Kwely is a B2B wholesale distribution platform that focuses on harnessing Africa’s extensive trade opportunities. The platform aims to address the significant untapped export market valued at $250 billion.
In this interview, Birame Sock, founder and CEO of Kwely, talks about the platform’s origins and its mission to revolutionize global markets for African suppliers.
What motivated the creation of Kwely?
The inspiration behind establishing Kwely arose from recognizing the significant hurdles faced by African suppliers in accessing international markets. This realization was fueled by the untapped export potential of $250 billion from Sub-Saharan countries, with 72% of it being exported outside the continent. These circumstances prompted a determination to overcome existing obstacles hindering Africa from tapping into this vast market. Kwely’s vision is to revolutionize the global trade landscape for African products by addressing issues such as poor marketing, branding strategies, and low-volume manufacturing processes. The goal was to create a transformative B2B e-commerce platform, ultimately establishing Kwely as a pivotal player in connecting African suppliers with international buyers.
Are there changing consumer behaviors or emerging markets that could impact the sourcing of African products?
Several shifts in consumer behavior and emerging market trends could significantly influence the sourcing of African products. The global trend towards conscious consumerism and sustainability has led to an increased demand for ethically sourced and environmentally friendly products. African goods, often rooted in natural and sustainable practices, are well-positioned to meet this growing demand. Additionally, the rise of e-commerce and the increasing preference for online shopping provide an opportunity for African products to reach a broader international audience. With Kwely operating as a B2B e-commerce platform, it aligns with the shift towards digital sourcing and facilitates the streamlined procurement of African goods. Moreover, the diversification of product offerings, particularly in the health and wellness sector, aligns with the growing interest in natural and traditional remedies. African products like Moringa, Hibiscus, or Baobab-based items, as emphasized by Kwely, tap into this emerging market trend. Overall, the evolving landscape of consumer preferences and the rise of online markets present favorable conditions for the sourcing of African products, positioning Kwely strategically in the global trade landscape.
What are the main challenges faced by African manufacturers in accessing global markets, and how does Kwely assist them in overcoming these obstacles to meet international standards?
African manufacturers encounter several obstacles when entering global markets, and Kwely plays a vital role in helping them overcome these challenges to meet international standards. Some primary obstacles include:
Limited Market Access: Many African manufacturers struggle with limited access to global markets due to poor infrastructure, trade barriers, and a lack of visibility. Kwely addresses this by developing a wide distribution network through various channels, including a B2B e-commerce platform that serves as a marketplace, providing a streamlined channel for international buyers to discover and purchase African products.
Inadequate Branding and Marketing: Local suppliers often lack effective branding and marketing strategies, making it challenging to compete on a global scale. Kwely’s TEKKI Challenge addresses this issue by incubating and elevating local brands for global export. The initiative ensures that products meet international standards and FDA requirements, enhancing their marketability.
Low-Volume Manufacturing Processes: Many African manufacturers operate on a smaller scale, leading to challenges in meeting the demand of international markets. Kwely tackles this obstacle by supporting local suppliers through the syndication of multiple suppliers that all follow the same production standards and partnerships with financing programs to help support suppliers to scale up their production capacity. This contributes to overcoming the hurdle of low-volume manufacturing.
Poor Financing Options: Access to financing is a common challenge for African manufacturers. Kwely recognizes the importance of resolving this issue to scale up production. The company focuses not only on technology but also acts as the gateway between customers and suppliers, pre-financing certain expenses on behalf of the suppliers such as branding development and packaging purchasing. In creating higher demand, suppliers can qualify for certain loans that would allow them to fulfill the orders.
Packaging and Quality Assurance: Meeting international packaging standards and ensuring product quality are critical for global acceptance. Kwely provides in-house packaging services, supporting local suppliers in designing export-ready packaging that adheres to global quality standards. Additionally, the company implements rigorous quality assurance processes to guarantee that products listed on its platform are export-ready through a co-packing facility, allowing Kwely to ensure that the packing process meets the standards.
By addressing these obstacles, Kwely acts as a catalyst for African manufacturers, enabling them to navigate the complexities of the global market and meet international standards.
Goals and Aspirations for Kwely in the Next Few Years
1. Establishing Kwely as a leading global distributor of African products, emphasizing its role as a primary connector between African suppliers and international buyers.
2. Focusing on expanding the market presence of African products beyond the continent, particularly targeting the U.S. market. This involves strategic partnerships, engagement with major U.S. retailers, and listing products on platforms like Amazon.
3. Ensuring the success of the TEKKI Challenge and brand incubation program, elevating the quality and recognition of made-in-Africa products to empower local suppliers.
4. Contributing to job creation and the development of a comprehensive ecosystem, spanning agricultural initiatives, industrial production facilities, and branding and marketing services for a positive economic impact on local communities.
5. Securing additional funds through ongoing fundraising efforts to support Kwely’s expansion plans, including projections of substantial revenue growth exceeding $2 million by December 2024.
6. Maintaining a commitment to sustainability and quality assurance in every stage of the export process to meet international standards.
Advice for Other B2B Marketplace Founders
1. Delve beyond technology and comprehend the gaps between buyers and suppliers to construct your marketplace as a bridge addressing concerns from both sides.
2. Build your marketplace incrementally, identify low-hanging fruit in terms of products, brands, and categories, and refine your platform based on real-world feedback.
3. Implement a data-centric approach, recognizing that a minority of your products will likely contribute to the majority of your revenue, and staying agile to adapt strategies based on real-time insights.
4. Only buy what you need based on short-term forecasts until you have a strong handle on your customer demand.
