The 2SCALE programme started in 2012, and has developed one of the largest incubators of inclusive agribusiness in sub-Saharan Africa. Incubate and accelerates inclusive business through public-private partnerships (PPPs) specially with African SME’s and farmer producer organizations. A second phase for the programme was recently approved. This new stage seeks to build on the successes and lessons learned from the of the previous phase (2012-2018).
Février 11, 2019
Mhogo one of the pilots of 2SCALE that will be developed into a full fledged partnership
An example of one of this successful pilots of 2018 is MHOGO Foods, an SME in Kenya that buys cassava from smallholder farmers through an aggregator, processes it into affordable gluten-free flour and sells it directly to street food vendors who sell by the roadside to low income consumers. Its founder is Elizabeth Gikebe, an enthusiastic and passionate young entrepreneur with the dream to provide nutritious products and seeks to impact small-holder farmers producing this cassava crops.
Cassava flour is a multipurpose flour. It can be used for baking, ugali, pancakes and multiple other gluten free meals. Cassava is a tuberous plant rich in carbohydrates. It is a readily available crop within the country in comparison to other crops as maize and or wheat which are seasonal in Kenya. Many farmers grow cassava, but there is a lack of market for the production of these small-holder farmers from Busia County. Unlike other plants such as wheat, oats and barley, cassava flour is gluten free.
During the partnership, the main objective was to pilot the development of cassava flour through fortification with vitamins and minerals, as well as brand the product, establish marketing and distribution system to the low income consumers in urban areas of Nairobi County targeting women and youth.
During the implementation of the pilot, 2SCALE supported Mhogo to develop a new product that was made to fit low income consumer needs. This was achieved by including consumers such as young mothers in focus group discussions during the consumer research phase to provide feedback on the product, based on appearance, taste and feel.
Before we started our project, we wrote a plan. The plan was to start with understanding what our consumer needs are. The only way to understand our consumer needs was to develop a consumer group of women who have children and families. And this was the best place to start, because women have a big influence on decision making when it comes to the food that is consumed in the house
The end result was a small stock unit of 500 gms of fortified cassava flour with vitamins and minerals that is multipurpose (baking, porridge and ugali), which is accessible and affordable which targeted women and youth.
Also Mhogo established a sustainable marketing and distribution strategy for this new product by including street food vendors, both young (women and men) and senior women to be distributors in the low income areas of Kawangware.
During the market days, we place our tents in a very close place to the market. In this market activation we have samples of mandazis and chapatis.
Most people are impressed because you hardly find a cassava flour in a package. They are also impressed that we provide a multipurpose flour, that you can make so many things a part from ugali and porridge. Now they can make pancakes, chapatis, cakes and many other things
Additionally a Social Media strategy was developed and implemented. Currently the Facebook and Instagram social media channels of Mhogo had a consumer reach of 102,608 people who follow the company initiatives, events and receive recipes from cassava flour and different ways of preparing balanced diet meals.
In summary 2SCALE Program helped Mhogo in product development, testing, buying of premixes for fortification, and provided marketing and sales budget.
Outcomes
Mhogo has been training their sales force (21 brand ambassadors aged 20-26 years) in business, selling and marketing skills. Also on data collection using Open Data Kit (ODK), which is an online application to keep sales records.
Mhogo has also established its micro-franchisee distribution model through the engagement of 32 (20 young male, 12 female) food vendors and 5 (2 young female and 3 Senior female) traders. The food vendors are buying at least 20 bale (240kgs) per day of cassava flour and realizing Ksh.60,000 from sale of chapatis and mandazis. Also the 5 traders are selling 60 to 120 bales per month, are located in different places within Nairobi County.
Growth potential
In the near future Mhogo Foods plans to add more products such as cassava starch which will be used as an industrial raw material and can also be used as a food starch. Additionally we want to add cassava crisps.
2SCALE make my dream come true, because I’ve been procrastinating all these ideas, When 2SCALE came I was able to put in some money for the machines and the raw material. So that helped me to put the product in the market and market the product. And we have seen an increase in sales from around 6 tons per month to 9 tons (Nov 2018)