Jetstream Secures $3M to Boost Africa's Trade Infrastructure

Africa's Trade Challenges and Jetstream's Solution

Between 2000 and 2017, approximately 80% to 90% of Africa’s exports were directed towards destinations outside the continent. This situation has spurred a growing need for African nations to reduce their reliance on commodity exports and prioritize trade within the region. Expanding regional commerce not only diminishes export dependency but also cultivates new markets for goods with added value.

Inefficiencies in African Ports

Despite this potential, Africa currently faces significant hurdles due to its slow and expensive port infrastructure. In some instances, it is actually more efficient and economical for African businesses to trade with overseas partners than to conduct intracontinental trade. This presents a substantial obstacle, and Jetstream, a company headquartered in Ghana, is actively working to address this issue.

Jetstream Secures $3 Million Seed Funding

Jetstream recently concluded a $3 million seed funding round, demonstrating investor confidence in its mission. The round saw participation from both local and international investors, including Alitheia IDF, Golden Palm Investments, 4DX Ventures, Lightspeed Venture Partners, Asia Pacific Land, Breyer Labs, and MSA Capital.

Founding and Core Concept

The startup was established in 2018 by Miishe Addy and Solomon Torgbor. Their vision was to empower African businesses with visibility and control over their cross-border supply chains. Jetstream achieves this by aggregating logistics providers operating at African ports and borders, and integrating them into an online platform.

Origins of the Idea

The founders initially identified fragmentation and a lack of coordination as key problems within African ports. Torgbor’s prior experience at Damco, Maersk’s freight forwarding subsidiary, provided firsthand insight into these challenges. He observed cargo frequently remaining stagnant at container terminals for weeks due to logistical issues.

These delays stemmed from errors and incomplete documentation, insufficient working capital for logistics payments, and inadequate coordination. Furthermore, export cargo volumes were sometimes too small for cost-effective sea freight transport.

Concurrently, Addy was teaching business at Meltwater Entrepreneurial School of Technology (MEST), a Pan-African incubator. Prior to MEST, she worked as a consultant at Bain & Company after earning a law degree from Stanford University.

The Birth of Jetstream

As Torgbor shared his observations with Addy, she recognized the potential for a technology-driven solution. “A light bulb went off when he was talking; I realized these were exactly the types of problems technology could solve,” Addy explained to TechCrunch. “We explored various solutions for about a year and quickly discovered that cargo aggregation generated significant traction.”

Early Operations and Expansion

Jetstream initiated operations in Ghana in March 2019, offering a Less Than Container Load (LCL) aggregation service. This service enabled agricultural exporters to consolidate their shipments into shared sea freight containers. In November of the same year, Jetstream expanded its offerings to include trade finance for customers facing difficulties fulfilling large orders.

Jetstream's Current Model

Currently, Jetstream is offering its internally developed systems for shipment and financing management as a white-labeled solution to its customers.

“Unlike siloed freight management systems, we leverage financing to integrate customs brokers, freight forwarders, shipping lines, airlines, and container terminals onto the Jetstream platform. This allows for comprehensive shipment management and tracking at every stage,” Addy stated. “We are also bringing many local providers online for the first time.”

Revenue Streams

Jetstream’s business model is based on charging fees for freight, clearance, and financial services. Freight charges are calculated per container or per kilogram. Customs clearance incurs a flat fee, varying based on the shipment’s tax category and location. Finally, financing and insurance services are subject to a commission on the value of the goods shipped.

Impact of the Pandemic

The COVID-19 pandemic highlighted existing inefficiencies and coordination issues at ports, leading to increased demand for Jetstream’s services. The company’s logistics service revenue grew by 512% between March 2020 and March 2021.

Addy believes the pandemic reinforced Jetstream’s vision of digitizing cross-border trade corridors and accelerating commerce on the continent.

“We envision a future where trade facilitated by Jetstream’s digital infrastructure possesses a significant competitive advantage in logistics. Jetstream is to cross-border logistics what Flutterwave is to fintech in Africa,” she added.

Market Opportunity and Strategic Location

The market for cross-border logistics services in Africa is currently estimated at $32 billion in revenue and is projected to double over the next decade. Jetstream’s strategic focus on Ghana positions it to capitalize on this growth.

Torgbor, a Ghanaian native, emphasizes Ghana’s role as a gateway for both intracontinental and intercontinental trade, particularly given its leadership in the newly established African Continental Free Trade Area (AfCFTA). Ghana is also home to Port Tema, the largest container terminal in West and Central Africa, with plans to handle one million containers annually.

Key Partnerships and Growth

In addition to Port Tema, Jetstream has secured a major early adopter and customer in an unnamed Asia-based global shipping line. This partnership has driven seven-figure revenue for Jetstream, with the startup experiencing year-on-year growth exceeding 100%.

Addressing Funding Disparities

Female-led startups in Africa receive less than 15% of total venture capital investments. However, the emergence of female-targeted funds is beginning to address this gap. Alitheia IDF, a VC firm focused on gender-diverse startups, participated in this funding round, demonstrating a commitment to supporting women-led teams.

Jetstream’s funding represents a significant win for this demographic, particularly in Ghana, where female tech CEOs are relatively rare.

Future Vision

Addy expressed her hope that Jetstream’s success will encourage increased investment in African female-led teams. “I hope our business growth prompts the investor community to reconsider all the women leaders who are currently underfunded,” she stated.

Jetstream currently operates in Nigeria, with agents present in South Africa, China, the U.S., the U.K., and Europe. The company’s goal is to establish a presence at ports and borders across Africa, covering 80% of the continent’s global trade by 2028.