South Africa - Business creation project

Describe your project or startup in a few words

The Kalafo- Green Thumb Initiative is a hydroponic farming scheme aimed at diversifying fresh produce sources, creating sustainable and equitable and cultivating production potential within South African townships.

01.01 Describe your project in more detail

Kalafo is a community-focused initiative that aims to develop sustainable production potential within the youth of South Africa, spearhead innovation within the agricultural sector as well as tap into the infinite well of potential that is the South African youth. The aim is to provide training and consequently hydroponic farming kits to unemployed young people in townships. Secondarily, establish a virtual market that connects these now-vegetable farmers to local businesses that need these raw materials- these range from vendors to small restaurant owners. Kalafo’s objectives are two-fold: to reform the way that vegetables are produced by pioneering hydroponic micro farming, as well as to establish a circular economy within the townships, which are unique in their invaluable contribution to the informal economic sector. Additionally, by reducing the costs associated with stocking up, Kalafo enables small businesses to expand, amplifying their impact within the communities they serve.

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

The main problem I am trying to solve is the centralisation of vegetable production in this country. Vegetable production has become uncompetitive, and small-scale farmers are almost completely unable to generate notable profits from their produce. This obviously cascades into several other issues, specific to the township are: inaccessible prices, increased costs of operation for vendors who are purchasing from large-scale commercial farmers, supply-demand mismatch as stagnant commercial farmers are unable to cater to South Africa’s growing population, demoralisation of small-scale farmers and other business owners whose products require access to fresh produce such as restauranteers, shisanyamas and agriprocessors. Our economy has reached a critical state that requires citizens to sieze control and gain financial agency. Entrepreneurship is the only way to achieve that, and while many young people are being taught this narrative, how can we teach a man to fish and not give him a rod?

01.03 Tell us the major benefits and/or advantages of using the product/service that your project intends to provide (at least 3).

The first and most obvious advantage of hydroponic farming is that it greatly reduces resource expenditure: no soil is requires as crops are grown in a nutrient solution, far less land is required as crops grow vertically upwards, the Kratky method (which Kalafo intends to use) does not require any electricity at all and is fully passive. Hydroponic farming also produces yields at faster rates than conventional methods. Secondly, what is unique about Kalafo is its focus on innovation and education. It is important for young people to gain entrepreneurial skills and gain insight into cutting edge advancements that are changing the world- such as hydroponic farming. Thirdly, the creation of a circular economy is incredibly crucial not just to increase the purchasing power of individuals in that community, but to build a sense of self-sustenance and pride. If a restaurant-owner can buy fresh produce from his neighbour whom he trusts to make stew, the same vendor will happily buy the stew!

01.04 Please describe who exactly your project is aimed at serving. Who are the targeted beneficiaries?

The project is aimed at serving the residents of townships and informal settlements who would like access to affordable and reliable fresh produce. These individuals are unique for several reasons: unlike those in rural areas, they likely do not have the time nor the expertise to grow their own vegetables, and unlike those in suburbias, they are more likely to focus solely on price and not status symbols when making purchases. Additionally, these townships have consistently demonstrated their resilience and grit, making a tremendous 5.2% GDP contribution. There is evidently massive market potential here. Mos township vendors have to travel nearly 30km to the nearest commercial farm to stock-up on produce to sell, which is very difficult since most of them do not own motor vehicles and make use of public transport. By empowering farmers within the township, Kalafo gives vendors and other business owners easy, reliable and local produce.

01.05 When did you start working on your project?

2023-07-01

01.06 How many other partners are associated with your business venture?

1

01.07 Among the other partners, how many are female?

1

01.08 Please describe the profile of each of the other partners (skills, experience, etc.)

Realeboga Mmethi (Founder): Realeboga is a passionate, tenacious and driven young black girl whose dream is to transform the majestic continent of Africa one youth programme at a time. A full-time Phsyiotherapy student at Stellenbosch University, she dedicates much of her free time as she can engaging in advocacy and skills training of high school students. She serves on the Student Representative Council of the Tygerberg Medical Campus, coordinates and adjudicates at debating tournaments for the National Debating League. She also functions as the debating coach at Milnerton High School, and volunteers for a variety of programs hosted by the South African Schools Debating Board. In her own right, she is an international debating champion who boasts such as skills as research, critical thinking, public speaking, conflict resolution and all things leadership.

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

01.10 Which industry best describes your project?

l) Agriculture

02.01.01 My project contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification

At its core, Kalafo is an empowerment social enterprise that seeks to generate economic agency within communities. By giving unemployed youth access to education about agriculture, hydroponic farming kits and a virtual market on which to trade, we aim to kickstart a domino effect that ultimately eradicated poverty. It is important to note that poverty does not just refer to having no access to basic needs such as food and water. Poverty is a cyclic ill that traps so many people at the bottom of the food chain. It is resultant of being locked out of education, having no marketable skill development and being located far away from economic hubs. Kalafo aims to provide valuable education and skills training for the youth, as well as creating a sustainable marketplace that not only allows farmers to get real value for their produce and have decent income, but also allows other small business owners to purchase produce at reasonable prices. This effectively reduces cyclic poverty.

