Phata Sugar Cooperative

Centre pivot irrigation for a sugar cooperative with over 1,300 farmer members.

Investment information

$1,600,000
Committed investment
$1,600,000
Investment made
Primary production
Primary value chain focus
Committed investment
Investment made
Primary value chain focus

Expected impact

600
Smallholder farmers linked to market
40%

Female smallholders linked to market

$1,200,000

Total annual income for smallholders

Smallholder farmers linked to market

Female smallholders linked to market

Total annual income for smallholders

Our role

AgDevCo’s investment has helped develop 603-ha of centre pivot irrigation for Phata Sugarcane Outgrowers Cooperative, which has over 1,000 farmer members. Rolled out in two phases, this partnership between the local community, Agricane and AgDevCo, with financial support from the EU, has proven to be a successful business model. This has been driven by the appointment of a professional farm management company, Agricane, to maximise the estate's performance and by securing a long-term off-take agreement which provides a guaranteed market. The cooperative has been consistently profitable and has paid $6.5m of dividends to farmers over the last six years. The impact of Phata on the local community has been significant, providing employment, income, food and access to credit.

Smart investment and support
Stabilising employment
Since AgDevCo's investment, Phata has employed more people in the local villages to harvest sugar cane. Many Phata employees were previously reliant on seasonal work, which was ad hoc and wholly dependent on annual rainfall levels. With crops now grown on irrigated land, Phata provides employment year-round with the local villagers benefiting from a reliable income stream and Phata tapping into a more loyal and sustainable workforce.

Our investments in Malawi

Investment Total invested Investment type Start date
Afri-Oils $1,500,000 Debt / Equity & Technical assistance 2016
Farmers World Limited (FWL) - Technical assistance 2019
Jacoma – Tropha $6,100,000 Debt / Equity & Technical assistance 2014
Kapani $2,070,000 Debt / Equity 2017
Phata Sugar Cooperative $1,600,000 Debt / Equity 2016