Food Giants Tap Startups to Unlock Africa’s Vast Informal Market

Food companies are partnering with startups to better reach Africa's informal retail market, which is largely untapped. Guinness Nigeria Plc, a subsidiary of Diageo Plc, has teamed up with a logistics startup called Jumia to distribute its products to small neighborhood shops. This allows Guinness to bypass traditional wholesalers and reach a wider customer base. Other companies, such as Unilever Plc and Nestlé SA, are also exploring similar partnerships to streamline their distribution networks and improve visibility in the informal sector. The informal market in Africa accounts for a significant portion of retail sales, and tapping into this segment is crucial for multinational companies looking to expand their reach on the continent. Startups with innovative technology and logistical solutions are proving to be valuable partners in navigating the complexities of the informal market, which is often characterized by fragmented supply chains and limited access to formal distribution channels.