Nigerian start-ups are digitizing the local food supply chain, helping both traders navigate high food costs and farmers sell their produce. Two such firms, Vendease and Sabi, which were formed last year. They have created digital marketplaces allowing wholesalers, shopkeepers, restaurateurs and hotels to buy directly from farms and manufacturers.
As inflation has been in the double digits in Nigeria since 2016, price increases peaked in March due to Covid disruptions, currency devaluations and security issues in food producing regions.
The start-ups work with producers by offering credit to farms help them grow, signing supply deals, collecting produce and selling it at a specific rate to the buyers - making money on the interest and through commission of around 1%-5%.
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