02.02.01 My project contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification

The food poverty line in South Africa is R760, which is about 21% less than the average cost to feed a child a basic nutritious diet. This is an indication that there is a gap, and food insecurity is indeed an epidemic. Considering the high unemployment rate, the R530 child support grant and the R350 unemployment grants given out by the government are not at all enough to eradicate hunger. By making fresh vegetables more easily accessible and affordable, Kalafo’s impact in communities is two-fold: it allows for an increase in the QUANTITY of food that households are able to purchase, as well as improving the QUALITY of their diet. Instead of purchasing processed foods with high fat, sugar and sodium content, households can more comfortably spend on fresh produce without breaking the bank.

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

7 - Strongly Agree

02.03.02 Good health and well-being - Justification

Grassroots agricultural projects have an excellent track record of bringing people of all ages together, as well as promoting good health and wellbeing. We do not intend for Kalafo to be any different. Tending to crops is a physically engaging activity that can be enjoyed by people of all ages. Residents of townships tend to be more prone to sedentary lifestyles due to the high unemployment rates and lack of recreational facilities, we firmly believe that a project like Kalafo will enable to get off their feet and get some steps in. Additionally, there is ample literature supporting the mental and psychological benefits of gardening or being outdoors. High crime rates, food insecurity, lack of access to clean water and sanitary facilities are all part of the innumerable everyday stresses of living in most South African townships. It is imperative that we recognise the need for a reprieve, and that such projects that involve gardening, being outside and engaging with nature are ideal.

02.04.01 My project contributes to the Quality education goal

7 - Strongly Agree

02.04.02 Quality education - Justification

One of the major reasons for the slow adaptation of hydroponic farming in the Southern Hemisphere is just how little education is available. The average person has no idea that there are modes of farming that do not involve any soil, and this lack of information greatly inhibits innovation. Through Kalafo, many young people will gain access to information and skills training that is otherwise unavailable. Not only will they learn about the types of nutrients that different plants need to survive, how to care for and harvest crops, how to manage and document business expenses, but they will also get to implement these newfound skills in real time. Entrepreneurship is a life-long journey of learning, and those who are part of the Kalafo program will gain many skills that are translatable far beyond the program.

02.05.01 My project contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification

As a black female myself, I am not oblivious to the tiered struggles that women face. From having limited access to employment opportunities, to pay gaps, even to unfavourable working conditions such as being denied maternity leave. Kalafo aims to create equitable access to means of production and income sources. This means creating opportunities for female vendors and business owners, actively empowering them and being considerate of other responsibilities that they may have within their communities such childcare. Such considerations will be built-into our business model and not taken as an afterthought. It is no secret that women have always been instrumental in building economies and supporting community initiatives, and our goal at Kalafo is to recognise, celebrate and uphold these contributions.

02.06.01 My project contributes to the Clean water and sanitation goal

7 - Strongly Agree

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

4

02.07.02 Affordable and clean energy - Justification

02.08.01 My project contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification

It is true that South Africa has a high unemployment rate, but it also true that there are many South Africans employed in the informal sector, earning less than minimum wage and unfavourable working conditions. This is primarily because small business owners do not own their means of production. They simply cannot afford to pay workers more to have them work less hours because they do not have the financial means to support this kind of change. Through Kalafo, the costs of running a vegetable stand or restaurant in the township will be reduced significantly for the following reasons: producers are located closer to consumers thus reducing transport costs, hydroponic vegetables are cheaper to produce and faster yield times which makes them cheaper to sell. This allows small business owners to have more financial leeway to pay workers more, and employ more workers thus reducing the working time per employee. This creates decent working conditions and promotes entrepreneurship and growth

02.09.01 My project contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification

South Africa’s population is growing exponentially, with it, a demand for food. Due to the country’s history, agriculture is inherently politicised as it is intertwined with land expropriation and redressing historical inequalities. At the rate at which it’s going, it will likely be decades before this dispute is settled. That creates a problem: the country needs more food, the primary means of acquiring this food is via the land, the land as it stands is a complicated issue. How do we solve this? Hydroponic farming is the answer. It will not only reform the farming of most vegetables in South Africa (most leafy vegetables, tomatoes, cucumbers and all herbs are examples of what hydroponic farming can produce) but it will also make agriculture more accessible. One no longer needs large plots of land, expensive machinery or lots of electricity to produce vegetables. It can all be done passively and vertically. That is how Kalafo brings innovation and structural improvement into farming.

