In a strategic move, Zoho, the Indian cloud company with a presence in Africa since 2019, declares its decision to persist with local currency billing for customers in Nigeria and Kenya. T
he company’s firm stance comes amidst challenges posed by surging inflation and significant currency devaluation in these African markets.
African Resilience: Zoho Stands Ground on Local Currency Billing Despite Currency Devaluation
Veerakumar Natarajan, the Country Head of Zoho Kenya, affirms that the company is not altering its billing model for African customers.
Despite this commitment, Zoho acknowledges the potential for future price adjustments.
The company remains adaptable to the evolving economic landscape while prioritizing the needs and preferences of its clientele.
Zoho’s Bold Move: Maintains Local Currency Billing for Nigerian and Kenyan Clients Amidst Economic Uncertainties
In the face of rising business costs, some companies opt for substantial expense reductions.
Zoho, however, stands out as it maintains its billing model, emphasizing customer retention and satisfaction.
With a notable 212% increase in its partner network since launching a local office in Kenya in May 2023, Zoho attributes its success to customers’ preference for paying in Kenyan shillings, fostering loyalty amid economic challenges.
Navigating Economic Headwinds: Zoho Commits to Local Currency Billing for Nigerian and Kenyan Customers
Zoho employs a local currency billing strategy in key African and Middle Eastern markets, including Nigeria, South Africa, Saudi Arabia, and Dubai.
This approach allows clients to pay for Zoho’s customer relationship management software in their local currency, promoting accessibility and facilitating smoother transactions.
Natarajan highlights that Zoho’s strategy in Africa involves charging in local currency and offering discounts, differentiating it from competitors billing clients in US dollars.
Zoho’s African Commitment: Customers in Nigeria and Kenya to Retain Local Currency Billing Despite Currency Fluctuations
With the Kenyan shilling facing depreciation, Zoho acknowledges the potential impact on its pricing.
While the exchange rate has shifted from KES 100 to KES 146 to the US dollar since setting prices for Kenyan customers, Natarajan suggests a possible revision in product prices.
However, Zoho remains proactive, aiming to offset the impact by attracting more customers who prefer paying in local currency.
Stability Amid Volatility: Zoho’s Pledge to Continue Local Currency Billing for Nigerian and Kenyan Markets
As the Kenyan shilling weakens, businesses express concerns about the safety of their dollar-based earnings.
Fears include potential income reduction, increased instability, and compromised livelihoods.
Notably, Kenya Power, a prominent power distributor, contemplates switching to USD billing, raising questions about the future stability of the local currency in the business landscape.
Business News