Revolutionizing Agriculture in Africa

Twiga Foods

2. Zero Hunger 8. Decent Work and Economic Growth 12. Responsible Consumption and Production 13. Climate Action

Overview

  • Founded in 2014, TWIGA Foods aggregates informal retail demand and organizes an efficient supply chain for fresh and dry produce through a technology enabled B2B platform. It has also recently explored the B2C transactions in order to bridge the gap between the businesses and consumers by providing door to door delivery through some e-commerce platforms.
  • Provides farmers with a GUARANTEED market; handles 130 tonnes of produce daily;
  • B2B Mobile Based MarketPlace in Kenya;
  • Sources and Delivers quality food at low prices;
  • Over 17,000 farmers; (Since 2014, Twiga has been bridging gaps in food and market security through an organised platform for an efficient, fair, transparent and formal marketplace.)
  • Over 8,000 vendors (Fresh and processed food from thousands of farmers and food manufacturers, are sourced and delivered from pack houses to thousands of vendors, at prices fair to everyone);
  • 14,000 unique customers every week;
  • A team of over 400 professionals in sourcing, sales, logistics, finance, technology, administration and human resource.
  • The company’s business strategy is aligned with SDG framework;
  • Creation of sustainable farming methods, sustainable food value chain in Africa;
  • Partnership with SunCulture for use of Solar Powered Irrigation;
  • Partnership with IFC (International Financial Corp) to coach farmers on agricultural best practices;
  • Not yet at a level to do specific measuring of SDG impact;
  • But overall the goals of reducing absolute poverty and increasing literacy are a part of the company’s core values.

Authors

Washingtone Koech

Washingtone Koech

Padma Nayak

Padma Nayak

Diana Woche

Diana Woche

jodie Beattie

jodie Beattie

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professors

Ezequiel Reficco

Ezequiel Reficco

Francisco Layrisse

Francisco Layrisse

Innovation

Twiga foods operates on a mobile application and a web platform (marketplace) that connects farmers to vendors.

How it works;

Farmers

  1. A farmer signs up to join Twiga.
  2. Twiga visits and assesses the farm then adds the farmer onto the system.
  3. Twiga issues a purchase order to book the produce and indicate the date of harvest.
  4. Twiga harvests and weighs farmers produce and issues you with a receipt.
  5. Farmers receive payment within 24 hours.

Marketplace

  1. All produce is gathered at the Collection Centres from the farms.
  2. Produce goes to the Packhouse for processing, grading and dispatch to over 60 sales routes.

Vendors

  1. A vendor signs up to join Twiga.
  2. Twiga sales representative visits the vendor and registers them onto the system.
  3. Vendor places order with sales representative.
  4. Twiga delivers produce directly to vendors' shops.

Twiga Farmer Collection Centres are all over Kenya (13 counties) as follows;

  • North Rift: Baringo (Equator, Mogotio)
  • South Rift: Bomet (Silibwet)
  • Eastern: Makueni (Nziu), Kitui, Machakos
  • Embu: Embu (Kivwe, Kathageri, Kiritiri), Tharaka Nithi (Itugururu)
  • Taveta: Kajiado (Ilasit, Kimana), Taveta (Timbila, Mkuyuni, El-Doro)
  • Meru: Meru (Githongo, Mitunguu, Mujwa, Egoji, Maua, Mikinduri), Isiolo (Maili Nane)
  • Kirinyaga: Kirinyaga (Kagio, Kutus), Muranga (Maragwa), Nyeri (Kiawara)

Vendor Supply Areas are in four Counties in Kenya

  • Machakos: Syokimau, Machakos Town
  • Nairobi: Embakasi, Donholm, Thika Road, Nairobi West, Dagoretti, Waiyaki Way, Kaloleni
  • Kajiado: Rongai
  • Kiambu: Thika Road, Thika Town

Twiga foods has also partnered with e-commerce in Kenya such as Jumia, Gobeba, Safeboda, Jambopay, Glovo and Uber Eats to take care of the B2C bit. These companies do door to door delivery in Nairobi, this has really worked out so well for both the company and the consumers especially during the pandemic (COVID19) time.

Revolutionizing Agriculture in Africa

Partnership with Jumia e-commerce

Inspiration

  • Sub-Saharan Africa spends 50% of their disposable income on Food (USA spends 10%)
  • Agricultural inefficiency - Post harvest losses of 30-50%
  • Supply-chain inefficiency
  • Non-commercialization of Food sector
  • Agriculture accounts to 30% of Kenya’s GDP but only 2% exposure on balance sheet
  • Govt expenditure on agriculture is a minimal 3.5-3.8%
  • Expansion across African continent - easily replicable model;
  • Certify all farmers on Global GAP by March 2021 to establish global standards for the produce;
  • Leverage partnership with IFC to scale up training programs with farmers on innovative farming and harvesting practices;
  • Partner with the Development Finance Institutions (DFIs) in activities that involve measurement of their impact on the Sustainable Development Goals (SDGs).
  • Precision agriculture to improve agricultural efficiency
  • Use of mobile application for ordering and selling supplies : Ease & price transparency for consumers-vendors-farmers;
  • Prompt payments using e-payment platforms such as MPESA;
  • Loan requests and instant approvals (within 0.8s) through app;
  • Pilot programs :
  • Installation of IoT in farms to get real time data on soil moisture, precipitation, humidity for optimization of yield;
  • Drone surveillance for yield management : Crop sensors, Crop density;
  • Satellite imagery for better analytics in partnership with 2 tech companies;
  • Partnership with IBM to provide Blockchain based MicroFinancing for Food Kiosk owners.

Overall impact

  • Improved agricultural efficiency
  • Accessible markets to capital starved farmers
  • Improve handling post harvest; reduce post-harvest losses
  • Lower food prices
  • Eliminate Middlemen and brokers
  • Improve price transparency
  • Access to Information : Agricultural best practices, pricing

Business benefit

  • Commission based Revenue model;
  • Closed series B round with GS in October 2019;
  • Raised $60m USD so far in capital.

Social and environmental benefit

Social Benefits:

  • Reduced disposable income on food by 15%;
  • Empowers rural farmers;
  • Education : Provides access to information about effective farming and harvesting;
  • Technology : Exchange of best practices amongst farmers through platform;
  • Local Employment;
  • Farmers being certified on Global GAP for traceability.

Environmental Benefits:

  • Reduced post-harvest losses by 70%;
  • Guarantees Food security;
  • Awareness on sustainable farming;
  • Solar Powered irrigation.

Interview

Peter Njonjo, Co-Founder and CEO

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Twiga Foods

Twiga Foods

Nairobi, Nairobi, KE

Business Website: https://twiga.com/

Year Founded: 2014

Number of Employees: 201 to 500

Twiga Foods Ltd is a business-to-business marketplace platform that sources produce directly from farmers and delivers it to urban retailers at below market prices.