Greenlight

Our commitment is to solve inherent links between ecosystems, food production, the food chain and consumer health and wellbeing. Going ‘green’ has become the panacea to address challenges of sustainable food systems. Greening the food system is not only about environment sustainability and reducing the carbon footprint. It’s about creating viable jobs and sustainable livelihoods, ensuring the availability of safe, nutritious, affordable food, improving efficiencies, reducing inequalities and strengthening climate resilience. Our business model has the right mix of ingredients to address these different facets and generate returns on investment. Our vertically integrated business model enables end-to-end control and allow us to add value both to farmers on the upstream side and end customers downstream. We want to be part of the formula shaping what and how people eat -consuming more diverse, convenient and processed foods and meals which is ready-packed, ready to sell, easy-to-cook, ready to cook and ready-to-eat.

By 2050, global food systems will need to sustainably and nutritiously feed more than 9 billion people while providing economic opportunities in both rural and urban communities. Yet our food systems are falling far short of these goals. A systemic transformation is needed at an unprecedented speed and scale.  Hunger is on the rise, one in three women is anemic, and food insecurity is manifesting itself in a rise of overweight and obesity. The Global Burden of Disease 2017 report highlights the challenge, with most of the top five early-death risk factors related to diets that are badly out of sync with our bodies’ basic needs. The world’s roughly 500 million farmers live at subsistence level, enormous amounts of food go to waste and poor farming practices are taking a toll on the environment. The agri-food sector accounts for 30% of GHG. This is unsustainable and we still we need to significantly increase food production even if we get on top of the food loss and waste challenges. Poor access to capital, markets and transport, as well as barriers created by standards on quality, traceability and certification, often make the participation in integrated value chains very difficult.  

Our solution is centered around transforming the way food is produced, processed, distributed, and consumed. Our business solutions-oriented approach is structured around; a) Inclusiveness |  Smallholder farmers, including women and young people, will be fully integrated into food systems with access to inputs and land, transport, education, mechanization leasing and storage b) Sustainable |we will deploy practices that reduce environmental damage by adopting sustainable production,  integrated land-use planning, reducing food loss and waste, and shifting to the use of renewable energy. Undertake agro-ecological modes of production of vegetables such green peas and fruits such as watermelon (these have lower carbon footprint), through repurposing of agricultural waste (biomass from vegetables will be repurposed to produce biochar which is nutrient-rich, eco-friendly, and organic fertilizer for soil amendment), and techniques such as soil fertilization through leguminous plants c) Efficient | Farmers will have access to inputs and information tailored to their specific agro-environmental conditions and our nucleus farm will be used as the hub for providing education to farmers d) Nutritious and healthy |We provide our customers with stable access to nutritious food (fruits and vegetables) and healthy diet. We will use SLD-500 Fluidized Individual Quick Freezing technology which is more environmentally friendly.

Our proposition is to add value both to farmers on the upstream side and end customers downstream. Value to farmers (60% rural women): We will improve farm-to-processor links in value chain through a viable, sustainable model by embedding farmers’ production within a supportive, self-contained agribusiness ecosystem. This will increase volume and quality of local supply, reduce supply chain losses, maintain competitive prices, strengthen local license to operate and specify and generate social benefits (i.e. increase smallholder incomes over three times, empower women and youth in the supply chain). Value to customers: The first aspect is foods that promote health for consumers and ensure consumers have a stable supply of convenient food products to meet their needs for fast, and balanced food products which reduces cooking, preparation, and clean-up efforts & time for consumers. The reduced burden of diet-related ill-health would lead to healthier citizens, lower healthcare costs and a more economically productive workforce, thus benefiting economic prosperity. An economy would also be created around nutritious foods, which would directly generate decent jobs and equitably shared economic wealth, in turn supporting rural development, urban livelihoods and economic competitiveness. We use gender asymmetries model to understand their needs, priorities, opportunities and constraints. 

Food systems involve multiple impacts on factors related to health, environmental sustainability, economy and society. The changes in the environment, people's health and in farming, reflect the changing nature of food supply systems. Food systems would thus involve farmers, entrepreneurs, and businesses generating jobs and equitably shared wealth for themselves and local and national economies, by producing, trading and selling nutritious foods to consumers at affordable prices with a skilled and decently paid workforce, using environmentally-sustainable production methods that protect biodiversity, water, soils and air, and minimize environmental health risks, food waste and greenhouse gas emissions. 

