Senegal’s corner shops go digital to track trade

Senegalese restaurant owner and Weebi user Marieme Assi Diagne, poses with a digital tablet at her office in Dakar. Although just 40 users so far have the app, which is a standalone download or can be bought for 118,000 FCFA ($200) preloaded onto a tablet, 300 clients have shown an interest in the product in the Dakar area. (AFP) AFP
Updated 18 June 2017
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Senegal’s corner shops go digital to track trade

DAKAR: Corner shops, markets and street traders are still the traditional way most Senegalese do their shopping, but micro-businesses are turning to digital means of tracking clients in the West African nation’s informal economy.
Amadou Bawol Bah, like many owners of the corner “boutiques” in Senegal, used to have a large ledger he filled in each day with purchases and credit offered to his customers.
“One day, I was filling in some details and some cooking oil tipped onto the ledger,” he recalled of the moment in 2015 that wiped out years of careful bookkeeping.
Bawol Bah’s disaster became the inspiration for a locally-designed app called “Weebi,” meaning “easy” in the local Pulaar language and the trader has not looked back since downloading it.
“Weebi simplifies sales and my invoices. The tablet and smartphone replaces the notebook and pen,” explained Weebi’s co-founder Cheikh Sene, who began his startup with two other Senegalese and a Frenchman. A micro-printer for receipts completes the mix, Sene added.
Around half of Senegal’s registered businesses are one-man traders like Bawol Bah, according to government statistics, and operate at thin margins with clients often reliant on credit paid back at the end of the month.
In the case of accidents like Bawol Bah’s, the app comes with confidential backup for each user, according to Weebi, so data remains safe in case of loss or damage to a device.
After winning a prize for digital innovation at the Africa-France summit held in Bamako in January, Weebi’s ambitions are growing in the capital.
Although just 40 users so far have the app, which is a standalone download or can be bought for 118,000 FCFA ($200) preloaded onto a tablet, 300 clients have shown an interest in the product in the Dakar area.
Marieme Assietou Diagne, who manages a health food delivery business, said she has gained “more free time and better sales” since using the software.
“It helps us to follow clients — who are the regulars, the number of orders and how many meals we are selling per day,” she told AFP. “We can reward loyal customers at the end of the month.”
Other small business owners have begun using “Somtou,” a console launched in May with an interface specifically designed for Senegal’s majority illiterate population that works with icons and voice commands.
The upstart costs of buying a laptop and the electricity required to run it all day are prohibitive for most and training in accountancy programs or software such as Microsoft Excel hard to come by without paying for classes. With sturdy casing and bright graphics, Somtou is aimed squarely at market traders and small businesses, said its Cameroonian creator Ted Boulou.
“It allows those in the informal sector to manage their work more effectively, and gives them more precise estimates of income, revenue and clients,” Boulou said.
That can empower them to better bargain wholesale costs and promotions, making businesses more effective, he added, while filing of tax returns and other government documents became simpler and more accurate.
Pricing is also flexible for clients without much upfront cash.
“Some will pay 13,000 FCFA ($22) per month for two years, or 500 FCFA (85 US cents) a day for two years,” Boulou explained, as the single payment of 275,000 FCFA was prohibitive for many — and he has taken 100 orders.


All-American banker heads back to the Kingdom

Updated 21 April 2018
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All-American banker heads back to the Kingdom

  • "The implementation and execution of Vision 2030 will produce global companies for Saudi Arabia, and we can help in that process," said Citigroup CEO
  • "The government has a lot on its plate and privatization takes a long time to set up. Privatization is one of those things that you only want to do once,”

If anybody deserves the description “all-American”, it is surely Mike Corbat, chief executive officer of Citigroup.

New England origins, a Harvard education, Ivy League American footballer and a Wall Street career are all evidence of the fact he was very definitely “born in the USA”, as is the in-bank nickname of “Clark Kent” — the alter-ego of Superman — due to his athletic physique and spectacles.

But last week Corbat was turning his mind away from the USA and toward Saudi Arabia, as the bank formally ended a 14-year self-imposed exile from the Kingdom with a ceremony at its new offices in Riyadh, symbolizing its return to the lucrative markets it first entered in the 1950s, among the first American banks to do business in the region.

Corbat took some time out of the day’s celebrations — a formal ribbon-cutting alongside Ibrahim Al Omar, governor of the Saudi Arabian General Investment Authority, and an elite dinner in the ballroom of the Four Seasons Hotel in Kingdom Tower — to talk exclusively to Arab News about Citi’s plans for the Saudi business at a time of rapid transformation in the Kingdom and the region.

“I am absolutely positive about the economic prospects for this region. We are in 13 countries here, with 2,500 employees, focusing on trade and business, with some consumer presence. The implementation and execution of Vision 2030 will produce global companies for Saudi Arabia, and we can help in that process. Citi can service some of their needs as they expand globally,” he said.

Citi withdrew from Saudi Arabia in 2004 in the aftermath of the 9/11 terrorist attacks in the USA, in a decision later described by executives as “a mistake.” Even before the enormous opportunities of Vision 2030 persuaded the bank it had to have a formal presence again in the Kingdom, and a license from the Capital Markets Authority (CMA) to pursue investment banking and other business there, the bank was back on the scene.

