TikTok To Give Kenyans Ksh 227 Million In Support Of Social Businesses

By Soko Directory Team / Published December 7, 2023 | 11:48 am



TikTok

TikTok and Yunus Social Business (YSB), have announced a $1.5 million partnership, aiming to financially invest in selected social enterprises while providing others with training and mentorship on brand building, sales/e-commerce, and leveraging digital platforms for business success.

According to research conducted by YSB in 2021, micro, small, and medium-sized enterprises (MSMEs) play a pivotal role in Kenya’s economy, making up 98% of all businesses and employing 90% of the workforce.

Social businesses – a small subset of MSMEs – focus on social mission at their core, and work to benefit low-income and disadvantaged populations.

The research further suggests that data points to these types of businesses having the potential to contribute 50% of the GDP over the next three years, with social businesses on their own having the potential to employ more than 400,000 people by 2030 with the right support.

However, over a third of these social businesses face significant challenges in growth and sustainability, including raising financial capital and receiving non-financial support such as digital marketing skills training.

Read Also: African Brands Miss on World’s Top 500 as TikTok Registers Fastest Growth

In support of social businesses in Kenya, alongside the announcement of this partnership with YSB, TikTok announced its first investment in BURN Manufacturing with an injection of $450,000. The clean cookstoves produced by BURN use less fuel, cook faster, produce less fumes, and save families $150 per year. It is the only modern cookstove manufacturing facility in Africa that reduces greenhouse gas emissions by 80% and has already reached over 22.5 million people.

The $450,000 cheque was handed over by the Cabinet Secretary of the Ministry of Youth Affairs, Creative Economy, and Sports Hon. Ababu Namwamba, EGH, who was the Chief Guest at the launch event. In his remarks, he highlighted the important role TikTok has played in the lives of users across Kenya: “TikTok has had an impact that extends beyond entertainment and social interaction; it has influenced various aspects of society, education, and philanthropy, positioning itself as an impact organization by providing a platform for individuals from diverse backgrounds to share their stories, talents, and creativity. It has also empowered creators to express themselves, build communities, and find their voices, fostering inclusivity and diversity”.

Hon. Ababu Namwamba also reiterated the impact of the partnership in Kenya and the region: “The collaboration between TikTok and Yunus Social Business (YSB) represents a pivotal effort to leverage business solutions for social good; it will help address the “missing middle” problem for entrepreneurs by providing long-term, low-interest loans and growth support to social businesses, small and medium enterprises in Kenya and the wider East Africa region. With the $1.5M partnership between TikTok and YSB, we trust our entrepreneurs will continue to use platforms such as TikTok positively, encouraging innovation and economic growth”.

Other social enterprises to benefit from this partnership include Ndivisi Enterprises and ED Partners Africa amongst others; they will get access to digital skills training, resources, and brand-building mentorship as part of the offering.

“This #TikTokEmpower partnership with YSB represents a transformative opportunity to empower entrepreneurs, address social challenges, and drive sustainable economic growth in Kenya and East Africa. We have seen the profound impact and real-world opportunity that TikTok brings to small businesses around the world, and we are proud to foster this entrepreneurial spirit and digital innovation in Africa. The creative economy is a key priority for Kenya and this is the time to amplify these opportunities as we celebrate Kenya@60”, said Fortune Mgwili-Sibanda, Director of Government Relations & Public Policy at TikTok in Sub-Saharan Africa.

Yunus Social Business’s Regional Director for East Africa, Susan Ngalawa notes that while the organization has a strong legacy in social entrepreneurship models, this partnership signifies a strategic shift towards embracing digital innovation to empower aspiring entrepreneurs. “We believe that social businesses hold solutions to some of the most pressing problems of our time, but they cannot deliver or scale those solutions alone. This collaboration with TikTok is designed to help overcome specific social business challenges. For example, by providing them with direct financial support, upskilling their teams in digital marketing to strengthen their position in the digital economy, and giving them access to markets so that as the social businesses grow, their impact can grow as well. We look forward to this opportunity.”

This partnership stands as a testament to TikTok’s commitment to supporting Africa’s entrepreneurial ecosystem, creating opportunities for individuals to make a difference in their communities. TikTok and Yunus Social Business are united in paving the way for a new generation of social entrepreneurs, leveraging the power of technology to drive positive change and sustainable economic growth in Kenya and East Africa.

TikTok will also be showcasing at the 2023 Youth Konnect Africa Summit hosted at the Kenyatta International Convention Centre between 8 – 12 December 2023.

Read Also: Here Is How To Make Money On TikTok In Kenya




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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