Kenya - Business creation project

Describe your project or startup in a few words

Sun Foods aims to develop an all-in-one, solar powered, crop drying and cold chain solution that small scale farmers can access at a small pay-as-you-use fee. Setting up these hubs in various locations across the country and the continent at large.

01.01 Describe your project in more detail

Our project aims at creating a network of solar powered cold chains and crop storage hubs all across Africa. Farmers will be able to store, dry and process their harvests within these hubs at subsidized pay-as-you-use rates which will make it affordable to most farmers in Kenya and Africa in general. The hubs will also be fully powered by solar energy, that powers a heat pump to move heat between the drying and cooling chambers, the two main requirements when it comes to food storage and post processing. To create this, we intend to begin by developing the first integrated cold chain and crop storage hub in Africa and use the data gained from it to model and shape how the rest of them will be deployed. Overall, we aim to develop and deploy more than 500 hubs across the African continent in 10 years that will serve more than 5 million subsistence farmers.

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

A lack of access to proper and affordable post harvest storage for farmers has seen Africa lose more than 30% of its food harvest negatively affecting the income of a majority of its farmers. The United Nation’s Food and Agricultural Organization (FAO) estimates indicate that post-harvest losses can reach up to 30 per cent for cereals, 40 per cent for dairy and fish and 50 per cent for fruit and vegetables. Lack of proper storage not only reduces their economic strength but it also makes farmers vulnerable to low prices demanded by middlemen who leverage their lack of storage equipment to take advantage of them a factor largely compounded by the fact that many farmers in Kenya practice subsistence farming. Despite the fact that Africa has more than 50 million small holder farmers who produce its largest share of food, many of them still live on less than $5/day fueled by this exploitation due to the lack of access to post harvest services that the large-scale farmers receive.

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

1. Improving our food security by reducing post harvest losses among small scale farmers as they will be able to cool or dry their produce as needed. This increases their shelf lives by more than double allowing for harvest to last longer before they are consumed. 2. Improving their shelf life also improves the livelihoods of farmers who can now negotiate for better rates for their harvest as they can store them for longer. We also aim to provide them with a market linkage platform where rural farmers can access better markets and significantly improve their economic situation. 3. Our project also aims to improve the energy independence in agriculture and lower green house emission as these storage hubs will be fully powered by solar energy which is an off grid and renewable energy source that is abundant across the African continent. 4. Creating more jobs across the agricultural value chain that will be needed to construct, deploy and operate these storage hubs locally.

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

Our target beneficiaries are small to medium sized farmers who also form the majority of farmers in Africa. In Kenya subsistence farmers contribute nearly 80% of all the food produced in Kenya but despite this majority of them still remain poor. With estimates putting the number of farmers who live on less than $5 a day at about 60% of the more than 5 million farmers countrywide. It is these farmers that we intend to improve their economic abilities by protecting them from poor market prices that rarely breaks even their input cost. Farmers will be able to access our facilities at rates that are less than $2/day greatly improving the access of post harvest services that their large scale counterparts have been able to access.

01.05 When did you start working on your project?

2024-01-10

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

4

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.)

Brian Ouma will act as the overall project lead and will guide on the direction of the project and implementation. He holds a degree in Mechanical Engineering and has had more than 5 years’ experience in solar and other alternative energies. Mwashimba Mtalaki will be the operational lead ensuring that the various parties work seamlessly together and that the implementation goes on according to schedule and budget. He holds a degree in Mechanical Engineering and has worked in Kenya's leading energy company. Brian Chege will be the finance and resource officer ensuring funds are utilized efficiently and that the team is working effectively. He holds a degree in Finance. Lastly Wambui Njuguna will be our business development manager. Her experience in project research and strategy will be key in growing the business model to be able to scale and reach more farmers. She holds a degree in structural engineering with more than 8 years in practice.

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

6

02.01.02 No poverty - Justification

With data showing that more than 60% of small holder farmers in Kenya live on less than $5 a day and the fact that agriculture is the largest contributor to our countries Gross Domestic Product (GDP). Our project aims to directly impact farmers income by improving their selling power and enabling them to source for better markets. This we estimate will be able to increase their income by more than 30% and even 50% through the addition of other support systems like digital platforms, short term loans and transport services that we aim to integrate into these hubs as we grow further. All these will be able to uplift the lives of more than 5 million farmers and their dependents from poverty.

02.02.01 My project contributes to the Zero hunger goal

7 - Strongly Agree

02.02.02 Zero hunger - Justification

Reducing food waste not only improves our food security but also improves the supply of food in the market which has the net effect of lowering the cost of food for many people. Foods that have largely been imported to supplement local production that is under par due to these losses such as maize, may no longer need to be imported and these can lower their cost making them accessible to many people. Our project also improves on food nutrition through better storage practices, improving the farm to fork value chain and consequently the quality of food that reaches your plate. Addition of solar power to these hubs also promotes the adoption of renewable energy in the overall food value chain thus promoting sustainable agriculture and lowering green house gas emissions that emanate from the use of grid or diesel powered storage solutions.

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

5

02.03.02 Good health and well-being - Justification

Better health always start at better food and better nutrition. As discussed earlier our project aims at making food more accessible by lowering storage and handling costs for end user and also improve on nutrition through better storage practices. Both of these have the effect of improving the overall well being of societies and communities who are now able to access affordable and more nutritious food.

