Startup Funded by Mastercard Affirms Role as Key Driver for Implementation of AfCFTA Agreement
In a bid to boost intra-African trade from the current 17% to an ambitious 81%, a technology platform named Brydge is making strides. Founded by Nathan Agama in late 2023, Brydge aims to serve as the operating system for intra-African trade, facilitating the goals of the African Continental Free Trade Area (AfCFTA) agreement.
Small and medium-sized businesses (SMBs) in Africa face numerous challenges in intra-African trade. These include limited access to critical resources, complex registration and compliance processes, high tariffs, logistical inefficiencies, trust deficits, exclusion of the informal sector, psychological and cultural barriers, and visa and travel restrictions.
Recognizing these issues, Brydge focuses on digital infrastructure and innovation as enablers for trade integration. The platform simplifies trade processes, increases transparency and trust, offers currency conversion solutions, supports both informal and formal SMBs, and acts as an enabler for businesses to leverage local and regional networks.
Brydge's initial focus was streamlining cross-border payments by partnering with licensed payment service providers (PSPs) like Fincra, enabling seamless transfers. The platform later expanded its services to e-commerce, aggregating suppliers and logistics providers to create a marketplace where businesses can source goods, arrange clearing, or find warehouses in markets like Ghana or Kenya.
The trust deficit is a significant issue in intra-African trade, with stories of suppliers disappearing with payments or delivering substandard goods being common. Brydge addresses this issue by ensuring that all suppliers and logistics partners are verified, fostering confidence in African products and businesses.
As of the article's publication, Brydge has processed ₦4.8 billion ($3.1 million) in transactions and disbursed ₦100 million ($61,000) in trade financing to 42 small and medium businesses. The startup has also launched trade financing, providing credit to businesses, with about ₦100 million ($65,189) disbursed so far.
Brydge has received funding from 54 Collective and Mastercard, and is currently working on completing a $750,000 pre-seed round through a friends-and-family round. Agama, the founder, has a conservative approach to funding, emphasizing sustainable growth over vanity metrics.
By 2030, Brydge aims to achieve a GMV of $50 million, onboard 5,000 active buyers, and expand to 10 African markets, targeting a 20% increase in intra-African trade volume. The platform plans to expand into key trade hubs driving the continent's commerce, including Kenya, South Africa, Senegal, the Ivory Coast, Egypt, and Tunisia.
In a continent where currency conversion is costly and slow, and African central banks prefer to hold USD or Euros instead of each other's currencies, Brydge offers a beacon of hope for SMBs seeking to engage in intra-African trade. With its focus on digital innovation and practical solutions attuned to the realities on the ground, Brydge is poised to revolutionize trade in Africa.
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