HUB FACT SHEETS, INFOGRAPHICS & SUCCESS STORIES Trade & Investment News Read Our Blog Newsletters

Rwandan agribusiness secures capital for growth – farmers and consumers gain

Published on May 15, 2018

Yak Fair Trade is one of six companies that GroFin has invested in since partnering with the USAID Hub six months ago. The six investments, totaling $3.3million, brings the Hub’s overall supported investment closure to $103.4 million. The USAID-supported GroFin program is helping East African agribusinesses get the support they need to secure financing, expand their businesses and ultimately serve as models for demonstrating that investing in agriculture is worthwhile and transformative for individuals and economies.

Rwanda Agribusiness “Yak Fair Trade” is creating jobs and expanding the availability of nutritious foods thanks to a grant program to GroFin funded by the USAID East Africa Trade and Investment Hub (USAID Hub). The program is helping East African agribusinesses get the support they need to secure financing, expand their businesses and ultimately serve as models for demonstrating that investing in agriculture is worthwhile and transformative for individuals and economies.

YAK_Fair_Trade_Rwanda_3.jpgSeventy-five percent of Rwanda’s workforce is concentrated in agriculture. The sector is crucial to the livelihoods of millions of people and is the backbone of the Rwanda’s economy. Despite this, agribusinesses often find it difficult to secure the financing they need to grow their companies and expand their offerings. The USAID Hub’s grant to GroFin, a development financier which specializes in providing finance and support to small and growing businesses, is trying to change this.

With USAID Hub/GroFin support, Yak Fair Trade secured financing to expand the milling capacity of its maize flour plant and purchase a refrigerated distribution van for its meat processing venture. The milling expansion helped Yak secure a new supply contract from Africa Improved Food (AIF) and the refrigerated distribution van allows Yak to reach consumers in the Rwanda capital of Kigali. AIF specializes in producing nutritious foods for infants and pregnant and breastfeeding mothers.

GroFin is also assisting the business to reach its long-term, strategic goals through a detailed environmental impact assessment and by helping the company redefine the duties and responsibilities of its main shareholders for improved corporate governance. The combination of business support and access to finance is putting Yak Fair trade on a sustainable growth path.

“Getting a job in Yak Fair trade has financially transformed my life, my three children are now sent to school and I can secure few savings every month in provision to possible future hard times and personal development. I am also planning to open a small shop for my wife in near future from the money I am earning from this my new job with Yak Fair Trade Ltd,” said JM Ndagijimana., Yak’s new operation officer.

Ultimately, Yak’s growth also means growth for the 65,000 smallholder farmers who supply Yak and for the hundreds of thousands of consumers who rely on Yak for its nutritious products.

“With GroFin’s finance and support, we are set to deepen our reach to farmers, expand employment to four times the current levels, and improve food security for the community,” said Janvier, the company’s co-founder and Chief Operations Officer.

Yak Fair Trade is one of six companies that GroFin has invested in since partnering with the USAID Hub six months ago. The six investments, totaling $3.3million, brings the Hub’s overall supported investment closure to $103.4 million.