Interview: Copia Global CEO says firm is set to change e-commerce landscape in Africa

Tim Steel is the CEO of Copia Global, a mobile commerce platform targeting the African mass consumer market, as well as unbanked and unconnected consumers who live in hard-to-reach areas.

Steel is originally British and now a Kenya permanent resident, he has a finance background and has 25 years of transport and service industry experience leading diverse teams to deliver quality service and fast growth in emerging markets. In an interview, he told us why Copia is changing the landscape of e-commerce in developing countries like Kenya and Uganda.

Excerpts below

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What is Copia? 

Copia is the first and only mobile commerce platform built to serve middle to low-income African consumers, regardless of their income level, access to technology, or location. Copia’s promise to customers is quality products at the lowest market prices.

Copia’s model leverages a network of digitally enabled, locally-based agents who operate as ordering and delivery points to meet consumers where they are, online or offline. Copia’s agents are existing trusted shopkeepers like local grocers or butchers, where consumers can select and pay for products chosen from the Copia app or a frequently updated catalogue.

After an order is placed, Copia sends an SMS order confirmation to both the agent and the customer and in 2 to 4 days, Copia delivers the products to the agent for customer collection.  Through its agent network, the platform provides access to high quality, affordable products for the African mass market.

Why should a customer turn to Copia?

Copia makes living easier for our customers by providing customers with quality products at the lowest market prices that enhance their standard of living.

Our products are common everyday items that people need. Products that anyone can find in an urban supermarket but that are not easily accessible in remote areas. The product categories range from, foodstuff, personal care, household items, electronics and beauty to construction and farming supplies.

We offer customers several methods of ordering from Copia, aimed at providing customers with a choice based on their preference.

A customer can place an order at an agent's premises or by calling the Copia customer care number. Currently in Kenya, a customer can also self-order directly via our website copia.co.ke, through the Copia App, our What’s App portal or using the *874# Copia shortcode. We will be extending these digital customer self-ordering platforms to our Uganda customers in the very near future.

In various places, it has been mentioned that Copia is one of the fastest-growing ventures in Kenya and Africa. What did the growth trajectory look like up until now?

Copia’s consumers have highly contributed to our growth trajectory. Our consumer base continues to grow exponentially as our network of agents expands across the region.

To date, we have over 30,000 active agents who have supported us in accelerating our growth trajectory to serve more than one million consumers. This fast growth has enabled us to contribute over $6Million economically to the communities we serve in just eight years since we launched operations.

How does your agent model overcome trust barriers in remote areas in Kenya and Uganda?

Copia works to ensure that end consumers trust that they will get their goods delivered to them on time, as ordered and that their money will be safe. This is why we work with agents who are trusted members of society and order fulfilment only happens when the customer receives the goods they expected and are happy with them.

These agents are well-known business owners who operate small retail outlets that include hair salons, tailors, local butcheries and kiosk stores in the communities where we work.

They recruit customers, advise them on available products, place orders, and pay and receive deliveries on behalf of the customers. All this with no financial outlay or inventory requirement upfront. Additionally, with this model, Copia agents are able to grow their business revenues by up to 30%.

The Copia agent model often boosts their financial status and positions them to expand their businesses as well as cater to their personal needs. Strategic partnerships with our agents have highly contributed to accelerating our profitability and enhancing our value thereby contributing to fast growth and success in Africa.

How do you overcome the logistics challenges of delivering to remote areas?

Our business model is profitably addressing basic infrastructure gaps and inefficient retail distribution in many areas of the country.

Copia's state-of-the-art distribution centre has revolutionised last-mile distribution in Africa and we have used it to overcome the challenge of making deliveries to areas with no known addresses. Our warehousing and logistics process is powered by real-time dashboards that monitor each order from kitting to delivery, to ensure efficiency and delivery as promised.

Our tracking system provides information on the estimated delivery time of each vehicle and suggests the best routes for our drivers. This coupled with our low product prices, quality products and convenience has poised us to penetrate Africa and serve consumers product and service aspirations.

What impact has Covid-19 had on your business?

The pandemic encouraged businesses and consumers to explore contactless transaction platforms to enhance Covid-19 safety measures.

2020 was the first time many consumers had used contactless transaction platforms and methods that led to a spike in all e-commerce retail sales across the world. We have seen significant growth in our customer base driven by the need for safety and affordability.

Due to our agile business model, we were able to ensure continuity of service to our customers as a listed essential services business and ensure the safe handling and delivery of customer orders in line with Covid-19 protocols. Together with private business alliances, Copia also distributed hand washing units and soap in the communities we serve today, ensuring the safety and protection of over 1.5 million individuals using the handwashing units.

Who are your competitors in Kenya, Uganda and Africa as a whole and what sets you apart from these competitors?

For now, there are no real competitors. There are several great e-commerce businesses, but their focus is on the urban, salaried consumer. Our focus is, and will always be, the underserved low to middle-income consumers.

What are Copia's growth plans in Uganda and Africa as a whole? 

Copia has ambitions to reach underserved low to middle-income consumers across Africa. We recently expanded into Uganda where the business continues to grow daily from strength to strength.

We are currently operating in the rural areas near Kampala serving over 10,000 customers meeting their everyday quality product needs at the lowest market prices. We will be focusing on the South-Eastern part of Uganda where population density is highest.

But we intend to cover the Ugandan market fully within the next 2 years. Our ambitions are Pan-African, and we will be scaling our geographic footprint across Africa in the next few years.

What is the next frontier for e-commerce in Africa?

Digital innovations have taken off quickly in sub-Saharan Africa. According to the United Nations Conference on Trade and Development (UNCTAD), the number of online consumers in Africa has been increasing annually by 18 percent since 2014.

This growth will continue to provide exciting prospects for retail and distribution expansion due to rising wealth, population growth, urbanization rates, and the fast spread of internet and mobile phone connectivity across the region.

As for Copia’s growth plans, we tripled our business in 2020 and we are now on the path to doubling our business in 2021.

Today, Copia serves over 1 million customers in Kenya, contributing to over $6 million economically in our areas of operation.

We have ambitions to reach the underserved middle to low-income consumers across the region. We recently expanded into Uganda where the business continues to grow daily.