Phata http://www.phatacooperative.com/ is a sugarcane cooperative in the impoverished Shire Valley in Southern Malawi. AgDevCo has supported it since 2013 with funding for its first years, helping the cooperative improve its management and financial systems and raising capital. The success of this first phase lead Phata to start developing a proposal to replicate the scheme in a second phase. However despite its positive results and impact, the Coop is not able to attract medium term development instruments from local commercial banks, at a time where the sugar market worldwide experiences some difficulties.
AgDevCo decided to provide a larger share of the funding plan than for phase 1. Its two facilities will finance both fixed capital expenditures and working capital requirements. The scheme will benefit from a large grant from the EU and the structure, using Agricane (http://www.agricane.com/) as the manager of the program, will remain unchanged, having proved its strength. AgDevCo’s investment has been instrumental in increasing the impact of Phata among local communities, providing employment, income, food and access to credit for them.
Annual income uplift for 1,352 farmers who are developing from subsistence to sustainable farmers.
Allocation of 77ha for local food crop production.
Replication of a successful and innovative business model.
Coop members have invested their proceeds into businesses that benefit local communities.