NEWS
THE TOP 6: A Spotlight of Sergio Tati's Journey with Anda and Insights from Meet the Toshikas
The Meet the Toshikas which aimed to catalyze investment pipelines between Japanese investors and African startups has been a progressively long but perfectly curated set of activities and events. Finally, the top 6 startups have been selected. Started with 256 applicants (116 from Zambia, 81 from South Africa, and 59 from Angola) and later reduced to top 30, 10 from each country, (click here to read top 30 startups article), the UNDP is thrilled to announce the top 6 innovative ventures chosen from a competitive pool of applicants for their exceptional potential to disrupt industries and drive significant impact. These are the top 6:
Angola
Anda: Formalizing the 2-wheeler moto-taxi market in Angola, providing financing, training, and insurance to its drivers, thus providing better and safer service for its customers!
Mamboo: Providing quick and seamless food/FMCG deliveries via its design award-winning
South Africa
Zoie Health: A platform empowering women's communities and small businesses to get proactive about their health!
Jobox: Helping university graduates get their first gigs, and universities learn more about their graduates!
Zambia
Bosso: Building a platform to make building houses simpler and cheaper!
Afrionline Group: Started from deliveries, now we’re here! An integrated platform that allows customers to order from restaurants, supermarkets, and Wholesale!
Being selected for the Meet the Toshikas program is a significant milestone for these startups as they will be provided with a comprehensive investment readiness support program (IRSP) and a $20,000 grant to help overcome growth challenges and scale their businesses effectively. Additionally, the top 6 startups will take part in a 1-week activity-packed investors roadshow in Tokyo given honing pitching opportunity for additional investments and strategic partnerships in front of the Tôshikas.
To be selected among the top 6 startups, the venture should have demonstrated exceptional entrepreneurial DNA, showing product-market-fit, visionary founder qualities, potential for growth, readiness to scale operations, participated in ecosystem and field trip event (Click hereto read field trip article) and excel during the bootcamp training (click here to read bootcamp article). As a result, the selection process remains one of the most rigorous and carefully designed.
In this article, we spotlight AfriOnline Group, and the interviewee is Wallace, a CEO and Co-founder.
Meet Afshon Wallace
CEO and Co-Founder of AfriOnline
Wallace is passionate about business support services, especially logistics and e-commerce. He aims to build an African version of Amazon with AfriOnline Group
Enjoy the interview!!
Q1. Kindly tell us about yourself?
My name is Wallace Afshon I was born and raised in Kenya and moved to Zambia in 2016. I have been involved in the startup space for some time - about 15 years. My first startup was AfriTaxi built in Rwanda.
Q2. What was the motivation for establishing AfriOnline and what problems are you solving?
From Jumia’s food delivery services, I launched AfriDelivery. I learned Jumia’s model through a partnership deal with AfriTaxi. My co-founder and I decided to launch AfriDelivery, but we didn't want to start in East Africa because the market was already highly concentrated. An investor suggested Angola or Zambia to us, and we picked Zambia, which aligned with a dream a friend of mine had about my successful business in Zambia.
It was difficult in the beginning – we couldn’t buy motorbikes and faced many challenges. We eventually started with two motorbikes and were doing 20 deliveries a day. Initially, we started as AfriFood and later rebranded to AfriDelivery to include both food and non-food goods. When COVID-19 hit, we were well-positioned to serve various needs and eventually grew. Over time, we launched AfriSupermarket, an e-commerce platform allowing both locals and those in the diaspora to shop. Inspired by Amazon’s model, we are growing to be a powerhouse in logistics and e-commerce. Currently we are in our seed stage in terms of funding.
Q3. What challenges are you currently facing in promoting your business?
We’ve faced numerous challenges, which have made building this business a long journey. The first major hurdle was product education. When I started in Zambia, no one else was doing what we envisioned. A significant amount of our time was spent educating restaurants, retailers, drivers, and customers on why this idea would work. Digital services are still relatively new in Africa, and people are accustomed to brick-and-mortar establishments. Changing this mindset has been a cultural challenge.
