Digital tools help SMEs scale online business, boost revenue

Dar es Salaam. Small and medium-sized traders in Tanzania are increasingly using social media platforms to grow their businesses, turning WhatsApp, Facebook, and Instagram into vibrant marketplaces.

From clothing, cosmetics, electronics, to groceries, entrepreneurs are finding that online channels allow them to reach more customers than ever before.

However, as online trade grows, many face the challenge of managing thousands of customer inquiries in real time. Handling orders manually often causes delays, mistakes, and lost sales.

Manual processing of orders is time-consuming and prone to errors, leading to delayed deliveries or missed sales.

To address this, an automated platform has been launched to transform the way online trade operates.

The platform can process thousands of inquiries simultaneously, confirm orders, and generate digital PDF receipts, allowing traders to manage large customer volumes with ease.

Speaking to The Citizen, founder and CEO of Ghala, Mr Kalebu Gwalugano, described the platform as a game-changer for online entrepreneurs.

“Imagine a trader runs ads and suddenly a thousand customers respond at once. Serving them manually is nearly impossible. Our platform automatically sends order confirmations, product images, and receipts, reducing what could take hours to just about 10 minutes,” he explained.

Mr Gwalugano added that the platform is designed with flexibility in mind.

“Traders can specify the type of customers they serve and even adjust language preferences, such as English or Swanglish. This ensures smoother communication and better customer service,” he said.

According to him, the platform addresses a critical challenge for small traders.

“Many businesses struggle to manage large volumes of online customers. Our system ensures even thousands of clients can be served without compromising service quality, while all transactions remain transparent and traceable for taxation purposes,” he said.

The innovation also has important implications for government revenue.

Under the Finance Act 2022, online businesses are required to register with the Tanzania Revenue Authority (TRA), obtain TINs, and comply with VAT and income tax obligations.

Ghala’s platform generates EFD receipts for each transaction, creating clear and verifiable sales records.

Ms Caroline Clement of Simplitech Limited (Simplify Tanzania), which provides online invoicing software for small businesses, emphasised the significance of this innovation.

“This platform allows traders to issue receipts easily and maintain accurate sales records. It strengthens transparency and enables TRA to assess taxes based on actual business activity, boosting revenue collection,” she said.

Tech expert, Mr Dominick Dismas, highlighted the financial advantages for traders.

“Having verifiable digital sales records makes it easier to access loans and other financial services,” he said, adding that people need to rethink WhatsApp as a reliable platform for formal, documented transactions.

By digitising transactions and providing verifiable receipts, the system ensures that online trade contributes to tax revenue, enhancing accountability and supporting national development.