TANZANIA- Kenyan e-commerce platform Kilimall has announced plans to expand its operations into Tanzania.
Kilimall says this expansion is part of the platform’s aggressive 20-year Africa expansion plan.
This aggressive expansion plan is pegged on attracting many small and medium-sized businesses (SMEs) onto the platform. Kilimall also revealed its long-term goal is to attract a million businesses across its platform all over Africa, reaching a billion customers.
The e-commerce platform revealed that SME partnerships have been key to enabling the company’s growth over the past few years.
Dickson Ng’ang’a, Kilimall’s Senior Brand and Marketing Supervisor, said, “From last year, we started going to the larger East Africa, Starting by Tanzania and then by 2044 all over Africa. This will be a great opportunity for our sellers to ship products across the continent.”
The company also revealed plans to set up its own logistics company to handle scaled-up operations in East Africa and beyond.
Ng’ang’a added, “We plan to have our own logistics company in the future so that we can ensure rates are low and favourable to our sellers, which will contribute to products’ affordability to customers.”
According to Yvonne Maina, the company’s logistics manager, this logistics firm should be operational within the next two years.
The e-commerce platform is expected to start trials in Tanzania after the warehouse construction is complete. The warehouse’s construction is at an advanced stage.
Kilimall’s planned expansion into East Africa via Tanzania is considered a bold move despite financing and operational challenges plaguing many B2B e-commerce platforms. The sector is facing high attrition among players.
In 2024 alone, MarketForce, a major B2B e-commerce company , shut down its Rejareja platform following financing and operational challenges.
Twiga, a platform that connects retailers with farmers, was forced to make significant structural changes, including replacing its CEO and co-founder, following financing issues.
Copia, another major e-commerce player, also revealed it could lay off staff if it failed to secure additional funding.
The market reaction to the planned expansion is mixed. However, Kilimall remains hopeful the move will result in positive and proactive growth for the company.
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