Zimbabwe - Startup under 3 years old

Describe your project or startup in a few words

We provide a marketplace that raises financial investment helping to capacitate production of small-scale horticulture farmers in Mutare and Mutasa Rural Districts by linking them to investors and also finding buyers for their harvest.

01.01 Describe your startup in more detail

Unlike banks who just provide financial investment, in addition, we provide project management services offering transparent evidence-based Monitoring and Evaluation services through our partnership with Young Entrepreneurs Trust Zimbabwe (YETZ), and Magamba Vocational Training Centre who provide students who do attachment at project site areas. We collaborated with the farmer, investor and off-taker providing an end-to-end precision farming solution through smart inputs for smallholder farmers who make up 75% of people living on under $1 a day in Zimbabwe allowing them to make more money off their farms whilst allowing them access soil testing, quality inputs financing and market demand data. Thereby addressing SDG 1 and 2. Through our blended-finance model and webapp platform, we also capture the digital-happy youthful population in Zimbabwe and induct them into farming through linking them with the experienced and farming population in Mutare rural and urban.

01.02 What is the main problem you are trying to solve?

Zimbabwe’s financial sector, especially those elements supporting agriculture, has not moved with the times. Land reform has created a whole swathe of potential new customers desperate for financing options, yet the main banks, including those heavily supported by the state, fail to offer suitable financial packages and the restrictions and requirements are impossible to fulfil for most. Chigodora is such a community empowered by land reform with the subdivision of a farm previously owned by a white farmer. Loan options available for our target population are generally large, politicized, significant collateral is required and payment requirements are challenging, especially in a high inflationary setting. Such requirement which most do not have since they are not given title deeds for their new subdivided properties. In sum, currently there is a gap in agriculture finance system. Agricultural loans and credit in Zimbabwe is inadequate and often inappropriate for small scale farmers.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

We use Blended Finance Model which is the strategic use of development finance for the mobilization of additional commercial finance towards sustainable development in Zimbabwe. This is the blending together of commercial and developmental funds to achieve SDG 1- Zero Poverty using SDG 17 which is on Private-Public Partnerships. Adding on, MBEU digital investment marketplace increases the participation of young people in agriculture through financial empowerment as a means of improving food security, youth livelihoods and employment. Besides, we use crowd funding as an active empowerment tool that allows ordinary citizens to directly contribute towards resuscitation of agriculture, specifically horticulture in Zimbabwe. Hence introducing new actors on the investment table (direct investment of citizens) previously not available thereby increasing the mobilization of commercial finance. The main aim is introducing Agriculture commodities as the best investment vehicle in Zimbabwe.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

The business model for AFS utilizes a multi-sided markets serving three interdependent markets namely the farmer, the investor and the buyer as three distinct markets, with our company as an intermediary in-between. Our financial inclusion strategy solves the dual-investment mismatch for both groups of 100 farmers in Chigodora with the need for investment to scale-up production, and those citizens with available savings yet they are also interested in farming, but without land or time to fully engage. The goal is to create agriculture commodities as the best investment space for local and diaspora citizens thereby establishing the ‘nyika inovakwa nevene vayo’ mantra meaning a country is built by its own native people. A common phrase by the president in the movement towards vision 2030. Hence establishing a domestic agriculture investment strategy (local citizens) that will complement the Foreign Direct Investment strategy (Including foreign investor or diaspora community)

01.05 When was your company established?

2021-11-27

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

1

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Sibongile Sithole (Female)- National Cordinator. Graduated with a Bachelor’s degree in Management at Africa University in 2021 in Mutare and she is doing her Master’s of Science in Environmental Science at University of Botswana, in Botswana. As the Project Manager she has helped set up two nurseries, led the planting of over 1000 native trees, led proposal writing for funding, spearheaded environmental campaigns and trainings in 2 provinces and is working with 10 schools under The Catch Them Young Project.

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://www.facebook.com/profile.php?id=100071294126729 AND https://yetz.org/mbeu-investments/

01.11 Which industry best describes your project?

l) Farming

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

We collaborate with the farmer, investor and off-taker providing an end-to-end precision farming solution through smart inputs for smallholder farmers who make up 75% of people living on under $1 a day in Zimbabwe allowing them to make more money off their farms whilst allowing them access soil testing, quality inputs financing and market demand data. Thereby addressing SDG 1. Adding on, the company implements the Blended Finance Model which is the strategic use of development finance for the mobilization of additional commercial finance towards sustainable development in Zimbabwe. This is the blending together of commercial and developmental funds to achieve SDG 1- Zero Poverty using SDG 17 which is on Private-Public Partnerships. As a result, the company also puts into effect SDG 8 which is focused on economic growth, decent employment and working conditions.

