A key challenge for smallholder farmers in Malawi is the country’s poor infrastructure and the dearth of commercial processing and marketing enterprises, which makes it difficult to get goods to market. Tropha is helping to counter these significant obstacles in the underdeveloped, northern part of the country, where poverty is particularly acute and where it can make the most social impact.
AgDevCo invested $5.7m to develop a 1,170ha irrigated farming hub of two macadamia farms, an annual crop farm and a 1,000 MT macadamia processing facility. The financing was structured as $3.7m of loans into Tropha and a $2.0m equity investment into its parent company, Jacoma Estates. In addition to using throughput from the hub estates, Tropha aims to source from over 1,000 smallholder farmers by 2026, improving these farmers’ access to a profitable value chain and developing local emergent farmers into SME agriculture businesses. The funding will also provide up to 100 hectares of year-round irrigation to local smallholder farmers to grow cash crops, such as chillies, and food crops.