Why 'R50 for Gold' Marks a Turning Point for Digital Transformation in Africa

Lengo AI: Enhancing Visibility for Nigeria's Informal Shops with AI

Update Unlocking the Hidden Market: Lengo AI’s Mission to Transform Retail in Nigeria In the vibrant corridors of Lagos, nearly one million informal shops brim with an array of household essentials, yet they remain invisible to major consumer giants. These local retailers are the backbone of many neighborhoods, but for international brands like Coca-Cola and Unilever, mapping them has proved challenging. Why does this matter? Informal shops can account for a staggering 90% of food sales in Sub-Saharan Africa. However, the lack of visibility into these markets complicates marketing strategies and supply chain logistics. Artificial Intelligence Reshaping Traditional Business Models Lengo, a pioneering start-up based in Lagos, is on a mission to bridge this gap using artificial intelligence. Founded in 2022, Lengo is part of the Google for Startups Accelerator: AI First program, aiming to provide much-needed market insights for fast-moving consumer goods (FMCG) companies in Nigeria and beyond. According to Max Smith, CEO of Lengo, the existing data is often scarce and unreliable, leading to misguided business decisions. Lengo aims to directly address these challenges by leveraging cutting-edge AI technology. A New Approach to Retail Visibility Initially rooted in Senegal, Lengo identified a goldmine of informal retailers that went unrecorded by established databases. With innovative tracking methods that blend AI and digital tools like Google Street View, Lengo efficiently recognizes and maps these stores. Their sophisticated system not only identifies shop types but also assists in onboarding shop owners through platforms like WhatsApp, making the process seamless and efficient. Growing Networks Through Local Engagement By tapping into existing networks, Lengo encourages shopkeepers to connect with peers, integrating community-driven growth into their model. This strategy is proving fruitful; referrals from shopkeepers are now accounting for 30% of Lengo’s growth. As these informal shops are mapped and engaged, they become integral to the data ecosystem Lengo is building. The Bigger Picture: A Call for More Data Integration Large FMCGs still fail to reach vast swaths of Nigeria’s informal sector. Lengo’s insights highlight this staggering discrepancy and signal an urgent need for greater integration and understanding of informal retail environments. Without precise data, brands risk losing valuable insights into market demand and distribution channels. Ultimately, Lengo AI’s efforts are sparking a data-driven transformation in Nigeria’s retail landscape. As technology evolves, so does the opportunity for entrepreneurs and brands alike. The future is bright for those harnessing the power of artificial intelligence and data in Africa. It is essential for stakeholders to recognize this growth trajectory and invest in tech solutions like Lengo while supporting local economies — it’s a win-win scenario. Keep an eye on Lengo AI as it leads the charge in illuminating the Nigerian retail sector!