Phata Sugar Cooperative

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

Investment information

Committed investment
Primary production
Primary value chain focus
Committed investment
Primary value chain focus

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.

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Our investments in Malawi

Investment Total invested Investment type Start date
Jacoma – Tropha $10,625,000Debt / Equity & Technical assistance2014
Kasinthula $4,000,000Debt / Equity & Technical assistance2019
Phata Sugar Cooperative $1,200,000Debt / Equity2016