grows this is one of the skills that we will want to get into SBO Research as we grow. The skills are scarce though, so good researchers bounce around.

“Bottom of the Pyramid consumers need to be approached differently”

This is a paper that Boni wrote. The typical consumer thinks differently to the ‘elite’ customer.

“My cleaner tells me what to buy”

If you advertise to Boni what cleaning product to buy, I won’t know what it is. If the cleaning product is targeted to my cleaner however, then she will build loyalty and tell me what I need to buy. Cleaning product companies should therefore target the BOP customers rather than “elite” customers.

Social Media Follows etc.

Net Promoter Score

Understanding the African consumer paper

Website: www.sboresearch.co.ke

Other articles: from Business Daily

Glass half full: how Jibu’s innovative franchise provides clean, affordable water across East Africa

Overview

If you consider businesses that solve Tier A problems, safe drinking water is pretty much top of the list.

Across East Africa people are unable to drink from the tap, and so are left to either boil their own, or buy expensive water in a bottle.

Galen started Jibu to address the need, creating a franchise where local entrepreneurs could treat tap water at source and sell it in reusable bottles to people in their neighbourhood.

We discuss how the business started, the benefits and challenges that come from the franchise model, and Jibu’s vision to provide convenient safe drinking water for all.

 

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Here are some of the key quotes

“Jibu equips entrepreneurs to start their own water treatment businesses”

We finance them to provide safe drinking water to their community and also generate income for themselves

“We have worked across East Africa from the start”

Jibu have operations in Uganda, Rwanda and Kenya, and started in DR Congo. We went for three at once which worked as a good strategy for us – it meant we weren’t overpampering any particular business and didn’t lead to false confidence that we would succeed.

“They’re all different”

In Rwanda, customers go directly to the shops. Uganda are much more geared towards delivery and convenience. DR Congo was difficult to find partners.

Trust and infrastructure

Owing to the strong law environment there is much more trust in new products, the assumption is that if it’s on the market, it’s safe. In Kenya and Uganda however, there are more rip off products and so people are more weary and Jibu needs flashier marketing.

The end consumer is “the middle 70%”

The bottom 20% can’t afford Jibu water and the top 10% choose bottled water. Jibu has the middle of the market.

“We’re 5x cheaper than bottled water”

It opens up a massive market for the Average Joe.

“Each franchisee serves a 1km radius”

They know their community well and engage in direct marketing to increase sales. Jibu Corporate doesn’t market directly.

“To get started, they become a micro-franchisee”

This is a franchisee business selling directly to another business that does the final sales. Once a micro-franchisee has got good numbers, they can apply to become a franchisee. This is a way to know the person and test a new territory.

“Main resistance has been regulatory authorities”

Not so much in Rwanda and Kenya, but in Uganda, there is an incentive for the government to keep the existing water companies in business. It has therefore been slower than hoped for to get authorised etc. Consumer acceptance however has been high.

“Nowhere had safe tap water”

All across the region, the water quality was so poor that the only option other than bottled water was to boil it, which is expensive, fumey and takes time. It also doesn’t remove impurities.

“I came out of NGO work to do business”

I felt that setting up a business with a sustainable backbone was the key to making a difference in the region after spending time working in the Peace Corps.

“Jibu works eye to eye with entrepreneurs”

It was important for me to not patronise the people I was working with.

“We launched the first pilot in 2013”

We’re now opening a new franchise every week. Entrepreneurs are making money and their businesses are growing, led by the entrepreneurs who know the end consumer better than Jibu Corporate.

“In terms of infrastructure, Jibu is the stepping stone”

We work in environments where the infrastructure isn’t mature enough to have a centrally treated system for clean tap water. The problem is pipe contamination rather than with it being centrally treated.

“Ownership is the secret sauce to scalability and innovation”

The fact that Jibu franchisees own their business mean they are much more likely to find creative solutions to meet customer needs. This is less so if you set financial targets and other employer-employee incentives.

“People aspire to own their business”

Ownership is what people strive for, especially if it’s behind a profitable business. We have an oversupply of qualified entrepreneurs.

“We have a thorough onboarding process”

Beginning with being a micro-franchisee, background checks, and an upfront cost of ~$1000 which is mainly to demonstrate commitment and provide working capital. Break even typically comes within 4 months.

“17 year old girls are running their own business”

Our entrepreneurs have a wide variety of backgrounds. Most have had previous jobs or tried ventures before starting with Jibu. Our youngest is a 17 year old girl.

“The water is just for drinking”

They don’t use it for washing or cooking. The franchise processes the reusable bottles when people take it back each time.

“There are probably hundreds of other bottling companies”

We’re seeing some copy cat businesses, and lots of other companies doing water treatment. Our advantage comes in having lower operational/ transport costs because all of the treatment is done at the source of the franchisee and sales are direct.

“Face to face relationships are key”

Because entrepreneurs serve a small community, they have a deep relationship with their customers. This is a competitive advantage against other companies looking to enter the space.

“Our vision is beyond water”

We look to leverage this platform for not just water, but for other products too.

“Water technology has developed beyond business models”

There have been lots of advances in the treatment of water, but just not a business model the utilises it. The filtration process is very energy efficient.

“Our bottle design is patented”

The mould was made in China and the bottles are manufactured in Nairobi. The innovation comes in its multiple uses and not being compatible with other bottle treatment plants.

“Flavours in water are getting popular”

We’re seeing some consumers in Nairobi especially looking to add flavourings to the water. They’re mostly sugary and we haven’t found a naturally sweet cordial that is sweet enough for the African market.

“We’re looking how to franchise the mothership”

We have worked a lot on replicating the franchise model, now we are looking at what it would take to replicate Jibu Corporate in another region. That’s the future vision for the company.

“Jibu means the answer/ the solution”

It’s not just about water, it can be pronounced everywhere we operate and makes sense to people we speak to.

Social Media Follows

Website: www.jibuco.com
Twitter: @jibuco
Facebook: JibuCo