Asaaseaba

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Asaaseaba: Farmshare; Financial Inclusion, Supply Chain Input Asset financing

Accra, GhanaAmantin, Ghana
Year Founded:
2013
Organization type: 
for profit
Project Stage:
Growth
Budget: 
$1,000 - $10,000
Project Summary
Elevator Pitch

Concise Summary: Help us pitch this solution! Provide an explanation within 3-4 short sentences.

Farmshare, is a service which allows us, to support smallholder farmers, share production costs involved in crop production by providing;
Input asset finance like seeds, tractor services etc. to improve food security and hunger.

WHAT IF - Inspiration: Write one sentence that describes a way that your project dares to ask, "WHAT IF?"

What if poverty and hunger was non-existent because smallholder farmers produced more than enough to feed the world?
About Project

Problem: What problem is this project trying to address?

The new global challenge is to feed a population of 9 billion people by 2050. 80% of the farmland in sub-Saharan Africa and Asia is managed by smallholders (working on up to 10 ha). Out of the 2.5bn people in poor countries living directly from the food and agriculture sector, 1.5 billion people live in smallholder households. Many of those households are extremely poor: overall, the highest incidence of workers living under the poverty line.

Solution: What is the proposed solution? Please be specific!

Our innovative model allows us to provide flexible credit in the form of input supply eg. Seeds and fertilizer, tractor ploughing and other ancillary services to smallholder farmers. The credit facilities are paid back with crop harvests sold at fair market value. The profits from the sale, are shared with our social impact investors based on pre-negotiated arrangements. In this way, we are re-imagining how credit is accessed by the rural poor and expanding financial inclusion, as a vehicle, for improving food security and eliminating poverty.
Impact: How does it Work

Example: Walk us through a specific example(s) of how this solution makes a difference; include its primary activities.

Esamba’s a smallholder farmer in Borae, a village in the South Eastern part of Ghana. He grows 2 acres of maize and 2 acres of beans. Esamba had a problem, he needed to fertilize his farm. If he did, he will get 15 bags per acre, If he didn't, he will get only 5 bags per acre. The fertilizer cost was Ghc300 or about $75 and he did not have enough resources to cover that. We heard about his plight and stepped in. We provided the fertilizer he needed. He was excited, sure enough, at the end of the season, he harvested 15 bags per acre. Esamba's challenge reflects a common theme among poor rural smallholder farmers. Input supply support provided at the right time, reduces poverty, eliminates hunger and increases food security for all.

Impact: What is the impact of the work to date? Also describe the projected future impact for the coming years.

-Size of acreage developed 5 acres watermelon 20 acres beans 3 acres maize 54 acres soyabean 300 acres cassava Number of farmers adopted 54 soya farmers 1 watermelon farmer 2 maize farmers (test farm) 65 cassava farmers We have successfully piloted in 3 farming communities in Ghana. We are on track, to increase our land acreage from 1,127 to 2,000 by the middle of 2016. Additionally, we plan to build warehouses and construct boreholes and drying equipment in all 3 communities after the first season. Directly impacting the lives of over a 600 smallholder farmers and indirectly supporting another 9,000 people who depend on these farmers for their livelihoods.

Spread Strategies: Moving forward, what are the main strategies for scaling impact?

In the next 10 years, by our current trajectory, we would have directly helped 400,000 smallholder farmers along different value chains and product in about 10 countries across Sub-saharan Africa . Another, one million smallholders with infrastructure and equipment support. In 5 years, we will have fully implemented micro crop-insurance policies for smallholders. Insuring against, pest, diseases, low crop yields and drought. All these activities, backed by a credible crowdfunding platform we call Farmshare, to secure capital to fund our initiatives.
Sustainability

Financial Sustainability Plan: What is this solution’s plan to ensure financial sustainability?

We will grow organically, through capital generated from the profit sharing structure of harvests between farmers, investors and Asaaseaba, Additionally, we will generate funds from capital management fees of investor funds and input sales to farmers.

Marketplace: Who else is addressing the problem outlined here? How does the proposed project differ from these approaches?

There are other players like One Acre Fund, Yara, and other small aggregators who perform some of our core functions like training and input supply provision. We are different because of the holistic view we take of the entire value chain, where we provide mechanization services,warehousing, drying implements, logistic transportation and distribution, as well as financial inclusion products which we provide as one seamless service to our customers,"The smallholder farmer". We care about their business and we inherently understand that when they succeed, we succeed.
Team

Founding Story

Assaseaba started with our passion to leverage on our home country's [Ghana] arable land as a springboard for economic development. We entered agriculture with some very spectacular failures. Over the years, we learnt from our past mistakes and gained some experience in the other value chains we succeeded in. Our 'Aha" moment came, when we re-introduced soya beans in a smallholder community we began operating in. We piqued the interests of the smallholder farmers who didn't have the seeds or the financial muscle to grow the plant. it was then, we realized that our success, would be tied to serving these smallholder communities to grow more to feed themselves and sell more to escape poverty.

Team

The team is made up of Peter Oppong-Bio [Full time] - Founder, a Ghanaian who lives and works in Ghana. He started out in Insurance and is currently managing several agribusiness projects, spanning processing, exports and input supplies. He has been in the agribusiness industry for over 8 years. Peter has a dual degree in International Business and Legal Studies & Insurance and Risk Management from Temple University, USA Nana Kojo Bartels-Kodwo [Full Time]- Business development, is a relationship management and small enterprise business development professional. He has worked in various relationship management roles in various financial institutions over the past two years, consults for start-up agri-businesses across the entire value chain in Ghana. He holds a combined major, BA degree in Geography & Resource Development and Sociology from the University of Ghana. Ernest Asare [Full Time] - Strategic Partnerships & Risk Management . Ernest has a BA from Arcadia University and a BS Civil Engineering from Columbia University. He is extremely passionate about start ups and has worked on multiple startup companies in Ghana. He is also the co-founder for Diginera, an IT services company. Additionally, we have three other farm managers [full time] who visit the different smallholder communities where we provide services. They troubleshoot, advise, train and monitor our investments in those areas. They our ably assisted by 7 extension officers who support them. As we seek to diversify into other crop value chains, we will augment our team with risk management and agribusiness crop management experts.