Using technology to spur growth in Africa’s gifting industry

The gifting industry in Africa is a sector that has often been overlooked in terms of commercial attention, despite being estimated to be worth billions of dollars. Chikodi Ukaiwe, the CEO of Show Love, a cross-border e-commerce platform, sat down with CNBC Africa to discuss the potential for growth in this industry and the role that technology can play in driving this growth. Ukaiwe highlighted that while the market size of the gifting industry in Africa is challenging to estimate, it is believed to be around $50 billion, with potential to exceed this figure significantly. He emphasized that gifting in Africa encompasses a wide range of activities, from celebrations such as weddings and birthdays to cultural practices like gifting cows and lace, amounting to a substantial economic impact. While the gifting industry may not receive as much commercial attention as other sectors like retail or financial services, Ukaiwe pointed out that a significant portion of the market operates online, making it difficult to accurately track its size and growth. He drew parallels to the retail market, which surpassed $500 billion in 2018 and continues to expand, as well as the P2P payments and remittances market, which involves moving billions of dollars across the continent annually. Ukaiwe underlined the need for more comprehensive data and reporting to fully understand the scope and potential of the gifting industry in Africa. Show Love's platform aims to facilitate cross-border gifting by allowing users to send physical gifts, experiences, services, or cash to loved ones in different African countries. The platform serves as a marketplace for merchants, predominantly in Nigeria, offering a variety of gifting options such as spa sessions, adventure activities, physical items, and gift cards. Users can create profiles, build wish lists, and share their preferences with others, enabling a social gifting experience that prioritizes personalization and receiver satisfaction. Ukaiwe highlighted the unique aspects of Show Love's model, emphasizing the focus on social interaction, personalized gifting experiences, and mutual gratification for both the giver and the receiver. When asked about competition in the market, Ukaiwe acknowledged the presence of other players in the gift card space but positioned Show Love as a pioneer in social gifting, setting itself apart in terms of user engagement and empowerment. The platform's approach aims to foster meaningful connections between gift givers and recipients, enhancing the overall gifting experience. Reflecting on the broader landscape of tech startups in Africa, Ukaiwe attributed Nigeria's prominence in the sector to several key factors. He underscored the country's large and youthful population, diverse workforce, and infrastructural challenges as drivers of innovation and entrepreneurial activity. Nigeria's market size and complexity present numerous problem-solving opportunities, fueling the proliferation of startups across various industries, including technology. Ukaiwe noted the emergence of successful tech businesses and unicorns in Nigeria, attracting investor interest and highlighting the continent's potential as a lucrative investment destination. He emphasized the current momentum in the startup ecosystem, fueled by advancements in digital payments and cross-border services, creating favorable conditions for entrepreneurial growth and funding opportunities. Ukaiwe shared insights into Show Love's funding journey, revealing that the platform is currently in the midst of a funding round to support its expansion and strategic initiatives. With aspirations to enhance its value proposition and market reach, Show Love is actively seeking partners who share its ambition and vision for growth. The company aims to close its seed round in early 2022, leveraging investor interest to scale its operations and solidify its position in the African gifting industry.