The government has done a lot to increase capital access to special groups like women, youth and persons with disabilities, however, more needs to be done.

So far, the government, through the Central Bank of Tanzania has eased borrowing and reserve requirements for commercial banks and in so doing eased lending caps of these banks. The expected result is that commercial banks can now loan out at lower rates under easier terms.

It is working, many SMEs are staying afloat thanks to capital access under these terms however, for women and youth who do not possess a business or who are working in the informal sector, access to bank loans is simply out of the question, most of them do not meet the basic requirements.

To address this constraint, the government sets aside a budget for youth and women groups’ support. To access this funding, youth and women are to form groups and develop a business plan and the funding is issued by their respective local government authority based on their geographical locations.

This is where Direct Selling comes in. Direct Selling is the most practical solution to self-employment for youth and more so for women. Due to the nature of Direct Selling, for example, women can easily carry on their day to home obligations while conducting sales.

On the other hand, Direct Selling offers secondary or alternative revenue for employed women and with growing use of digital platforms in Africa, this is a most flexible yet lucrative avenue for women and youth in Africa.

The reason is simple, Direct Selling uses a model that is not dependent on traditional trading approaches.

“Direct Selling is a sales channel used by companies to promote their products away from a physical retail location and directly to the end consumer primarily relying on word-of-mouth promotion from existing users,” explained Biram Fall, the Regional General Manager of QNET in Sub-Saharan Africa.

In a recent statement availed to the media, Fall explained that the future of Africa’s economy is hinged on remote work and gig opportunities.

“How well digitization is integrated into the current economy, allowing businesses to leverage their digital commerce infrastructure and local know-how to provide new gainful income opportunities, will be key and Direct Selling is leading the way to this ecommerce revolution,” he said.

To better adapt to these changing dynamics, even traditional businesses are moving from physical locations to digital sales. Take the banking industry for example, in Tanzania, banks are now pushing for their customers to use alternative channels like internet banking, sim-banking (bank services via mobile phone) and placing bank agents closer to their customers.

Similarly, Direct Selling allows women and youth to employ and conduct sales on digital platforms or directly to customers via word of mouth.

In East Africa, like elsewhere in the World, there is increased use of the internet and mobile smart phones. Overall speaking, the global digital market for goods and services is expanding at unprecedented rates which in turn means women and youth in Africa can utilize this development to increase their household incomes.

According to a study conducted by Trade Mark East Africa TMA (2020), interviewed sample groups across East Africa proved a huge increase in digital trading. For example in Uganda, 91 percent of those sampled said they made online purchases in 2020, in Kenya 86 percent answered yes and 81.3 percent of persons interviewed in Tanzania also said they have made purchases on one form of digital platform or another.

Given these factors and considering the widespread use of mobile money platforms, Africa has been projected to be the new frontier of direct selling.  The region has one of the highest 3-year CAGR at 6 percent.

“Locals are adopting digital technologies exponentially, boosting productivity and employment opportunities as e-commerce opens up new prospects for businesses,” reports the World Bank.

When it comes to empowering youth and women, offering self- employment through Direct Selling is only one way that QNET is supporting vulnerable groups. Notably, the company was this month recognized by the CSR Times Awards with Silver Award in the Livelihood category.

The award was given for a QNET led project titled Economic Empowerment of Women. The project has been carried out in Eastern India through Microenterprises, since 2018 in partnership with local organizations.

Through their collaborative efforts, the organizations have helped almost 10,000 women in rural Bihar, Jharkhand and Odisha by helping them set up their own microenterprises.

Women participants were trained with the relevant technical and business skills necessary to develop a microenterprise and each state established self-help groups to guide the women’s economic independence.

Direct Selling Resilience During Pandemic

As mentioned, lack of capital is a major constraint for women and youth self-employment in Africa. However, even with capital access, it is vital for these vulnerable groups to have sustainable options for their investments.

Given the wary condition of the global economy caused by the Coronavirus, almost all sectors of the global economy suffered and are still trying to recover. Even large enterprises are reeling from the Corona pandemic induced global economic slowdown, making of great significance the any national and non-governmental support to vulnerable groups to urge recipients to invest in Direct Selling options.

The reason for this is the fact the Direct Selling industry not only proved resilient but even experienced growth during the toughest times of the pandemic. Hence by investing in this sector best guarantees women and youth have a sustainable source of income.

According to the International Monetary Fund (IMF) the global economy shrunk by 4.4 percent in 2020. In that same time, the World Federation of Direct Selling Associations (WFDSA), shows global direct sales increased by 2.3 percent year-on-year, from US$175.3 billion in 2019 to US$179.3 billion in 2020.

The report shows the 3-year Compound Annual Growth Rate (CAGR) for Direct Selling is rising despite the devastation caused by Covid-19. For example, in line with these projections, QNET, a leading Direct Selling company, experienced a record-breaking growth of up to 65 percent in some African markets.