The Trajectory Africa

In the previous episode of The Trajectory Africa, we explored the art and science of community lending to microbusinesses. In this episode, we turn from business lending to consumer savings, but as an antidote to a consumer lending model called buy now, pay later, or BNPL. 

BNPL emerged as a global trend in the wake of  COVID-19 and the  tough macroeconomic environment that accompanied it. As inflation increased the cost of living, people started using these short term loans issued, after a quick credit check at the point of sale, to get by. 

According to Afridigest, these solutions also proliferated across the continent, delivered by companies like LipaLater, Klump and Float. But SNBL products, otherwise known as save now buy later, are being offered by innovators who believe that BNPL lacks a viable business model, promotes cyclical indebtedness in its users, and contradicts cultural norms that favor saving over lending. Ng’winula Kingamkono, Founder and CEO of Tunzaa is on a mission to transform the financial habits of everyday Africans (and improve the business operations of merchants while he’s at it). 

[1:49] - Ng’winula’s “alter ego” 

[5:45] - Why save now buy later

[8:15] - How Tunzaa works 

[16:28] - Building a two-sided marketplace, API first

[25:06] - Savings vs. credit culture 

[30:50] - Product suite evolution and growth

[47:27] Beliefs about consumption and the impact of the macroeconomic environment, consumer behavior 

[55:00] - Counterintuitive first principle