The innovation is therefore outlined as; Nucleus Farm | We will manage a nucleus farm to ensure a win-win of increased income for farmers, reliable supply of quality raw materials for the company. This is of high priority due to the company’s interest in securing standardized high-quality raw materials for processing requirements. In the long term, we will also support satellite nucleus farmer schemes which will be used as farmer field schools for our network farmers. The network of inclusive out-growers | We will establish a network of farmers who will be grouped into economically viable units that can produce quality produce. Mtolo System for continuous improvement | the company will offer a complete bundle of services called “Mtolo” (which means “bundle” in Chichewa) to help all farmers in the network achieve maximum yield. All of the farming inputs and capital equipment that the company will be selling to farmers in the network will be sold without making a profit/at our purchase price. The Mtolo system will consist of four main components: improved inputs, training support, forward contract financing, and guaranteed market and transport for produce. Processing Facility | we will use IQF technology for processing to export our value-added products unlike our competitors from Kenya, Zimbabwe and Ethiopia who export unprocessed green peas. Our differentiation strategy will be achieved through increasing the perceived value of the product offered retailing the products using high-quality inputs that comply with the food safety requirements, quality standards, and certifications. 

Our business Innovation

Our solution relies on technology at four levels: Production | we will rely on solar-powered irrigation systems (SPIS) for production of fruits and vegetables. In a SPIS, electricity is generated by solar photovoltaic (PV) panels and used to operate pumps for the abstraction, lifting and/or distribution of irrigation water. The essential components of SPIS are: a solar generator, i.e. a PV panel or array of panels to produce electricity;  a mounting structure for PV panels, fixed or equipped with a solar tracking system to maximize the solar energy yield; a pump controller; a surface or submersible water pump; and a distribution system and/or storage tank for irrigation water. Processing | The technology selected for the proposed unit is Individual Quick Freezing. This system involves the use of a blast of cold air which, when directly on the food products, quickly freezes them. The important feature of this process is ultra-rapid freezing to very low temperatures (-30°C to - 40°C) designed to halt the activities of the microorganisms that cause decay and deteriorate foodstuffs. It preserves and store raw fruit and vegetables in the same farm-fresh condition for more than a year, with the color, flavor and texture of produce remaining as good as fresh from the farm. Packaging | We will use eco-friendly packaging materials which are biodegradable. Marketing | We will also rely on the available digital platforms for marketing out products and interfacing with our buyers. 

There is strong evidence that SPIS is a clean-energy, low GHG emission option for irrigation development and modernization. The link between the introduction of SPIS and agricultural productivity, livelihoods and food security has been documented anecdotally. Several existing experiences have demonstrated a positive impact. For instance, farmers in Bihar, India, were able to switch from deficit to full irrigation after introduction of SPIS, resulting in improved plant health, increased crop yields and extra income from marketing the excess produce (GIZ 2013). In Maharashtra, India, the replacement of diesel pumps by SPIS helped to improve the on-farm economic benefits. In the Sudano-Sahel area of Northern Benin, SPIS were installed in vegetable gardens formerly watered with cans and hauled water. This allowed the women farmers to become net producers of vegetables, generate income from market sales, and substantially increase their household nutrition intake and food security (Burney et al. 2009). Reduced GHG emissions per unit of energy used for water pumping (CO2-eq/kWh) of 95 to 97 percent as compared to pumps operated with grid electricity (global average energy mix) and 97 to 98 percent as compared to diesel-pumps (GIZ 2016).

IQF freezing method suitable for individual quick freezing of fruits and vegetables based on fluidization. The air fluidisation was studied extensively and used commercially, with an increasing popularity, during the last 38 years. Attractive features include high freezing rate, great overall heat transfer surface of the fluidised foods and high surface heat transfer coefficients, and good quality of the frozen product.  

