The Inspirers: Mobile app helps S. African businesses grow

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02:40

Little acts of kindness can go a long way. On this week's "The Inspirers," CGTN reporter Yolisa Njamela visited a company in South Africa that has developed a game-changing mobile application, which utilizes the collective purchase power of local convenience store owners to expand their profit margins.

The "I am Emerge" app is the brainchild of Brian Bonang Makwaiba and Oscar Monama, co-founders of the application.

Makwaiba was studying medicine, but dropped out as his father, who was a spaza owner, could no longer afford the tuition. Spazas, which are convenience stores in South Africa, are usually family-run businesses.

They then started a business based on the app, which buys stock in bulk for spaza owners to sell at a lower price. Now thousands of spazas are using their service in Gauteng province.

Pick n Pay, a grocery store focused on the middle and upper end of the market, on Thursday piloted a project to supply informal shops, called "spazas." The trial could be extended to hundreds of independent spaza owners if successful, it said. /VCG Photo

Makwaiba told CGTN they help to expand these businesses in a number of ways.

Through the app, shop owners order the goods they need, and his team aggregates the orders and makes a bulk purchase from the manufacturers. His team receives goods from the warehouse, distributes and delivers to owners, which helps to save their time and money.

I am Emerge provides a platform for suppliers or manufacturers to access the township market and expand their business. The co-founders attest that the township market has been a difficult terrain to penetrate.

Monama said that the first step was to build trust, as many companies drop out of the market at the first sign of failure.

"We give them free delivery which most of them hardly get. That's our main selling point and we also help to sell products with the expiry date," Mike Mabusela, Youth Marketer's manager, explained.

I am Emerge also provides entrepreneurial training for the township-based businesses to help them increase profits and achieve sustainable development. Through this project, they've also created employment in the townships.

Tshepo Molepo, a young salesman, told CGTN it has been great for him. He has gained valuable business skills and found employment.

Makwaiba told CGTN that apart from unemployment, the businesses are also failing. Therefore, his team tackles both areas, working with township-based businesses as well as independent salesmen.

According to a Nielson report, spazas are the backbone of the township's economy and are worth billions of rand. However, there are still pressing challenges, such as no access to credit, vulnerability to crimes and no price advantages in competition with big retailers.