In Kenya, 98 percent of agricultural produce is sold informally and farmers struggle to access credit facilities due to lack of proper record keeping. Twiga, an m-commerce agribusiness that has recently grown with Hub support, is trying to change this.
Twiga provides their produce suppliers with a transaction history that they can access through a mobile platform. Farmers can use these transaction logs as financial records to access credit from financial institutions.
“For small businesses like mine, it is difficult to get loans from banks and microfinance institutions. I have nothing to offer as security for the loan. Using the loan that Twiga enabled me to get from IBM, I was able to increase the quantity of my stock and serve my customers better. I can now buy new commodities which brings in new customers. I am now making more money from my kiosk and the business is constantly growing.” Said Mark Kimotho, vendor in South C, Nairobi, Kenya
Twiga reached out to the USAID Hub for support in developing a robust growth strategy to support its fundraising process. The USAID Hub’s transaction team delivered a strategic and operational plan which included milestones and objectives for implementation. Twiga Foods used these materials throughout the fundraising process to give debt and equity investors confidence in the business as well as meet critical conditions needed to achieve financial closure.
We leveraged the USAID Hub’s work to gain funding and forge impactful partnerships. With their help we have grown and expanded our business even further.” Said Mahia-John Mahiani, CFO, Twiga Foods In the past four years, the USAID Hub has helped close $143.2 million of investment transactions, enabling firms to create 1,522 new jobs, including employment for 1,131 women and youth. In addition to new employment, these transactions support greater access to finance, food security, stronger value chains and intra-regional trade, contributing to the region’s economic development.
Find out more about Twiga by clicking here.