In the African informal sector, which is a key component of most Sub-Saharan African economies (according to the IMF), traders face numerous challenges daily. In Kenya, some tech entrepreneurs have set up a solution to address the challenges for cosmetics traders.

Vutia is a virtual marketplace developed by a Kenyan startup. It allows cosmetics stores to source beauty and skincare products by democratizing access to quality cosmetics and beauty products in Africa through its distribution platform. "Positioned between the brand and the business customer, we are focused on the distribution of multiple categories of cosmetic and beauty products to informal traders, beauty salons, SPAs, and beauty shops. We source our products directly from manufacturers at the top of the value chain and deliver to vendors at competitive prices," the platform explains.

Via its website or by sending SMS and Whatsapp messages, users can order cosmetics in bulk. Before they can order the products via the website, they need to create an account.

Products purchased on the marketplace are delivered for free (for Vutia clients) the following day. The platform also offers users the possibility to become cosmetics sellers or Vutia agents. As sellers or agents, they can earn money by promoting and delivering beauty and personal care products in their communities or neighborhoods.

In February 2023, the platform was selected along with four other startups by the Baobab Network's 2023 acceleration program. The selection entitles it to $50,000 support and the opportunity to be presented to potential investors during demo days.

Adoni Conrad Quenum

In Africa, traditional financial institutions are usually unable to meet the needs of part of the population. This creates a great funding gap that tech entrepreneurs are trying to bridge with innovative solutions.

FairMoney is a fintech solution developed by a Nigerian startup, which aims to "build the leading mobile bank for emerging markets."  It allows its users access to instant collateral-free loans.

"Banks stayed apart from this untapped market because of the lack of digital tech expertise to serve people with limited revenues in remote areas. […] We leverage digital technologies to offer financial services to people, even for very small transactions and loans, in remote areas. [...] We hit a US$93 million disbursement volume in 2020, despite COVID-19 which impacted lending businesses," said Laurin Hainy, CEO of FairMoney.

Through its Android app, users can create a FairMoney account by filling the required form. They specifically need the telephone number linked to their Bank Verification Numbers.

Once they create the account, they can link a bank account or card to that account and start receiving loans. The startup requires no documentation but, it is worth mentioning that thanks to the BVN, it can identify its users. In its FAQs, the startup explains that it "collects and processes securely data from your phone (SMS, device details, location, phonebook) to make a lending decision. This data is necessary for us to approve your loan in real-time without asking you for cumbersome paperwork." Since the launch of its instant loan solution, the startup has attracted thousands of users. Playstore stats show the Android app has been downloaded more than 10 million times.

Adoni Conrad Quenum

On January 5, 2023, Algerian team SevenG won the second prize in the finals of the global competition organized by Huawei. It won the prize thanks to its AI tool that automates farming. At a time when food insecurity is hanging over millions of people all over the world, the seven students who launched the tool believe that it is an efficient and less restrictive solution to make farming more profitable. In an interview with We Are Tech, they present their ambitious project.

What inspired you to launch FarmAI?

We were inspired by the food insecurity affecting Algeria and several countries in the world. We decided to develop an IT system, combined with other tools, which would help create a smart farm, monitor crops, identify pests, build a smart irrigation system, and monitor weather changes. The main idea is to quickly detect and efficiently respond to diseases affecting farms.

How does your solution work?

The early wheat rust disease detection system combines artificial intelligence and drones to monitor wheat fields. The drone flies around the field every 4 days, capturing images of the plants with its camera. This data is then transferred to a deep neural network that performs image classification and analysis to identify possible infections. If a set of data points at a high infection probability, the system will alert the farmer through a mobile app and backend system, allowing the farmer to take the necessary actions to preserve crops and avoid financial losses.  

We already have audiences with the Ministries of Economy and Agriculture. They will help us either partner with local drone manufacturers or purchase our drones. In both cases, the great support offered by the President of the Republic to agritech and startups is a real opportunity.  

Why did you choose artificial intelligence to power your solution?

We didn't choose to use artificial intelligence (AI) because it's a trendy technology or something like that, but our problem requires a lot of effort, time, and money. So, as we all know, AI improves the speed, accuracy, and efficiency of human actions. Those are the reasons we chose AI for our FarmAI project. At this stage, we are using AI in two key functions which are computer vision and the automation of drones that monitor farms, process images and classify them.

Given the potential of artificial intelligence, why limit the solution to the identification of wheat rust only?

At the beginning of the Tech4good competition, our idea was to develop a system that would help reduce losses in farms and ensure food security in our country. But, as we were time-limited and our project was focused on a specific feature, which is the detection of rust disease, even before the competition, our mentors advised us to pursue this feature. Nevertheless, we plan to add other features, including pest detection and the detection of other diseases. We plan to deploy our solution in more farms.

Our focus on wheat rust stems from the position of wheat in the Algerian economy. Algerians consume more than 100 kilograms of wheat yearly. The country produces and exports the commodity, which is a great source of income for households and the whole country. Our solution helps address food and economic issues not only in Algeria but also in the whole world.

What are SevenG's plans for FarmAi after Tech4Good?

The next step is to test our solution. We have already spoken with farmers and most of them are interested. The solution has been developed in such a way that it is easy to use even for non -tech-savvy individuals. Since most farmers are already using smartphones, they only have to check the reports since everything that has to do with drone calibration, launch, and data analysis is automated.

Once we are done with the testing phase, we will offer free trials to farmers to convince them of the usefulness of our solution. Then, we will seek investors to quickly develop our business and get more clients.

The African e-commerce sector is growing rapidly. Like the fintech startup, it has attracted a growing number of investments, allowing entrepreneurs to develop local solutions.

Homzmart is an online shopping platform developed by an Egyptian startup to allow users to purchase home goods such as furniture.

On its mobile (Android and iOS) and web platforms, the solution lists the various items including furniture and kitchen appliances, and their "interesting prices." Its AI algorithm also showcases items that can interest visitors who need to create an account to buy the products they want.

Homzmart has established itself in its home country, increasing its sales 30-fold between 2020 and 2021. "We have seized the opportunity to digitize shopping for furniture and home goods. The market opportunity in the region is huge, and our business model is perfectly set up for it. Homzmart provides an easy one-stop-shop platform to transform the experience for furniture sellers and consumers," said Mahmoud Ibrahim, Homzmart co-founder, and CEO, in 2021.

Its Android app has been downloaded more than 500,000 times. It plans to grow its national presence and expand in the Middle East after its launch in Saudi Arabia. It has raised more than US$40 million to fulfill that ambition.

Adoni Conrad Quenum