Thumeza Q2 2023 Update
Thumeza Newsletter Q2 2023
We are back with the latest edition of our quarterly newsletter where we bring you updates from our company, industry snapshots and other news to keep you informed and help you make better decisions. Here’s what’s been happening in Q2;
Thumeza selected as a SA IBP Fintech Challenge Finalist
Pictured: The Top 10 startups that qualified in the SA IBP Fintech Challenge [can you spot Team Thumeza?]
We are thrilled to share that Thumeza was recently selected as one of the Top 10 finalists of the 2023 Southern Africa Innovation Bridge Portal (SA IBP) Fintech Challenge held in Johannesburg, South Africa!
The SA IBP is an initiative of the South African Department of Science and Innovation supported by the World Bank Group and the Department of Small Business Development. Its mission is to support the growth of entrepreneurs and innovators in Southern Africa who are solving some of the region’s greatest challenges.
The Fintech Challenge recognizes and supports innovative Fintechs that are bridging the gap in financial access in the region. The Award comes with a cash prize, investment-ready support, matchmaking with investors, mentorship by industry experts and access to an incubation support platform.
What's up with the AfCFTA?
Since our last update so much seems to have happened that perhaps we should change the title of our updates to “Keeping up with the AfCFTA!” Here are some of the highlights of Q2.
In April 2023, the AfCFTA held the inaugural business forum in Cape Town, South Africa, running under the theme “Accelerating the AfCFTA” .The core discussions bordered around how to include the private sector in the AfCFTA's bold agenda of accelerating the implementation of the AfCFTA.
Our CEO, Gugulethu Siso, was a panellist amongst other luminaries such as the CEO of PAPPS, the CEO of Cassava Technologies, the Group Head of Payments & Cash Management at Ecobank South Africa, and the Vice President of Africa and Asia at SBA Communications in discussing "Expanding Digital Trade and interoperable payments systems in the AfCFTA". Similar to the trading environment, the payment infrastructure is currently fragmented and businesses have to adhere to different standards across different countries which is quite costly. We are especially excited about the Pan African Payment and Settlement System (PAPSS) which aims to domesticate African payments which are currently costing businesses about USD$5 billion per year. The forum essentially opened up dialogue and emphasized the need for urgent action to address some of these challenges and encourage the uptake of solutions like the PAPSS.
In June, the AfCFTA Secretariat signed a historic agreement with the United Bank for Africa (UBA) to finance Small and Medium Enterprises in four sectors i.e. Automotive, Agro-Processing, Transport and Transport, and Pharmaceuticals. Through the agreement, UBA will invest USD$6 Billion within three years i.e. 2023-2025, to capacitate SMEs who are key players in the African economy and accelerate the implementation of the AfCFTA as per the African Union's objective.
In August, we are looking forward to the inaugural AfCFTA Youth Symposium to be held on 21-23rd of August 2023 in Lusaka, Zambia under the theme "Igniting the Future for Youth in Trade". The symposium aims to involve and empower Africa’s greatest asset; the youth. Africa is the most youthful continent, with over 60% of the population under the age of 25 years.
Sustainable logistics: the need of the hour
The logistics sector is a critical component of the supply chain but also contributes significantly to the pollution of our world. Consumers are more environmentally aware and are aligning themselves with suppliers that share the same awareness. Governments and private entities across the globe are also putting in place regulations and policies to ensure the adoption of sustainable practices. Therefore, it is crucial for logistics operators to be more responsible and proactive in protecting the environment and reducing carbon emissions. Research has shown that there is a positive correlation between sustainable development and long-term economic growth.
Here are some of the steps companies can take to integrate sustainability into their operations.
- Adoption of alternative vehicles and fuels: you can opt for more environmentally friendly vehicles and fuels that have less carbon emissions e.g. electric vehicles or solar systems.
- Choose sustainable suppliers: work with suppliers that are also environmentally aware and will not compromise your sustainable practices.
- Use reusable & recyclable packaging materials: Consider materials that can be used multiple times e.g. wooden pallets & plastic bags. The latter can also be used by the consumer after delivery.
- Digitize paperwork: Utilize technology to capture information digitally e.g. trip information like fuel, and distance can be tracked and recorded online therefore significantly reducing the amount of paper that can be used.
- Avoid empty return trips: Driving an empty truck will have a similar environmental impact as a loaded truck, therefore avoiding empty trips will lessen the burden on the environment.
Can't get credit for your logistics business? Here’s what to do
Credit is key in any business’ financial strategy. It can keep you operational while you wait to get paid- a necessity among logistics operators whose payment timelines from clients range from 30-60 days and oftentimes more. We are aware that finding affordable credit can be daunting. These are some simple steps to take, to assist you prepare to apply for credit. NB: These steps are not exhaustive.
- Organize your financial and legal documents as they will be needed to verify you and your business.
- Have a business plan that will also show how you intend to use the loan, the projected financial growth and the repayment plan.
- Be prepared to demonstrate how you will pay back the loan. Lenders always need the assurance that you will be able to repay the loan before they approve your request.
- Be honest about your financial situation, do not cover up or forge your credit/financial history, ti will be uncovered anyway.
- Boost your business prior to applying for the loan Acquire basic financial knowledge i.e. to enable you to vet lenders and understand their requirements.
Industry Snapshot series
In this Q2 edition of the Industry Snapshot Series, we discussed embedded financing which has been a key component in tech startup's strategy playback books. What is it, how can one leverage it as well as its pitfalls are discussed in our post here.
Get in touch with us!
Follow us on our social media platforms to keep your finger on the industry pulse. As we continue providing financing, we welcome collaboration with additional partners. You can reach us via email to start the discussion.