02.02.01 My startup contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification for my startup

We provide smallholder farmers with investment, precise inputs, soil and crop health insights, and access to markets. Hence farmers are able to achieve a 30% reduction in the cost of production, an option to investment that can further cut the costs by 70% directly, as well as doubling their yields, and achieve at least 80% sales of their farm produce. A good harvest starts with quality inputs and good farming practices backed up by adequate record keeping. Therefore, precision farming has been adopted as the best farming strategy implemented by beneficiaries of our company. Hence distribution of inputs and, monitoring and evaluation is done by Amalgamated Fresh Solutions to ensure precision for higher yield. Thereby contributing directly to SDG 2.

02.03.01 My startup contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification for my startup

02.04.01 My startup contributes to the Quality education goal

7 - Strongly Agree

02.04.02 Quality education - Justification for my startup

Our target is offering transparent evidence-based Monitoring and Evaluation services through our partnership with Young Entrepreneurs Trust Zimbabwe (YETZ), and Magamba Vocational Training Centre who provide horticulture students who do attachment at our project site areas. We target students at school studying agriculture at Magamba and induct them into farming through linking them with the experienced and retiring-farming population in Mutare rural and urban, solving demographic-imbalanced participation in agriculture and succession dispute in the industry, hence building social and human capital aiming toward natural capital. This opportunity is for those who hold a certificate in Agriculture with interests in engaging with our farmers, we offer them an opportunity to join our task-force. Besides, we then establish a learn-as-you-invest platform through the investor engagement indirectly inducting them into the farming sector as they monitor their investment.

02.05.01 My startup contributes to the Gender equality goal

6

02.05.02 Gender equality - Justification for my startup

In Zimbabwe, where agriculture employs almost three-quarters of the population, women are the backbone of the sector constituting around 70 percent of household labour in rural communities. They are also the linchpin of homes, heading more than 40 percent of households in rural areas. 55% of our beneficiary farmers and vocational training students under our attachment are women. Hence, we ensure nobody is left behind in implementation of our projects as according to SDG 5. We are aware of the fact that women produce 70% of the continent’s food. Yet, they are the most vulnerable members of our farming community, facing obstacles in accessing land, finances, and education because of gender inequalities and our changing climate.

02.06.01 My startup contributes to the Clean water and sanitation goal

3

02.06.02 Clean water and sanitation - Justification for my startup

02.07.01 My startup contributes to the Affordable and clean energy goal

7 - Strongly Agree

02.07.02 Affordable and clean energy - Justification for my startup

In our Energy for Food pillar we seek to upscale the use of renewables solutions in the agri-food sector; to improve livelihoods, stimulate economic activity, and reduce poverty. Small holders’ farmers are a significant contributor to the country’s food supply yet many of these farmers live in some of the poorest regions with most of them lacking electricity access. Hence our farmers have adopted renewable energy technologies such as utilizing solar boreholes and pumps whilst using drip irrigation models that are resilient in cases of drought. However, farmers often do not have the means to cover the high capital costs associated with clean energy upgrades, and financing is seldom available. Our solution to the challenges in accessing debt and equity lies in our partnership with Empower Bank financing the purchasing of irrigation equipment requirements whilst the investors funds mobilized through crowdfunding finances inputs and labour. Just as guided by our Blended finance framework.

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

Through partnerships, collaborations, and commitment by all stakeholders participating in our business model, Zimbabwe’s rapidly growing youth population can realize its potential to secure its food supply, create decent jobs, create sustainable livelihoods, and boost inclusive economic growth. In sub-Saharan Africa, about 60% of the unemployed are youths (ILO, 2010). We believe young people of Zimbabwe will continue to be agents of change and inspire our fellow peers to be engaged in agri-food systems. Our economy is heavily dependent on agriculture which contributes 15%-20% to the GDP, 40% exports and 60% of raw materials utilized by the domestic manufacturing industry. 70% citizens depend on agriculture for their livelihood. Cultivating youth entrepreneurship in agricultural value chains is critical to addressing youth unemployment in Zimbabwe. Farming has the potential to transform young people’s lives including orphaned and vulnerable children, and those living with disabilities.

