An opportunity to get a foothold in Africa's $75 billion per year eCommerce Industry

1. YourFootholdin
Africa’s$75billion
eCommerce
Industry
Introducing eCommerce
to Malawi
Year

2. SPCTRM Ltd.
What’s the problem?
Understanding where the opportunity lies
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3. SPCTRM Ltd.
McKinsey & Co reported that Africa’s eCommerce
industry will rake in $75 billion a year in
annual eCommerce revenues.
The United Nation’s Capital Development Fund
(UNCDF) stated that Malawians have embraced
digital financial services at record-breaking
levels:
○ In 2012 there were just 1,000 mobile money
accounts, by 2018 there were over 7.1
million—more than bank accounts.
○ Malawi now processes over $20 million a day
in digital financial services.
BUT so far financial institutions and
entrepreneurs are yet to transform digital
financial services from enabling periodic
transfers to facilitating mass transactions.
SOLVING that problem is our $2.5 million per-
year opportunity.
The Problem
Event though Malawi has embraced digital financial
services at a remarkable pace, it is set to miss out on
Africa’s $75 billion a year eCommerce industry
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4. SPCTRM Ltd.
The Problem: Why Merchants can’t get online
Inadequate banking
Only 23% of Malawian adults
have bank accounts, and there
are less than 5 ATM machines
per 100K adults.
Debit Cards for online
purchases were only introduced
in 2017, and only 2% of
Malawians own debit/credit
cards.
Ecobank is the only bank
offering Merchants web
acquiring services since 2018;
Mobile banking helps
The UN recognized the rapid
growth of mobile money in
Malawi from 1,000 accounts in
2012 to 7.1 million in Q3 2019.
Retail Digital Financial Service
transactions in Malawi are
valued at $20 million per day
comprised of: 49.6% mobile
transactions; 48.9% internet
banking; and 1.5% internet
banking.
But gaps remain
Only 49% of mobile money
accounts in Q3 2019 were
active;
Only 6% of banked Malawians
use internet banking
Only 3.7% of adults paid utility
bills using mobile money
Less than 2% of Malawians
own a debit/credit card
The key issues
Majority of small business
owners do not have access to
the knowledge or resources to
create online stores;
Current USSD-driven electronic
payment options involve many
steps, are prone to network
failures, and not compatible.
Little Merchant-side support for
receiving or integrating
payments into current systems.
The Solution
Merchants need to be able to
create online stores without
knowing how to code or relying
on software developers
A payment service provider
needs to make it easy for
Merchants to accept payments
from any financial service
provider into their normal bank
or mobile money account.
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5. SPCTRM Ltd.
Seizing the opportunity
What is our solution and how will it make
money?
5

6. SPCTRM Ltd.
Despite challenges, electronic payments are popular!
$20M / Day
○ 3.5 million active mobile money
accounts transacting $2 per day
○ 900K mobile banking subscribers
transacting $3 per day
○ 136,000 internet banking subscribers
transacting $72 per day
○ 2,322 Point-of-Sale devices
processing $129 a day
○ Weighted Av. Daily spend $0.44
2M Users
○ Malawi has a population of 19 million
people and a GDP per capita of only
$389. 53.5% are adults.
○ The top 10% of Malawians account
for 53% of consumption and 58% of
income. These roughly 2 million
people:
• Live in urban areas (17% of Malawians)
• Are internet users (2.8 million people)
• Own one of 4.5 million broadband
connected mobile devices in Malawi;
• Have a bank or mobile money account
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7. SPCTRM Ltd.
The Solution
A payment service provider (PSP) and online
market place to simplify the process of creating
an online store, receiving payments and fulfilling
orders.
eMarketPlace
Allows Merchants to
create an online store
and list products
simply by filling out
online forms and
uploading graphics
PSP
Facilitates the process
of receiving online
payments from any
financial service
provider
Support
Make order processing
and accounting easier,
and provide tech
support for learning
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8. SPCTRM Ltd.
SPCTRM
The platform that will deliver eCommerce to
Malawi
Consumers
A Consumer-facing
mobile app with USSD
compatibility
Merchants
A merchant-facing
mobile application and
web-portal
PSP
A Payment Service for
receiving funds into
bank/mobile accounts
Admin
An Admin web-portal
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9. SPCTRM Ltd.
Business Model
How to provide free listing, free order processing, free customer service and still make money!
Transactions
As a payment service
provider we will charge a
3-4% payment
processing fee*
*Includes fees charged by
financial service providers, our
projections assume that just 1%
of the fee goes to us.
Sales
As an online market
place we will charge an
additional 3-7% sales
transaction fee
Advertising
Our consumer-facing
mobile application will
include 5 paid
advertisement slots
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10. SPCTRM Ltd.
Competitive Analysis: Us vs Them
Our Company
○ Provides a complete customer-oriented Merchant
solution:
• We are creating a Payment Service Provider because
we know that Merchants lack access to eCommerce
enabled financial services
• We are creating an online marketplace because we
know that Merchants lack the technical skills and
access to human resources needed to set up online
stores.
• Our competitive advantage is our ability to build the
local partnerships needed to fully understand the
landscape and build the interdependent and flexible
eCommerce architecture needed to bring all Malawians
together, online.
Competitors
○ Providing generic and disconnected solutions which
leave significant gaps in facilitating eCommerce :
• Most banks and MNOs provide consumer-focused
solutions for making electronic payments while
completely ignoring the “receiving electronic
payments” side of the solution
• The focus is on “enabling electronic payments” and
not “supporting electronic payments” results in:
• Highly technical and complicated procedures for
Merchants to accept mass payments (not just
money transfers);
• Poor customer service – inadequate feedback
channels – long and unreliable payment service
provision
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11. SPCTRM Ltd.
Where we stand
Payment Service
Provider
No online payment
option
No Merchant platform Online Marketplace
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12. SPCTRM Ltd.
The Dream Team
Entrepreneur and Economist (Masters) that
has worked for the African Union, The British
Council and Consultancies for USAID, IFAD
and Gov of Malawi.
Skills include: economic research,
communication, strong public & private
sector network, and business strategy.
Founded SPCTRM following success as a
freelance events management and
marketing consultant.
Ndankhonza Munlo (CEO)
Dom is an experienced Solutions Architect
with over 15 years experience in managing
complex service-oriented architecture (SOA)
projects for Accenture and IBM, including
mergers/acquisitions.
Dominique Louis (CIO)
A Cyber Security Architect for Accenture LLP
in the United States. He helps Fortune 500
companies connect their IT systems to their
organizational goals and supports their
establishment of an effective cyber security
culture.
He also holds a Masters Degree in Cyber
Security Management from Washington
University in St. Louis, MO, USA.
Thulani Shabangu (CSO)
A senior software developer at CRDB
Bank in Tanzania and ICT Consultant
with over 10 years experience in
developing applications, systems and
automations in Eastern Africa.
Evans Makundi (CTO)

