This archive report was first published on 18 July 2019.
Is Safaricom's Masoko Ready for African Expansion? ¶
By the end of 2020, Safaricom plans to expand its e-commerce proposition, Masoko, to other African countries. This announcement was made by Sitoyo Lopokoiyit, Chief Financial Services Officer, Safaricom, who stated, 'We see endless possibilities for business beyond borders. We are currently reviewing Masoko to ensure that we are positioned ready to take off.'
However, some critics argue that Masoko is still in its infancy, having launched in November 2017 and only recently gaining traction. In November 2018, Safaricom admitted that Masoko had failed to take off as planned, but a renewed approach was announced in the Full Year 2019 Results.
According to UNCTAD Secretary-General Mukhisa Kituyi, 'Africa trails behind the rest of the world in its preparedness to engage in and benefit from the digital economy. Three-quarters of the African population have yet to start using the Internet.'
Safaricom's decision to expand outside Kenya is based on the expected growth of smartphones in the region, estimated to hit over 525 million users by the end of next year. However, some question whether the current product is good enough or competitive enough outside Kenya.
As a user of Masoko and a friend of merchants on the platform, the author believes that Safaricom should first master the local market before expanding beyond Kenya. The author suggests that Masoko needs a redesign, especially for mobile, more meaningful partnerships with local and international brands, data-free browsing for Safaricom customers, and a rethink of delivery aspects.
The author concludes that Safaricom can and should eventually push Masoko beyond Kenya, but that should not be a priority now. Instead, the company should focus on solving the challenges it currently has and becoming a master locally.
Some of the proposed local partnerships include shops, supermarkets, and M-Pesa agents' stores being pick-up points. The author wants to see Safaricom's ambition to bring the market to small businesses in Kenya and give them access to opportunities presented by the rapid growth of e-commerce across the globe.
What are your thoughts on Masoko's planned expansion? Do you use Masoko? Do you believe Safaricom is doing everything well? Should Masoko.com be data-free while on the Safaricom network?
