Episode 34 — transcript

Kenya Was Importing Building Materials. She Decided to Make Them Here | Angela Mutethya MZITO Africa

This transcript is generated automatically by YouTube and has not been checked by a person. It misspells names and mishears words, particularly around Kenyan English and company names, so read it as a guide to the conversation rather than a quotable record. Each timestamp opens the video at that moment.

0:01 [Music] Yeah, greetings ladies and gentlemen and welcome to episode 34 of the African Do podcast. Uh today we we delve into the world of construction. Interestingly enough uh for from a very unlikely construction person but in construction nonetheless. And today I'm very priv privileged to have Angela Mutedia who is the CEO is right is the CEO founder and CEO of Mito Africa Limited and we're going to have a very interesting conversation about construction materials and construction chemicals uh which is what ZTO Africa Limited do.
So Angela welcome to the African Duke.
Thank you so much. Thank you for having me. I am quite honored. Excellent.
And congratulations on your top 40 under 40anti.

0:52
It's it's it's I think you're the first guest on that very uh exclusive list of top 40 under 40 countries.
Thank you very much. Thank you.
Excellent. Angela, let's let's um we like to start behind before we we come we we we will come to but let's start back a bit. So you're clearly under 40. Yeah. And you are walking this entrepreneurial journey.
Mhm.
So where does it start? First of all, who is Angela?
What's your background? What did you study? And how do you find yourself in this space?
Okay. So let me start with an introduction. My name is Angela Media. I am a child of God. I am a businesswoman, a mother, a wife, and I wear several hats.
Yeah.
I am what I would like to say a born leader.

1:48
Mhm.
By order of birth by nature.
Okay. So, you're the first born. By order of birth, you mean you're the first born.
Firstborn and first grandchild. Okay.
In a family of many.
Um, and so that is who I am and a creative by heart
and a very driven entrepreneur. I feel like I was born for business and that's why I've been doing it for quite a bit of time now.
Excellent.
Yes.
So, did you study business?
Yes, I studied business as my second degree with a specialty in marketing.
Which was the first degree?
Actural science.
So, you studied acturial science. Tell us about that actural science story because I've had bits and pieces of it and and it's quite an interesting one. Yeah.

2:32
So, after high school um it was a case of what do you do? At the time I was running a business that was called Ola Fashion House and I was a fashion designer self-taught by my grandmother. So it was between learning from TV, a bit of online and a lot from my grandmother. She's had quite significant influence in my life.
And after school it's a case of I want to do fashion design. My dad is like you're not going to be a tailor in my house. You will not be a tailor in my house
and these are the marketable courses. And at the time was such a big thing. It's like it's marketable. There's a good job market. That's what you're going to do.
Mhm.
And that's what I ended up doing up until I dropped out in fourth year.

3:17
And where was this? Where were you in J?
So acturial science is a 4year course or
it's a four-year course that's followed.
You dropped out at fourth year.
So tell us
the rale
tell us the rale of of dropping out at the end. Yeah. And um well it had been quite a bit of a journey Leonard and
it's you're constantly forcing yourself in an area in a space
despite knowing you're not supposed to be there
and
it's very easy to say where Malisa too you get the degree
but after you get the degree you have to get professional papers as well
because otherwise you could easily just transition into anything else. you could end up being a underwriting or other things that would not necessarily be what actural science was marketed for.

4:08
So I did the course and at fourth year I was running a very successful business at the time.
Okay. Your fashion business.
Yes. My fashion business. And I remember it was close to a time we were going to showcase. I was going to showcase my designs and artists. And how it began is I asked for a break. I was like I'm just going to take
one semester off. I never went back.
And you asked who?
My mom.
Folk. Your mom.
My mom.
Okay.
Yeah. And she could see she could see the internal turmoil that I was going through because Yes. It's
not the easiest of course. And yes, I could have finished, but I also didn't want to.
Okay.
Yeah.
So, you you you throw in the towel at year four. How's that conversation on the home front with the folks?

