In South Africa’s Poor Townships, Social Entrepreneurs Are Creating a Food Delivery Service

Tuesday, September 15, 2015

People who live a long way from grocery stores pay more for food because they have to travel there and back, which costs money, and they waste more time doing it. That's why two social entrepreneurs from Cape Town, South Africa, have come up with Lakheni, a group buying club that aggregates orders, with local daycare centers serving as a base.

"At the bottom of the pyramid, distribution is very inefficient because of the small amounts that individuals buy," says cofounder Nokwethu Khojane. "But there's value when you start aggregating that demand, because the numbers are there—they're just fragmented."

They think they can save money for low-income people who normally have to travel miles, while helping the centers generate additional income.

Each month, the parents make orders of staples like maize, sugar, and oil. Lakheni puts the orders together and goes direct to food suppliers. The suppliers then deliver the items to local mini-stores known as spazas. Khojane says customers can save about 30%, including their cost of transport.


Source: Co.Exist (link opens in a new window)

Base of the Pyramid, social enterprise