Morocco-based B2B retail-tech marketplace, ZSystems, has announced closing a $1.5 million seed funding round which will see it carry out its ambitious expansion dreams.

In a statement by co-founder and CEO, Meriem Benabad, the funding round was led by Morocco-based Venture Capital firms, MNF Ventures (through its MNF II fund), Witamax (through Fund II and III), Cash Plus Ventures, and Kalys Ventures.

“This funding marks a pivotal moment for Z, as we aim to scale operations and bring cutting-edge solutions to traditional retail.

“Our vision is to empower small businesses and unlock growth across Morocco and Africa,” Benabad said.

According to Benabad, the newly acquired capital will support Z’s technology development, product catalogue expansion, and preparation for its next growth phase.

“Z is reshaping the retail landscape by integrating technology and innovation across the value chain. Its scalable platform empowers traditional retailers and brands with direct access to consumers, reviving competitiveness in traditional trade (hanouts), which accounts for 85% of the FMCG market,” he added.

Founded in 2022 by the trio of Benabad, Samer Choumar and Youssef Ait-Haddouch, Z’s platform empowers traditional retailers and brands with direct access to consumers, reviving competitiveness in traditional trade (hanouts), which accounts for 85% of the FMCG market.

Since launch, the startup has helped over 15,000 active retailers, and seen more than 800,000 orders placed.

There has been outrage in Kenya following the decision of regulatory authorities to approve a tax regime on content creators in the country.

Though the controversial tax had been mooted in the parliament last year, President William Ruto on Friday announced plans to revive it, especially for those earning from monetisation opportunities introduced earlier this year.

While speaking at the KEPSA 20th Anniversary in Nairobi, Ruto emphasised the need for fairness in taxation, noting that while some creators earn as much as KSh 1 million, many others earning less still pay taxes.

“If you earn KSh 1 million, isn’t it fair to contribute to the tax kitty, especially when we’ve enabled you to reach that level?” Ruto queried.

The proposed Content Tax Laws (Amendment) Bill, 2024, aims to bring online income earners and digital operators into the tax bracket following earlier deals Kenya struck with platforms like Google, Meta, and TikTok, enabling content creators to monetise their work.

The bill also proposes a 15% excise duty on social media and internet services, which could raise costs for millions of users, including creators and small businesses.

Treasury Cabinet Secretary John Mbadi, who introduced the bill, said it was part of efforts to widen Kenya’s tax base after the Finance Bill 2024 faced backlash earlier this year.

The proposed bill had raised condemnation and public outcry by many Kenyans who felt the government was trying to place more burden on the citizens especially the youths in areas like music, fashion, and digital animation.

Reactions to the proposal have also been mixed with some supporting the government’s push for fair taxation, while critics argue it could stifle innovation and slow down growth in Kenya’s vibrant digital economy.