Episode overview:
Prince Nwadeyi spent years providing market research that unlocked South Africa's R600 billion (~USD 34.4 billion) informal economy for blue-chip clients. The likes of Swiss Re, Liberty, NASPARS all wanted the insights. Few wanted the execution risk.
In conversation with Andile Masuku, Nwadeyi explains why his holding company SAG Ventures stopped selling insights and started building businesses. From Mustard Finance Group (formerly Setana Capital) providing working capital to township spaza shops (micro convenience stores), to Purchase Pal embedding funeral cover into everyday groceries, Nwadeyi's ventures share a common thread: aligning incentives across entire value chains whilst playing a longer game than quarterly-focused corporates can stomach.
His journey from UCT postgrad researcher to operator deploying millions in credit with a claimed 99.9% repayment rate offers a masterclass in strategic patience and the power of granular consumer understanding.
Key insights:
- On why insights alone don't create impact: "We realised that some of the executives were not willing to take the risk, not for any risk of their own, but really just how the incentive structure set up within corporate." Nwadeyi discovered that knowing differently doesn't translate to acting differently when bonuses hang in the balance. The solution? Stop asking permission and build the innovation yourself.
- On aligning incentives to unlock impossible markets: Working capital finance to informal retailers seemed impossible until Nwadeyi mapped the ecosystem. Wholesalers wanted more sales but couldn't offer credit. They did have transaction data. "Can we build a technology solution that interprets that data at scale to enable unique insight that traditional finance institutions don't have access to?" The result: finance the stock purchase to the wholesaler, the SME repays over 14 days, everyone wins. One of their spaza shop clients recently scaled from one store to three and bought her first house for R1 million (~USD 57,400) cash.
- On thinking in decades whilst executing in months: "You don't have to think in days. You have to think in decades." Purchase Pal (what Nwadeyi claims to be "the world's first FMCG-embedded funeral insurance") represents one piece of a five-year strategy spanning multiple financial services verticals. The long game enables patient execution whilst maintaining corporate relevance. "What's my exit point? What's my entry point? Am I wanting to build this alongside?"
- On why research beats assumptions every time: A tearful interview during his MPhil research - a woman describing the humiliation of borrowing money to bury her mother whilst neighbours gossiped about her poverty - sparked the Purchase Pal concept. "What if we could unlock quote unquote, what I call, no cost insurance?" Years of ethnographic research revealed the margin structure in FMCG goods, the cost burden of traditional insurance intermediation, and the customer stickiness problem facing consumer goods manufacturers. Research made the impossible obvious.
Notable moment:
The pivot from consultant to operator: Walking through a Cape Flats township, Nwadeyi's co-founder encountered a spaza shop owner struggling for financing. "All I ever wanted to do is to feed myself, feed my family or feed my business." That human story, repeated across thousands of township retailers, shifted SAG from insight provider to solution builder. Traditional finance wouldn't touch these operators. Nwadeyi's team reportedly deployed over R100 million (~USD 5.7 million) and achieved 99.9% repayment rates.
Image credit: SAG Ventures
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Episode overview:
Prince Nwadeyi spent years providing market research that unlocked South Africa's R600 billion (~USD 34.4 billion) informal economy for blue-chip clients. The likes of Swiss Re, Liberty, NASPARS all wanted the insights. Few wanted the execution risk.
In conversation with Andile Masuku, Nwadeyi explains why his holding company SAG Ventures stopped selling insights and started building businesses. From Mustard Finance Group (formerly Setana Capital) providing working capital to township spaza shops (micro convenience stores), to Purchase Pal embedding funeral cover into everyday groceries, Nwadeyi's ventures share a common thread: aligning incentives across entire value chains whilst playing a longer game than quarterly-focused corporates can stomach.
His journey from UCT postgrad researcher to operator deploying millions in credit with a claimed 99.9% repayment rate offers a masterclass in strategic patience and the power of granular consumer understanding.