4:52
Yeah.
Tough. I think it was even tougher with my extended family. Yeah,
because we grew up in a very tight-knit family. So there's a larger family that had 12 families. So I will put it as the Mind family that has 12 families. And of this family, my grandfather is one of the 12.
Okay.
And in now that smaller unit, there's five families.
Yes.
That's in Duno family.
And in those five families,
everyone's in your business.
Yes. Yes. Yes.
Yeah. The aunties are like, "Don't worry, we'll talk to her. niece the actuary.
We're waiting for her.
They're waiting to hold her on a pedestal as my niece the actuary. And here she is.
And here she is quitting
quitting at a case of I'll talk to her. My grandmother is like all come

5:43
leave her to me.
Come to me.
Leave her to me.
Yes. I put her in line.
Yeah.
But after I spoke to her, she was one of the people who are like h can't have a point. So when are you going to go back to school?
So do you go back to school?
I did go back to school.
And what do you choose to study now?
Business.
Okay.
Yes. So I went
Where did you go?
In KU. I went to KU.
Okay.
So KU had a flexible program that allowed me to take the online course and only come to school for coursework, cuts, and exams. So it's a digital that's just when they were launching this digital program. So it fit rightly with your life. Yeah.
Perfectly with what I was doing. I could still run my business and I could still go to school and it's something that I thoroughly enjoyed cuz it made sense. I've been experiencing these challenges as a young person doing business and I'm like makes sense. Pricing, distribution, like all of these things are now practical and meaningful to me. So, I'm not just studying it for the sake of getting the degree, but I am actually

6:44 getting skills that I can apply to what I'm doing.
Okay.
Okay. And how long does that take you? Uh it took me 6 years.
Okay.
Cuz I also kept defiring. I defied twice. And this is because now I had met my husband.
Yes.
Gotten two children in this process.
And I graduated in 2023.
Okay.
Yeah.
And
and they are all there.
Yes. So great. You you you've become a mother. You've started actual. You have left it. You've gone into business which you're enjoying thoroughly. And then is Lola there today? It's not what you do today. It's not why we know you. So what happened to Lola Fashion House?
So when I was starting Ola, what happened is
it was Ola. Ola fashion. Yeah. So I think a few other people knew me as Angela Ola cuz I really tied the personality of the business and the brand to my personal um business. And in that time I realized, okay,

7:42
things don't go wrong, they start wrong.
Yes. So there were no structures that could hold the business together at that point in time
and closing the business was quite tough because it was also a sense of do we take a break? Is it the right industry? Is there a market size that can actually accept and consume made in Africa goods or made in Kenya goods? Um and is it significant enough? Are we doing it in the right way? is what people wear every single day or am I designing as well for the sake of designing because I'm good at it
without really having a market and space that can consume and sustain me right so yeah closed Ola
it was within the same line because we'd started exploring home goods now cuz it was the offcuts that we have can we explore home goods can we explore um textiles that are used in the home and that's how my second business kapulango was born

8:34
okay what Capuangu was a collection of African handmade goods. So just off the back of Ola, Capuangu was born. And we would make it started with small things, cushions, baskets, picking and curating pieces. Every time I travel with my husband to just pick, collect, curate from across Africa and now realize there's a space and market for it.
Curate them for what? For use.
Curate them for home use.
For home. So wall baskets, home decor. Yes. That's how that was born. And now it ended up evolving into home renovations. Okay. Because you would find a space and someone tells you, "Yeah, it looks nice, but and I think one of our first clients was actually Meta. They have not
I'm trying to Yeah. They have a space on

9:20
It's a It's like a hub very close to Meta. Meta, right? M E Ta.
Yes. Meta.
The place where Moraice We've had Moraurice as a guest. He used to work there. Correct. Set up. Yeah. I said Meta and I'm thinking Facebook but yes Meta Meta Lab because we did the wall baskets and we also did the Africa map installation because they wanted a feel of made in Africa but it also involved a bit of renovation. So learning as we go and it's a case of okay so can I get a specialist who does this
mix it with what we already have to now give the client
one cohesive made in Africa look
and when we started it I think there was only two or three people who are specializing in that made in Africa look

10:06
okay
heavily popularized it um through Instagram
okay
started at zero I think by the time Capuangu was coming to a close we had about 10,000 followers had garnered more than 2,000 customers from different places in the world and that's why it ran.
Why does it come to a close?
So it comes to a close last year in 2024
and that is because what it evolved to was more of the construction side.
Excellent.
Yes.
How did it evolve into construction side?
It evolved into construction because now we started taking minor renovation works.
Mhm. hiring teams that were specialized in construction works, hiring contractors, hiring fundies, hiring specialists to now build this cohesive

10:54
role.
So we ended up doing more of that
as opposed to what the core business was.
Okay.
Please remember that during this whole time it has been running businesses based on interest and then coming in to build the structures below. Yeah.
So that is how I found myself within this space and
that's how
okay
and how exactly was born because you can work with with contractors you can get into minor is it right to say minor interior design?
Yes minor interior design.
But how does that then transition to a manufacturer of of chemicals construction chemicals?
Curiosity. Okay,
I know you spoke about it before the show,
but the curiosity of how are these products actually made

