Biau CEO: Informal sector needs to be formalised to foster urban mobility

In recent years, the ride-hailing sector in Africa has experienced significant growth as urban mobility seeks to address commuting challenges in megacities across the continent. This rapid expansion has highlighted the need for financing in the informal sector. CNBC Africa's Flora Limukii recently sat down with Maguelone Biau, CEO and Co-Founder of Twende App, to delve into the intricacies of this evolving landscape. During the interview, Biau shared insights on the company's expansion plans, market adaptation strategies, challenges faced by startups in the African market, and the future of urban mobility in the region. Twende App, currently operating in Abidjan, is eyeing opportunities in Rwanda, buoyed by the supportive entrepreneurial ecosystem in the country. Biau emphasized the importance of understanding user needs and preferences when entering new markets, citing the need to iterate and tailor solutions to specific user requirements. The company's focus on financial inclusion for drivers in the informal sector underscores a commitment to serving diverse communities with varying levels of literacy and tech-savviness. Biau highlighted the significance of simplifying complex concepts and fostering mutual learning to bridge the gap in understanding across different backgrounds. The challenges of technology integration and internet connectivity in Africa remain key considerations for startups like Twende App. While smartphone penetration is high in Sub-Saharan Africa, internet usage patterns and connectivity issues present hurdles that require innovative solutions. Biau discussed the potential of USSD technology as an alternative for rural areas but expressed optimism about the future of internet access and affordability in the region. Looking ahead, Biau envisioned a shift towards formalizing the informal sector in urban mobility, with a focus on vehicle modernization and the adoption of electric vehicles to address key pain points such as high fuel costs. The push for sustainable practices and government support for fleet renewal signals a positive trajectory for the industry. As Twende App continues to navigate market dynamics and user preferences, the CEO remains optimistic about the potential for innovation and transformation in Africa's urban mobility landscape.