13. SPCTRM Ltd.
Growth and Financials
What the future looks like
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14. SPCTRM Ltd.
Growth Strategy
How will we scale in the future
Phase 1
Take on big cities: Lilongwe & Blantyre
• Target 400K early adopters who
are active on mobile social media
and mobile payments.
• Slow controlled launch:
• Workshops with Stakeholders to
tweak MVP, secure integration
contracts, acquire merchant
commitments
• Target a few large merchants with
many customers for phased
launches at their outlets
Phase 2
Deeper Connections
• Target additional 400K early
majority who are active on social
media and use electronic
payment services.
• Focus on stronger partnerships:
• Higher engagement with Reserve
Bank to pre-empt regulation.
• Leverage customer base to drive
costs down through deeper
integration and lower partner fees
Phase 3
King of the Netizens
• Target additional 800K late
majority who are internet users
and probably use electronic
payment services
• Get consumer feedback, improve,
repeat:
• By this point we have strong
supplier & merchant side
competitive advantage
• Now we build consumer loyalty so
that, for Merchants, not being on
SPCTRM is bad for business.
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15. SPCTRM Ltd.
Summary Financials
Transactions
Year 1: $ 63.7M (400K users)
Year 2: $ 127M (800K users)
Year 3: $ 255M (1.6M users)
Year 4: $ 318M (2M users)
Revenues
Year 1: $ 636K
Year 2: $ 1.2M
Year 3: $ 2.5M
Year 4: $ 3M
Profits
Year 1: $ 417K
Year 2: $ 900K
Year 3: $ 2M
Year 4+: $ 2.5M
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16. SPCTRM Ltd.
Detailed Financials
Year 1 Year 2 Year 3
Merchants 20 40 60
Users 400,000 800,000 1,600,000
Av. Annual Spend / User $ 159 $ 159 $ 159
Annual Trans. Fee / User $ 1.59 $ 1.59 $ 1.59
Revenue @ 1% $ 636,000 $ 1,272,000 $ 2,544,000
• Cost of Revenue 0 0 0
Gross Revenue $ 636,000 $ 1,272,000 $ 2,544,000
Expenses
• Staff & Dev. Services $ 156,600 $ 268,400 $ 395,600
• Marketing $ 62,000 $ 55,000 $ 35,000
• Utilities $ 19,800 $ 19,800 $ 19,800
• Equipment $ 9,000 $ 3,000 $ 10,500
Total Expenses $ 247,400 $ 346,200 $ 470,900
Gross Profit $ 388,600 $925,800 2,073,100
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17. SPCTRM Ltd.
○ As in many African countries, Malawian
consumers have shown that they are
eager to engage in eCommerce.
○ Banks, Mobile Network Operators, and
entrepreneurs have thus far provided
limited and disconnected solutions that
leave potholes in the road to
eCommerce for many Merchants.
○ Our consumer-oriented, Merchant
solution addresses the financial and
technical challenges Merchants face.
○ That is something for which Malawi is
willing to pay over $2.5 million per year
in revenues!
Will you join us?
This is your chance to get a foothold in Africa’s $75
billion eCommerce industry!
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18. Thank
You
Ndankhonza Munlo
+86 18616 851 251
nda.munlo@spctrmafrica.com
www.spctrmafrica.com (building)