In 2015 it helped Saudi Aramco to raise multi-billion dollar loans, and advised the oil giant on Asian deals. The following year, which saw the formal unveiling of Vision 2030, Citi was involved in the groundbreaking $17.5 billion bond issue that marked the Kingdom’s debut on global capital markets.

Citi was back, but needed a CMA license to win more lucrative business in the big domestic economic transformation under way. That was finally granted in April of last year, and Carmen Haddad, a long serving Citi executive with extensive experience of the Middle East, was made head of the new Saudi operation.

“We’ve been at the front and center of the sovereign bonds drive Saudi has been doing for the past couple of years, and also with syndicated loans. But with the CMA license we can really show our worth. We can help with all future debt and equity transactions,” Corbat said.

Vision 2030 aims to reduce the Kingdom’s dependence on oil, but also to increase the contribution of the private sector to the national economy, and this is one area where Citi feels it can use its global experience. The bank has advised governments around the world on privatization strategies, and Saudi has a privatization schedule that ranks among the largest in history.

The timing and scale of the program is still unclear. Last year minsters put a value of $200bn on the program, but officials in Riyadh last week were talking more in the $60bn to $70bn range. And investors are still waiting for the first big sell-off of a state company. But Corbat insisted Citi would be ready to get involved when the time is right.

“Privatization is obviously a top priority of the Vision 2030 strategy, and we can bring our expertise to bear in this. I think it is right to take your time over something as significant as the privatization program. The government has a lot on its plate and privatization takes a long time to set up. Privatization is one of those things that you only want to do once,” he said.

By far the biggest element of the drive toward a more private sector-focused economy is the plan to sell shares in the Kingdom’s “jewel in the crown”, Saudi Aramco. Citi is among a small group of top global banks vying for business in the Aramco sell-off.

Originally planned as a big international initial public offering (IPO) by the end of this year, valuing the company at $2 trillion, doubts have begin to creep in over the valuation figure, and over the venue for what promises to be the biggest IPO in history. One suggestion is that Aramco will go only for a listing on the Tadawul exchange in Riyadh.

“I don’t know the timing of the IPO. Maybe they [the Saudi authorities] will want to start locally, in which case they have to be sure the capacity and liquidity are there,” Corbat said.

He believes that recent improvements to the market infrastructure in Saudi Arabia — which look set to see the country included in index provider MSCI’s widely-tracked Emerging Markets index from as early as next year — could make an “exclusive” IPO on Tadawul more attractive.

“The MSCI upgrade to emerging markets status will create more liquidity, and foreign investors will have to play their role,” he said.

“All the big reforms that have taken place on the Riyadh market recently have certainly made it a friendlier place for foreign investors. The CMA has been through more change than ever, and it’s a better place for that. The CMA over the past two years has proven to be progressive and consultative,” he added.

Citi found itself indirectly involved in the big anti-corruption campaign of last year, when their long-term partner and shareholder, Price Alwaleed Bin Talal, was among the businessmen detained in the Ritz Carlton hotel in Riyadh.

Corbat is reluctant to comment on the Kingdom’s internal affairs, though he did say that foreign direct investment would not be hit by the anti-graft drive. “I don’t think FDI has been or will be affected negatively by the anti-corruption campaign. Saudi Arabia is already the biggest economy in the region with only limited foreign investment. Imagine how far it could go with more,” he said.

On Alwaleed, he said: “He has been a shareholder since the early 1990s, and he has been a great shareholder, a loyal voice of support and reassurance. We’ve been fortunate to be able to count him as one of our shareholders. In all our dealings with him I’ve found him to be straightforward and transparent.”

Corbat was one of the top American executives who met with Saudi officials on the recent royal visit to the USA, intended in part to counter any adverse investor sentiment from the anti-corruption arrests, and was impressed by what he saw.

“The visit to the USA by the Crown Prince was extremely well received. The whole Saudi delegation impressed us with their drive and commitment to the transformation process. It was a very successful exercise for Saudi Arabia,” he said.

With 35 years at Citi under his belt, including responsibly for unwinding Citi’s “toxic” assets after the financial crisis, and wide ranging experience of the bank’s international operations, he is well placed to gauge global geo-politcal risk.

He sees some threat to the world financial system from the end of quantitative easing, which he called a “renormalization of the global economy”, and a more limited challenge to world economies from possible “trade wars” between the USA and China.

“I think it’s fair to say that if we did have a serious trade war, it would have an effect. But it would not be the end of trade. I think it’s more likely to redraw the trade lines of the world. Trade flows would move away from the big blocks and go through other areas, like Africa and other places for example,” he said.

On regional risks, always a factor in business and financial decisions in the Middle East, he said: “I think they are within acceptable limits and I don’t think they will go beyond that. The region is the leading center for oil and gas so what happens here has global implications,” he said, though with the caveat that the effects of a prolonged trade was on the “bookend” economies of the USA and China could have a negative impact on global commodity prices.

All-American Corbat may be, but Citi’s return to the Kingdom will just not be an exercise in stuffing US executives into the top jobs in Riyadh. The firm is committed to achieving 85 percent Saudi employment levels at its new office, and is already well on the way to achieving that.

“The market for talent in Saudi Arabia is extremely competitive, but we think we have a very strong appeal for candidates. We are very proud of our ability to invest in and train, and to improve home grown talent,” Corbat said.