We have developed a Theory of Action (ToA) approach, which is a delivery model for the Theory of Change (ToC). The ToA describes the business mechanisms and processes through which the activities are delivered. The company will operate three business lines: Farm and agricultural center with farmer education and bundled inputs to help smallholder farmers grow and harvest crops more efficiently;  Logistics and supply chain support to navigate the “last mile” to smallholder farms and safely bring produce to the processing facility; and  Food processing and packaging facility that prepares finished goods for distribution to major domestic and export outlets. We will measure our success in terms of financial returns, agricultural output as well as social impact achieved. ToC will address the following constraints and needs to meet export requirements of our product; food safety, product quality, social, environmental and business compliance. ToC will focus on farmers lack of capacity for new farming techniques, access to improved seed varieties, financial constraints, lack of infrastructure for transportation and storage facilities. The inputs and activities: will involve collaboration with experts to train farmers through our nucleus farm. Therefore, at this input level, we look at number of farmers trained per year, farmers’ demographics and income levels. ToC will also support out-growers with Mtolo/bundled inputs, and we will measure Percent of farmers involved, key issues faced by our out-grower farmers and our capacity to address farmers’ needs. Outputs will look at number of farmers trained -% of farmers being certified, -% of farmers applying new techniques, number of farmers benefiting from farmer network, percent of farmers facing infrastructure issues. Outcomes for our ToC will look improved knowledge, capacity and production, better quantity and quality of peas production, percent of farmers reporting increased productivity/profits, stronger & sustainable farmer network thus percent of farmers still facing financing/ cash-flow issues. Impact for our ToC will look at increased incomes and improvement in living standards thus farmers’ income levels, farmers’ asset/ land ownership, percent change in yearly peas production, size of farmer network and its value, and increased employment.

Our business model will recruit, provides employability training and support to 150 lead farmers (women and young people not in education, employment or training, between the ages of 19 and 35)  during the first 3 years, these will undergo a season-long learning process and empowerment. These will in turn mobile and train 1,500 farmers thus one lead farmer will mobilize and empower 10 farmers. These 1,500 farmers will be recruited into our network of farmers and will be linked to our nucleus farm. The farmers will be grouped into economically viable units that can produce quality products while monitoring their production. To make this economical, the growers will be concentrated within a reasonable area, about a 10 km radius. In year two, the company will recruit its first cohort of farmers into the network, which will comprise 500-1,000 farmers. By year five, the company will work with a network of over 1,500 farmers. As we scale, we expect though that our greatest product champions and advocates will be the farmers in our network. For our most successful and enthusiastic farmers we will have them hold field days at which all farmers in the village and the community can be invited. This model will have a multiplier effect where at least 7,500 (average of 5 household members) people will directly benefit from this business model and over 15,000 people will indirectly benefit.

Our beneficiaries

This will have a large positive impact on Malawi’s agribusiness sector, the social fabric, and overall economy. Our value proposition is to add value both to farmers on the upstream side and end customers downstream. 0-18-month goals | We aim to: develop a product-based company whose goal is to exceed customers’ expectations, develop a sustainable farm surviving off its own cash flow, strengthen capacities of farmers to enable them to scale up production and, at the same time, address quality issues so that they meet the requirements of export markets, ensure constant supply and availability of our products in major outlets. 3-year goals | With positive cash flow, we will turn our focus on growth through scaling up production as well as establishment and development of well-structured markets for our products. We estimate a growth rate of 10-20%, expanding our operations in year 3 by increasing our customer base targeting 1 Million customers. 5-year goals | We are planning to produce desirable quality products and make them integral part of consumer's life. We would create products which shall become the foremost choice of consumers for their healthy life. In return, we would want to achieve a minimum sustainable market share; achieve a minimum of 30% on internal rate of return (IRR); increase revenues from farm produce sales at least three times for participating smallholder. Establish a network of 1,500 famers whose skills have been developed and are supplying standardized high-quality raw materials for processing requirements for the company. 

