Connected commerce: The infrastructure behind retail growth in Africa

Unlocking Africa’s Trillion-Dollar Retail Potential: Digital Infrastructure for Connected Commerce

Africa’s retail market is a significant force, currently valued at $1.5 trillion and projected to grow to $4.5 trillion by 2050. However, a substantial portion of this market operates through traditional retail units, characterized by small-scale operations and high costs of sales. This traditional structure presents unique challenges for businesses striving for profitability and growth.

A primary issue within this vast retail landscape is the lack of seamless connection among key players. Manufacturers, distributors, and retailers often operate in silos, leading to a significant information gap. Manufacturers frequently lack visibility into downstream sales, while retailers are unaware of upstream supply chain dynamics, hindering efficient operations and strategic planning.

Mr. Muyideen Adisa, Chief Operating Officer at OmniRetail, highlighted their approach to address these inefficiencies. OmniRetail focuses on building a robust digital infrastructure designed to interconnect all participants in the retail ecosystem. This platform aims to bridge the information divide, fostering greater transparency and collaboration across the supply chain.

This digital infrastructure empowers manufacturers with precise data on what is being sold to distributors and, ultimately, to retailers. It also integrates essential partners, such as fintech and logistics providers, enabling them to contribute significant value across the entire retail space. This holistic approach creates a more informed and efficient network.

The implementation of such a connected system yields multiple benefits. It leads to higher revenues and increased profits for all entities within the supply chain. Furthermore, it facilitates better cost planning, ensures more available cash flow, and provides crucial credit access to various players, strengthening their financial stability and operational capacity.

OmniRetail’s strategy is not to disrupt or replace the established traditional trade but rather to optimize it. By leveraging digital tools, they enhance the efficiency of existing networks, transforming a trillion-dollar market into a more streamlined and responsive system. This approach supports the continued growth of Africa’s fast-evolving retail sector.