Estimated reading time: 8 minutes

Emmanuel Lahai is a 21 year old entrepreneur from Sierra Leone. After a year of studying civil engineering in Sierra Leone, Lahai won a scholarship to continue his degree in China where he founded Send Me, a business to help Sierra Leoneans buy Chinese-made products online. Now, Send Me is shifting its focus towards facilitating e-commerce within Africa, with the long term goal of connecting small businesses throughout the continent with consumers from all over the world. 

Empower Africa’s Editor Shira Petrack sat down with Emmanuel to hear about his entrepreneurship journey and insights. Below is an edited transcript of their conversation. 

What inspired you to start your own business? 

While studying in China, I knew that things were tough with my family back home. I knew that I wanted to start my own company to raise income and to help reduce unemployment in Sierra Leone. I saw all these cheap products available online in China that people in Sierra Leone would want to buy, but the logistics were very difficult. I thought that in my own small way, I could solve the problem. 

How did you know what do do? 

I didn’t study business in university, but I have some innate capacity for business. I have also read a lot of business books and blogs. I was very inspired by Robert Kiyosaki’s book Rich Dad Poor Dad, and Benjamin Graham’s The Intelligent Investor, and I also follow blogs and business news.  

How does Send Me work? 

We use social media to communicate with our customers. Very few people here use Instagram or Snapchat, some people use Facebook, and most people use WhatsApp, so we primarily advertise the products in WhatsApp groups. Customers can also send us a picture of a product that they’re looking for, or they can describe it to us and we will send them a sample picture of a product we can deliver.

At first it was difficult to find customers, so I learned how to advertise through WhatsApp. I realized, for example, that pictures are more effective than either videos or long text messages, because it only takes customers 1-2 seconds to look at a picture. Most of our employees go through a one week training course to learn to market on WhatsApp according to the best practices that we have identified. Since most groups are personal groups and not principally for advertisement, we need to be very strategic in terms of the timing, quantity, and content of our advertisements so that we don’t get removed from the groups. 

Some products are locally sourced, but we mostly work with third-party shipping companies in China to ship products to Africa. Once the product arrives, we deliver it to the end customer. In the long term, we would like to move away from China and rely primarily on African suppliers. 

What gave you the idea for Send Me? 

Like I said, at first the goal was just to create a source of income and reduce unemployment in my community. Once I started, I quickly realized that in order to become truly sustainable I would need a bigger goal. I looked at big corporations like Apple, Google, and Amazon, and I noticed that they all have a big goal, so I decided to increase our scope, enlarge our vision, and focus on helping small businesses by establishing a proper logistics system for Africa. 

Right now, very few African consumers are buying products that were made in other African countries because it’s very difficult to move products from one country in Africa to another, and very few international consumers purchase African made products. Our goal is to create a sustainable logistics infrastructure that will allow small businesses to enter international markets in the US, China, and Europe. 

How has Covid affected your business? 

Most of our suppliers were in China, so we were mainly affected in February when China was completely closed. Factories were not operating and airplanes were not flying, so we had to completely change our supply chain. Even now that China has opened again, we are still struggling to receive our international shipments on time. Flights can be delayed or cancelled at any time and countries can suddenly go into lockdown, so we still cannot rely on our international suppliers. 

As a result, we shifted our strategy from sourcing from China alone to sourcing from local African suppliers. We looked at countries near-by, like Guinea and Togo, and tried to get products from there. We also began marketing and selling products that were locally made in Sierra Leone.

We have also stopped taking pre-orders. Before Covid, customers could place an order with us and we would accept the order before looking for that product in China. Now, we are trying to source most of our products locally, and we only accept orders for international products once the product has already arrived in the country. Once we have the funding, we would like to build and stock a local storehouse with a large supply of products to sell to customers in Sierra Leone and other nearby countries. We would also like to continue to build our African supply chain and work with local businesses to reach more customers. 

What do you think of the African Continental Free Trade Agreement? 

I think the African Continental Free Trade Agreement is a very important stepping stone towards creating a more integrated African market. In fact, the AfCFTA, along with Covid, was an important factor in our decision to expand our strategy and work on building an African e-commerce platform. The AfCFTA will make it easier to move products between African countries in terms of the regulation, but we still need the logistical infrastructure to support the trading, and that’s where we want to come in. If the infrastructure is not there, then the AfCFTA will be useless. 

It is very hard to move products between African countries. In fact, it is often easier to send products from Ghana to Europe or the United States than to send the product from Ghana to Sierra Leone. And some services, such as one-day shipping, are currently just not possible in Africa. Our long term goal is to create the infrastructure and provide cheap logistical support for small African businesses to export their products to the international market, and to create a proper e-commerce platform in Africa. 

What are some of the challenges of developing an African e-commerce platform? 

Many homes in Africa don’t have specific addresses, which makes it challenging to deliver to the end consumer. Another challenge is the relative lack of shipping companies and the low frequency of international flights coming in, especially to countries like Sierra Leone. 