11:51
because it's products use because of a problem. These are products that we use. So very many times if you handle renovation works there are different people who handle different levels
but at the point of product use very many people don't offer product guarantees.
Okay. So you will find that after you are done with your works
if the products fail
say if it's waterproofing wax and there's an issue or there's upward seepage or rising dumpness or even a plumbing issue that leads to a larger waterproofing issue. The client holds you accountable.
Then you have to ask yourself what is the root cause of this issue. Is it how the installation was done? Is it the product use? Is it how the products were used? or is it actually the product? And now this deep dive spiral led into realizing

12:45
before we get into the detail of that maybe give us an example client comes
and you do what that fails so that we can understand it better.
Okay. So there's a project we did on Raptor Road.
Yes. And I remember we were using a very specialized type of tile and at the time I wasn't very conversant with tile adhesives which is one of the products we manufacture today.
And so immediately the tiling works were completed. I'm thinking okay great done. We are about 2 weeks out to hand over this project.
But as we progress before all the other works are done
tiles start popping up
falling.
Wall tiles start falling. I'm like
we literally put these things up the other day only to realize that the mix ratio of sand and cement

13:37
with tile adhesive. So the tile adhesive is like a few bags mixed with a high ratio of sand and very little cement. So because of the sand and the little bonding strength that is within that installation. So you have before you've handed over a challenge with the tiles. M
so that was one of the examples. Another one was drainage.
How the drainage works were done by the contractor that we engaged ended up bringing a bigger issue in a customer's kitchen.
So now you have to undo the entire thing because it went wrong before the point of installation.
And so in that deep dive spiral of trying to understand what is a challenge because building is one thing. The longevity and how long your build lasts is a completely different issue.

14:24
But many people are very focused at the point of hand over.
You want to hand over the project. But you can hand over the project and in 3 months
the grout lines are completely out
or you've just moved into a home. Yesterday I was listening to a friend tell me I've literally moved into this house like less than 6 months ago. I'm like, "Yeah, because everyone is so focused on the point of handing over that I hand you over a property that looks good,
but won't last you too long."
Yeah.
Within the first year, you've already done three, four, or five minor renovations. And by year five, now you're handling the deeper, heavier works.
And most of that actually boils down first to the product, then to the technique, then to the workmanship of how things were done. So it was literally a good nice progression and boiling of things that led to the birth of music.

15:21
Interesting. Do you did you feel that there was an element of
the quality of products that are sent to the African market?
Yes,
there was.
There was and there still is.
Uhhuh.
Yes.
Expound on that a bit. So I will not mention names but very many popular brands have had a challenge because once you bring your product into the market there's also the issue of counterfeit.
Yes.
So you will find that if your ceiling or your packaging is not one use
will be told [Music] per bag. Whatever these other guys feel there you don't know.
Yeah.
And they will seal it back with um there's a thread. Yeah.
And that product goes back into the market.
We have not gotten to the point where we actively push and demand for good quality products and I think that has what that's what has been our edge in getting the level of acceptance that we have because as much as we are looking at the cost in terms of value we are deeply obsessed with the quality of the product. A few years ago, because of my my restaurant construction work, I um I of course deal with a lot of designers,

16:37 interior decorators and stuff. And I remember speaking to an architect
who had gone to to China like a lot of um um Africans and Kenyans were
when they're doing even small construction projects
and he was really not impressed with the with the stuff that he was being shown you know
and then the Chinese guy so he kept on telling him but all this is is it's quite crappy it's not bad but it's not what I'm looking for I'm doing a high-end development and kept kept saying and then he says and then the Chinese guy told him he says he says that in his Chinese accent he says
you no want for Africa
you know so he says you want for Europe and he found that to be so telling and I I think that's the problem

17:25
yes
but there's a certain
there's a certain I think global outlook that a substandard product is okay
for and I'm glad that we are beginning to see push back against that thinking. So
Mhm.
you've made all this discovery.
Uh but what takes you to the stage where you you shut down Capuangu and you now set up
so started while Capu Langu was still running. So for about a year ran both businesses consecutively
and at the end of the day at the point we closed it was during a meeting with my husband
who happens to be the chairman of our board.
Mhm.
So not our board our group of companies
and he said let's boil down to the numbers.
Do the numbers on this side. Do the numbers on this side. Do a basic cost calculation. How long can we sustain this running the way it is? and what's a growth trajectory and what other verticals can we build onto for this business to grow

18:30
visav let's do another calculation on this other side look on this other side and you're literally it's now on a scale
do you want to run this that has x number of multiple verticals and then rebirth this business at the point where we can sustain both and I remember on that day we were working from kofi cuz we couldn't see each other
he was on his side piss that I'm not seeing the gist of the numbers and I am on this side saying we can run both and fund both and make both work at the same time
and I think by the end of the day when we calculated the numbers it was a case of make the call
make the call because at this point you're making an informed decision
right it's not a decision based off of what you feel or what you think it's a decision based off of what will you be grateful for doing in the next 5 years.

19:25
Sounds like your your your husband should also be a guest
issue
on this podcast. We'll have that conversation after. That was very structured thinking.
He is a very structured thinker.
Excellent. But then tell us now um
you're not a chemical engineer. Yeah.
Neither are you a manufacturing professional.
Yes. But you're now going into construction chemicals first. What do you first? What do you choose to start with and how does that journey look like?
Product development.
What what is
what do you do?
So we had a general outlook and I remember one of the first things we did after now making the decision is to actually pray.
Mhm. And I think we had we mentioned this a while back but we did thoroughly pray and seek God's direction into fine this is the industry and space we are looking into. This is what the market size is in Kenya. This is what the market size is regionally. This is what the market size is in Africa Middle East. Let's at least look at the areas that are

20:35
within our reach first
and these are the possible product options. Mhm.
This is where we think there's gaps.
So, little backstory,
both of us, that's my husband and I, have a very keen background because one of our businesses is actually based on marketing. So, there's the element of the brand, building a brand because you build trust.
There's the element of the product.
Is it a viable product? How much of it could you possibly sell? And what is the size of the market? So we did a categorization of different products and said let's see let's explore and at this time by the way Mito could have been anything.
So what are these products that you're categorizing?
We are categorizing between what's the supply chain

21:25
okay
within the construction space from the point at which stone is mined from the ground
to the point where you have a finished building. How many categories do you have? What's the level of exploration in each of these categories? So think about it from mining,
there's a stone,
there's another vertical from there which could be cement clinker supply
going into now you have a structure. What is required for that structure? There's concrete, there's ad mixtures, there's steel which is very big.
There's sand,
there's sand, river sand,
there's river,
there's river sand within that space. Um, literally think of everything that is used before you get to a complete build. Then there's what goes into the interior finishes and then now there's a proper finishes and fittings all the way to the very end when you can hand over this project to a client.

22:23
And when we're thinking about it in that range, we ask ourselves,
what are the most ignored areas? Mhm.
What are the highest value areas within each of these categories and also what are the spaces where we could bring a level of expertise
and part of our expertise is our understanding of how to build brands because it's what we do for other customers as well. So think nails.
Yes.
Concrete nail.
You either buy a nail one or two ways. one, you could either buy like the 25 kg or the 50 kg bag.
You could buy pieces or you could buy this small yellow and red box that usually has steel nails,
right? It's not been cleaned up or packaged or nicely sanitized
for the market or the space.

23:17
But if you look at what that market looks like abroad, it's also very different because you can see a level of
growth there. And what else would that lead to? Starting with that would probably lead into steel would probably lead into steel manufacturing. Um within this entire supply chain there's retail retail and I've had now many conversation with retailers who are looking to go bigger. So we're like how about this space of retail h what's the challenge? What has the growth been? Would there be a Costco equivalent for retail in Kenya? So what does that area look like? So we thoroughly explored each of those segments
and during that point of exploration is when we came upon construction chemicals.

24:06
If you look at it globally, construction chemicals by 2029 will be at $84 billion
as a market.
9 billion of that 9 billion US of that will be within Africa. go down deeper and ask how many indigenous Africans have explored the space or is it multinationals who come and set up their subsidiaries within Kenya
and the reason why it's packed so much interest is because that's a space that's largely been explored by foreigners then ask yourself why
number one the barriers of entry are significantly higher
because we're also looking at the barriers of entry in each of these segments
if the barrier entry is too low then you know if the barriers of entry are slightly higher then you know that the the volume of people slightly reduces the level of expertise required is going to be higher. Even the amount of investment in terms of capital investment is going to be significantly higher. But then if you do get it right, you have a chance of building something that will not only serve this market but a wider market and

25:20 something you can even export to the Middle East. So that's how
we got.
So let's explore getting it right.
Yes.
How you've decided now you've landed on chemicals through this very elaborate and very deliberate uh route that you took.
So what how does that journey look like? We went to China.
Mhm. You went to China.
We went into China first. We're going into China to explore several things. One, equipment
because now within construction chemicals, there's a different range of products. There's liquids, there's um dry powders, there's a full range of products.
And the time we were taking was specifically to explore what does the actual operation look like?
Okay. What does it need you to do? If you were to explore dry powders, what type of equipment do we need? What type of expertise do we need? If you're going into the liquid side, what type of liquids do we what type of equipment do we need? Raw material. Yes. What raw materials are we looking into? Who are the key global players who are within this space who can help us structure? So we had the good fortune of meeting one

26:35 of the biggest companies um within Europe, Middle East and China.
But we went into their China office.
Yes.
I I think the Chinese can be a bit friendly.
Uh but it allowed us to see what backend operations look like
and they allowed you to see.
They did.
Yes.
Because it was a case of we need support running this.
They're exploring getting into the market as well. Yeah,
they don't have a channel and they're willing to share information because
and knowledge
and knowledge. They're willing to share information and knowledge because whether or not you come and explore my market, I already have such a huge market that I am trying to meet
demand for that I'm not really looking at Kenya

27:19
yet
as viable yet
because also there's too many nuances within each of our markets. But if I do share knowledge with you and educate you about um low VOC waterproofing um applications,
it's knowledge shared. High chances are if we to make a partnership, I've given you an exchange and most likely if I come to you, you'll probably be willing to exchange and reciprocate. So that's how that's how China happened. We were there for quite a bit of time. got to see the full range including of the things we're looking at here. The nail making machines, the steel manufacturing, what a steel manufacturing plant would look like, um dry powders, liquids, um finishes in terms of paving, but then what you said about China is very true. They'll tell you what market are you looking to serve

28:14
because the assumption is if you're bringing it into the African market, it has to be cheap.
Okay. But then our tastes here are changing and evolving.
Yeah.
Yeah.
Okay.
Yeah.
So you get, you learn, come back.
Yes.
We get, we learn, we come back. First thing we did before we left China is we made a decision on the equipment.
Mhm.
And the first product line that we are fighting which is a dry mix motor plant.
Dry mix motor plant.
Yes. Mhm.
And the dry mix motor plant has and the reason we settled on it again was a logical view in terms of how many products can we manufacture with this range of equipment
because you can put in 10 20 million but only be able to manufacture one single product or you could put in that 10 20 million and you're able to remove

29:02
eight or nine products
that you can now build on. Yeah.
So we made the payment for the plant. Came back to Kenya.
Mhm.
Empty where our kids used to ride their bikes
and sat there alone for many days
waiting for the
waiting for the machine to come
and you know sometimes you look crazy
then literally you know you walk
you're paying rent on an empty room.
You're paying rent on an empty room. There's one desk. People are coming in a river.
In a river. Okay. People are coming. You're getting CCTV people, different people are coming in cuz you know it's the planning stage. Um, and you look crazy cuz you're saying the machine is going to go here. We're going to put final finished goods here. This is the flow of operation. The cardex cler will sit here. The

29:52
it's a completely empty room.
Maybe I take you a step back.
Yes.
You're planning what? Because you're not manufacturing. So have you built a team? How are you then planning? You're you're going to mix chemicals. You're not chemical engineers. So who are the people now behind the scenes and what team have you put together in preparation?
Before we went to China, we did engage several consultants.
Okay.
So we had a production consultant whose background was in local consultant
whose background was in manufacturing. We had a chemical engineer whose background as well was in manufacturing of construction chemicals. So we had each of these segments had a backing of several professionals. So as we've come back and we are planning the setup is based on this SOPs that we have created. Yes. These guys have created they've created SOPs. What do workflows look like? what does a plant operation actually look like? So, you have the

30:58 entire thing on paper and you have lots of paper
and that's the template that you're now using.
That's the template that you're using layout factory.
So, by the time um each of these templates is being brought out, we've done measurements because the team in China was also basing their measurements off of something. So, immediately we put the deposit, we know that this is the type of space we would need to begin with. get that space, send it to China, they do the floor layouts, they do the plans. It ties in with what our production Yes, it ties in with what our SOPs say. So, we already know this is a structure and the plan of how the plant will operate and run before having people because once you have the SOPs then you know this is a type of talent that we require for this role. So then we started building the team. First to come on board was our plant and production manager. So he has over 10 years experience within this particular industry. He studied manufacturing engineering locally. He is

32:02
fully certified and someone who has been not only within our space of construction chemicals but in other he worked at Kroce, he worked at Takataka different roles and places that it all brought together.
Okay. Then we started looking for now our in-house chemist because most of our work is R&D.
So listing, checking people's backgrounds, testing them, testing their understanding, their understanding of the machines because our lab has so many machines that I can't operate, but I know what they do because then there's an SOP and handbook that details how to test the tensile strength of your tile adhessive. Um yeah and built a team.
You guys have been uh you're the most organized
entrepreneurs we have had here. You're extremely methodical about how very little. But what I like about what you're saying is something I think we take for granted. Yeah. And we take it for granted as Kenyans. M

33:07
and it's it's I like your story because it speaks very strongly to what I call um I I find that in Kenya we fight with our intellect.
Yeah.
Uh in the sense that we have the people who know how but we lean more towards money as opposed to knowledge.
Very true. But you guys have actually put in your journey of building your business. You have put knowledge on a pedestal whether it's knowledge in brand building which you have yourselves.
Yes.
But you have been willing to buy the knowledge that you don't have in terms of professional service. And I think that's a brilliant template for what you're doing.
It is. And I think I lean into a lot of what I have learned from my husband. But then realize if you think you know everything imagine you don't literally what you said as as you were beginning is a key thing because you realize very quickly you cannot build an organization one that outlives you two that grows three that makes significant impact by yourself.

34:20
Agreed.
Yes.
Agreed.
Yes. So you now finish your I think your your your plant finally lands.
Yes.
Yes. So what are your things? What are you going to make?
What have you decided is is your first product that you're going to push to market.
The dry motor products. These are tile adhesives, grouts, waterproofing, cementicious waterproofing powders and skimming fillers.
Okay.
So those are that's the first product line that we're putting out.
And before we even put out the product line, there's a licensing.
Okay. So we started producing that formulation process and send the samples to send them to Dubai to an independent lab so that whatever the results come back now you're comparing against two things these were the Ke's results these were the results that we got from Dubai does it match h do they tell us we need to improve our product in certain areas before the products go to market

35:18
so it was a very technical period with so many moving parts. Machine lands, we do our first production run, the tears are here because of joy and equal pressure.
But then the first customer buys and everything changes.
Mhm.
Yes.
What what changed? What did the customer
We delivered to the first customer.
And the first product that we put out was our waterproofing powders.
And I had one request. I will not deliver. Delivery is not my job.
Fulfillment is not my job. But for the first customer,
allow me to be the one to take the product cuz it's the first person
who has accepted
to take a chance on us
and he's a friend to date.
Okay.
Yes.
Now, let's come back and leave the chemicals aside and let's talk capital.

36:14
Uhhuh.
It's nice to to to walk that journey of consultants. M
it's not cheap.
Yeah. And it it it draws out. So it's it's it's that boundary you're talking about where you're you're spending cash, you're not generating revenues. So how did you then plan the capitalization of your business to ensure that you can do this very necessary R&D product development
design manufacturing layouts production workflows and all that
and not burn out before you've sold a single thing. Interesting. One of the very first consultants asked us, "What's your burn rate
as a measure of time?"
And we say 12 months. We are way over 12 months,
but we've not broken even yet
and that is expected.

37:02
So, how we capitalize this business was through our dividends earnings from different businesses because we were very specific about not taking out credit very early on in the business before. Number one, we had an MVP. Number two, we had a product viability test and match with the market because the risk is you take out money from different places. If that money is not patient, turns into bad money really fast.
Agreed.
And tanks the entire operation.
Agreed.
So by the time we started Mito, we had an estimate and we knew it's going to land anywhere between 20 to 50. M
and in that sense we then knew that this is where the drawing
this is where the money will come from.
Yes. This is where the money will come.

37:47
So it was again scientific. Yeah.
Okay. Let's come back here and you you you used some terms just just for the purpose of the nonra construction folk.
Yes.
So you said your products are waterproofing.
Yeah.
And that's a waterproofing product. I would assume it's something you would put like on roofs or joints on roofs too.
So there's different waterproofing products. The particular one we began with is integral waterproofing.
So when you are treating water within a build, you're either dealing with water penetration or water permeability.
Okay.
Water permeating through the invisible pores that exist within your concrete
or you have a very evident level of damage or a crack or a joint. Mhm.

38:34
that you have a level of water penetration. So think about waterproofing in two ways.
Either internal so we say
something that you have to treat internally or surface
and the surface one is what is now applied to your wet areas or a facade or like your rooftops. So the levels of treating um sorry waterproofing are very different.
Um you also have two types of waterproofing. You have below ground treatment that goes
anything that is underground. So think of any level of foundation treatment that you're doing your dump proofing courses. Then there's above ground. So anything that comes above ground. Yeah.
So the reason we started with Integral is because we chose to do not really the reverse but structure it in terms of entering through retail first before going into projects to allow us to just get a better understanding of the market. What's a feedback? What are the challenges? So our first product is integral. So integral waterproofing is a dry powder that you mix with your cement and your aggregates to a set ratio to

39:45 allow you to have that level of hydrophobicity to treat your concrete internally.
Okay.
Once you've treated it internally, now comes a second product which are usually applied say to your wet areas, your bathrooms or basementments and those come in two ways. You either get a one component that's a dry powder that you only mix with water or a two component that has two parts that you mix and integrate. These are two products we're launching in 2025, but we decided to do that because it's an everyday product use. Whether you're doing basic repairs or whether you're doing even a singular build, it's a core product within that entire line that you need to you need to have. And then you have tile adhesive which is simple is the thing you that is tile to adhere tiles onto walls or onto floors.

40:37
Then you have grout which is the the material that comes in between the tiles. It's usually white in color. Yeah.
And then you have scheming.
Yes.
So scheming is is what for the sake of the the viewer.
Once you have plastered your walls to get an even level.
Yes. So you need to have something that allows you get a flat even surface before you paint.
So that is what skimming filler is.
It is used to give you a nice level surface, reduce the amount of money you're spending on paints because it gives you one nice even smooth coat and also ensures the longevity with your paint. So, we created a product that is compatible with all paints
because we're not paint manufacturers, and I don't think we ever will be. Um, but a product that is compatible to answer the question of whether you buy this paint or that paint, a product you can rely on to give you a smooth finish on all your walls.

41:36
Okay.
Yes.
So, now you have these products in market. How's the journey been? You have a plant, you're running, you're in a it's up and running, you're now manufacturing. How long has it been? And how is it going?
First of all, it has been an interesting journey. Good journey. Um because again, we had the good fortune of not looking at it in isolation. Has it been easy?
No.
Mhm.
Because one, you're introducing a new product into the market. Nobody knows it. The name sounds familiar and it's literally building trust with every single person you meet. M
so you cannot afford to at any stage in that matrix mess up because it either breaks or builds the trust you have with the customer.

42:20
We have our first product was manufactured in December 2024.
Okay.
21st December 2024 is when our first product hit the market.
Now we have four products in the market which is a four that we have mentioned
and we are in August. We've not finished a year.
Okay. The uptake has been amazing
and I would attribute that to one singular thing. Once you use the product, you'll tell somebody else about the productity
because of the quality.
Excellent.
And where are you now? Where you where where is it available? It's it's in what parts is it Nairobi only product? Have you managed to grow into other towns? And how are you how are you handling the distribution side of the business?

43:02
I think distribution has been one of the most challenging parts of the business. It's been a balance between distribution, people, building the team, getting the right team, maybe having the right team and people leave. It's it's been a tight balance. I will not lie. Uh we are in Nairobi, it's environs, Moranga,
Nakuru, Naasha, Gilgill, and just got a new request this week from Musa.
Okay.
Yes.
Okay. Okay. And you distribute through who?
We distribute.
Who buys your Who sells your stuff? Do you I'm sure large projects you supply directly but uh who who are your day-to-day people?
Our key day-to-day people are hardware outlets and stores. Okay.
Because they have an existing network of customers and we have found it easiest because they give samples. So you're a large scale contractor. You have a hardware store that you trust. You walk in a sample of a test and app. So the key people for us for now have been hardware stores and

44:08
Fundies.
Okay.
Because even the origin of our name Zto came out of trying to build that level of esteem, dignity, and pride in locally made products. Yes.
Cuz when you're in the street and someone says, "Hey Zto," you feel some type of way.
Agreed. Agreed.
You feel some type of way but that's only a nuance that we would know but a message that we can pass across for the meaning. So those have been the people who push and
have built the brand.
Okay.
Yes.
Okay. Okay.
Now let's let's let's talk about the future. Yes.
Yeah. It's something you mentioned that I found very interesting where you say that
you you have an R&D lab.
Yeah. and and that's not a likely thing from um an early stage business if I dare I say so.

44:59
Um so tell us the thinking behind R&D because R&D speaks to a future of growth. So while you comment on R&D also tell let's talk a bit about the future. What do you see ZTO growing into? Um you've highlighted in pieces about your ambitions of growth into across the continent and maybe even out of the continent. M
so tell us a bit about what you see in the future from ZTO Africa Limited.
So we started with the future in mind and then made it granular for now.
Yes.
So when we looked at the space we realized that the highest level of concrete consumption over the next 25 years is going to be in Africa.
And that is why we decided to invest within the space of R&D. Mhm.
We created Zito to be a household brand. So everything from our mission and vision speaks to us being a market industry leader within the next 10 years. And leader means we're top five.

