Cross-Border African Startup Dizzitup Eyes Ethiopian Market

An ambitious intracontinental startup has set its eyes on Ethiopia as it aims to enable commerce from small businesses in Africa through a cross-border marketplace. Dizzitup is looking to onboard up to 2000 Ethiopian businesses on the all-in-one marketplace which has already registered 420 businesses across the continent.

Through a blockchain-powered infrastructure, the five-year-old company looks to have small businesses in all 54 African countries selling their products with instant payment capabilities enabled through a network of partners.

Solofo Rafenombolatiana, CEO and Founder, says most intracontinental projects in Africa fail to serve the bedrock of economic activity in the continent— small businesses. The experienced entrepreneur with two successful companies in his portfolio looks to jolt economic activity within African small businesses and hopes to provide credit access in the long run.

“Without credit access, businesses merely float they stop growing,” he told Shega.

The Company backed by multiple investors looks to initially increase revenue for businesses by giving them access to new customers located elsewhere in the continent. Anyone living on the continent can buy items and pay in their respective currencies from a small business located in another country.

“This our first service,” the founder says.

Solofo explained that once the revenue increases enabling credit access can ensue in due course. Bill payments and mobile top-up options are also available through the cross-border platform.

The Founder believes that recent reforms like the floating of the Birr, establishment of capital markets, and overall economic open-up signal accommodating prospects in Ethiopia.

Dizzit has raised around $600K in a single round of pre-seed funding as it targets raising close to $5 million in second-round funding in July. The Company currently operates out of Benin, Togo, and Madagascar. 

Solofo says regulatory landscapes are different in every country, with some enabling operations without a license while others have strict licensing requirements. In countries like Ethiopia, Dizzitup looks to partner with E-commerce platforms, merchants, and service providers. 

A team of 35 is managing Dizzitups operations spread across Africa, France, and the UK as it taps into the Ethiopian market.

Enhanced cross-border trade between African countries is one of the primary objectives of the African Continental Free Trade Area (AfCFTA). One of the key components of the AfCFTA is the rollout of the Pan-African Payment and Settlement System (PAPPS), a cross-border, financial market infrastructure enabling payment transactions across Africa.

Solofo is keenly aware of this development and hopes to have Dizzitup involved in some capacity within the developing infrastructure. He says the Company can be a powerful enabler in cross-border commerce through its close ties with SMBs.