africa Agritech retail Tanzania Tech

Tanzania launches eCommerce solution for East African businesses

The firm’s intention of improving retailing authentic African products, improving the Tanzanian industrialization agenda and enhancing local businesses content as well as international markets reach advised this move.

Dubbed MDUKA the online platform that is being ushered into East Africans businesses, has a clear intent of advertising a client’s products and gaining access to international markets.

For quite some time, Tanzanian products have been seeking sustainable international markets, ranging from local artifacts, woven cloths, cultural attires and accessories, and agro-products. Thus, Twigalpha brought forth a remarkable digital solution for local retailers and other player in the region.

MDUKA comes at the age which technological innovation presents an opportunity to emerging markets and yet a threat at the same, to dormant producers and markets operating on conventional philosophies.

Tanzania’s agriculture and manufacturing sector have undoubtedly contributed significantly exports receipts to Tanzania’s economy. Available data from Bank of Tanzania (BoT), indicate an $8.59 billion in exports was gained until July 2019.

Manufactured goods, agro-products, fish products, and other-minerals excluding gold, hides, and skins, cereals, and cocoa contributed greatly on goods exported within 2018 and 2019 first quarter differently. This means MDUKA is at a significant foundation to levitate respective industries and the local economy.

In the same context, Tanzania is steadily turning into adopting modern tech, via tech-gadgets penetration into rural areas, proved by mobile network operator’s services reach and mobile phones strategic marketing skills, whereas brands such as Techno have reached wider telecom consumers.

Whereby, Tanzania Communication Regulatory Authority (TCRA) statistics show more than 43 million active phone subscribers, while internet users rose to over 23 million (while 82 per cent go online via phones)from 9 million in 2013.

The industrialization agenda, as rooted by the Tanzanian President John Magufuli, has sparked other avenues motivation, hence Twigalpha’s Chief Commercial Officer, Mr. Mohammed Kamonja commented to a local media outlet, that the current industrialization drive is what their current operation is all about.

Kamonja revealed the knowledge gap which tends to be an enormous blockage between their business and lucrative revenues streams to their accounts and government at large.

In return, agricultural products produced by more than 60 per cent of the workforce and rural population hold least export receipts compared to complex industries such as mining and quarrying, which accounts for far less demand in the region compared to food-stuff demanded by rather most nations neighboring Tanzania and other international markets.

In 2013 World Bank published a press release indicating that; half of African consumed rice is imported, while simultaneously competing with Brazil, Indonesia, and Thailand who export more food-stuff than entire sub-Saharan Africa combined.

“SME in emerging markets with millions of dollars of annual export potential provide a significant business chance to stimulate the local economy by including them in the country’s export value chain. Presently, only large exporters have ready access to international markets, while small international exports have access to African markets,” Kamonja commented.

Further, MDUKA could be rather strong in creating a robust foundation impacting local capacities as well as increasing local content with industrial performance increased by 20 per cent on average and a powerful international exports increase, as highlighted by Kamonja.

“Our motto is getting what you love from Africa’s heart right at your doorstep. Our mission is to make an easy and reliable system for entrepreneurs to sell their products to a broader international market,” Kamonja adds.

However, Twigalpha is also partnering with Tanzania Industrial Research and Development organization (TIRDO) in enhancing entrepreneurs. On that note, financing will be facilitated by Barclays bank and DHL who will be covering logistical affairs to ensure that the respective products reach the intended international markets.

Twigalpha has managed to integrate MDUKA with a couple of major industrial-complex players in Tanzania. MDUKA serves Chai Bora a well-known tea-brand in Tanzania, spice companies in Zanzibar, beads manufacturers, batik cloths and organic products.

Despite the respective sectors gaining steady prospects, mentioning the information and communications sectors which scored 2.7 per cent contribution to GDP in the first quarter, while 5.1 per cent on trade and repair, 5.6 per cent on manufacturing and agriculture contributing 26.2 per cent, still Tanzanian products miss-slots within international markets.

Further, in Kamonja’s context, MDUKA stands on a profitable chance to emerge as a competitive player in East Africa, as it has identified a suitable channel to disseminate products via online means, which is definitely un-denied, particularly in current times, where digitization of services impacts greatly business and reaches wider audience.

It is a matter of time, for other innovative companies apart from Twigalpha to venture into advanced retailing solutions, which will eventually stir up the competition adding value across the retailing value chain.

Source: The Exchange

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