PROJECT

Projects

Summary of Investment Information

Project Number

41195

Company Name

Twiga Foods Limited

Date SPI Disclosed

Jun 19, 2018

Country

Kenya

Region

Africa

Projected Board Date

Jul 20, 2018

Environmental Category

B - Limited

Status

Active

Last Updated Date

Dec 22, 2018

Department

Disruptive Technologies and Funds

Industry

Agribusiness and Forestry

Previous Events

Approved : Aug 28, 2018
Signed : Oct 27, 2018
Invested : Dec 20, 2018

Sector

Wholesale (Including Grocery and Farm Products)

Additional Project Attributes

Blended Finance

Project Description

IFC, acting for its own account and in its capacity as implementing entity of the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), is considering to invest a minimum of US$ 3 million alongside other investors including TLCom who will invest up to US$ 4 million in the Company.

Launched in 2014, Twiga is a fast growing, mobile-based B2B m-commerce platform using technology to 
enhance supply chains by more effectively and rapidly consolidating highly fragmented supply and demand. Starting with the large target addressable mass-market Fresh Food and Vegetable (“FFV”) segment, Twiga more efficiently matches supply and demand between small-scale vendors and small-scale farmers. By cutting out multiple layers of middlemen, Twiga eliminates wastage and inefficiencies in the FFV value chain, ultimately resulting in lower food prices for mass market end-consumers.

Twiga offers stable, transparent prices and guaranteed offtake for farmers and convenience and reliability for small-scale vendors, e.g. street sellers and kiosks through the platform. Twiga started off with bananas, but has since grown to include other produce such as mangoes, potatoes, onions, tomatoes and cabbages and plans to onboard more products in the near future.

Associated Advisory Engagement

The Global Food Safety Team is in discussions with Twiga for a potential advisory project funded by the Global Agriculture and Food Security Program (GAFSP). The Team proposes to support Twiga in designing a Twiga Good Agricultural Practices (GAP) Brand which will enable the farmers that Twiga works with to increase farming yields through improved agricultural practices, which will lead to positive demonstration effects for other domestic players as well. This project will initially be run as a pilot involving 30 banana farmers who will undergo baseline assessments, training and mentoring before rolling out to other farmer groups. Other potential services that will be offered include: building in-house capacity to assess farmers and implement a Quality Management System, implementation of a food safety management system and training and coaching of Twiga Agronomists. 

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation