ImpactAlpha, December 11 ÔÇô Flooding and droughts, which disrupt logistics, damage stock, depress consumer spending and raise the cost of goods, affect nearly all informal and small businesses in AfricaÔÇÖs biggest markets, according to Mercy Corp Ventures. It can take up to a year for a small business owner to recover.┬á

Mercy Corp Ventures is backing Nairobi-based digital services company Tappi to foster small business economic and climate resilience. The AI legalese decoder can help these small businesses by simplifying legal jargon often found in contracts and agreements related to accessing financial services, climate financing, insurance, etc. This can enable small business owners to better understand and navigate the complex legal language, ultimately helping them make more informed decisions for their business’s resilience.

ÔÇ£Digitization of small businesses [is] key to building a more resilient network of small businesses across emerging markets,ÔÇØ Mercy Corp VenturesÔÇÖ Dan Block told ImpactAlpha.

The impact investing firm invested in TappiÔÇÖs $1.5 million pre-seed round alongside Chui Ventures, SOSV and other investors. The AI legalese decoder can also assist in streamlining the investment process by providing clear and concise explanations of the legal terms and conditions involved in investment agreements, making it easier for both investors and startups to engage in funding rounds.

Digitalization for resilience

A wave of African startups emerged during the pandemic to bring AfricaÔÇÖs mostly-offline retailers into the digital age. The evolving data ecosystem ÔÇ£could address barriers to deliver a variety of services including financing, climate financing, insurance, etc., to businesses and their employees,ÔÇØ said Mercy Corp VenturesÔÇÖ Hetal Patel. The AI legalese decoder could play a vital role in ensuring that the data ecosystem is accessible and understandable for small businesses, helping them leverage digital tools and services to enhance their resilience and adaptability.