Technology entrepreneurs are developing artificial intelligence (AI)- powered tools designed to help businesses manage and reduce their legal spending, offering a potential alternative to traditional law firms.

Founded in 2020 and backed by $2.6 million in funding, Hence Technologies, a Rwanda-UK startup, offers a web-based platform to assist businesses in finding suitable legal counsel.

Currently lacking a mobile app, Hence connects users with lawyers through its website. After booking an initial consultation, users have the opportunity to discuss their specific needs and ask questions about the platform.

The company aims to differentiate itself by using data and algorithms to match businesses with the most appropriate lawyers based on the nature of their legal issues, their location, and cost considerations. This differs from "marketplace solutions" that prioritize facilitating transactions, according to co-founder Steve Heitkamp.

We "built a product that is helping people find the right lawyers; a starting place for their needs," Heitkamp stated in 2022.

With operations spanning three continents and headquartered in Kigali, Rwanda, Hence plans to leverage local tech talent to expand its services and target larger companies globally.

Adoni Conrad Quenum

Driven by a mission to improve healthcare accessibility, Senegalese entrepreneur Boubacar Sagna has developed an on-demand platform connecting patients with medical professionals.

Afya Care is an e-health solution developed by a Senegalese startup. Founded in 2014 by Boubacar Sagna, the startup, previously known as Yenni, aims to provide seamless access to healthcare services and medicines through its innovative platform. Users can access healthcare in hospitals and health centers, as well as purchase medicines in pharmacies, by making payments from a digital wallet. The platform, which boasts a mobile app accessible on iOS and Android, allows users to create accounts and access various services, including the ability to pay for consultations, medication, or health insurance.

One of the key features of Afya Care is its digital wallet, which is topped up by mobile money, specifically Orange Money and Wave. Once funds are in the Afya Care account, they can only be used for the services offered by the startup, such as paying for one's care, or that of a third party, or participating in crowdfunding campaigns to help third parties. The startup claims to have a network of over a thousand doctors and pharmacists, ensuring that its users have access to a wide range of healthcare professionals.

In addition to its core services, Afya Care allows users to donate health credits to third parties, with the assurance that the credits will be used for healthcare purposes and that the treatment received must come from a certified network, thus preventing the use of counterfeit medicines. The startup has ambitious plans to expand to other markets in the West African sub-region, with Guinea, Mali, and Côte d'Ivoire being among the potential destinations. Since its launch, the Android version of the mobile application has been downloaded more than a hundred times, according to Play Store data.

Adoni Conrad Quenum

In Africa, the fintech landscape is dominated by payment and money transfer startups. But there are a few outliers. One such company is Affacto, a platform that specializes in financing the cash flow of SMEs involved in import-export between Africa and Europe. Affacto was founded by Aïssata Naba Coulibaly, a Malian entrepreneur who spoke with We Are Tech Africa about this niche market and what makes her company unique.

We Are Tech: When we talk about the trade supply chain in Africa, who are we talking about exactly?

Aïssata Naba Coulibaly: The trade supply chain in Africa generally encompasses various sectors of activity such as production, processing, distribution, retail, etc. The specific links involved can vary depending on the sector.

However, in general, the supply chain includes key sectors from the manufacturing of products to their availability on the market for consumers. Each link within these sectors can therefore represent an actor in the African trade supply chain.

WAT: Which of those specific needs does Affacto address?

ANC: Affacto provides factoring services. Factoring is a financing solution that enables businesses to obtain quick cash advances by selling their unpaid invoices. This debt collection is managed by a factor, a specialized credit institution.

In addition to playing the important role of improving cash flow in a supply chain where costs can occur at different stages, factoring also helps to reduce financial risks. By assigning receivables to a factoring company, the company can reduce the risks associated with late payments or bad debts, thus providing some financial protection. Financial cycles are also accelerated. Factoring can help accelerate financial cycles by providing immediate liquidity, allowing businesses to pay their suppliers faster and maintain smooth operations in the supply chain. Optimization of supplier relationships is not to be forgotten.

By having liquidity more quickly, companies can negotiate more advantageous payment terms with their suppliers, thus strengthening relationships within the supply chain. It should be noted that factoring offers a certain financial flexibility by allowing companies to raise funds according to their needs, which can be crucial in a dynamic business environment. Overall, factoring plays a key role in providing financial solutions that contribute to the efficiency and stability of the supply chain.

WAT: The United Nations Conference on Trade and Development (UNCTAD) notes the emergence of digital platforms that facilitate access to finance for supply chain actors. In a context where traditional commercial banks are still at the heart of credit in Africa, what selling points do you put forward to meet such success? 

ANC: We have, first and foremost, increased accessibility. Digital platforms can broaden access to finance by using innovative technologies, thus reaching a wider range of supply chain actors, including small and medium-sized enterprises that may face difficulties in obtaining credit from traditional banks. Our processes are simplified.

By leveraging technological solutions, digital platforms can simplify the application, evaluation, and disbursement processes for funds, thus accelerating the financing cycle. This can be particularly attractive for businesses seeking quick disbursements.

It is worth noting that digital platforms can use algorithms and advanced data analytics to assess credit risk more accurately, offering a more flexible and individualized approach compared to traditional bank credit models.

Digital platforms can also contribute to financial inclusion by targeting segments of the population that are generally underrepresented in the traditional financial system, thus promoting broader participation of supply chain actors.

In summary, digital platforms can differentiate themselves from traditional banks by leveraging technology to improve accessibility, simplify processes, use advanced data analytics, and promote financial inclusion, thereby contributing to meeting the diverse needs of supply chain actors in Africa.

