Lipa Later Signs MoU With Mombasa County Gvt To Support SMEs
Lipa Later Kenya is a leading fintech platform that empowers SMEs and consumers to Buy Now Pay Later (BNPL) for essential products and services and also provides a digital marketplace that allows merchants and SMEs to sell their goods online and easily access credit to support their growth.
Lipa Later has today signed a Memorandum of Understanding (MOU) with the County Government of Mombasa to power digitization and supercharge growth for SMEs across the county.
In today’s rapidly evolving business landscape, digitization has become a crucial aspect for small and medium-sized enterprises (SMEs) to stay competitive and reach new customers. This new initiative is aimed at helping SMEs take advantage of digital technologies to grow their businesses.
Lipa Later will provide a range of tools and services to support digitization, including easy-to-use e-commerce solutions through their ecommerce platform, Sky. Garden and access to Lipa Later’s Buy Now Pay Later option, which provides easy and seamless access to credit for both consumers and merchants. Consumers can now apply for credit directly through Lipa Later’s Buy Now, Pay Later platform, making it easier to access credit when they need it. Meanwhile, merchants will get access to a free online platform to advertise their products to millions of consumers and they can easily apply for funding to invest in their businesses and purchase inventory. This partnership aims to create a more efficient and inclusive financial system, boosting the local economy, consumer purchasing power and promoting economic development.
The goal of this partnership is to empower SMEs and individuals with the tools and resources they need to succeed in today’s digital economy.
Through the MOU, Lipa Later and Mombasa County Government will provide SMEs with training and support services to help them grow their businesses. This includes access to financial literacy training, business management training, and mentorship programs.
The MOU also provides for the establishment of a task force to oversee the implementation of the program and to provide feedback on its progress. The task force is scheduled to convene its first session on Tuesday 14th February 2022 to lay the foundation on how SMEs can be onboarded to Lipa Later’s digitized online platforms and access a market of hundreds of thousands of consumers, and how SMEs will easily access credit to support their growth.
Lipa Later Group CEO, Eric Muli, said, “We are thrilled to partner with the Mombasa County Government to support SMEs and consumers in the county. MSMEs are the backbone of African commerce, contributing 38% of Africa’s GDP, and employing 70% of the region’s population. However, they encounter friction at various points in their value chain, which hampers their scalability and revenue potential. Key friction points include: Limited access to credit options due to minimal credit scoring data for both themselves and their customers, limited access to formal marketplaces which mostly focus on large and established brands i.e. modern trade and limited access to affordable tools to help digitize their business processes; and those with access often have to juggle between multiple platforms that rarely offer localised solutions.”
“Our first goal with the Inua Biashara Initiative is supporting the digitization of businesses and enabling them to access a ready and available online marketing across the country. Our second goal will be to make finance easily accessible for businesses and consumers, and our third goal will be to make devices easily accessible for consumers enabling them to easily access the internet. This partnership will be transformative for businesses and consumers across the county. We are lowering the barrier to entry for SMEs and consumers to e-commerce and access to credit. This will be a game changer.” – Eric Added.
Mombasa County Governor,Hon. Nassir, Abdullswamad Sheriff, stated, “There are a number of challenges facing the SMEs sector and consumers in the county ranging from lack of in-adequate market infrastructure,poor logistics infrastructure, inefficient payment systems/infrastructure, lack of trust and a varied competitive landscape. This partnership reaffirms our commitment to supporting SMEs and consumers in Mombasa and ensuring they have access to the financial resources they need to grow and succeed.”
“Helping SMEs adopt new technology to sell online and attract financing will enable them to reach new customers, drive sales and position themselves for the future. This will boost productivity, consumer purchasing power and help create jobs and prosperity across the county” – He Added.
The MOU will be in effect for three years, with the option for renewal. It is expected to have a significant impact on the growth and development of SMEs in Mombasa and will serve as a model for other counties in Kenya.