Technological innovations are of great help to businesses, especially start-ups. They mainly increase productivity and make the work process efficient. Startups in emerging markets make big headlines when reporting their massive funding rounds, usually fintech startups-but what is innovation beyond the big headlines?
Ana Paula Picasso interviewed Max Cuvelier for the EMT podcast, and they picked 3 examples of startups that probably won’t make big headlines but are solving real-life problems.
Max has worked with several startups from all over the world that have found innovative solutions in their business models and reaped a lot from them!
Twiga Foods in Kenya, aims to transform the food retail business. This company used the problems experienced in Nairobi to create its robust model. There was inefficiency in the flow and supply of veggies in the city, vendors faced the challenge in bargaining as small scale and farmers lacked direct access to the market hence low profits. In return, consumers in Nairobi paid a lot because of the intermediaries.
Twiga is now the intermediary between them all. Consumers and producers get a better price while trading and the goods handled are better managed. The use of mobile money as a digital payment method has made trade very fluid.
This company also aims to diversify their product line and offers for traders while maintaining their goal, which is to recreate and strengthen the value chain.
” I really respect an organization that is so dedicated to solving a problem that they want to build the best solution before taking it to the market. Instead of accepting money that comes knocking on their door to launch two or three markets that will have them spreading themselves thin and underdeliver.”
Max Cuvelier, co-founder Africa: The Big Deal
The second example he mentioned is Coliba, from Ivory Coast, tackles a crucial but underrated problem faced all over the world. They handle plastic waste and collection sustainably. Coliba incorporated two apps in its structure: households (where they inform on the availability of plastic waste) and waste collectors (get notified to collect).
The incentive behind this is that waste collectors are paid. A strong incentive. Coliba works with MTN to reward households with data. The company aims to transform plastic into pellets, which is a great alternative and more affordable than the ones they import. Hence, they are creating a value chain for their product.
Coliba’s innovation is a win-win all around: data, revenue for waste collectors and through the sale of pellets , and environmental improvement. “When you start from the problem, you have lived through it as a founder. That’s when you develop great solutions.”, Max explained in the episode.
This wise quote introduces Efishery, which was founded by a shrimp farmer, Gibran, who realized about 85% of the cost of the fish farm is the fish feed and is not well managed. Manual dispensation of fish feed is hectic and inefficient because the fish are frequently overfed and fish feed is wasted.
Gibran’s innovation was based on fish activity and water quality to determine the fish’s appetite, hence releasing fish feed. This innovation has led to more agile management of the fish farm, saving costs on fish feed and improving yields. Overall, the profit is increased, and the entire process is more sustainable.
The involvement of mobile operators who worked with Efishery to test the new technology during the early stages has enabled them to do a pilot to build a global technology.
From the above cases, we can see that tech innovations help entrepreneurs create long-lasting solutions, improve on existing ones, and create new sales avenues.
You can listen to the full episode here
Main Photo: By safaritravelplus – https://www.safaritravelplus.com/images/places/woman-selling-at-a-market/, CC0, https://commons.wikimedia.org/w/index.php?curid=115392171