02.09.01 My startup contributes to the Industry innovation and infrastructure

4

02.09.02 Industry innovation and infrastructure - Justification for my startup

02.10.01 My startup contributes to the Reduced inequalities goal

4

02.10.02 Reduced inequalities - Justification for my startup

02.11.01 My startup contributes to the Sustainable cities and communities goal

4

02.11.02 Sustainable cities and communities - Justification for my startup

02.12.01 My startup contributes to the Responsible consumption and production goal

4

02.12.02 Responsible consumption and production - Justification for my startup

02.13.01 My startup contributes to the Climate action goal

7 - Strongly Agree

02.13.02 Climate action - Justification for my startup

Climate change is impacting all areas of agriculture, the environment and the total ecosystem. Our end-to-end solution for smallholder farmers enables them to access quality inputs through inputs financing and practising precision farming to get increased yields, compared to traditional cultivation technics. Precision farming enables climate smart agri-business towards slow input, high efficiency and sustainable agriculture. Our focus is on basic, affordable, and effective mix of technologies and practices. These involves agriculture extension via digital advisory services, drip irrigation, solar pumps, soil and crop monitoring and technology through Global Positioning System (GPS) receivers, Geographic Information Systems and Variable Rate Application. Reducing food loss and waste can be a triple win: It can save money for farmers, companies, and households; wasting less can feed more people; and reductions can alleviate pressure on climate, water, and land resources.

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

6

02.15.02 Life on land - Justification for my startup

Our project site areas implement sustainability initiatives that call for practices that maintain or improve soil conservation and improve the overall health of soil. Two processes, regenerative agriculture and precision agriculture, working in conjunction, will actually provide a long-term solution by combining environmental and farm science with technology as explained above under climate action. We train on regenerative agriculture practices to our farmers which in fact goes beyond soil conservation. The conservation and regenerative process focuses on restoring soil health, solving water issues, reversing carbon cycles, and creating new topsoils and growing environments. For example, with our farmers doing green mealies projects we encourage technics such as zero tillage method called Pfumvudza. Pfumvudza means a new season of increased productivity; it is a season of producing more on less land and with less resources; a season of climate proofing our agriculture.

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

2

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

02.17.01 My startup contributes to the Partnerships for the goal

7 - Strongly Agree

02.17.02 Partnerships for the goal - Justification for my startup

Our Blended Finance Model, which is the strategic use of development finance for the mobilization of additional commercial finance towards sustainable development in Zimbabwe. This is the blending together of commercial (investor crowdfunding) and developmental funds (agriculture and youth empowerment banks) to achieve SDG 1- Zero Poverty using SDG 17 which is on Private-Public Partnerships. The company provides project and investment management services through transparent evidence-based Monitoring and Evaluation services. Partnership with Young Entrepreneurs Trust Zimbabwe allows for effective monitoring, Magamba Vocational Training Centre provides students who do attachment at project site areas. We collaborated with the farmer, investor and off-taker providing an end-to-end precision farming solution through smart inputs for smallholder farmers. Partnering Empower Bank allows for financial literacy training and financial products such as loans for irrigation equipment setup.

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

1 - Strongly Disagree

06.02 The product/service represents an entirely new type of product/service.

7 - Strongly Agree

06.03 The product/service could be described as a new technology.

7 - Strongly Agree

06.04 The product/service is an improvement on an existing product or service.

5

06.05 The product/service could be described as an extension of a range of products or services.

5

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

5

06.07 The product/service is a new version of an old product/service.

1 - Strongly Disagree

06.08 Justification for my startup

Our economy has lost 100 % confidence in other financial investment platforms (Stocks, bonds, bank products) which tend to take longer to maximize returns due to unstable economy and inconsistency of government policy. To counter that, we are introducing agriculture horticulture commodities as the new platform in Zimbabwe. Our competitive edge is that agriculture commodities’ performance does not depend on the financial health of the economy but rather on the economics laws of supply and demand. Facts like the doubling demand for food, the doubling and aging African population in the sector validate that this economic law in agriculture is at a huge mismatch. Adding on, investment in Zimbabwe requires short term investments with higher and quicker returns since the population lives on a hand-to-mouth basis. As a result, our new e-commerce platform solution called MBEU in agriculture commodities the best investment portfolio to store and increase monetary value in the short term.

06.09 Competitive Analysis

Where agriculture credit has been made available by Banks and Microfinance institutions who are our competitors, it tends to favour large scale commercial farmers with very little going towards the small-scale farmers. This has left the majority of the small-scale farmers (communal, resettlement and A1) farmers in prolonged periods of underdevelopment and poverty. However, our financial inclusion strategy uses crowdfunding in agriculture as a new actor on the financial investment table to solve the dual-investment mismatch for both farmers with the need for investment to scale-up production, and those with available savings and interests in farming yet without land as they are still financially incapable of buying land which is very expensive in Zimbabwe.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

55% of our farmer beneficiaries are women. For smallholder female farmers in Zimbabwe, cultural norms and lack of collateral often prevent women from borrowing money. Without adequate funds for capital investments, female farmers are less likely than men to buy and use fertilizer, drought-resistant seeds, sustainable agricultural practices, and other advanced farming tools and techniques that increase crop yields. Hence, we have gender inclusive approach in our financial empowerment strategy.