Key insights:
- On why insights alone don't create impact: "We realised that some of the executives were not willing to take the risk, not for any risk of their own, but really just how the incentive structure set up within corporate." Nwadeyi discovered that knowing differently doesn't translate to acting differently when bonuses hang in the balance. The solution? Stop asking permission and build the innovation yourself.
- On aligning incentives to unlock impossible markets: Working capital finance to informal retailers seemed impossible until Nwadeyi mapped the ecosystem. Wholesalers wanted more sales but couldn't offer credit. They did have transaction data. "Can we build a technology solution that interprets that data at scale to enable unique insight that traditional finance institutions don't have access to?" The result: finance the stock purchase to the wholesaler, the SME repays over 14 days, everyone wins. One of their spaza shop clients recently scaled from one store to three and bought her first house for R1 million (~USD 57,400) cash.
- On thinking in decades whilst executing in months: "You don't have to think in days. You have to think in decades." Purchase Pal (what Nwadeyi claims to be "the world's first FMCG-embedded funeral insurance") represents one piece of a five-year strategy spanning multiple financial services verticals. The long game enables patient execution whilst maintaining corporate relevance. "What's my exit point? What's my entry point? Am I wanting to build this alongside?"
- On why research beats assumptions every time: A tearful interview during his MPhil research - a woman describing the humiliation of borrowing money to bury her mother whilst neighbours gossiped about her poverty - sparked the Purchase Pal concept. "What if we could unlock quote unquote, what I call, no cost insurance?" Years of ethnographic research revealed the margin structure in FMCG goods, the cost burden of traditional insurance intermediation, and the customer stickiness problem facing consumer goods manufacturers. Research made the impossible obvious.
Notable moment:
The pivot from consultant to operator: Walking through a Cape Flats township, Nwadeyi's co-founder encountered a spaza shop owner struggling for financing. "All I ever wanted to do is to feed myself, feed my family or feed my business." That human story, repeated across thousands of township retailers, shifted SAG from insight provider to solution builder. Traditional finance wouldn't touch these operators. Nwadeyi's team reportedly deployed over R100 million (~USD 5.7 million) and achieved 99.9% repayment rates.
Image credit: SAG Ventures
Andrew Hall of Paratus Namibia: Building Networks Serving Small Populations Across Vast Distances
African Tech Roundup
11 minutes 30 seconds
4 months ago
Andrew Hall of Paratus Namibia: Building Networks Serving Small Populations Across Vast Distances
Episode overview:
Andrew Hall faces a unique challenge: building profitable telecommunications infrastructure across one of Africa's largest countries with one of its smallest populations. As managing director of Paratus Namibia, Hall oversees operations spanning vast distances where traditional business models struggle to pencil out.
Andile Masuku invites Hall to share on the realities of building networks where "you'll see three fibres running next to the road" instead of shared infrastructure, why COVID accelerated their consumer business, and how recent oil discoveries are reshaping Namibia's economic landscape.
Key insights:
- On geographic challenges: Namibia's vast distances and sparse population create unique infrastructure economics where covering remote areas requires careful return-on-investment calculations across extended payback periods.
- On competitive landscape: Operating alongside two state-owned enterprises creates complex market dynamics where regulatory considerations and different organisational mandates influence infrastructure deployment strategies.
- On infrastructure sharing: Despite logical benefits, competitive dynamics often result in duplicated infrastructure: "three towers standing next to each other" rather than collaborative deployment approaches.
- On consumer versus enterprise: Traditional enterprise focus (75% of business) provided stability, but consumer growth since 2016 now drives expansion, particularly accelerated during COVID-19 periods.
- On technology transitions: Moving from WiMAX limitations (4-10 Mbps) to fibre required strategic timing; balancing asset sweating against customer retention as bandwidth demands increased around 2018.
