{"id":921,"date":"2021-10-26T05:46:18","date_gmt":"2021-10-26T05:46:18","guid":{"rendered":"https:\/\/www.jobtechalliance.com\/?p=921"},"modified":"2024-03-18T06:36:37","modified_gmt":"2024-03-18T06:36:37","slug":"jobtech-in-africa-its-all-about-the-value-chains","status":"publish","type":"post","link":"https:\/\/stage.jobtechalliance.com\/index.php\/2021\/10\/26\/jobtech-in-africa-its-all-about-the-value-chains\/","title":{"rendered":"Jobtech in Africa: it\u2019s all about the value chains"},"content":{"rendered":"\n[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” admin_label=”Blog” _builder_version=”4.18.0″ background_color=”#f6f8fa” custom_margin=”0px||0px||true|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|phone” custom_padding=”0px||0px||true|false” custom_padding_tablet=”||100px||false|false” custom_padding_phone=”100px||100px||false|false” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][et_pb_row _builder_version=”4.16″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

By Chris Maclay<\/a><\/span><\/p>\n


I was recently listening to African Tech Roundup\u2019s <\/span>Unajua podcast<\/span><\/a>, where Nigerian analyst and researcher, Derin Adebayo, did a fantastic job of simply breaking down the evolution of African e-commerce and digital marketplaces. In this article, we\u2019ll present his framing, and explain what it might mean for jobtech on the continent.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”Montserrat|800|||||||” text_text_color=”#000000″ text_font_size=”20px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

African Digital Marketplaces 1.0<\/strong><\/p>[\/et_pb_text][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

In the podcast, Derin used the example of entrepreneur Etop Ikpe\u2019s two generations of vehicle marketplaces in South Africa: Cars45 and then Autocheck.<\/span><\/p>\n

Cars45, as most first generation marketplaces, simply moved an offline transaction online. As Derin says: \u201cYou buy a car. You sell a car.\u201d Simple.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/jobtechalliance.com\/wp-content\/uploads\/2021\/10\/Untitled-presentation-1.jpg” title_text=”Untitled presentation (1)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Not so simple. Cars45, as many of the first generation of African marketplaces, struggled. Buyers lacked funds to buy cars – financing was needed. But there were few suitable car financers in the market, as it was difficult to finance such an asset without adequate aftersales car. As Derin explained: \u201cIf the industry offline has challenges in the value chain, then you can\u2019t just layer a digital product on top of that and expect it to scale.\u201d<\/span><\/p>[\/et_pb_text][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”Montserrat|800|||||||” text_text_color=”#000000″ text_font_size=”20px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

African Digital Marketplaces 2.0<\/strong><\/p>[\/et_pb_text][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Let\u2019s compare Cars45 to Autocheck:<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/jobtechalliance.com\/wp-content\/uploads\/2021\/10\/Untitled-presentation-2.jpg” title_text=”Untitled presentation (2)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Ikpe\u2019s second iteration recognised the value chain challenges, and sought to build a response to those challenges within the product. \u201cWhile the goal is to sell a car online, [Ikpe] has to go back and build financing capability, build insurance, and build a network of aftersales support.\u201d The logic behind this is relatively clear:<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/jobtechalliance.com\/wp-content\/uploads\/2021\/10\/Untitled-presentation-3.jpg” title_text=”Untitled presentation (3)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” custom_padding=”27px|||||” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”Montserrat|800|||||||” text_text_color=”#000000″ text_font_size=”20px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Jobtech Value Chains<\/strong><\/p>[\/et_pb_text][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

In the jobtech space, the first generation of jobboards and gigmatching platforms tended to take a similar model to Cars45: You post a vacancy. You apply for a job. Simple.<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/jobtechalliance.com\/wp-content\/uploads\/2021\/10\/Untitled-presentation-10.jpg” title_text=”Untitled presentation (10)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Of course, not so simple. As we\u2019ve covered elsewhere<\/a>, few African jobtech marketplaces focused on a \u2018lead generation\u2019 have developed viable and scalable business models. This is largely because there are many challenges in the value chain: low skills of jobseekers, inability of workers to pass interviews or possess the right tools, lack of trust in employers, among others. As with the used car marketplace, this brings a range of potential areas within the value chain for strengthening:<\/span><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_image src=”https:\/\/jobtechalliance.com\/wp-content\/uploads\/2021\/10\/Untitled-presentation-11.jpg” title_text=”Untitled presentation (11)” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text module_class=”custom” _builder_version=”4.16″ text_font=”||||||||” text_font_size=”16px” text_line_height=”2em” header_font=”||||||||” header_2_font=”Montserrat|800|||||||” header_2_font_size=”30px” header_2_line_height=”1.5em” header_3_font=”||||||||” header_4_font=”||||||||” max_width_tablet=”700px” max_width_phone=”700px” max_width_last_edited=”off|desktop” custom_margin=”|||” custom_margin_tablet=”|0px||” custom_margin_phone=”|0px||” custom_margin_last_edited=”off|desktop” custom_padding=”0px||||false|false” header_2_font_size_tablet=”30px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” border_color_all=”#12eaa6″ border_color_top=”#c8102e” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]

Why might job- and gigmatching start-ups need to pursue the above? For two reasons:<\/span><\/p>\n

    \n
  1. They simply cannot run a viable product\/services without doing so<\/span><\/li>\n
  2. Each of these points in the value chain provide the opportunity for <\/span>gaining value<\/span><\/i>; they are opportunities to earn revenue beyond the often thin margins for facilitating a match itself.<\/span><\/li>\n<\/ol>\n

    While jobtech marketplaces may seek to build out their own value chains, some jobtech start-ups may see opportunities in just targeting specific points in the value chain (beyond the core transaction of the sale of a service). In future episodes, we will showcase start-ups doing both of these.<\/span><\/p>\n

    The author is Director of Youth Employment at Mercy Corps. You can read more about their work with jobtech here<\/a>.<\/em><\/p>\n

     <\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"

    By Chris Maclay I was recently listening to African Tech Roundup\u2019s Unajua podcast, where Nigerian analyst and researcher, Derin Adebayo, did a fantastic job of simply breaking down the evolution of African e-commerce and digital marketplaces. In this article, we\u2019ll present his framing, and explain what it might mean for jobtech on the continent.African Digital […]<\/p>\n","protected":false},"author":2,"featured_media":252193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"1080","footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/posts\/921"}],"collection":[{"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/comments?post=921"}],"version-history":[{"count":1,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/posts\/921\/revisions"}],"predecessor-version":[{"id":252201,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/posts\/921\/revisions\/252201"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/media\/252193"}],"wp:attachment":[{"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/media?parent=921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/categories?post=921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jobtechalliance.com\/index.php\/wp-json\/wp\/v2\/tags?post=921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}