Lipa Later signed an MOU with the County Government of Mombasa to power digitization and supercharge growth for SMEs across the county.
In today’s rapidly evolving business landscape, digitization has become a crucial aspect for many organizations and this does not exclude small and medium-sized entrerprises (SMEs). To stay competitive and reach new customers, SMEs need to leverage on technology and digital transformation.
SMEs also need to be supported by bigger tech companies as well as the government. This is what has spurred Lipa Later Kenya to come together with the County Government of Mombasa to help SMEs in their digitalization journey.
Lipa Later signed a Memorandum of Understanding (MOU) with the County Government of Mombasa to power digitization and supercharge growth for SMEs across the county.
As one of the leading fintech platforms in Kenya, Lipa Later empowers SMEs and consumers to Buy Now Pay Later (BNPL) for essential products and services and also provides a digital marketplace that allows merchants and SMEs to sell their goods online and easily access credit to support their growth.
After signing MoU, Lipa Later will provide a range of tools and services to support digitization, including easy-to-use e-commerce solutions through their e-commerce platform, Sky.Garden and access to Lipa Later’s BNPL option. Consumers can now apply for credit directly through Lipa Later’s BNPL platform, making it easier to access credit when they need it.
Meanwhile, merchants will get access to a free online platform to advertise their products to millions of consumers and they can easily apply for funding to invest in their businesses and purchase inventory. This partnership aims to create a more efficient and inclusive financial system, boosting the local economy, consumer purchasing power and promoting economic development.
The goal of this partnership is to empower SMEs and individuals with the tools and resources they need to succeed in today’s digital economy.Through the MOU, Lipa Later and Mombasa County Government will provide SMEs with training and support services to help them grow their businesses. This includes access to financial literacy training, business management training, and mentorship programs.
The MOU also provides for the establishment of a task force to oversee the implementation of the program and to provide feedback on its progress. The task force is scheduled to convene its first session on Tuesday 14th February 2022 to lay the foundation on how SMEs can be onboarded to Lipa Later’s digitized online platforms and access a market of hundreds of thousands of consumers, and how SMEs will easily access credit to support their growth.
Lipa Later Group CEO, Eric Muli expressed his thrill in the partnership to support SMEs and consumers in Mombasa County.
“MSMEs are the backbone of African commerce, contributing 38% of Africa’s GDP, and employing 70% of the region’s population. However, they encounter friction at various points in their value chain, which hampers their scalability and revenue potential. Key friction points include: Limited access to credit options due to minimal credit scoring data for both themselves and their customers, limited access to formal marketplaces which mostly focus on large and established brands i.e. modern trade and limited access to affordable tools to help digitize their business processes; and those with access often have to juggle between multiple platforms that rarely offer localised solutions,” Muli said.
On his part, Mombasa County Governor, Hon. Nassir, Abdullswmad Sheriff, talked of the challenges facing the SMEs sector and consumers in the county. He talked about in-adequate market infrastructure,poor logistics infrastructure, inefficient payment systems/infrastructure, lack of trust and a varied competitive landscape among what ails SMEs in Mombasa county.
“Helping SMEs adopt new technology to sell online and attract financing will enable them to reach new customers, drive sales and position themselves for the future. This will boost productivity, consumer purchasing power and help create jobs and prosperity across the county,” he said.
The MOU will be in effect for three years, with the option for renewal. It is expected to have a significant impact on the growth and development of SMEs in Mombasa and will serve as a model for other counties in Kenya
