MIT Solve

Solution Overview

Solution Name:

digiduka

One-line solution summary:

Building the largest digital retail network in Africa6

Pitch your solution.

digiduka is building the largest digital retail network in Africa. This means that your local kiosk (a 'duka' is a "mom and pop" or corner store), can now provide essential digital services, to people who, either need to, or prefer to pay in cash.

Low-income consumers and informal retailers are the drivers of the 'cash economy'. They comprise up to up to 50% of the earning population and happen to feel the highest pain of transaction costs of up to 6%.

digiduka makes digital services such as utility payments, government levies, and bus tickets available to cash users at their local kiosk at little to no extra cost.

Film your elevator pitch.

What specific problem are you solving?

Low-income consumers and informal retailers are the drivers of what we like to refer to as the "cash economy". They comprise up to up to 50% of the earning population and happen to feel the highest pain of digital transaction costs that can range up to 6%.

Because cash is tight, our target customer visits various points of service up to 5x a week to just to make bill payments. They visit their local kiosks up to 7x a week for their daily needs.

This presents an opportunity for the kiosk (duka) owner to become the single touchpoint for all these services.

The informal retail trade in sub-Saharan Africa distributes 80% of consumer goods, and is worth around $700B; in Kenya the figure is $20B. The immediate opportunity for digiduka is in services that can be digitised such as prepaid tokens, airtime, and bus tickets and that opportunity is worth nearly $5B.

What is your solution?

digiduka is setting up your local kiosk to become a one-stop-shop, providing essential digital services & e-commerce to their cash users.

We provide a nationwide network of local retail locations that are setup to accept cash payments for digital services.

Through our platform, the profits that kiosk make from digital services will more than double.

The platform also helps service providers deliver digital services to last mile, cash users.

Who does your solution serve, and in what ways will the solution impact their lives?

Low income consumers and informal retailers are the drivers of what we like to refer to as the cash economyh.

They comprise up to up to 50% of the earning population, and happen to feel the highest pain of digital transaction costs that can range up to 6%.

Which dimension of the Challenge does your solution most closely address?

Enable small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology

Explain how the problem, your solution, and your solution’s target population relate to the Challenge and your selected dimension.

digiduka is building the largest digital retail network in Africa.

This means that people like Mary, a teacher living in Eastlands area of Nairobi, who either needs to, and sometimes prefers to, pay with cash can now do so at their local Duka, while still accessing essential digital services and e-commerce products.

In what city, town, or region is your solution team headquartered?

Nairobi, Kenya

What is your solution’s stage of development?

Pilot: An organization deploying a tested product, service, or business model in at least one community

Who is the primary delegate for your solution?

Roy Njoka, CEO & Co-founder