Production capacity is also much smaller in Africa. A small Chinese company can produce 100 or 1000 bags a day, but a similar African company might only be able to produce maybe ten bags a day, and then it needs to sell those bags before producing another ten.

But just because a problem is difficult doesn’t mean it can’t be solved. The more difficult the problem, the greater the reward. That’s what entrepreneurs are for – for solving problems. I believe that solving the problems with shipping can help reduce difficulties in other areas. Bringing African customers more affordable products at faster rates can help other businesses and services providers on the African continent. This is what will help Africa move forward. 

Do you have any advice to give to young people who are thinking about starting a business? 

The advice I would give is find a problem to solve and look at the bigger picture. You can easily get a job, work at a firm, and spend thirty to forty years there, maybe even the rest of your life, and only impact the friends and family you have around you. But you can also push forward and actually build a company, build an organization, build a movement, and then impact thousands if not millions of people and solve problems. 

The amenities that we’re enjoying now, the internet that we’re enjoying, the smartphone that we’re using – it’s all because people pushed and continued pushing a step forward into innovation. So if we’re to drive humanity forward, if we’re to drive society forward, we need to think of how we will build a better life for our country mates, and a better life for our family and our children. 

I think more people should be starting companies. It’s not easy to start a company, especially in Africa – if you look at the World Bank Ease of Doing Business Rankings, most countries in Africa are way down the list. 

However, we need to solve these problems. So I would tell young people to think of the future generations and our friends around us, and put in the extra effort to solve these problems to make things better. And you should keep pushing because you’ll feel like giving up, you’ll be tired sometimes, you’ll feel like there is no way out, you’ll be blocked, but you should keep pushing. You should not give up. But you should also be smart and think and find solutions instead of just moving forward without any plan. 

Keep pushing, look at the bigger picture, and you will solve the problems. And I think that there is a necessity for problems to be solved, or else Africa won’t move forward and we will continue to be dependent upon funds. 

Do you have any plans in the short term to expand beyond Sierra Leone? 

Yes, we are planning on expanding to smaller economies first – we’re looking at Guinea and Liberia – before expanding to larger economies. We are a small company and we are still looking for funding, so we don’t feel ready yet to enter the larger economies where there is more competition. 

First, though, we need to build a website. So far we have been using only social media – Whatsapp, Facebook and sometimes Instagram. Now we are building a proper e-commerce platform. Our goal is to launch the website in Sierra Leone, then move to smaller countries around us, and then move to the larger economies. 

Would you like to share any final thoughts? 

Doing business in Africa is quite difficult. However, it is possible, and the rewards are immense. And to whoever is reading this, we are still looking for funding and for ways to expand. If you are interested in investing in Send Me, we would love to hear from you!

By: Shira Petrack

Estimated reading time: 3 minutes

The international business community can invest in small-holder farmers to develop agriculture on the continent, increase profits for both sides, and move Africa towards food sovereignty and economic prosperity. 

Today, most Africans participating in the labor market work on small farms of two hectares or less, producing foodstuff for subsistence and local farming. Despite the continent’s agricultural potential, however, productivity is low, many farmers are struggling, and food insecurity is rising.The farms’ small size and low productivity keep the profit margins extremely low, limiting farmers from acquiring mechanized tools or quality inputs that could increase their yield. Small-holder farmers also often lack adequate storage solutions for their crops, which forces them to sell their harvest to the nearest available trader at a low price.

Why Invest in Small-Holder Farmers

Contract farming is an “institutional arrangement under which an agribusiness firm contracts the production of agricultural commodities out to farmers.” These firms often provide inputs, equipment, and technical advice during the crop’s lifecycle to ensure they receive the best quality products, improving the farmers’ overall yield. Contract farming also saves the farmer the trouble of storing, processing, or transporting the crops to market, and guarantees the farm a minimum income for the harvest in the face of fluctuating commodity prices. 

The business consultancy Bain & Company has found that buyers that “invest in enhancing small-holder farmer livelihoods and disrupt traditional, transaction-oriented sales channels, such as traders,” have the potential to transform food systems in Africa. Buyers who treat small-holder farmers as partners rather than as commodity suppliers can raise income for small-holder farmers while benefiting from better quality and higher yielding harvests. 

Contract Farming Across the Continent 

For contract farming to truly benefit both the farmers and the buyers, the parties should outline the terms and conditions of their agreement clearly, including the price paid to the farmer, the quantity and quality of produce demanded by the buyer, and the date the farmer will deliver to the buyer. When done right, contract farming can form the basis for mutually beneficial relationships between small-holder farmers and established agribusinesses.

Various studies in Senegal, Uganda, Madagascar, and South Africa have found that contract farmers’ income is higher than their non-contract counterparts. In Ghana, contract farming has been linked to higher crop yields and better gross margins for participating farmers. A similar study in Benin found that contract farming contributes to higher rice output and increased income for small-holder farmers. In Kenya, farmers struggling with climate change have turned to contract farming through the East Africa Potato Consortium to obtain more resilient seeds and benefit from a guaranteed buyer for their crop at a guaranteed price. 

