Moving farmers from offline to online: How TOFA is changing agricultural trade in Africa
Traders of Africa (TOFA) is an African AgTech initiative that serves as an e-commerce marketplace intent on cultivating intra-African trade and improving the efficiency of trade between Africa and the rest of the world. It aims to advance trade through a technological lens in order to promote sustainable wealth for individuals, communities, organizations, and nation-states in Africa.
We interviewed the CEO of TOFA, Uju Uzo-Ojinnaka, to get more insights into how she initiated and developed this start-up to produce such a widely impactful business. We also unpacked how the assistance and support from Endeavor aided the scaling of her business.
This is what Uju had to say about the experiences and vision that guided the growth of her company:
Why did you start Traders of Africa (TOFA)?
The idea underpinning TOFA came as a result of my own need for foreign currency in 2017 when the Nigerian government implemented currency controls. Around this time, my family business needed to settle invoices in China in USD which was extremely scarce and expensive because of the economic tide. In searching for a solution, I ended up with the opportunity of trading groundnuts with a trader who was willing to pay in dollars. However, due to the lack of resources available from local farmers, I was not able to pursue the deal. Upon reflecting on this experience, I realized the evident gap that existed between farmers, aggregators, and buyers in Africa. I felt inspired to create a solution that addressed this discrepancy through increasing the visibility and access to African products.
What was your initial vision for TOFA, and how has it developed?
TOFA was initially envisioned as a hub for qualitative trade in Africa and a catalyst to drive sustainable trade through technology. Our vision has not changed; however, we have had to expand our strategy to achieve this. For example, early on we realized that for sustainable trade to occur, we need to build trust with our users, solve payment issues and build the capacity of farmers and suppliers to trade effectively online.
As a result, we offer solutions like SourcePro where we are “buyers-to-sellers” and “sellers-to-buyers”, which allows us to build trust with our stakeholders. TOFAPAY solves payment issues by ensuring that smallholder farmers are able to receive immediate payment for what they supply. Finally, TOFA Academy trains smallholder farmers and suppliers and teaches them to move from an offline to an online marketplace
Most importantly, at TOFA we understand that we alone cannot achieve our vision — we are constantly seeking partnerships across Africa to deepen our impact and a good example of this is the partnership we have formed with the NAC-AFCFTA in Nigeria.
What is the primary problem that TOFA sets out to solve, and why is this specific problem so significant within the context of African agriculture?
Africa is blessed to have rich human and material resources, with a vast array of tradeable goods and services.
However, most farming communities produce perishes before they can be bought. At TOFA we aim to address this issue through showcasing these products and bringing all stakeholders together to facilitate trade, minimize loss, and reduce poverty. The significance of this is that it has the potential to create sustainable wealth for individuals, communities, and nation-states in Africa.
You have a passion for developing Africa as a continent — tell us about how TOFA is doing this?
The entire TOFA ecosystem is geared towards developing Africa as a continent. We act as a hub for suppliers, buyers, and investors in the African trade value chain, fostering sustainable wealth for all stakeholders through facilitated trade.
We are dedicated to making an impactful difference and developing Africa in a meaningful way. We have launched several initiatives to assist this aim, these include:
- Being at the forefront of incorporating technology into agriculture as a means of progressing farming in Africa
- Encouraging SME growth by providing funding and aid through African Trade Invest.
- We have opened the gateway for SMEs to have access to value chains and international markets, which has given them a wider opportunity to sell their goods at international standards and be part of the global supply chain.
- We train farmers and resource persons to grow crops to international standards, while financing training sessions for agents to get educated on agro-product safety and specifications.
- We have additional initiatives dedicated to training and funding for women which we do in collaboration with other female-led businesses.
How has the Endeavor AgTech Scale-up program impacted TOFA’s growth?
The Endeavor AgTech Scale-up program has been such a blessing to me and TOFA. Aside from broadening my mindset to the possibilities in the African Agtech space, we have had interactions with high-quality Endeavor mentors and entrepreneurs who have provided hands-on input into various aspects of our business.
It has been so helpful to have conversations with people who have been in the entrepreneurial space longer than I have — I was able to connect with them, share experiences and find answers to some of my most pressing questions. I’ve also discovered how extensive the Endeavour network is — there is hardly any subject where Endeavor would not have someone in the network to help you resolve it. For example, one of the most impactful sessions we had was the reviewing of a potential investor’s term sheets — it was so helpful to have a neutral party with deep expertise provide insight.
Finally, the program has further validated our need to grow through partnerships, and Endeavor has assisted us in scouting for and connect us with prospective partners.
Traders of Africa is a part of the African Agri-Tech Scale-Up Programme. Run by Endeavor South Africa, in partnership with FMO, this programme provides 10 of the most promising African Agri-Tech start-ups with the full support of the Endeavor network. The programme provides these entrepreneurs with the necessary tools to develop globally scalable solutions, such as access to global thought leaders, structured mentorship, and investor networking opportunities. Throughout the 12 months of this programme, Endeavor connects these growing companies with the right business leaders and industry experts within the Endeavor network. The goal of the programme is to help these high-impact companies scale and raise capital as they use tech-enabled solutions to address Agri-Food challenges across the continent.