46:00
Mhm.
Whether we'll be number five by 2035 or number one, we will be in that list of the top five.
And the range of construction chemicals is wide. We are currently setting up our liquid plant.
Okay.
Yes. So we started with the dry powders but we knew that by month this whether or not this push will have come because these are products that are highly interdependent.
So what product is on the liquid side?
The water still waterproofing
still waterproofing but the liquid type
yes the liquid type of waterproofing is a key product that we're going to be producing within the waterproofing plant. And then there's now the specialty chemicals because we started with retail. We started with lower spec not lower quality but lower spec everyday use products. But then there is the lower volume higher specialty products that come into the area say of plasticizers ad mixtures concrete ad mixtures.

46:56
Okay.
Yes. So specialty concrete ad mixtures that are not necessarily high volume or consumed within the retail space but then are specifically geared towards projects. What would be one one example
like plasticizers? So ad mixtures simply put or in a simplified way
affect how your concrete behaves. Okay.
The setting time of your concrete the water permeability.
Simple things like
it something like you'd add if you're building an underwater under underground water tank would
No. No. So what is a plasticizer? Maybe that's so concrete ad mixtures are for ready mix concrete.
Okay.
But if you're doing your home underwater underground tank, then there's specialty waterproofing that our liquid plant and our current dry plant can make for you. So you will do the integral treatment and then you will do the application treatment that I was telling you, the waterproofing two-part treatment that would do your underground tank. But now the plasticizers are more specialized towards ready mix concrete which is a

48:06 current obsession. But that's one of the lines that we're looking to explore. We are also looking to explore cement.
Mhm.
So white cement currently is mostly done by about two or three people. We do not locally manufacture.
So what's white cement versus the regular gray cement? We use
color.
Okay. Okay. So it's just a color issue.
It's a color issue. It's literally a color and application use issue. So there's gray cement. You have it in the different grades from 22.5 all the way to 52.5. On this other side, you have white cement with the grades as well. And then now the extra
changes. There's over 15 types of cement. But for white cement specifically is the color and the application.

48:49
For products like the skimming fillers, we use a lot of white cement. It's a key product but we import all our white cement.
Yes. So well I think the key players who have been within the space have not seen that specific market as being significant enough
to to invest in
to invest in but then it is still quite significant and if you look at the area of growth especially for the regional
as a regional look then you're able to see what the market size looks like in the next 3 to 5 years. So these are some of the lines we're looking into. But our vision is that Mito becomes a household brand not for Kenya but for the entire of Africa.
There are countries like South Sudan that have taken samples of Mito going testing trying to see

49:40
and that's the vision that there will be Mito in South Sudan. There will be Mito in Ghana. If you go to Libya or South Africa or Namibia, you'll be able to access and receive Mito because we produce construction essentials.
Yes.
Wow. I mean uh first of all uh I think uh I'm I'm just uh very impressed by the detail of which you the the the way you've been very deliberate about this journey. I think it's um it it it has all the tenants I think for success and I wish you all the very best.
Amen. Thank you.
But uh uh even um I think you you you do espouse a lot of what we feel on this podcast
is what we would like to see more of on the African continent. You build your team locally. You tap into local knowledge. Um and it's something that we hope to see a a lot more of. So, um, as we wrap up, I'd give you a chance to to tell, uh, the the viewers

50:45
where you are, where they can find you, your handles, your your websites, so that anyone who's listening and wants to, uh, um, hear more about Africa can go and read up on you and find out more about the business and hopefully buy your products when they need them.
Yay. Great. So we are available at leading outlets within Nairobi, Nakuru, Gilgill, Nvasha and Moranga. That's leading hardware outlets. Um
that's where you can physically find the product. Our plant is located in Ay River. But we largely advocate for people to go to our partners. These are people who have trusted us, people we have trusted to buy our products. If you want to become a distributor, all our social media handles are misto.build. that is across all platforms. Okay. And our website is www.mzto.build and our helpline is 076964.

51:44
Okay.
Yes. So we will be able to help you and work with you through through that point.
Excellent. Angela, what a fabulous fabulous conversation.
Thank you.
So thank you very much for accepting to come on to the African Do podcast. Thank you
and thank you for what you're doing and what you're building and we wish you all the very best as you continue this journey.
Thank you so much. I'm very excited. I was so happy to read about African do
because then it stands for what is happening the change in the landscape that's coming and the fact that yes, Africans can do.
Exactly. Excellent. Thank you very much ladies and gentlemen. That brings us to the end of episode 34 of the African Do podcast where we tell stories of excellent Africans executing excellently. Thank you very much and we look forward to seeing you in the next episode. [Music]