The Dangote Group, one of Africa’s largest conglomerates, has recently embarked on a multi-billion rice processing plant in Nigeria’s Jigawa State to produce 16% of Nigeria’s rice by 2023. The company has contracted with tens of thousands of farmers in Jigawa State, and it plans on expanding its out-grower scheme to fourteen states across Nigeria. The program provides farmers with inputs, equipment, technical assistance, extension services, and land preparation services to empower the growers to get the most out of their land, create job opportunities in rural areas, and increase take-home income for small-holder farmers. 

Private Sector Investment Will Establish Food Sovereignty 

The Dangote project is notable because its contract farming scheme is focused on food for local consumption rather than for export. Currently, contract farming schemes for locally consumed food production are almost nonexistent, even though spot markets that coordinate the supply and demand of low-value staples are highly inefficient. 

Africa’s population will double in the next thirty years, and urban areas will absorb two-thirds of the increase. Local agricultural exchange markets will need to become more efficient to feed the growing urban population. Companies that invest in local farmers to meet the increasing demand for food can improve the agricultural supply chain while enjoying a relatively low-competition business environment.  

By: Shira Petrack

Estimated reading time: 4 minutes 

The repercussions from the Covid movement restrictions and supply chain disruptions expose the need for food sovereignty in Africa. The region has the agricultural potential to produce enough rice to feed itself and to export abroad. Agribusinesses that collaborate with African farmers to increase yields can cater to the growing demand for foodstuff on the continent and contribute to Africa’s food security while enjoying a market characterized by relatively low competition and steadily growing demand. 

The Need for Rice Sovereignty in Africa

The fallout from Covid-19-related containment measures has highlighted once more the importance of increasing agricultural production in Africa. The region still imports a significant portion of its food, making the continent particularly vulnerable to disruptions in the global food supply chain. Now, it seems the pandemic might be threatening Africa’s rice deliveries. 

Rice imports are critical to food security on the continent. Even Nigeria, the largest rice-producing country in the region, still imports a significant portion of its rice, despite government efforts to curtail imports and boost local rice production. Around 12% of the rice grown locally is lost post-harvest due to inefficient milling and inadequate storage and transportation. West Africa, the largest rice-producing region, also imports a large portion of its rice, although imports decreased from 50% in 2010 to 30% in 2020. East Africa imports on average around a quarter of the rice it consumes, but the specific rate per country varies from 5% in Tanzania to 54% in Rwanda. 

Rice is the second source of calories in Africa (after corn), and over a third of rice consumed on the continent is imported. Due to container shortages, the cost of shipping rice to West Africa from South East Asia tripled in the last quarter of 2020, raising the prices for end consumers. Adverse weather conditions in Vietnam and Thailand further tightened the rice supply, prompting China to import rice from India for the first time in three decades. The events of 2020 have highlighted the dependence of Africa’s food supply on its international suppliers. 

Rice Production in the Region 

The local movement restrictions and the disruptions to the global supply chain have also affected local rice production. Over 90% of Africa’s total cultivated area is exclusively rain-fed, so planting in the right period is critical to ensure that the crops get the water they need to grow. On much of the continent, planting maize and rice begins in February to April, at the peak of the lockdowns. The Covid safety measures blocked many seasonal laborers from reaching rice farms on time and prevented farmers from getting the seeds they needed, which will affect yields. 

For African farmers who are already struggling to adapt to the effects of climate change, and in a region where poverty and malnourishment remain high, any drop in harvest can be dangerous. Covid has exposed the need for African farmers to upgrade and modernize their production methods to better adapt to the changing and erratic climate, make their crops more resilient, and increase their harvest.

Building Business Collaborations to Enhance African Agricultural Production 

To wean itself off food imports, Africa needs to produce a lot more rice. The right investments and collaboration can increase African rice production and raise the incomes of millions of people across the region. According to the World Bank, Africa is well-positioned for a massive expansion of agricultural production. The continent has the highest reserves of untapped natural resources for food production in the world, with around 45% of the global land that is non-protected, non-forested, and with low population density. 

The land that is being cultivated is not worked efficiently. African farm systems are the least mechanized across all continents. The majority of African farmers are small-holder farmers who work the land with no tractor and no irrigation system. Mechanization and irrigation can increase land productivity, and crop monitoring solutions can allow farmers to better care for their crops during their lifecycle. 

Even though many rice-producing African countries have similar climate conditions to rice powerhouses such as Vietnam and Thailand, Africa currently produces only 4.3% of the world’s rice. The International Rice Research Institute points out that rice is a relatively young crop in Africa, which only recently became a priority crop. The potential for rice in Africa is vast, and the market is currently wide open. Enhancing rice research capacity and strengthening the rice value chain is crucial to developing a thriving African rice sector. With proper inputs, irrigation, machinery, technological solutions, and post-harvest processing and storing facilities, Africa can grow enough rice to feed its population and export the surplus globally.