Safaricom is partnering with tappi, an Africa-focused digital commerce platform, to digitize over 650,000 micro, small, and medium-sized enterprises (MSMEs) registered on its M-PESA for Business service. This collaboration aims to provide these businesses with the digital tools necessary to enhance their online presence, improve customer engagement, and drive growth within the digital economy.
Part of this partnership includes the integration of tappi into the M-PESA for Business Super App, making it one of the first mini-apps on the platform. Through this integration, MSMEs will gain access to a set of features designed to boost their credibility and visibility online. These tools include a free webpage, 50 SMS/WhatsApp reviews, and 250 Bulk SMS Marketing Credits for each business, all bundled at a cost of KES 1,350.
The digital tools provided by tappi focus on overcoming the challenges that many MSMEs face in establishing a trusted online presence. These include complex platforms, the need for international credit cards, and unreliable online trust markers, all of which have traditionally hindered small businesses from expanding their reach.
In addition, M-PESA Ratiba, an automated payment solution, will be available via the tappi mini-app, enabling businesses to manage their payments seamlessly. With this feature, MSMEs can automate their subscription payments, ensuring smooth continuity without disruption.
Supporting MSME Digital Growth
This partnership is not just a move to digitize businesses but also part of Safaricom’s broader goal to drive financial inclusion and economic growth by empowering local entrepreneurs. Through tappi, the telco aims to reach 300,000 M-PESA for Business App users, targeting various sectors like food, fashion, health, and beauty. Businesses will now have the ability to consolidate payments, receive verified customer reviews, and market themselves to a larger audience using bulk SMS campaigns.
The partnership is timely, considering the economic challenges many MSMEs face in establishing a credible digital footprint. Many businesses struggle to build an online presence due to the complexity of existing tools and the difficulty of accessing trusted platforms. By offering simplified, accessible tools through the M-PESA for Business Super App, tappi seeks to streamline this process for small businesses.
tappi’s Expansion and Market Ambitions
The partnership with Safaricom marks a significant milestone in tappi’s journey toward capturing Africa’s $20 billion MSME market. Since its inception in 2019, the platform has facilitated digital services for over 105,000 SMEs and handled $3.4 million in consumer transactions. The platform has a 90% retention rate and a 1.5-month payback period, demonstrating the effectiveness of its solutions in meeting the needs of African MSMEs.
This new collaboration with Safaricom follows a series of strategic moves by tappi to expand its reach across the continent. Earlier in 2024, tappi signed a Memorandum of Understanding (MOU) with the Kenya National Chamber of Commerce and Industry (KNCCI) to digitize 30,000 Kenyan MSMEs. Additionally, it expanded to Côte d’Ivoire in partnership with MTN, which has also integrated tappi into its operations in Nigeria. These partnerships highlight tappi’s focus on bridging the digital divide for African businesses, positioning the company as a leader in the digital commerce space across multiple African markets.
Addressing MSME Challenges
Despite their significant contribution to Kenya’s economy – accounting for nearly one-third of the country’s GDP, according to USAID – MSMEs face numerous challenges in going digital. Many of these hurdles stem from the complexity of existing platforms, which often require advanced technical skills or access to international payment systems.
By integrating payments, messaging, and AI-driven solutions, tappi helps MSMEs create an online profile with ease, allowing businesses to boost their online visibility, engage with customers, and build trust through verified reviews. The platform also offers solutions to pay for online ads using mobile airtime, a practical solution for African businesses that may lack access to traditional banking or credit card systems.
Safaricom’s Role in Driving Digital Transformation
Safaricom’s decision to partner with tappi underscores its ongoing efforts to provide innovative digital solutions to Kenya’s entrepreneurs. With over 50 million monthly active M-PESA users across Africa and 650,000 MSMEs in Kenya alone, M-PESA remains a critical engine of the country’s digital economy. By integrating tappi into the M-PESA for Business Super App, Safaricom aims to help local businesses expand their digital reach and thrive in an increasingly competitive online environment.
According to Peter Ndegwa, Safaricom’s CEO, this partnership is not just about providing tools but also about empowering MSMEs to become “thriving participants in the digital economy.” As more businesses move online, Safaricom’s support through initiatives like these will be instrumental in helping local enterprises build the capacity they need to compete.
Conclusion
The Safaricom-tappi partnership represents a significant step toward digitizing Kenya’s MSME sector. By offering affordable, practical tools to help small businesses build trust and visibility online, the collaboration aims to level the playing field for businesses that have traditionally been underserved by existing platforms. As tappi continues its rapid expansion across Africa, this partnership is poised to support hundreds of thousands of businesses as they navigate the shift to the digital economy, driving economic growth and inclusion across the continent.
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