Chris Folayan
By Manny Otiko
Africa has a fast-growing middle class who is eager to purchase Western consumer goods. MallforAfrica is one of the companies that has sprung up to serve those consumers. The company allows Africans to purchase goods online and have them shipped directly to their homes. This is a conversation with MallforAfrica founder Chris Folayan.
What is MallfoAfrica?
A global ecommerce platform that enables Africans to purchase products from U.S. and UK retailers while offering zero risk.
How did you come up with the idea?
During one of my many trips to Nigeria to visit family, I found myself at San Francisco International Airport. But it’s not just me…I have company. 10 suitcases filled to the brim will be joining me on this trip. Yes 10. Only one suitcase was mine, the rest a random mix-match of all sorts of items requested by my brothers and friends I didn’t remember I had.
When word got out I was coming to Nigeria, the list of items being pouring in and got longer and longer. People even offered to pay for my luggage. When I walked up to the Delta counter to check-in, the agent looked at me, then looked at my luggage, and with a comical snappy attitude said “Nope.” It was instantly apparent I wasn’t getting on my flight.
It then hit me that there was an evident need in the market for goods people can access through ecommerce sites but yet no ecommerce site or merchant wanted to take on the risk of shipping to Africa, let alone Nigeria. That seems to scare every merchant despite how wealthy Africa is. At that point the idea was formed right there in front of the snappy Delta agent who must have thought I was crazy.
I went back to my home with my 10 suitcases and began crafting an idea and app that would solve this problem. I knew it had to be one that would take away 100 percent of the risk and create a seamless way for ecommerce stores to sell into Africa. Plus the app had to provide people in Africa access to shop directly in stores in the U.S. or UK without concerns of the stores not wanting to ship to Africa.
The MallforAfrica app was born and it takes on all the risk for the retailers and guarantees our customers in Africa get the items. It’s a win-win. Fast forward three years and I’m proud to say that we offer more than 8.5 billion items from over 150 ecommerce sites in the U.S. and UK. We sell into Africa and emerging markets at zero risk to merchants and provide tens of thousands of smiles to people in Africa who now, with our app, get to experience true global ecommerce.
What has the success been like?
Unbelievable. We really have bridged the retail gap between Africa and the U.S. and UK. We are very proud of that. Retailers call us every day asking us to help them expand their customer base and to join our site. We are also constantly getting emails from our loyal customers thanking us for allowing them to purchase products they normally wouldn’t be able to buy. It truly is a very rewarding job and I couldn’t be happier.
Unbelievable. We really have bridged the retail gap between Africa and the U.S. and UK. We are very proud of that. Retailers call us every day asking us to help them expand their customer base and to join our site. We are also constantly getting emails from our loyal customers thanking us for allowing them to purchase products they normally wouldn’t be able to buy. It truly is a very rewarding job and I couldn’t be happier.
Today, we have more than 8.5 billions items from over 150 of the best retailers in the world.
How many countries are you operating in?
We are currently in Nigeria, Kenya, Jamaica, Trinidad, and Tobago. This year we will expand into Ghana and other African countries.
What is the biggest challenge doing business in Africa?
The biggest challenge is that retailers don’t want to ship to Africa. In fact, they are terrified. It’s very obvious and not that shocking to be honest. There are two reasons I have found why most retailers don’t want to ship to Africa, predominantly Nigeria.
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Fear of fraud. “So I ship the items and find out the credit card used was stolen the item has already shipped and I have no recourse.” Merchants are paranoid about this and rightfully so. But we take on that risk and make sure we get payment verified up front before transactions are made by customers on our app.
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Fear of the unknown. Rules, regulations, taxes, clearing fees, returns, customer service. The entire environment from country to country is different and managing and understanding that knowledge isn’t something merchants want to figure out. Will the item clear customs? Who pays for additional customs and duties? If the customer gets the item and it’s broken or the wrong item is sent who pays for return shipping? What do I do about claims what are the countries rules around claims? We say, have no fear MallforAfrica is here. We take care of all those fears and more for merchants. We understand that selling into a new market can be scary.
Which African country is the easiest to do business in?
