Can an American SaaS also Make Africa Great Again, and unlock immense wealth in the process? Yes.
Today, November 6. 2024 has been an eventful day in the USA. It got my creative juices flowing, and has prompted me to put my two cents out there as well. I’m venting, and letting the cat out of the bag. Those of you who've read my articles before will perhaps find that there is consistency in my 20 year mad scientist plan. Some will call me Don QuiXote, some will call me outright nuts, again. I just generally have allergic reactions to corruption. But as both an America and Africa lover, my skin is as thick of that of the elephant. So here we go; in the evolving landscape of international trade, ensuring product compliance with national standards is increasingly paramount, worldwide. As an example, Africa's Pre-Export Verification of Conformity (#PVoC) and Consignment Based Conformity Assessment (#CBCA) programs play a crucial role in this process, safeguarding consumers and maintaining market integrity. At Global Inspections Group Inc., we are poised to transform this sector by leveraging cutting-edge technology and AI to streamline conformity assessments across the continent as well. In 2024, we established, and started operating both a B2B inspection marketplace and a SaaS. One is outspection.com, the other we like to call Outspection Pro, our white labelled gateway.
Understanding the Market Potential
Africa's annual merchandise imports are estimated at approximately $500 billion. With PVoC fees averaging around 0.5% of the Free on Board (FOB) value, the total market for these services is estimated at $2.5 billion annually. Hey I could be off by a billion, there is only limited live data available currently (we’re working on this), but it’s an educated guess. Check my previous article on the topic. By capturing just under 7% of this market, we aim to generate close to $170.0 million in annual revenue for our platform within the next 60 months, whilst allowing for the rest of these revenues to stay in the African economy. Am I day-dreaming? Not really. I’ve been at this for thirty years, and I’ve got proof. Are we scaring the establishment? Yes, really. More on this in my next article, November 28. By the by, this strategic focus and unashamed ambition could well position us to achieve a $1 billion valuation, aligning with current SaaS revenue multiples of 5.9x on average. So, I confirm, there are actually excellent returns to be made in pursuing great ambitions and doing good things along the way, such as lowering the industry’s carbon footprint 100 fold. Or I could get shot.
Strategic Expansion in Key Markets
In fact, our journey has already started with a successful partnership with Africa Standards and Certification (ASC) for Nigeria's SONCAP program, demonstrating our deep market understanding of thirty years. 3 days "all-online" instead of 3 weeks via PDFs and Excel spreadsheets, to achieve the same results, speaks volumes. Building on this foundation, we are aiming to empower additional African nations with established PVoC or CBCA programs; a few examples amongst close to 30 others:
Addressing Rent-Seeking and Anti-Competitive Practices
For decades, no news here, the Testing, Inspection, and Certification (TIC) industry in Africa has been dominated by a handful of transnational companies. These firms have established and maintained a system that smacks of rent-seeking behaviour, using their position to extract substantial profits with ever decreasing proportional value. This setup eerily resembles a breach of anti-trust Chapter 13 principles, keeping smaller, more innovative players at bay while stifling competition and innovation. I won’t quote my sources here or point fingers, the evidence is all over Google.
We are simply proposing to fix this, and we’ve already started. By offering a transparent, cost-effective SaaS solution with a network of nearly 1,000 vetted inspection companies across the globe, we are levelling the playing field. Governments can now bypass entrenched oligopolistic practices and take direct control of their PVoC processes, fostering competition and breaking free from outdated tendering models that benefit only a few. This shift not only empowers local economies but also reclaims the sovereignty of nations over their trade systems. It also fosters employment across the globe, giving access to unattainable inspection markets to all of the independent suppliers registered on our platform.
A lean team with big ambitions
Global Inspections Group Inc. is currently a ten-man team, operating with unmatched efficiency and ambition. Our success thus far underscores the power of a dedicated, lean structure. However, to achieve our vision of transforming the TIC industry, we’ll need more resources, and institutional support at the highest level. Organizations such as #Transparency International, the #World Trade Organization (WTO), and the #African Continental Free Trade Area (AfCFTA) and its ambition of Creating "One African Market” ?and the African Organization for Standardization #ARSO (and its 43 member States) will be pivotal in fighting corruption, fostering transparency, and aligning our mission with Africa’s development goals of harmonizing standards and facilitating trade on the continent. We also look forward to securing local support from organizations such as #The Ethics and Anti-Corruption Commission (EACC) for example.
These institutions have also long advocated for reducing corruption, a key barrier to economic growth. By working with us, they can help ensure that PVoC programs serve their intended purpose: protecting consumers from counterfeit and substandard goods, ensuring fair trade, and promoting intra-regional commerce.
Innovative Technology Driving Transformation
Our proprietary SaaS platform (see globalinspectionsgroup.com) offers a comprehensive suite of tools designed to streamline the conformity assessment process:
In addition to our digital platform, and via our B2B inspection marketplace, we have established a global network of nearly 1,000 registered and vetted inspection companies across all existing inspection verticals, certified from ISO 9001 to ISO 17065. This extensive network operates 24/7, offering a turnkey solution for governments, at the best rate, the best skill set, and with a response time convenient to them. By being able to integrate any network, we provide a plug-and-play system that enhances revenue, fosters transparency, and facilitates intra-regional trade and adherence to local standards, while in effect re-instating actual consumer protection.
Fighting Corruption, Fostering Transparency
The inspection industry, for decades, no news here either, has been prey to opaque and oligopolistic practices. In some cases, these PVoC contracts have become so onerous that inspections are in fact rarely performed, undermining their very purpose. Our SaaS is addressing these challenges head-on by reactivating the very core mission of PVoC programs—verifying goods before import to protect consumers and ensure fair trade.
Our alignment with global anti-corruption initiatives and our commitment to transparency in operations positions us as a key player in driving accountability across the TIC industry.
Comparable Industry Successes
Our approach mirrors and respects the success of companies in similar spaces, like #Inspectorio, a SaaS platform specializing in supply chain compliance and quality management. Inspectorio began with a focused team and has grown significantly by leveraging technology to streamline quality control processes. Similarly, #FiscalNote, a platform providing legislative and regulatory data management, scaled by offering data-driven governance solutions. These examples underscore the potential for our “OutSpection Pro” SaaS (under white label) to achieve substantial growth and market leadership.
A Vision for Global Leadership
By strategically expanding our presence in key African markets and maintaining a commitment to technological innovation and operational excellence, we are on a clear trajectory to become a new global leader in this industry. Our scalable model and efficient team structure position us to capture significant market share, delivering substantial value to our clients, shareholders, and all stakeholders.
The Call to Action: Africa is on the brink of a trade revolution, supported by initiatives like #AfCFTA, #ARSO, ?and regional economic integration. We are not just a business—we're a catalyst for change, empowering governments, helping with reducing corruption, and unlocking the continent’s immense economic potential.
I may be wrong, I may have omitted or misinterpreted data, but I’m happy to get challenged! Hey, also, I used a well known LLM to check my spelling and syntax and grammar, but essentially I wrote this myself...
For more information about our services, partnerships, or investment opportunities, connect with us today: [email protected]
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3 个月I wish could know more about SaaS and I would be glad to learn and help in the implementation