NWK GRAIN HANDLERS LIMITED (NGHL)

Our social impact
livelihood
IMPROVED LIVELIHOODS

NGHL provided access to a formalised market for maize and soya to c.3,500 smallholder farmers in 2017.
Lift in income
UPLIFT IN INCOME
39 FTE jobs created in remote areas with high unemployment. Income uplift for employees amounted to $3,023 in 2017. Income uplift for smallholder farmers selling to NGHL was $30 per farmer in 2017.
Food security
FOOD SECURITY
Throughput was 21,430 MT in 2017 which has helped to improve food security, despite lack of rainfall which severely affected the availability of grains.
Community
IMPROVED COMMUNITIES
$2,948,149 of funds have been leveraged from collateral management agreements provided by a local bank.
Real lives
Gregory Chembe, NWK GRAIN HANDLERS LIMITED (NGHL), Zambia
Through AgDevCo’s investment in a grain aggregation, handling and storage facility (NGHL), Gregory Chembe now has access to a formalised market for his maize, soya, sunflower and cowpeas. NGHL offers a customer-friendly and professional service, which includes a weighbridge for accurate crop measurement and cash payment on delivery.
"NGHL HAS EMPOWERED US IN TERMS OF QUICK PAYMENTS, ALLOWING US TO PREPARE FOR NEXT SEASON’S PLANTING."
Overview
The Challenges

The grain market in Zambia has traditionally been dominated by two players: (i) informal ‘briefcase buyers' (ii) and the government-owned Food Reserve Agency. Both have their drawbacks for farmers looking for a dependable and fair off-take market, including poor payment terms and lack of modern weighing equipment. The second challenge is preventing post-harvest losses, which has a negative impact on food security and can be prevented by investing in modern technologies and professional stock management.

Our Approach

AgDevCo partnered with two investors to create NGHL, a grain handling and storage business operating on mandates from grain buyers. The business procures directly from small-scale farmers, offering farmers transparent prices and cash on delivery. To catalyse this investment, AgDevCo has committed $1m to NGHL for the financing of grain handling equipment, and a further $71,356 for a 10% equity stake in the company.

 

Our Impact
  • 17 full-time jobs created or sustained in 2017 and 44 seasonal workers were employed.
  • Providing a market for multiple grains; formalising maize and soya value chains.
  • Providing farmers with customer service, a transparent price and paying cash-on-delivery.
  • Storage of more than 45,000t of grain since the inception of the business.
investment
$721,356
Committed Investment
We believe we can deliver more impact by making investments that help responsible agribusinesses grow.
If you believe your business meets our investment criteria, we want to hear from you.
Contact us