Digital distribution platform, Kyosk has ventured into African fresh produce market following the recent acquisition of KwikBasket.
Kyosk Digital Services has been specializing in online retail distribution while KwikBasket has been on the agricultural distribution business.
The company aims to transform the distribution and accessibility of goods and services in Africa through connecting businesses, consumers, and suppliers.
According to Co-Founder and CEO of Kyosk Digital Services Raphael Afaedor, the launch of Farm & Fresh, Kyosk combines its digital-first approach and large-scale operations with KwikBasket’s agricultural expertise to transform the African fresh produce market, creating a more efficient and inclusive ecosystem.
“This acquisition marks a major milestone for Kyosk as we broaden our footprint in the fresh produce market in Africa and enhance our offering to cater to the needs of farmers, retailers, kitchens, eateries, and other consumers,” said Afaedor.
The CEO added that the model will unlock the full potential of farming in Africa and create a fair and efficient marketplace that benefits all stakeholders in the food chain.
In many regions on the African continent, farmers face numerous challenges due to fragmented and inefficient distribution chains for agricultural produce.
Farmers often struggle to reach end-consumers, leading to significant production losses, low income, wastage, and high food prices.
“This expansion presents a unique opportunity for Kyosk to leverage its digital-first and data-led distribution platform to revolutionise the way fresh produce is sourced, distributed, and enjoyed in Africa.”
Additionally, Kyosk Fresh will cater to the needs of restaurants, eateries, and other customers by providing a consistent supply of a wide variety of high-quality products. Kitchens and eateries often face several challenges due to long lead times in the supply chain.
As part of the launch of the Farm & Fresh line of business, the uLima digital platform will be rebranded to Kyosk Farm. uLima was a platform that provided farmers with quality inputs, localised market information, and market linkage.
Kyosk Farm will now build upon the foundation of uLima, leveraging its existing features and functionality while enhancing the overall user experience.
For farmers, Kyosk Farm will offer improved yields by providing access to information, insights, and agri-inputs, such as fertilisers, and financing.
It will enable farmers to connect with consistent market access and fair pricing, ensuring sustainable income and growth opportunities for their businesses.
The African retail market is valued at approximately $600 billion and is projected to grow at a rate of 5% to 6% annually.
Kyosk focuses on serving small retail outlets and traditional retailers, which account for over 60 per cent of retail trade in Africa.
These retailers are primarily located in low-income, informal urban communities and have historically been inadequately served.
They face high transportation costs and have difficulty accessing manufacturers and distributors due to multiple layers of intermediaries. As a result, small retailers often experience frequent stockouts and lost revenue while facing limited access to credit.
