2SCALE Thematic Papers Gender Mainstreaming in Agribusiness Partnerships | Page 26

“We prefer to hire women, and I’m not saying this because I’m a woman. Over the years we’ve seen the ability of women to work on various tasks under high pressure without complaining. For example, our longest serving employee of 10 years, the operations manager, is a woman. I’ve experienced that women are more committed,” says Kinoti. Sourcing from Female Farmers Shalem Investments mobilizes smallholders into groups of 20-50 members. The groups are formed based on business indicators, such as the type of crop, the size of land, and the farmers’ capacity. The grouping can also be based on social indicators, such as the empowerment of youth and women. There are a total of 534 groups, of which 240 are women only, 270 mixed, and 24 men only, for a total ratio of 75% women and 25% men. The core business of Shalem Investments is being the intermediary between farmers and markets and growing the farmers’ production. Addressing Challenges Faced by Female Suppliers One of the biggest problems is the low literacy rate among farmers, particularly female farmers, as girls from older generations tended to marry at an early age while boys went to school. Some female farmers cannot write their signature when opening bank accounts. It is very difficult for them to understand Shalem Investments’ motivation to help them and provide them with a market. Another issue is the lack of business mentality. When Shalem began, a lot of the farmers did not have a bank account, know how to organize their activities, or approach farming as a business. The lack of financial means to invest has been a significant problem. The main challenge is farmers’ capacity to engage in productive business and Shalem’s difficulty accessing affordable working funds. Partnership With 2SCALE – Changes as a Result of Support Received 2SCALE has transformed the way Shalem Investments does business by helping define its business model and supporting the company with business and financial planning. Prior to 2SCALE, without a sound business model and the ability to forecast, the company was unsure that its activities would lead to results. Now, the future can be defined to a certain extent. For example, in 2013 the company was affected by a government tax imposed on beer containing sorghum. As a result, there was a large decrease in sales and the market for sorghum, a key market for Shalem, nearly collapsed. 2SCALE helped identify and define new uses and markets for sorghum so that the company relies less on the beer industry. Other Challenges and Perspectives “We have a huge challenge when it comes to financing our business. In the past we borrowed money from regular banks, which is expensive. In recent years we received loans from a social lender, but unfortunately their interest rates are quite high as well, almost similar to what the commercial banks charge,” says Kinoti. “At this moment we are not able to secure big loans, because we can’t meet the collateral demands. We hope 2SCALE can connect us with investors.” The company is also interested in international markets and hopes that 2SCALE can help expand its 23 Ruth Kinoti (right) with a sorghum producer – Sorghum Partnership, Kenya horizon on the international markets and open a factory to process food by 2020. Acila – Sorghum Partnership, Uganda Acila is located in the Teso region, eastern Uganda, and was established in 1998. The company trades in agro-inputs, such as seeds and pesticides, and sells cereal grains. Acila is one of the top three suppliers of sorghum to Nile Breweries, Uganda’s largest brewery. 2SCALE’s Support in Diversifying Activity – Acquisition of Processing Plant 2SCALE’s support came at a time when the company was facing many challenges. First, the company needed a machine to process the grains. A locally produced machine was used, but it had a limited capacity of only 15 tons per day, and the quality was too low. Ruth Okiror asked the 2SCALE team to recommend her to WFP to get a loan. To back up the recommendation, 2SCALE trained the farmers on market linkages, value addition, and farming practices, all requirements of WFP. Out of 747 applicants