WAT: Micro and small businesses (MSMEs) often lack the financial traceability banks require to qualify for credit. How do you ensure that your financial support to MSMEs will be recovered since they form a sizeable part of your clientele? 

ANC: To address the challenges of financing micro, small, and medium-sized enterprises (MSMEs), financial service providers, including those specializing in factoring, have developed a variety of mechanisms to mitigate the risks associated with their limited financial traceability.

One approach is cash flow analysis. Financial service providers can conduct in-depth analyses of MSME cash flows to assess their ability to repay financing. This approach can be less reliant on traditional credit history.

The use of alternative data is another solution. Factoring platforms can leverage alternative data sources, such as transaction data, payment history, or invoice information, to assess the creditworthiness of MSMEs, in addition to or as a substitute for traditional credit criteria.

More flexible assessment models that consider non-traditional indicators can also be adopted to adapt to the realities of MSMEs that may not have complete financial traceability.

Factoring companies can implement robust guarantee and collection mechanisms to minimize risks. This may include personal guarantees, receivables assignments, or other collateral forms.

By implementing these approaches, financial service providers can help mitigate the risks associated with MSME financing, thereby promoting financial inclusion and supporting small-scale supply chain actors.

WAT: The UNCTAD report "The Potential of Africa to Capture Technology-Intensive Global Supply Chains" indicates that Africa only contributed 1.9% to the $2.2 trillion global supply chain finance in 2022. What are the obstacles hindering the continent's progress?

ANC: The financing of trade supply chains in Africa is hampered by several factors, including the lack of adequate financial infrastructure, complex legal and regulatory frameworks, as well as challenges related to trust and transparency in commercial transactions. Additionally, issues related to financial market maturity and financial literacy also play a role in this context.

WAT: Given the challenges that hinder access to finance for trade supply chain actors in Africa, what innovative solutions can be implemented to address these challenges and transform the financing landscape?

ANC: It is essential to develop a collaborative vision at all levels to support supply chain financing at all stages. At Affacto, we have launched the Affacto Flow service, which allows us to finance suppliers, clients, freight forwarders, and logistics companies on the third-party holding side. We have decided to bring all stakeholders together in the same place to enable them to collaborate at all levels of the chain.

WAT: With the AfCFTA, a market of 1.4 billion people in Africa, what opportunities could unlock access to finance for trade supply chain actors?

ANC: The effectiveness of trade supply chain financing in the context of the African Continental Free Trade Area (AfCFTA), which brings together 54 African countries, can contribute to market expansion for businesses.

With the continental market, businesses will have access to more orders, which will support their production, distribution, and marketing activities. Logistics and transportation companies will be able to capitalize on financing to develop and improve their infrastructure across the continent, facilitating the efficient movement of goods.

SMEs make up a significant portion of the supply chain actors in Africa. The targeted financing they could benefit from would help strengthen their production capacity, market access, and compliance with international standards. The funds could even be used to develop and adopt technological solutions to improve their supply chain management, increase their visibility, and facilitate their transactions within the AfCFTA.

It is important to note that financing could also be used to set up training programs to strengthen the skills of supply chain actors, particularly in regulatory compliance and best business practices.

In summary, in the era of the AfCFTA, access to finance for SMEs can provide trade supply chain actors in Africa with the ability to catalyze their efficiency, competitiveness, and growth. This will promote further economic integration on the continent.

WAT: Currently, Affacto operates in Mali, Senegal, Côte d’Ivoire and Togo. What are its short-term plans for expansion?

ANC: We aim to establish strategic partnerships with banks, debt funds, other fintech companies, and all other supply chain actors.

We are currently raising funds and plan to expand our services to other West African countries and explore the two Congos. We are in discussions with a country in the sub-region to set up an innovative mechanism that will allow SMEs that win public contracts to finance their principals through the financial market.

Interview by Muriel Edjo 

The bespoke solution was designed by a Beninese entrepreneur in a bid to enhance access to fresh produce. 

In 2020, Beninese startup DigitAll Farmer introduced Aliments Bénin, an e-commerce platform that aims to enhance fresh product accessibility. The platform bridges the gap between consumers and producers, fostering a vibrant marketplace for agricultural goods.  

Founded by Novalie Houngbédji, Aliments Bénin operates as a web-based platform, eliminating the need for a dedicated mobile application. Users access the platform via their browsers, where they register by providing their email address and creating a secure password. At this juncture, users make a pivotal choice, choosing the “seller” status for those marketing their products or the “customer” status for those seeking to make purchases.

Aliments Bénin boasts an extensive array of offerings, ranging from locally-produced beverages to butchered meats, grocery staples, fresh fruits, vegetables, cereals, tubers, and seafood. By connecting producers directly with consumers, the platform has catalyzed awareness and amplified sales for nearly a hundred agricultural entrepreneurs. Households, restaurants, and pastry shops alike have embraced the convenience of ordering quality agri-food products at equitable prices.

“We were able to help nearly 100 producers increase the awareness of their products and increase their sales by more than 7,000,000 FCFA [11,500 USD] in 2021. Several households, restaurants, bakeries, and others were able to order and have quality agri-food products delivered to them at fair prices,” Novalie said in 2022. 

To ensure swift fulfillment, Aliments Bénin also operates a delivery service. Once orders are placed, the platform takes charge, dispatching goods to customers across multiple communes within the country. The solution has earned DigitAll Farmer several recognitions, including the Encouragement Award (XOF5 million) at the 2021 Tremplin Startup UEMOA competition. Additionally, in November 2022, the platform secured third place in the inaugural Moov Africa Startup Challenge, earning an XOF1 million check and in-kind prize worth XOF540,000.

Adoni Conrad Quenum