By Christine Akinyi,
Two tech companies have partnered to revolutionize the E-commerce business in Kenya. In a launch ceremony that was held in Nairobi, Zingo Connect Kenya Limited and Ngamia Haulers Limited joined forces in a bid to improve customer experience and utilize the already booming online business.
The partnership will see Zingo Shopping App providing seamless market access to Micro, Small, and Medium Enterprises (MSMEs) as Ngamia Haulers Limited runs the logistics and delivery services.
Since its release in August 2021, Zingo Shopping App has attracted over 400 small businesses showcasing their products on the platform, with nearly 100,000 buyers per month flooding it for convenient and effortless purchases. The Ngamia Transporters app boasts more than 1500 potential transporters providing delivery services to different regions within Kenya and across the borders.
With the increased internet connectivity and the surging base of mobile money payment options, many businesses can leverage e-commerce to foster economic sustainability in the backdrop of Covid-19 that has introduced a new norm of reduced physical interaction.
During the launch, the guest speaker Dr. Eng. Julius Ogony, who is also the founder of Impulse Innovations Enterprise Limited, acknowledged that the future of e-commerce is bright in Kenya since more people are opting for online stores when shopping. It is not surprising to miss a product of choice at a shopping mall but still find it online.
Kenya is currently ranked 64th largest e-commerce market globally by Statista, with 24% of the population having bought at least a product online in 2020, the period when lockdown and restriction hit the peak.
As this digital shift continues to shape how people shop in Kenya, there is an urgency for businesses to overcome various barriers like consumer trusts and an efficient logistics chain, a niche that the Zingo-Ngamia partnership has tapped.
This revolutionary shopping app will highly benefit buyers coupled with conveniences in fast and affordable delivery, item variety selection through visual customer experience, time savings, discounts, minimum physical travel, online product tracking, zero brokerage, and comprehensive item description.
Vetted and listed vendors also have access to a separate app, Zingo Seller, where they upload and list their products. Zingo Seller is integrated with Ngamia Transporter App for item pickup and just-in-time delivery.
The Zingo App e-commerce components cover a cross-section of products like men’s and women’s clothing, handbags, shoes, electronics, hardware, art, automobiles, auto-parts, healthcare products, real estate, décor, baby items, and many more. The Apps can be downloaded from Apple Store and Google Play Store.
For a sector that has always struggled with regulatory frameworks, Mr. Ogony called on the government to invest in enacting laws that support online purchasing.
“The government has to look into policies and invest in systems that will improve the current internet penetration rates across the country if the e-commerce is going to thrive,” he said during the launch held in Nairobi.
He also advises merchants to invest in the requisite technology and systems to secure their customers and their businesses as well as create customer awareness to negate some of the poor perceptions.
Ngamia Hauliers and Zingo have always worked within the regulatory frameworks and closely involved like-minded associations to aid consumers’ protection and education and fully benefit from the e-commerce sector.
In 2021, the two firms conducted an e-commerce booster project for Kenya Private Sector Alliance (KEPSA) to support Kenya’s MSMEs in integrating their businesses with digital technologies. The initiative is supporting nearly 7.4 million MSMEs to get into the digital economy.
With three years of operating, each company has spent approximately US$ 400,000 in market research, product development, and customer acquisition. Each of the companies is projected to invest US$ 1 M for Business Development, expansion, Sales & Marketing in the next year.
The CEO of Ngamia Haulers, Eng. Jonathan Ndede, is upbeat that this venture will expand the e-commerce and logistics space in the country for MSMEs. Statista Market Forecast already estimates Kenya’s e-commerce market to register compounded user penetration of 40.3% – 53.6% between 2022-2025 period. With this vast prospect, Eng. Ndede calls for many MSMEs to join the e-commerce business for efficiency.
The founder and CEO of Zingo Connect, Dr. Peter Okoth, says that this new collaboration with Ngamia Haulers allows the homegrown and indigenous Kenyan E-commerce SMEs to capture most of the market share enjoyed mostly by foreign investors and businesses in Kenya. He is calling upon Kenyans to help promote their businesses.
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Head Media and Communications
Jubilant Stewards of Africa
About Zingo Connect
Zingo connect is a high-growth e-commerce business venture. We offer a digital mobile platform where vendors upload products and buyers register and purchase from the app. We offer delivery services and charge commission on sales and buyer transactions.
About Ngamia Haulers
Ngamia Haulers Platform is an African Software Engineering Company which defines itself as Thought Leaders in cutting-edge software solutions, Headquartered in Nairobi, Kenya with a footprint that spreads across the country, East Africa Community (EAC) and COMESA region. Ngamia Haulers Platform Delivers cutting edge Web, Mobile and Smartphone technologies for diverse clients in the Transport, Logistics and Supply Chain Industry.