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Two of Africa’s B2B e-commerce pioneers confirm their expected merger

By our African Marketing Confederation News Team | 2024

Unification of Wasoko and MaxAB builds on growing trade ties between North and East Africa, serving informal retailers in five countries.

Two of Africa’s pioneer B2B e-commerce businesses, Wasoko from Kenya and MaxAB from Egypt, have completed a much-anticipated merger that they say will make them the continent’s largest player in the sector.

Co-CEOs Daniel Yu and Belal El-Megharbel. Photo: Supplied

The new company, which is yet to be named, serves the large informal retail sector (mom-and-pop stores) and intends to focus on five countries: Kenya, Tanzania, Rwanda, Egypt and Morocco. 

 

According to statement released by the new venture, this will give them access to a combined network of 450,000 informal retailers who serve around 65-million consumers. However, a report by the online technology publication Tech Crunch claims that probably only around 200,000 of these small merchants are currently active. 

 

Both Wasoko and MaxAB started out as traditional B2B e-commerce platforms, essentially simplifying and digitising the supply chain between major good manufacturers/suppliers and street-level merchants.  

 

Subsequently, they have grown their offering to include e-payments, credit financing and other digital services to the informal sector. The statement calls this a transformation “into a multi-vertical ecosystem”. 

 

Integration completed within 60 days 

 

“Following detailed diligence and planning, Wasoko and MaxAB successfully integrated the tech stacks and operations of both companies in under 60 days,” the new merged entity says in its statement. 

 

“The combined company’s retailer network and offerings have enabled the launch of new business units beyond e-commerce and the development of AI systems powering pricing, product selection, demand prediction and route optimisation through an archive of high-quality, localised data stemming from millions of transactions across its individual markets.  

 

“Independent business units now handle fintech offerings including e-payments, credit financing and digital services top-ups in addition to e-commerce through a unified app with extensive services for African informal retailers.” 

 

The combined company has over 4,000 employees and will be led by Daniel Yu, CEO of Wasoko, and Belal El-Megharbel, CEO of MaxAB. They will serve as Co-CEOs and company board directors alongside existing Wasoko and MaxAB investors. The two companies have attracted several international and African-based investors. 

 

Says Yu: “Building on burgeoning trade ties between North and East Africa, this deal unifies the leading B2B players in both regions, establishing an unmatched platform for serving communities across the continent.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.