Secondly, we have built this business largely on our own. Despite becoming one of the biggest brands, no government entity has approached us to help scale our efforts. This lack of support and favorable regulations for startups, like a startup act, has made it difficult to progress from one stage to the next. It's demotivating when the environment doesn’t support your growth.
Lastly, funding remains a significant issue. Africa is often overlooked as an investment opportunity, so we must work much harder to prove our worth. For instance, the model we’re implementing works well abroad and attracts substantial investment, but here, we face immense scrutiny and a high level of due diligence before investors show interest. This trust issue makes it challenging to gain the necessary support to build and grow.
These challenges—product education, lack of government support, and funding—are the biggest obstacles we’ve faced. If conditions were more favorable, we could have built another Amazon by now. I started working on AfriDelivery nine years ago, and in a different environment, we could have raised funds within the first few years and been in a much different position today. But everything has its own timing.
Q4. What has been the support you have garnered so far from the ecosystem and what do you think is lacking?
I have to give credit to the incubators, specifically BongoHive. Their professionalism is absolutely outstanding. What I mean by that is, your merit is based on the product you have or what you've accomplished, not who you are. During this process, we were among many companies and ranked in the bottom 10. Despite this, the professionalism was so evident that there was no favoritism. Everyone left feeling they had a fair chance to win. When I was picked, I was surprised because there were so many outstanding companies.
As the incubators have grown, they have grown with us. Although I was never incubated, I participated in a program through them and gained invaluable knowledge and peace of mind. Knowing that an ecosystem of entrepreneurs exists, all facing similar challenges, we can now work together. One of my biggest partners came from that program, and both of us have benefitted greatly.
Unfortunately, I have not received any support from the government. There's still work to be done, and I would like to challenge them to step up. It's never too late. New startups shouldn't have to face the same pressures we did. The government can use us to create methodologies and regulations that are pro-startup, and we'd be more than happy to contribute.
I have to give a lot of credit to the incubators, both big and small. Even if they don't provide financial support, they offer training and expose us to opportunities. Sometimes, that's all we need.
Q5. What potential does your company have? How does it differ from other similar startups that are your competitors?
What sets us apart is our mastery over the entire value chain. We’re not just a delivery service or an online platform; we manage the whole process. For example, if you're a farmer, you only need to focus on farming. We handle everything from picking up and selling your product to delivering it, collecting payment, and even advertising. We can also manage international shipping and find partners for sales in other countries.
Our goal is to establish a comprehensive network across Africa within the next five years. We believe every African country has storage space, but finding it can be challenging. We aim to create a platform that showcases and vets all available spaces, making it easy for users to find trusted options.
We envision our business as an enabler, building the necessary infrastructure that will support numerous smaller businesses and startups. Our aim is to become a key enabler in Africa's goods distribution network. We’ve integrated our entire value chain with a single backend system, positioning us well to expand. By leveraging our integrated infrastructure, we aim to become a cornerstone of African distribution, fostering a thriving ecosystem of businesses
In the next five years, I foresee us establishing a significant presence in 70-80% of Africa
Q6. How are AfriOnline’s activities linked to the SDGs?
First and foremost, SDG 8 - job creation is our most significant focus, which directly improves the quality of life and contributes to the economy. We have been able to create jobs for individuals who may not have the qualifications for certain positions. For example, we hire drivers, merchandisers, and salespeople, among others.
Specifically, on the driver side, we've seen remarkable transformations. I recall some drivers who started with just a piece of land. As we built relationships, we partnered with financial institutions to help them get loans to build houses. Within four or five years, some drivers moved from rental spaces to owning their homes, showcasing a complete transformation in their lives. This purpose-driven aspect of our work is a significant inspiration for me personally.
In relation to the SDGs, job creation is paramount. We provide decent jobs where employees earn a minimum of $200 a month, which is fair in our country compared to the general job market. This has been our most impactful contribution
Thoughts on Meet the Toshikas
Q1. Why did you apply for Meet the Toshikas?
