Tech-enabled startups in Africa are revolutionizing the informal retail sector by offering innovative solutions to traditional challenges. Boston Consulting Group reports that over 70% of food, beverage, and personal care products in Africa are provided by local informal shops, but they face frequent stockouts, limited access to capital, and difficulty receiving goods from suppliers. Wasoko's CTO, Tridiv Vasavada, predicts three key trends for the industry in 2023. Firstly, smartphone and app adoption, already widespread in urban areas of Kenya, Côte d’Ivoire, and Tanzania, will likely spread to other cities and rural areas, potentially transforming Africa’s $850bn informal retail space. Secondly, more informal retailers will expand their businesses with the growing availability of credit from fintech platforms, creating an emerging class of market leaders. Lastly, logistics networks will evolve to keep up with the demands of expanding businesses. Digital platforms and wholesalers are expected to compete to offer more standardized and efficient delivery services. The increased competition should benefit local shop owners, and consolidation of the industry is expected in the coming year.

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