Aisha Pandor - Afrikan Heroes

South African Cleaning Services Startup SweepSouth Expands To Nigeria, Others

October 4, 2021

Aisha Pandor, co-founder and CEO of SweepSouth

South Africa’s “Uber of cleaning services” SweepSouth has expanded to Nigeria under the name SweepSouth Connect. Customers can book a pre-vetted household or outdoor service professional at any time using the on-demand connect platform, which provides a convenient and reliable connection based on trust.

“SweepSouth Connect is introducing a unique approach to on-demand services that are driven by passion, technology and continually learning from useful data.

“We are committed to making a positive impact on the lives of domestic workers, trusted services providers and the cleaning industry in Nigeria,” the CEO and co-founder of SweepSouth, Aisha Pandor, stated.

Here Is What You Need To Know

According to a statement from the company, it will launch its services in two Nigerian cities: Lagos and Abuja, and it has teamed with one of the leading cleaning organizations to provide quality services.

Victoria Island, Ikoyi, Lekki, Maryland, Ikeja, Surulere, and Yaba are among the regions in Lagos targeted for access to SweepSouth Connect products, according to the announcement.

The services would be available in Apo, Wuse, Wuse 2, Central Business District, Maitama, Garki, Asokoro, Gwarimpa, and Kubwa in Abuja.

In Nigeria, the company intends to provide a variety of on-demand services, including cleaning of the bathroom, kitchen, bedroom, and other common rooms of the house.

Office and industrial cleaning, post-construction cleaning, and facility management and maintenance are all included in the commercial cleaning service. Sanitation and decontamination, decluttering, and pest control will be among the other services accessible in Nigeria.

SweepSouth began its home-cleaning services concept in Kenya in 2020.

SweepSouth’s Expansion Outside Of South Africa Comes In The Wake Of The Country’s Compensation for Occupational Injuries and Diseases Act (Coida) Demanding Benefits For Domestic Workers

In April this year, South Africa gazetted new rules under the Compensation for Occupational Injuries and Diseases Act (Coida) that will see domestic workers compensated for occupational injuries and diseases suffered by them in the course of their employment.

The new rules also grant domestic workers the same benefits that are payable to all other injured employees.

Perhaps the most interesting part of the new rules is that from now on, all domestic workers in South Africa must now be registered with the South African Department of Employment and Labour, the body in charge of industrial labour in the Southern African country.

The penalties for non-registration are likely to begin after the end of March 2022.

Those would be affected most are in-home service startups in the country, such as SweepSouth. This therefore partly explains its international expansion efforts.

SweepSouth released its annual Report on Pay and Working Conditions for Domestic Workers in Africa earlier this year, for the first time adding Kenya and Nigeria.

According to the survey, roughly two out of every five domestic workers in Nigeria have lost their jobs as a result of the pandemic, and 48 percent are single parents, with 65 percent serving as the household’s primary income. With such sobering figures — especially in a country where domestic employees are exempt from the National Minimum Wage Act — Pandor is cautiously optimistic that his company’s entry into the market would improve their lives.

“Kenya appealed to us because it felt like an in-between in terms of culture, market segment, and dynamics, and also smartphone and internet penetration when compared with West Africa. And Nigeria is a really exciting new venture that we hope will serve as a base for further expansion into the West African region,” commented Aisha Pandor on the expansion.

Last year, at the heart of the coronavirus pandemic, SweepSouth launched a R12m fund in support of workers under its care.

South Africa Throws Regulation In The Way Of In-Home Service Startups

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

Section 12J Is Inspiring New Funds To Launch For Startups In South Africa

February 4, 2021

When Aurik Capital, an investment company in South Africa, launched its $6.6 million investment fund for startups in the country in 2019, it knew who it was targeting. It was not targeting oversea investors on whom so much resources would have to be spent in convincing to come invest in South Africa. It was targeting South Africans who wanted to run away from the country’s heavy income tax regime. A regime so heavy that for every 1 million rand ($55k) South Africans earn, they must pay over 400,000 rand ($22k) to the South African Revenue Service (SARS), the national tax collector. As a venture capital company registered under Section 12J of the country’s Income Tax Act of 2009, Aurik would offer one best way of avoiding the payment of the humongous amount. And it works like this: if a South African chooses to invest 1 million rand into Aurik, they will pay no tax. The system has been so successful that as at 2019, over 165 of such Section 12J funds had been registered. The assets under the funds’ management had also risen from R3.2 billion ($213m) to more than R6.7 billion ($448m), in 2019 alone. The unexpected increase had been attributed to more businesses and banks in wealth management advising their customers to make use of the scheme.