The main barrier to entry is the need for a high degree of capital to start operating in the market. Freezing produce requires significant infrastructural investments, and infrastructural capacity can impact product quality and cost. It is necessary to build a warehouse and create an efficient distribution system while establishing suitable frozen food manufacturing and flash freezing facilities, all of which involve significant capital investment. Furthermore, establishing relationships with the myriad of suppliers from farmers is logistically complex and could prove off-putting to potential new entrants. Another area that we may struggle is to establish ourselves in accessing distribution channels, persuading retailers to stock our new product may be difficult when shelf space is limited with a majority of it reserved for established brands in-demand from consumers. A high degree of regulation in food safety standards also acts as a significant entry barrier. Conditions favoring new entrants are the low levels of IP involved, for example, frozen vegetable sector is not something protected by patents. Furthermore, although buyers are locked into purchase contracts with players, they don't tend to be as prohibitive as some industries due to the nature of consumer demand influencing buyer's purchases. Moderate global growth in recent years is not likely to be particularly enticing to potential new entrants. The threat of new entrants is assessed as moderate overall.

To raise the required capital, we will develop a more diverse and flexible partnerships to take advantage of emerging funding opportunities relating to investments. We are working on identifying new and innovative ways of partnering with funders as well as investors, including exploring opportunities with Norfund, MAIIC, Agdevco, FISD and MIT solve. In recent months, it has been observed that all funding opportunities are demanding ‘innovation’ and there is need to be creative in terms of innovation regarding proposed idea. This means staff will need to be equipped with strategies and skills required to engage with investors. Raw material will come from our nucleus farm (70%) and our out-growers (30%), and this will address the issue of supply, quality and compliance with the export requirements. The company will embed farmers’ production within a supportive, self-contained agribusiness ecosystem focused on local production and farming practice improvement. On the issue of distribution channels, we will establish partnerships with traders who can strengthen our position and help us to enter major supply programmes. We will be collaborating with marketing firms to carry out the in-store promotions and push the products to the stores in other to boost our brand awareness. We will build strong relationships with marketing films to understand global trends and be advised on the best-selling options. We will benefit from knowing which varieties will be in demand, the timing of the sale to meet a gap in supply, and the commodities quality specifications to target to get the best return.

There 22 full time stuff, the number of part-time staff ranges from 50 to 150 people (the demand highest during peak periods) and we make sure that 60% are women. We also engage contractors to transport our farm produce and to do consultancy works for us. 

The company has a strong and sound management team, capable of covering management and technical competences. The management team has diversified and complementary skill sets, has worked together for the past 6 years building the company to the current status. CEO | He is a seasoned social entrepreneur and a sustainable development professional with over 10 years’ experience and his main interest is championing the contribution that the private sector and non-profit organizations can make to addressing poverty among the disadvantaged. He brings on broad strategic perspective from his experience and strong track record of performance in both profit and non-profit approaches to the team. His skill sets brings "business DNA” that will help the company to achieve its goals. COO | He brings over 10 years’ experience in nutritional and quality management. He is the Managing Director of Healthcare Nutrition Centre. He has worked in a wide range of businesses both in house and as a consultant and has experience with large corporates. CBDM | He brings extensive experience in data analysis, risk/return analysis, research, and market assessment activities for varying business scenarios. CFO | He brings over 15 years of experience in areas of finance, production, marketing, organizational structuring, strategic planning, taxation, capital raising, and entrepreneurial experience. Added to the management team, a Technical Advisor with 30+ years’ experience in the cooperate sector as former CEO of Toyota Malawi, Board of Directors at National Bank of Malawi, Standard Bank Malawi Ltd.  and Public Private Partnership Commissioner. 

Partnership phase: $ 105,263 will be raised through partnerships with the Foundation for Irrigation and Sustainable Development (FISD) Group Limited Company. FISD Group Limited Company is an irrigation, water, and clean energy service provider incorporated in 2012. This partnership will contribute to the sensible reduction of the startup capital required for setting up a modern irrigation system. The amount is 11% of the total investment required.  