Notable moments:
1. Hall's description of infrastructure redundancy: "If you drive down the road, you'll see three fibres running next to the road. If you're driving from one town to the other, you'll see two or three towers standing next to each other"
2. The COVID-19 catalyst: Consumer business performed "very, very well" as people became "100% reliant, work-wise, education-wise, entertainment-wise on connectivity"
3. Recent oil discoveries creating positive economic outlook with increased foreign investment interest and improved business confidence
The development question:
Hall addresses the expectation that telecoms should "unlock growth economically for an entire nation" by emphasising education as the foundation. Paratus's corporate social responsibility focuses on educational sector connectivity because "for children to have access to the internet, it makes the world a lot smaller."
His perspective reflects broader African infrastructure challenges: balancing commercial sustainability with development impact, managing investor expectations whilst serving diverse stakeholder needs, and building institutional capacity in environments with limited technical specialisation.
"I think access to the internet plays a crucial role. And I think it starts at grass root level in the form of education... for children to have access to the internet, it makes the world a lot smaller."
Image credit: Paratus Namibia
African Tech Roundup
Episode overview:
Prince Nwadeyi spent years providing market research that unlocked South Africa's R600 billion (~USD 34.4 billion) informal economy for blue-chip clients. The likes of Swiss Re, Liberty, NASPARS all wanted the insights. Few wanted the execution risk.
In conversation with Andile Masuku, Nwadeyi explains why his holding company SAG Ventures stopped selling insights and started building businesses. From Mustard Finance Group (formerly Setana Capital) providing working capital to township spaza shops (micro convenience stores), to Purchase Pal embedding funeral cover into everyday groceries, Nwadeyi's ventures share a common thread: aligning incentives across entire value chains whilst playing a longer game than quarterly-focused corporates can stomach.
His journey from UCT postgrad researcher to operator deploying millions in credit with a claimed 99.9% repayment rate offers a masterclass in strategic patience and the power of granular consumer understanding.
Key insights:
- On why insights alone don't create impact: "We realised that some of the executives were not willing to take the risk, not for any risk of their own, but really just how the incentive structure set up within corporate." Nwadeyi discovered that knowing differently doesn't translate to acting differently when bonuses hang in the balance. The solution? Stop asking permission and build the innovation yourself.
- On aligning incentives to unlock impossible markets: Working capital finance to informal retailers seemed impossible until Nwadeyi mapped the ecosystem. Wholesalers wanted more sales but couldn't offer credit. They did have transaction data. "Can we build a technology solution that interprets that data at scale to enable unique insight that traditional finance institutions don't have access to?" The result: finance the stock purchase to the wholesaler, the SME repays over 14 days, everyone wins. One of their spaza shop clients recently scaled from one store to three and bought her first house for R1 million (~USD 57,400) cash.
- On thinking in decades whilst executing in months: "You don't have to think in days. You have to think in decades." Purchase Pal (what Nwadeyi claims to be "the world's first FMCG-embedded funeral insurance") represents one piece of a five-year strategy spanning multiple financial services verticals. The long game enables patient execution whilst maintaining corporate relevance. "What's my exit point? What's my entry point? Am I wanting to build this alongside?"
- On why research beats assumptions every time: A tearful interview during his MPhil research - a woman describing the humiliation of borrowing money to bury her mother whilst neighbours gossiped about her poverty - sparked the Purchase Pal concept. "What if we could unlock quote unquote, what I call, no cost insurance?" Years of ethnographic research revealed the margin structure in FMCG goods, the cost burden of traditional insurance intermediation, and the customer stickiness problem facing consumer goods manufacturers. Research made the impossible obvious.
Notable moment:
The pivot from consultant to operator: Walking through a Cape Flats township, Nwadeyi's co-founder encountered a spaza shop owner struggling for financing. "All I ever wanted to do is to feed myself, feed my family or feed my business." That human story, repeated across thousands of township retailers, shifted SAG from insight provider to solution builder. Traditional finance wouldn't touch these operators. Nwadeyi's team reportedly deployed over R100 million (~USD 5.7 million) and achieved 99.9% repayment rates.
Image credit: SAG Ventures
