DURBAN - It is estimated that the spaza shop market in South Africa is valued at around R40 billion per year and that 90 percent or more of the transactions are in cash.
South Africa’s informal market is characterised by unbanked spaza owners with limited or no access to better financial products. This makes it difficult for them to deal with FMCG companies who generally do not open lines of credit with smaller retailers that order in small quantities.
It was this mismatch which allowed a local fintech, Invoiceworx (now Zande Africa) to offer an innovative financial and distribution platform that provides trade and merchant finance to spaza shops.
Zande was founded by Siya Ntutela and Mdu Thabethe to help spaza shops access crucial finance in 2017. Ntutela is the Chief Executive of the fintech and Thabethe is the COO.
Ntutela said, "One of the primary reasons South African spaza shop owners don’t succeed is a lack of finance and broken supply chains".