02.10.01 My project contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification

South Africa’s current spatial planning is a reflection of our painful history of inequality. It is important to consider this spatial planning when attempting to redress this inequality. Kalafo achieves this in several ways: it seeks to establish production centres WITHIN townships to build a circular economy. There is a multitude of challenges associated with out-of-city farmers trying to access in-city markets. Additionally, it seeks to create a marketplace that seeks to connect other businesses within the same community. This reduces inequality by creating a circular economy in which participants are able to declare the value of their goods and labour as they see fit. This allows township businesses to grow and expand, generate income and fulfil their corporate-social responsibility effectively. Given that these businesses are deeply rooted in the community, they are likelier to give back and contribute to the community’s development, thereby accelerating development.

02.11.01 My project contributes to the Sustainable cities and communities goal

7 - Strongly Agree

02.11.02 Sustainable cities and communities - Justification

The recent sweep of environmental consciousness has resulted in a rise in the popularity of rooftop gardens and urban green zones. The rationale here is that more plants need to be incorporated into urban spaces to aid in the quality of the air which ultimately reduces pollution and moderates temperatures. These “green zones”, however, have almost been localised to large cities. Kalafo is adapting this vision for townships, where it is even more important to implement such strategies to reduce pollution as these spaces are often congested and overpopulated. Kalafo will aid other present initiatives to create more environmentally conscious and greener cities by encouraging the planting and tending of different plant species. Having gained knowledge of hydroponic farming, individuals will understand that they do not need soil to grow plants.

02.12.01 My project contributes to the Responsible consumption and production goal

7 - Strongly Agree

02.12.02 Responsible consumption and production - Justification

Ironically, while the globe battles hunger, we also battle food wastage. One of the reasons why food wastage runs so high is negligent or irresponsible farming that results in the production of many non-viable products. These products may be contaminated by pesticides and herbicides, or they may not be the desirable shape or size due to environmental factors. Kalafo aims to develop an air-tight training program that will ensure that farmers have insight into how volatile their crops may be and how they should handle them. Additionally, by focusing on community development. Kalafo encourages an open relationship between consumers and producers for the purpose of providing feedback. This will potentially reduce wastage as producers can increase or decrease their supply consequent to real-time input from customers.

02.13.01 My project contributes to the Climate action goal

4

02.13.02 Climate action - Justification

02.14.01 My project contributes to the Life below water goal

4

02.14.02 Life below water - Justification

02.15.01 My project contributes to the Life on land goal

4

02.15.02 Life on land - Justification

02.16.01 My project contributes to the Peace justice and strong institutions goal

4

02.16.02 Peace justice and strong institutions - Justification

02.17.01 My project contributes to the Partnerships for the goal

4

02.17.02 Partnerships for the goal - Justification

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

5

05.02 The product/service we envision creating represents an entirely new type of product/service.

5

05.03 The product/service we envision creating could be described as a new technology.

7 - Strongly Agree

05.04 The product/service we envision creating is an improvement on an existing product or service.

7 - Strongly Agree

05.05 The product/service we envision creating could be described as an extension of a range of products or services.

6

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

4

05.07 The product/service we envision creating is a new version of an old product/service.

4

05.08 Justification

Until very recently, hydroponic farming was used exclusively by cannabis farmers and suburbian housewives with herb gardens. Kalafo is aiming to stretch this technology beyond its current uses and to diversify the sources of fresh produce. Additionally, Kalafo is specifically targeting townships, which is contrary to the typical development of large-scale commercial hydroponic farms. It is focused on creating economic agency, by not only giving young people the skills to farm hydroponically (as some educational initiatives might) but also giving them opportunities to exercise the skills and gain income. It is a combination of skills development and economic restructuring, which is a unique approach in the current South African market.

05.09 Who are your main potential competitors and what makes you stand out from them?

Fortunately for Kalafo, hydroponic farming has yet to take off in South Africa so there are not many competitors. There has been a recent increase in the number of rooftop hydroponic farms in the city of Johannesburg, although many of these are either subsistence farms or owned by a single individual. Future Farms South Africa is a consultation firm that provides education and installation services relating to sustainable farming. Kalafo differs from these avenues in the following ways: We are focused on capturing a specific market- the vegetable consumers in the township. This is a much easier market to infiltrate that the general consumership because of the laser-focus on prices. Additionally, Kalafo aims to establish a virtual market to allow these farmers to trade, thereby connecting other businesses and engaging with a group much larger than the farmers. This ensures that the initiative is not only impactful, but is also profitable.

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

Yes. I myself am an aspiring female entrepreneur and am very passionate about female empowerment in all spaces. Through the Stellenbosch University Launch Lab and the Allan Gray Orbis Foundation, I have access to many seminars and social gatherings where I meet and interact with female entrepreneurs. This gives me an opportunity to support their businesses and promote them on platforms such as social media and in my social spaces.