Meet PALLI!
Empowering small businesses in Africa
tl;dr
Successful Kampala Launch: PALLI is live! Partnered with 10 businesses, all maintaining a 100% repayment rate. Partners have averaged >2 credit cycles in the first 3 weeks.
Challenges Overcome: From tech hurdles, accessibility issues, local communication nuances, to rain-soaked days, our adaptability was tested.
Local Endorsement: Advocacy from local distributors, especially our early advocate MK, has been invaluable, unlocking trust and business opportunities within the community.
Business Impact: Business owners like Joann and Brian are experiencing growth, leveraging their excess capacities and looking at expansion.
Future Focus: Solidifying PALLI’s foundation, partnering locally for financing, and demonstrating business and economic growth.
September 2023: Kampala Launch Report
PALLI has successfully launched in Kampala, a pivotal milestone in our mission to support African small businesses. Our community-based microcredit system now empowers 10 entrepreneurs with revolving credit lines from $300 to $1000 USD.
Andrew, owner of Mamma Emmas, our first active partner. After a few weeks, Maama Emma, Andrew’s wife, shared: “Mutowonyeza ba money lender ne loan zza banka!” (You have saved us from Money lenders!) Money lenders offer short-term loans at very high interest rates to people with no other option.
Launch Day and Early Wins
Despite heavy rain on launch day disrupting the entire city, Francis and I pressed forward, ensuring the first 10 businesses received access to inventory to fuel their business growth. “You all are very serious people, moving in the rain today,” Minister, a local business owner and early partner, quipped, “but we thank you for the effort!”
Morning rain welcoming our launch
Joann, a spirited shop owner, expressed with joyful surprise, “I couldn’t believe it till I saw it with my own eyes.” Her words reflected the community's initial skepticism and subsequent trust in PALLI.
The results have been uplifting: 100% repayment rates, with several entrepreneurs exceeding expectations by making early repayments and topping up their inventory. Brian, who has been using his full line of credit on a near daily basis shared similarly, “I have wanted to invest in another tuk-tuk, but had delayed knowing it needed the capital to fill it with goods each day.”
The Role of Trust & Relationships and Vertical Integration
Trust plays a central role in the African economy. While social communities often have horizontal peer-to-peer relationships, we’ve learned the structure of Kampala's business community is more vertical. Relationships stretch from the customer up to the manufacturer, with local distributors as critical nodes connecting the supply chain. By embracing these vertical relationships and norms, PALLI aims to establish meaningful partnerships throughout the business ecosystem.
While we anticipated the significance of trust, the endorsement from local distributor MK validated our approach. "People don't trust banks, so this is your advantage," he remarked while taking a moment’s shelter from the rain, highlighting the importance of PALLI's community-based approach, “you’re not trying to come and take a bunch of pictures of our shelves,” referencing a common approach from other services, “my word will mean a lot more to you and to these owners.”
MK, a local distributor, hopped in the car and took us to businesses that could benefit most, doing the selling on PALLI’s behalf. (with Francis and Richard, a retail shop owner.)
Understanding the Market Opportunity
Simultaneously, we interviewed 72 entrepreneurs, revealing a common sentiment: wariness toward traditional financing and appreciation of PALLI's respectful model. Over 80% have requested our follow-up, evidencing the demand.
Working with Henry, Andrew, and Diana as they use PALLI to access inventory to sustain and grow their businesses.
You can review the summary of our research findings here.
Our Vision
Our vision is to empower small businesses and build a more interconnected global economy. With this foundation in Kampala, we are focused on expanding access, solidifying operations, and driving growth for deserving business owners with dignity and respect.
What’s Next
As we advance and continue to demonstrate the impact on individual businesses and economic growth broadly, we’re focused on refining our foundation to navigate operational, legal, and financial realities to serve this market. We are seeking introductions to potential partners, investors, and collaborators who share our vision. Please reach out to join us in this transformative journey or share this update with others who might be inspired by our vision.
Celebratory pork at a local pork joint after launch, a personal favorite of the local cuisine