Boost Ghana and KudiGo are the first digital commerce companies to be supported by the Catalyst Fund Inclusive Digital Commerce Accelerator in Ghana. The accelerator program is managed by BFA Global, the Mastercard Foundation COVID-19 Recovery and Resilience Program and the Meltwater Entrepreneurial School of Technology (MEST).
Boost Ghana and KudiGo are helping grow small retailers by easing business administration, digitizing operations, improving access to working capital and reducing the cost of doing business.
The two companies will receive up to Ksh. 13 million ($120,000) in capital funding, along with the following benefits.
- Deep, bespoke, expert-led venture acceleration support.
- Connections with Catalyst Fund’s growing global Circle of Investors and Circle of Corporate Innovators.
- In-market expertise from MEST.
“MSEs are the backbone of Ghana’s economy, representing about 80% of the MSME sector and employing over 50% of Ghanaians (MOTI 2019). Within the MSE sector, informal work is predominant and contributes to 90% of employment,” said Jane del Ser, Program Director for the Catalyst Fund Inclusive Digital Commerce Accelerator.
Since launching the program in November 2020, Catalyst Fund conducted research on MSEs in urban and peri-urban retail shops around Accra. The research found that 100% of shop owners have smartphones, and more than half already market their businesses via social media. However, only 20% buy inputs online, and 80% purchase inventory in-person, at markets or at a store. This leads to costly transportation expenses, and it means MSEs cannot guarantee the availability of supplies or price stability enjoyed by larger retailers.
Boost Ghana is tackling this problem by enabling underserved small businesses in Ghana to order stock digitally at the best wholesale prices, and receive efficient, same-day deliveries. For suppliers, they provide direct access to last-mile retail customers at scale, providing critical data and reducing the cost of distribution.
KudiGo provides a holistic retail management solution for small business owners, enabling businesses to build a digital footprint and access financial services easily.
In addition to working with Boost and KudiGo, the Catalyst Fund team aims to grow the wider digital commerce ecosystem, by partnering with corporate innovators and investors who can help these companies scale. This is in an effort to create a more enabling investment and business environment.
“Digitizing MSEs is critical to growing the informal sector and unlocking their potential to scale up and be at the forefront of Ghana’s economic recovery. Leveraging the collective capacity of local digital commerce companies to lead this effort is definitely a step in the right direction,” said Nathalie Akon Gabala, Mastercard Foundation’s Regional Director for West, Central and Northern Africa.
The Catalyst Fund recently released an investment brief containing three areas of opportunity for inclusive digital commerce innovation in the Ghanaian market.