02.04.01 My project contributes to the Quality education goal

1 - Strongly Disagree

02.04.02 Quality education - Justification

02.05.01 My project contributes to the Gender equality goal

5

02.05.02 Gender equality - Justification

Culturally within the African context it has been the women who have traditionally tended to farms. This is still reflected in the food value chain where there are more small scale women farmers and food vendors popularly known in Kenya as 'mama mboga'. A solution that is thus seeking to empower small scale farmers and small holder resellers who can access food from our hubs at reduced prices will consequently benefit the many women who participate across the farm to fork value chain. We also aim at infusing deliberate efforts in empowering women by employing the majority of them as hub operators and cleaners in ensuring our food storage hubs are always well maintained.

02.06.01 My project contributes to the Clean water and sanitation goal

2

02.06.02 Clean water and sanitation - Justification

02.07.01 My project contributes to the Affordable and clean energy goal

7 - Strongly Agree

02.07.02 Affordable and clean energy - Justification

Powering these hubs with renewable energy like solar power makes them centres for productive use of clean power by many stake holders such as the farmers and buyers. This means our renewable energy use per capita also improves as many people depend on farming activities for their daily income. We also aim to oversize the solar panels at these hubs slightly so as to produce slightly more power that can be used by the surrounding communities to charge lanterns, radios, phones and other small devices free of charge thus improving their access to free and sustainable energy.

02.08.01 My project contributes to the Decent work and economic growth

6

02.08.02 Decent work and economic growth - Justification

As we scale it will be very necessary to fabricate, deploy and operate these hubs countrywide and continent wise. From welders, installers, painters, engineers needed to build and deploy these hubs to cleaners, security guards and managers needed to operate these hubs our project aims at creating decent job opportunities for the many people who remain un or under employed in Kenya. Looking at the entire value chain one can see that their will be economic gain all the way from those employed to deploy and operate the hubs, the farmers who use the hubs to the resellers and transporters who will be engaged in purchasing from these hubs and delivering to customers. And with agriculture contributing most to our GDP the economic growth will not only be at individual level but nationally.

02.09.01 My project contributes to the Industry innovation and infrastructure

6

02.09.02 Industry innovation and infrastructure - Justification

As a novel concept, there are no solar powered, heat pump units that are capable of cooling and drying food all at once in Africa currently. As such this is an innovation that we aim to develop and deploy by training more people on the designing, construction and operation contributing to the growth of industry, infrastructure and innovation. Powering these hubs with solar enables them to operate off the grid, making them resilient to effects of climate changes such as heavy rains which usually rains to the cut off of grid power and thus they can continue operating even during natural calamities. Their development also involves much of manufacturing works in fabricating these units and fitting the heat pumps, solar panels and electrical controls to the units fostering sustainable industrialization in the countries that we shall be operating in the long run.

02.10.01 My project contributes to the Reduced inequalities goal

5

02.10.02 Reduced inequalities - Justification

If well developed our solution is capable of touching the lives of many people at various levels. From creating jobs to build and operate these units, improving farmer incomes by lowering harvest losses, to increasing trade amongst transporters, sellers and buyers who purchase the food. We also aim at creating a digital platform that showcases the produce stored at each hub enabling individuals even outside the country to purchase directly from the platform improving the country's export earnings. All the above have a huge and real potential of improving a countries GDP and consequently reducing inequalities amongst countries.

02.11.01 My project contributes to the Sustainable cities and communities goal

2

02.11.02 Sustainable cities and communities - Justification

02.12.01 My project contributes to the Responsible consumption and production goal

5

02.12.02 Responsible consumption and production - Justification

As the units are powered by solar power we will be reducing the amount of green house gases emitted throughout the farm to fork value chain, notably at the processing and storage stage which usually consumes the most energy. As such our projects promotes responsible production of food a campaign that we aim will also attract more responsible farmers to store with us and consumers to purchase from a like minded company. We also aim at making these hubs training points for farmers where we can invite agricultural officers and companies to train the local farmers on sustainable farming practices further cutting down on unclean farming techniques and lowering emissions across the entire spectrum.

02.13.01 My project contributes to the Climate action goal

3

02.13.02 Climate action - Justification

02.14.01 My project contributes to the Life below water goal

1 - Strongly Disagree

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

1 - Strongly Disagree

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.

3

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

7 - Strongly Agree

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

6

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.

3

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

7 - Strongly Agree

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

3

05.08 Justification

Our integrated storage and cold chain hubs are a combination and improvement of the currently existing drying and cold chain solutions locally available. Despite this many drying and cold chains have been targeted at large scale farmers leaving many small holder farmers out of this service. Our hubs are small in scale making them ideal for small scale farmers and easily to transport and erect at remote areas. We seek to improve on the current technology by replacing the standard cooler with a heat pump that is able to move heat from the cold storage chamber into the drying chamber and powering all these with solar. As such we'll be creating a new product all together by improving on an existing product. Over time we intend to add more innovations to the product such as a digital platform, a financing scheme for the farmers collateralized by their stored produce in offering not only an innovative product but service in whole.

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

Our competitors include other powered chillers that utilize grid energy or diesel fuel making them much more costly to run as opposed to us. There are also solar powered coolers but they use the normal refrigeration cycle that still consumes a lot more energy and thus one has to oversize the solar system. Our system uses a heat pump that consumes way less energy reducing the size of the solar system required and set up cost as well. Ours is also the only existing one that can cool and dry produce all at the same time thus offering greater value per dollar that was spent in developing it. Our hubs will also be cheaper to operate and run as they will be powered by solar which is free as opposed to the current ones that are powered by either grid power or diesel generators both of which are expensive compared to our energy source.

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

No