But then, there is a big decision South Africans investing through Section 12J would have to make: the venture capital companies would, in turn, invest their funds into startups or other permitted ventures (which are usually highly risky and long-term projects). They would also have to wait for at least 5 years to get back (if at all) their earnings, alongside the accumulated profit, if any.

Simplifying Section 12J, In Full

In simple terms, Section 12J of South Africa’s Income Tax Act of 2009, allows investors who make investments in approved Venture Capital Companies (VCC) — that then invest in qualifying small companies — a tax deduction.

Thus, by investing in a Section 12J venture capital company, the investor not only qualifies for a full deduction of the total investment amount from their taxable income in the relevant tax year, but they are also indirectly supporting the South African economy and the growth of local SMEs. Section 12J is similar to Venture Capital Trusts (VCT) in the United Kingdom, which allow individuals with high net worth to save tax and instead invest in a VCT, which will then invest in startups.

By operation, Section 12J follows this path:

A South African tax-paying entity approaches a VCC with its investment.

The VCC accepts the investment for investments in its portfolio companies and issues the investor with a certificate for the amount invested.

With this certificate, the investor approaches the South African Revenue Service (SARS) and presents the certificate. The certificate empowers the investor to deduct the full value of the investment from their taxable income in that tax year.

Section 12J is so attractive to investors that using it investors can offset any tax on capital gains incurred from the proceeds from the sale of an asset. What this implies is that if in the current tax year a South African taxpayer has a capital gains tax case, the taxpayer will use a portion of his/her income to make an investment in a Section 12J business and write off a portion or all of the tax on capital gains owed.

This explains why there are, today, many VC firms in South Africa and why South Africa collected more than 21% of all VC funding deals in Africa between 2014 and 2019, whereas Nigeria only received 14% of the deals, even though Nigeria is the continent’s largest economy and has more than 3 times South Africa’s population.

*Section 12J is enabling more investments into startups in South Africa. Source: AVCA*

Kalon Venture Partners And E4E Africa Launch New Funds Under Section 12J

Two South African venture capital funds who have announced newest funds under Section 12J are Kalon Venture Partners, a venture capital company based in Gauteng as well as the newly launched Cape Town and Johannesburg-based E4E Africa.

Kalon Venture Partners’ fund targets innovative digital technology companies/startups, and has previously invested in startups such as Yoco, Sendmarc, Ozow, FinChatBot, Mobiz, Flow and Carscan.

In July last year, Entrepreneurs For Entrepreneurs Africa (E4E Africa), got backed by the South African SME Fund, in a founding investment of R135 million ($8.2m). The VC aims to support business models that bring innovative, agile solutions to critical sectors of the South African economy, including the fintech sector, healthcare and the sustainable agriculture value chain, as well as those with the capacity to scale inside and outside of South Africa. It has also invested in the startup Enlabeler.

“It is great to be part of a structure that can really transfer the experience, skills and contacts my colleagues and I have built up over the years to the next generation of entrepreneurs,” said Aisha Pandor, E4E Africa partner, who further noted that she had been constantly approached by early-stage entrepreneurs seeking guidance, fund and general advice.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

South Africa Section 12J

Airbnb Is Back To Life In South Africa, In A New Partnership Deal With Fast-Growing Cleaning Startup SweepSouth

August 20, 2020

The coast is now clear, in South Africa, for the international home sharing platform, Airbnb, after government lifted its ban on the company on Monday— two months after other accommodation establishments were allowed to operate. With the renewed start, the home sharing platform has gone ahead to onboard local cleaning startups SweepSouth and Propaclean, in new partnership deals, to train hosts and cleaners in Airbnb’s cleaning standards.

*Aisha Pandor, SweepSouth co-founder, and CEO*

“The long-awaited reopening of South Africa’s hospitality industry comes with unique challenges that SweepSouth has been preparing for months. In addition to providing dedicated sanitisation and hospitality protocols training for SweepStars, our online platform has been upgraded to make booking a dedicated option for Airbnb hosts. Guests can now make Airbnb bookings, safe in the knowledge that accommodation serviced by our SweepStars meets with the highest international hospitality cleaning best practice standards,” said Aisha Pandor, SweepSouth co-founder, and CEO.

