Revolutionizing Africa-China Trade: How Midddleman Empowers African SMEs with Direct Factory Access

For many years, African small and medium-sized enterprises (SMEs) have relied heavily on retail platforms such as AliExpress and, more recently, Temu to source affordable products from China. While these platforms offer convenience and low prices, they fall short in meeting the needs of businesses that demand dependable supply chains, product customization, and factory-level pricing.

This unmet demand has paved the way for Midddleman, a Nigerian tradetech startup that bridges African businesses directly with Chinese manufacturers. By doing so, Midddleman provides a more cost-effective and trustworthy solution for cross-border procurement.

Understanding the Nigeria-China Trade Landscape

In 2023, bilateral trade between Nigeria and China reached an estimated $22.6 billion, with manufactured goods-ranging from machinery and electronics to vehicles, plastics, and steel-accounting for 80-90% of Nigeria’s imports from China. This robust trade relationship is primarily driven by Nigerian importers sourcing directly from Chinese factories, highlighting the vast potential for platforms like Midddleman to streamline and enhance this process.

From Humble Beginnings to Industry Innovators

Midddleman’s journey began in 2018 when two recent graduates, Omolara Sanni and Adeola Owosho, relocated from Abeokuta to Lagos. Attending various tech conferences, they were introduced to the burgeoning business of importing goods from China to Nigeria, an insight sparked by a conference hosted by Akin Alabi, founder of the sports betting platform Nairabet.

With a modest initial investment of less than ₦100,000 (approximately $68.50), they placed their first order through Alibaba and experimented with multiple small-scale ventures, selling products like skincare items, automotive accessories, and home décor on Instagram.

Building Trust: The Core Challenge

Despite their entrepreneurial spirit, Sanni and Owosho quickly realized that the biggest hurdle wasn’t profit margins or marketing strategies-it was trust. Customers, especially those outside Lagos, were reluctant to pay upfront or even collect their orders, leading to significant losses and stalling growth.

This experience underscored a critical insight: Nigerian businesses needed a more secure and reliable way to conduct online transactions.

Innovating Payment Solutions Amid Currency Challenges

By 2023, the founders launched an escrow payment platform under the Midddleman brand, designed to hold funds until buyers confirmed satisfaction-mirroring the functionality of crypto escrow services. Although technically sound, the market was not yet ready to embrace this model due to a lack of brand trust and awareness.

Simultaneously, a more pressing issue emerged: Nigerian importers faced increasing difficulties making payments to Chinese suppliers, especially after Nigerian Naira cards ceased to work for dollar transactions around 2020. To overcome this, the founders began using 1688.com, a Chinese wholesale marketplace significantly cheaper than Temu or AliExpress, and paid suppliers via Alipay wallets in yuan.

The Strategic Pivot: From Retail to Business-Centric Procurement

Recognizing that many SMEs shared their payment and sourcing struggles, Midddleman pivoted to become a payment and procurement platform tailored specifically for business imports. This shift unlocked immediate demand, with users quickly adopting the platform for seamless cross-border transactions.

By 2025, Midddleman had facilitated nearly ₦2 billion ($1.37 million) in transaction volume, driven by its focus on serving importers who require more than just access to online suppliers. These businesses need direct factory connections, expert navigation of Mandarin-only marketplaces like 1688, rigorous quality inspections, bulk order negotiations, shipment consolidation, and reliable logistics management from China to Nigeria.

According to Sanni, platforms like Temu and AliExpress are designed for individual consumers purchasing small quantities, such as a few shirts or personal items. In contrast, businesses demand factory-level customization, consistent quality assurance, and scalable pricing-services that Midddleman uniquely provides.

Ensuring Product Quality with On-the-Ground Expertise

Midddleman’s standout feature is its network of procurement agents based in China who conduct real-time factory inspections. These agents verify product quality, inspect materials, and ensure that orders match specifications, addressing a common fear among importers of receiving substandard or incorrect goods.

Beyond quality control, these agents negotiate bulk pricing, consolidate shipments from multiple suppliers, and repackage goods to reduce shipping expenses, delivering a comprehensive import infrastructure that retail platforms cannot replicate.

Arigbabu Adewale, CEO of Congent Paint, a Nigerian paint manufacturer sourcing raw materials from China, praises Midddleman’s reliability and responsiveness, emphasizing the platform’s value in his supply chain.

Challenging the stereotype that “Made in China” equates to inferior quality, Sanni explains that product quality correlates directly with price and factory standards. While inexpensive items may be low-grade, many Chinese factories produce premium goods trusted by customers worldwide, including those furnishing entire homes in the US and UK.

Breaking Language Barriers with AI-Powered Translation

One significant obstacle for African importers is the language barrier on 1688.com, which operates almost exclusively in Mandarin. Traditionally, buyers resorted to cumbersome methods like screenshotting product pages and using Google Translate repeatedly to understand listings.

Midddleman revolutionizes this process with an AI-driven sourcing assistant that translates entire product pages into English and converts prices into Nigerian Naira. Additionally, an AI chatbot answers detailed questions about products, including shipping costs, streamlining communication and decision-making.

This AI tool has become so indispensable that users purchase credits to access its capabilities, underscoring its value in simplifying complex sourcing tasks.

Scaling with Limited Capital and a Vision for Global Impact

Despite raising only $46,000-primarily from family and friends-Midddleman has processed nearly ₦2 billion ($1.38 million) in transactions. The founders attribute their success to community support, resourcefulness, and a dedicated in-house technical team led by CTO Abiodun Arigbede, who developed the platform’s Minimum Viable Product (MVP) to address core user needs efficiently.

While Midddleman’s primary market remains Africa, the company envisions expanding globally. “Everyone sources from China,” Sanni notes. “Our goal is to build a billion-dollar enterprise originating from Africa that serves businesses worldwide.”

Looking Ahead: Transforming Invisible Commerce Systems

Midddleman exemplifies how addressing the hidden complexities of international trade-such as payment hurdles, quality assurance, and language barriers-can unlock tremendous value for African SMEs. As the continent’s startups continue to innovate, platforms like Midddleman are poised to become key players in reshaping global commerce.