Nigeria is the easiest in my opinion but that’s probably because I was born and raised there. So for me it’s easier to navigate what some may call challenges.
How is the Internet changing African countries?
Africa is becoming a much more dominant continent in ecommerce, learning, and being a connective part of the global economy. Africa is becoming more advanced, incorporating best practices principals in the way business is done. The internet has also been a great means for people to communicate and educate themselves online. Fashion has also seen a great boost due to internet proliferation. More people are accessing online stores for the latest fashion trends and ideas. Communication via social media has had a tremendous impact on the continent. Many countries in Africa now have politicians going on social media, the people are providing their feedback and comments to governments and private enterprises. The internet has brought Africans a voice that can now be heart nationally and internationally instantly.
How did you get over the problem of lack of Internet access in Africa and also the fact that most Africans operate in a cash-based economy?
Due to competition internet access is much more rampant than most think. Most people have smart phones in Nigeria for example a smart phone could cost at cheap as $30 with internet packages starting at $3. Yes, the internet is not as widespread as it is in the states but it is growing at a phenomenal rate.
We got over the cash-based economy by providing what we call a MFA Webcard. Think of it as a debit card, one you can load funds on in your local currency and shop on our platform with your pre-loaded MFA Webcard. So you can take your Naira load it on our Webcard and purchase something from Macy’s for example.We have basically created a means of payment based on the culture and society. In Kenya for example mpesa is used for over 80 percent of transactions. So we accept mpesa on our Kenya platform. So we don’t only tailor to the cash-based society mentality we also base our strengths on incorporating local payment methods for payment. So if you don’t have a credit card you can still use our platform and purchase from over 180 international stores.
What are some challenges that black/African entrepreneurs face?
Trust. It’s hard to get people in Africa to trust you and your brand. People have been swindled and burnt so many times of have heard so many horror stores there is a sense of skepticism as the default view of any business Africa related.
Resources with power. Electricity and power are still not consistent and we are far away from trusting electric power will not shut down at least three times a day. So to prevent your company from going down you have to have standby generators, or industrial size backup battery stations that can keep your company going whenever electricity shuts off.
Lack of well educated people ready to work. Finding amazing talent is hard. Talent is out there but it’s hard to find. Many people are trying to find the quick way to being rich and the I want to own bug is in so many. If everyone wants to own a business who will you hire to run the business?I am always amazed at the number of people who want to start their own businesses without experience and developing work ethics. I didn’t start at the top. I worked hard to climb the ladder and shape myself before I was ready to start my own company.
What are your future plans?
In the next five years we plan on being in over 40 countries around the world, providing unparalleled access to merchants and buyers in U.S., UK and emerging markets. Our plan is to simplify the way ecommerce is conducted globally to reduce risk to merchants who want to sell while providing access to shoppers. Think of it this way– for there to be true global ecommerce for the masses, there needs to be an element that appeals to the masses. One that merchants spend nothing to implement or have turned on, and one customers can shop on with local currency, easily and fast. That’s what we do and plan to keep doing. We want to bring together customers and retailers from Africa to America and vice-versa.
We also have a social aspect to us. We are determined to consistently do what we can to improve the lives of people in Africa and markets we serve. We teamed up with One World Play Project, they bring play to youth in Africa by selling and donating One World Futbols—ultra-durable soccer balls that never need a pump or go flat, even when punctured. We also provide schools with books, provide shop owners a platform to stock their new stores, and businesses of all sorts the ability to purchase products to start a small business. Our goal is to keep on enabling, educating, and serving emerging markets with high quality products needed to grow and produce benefits to their immediate family and empower people around them.
What has been the response from your customers?
Overwhelmingly positive. They couldn’t be happier with us. I mean, who wouldn’t be happy with a selection of 8.5 billion items. It’s a shoppers dream. Our customers can purchase anything from jewelry to clothing to electronics to shoes. Sky’s the limit.
We also offer something that no one else does, our pickup locations. Customers no longer have to worry about being home when the package arrives. Just knowing that it’s safe and they don’t have to rush gives them tremendous piece of mind.
That is what we are always striving for at MallforAfrica, making it as easy as possible for both the customer and retailer. We always tells them, “Don’t worry about a thing. We have your back.”
