Technoserve Welcomes Moody’s Corporation in New Partnership to Empower Entrepreneurs in the Informal Settlements of Nairobi
1,000 entrepreneurial Duka owners (50 percent of whom are women) in Kenya set to be
Nairobi — TechnoServe has announced a new partnership with Moody’s to empower entrepreneurs in the informal settlements of Nairobi by helping them increase the profitability of their small retail shops. The one-year project supported by the Moody’s Foundation will train 1,000 entrepreneurial duka owners (50 percent of them women) in Kenya on business and financial-management skills. The initiative will help to expand a model that TechnoServe has successfully implemented with several partners.
“Mom and Pop” shops (known locally as dukas) supply some 80 percent of consumer goods, mostly to low-income communities in Kenya. They provide a vital service that larger retailers and wholesalers cannot, as the market is fragmented with high transaction costs. Dukas face their own obstacles to growth, however. These retailers are mostly informal and operate on a cash basis. Restocking generally requires the owner to travel to a supplier—often a large retailer—with cash in order to make the purchase. This is expensive and time consuming, and results in periods of closure, limited inventory, stock depletion and ultimately relatively high prices for purchasers and low incomes for the store keepers.
Overcoming these obstacles through shop management processes, accounting, marketing, financing and technology presents an opportunity to unleash a wave of growth that would benefit low-income families with a wider range of goods at more affordable prices. The Smart Duka project will include two cohorts (500 each) and will have an approximately two-month mobilization phase and a three-month training phase. The training received will increase profits by more than 30 percent and help more than one-third of the shops access finance from various lending institutions.
Working with the Citi Foundation, MasterCard Center for Inclusive Growth, and elea Foundation, TechnoServe has demonstrated that supporting micro-retailers can be highly impactful. Since launching the Smart Duka Initiative in 2016, the project has reached over 5,300 shop owners (60 percent female). Shops are reporting a 30 percent increase in profits. So far, the initiative has also helped shops access over $190,000 in credit. Smart Duka has also explored practical digital solutions that will enable Nairobi’s shopkeepers to manage inventory efficiently and make mobile payments.
“Micro retailers play a critical role in their communities, providing income to thousands of micro entrepreneurs and making everyday products accessible to low-income communities. They hold the potential to improve hundreds of thousands of lives, but with limited business skills they struggle to make profits. This project will provide targeted support, which will enable the micro retailers to reduce their costs, increase profits and drive economic growth in their communities” – Alice Waweru, Regional Program Manager.
“Moody’s believes that long term social and economic growth prospects are heavily dependent on the success of micro and small enterprises in untapped communities. By partnering with TechnoServe we help to provide individual micro entrepreneurs with the skills to build and grow sustainable businesses in today’s environment. An exciting insight for me is the multiplier effect of this program due to these entrepreneurs taking initiative to share the knowledge they gain with similar businesses and their communities.”– Sylvia Chahonyo, Head Relationship Management Africa
TechnoServe works with enterprising people in the developing world to build competitive farms, businesses and industries. Operating in 29 countries, we help grow strong markets that create income and jobs in developing communities. By linking people to information, capital and markets, we have helped millions to create lasting prosperity for their families and communities. With 50 years of proven results, TechnoServe believes in the power of enterprise to transform lives.
Moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corporation (NYSE: MCO) is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The Corporation, which reported revenue of $4.4 billion in 2018, employs approximately 13,100 people worldwide and maintains a presence in 42 countries. Further information is available at www.moodys.com.
Moody’s believes in a world where more people have access to opportunity, and where everyone has what they need to grow and thrive. We are committed to opening the door to a better future through our global corporate social responsibility programs empowering people around the world with the knowledge, resources and confidence they need to succeed. For more information visit moodys.com/csr.