AgDevCo

Phata successfully paid back its development loan, two years early. An achievement in its own right – especially for a newly formed co-operative – this was more impressive given that southern Malawi has been hit hard by drought, floods and power shortages in recent years.

Northern Zambia has scant formal infrastructure and employment, and is highly dependent on rain-fed agriculture, despite being naturally rich in water. Until now, Zambia has also been 100% reliant on imported seed potatoes, an economically important food crop.

Along with success comes challenges. Traditionally perceived as a ‘women’s crop’, groundnuts were predominantly grown for home consumption and rarely attracted male farmers in Zambia.

Inspired by the success of another AgDevCo investment, and following a $3.9 million debt and equity investment from AgDevCo, Westfalia Fruto established a commercial avocado plantation in central Mozambique, becoming the country’s first large-scale avocado exporter.

AgDevCo’s initial $6.3 million investment in this flagship project in Ghana is expected to catalyse millions of dollars of private investment to help make the Babator irrigation scheme the country’s largest irrigated food hub. 

Investment in a sophisticated cold chain has moved EA fruits in Tanzania one step closer towards realising its longer-term aim of working with supermarkets and larger retailers. The business can now meet the requirements for the consistent quality and quantity of produce associated with formal supply contracts.  

Through ECA in central Mozambique, thousands of smallholder farmers have been connected to commercial buyers, who offer stable pricing and volumes in return for improved grain quality and service. The ECA model has proved its commercial worth and potential to be replicated elsewhere.

Read how AgDevCo's SDU showcases best practices to promote women’s economic empowerment in outgrower schemes.

Despite contributing substantially to agricultural production, female farmers in sub-Saharan Africa face numerous constraints that limit their productivity and their inclusion in smallholder schemes.

In this interview, Sandi Roberts explains how helping agribusinesses in Africa can help smallholder farmers produce more and increase their incomes.

The schemes featured represent a cross-section of value chains, from high-value horticulture (bananas) to commodity crops (maize and sugarcane), small livestock (broilers), and seed (flowers). Understanding the lessons of these schemes and why they have been successful will help to inform the design of new outgrower schemes, minimise mistakes, and ensure both companies and growers reap the benefits. 

AgDevCo, in collaboration with The MasterCard Foundation and UKAID, launched the Smallholder Development Unit (SDU) to work with rural agricultural enterprises to develop equitable outgrower schemes that will boost productivity and incomes for half a million smallholder farmers.