Here Is What You Need To Know

SweepSouth ‘s new partnership with Airbnb aims to encourage locals’ appetite for domestic travel and third-party accommodation by ensuring that hosts meet the standards of Airbnb’s enhanced cleaning protocols for hosts in South Africa.
According to government’s new rules, only 50% of the “available floor space” of accommodation establishments may be used, with guests observing a distance of at least one and half metres from each other.
By the terms of Airbnb’s new protocol, hosts will have to wait 24 hours between bookings to prevent the spread of the coronavirus.
The new “cleaning protocol” — standardised guidelines for cleaning and sanitisation at Airbnb establishments — also include ventilating rooms, washing all linens at the highest heat settings, spraying chemical disinfectant on doorknobs and light switches, and providing guests with hand sanitiser, disposable paper towels, disposable gloves, disinfectant spray or wipes, and extra hand soap.
Hosts who get an average “cleanliness rating” from guests of more than four stars can choose to commit to the cleaning protocol and get a special highlight on their listing page. “This will let guests know that you’ve agreed to follow a higher standard for cleaning,” according to Airnbnb. Hosts with an average cleanliness rating of less than 4 stars can commit to the protocol, but won’t get the special highlight on their listing until they demonstrate an improvement in their cleanliness ratings.
These measures have been awarded a Safe Travels seal by the World Trade and Tourism Council.
The new partnership will not only work to lessen the stress of those who want to travel locally while staying at an Airbnb but it will also offer additional work for SweepSouth ‘s employees.
In April, while the pandemic was still breaking, SweepSouth established the COVID-19 SweepStar fund to provide monetary support for SweepStars, many of whom are the sole providers for their families.

“The fund, which was aided by an R6 000 000 contribution from the Michael & Susan Dell Foundation provided vital short-term support for SweepStars, raising just short of R12-million to date. However, the international-standard hospitality training which SweepStars are now being empowered with not only expands their independent employment prospects across an array of hospitality sectors but also strengthens their ability to contribute to South Africa’s economy. They are providing Airbnb and the hospitality sector at large with an indispensable cleaning resource,” Pandor explained.

A Look At What SweepSouth Does

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth is a South Africa-based online platform for booking, managing and paying for home cleaning. The startup has also expanded its offering to gardening and pool cleaning, heavy lifting, fixing and maintenance, and most recently, to commercial sanitation.

SweepSouth’s services are currently available in South Africa’s four major metropolitan areas: Cape Town, Johannesburg, Pretoria and Durban.

“We went from the two of us working around our dining-room table — both of us sitting all day and working on this business plan — to going from a few domestic workers we were interviewing ourselves,” Pandor said, “ and even went from cleaning houses ourselves to having 11,000 domestic workers on the platform”.

In 2018, the startup reportedly reached $7 million (R100 million) in revenues.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

South African Startup SweepSouth Secures Funding From Futuregrowth

July 16, 2020

South Africa’s “Uber of cleaning services” SweepSouth has secured an undisclosed amount of funding from asset manager Futuregrowth, making the investment firm SweepSouth’s newest investor, after the startup raised $2 million from Africa’s largest company Naspers, and another $3.3m from Michael & Susan Dell Foundation, musician and venture capitalist Black Coffee and from existing investors Naspers Foundry, Smollan, Vumela, CRE VC (previously Africa Angels Network) in 2019.

“We are uplifted each time we see our SweepStars referred to in this way, as it represents how a positive idea can take shape and can change the negative language that has been so deeply entrenched,” Aisha Pandor, co-founder and CEO of SweepSouth said.

Here Is What You Need To Know

The latest investment from Futuregrowth adds to Futuregrowth’s portfolio of innovative, early-stage growth companies.
The investment would further help SweepSouth achieve its strategic goals going forward.
Earlier this year Futuregrowth invested in Lifecheq, a digitised private wealth management business. In late 2018, the asset manager also made another venture capital investment in Yoco, the innovative technology-driven point-of-sale payments provider

Why The Investor Invested

SweepSouth’s latest investment appears probably easier given that the startup had previously been backed by investors such as Naspers, and CRE VC.

“SweepSouth is an early-stage business disruptor that, instead of solving a Silicon Valley problem, is solving South African-specific problems. The company has taken a large segment of the informal sector, which is one of the biggest employers in South Africa, and formalised it, giving people protection and security in their working environments,” Amrish Narrandes, head of unlisted equity transactions at Futuregrowth, said.

