Speaking to Business Insider Africa, Sacha explained that Ghana had internal economic problems, with high interest rates that made it difficult to build a profitable business in the mid-term.
“As you know, Ghana has had a couple of years with very serious internal economic problems and super high interest rates, so there’s a geo-economic situation in Ghana where we didn’t see a way to build a profitable business mid-term. That was our reason for leaving the market.”
Despite this setback, Michaud emphasised that the situation in Ghana was unique and does not reflect the potential Glovo sees in other African markets. “I think it’s very contextual to Ghana. We don’t see that in other African markets where we operate, but we have to have a road to a sustainable business, and we need to see that. In the short term, we thought it was difficult in Ghana, so we unfortunately decided to move out. But having said that, we were there for a number of years, and the team did an amazing job. We had a very good business there at one point until the macroeconomic situation affected us,” he added.
Glovo’s Bold Expansion in Africa Continues Despite Ghana’s Exit
Glovo’s ambitious plans to double its investment in Africa underscore its confidence in the region’s growth potential. After Ghana’s exit, Michaud noted that the company is optimistic about Africa and remains committed to its broader global ambitions.
“Since we launched in Africa, starting with Morocco six years ago, we’ve invested over 160 million euros in the region. It’s a big investment for us. For us, we call it the investment markets. These are markets where we see fast growth, especially in the short to mid-term,” Michaud explained.
“Generally, I think there’s a huge opportunity for us to operate. I mean, in Africa, many of the businesses have never sold online. So, to digitalise that is a massive opportunity, and also, the society is incredibly digital with mobile payments with everything, so I think it fits in well. I think we’re very excited about the next, let’s say, six years on the continent”, he added.
Glovo’s Strategic Plans for Africa in the next five years
A key part of Glovo’s strategy involves the digitalization of local businesses, helping them to enter the online market for the first time. Michaud shared, “Many of our partners, which include restaurants and stores, and 90% of our partners, not just in Africa but worldwide, are SMEs and small businesses. So, the first way of selling digitally is probably through Glovo. Glovo will continue to provide local businesses with the tools they need to thrive in a digital economy.”
According to him, this comprehensive support helps businesses grow their digital presence and boost sales. “We’re giving them the online tools. So, let’s say they want to do an ad campaign on our platform and increase their orders by 10, 15, or 20%. They can now do that because we’ve given them the tools to do that. They can also manage the return on investment linked to sales,” Michaud said.
Future Expansion Plans and Quick Commerce
Glovo is set to expand further across Africa, starting in major cities and moving into secondary cities. “We generally launch in the largest city of a country and then expand to secondary cities. For example, we’re already operating in 40 cities in Morocco,” Michaud highlighted.
Additionally, the company is keen on growing its quick commerce segment, which includes non-restaurant items like groceries and electronics. According to Michaud, restaurant food is the largest category worldwide, and quick commerce, including non-restaurant items like groceries and electronics, is growing rapidly. Glovo is excited about the potential of quick commerce because it addresses a broader range of customer needs and leverages the existing infrastructure to provide fast, reliable delivery of various products.
“Quick commerce will be bigger than restaurant deliveries before the end of this decade. In Kenya, for instance, the non-restaurant category is almost as large as restaurant deliveries and is growing much quicker,” Michaud revealed.
“We’re excited about the potential of quick commerce because it addresses a broader range of customer needs and leverages the existing infrastructure to provide fast, reliable delivery of various products,” he added.
Before we concluded the interview, I asked Michaud one final question: Which African country has the best food?