We operate a vertically integrated business model that enables end-to-end control and allow the company to add value both to farmers on the upstream side and end customers downstream. Our business model is embedded with a nucleus farm, a network of inclusive out-growers, and the mtolo system. The business will thrive on raw materials from the business farm (we have already acquired a landbank of 1113 acres) and out-grower schemes. The company’s infrastructure will initiate and support production enhancement activities at the farm, efficient logistics, scientific quality assurance and education of growers. We will sell high-quality frozen peas to EU mass-market customers through a differentiation strategy, increasing the perceived value of the product offered retailing the products using high-quality inputs that comply with the food safety requirements, quality standards, and certifications. Buyers look for trust and reliability, which means that our soft skills and performance are just as important as our product. Centralized operations and logistics through hub-and spoke hub model will enable general inventory optimization and logistic costs. The hubs will be located close to hotspot harbors and able to connect efficiently market channels located in the same geographical area. Marketing investments will be made using an integrated marketing campaign approach, increasing general brand awareness lead generation and sales/channel support. Our primary market target is a health-conscience consumer 19-50 years of age looking for readymade and convenient (ready-packed, ready-to-sell, easy-to-cook, ready to cook and ready-to-eat) food products to meet the need for fast, healthy, and balanced food.

We would like Solve to add value to our business by providing capita required for infrastructural investment. The initial capital will help us to establish a nucleus farm, launch the Mtolo system, acquire the equipment we need, begin value addition that will incorporate raw material produced by poor producers into our business activities to deliver value addition for the export market, meet growing demands from existing customers, support the business to get off the ground at fast paced growth and scale. We are also optimistic that we can benefit from the added value of mentorship, technical expertise, entrepreneurship training and strategic advice from Solve and MIT networks. This will in turn help us to navigate through the perceived barriers to market entry. By joining a supportive community of peers, funders, and experts to help advance our innovative work through Solve's nine-month program, we believe that we will become more attractive to other investors thereby generating the much need capital  for our business to get off the ground. 

To raise finance in the form of initial investment or a loan of $ 952,927.63 in order to investments assets including 500KG/H Frozen Green Peas Production Line.  This initial investment will push the company to be economically viable, consistent, sustainable and competitive in the export markets, which uses good agricultural practices to produce the highest quality, cultivated, natural, non-GMO crops for its customers. The investment will also push the company to increase production capacities using advanced and modern technologies.

We intend to foster partnerships so that we create a company image that matches or exceeds the competition and become recognized as a strong counter season supplier and exporter of frozen fruits and vegetables. The partnerships will also help the company to establish relationship with leading distribution companies in Europe. It will also provide new and additional opportunities, experience, knowledge and networks for Kategha Limited thereby attracting new investors. 

$105,263 will be raised through partnerships with the Foundation for Irrigation and Sustainable Development (FISD) Group Limited Company. FISD Group Limited Company is an irrigation, water, and clean energy service provider incorporated in 2012. This partnership will contribute to the sensible reduction of the startup capital required for setting up a modern irrigation system.

Partner with business support organisations (BSOs) such as  1) Centre for the Promotion of Imports from Developing Countries, they offers market information for various products and services, export coaching programmes, technical support, they inform and influence policy makers and involve importers in the development and implementation of their programmes 2) The Swiss Import Promotion Programme (SIPPO). They support BSOs in improving their services for exporting companies and strengthening their own institutional set-up, as well as connecting them to an extensive network 3) The Import Promotion Desk (IPD). They bring together the interests of German importers with those of exporters in emerging growth markets. 4) International Trade Centre (ITC). Dedicated to support the internationalisation of small and medium-sized enterprises around the globe. Most of the activities are aimed to support exporters from developing countries.

Partner with IPD, SIPPO and ITC to support us join export support projects suitable for our company. We will also join national, regional chambers of commerce, regional development agencies or business so that they include our company in export support projects.

We will apply gender asymmetries model to out-grower schemes by ensuring that needs, priorities, opportunities and constraints of female and male farmers are being considered and that both participate in development of new practices or chain activities. The gender asymmetries will be in the areas of access to and control over assets, agricultural market (guaranteed market for their produce), technology including soft technology such as knowledge, resilience and risks and decision making. We will recruit, provides employability training and support to 150 lead farmers  of which  90 will be women not in education, employment or training, during the first 2 years, these will undergo a season-long learning process and empowerment. These will in turn mobile and train 1,500 farmers of which 900 will be women. Women will be fully integrated into food systems with access to inputs and land,transport, education, mechanization leasing and storage.We will  increase revenues from farm produce sales at least three times for participating female smallholder farmers by year five.