What’s it like in Tunisia

Tunisia’s youth and rural populations suffer from high unemployment (16%) and lack of opportunities. 33% of young people are active in the informal sector. Informal retail sector employs more than 500,000 people (40% youth) Most of them start working at the age of 15 as apprentices and generally launch their own business before the age of 30. .....250,000 outlets….80% of the Tunisian retailing volume Tunisia’s mobile phone usage rate in rural areas reached 97% Upraise of mobile financial transactions

• Out of stocks and poor storage conditions

• Poor access to information, equipment and technology

• Few discount opportunities and higher prices compared to formal retail

• Very low bargaining power and imbalanced relationship with producers and big wholesalers

• No access to financial products but have to give credit facilities to their low income clientele (social role) in poor areas.

Main Challenges

“It’s hard for me to tell customers I don’t have the product they need, when I’m out of stock.

A customer can be disappointed one time and never come back

again.”

–Moez, Focus Group Participant in

Jendouba

Design and implement a mobile technology to integrate rural retailers into the supply and value chain.

Support young small retail owners in growing their business by developing innovative and effective financial products adapted to their needs.

Use technology to offer Business Development Support and non financial services.

Learn on how MobiPos can increase youth employement in rural areas

The MobiPos pilot project

MOBIPOS components

Ordering stock directly without going through intermediaries, therefore lowering costs

Organization of retailers through Mobipos for better purchasing power Secure payments that allow the retailer to lower cash on hand

ORDERING STOCK AND PAYMENT VIA

MOBILE

Better access to merchandise The ability to avoid stock outages, particularly for basic necessities Improved supply chain and logistics Prompt and easy access to information regarding sales and promotions

KEEP TRACK

MobIpos is a bridge of trust between the small retailers and producers Regular history of transactions and timely payments will make producers

less reluctant to offer trade credit PROINVEST will partner with Banks, fund of guarantee and MFI

ACCESS TO CREDIT AND CASHFLOW

FACILITIES

CBO

Step2. Grouped Orders

Step5. Billing via MobiPOS

Step 4. Billing to CBO

Step 1. Orders via MobiPOS

ORDER, DELIVERY AND BILLING PROCESS

Step 3. Direct Delivery

Guarantor BANK

Central Buying Organisation

(will leverage the Guarantee)

Credit management

support unit (MFI) CBO BANK

LETTER OF BANK GUARANTEE (COLLATERAL ex. 50K)

Trade credit lines

30k 40k 20k 10k

0.2k 0.2k 0.2k 0.2k

Retail trade credit

CREDIT PROCESS

Credit history info

Producers/distributors

Small retailers

Preliminary results after 2 months of testing

Geographic area: Rural and Semi-rural Areas. Impact-to-Date: 252 small retailers subscribed in MobiPOS: 43% aged between 18-35, 15% are young rural women. A catalogue of more than 35 food products offered 181 orders were placed through MobiPOS Items generally delivered within 48 hours MoU with local partners : Telecom operator: Ooredoo Microfinance: ENDA Distributors: UNIBRO 12 Local and International agro-food producers/importers

“With the proposed technology and a

virtual marketplace, we could take

orders and deliver in 24 hours, and do it

for less than Carrefour, if we

have enough retailers.”

Jabria, Haykel,

Food Distributor ; Responsable Réseau

Moderne, UTIC Distribution

Lessons learned 1. Technology is cost effective and can support

retailers in better integrate in Value Chain 2. Access to credit is a key factor for business growth 3. Need to develop new and innovative financial and

non financial services adapted to the needs of rural retailers.

4. For scalability and sustainability : think about innovative business models that fit to reality of informal retail sector

5. Partnership with stakeholders for scaling (MFI, NGOs, Telco, etc.)

What’s next?

• Mobile payment • Financial product and credit facility • Non financial Services • Business model and sustainability