If you don’t want to lend to them, will you lend to me? That’s how the business started…— Siya Ntutela, CEO - Zande
We trade with both South Africans and non-South Africans… These are great businesspeople… It’s a tough environment… South Africans are the ones who seem to need it [credit] most…— Siya Ntutela, CEO - Zande
He who can crack the informal market is sitting on gold… We have a lot of VCs looking positively at what we’re doing.— Siya Ntutela, CEO - Zande
The spaza shop market in South Africa is worth about R40 billion per year, and growing at 10% per annum.
More than 90% of transactions are in cash.
South Africans own only about one in five spaza shops.
Spaza shops around South Africa are battling because, according to Siya Ntutela (CEO and co-founder of fin-tech firm Zande), many suppliers don’t offer credit to small retailers and supply chains are broken.
Zande uses old-school USSD tech to allow spaza owners to apply for credit and make payments using a simple feature phone.
The tech also enables cashless transacting between suppliers and spaza shops.
Zande raises credit from large Fast-Moving Consumer Goods companies and extends it to spaza shops by supplying them with stock.
It also negotiates bulk discounts.
Listen to the interview in the audio below (and scroll down for more quotes from it).
We’re not lending physical cash. We lend products…— Siya Ntutela, CEO - Zande
We have a huge cash book rather than a credit book… We deliver to their doorstep; we give them a good price… That [a mobile cash and carry] is exactly what we are!— Siya Ntutela, CEO - Zande
We don’t wait for things to get broken. We see them after three days if we see a potential problem…— Siya Ntutela, CEO - Zande
Social capital is a huge thing… it’s the secret sauce…— Siya Ntutela, CEO - Zande
We’ve started with an owner-driver platform…— Siya Ntutela, CEO - Zande
It’s not that we’re trusting; we’re careful!— Siya Ntutela, CEO - Zande
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
Nicola Harris (founder, Click Foundation) on her mission to radically transform educational outcomes of disadvantaged learners.
He’s the co-founder of Clickatell, global leaders in application-to-person mobile messaging and mobile transactional services.
The Money Show’s Bruce Whitfield interviews James Tagg, co-founder and director at Quicket.
TymeBank has no branches and no monthly fees. Most transactions are free. Bruce Whitfield interviews its CEO.
Bruce Whitfield interviews Williams about her transformative business delivering quality cookies to hotels and Pick n Pay.
South Africa is falling in love with gin. Lorna Scott is the owner of the wildly successful Inverroche Distillery.
The Money Show’s Bruce Whitfield interviews TJ Strydom, author of “Christo Wiese - Risk And Riches”.
Global Initiative against Transnational Organised Crime's Simone Haysom says gangs operate far broader than the Western Cape.
Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.
After South African star Mbuzeni Mkhize performed a remix of Rihanna's track 'Diamonds' she contacted him to collaborate with her.
Defence expert Helmoed Heitman says the move may mean the military may not have enough infantry to patrol the countries borders.
Nyanga CPF welcomes army presence while SU's Ntsikelelo Breakfast warns officers' military training could backfire.
Residents living on the crime-ridden Cape Flats share their first-hand experiences of life in 'apartheid's dumping ground'.