Nestlé, Nomanini and Standard Bank Partner to Solve the Stock Needs of Africa's Underbanked Informal Retail Traders

The informal economy in sub-Saharan Africa accounts for 38% of the region’s GDP. What’s more, according to the International Labour Organisation, retail and wholesale is the second biggest employer across the region after agriculture. However, informal retail Micro, Small, Medium-sized Enterprises (MSMEs) are largely underserved and underbanked. Plus, they face a distinct challenge: their scarce working capital must be balanced between various products that need to be stocked, or else they lose customers.

With these retailers typically generating 80%-85% of their revenue through the sale of fast-moving consumer goods (FMCG), a collaborative partnership between Nestlé Eastern and Southern African Region, Nomanini and Standard Bank is providing MSMEs with access to working capital via Trader Assist, a digital finance solution that enables retailers to sufficiently stock up their shops. With Trader Assist, Standard Bank provides much-needed access to responsible working capital while Nestlé enables quality products to be delivered to the retailers, helping them to offer a wider range of quality products and attract more customers.

Since launching the solution, Standard Bank has been able to onboard more than 20 merchants per week per branch with minimal back-office staff. More than 70% of retailers who were onboarded were eligible for credit after the initial 30-day period, and over 80% of those retail merchants who used credit once went on to become repeat borrowers. This credit has funded between 60%- 80% of retailers’ trading volumes. 

Vahid Monadjem, CEO and Founder of Nomanini, says, “Access to finance has been a major obstacle for MSMEs in Africa. Trader Assist connects the informal retail ecosystem by integrating payments, working capital, and data analytics to help ensure small retailers continue to thrive.”

Retailers who access working capital credit have an approximately 30% higher activity rate than those who do not. Alex Chalwe, the owner of Edua Grocery in Lusaka, Zambia, shares that prior to the arrival of Trader Assist, things were tough. “We couldn’t stock up adequately and we only carried a few goods. From the time Trader Assist came, the number of products we stock has gone up.”

Proprietor of Freshways Grocery, Moses Lungu, adds that he was struggling to balance his stock, but now he is able to split the capital on different products. “As I sell the products, I’m able to get other things even while I’m preparing to repay the advance.”  

Trader Assist proved particularly helpful to retailers during the COVID-19 pandemic. Esther Mpamba, owner of Lusaka-based CTV Grocery, says, “When COVID-19 came, a lot of businesses were affected. Many goods from abroad were not entering the country because of the lockdown. Although I was affected by the pandemic, I was still able to order goods and Nestlé was able to deliver their products to me. Trader Assist grew my capital, which enabled me to buy more products.”

John Ashley, Chief Financial Officer at Nestle East and Southern Africa Region, concludes by saying, “Informal retailers require a holistic solution that leverages technology and partnership to enable and sustain their business growth in the long term. With the Trader Assist programme, we aim to support 10,000 traders in growing sustainable businesses in Zambia. We plan to expand our partnership across eastern and southern Africa thereafter.”

About Nomanini

Nomanini provides informal retailers with the tools to improve their businesses by combining new digital financial services with existing distribution networks. Our platform connects the informal retail ecosystem around Micro, Small and Medium Enterprises (MSMEs), including financial service providers, distributors and manufacturers by integrating payments, working capital, and data analytics to unlock the latent potential of Africa’s economy. For more information, visit:

About Nestlé 

Nestlé is the world’s largest food and beverage company. It is present in 187 countries around the world, and its 291,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality for everyone, today and for generations to come.  Nestlé offers a wide portfolio of products and services for people and their pets throughout their lives. Its more than 2,000 brands range from global icons like Nescafé or Nespresso to local favourites like Ninho*. Company performance is driven by its Nutrition, Health and Wellness strategy. Nestlé is based in the Swiss town of Vevey where it was founded more than 150 years ago. For more information, visit:

About Standard Bank

Standard Bank Group is a financial institution that offers banking and financial services to individuals, businesses, institutions and corporations in Africa and abroad. It is Africa's biggest lender by assets. Standard Bank is acknowledged for its deep understanding of the continent, its performance during the COVID-19 pandemic and initiatives underway in the markets in which it operates. It was named as South Africa’s best bank in Global Finance’s 2021 World’s Best Banks Awards. For more information, visit:

About Nomanini

Nomanini is a pioneering fintech that connects merchants, distributors and service providers to overcome fragmentation, optimise digital distribution, and scale Africa’s informal retail ecosystem by combining new digital financial services with existing distribution networks.

Nomanini was founded in 2010 and is headquartered in South Africa.

Contact details

Related publications

Receive Nomanini news on your RSS reader.

Or subscribe through Atom URL manually