Sector: Cocoa, Agricultural Inputs (fertilisers, pesticides)
Investment: Trucks, warehouse, spraying machines
- Total estimated capital expenditure: USD 575k
- Investment type: Subordinated loan
- Investment by Kampani: USD 500k (for 7 years)
- Disbursement: November 2022
The first contact with Greenfield was established through our partner Rikolto during Kampani’s field trip to Ghana in April 2022.
Greenfield Agricultural Services was founded in 2014 with the aim to increase the yield of cocoa farmers by making available high quality agro-inputs, providing obligatory training on how to apply them and by facilitating access to prefinancing to acquire the product. Greenfield currently works with 693 farmers in this way. It has registered another 5.000 farmers which it will be able to start serving thanks to Kampani’s investment.
With Kampani’s investment, Greenfield wants to expand its operations and expects that the investment will help to reach out to over 25,000 smallholder farmers within the next 5 years.
The purchase of new pickups will increase the transport and distribution capacity and reach out to more smallholders in the villages and increase Greenfield’s client base. The construction of a warehouse will help to better manage stock inputs affected by price fluctuations.
The purchase of the spraying machines will provide a new service and additional income to Greenfield by renting the machines to the farmers who cannot afford to buy them.
THE SOCIAL IMPACT
Greenfield’s mission is to increase crop yield, increase smallholder farmers’ income and improve their livelihood to help alleviate poverty. Kampani’ shareholder and Belgian NGO Rikolto believes the work of Greenfield to be highly impactful and scalable.
In addition to allowing smallholder farmers to access high quality agro-inputs, Greenfield provides training on how to best use these products: Greenfield field agents provide the training, ensure best practices and act as a bridge between farmers and micro Finance Institutions (MFIs). Together with MFIs, they have implemented a Cocoa Input Credit Scheme using a group lending methodology (10 to 30 farmers) allowing farmers to pay back the inputs bought at advantageous conditions.
Importantly, Greenfield carefully selects the farmers it works with and avoids areas where illegal mining takes place. Illegal mining in Ghana is widespread: the country is Africa’s leading producer of gold of which 35% is extracted by small-scale miners, among which 60% of them are illegal or unregistered. Illegal mining operations have a disastrous effect on the country’s resources, destroying its farmlands, forests and surface water bodies.
Greenfield carries out different scouting missions and privileges remote areas to sell their products, areas not reached by NGOs.