Futuregrowth makes investments from its Futuregrowth Development Equity Fund, a venture capital fund devoted to supporting disruptive businesses and propositions that show strong high growth potential. .

“SweepSouth has played a material role in empowering previously vulnerable informal workers by giving them a voice and the ability to control their destiny because they have flexibility and control over their own time,” Amrish added.

A Look At What The Startup Does

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth is a South Africa-based online platform for booking, managing and paying for home cleaning. The startup has also expanded its offering to gardening and pool cleaning, heavy lifting, fixing and maintenance, and most recently, to commercial sanitation.

SweepSouth’s services are currently available in South Africa’s four major metropolitan areas: Cape Town, Johannesburg, Pretoria and Durban.

“We went from the two of us working around our dining-room table — both of us sitting all day and working on this business plan — to going from a few domestic workers we were interviewing ourselves,” Pandor said, “ and even went from cleaning houses ourselves to having 11,000 domestic workers on the platform”.

In 2018, the startup reportedly reached $7 million (R100 million) in revenues.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

COVID-19: What SweepSouth Is Teaching Other African Startups About Workers’ Welfare

April 10, 2020

SweepSouth, the South African Uber of cleaning services is not one startup that issues fancy and bogus press statement highlighting merely administrative actions taken in response to the global coronavirus surge. The startup has launched a fund to help provide domestic workers within its employ with food and other basic essentials during the lockdown in South Africa.

“Like everyone else, domestic workers in South Africa rely on their income to put food on the table for them and their dependents. But of course, the cost of basic necessities such as electricity and other utility expenses all add up,” says Aisha Pandor, co-founder and CEO of SweepSouth.

“Our research suggests that most domestic workers (over 70%) are single mothers and that many (over 80%) are primary breadwinners. Our annual survey shows that domestic workers spend on average R1,100 on monthly groceries.”

“If these workers aren’t paid during the lockdown, they face worsening poverty and mounting debt. We simply cannot allow SweepStars and their children to be left to this fate.”

Here Is More You Need To Know

Aisha Pandor says at least R4 million a month will be needed to ensure that SweepStars and their families are able to eat and at least meet day-to-day living costs during a lockdown.
SweepSouth has seeded the fund which aims to provide food and necessities to active SweepStars (those who use the platform) and their families and is also negotiating with corporate backers to contribute.

“We are stepping into the breach to help these vulnerable families in retaining their dignity during a testing time for the whole nation, and we appeal to both the public and corporate entities to support us in doing this,” Pandor added.

The launch of the fund has been aided by a R6m contribution from the Michael & Susan Dell Foundation, which invested in SweepSouth in 2019. The aim of the investment into SweepSouth was to promote better family economic stability in South Africa by backing an organisation providing broad access to work opportunities. This initial injection of funds will enable SweepStars to receive weekly financial support in the form of top-ups of between R150 and R450 during the national lockdown period.
Building on this injection of funds, Pandor insists that SweepSouth’s ambitions extend significantly further.

“Our aim is to raise up to R12m in order to contribute to SweepStars’ living costs for a three-month period. Their financial difficulties will extend far beyond the 21-day lockdown, so it’s important to mitigate this as much as possible. We’re calling on all businesses and able individuals across South Africa to join us urgently in supporting these domestic workers.”

Pandor says their platform is negotiating with retailers to secure bulk buying discounts on basic food staples to maximise the buying power of the funds they have available to them. “The issues run deeper than only being able to provide food for these families. We are also gravely concerned about the lack of clean running water and adequate hygiene infrastructure in some communities in which domestic workers live, further posing risk and increasing susceptibility to Covid-19, so it is incumbent on the wider community to support in any way we can.”
The SweepSouth platform is geared to allow customers to continue contributing to domestic workers during the lockdown. The response has been positive, with over 40% of customers choosing to continue to provide support to SweepStars.
As a result, SweepSouth customers have contributed in excess of R100,000 so far. Pandor thanks SweepSouth customers for their generosity and calls on them, as well as all private employers of domestic workers, to continue helping to support those in our society who are the most economically vulnerable.

“Any member of the public who is financially able to assist in keeping these families healthy and fed during this time of national crisis is asked to contribute to the fund via our app. Moreover, if you employ a domestic worker privately, please do your bit and continue to pay them during lockdown — you will have the gratitude of thousands.”

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.