Unlocking MSME Growth in Africa Through Mutual Value Route-to-Market Models

Articles

7 Jul

For decades, route-to-market strategy has focused on moving products to customers as efficiently as possible. But across Africa, leading companies are beginning to rethink that assumption. Rather than viewing local entrepreneurs simply as distributors, they are designing commercial models that strengthen entrepreneurial ecosystems, create shared prosperity and unlock new sources of profitable growth.

This shift formed the focus of a recent webinar co-hosted by the African Management Institute (AMI) and Mutual Value Labs. Bringing together practitioners from AMI, Mutual Value Labs and Mars, Inc., the discussion explored how mutual value creation can shape a powerful route-to-market strategy – one that expands commercial reach not by extracting more value from existing markets, but by strengthening the entrepreneurs, relationships and capabilities that enable those markets to grow.

At the centre of the discussion was the concept of mutual value creation, a business approach that challenges the assumption that companies succeed only by maximizing value for themselves. As Lucy Keller, Senior Associate at Mutual Value Labs, explained: "Mutual value creation is about solving meaningful ecosystem challenges profitably. Using the firm's capabilities – what businesses are uniquely able to do – to solve a societal need in a way that creates commercial value and leads to sustainable growth."

Rather than viewing community investment as separate from business performance, mutual value creation recognizes that stronger entrepreneurs, healthier communities and more resilient value chains create stronger businesses. Commercial success is not achieved despite investing in society – it is achieved because businesses invest in solving the challenges that constrain long-term market growth.

Mutual Value as a Route-to-Market Strategy

One of the strongest examples of this principle in practice is Mars' Maua program in Kenya. For more than twelve years, Maua has developed a last-mile distribution model that creates opportunities for entrepreneurs in underserved communities and informal settlements while simultaneously extending Mars' commercial reach.

Rather than relying solely on traditional distribution channels, the program identifies local entrepreneurs to operate neighbourhood stock points. These entrepreneurs recruit and support local distributors who bring products into communities that would otherwise be difficult to serve.

Importantly, Maua is not viewed inside Mars as a social impact initiative operating alongside the business. As Lucy explained: "One of the great things about the Maua program is that it isn't siloed. It's considered a proper business model and one of Mars' core route-to-market channels – not a peripheral project sitting off to the side."

This distinction is fundamental. Maua demonstrates that mutual value creation is not a philosophy that is distinct from commercial strategy – it is the commercial strategy. By investing in entrepreneurs and the ecosystems they operate within, Mars has expanded its route-to-market while creating stronger businesses and stronger communities. As Stephanie Ng'ang'a, Africa Strategy Lead and MEA Economics of Mutuality Lead at Mars, put it: "The commercial upside is really about tapping into underserved white spaces and doing so in a way that doesn't just extract value but invests in those communities."

To date, the program has supported more than 3,300 entrepreneurs, while contributing approximately 14% of Mars' Kenyan gum business and positively impacting over 15,000 lives.

Building Markets by Building Entrepreneurs

For Stephanie, the challenge of creating opportunities for low-income entrepreneurs to earn sustainable livelihoods while extending distribution into underserved markets drives the business model. "One of the key principles is that everyone in the chain must earn a living income. We've had around an 80% retention rate and 63% of our entrepreneurs are sole breadwinners, which tells us the model is delivering for them and enabling them to change their lives."

Crucially, the program recognizes that successful entrepreneurs need more than financial incentives. "We work to solve entrepreneurs' non-financial pain points as well. Whether it's health insurance, access to finance or bookkeeping, we partner with others to address those challenges because it's not just about financial capital – it's about human capital and the wellbeing of participants."

These investments strengthen trust, capability and resilience across the entire distribution network, creating benefits that extend well beyond immediate sales.

Mutuality in Practice

As Mars Kenya General Manager Ismael Bello explained:

"One of our key principles is mutuality: if we establish a mutual benefit, it's going to last forever. Maua is a practical demonstration of bringing that principle to life. For us, it's about giving every associate something tangible they can point to that demonstrates what the company stands for."

This illustrates one of the defining characteristics of mutual value creation: the objective is not simply to maximize short-term financial returns, but to build business models that generate enduring commercial advantage because they strengthen the wider ecosystem.

The Opportunity for African Business

AMI shared complementary evidence from its work supporting African entrepreneurs. Drawing on research around owner mindset and business practices, AMI focuses on helping entrepreneurs adopt practical behaviors that lead to measurable business growth rather than relying on traditional classroom training alone.

One example involved Uber Eats in South Africa. By helping restaurant owners strengthen their operational practices and make better use of the platform, participating businesses increased revenues, created new jobs and expanded their operations. At the same time, Uber Eats benefited through higher platform activity and stronger business performance among its restaurant partners. Once again, strengthening MSMEs translated directly into commercial value for the corporate itself.

As global uncertainty increases and supply chains become more vulnerable, mutual value creation offers companies a different way to think about growth. Rather than treating route-to-market solely as a logistics challenge, organizations can design commercial models that simultaneously expand market access, strengthen entrepreneurial ecosystems and build long-term resilience.

The Maua program demonstrates that when businesses place meaningful societal challenges at the centre of their commercial strategy, growth and impact no longer compete with one another – they reinforce one another.

You can watch the webinar recording below.

To learn more about our route-to-market programs, contact Liam Sharkey at liam.sharkey@mutualvaluelabs.com