The primary reason I applied was due to the alignment with our goals. The program offers exposure to large international investors, matching the ticket size we are seeking to raise. Additionally, it presents a strategic opportunity for trading deals with companies. Investment can take many forms—whether through trade agreements between companies, cash, or technology partnerships with Japanese firms.
Participating across three countries offers a vast array of opportunities. Startups in these countries have unique assets that could benefit us, and vice versa. By forming strategic partnerships, we can help each other scale. The value I'm seeking from this experience is twofold: first, the strategic value from networking, and second, potential capital to support our current trades. Both aspects are advantageous for our growth
There is also the money, $ 20,000, which can be a good source of capital for my current operations.
Q2. You will be provided with a 2-month intensive Investment Readiness Support Program, what business-related issues do you look forward to address?
The key business-related issues I am looking to address in this program are:
a. Exits: I want to learn extensively about exit strategies.
b. Financial Modelling: I aim to understand how to model my business effectively for the next three to five years.
c. Team Scaling: I seek insights on the types of teams to build as the business scales.
These are the primary areas of focus for me.
Q3. You will be attending a 1-week roadshow in Japan with an opportunity to secure investment and build partnerships - what are your expectations?
So of course, meeting the investors is one of them. Also, I would like to meet partners I can actually just work with, get into trade deals with. If they need representation in Africa, I'd like to be the guy that they talk to. Key objectives include pitching my business model to investors, showcasing the opportunities within the Southern African market, and leveraging our infrastructure to facilitate and distribute goods from Japan to Africa.
Q4. How did you find the selection process and the events so far, what sets you apart, any learnings?
I wouldn't say it was easy, but it was manageable. The reason I say manageable is because the selected companies had a certain level of preparation. To complete the tasks they expected of us, we had to demonstrate and explain our business, and they had to visit us physically to see what we were doing. This shows that the chosen companies were genuinely ready for the challenge.
I believe they did an excellent job and should continue in the same manner. Initially, I underestimated the boot camp, but it turned out to be the most crucial part of the process. The knowledge gained from the boot camp was invaluable, and it was the only session where startups could interact with each other. We had both physical and digital sessions, and I looked forward to those boot camps because I was learning and connecting with friends.
Personally, for me, the bootcamp gave a lot of confidence, I don't think the UNDP knows how much that personally changed my life. And it's crazy actually, for someone that hasn't raised money before for you to get such high level of self-belief, it's really, really encouraging. You get the idea that you're on the right path and sometimes validation is all an entrepreneur needs to know that actually there's something there. I got this experience from the program so far.
Overall, the process was excellent. The only downside was the delays in announcements, which created some anxiety.
For what set me apart, first of all, traction. I have built significant traction, establishing a trusted household brand that everyone recognizes. Another factor that set me apart was the room for growth. I was not just building a Zambian business but an African business, aiming for a continent-wide impact. The potential for my business is vast, and I managed to convey this to the judges and teams. The traction I've built demonstrates a certain level of discipline and resilience in building a business, which I believe highlighted the qualities needed to be selected.
Q5. How different is MTT from other accelerators and incubation programs you’ve participated in?
This was my first and the experience has been amazing. Thank you, UNDP.
Q6. Any advice for future applicants to this program?
I will 100% encourage every startup out there to apply to this program and any other program from the UNDP. I will also say they should be ready mentally and physically.
Q7. Do you have any final words for people who are interested in startups in Africa including Japanese investors and corporates reading this article?
First of all, don't be afraid. We have some of the most hardworking and passionate individuals. The potential in Africa is absolutely remarkable. Just support us and work with us, and we can build something extraordinary. It's only a matter of time. Whenever I speak to investors, I tell them it's only a matter of time before the next investor recognizes our value. It could be you or another investor, but what we're building is inevitable. It will happen, and we will be there to make it happen.
Trust us and give us a shot. I'm not just speaking for myself but for the team of startups I've seen, people building great products. It's incredibly inspiring to witness. In an environment with little to no support, understanding what it means to make something out of nothing is truly inspiring.