Over 50,000 Rice and Maize Farmers to Benefit from Thrive Agric’s Enhanced Access to Finance

Sustainable growth of the agriculture sector in Nigeria has been identified as a key element of the Government of Nigeria’s plans for eradicating poverty and hunger, while developing a more diverse economy. To achieve this, smallholder farmers in the country require steady and reliable access to affordable finance, among other things, so that they can expand their operations and produce food for communities at home and abroad.

Anchor companies such as Thrive Agric, a youth-led agricultural technology startup, are working to bridge this financing gap by providing farmers with data-driven advice and access to finance and premium markets. However, Thrive Agric themselves face challenges accessing the funding they need to grow, such as struggling to meet restrictive bank requirements.

To help Thrive Agric achieve their financing goals, the USAID Feed the Future Nigeria Agribusiness Investment Activity, implemented by Cultivating New Frontiers in Agriculture (CNFA), assisted the company to upgrade their digital agricultural operating system software. The upgraded platform allowed them to integrate with banks, seamlessly disburse cash and inputs, and monitor investments and farm activities through to loan repayment. It also allowed Thrive Agric’s over 2,000 field agents to capture critical farm data and provide farmers with technology-enabled extension and advisory services.

This software opened access to their financiers, strengthening their loan monitoring capability, and helped meet a critical requirement for Thrive Agric to apply for and receive funds from different financiers and secure multiple partnerships with bodies and organizations with aligned goals of supporting farmers and boosting food production in Nigeria and across Africa.

Following this successful collaboration, in March 2021, the Activity’s support enabled Thrive Agric to unlock additional loan financing from its bank partners from the Central Bank of Nigeria Anchor Borrowers’ Program Prime Intervention Fund. The Anchor Borrower Fund supports anchor companies linking with smallholder farmers in key value chains, such as rice or maize, by providing funds that can be distributed as in-kind or in-cash loans to smallholders to boost production and stabilize their supply of inputs. Securing this loan enabled Thrive Agric to fund inputs to over 50,000 registered maize and rice farmers across Kaduna, Kebbi and Niger states.

Moving forward, the Activity will continue its efforts to support Thrive Agric as a prime anchor company to meet lender criteria by strengthening their ability to access funding, improving their creditworthiness and financial reporting, and support farmers working to improve maize and rice production across the country. With increased access to finance, anchor companies like Thrive Agric will strengthen and grow their business, improving and expanding smallholder farmers’ access to credit, inputs, expertise, and markets for increased food security, employment, and income generation.

Rice is an important regional and global food staple, eaten regularly by millions in Nigeria and around the world due to its affordability and availability. As national demand for rice rises, the Government of Nigeria is keen to increase local rice production, and reduce reliance on imports, by helping farmers access credit on appropriate terms to increase their scale of production and profitability.

AMMI Integrated Mill was established in 2018 in Argungu, Kebbi State, and has partnered with the USAID-funded Feed the Future Nigeria Agribusiness Investment Activity, implemented by Cultivating New Frontiers in Agriculture (CNFA), over the past year to conduct an Organizational Performance Improvement Needs Assessment of their business and identify and remedy gaps hindering their production.

The assessment highlighted inefficiencies in the mill’s output, which was operating at 60% of its full capacity, mainly due to ill-defined staff roles on AMMI’s rice processing and packaging line. Armed with this knowledge, the Activity supported AMMI to clarify job roles, move excess staff to the drying line, and install a performance system to reward workers for the number of rice bags produced. These adaptations improved output efficiency to 90% and overall worker satisfaction by supporting workers to carry out their duties with efficiency, clarity, and confidence.

“I have running costs under control and a clear understanding of the best business process for us. I am excited about the future.” said Rahmatu Gulma, CEO of AMMI Integrated Mill.

The streamlined system also enabled the mill to sustainably expand its commercial operations as it further diversified into producing parboiled white rice and other products.

“I have leveraged the savings made from the Activity’s cost cutting measures to expand on other business areas. Besides now producing parboiled rice, I also recently started a greenhouse and poultry rearing operation. These new ventures are flourishing thanks to the lessons learned from the interventions done at the Mill.” Gulma concluded.

Rahmatu Gulma, CEO of AMMI Integrated Mill, in her greenhouse.

The Feed the Future Nigeria Agribusiness Investment Activity aims to strengthen the enabling environment for agribusiness finance and investment in Nigeria, with a focus on four interrelated components: improving the enabling environment for agricultural sector growth; broadening access to finance by mitigating the credit risks of agribusinesses; promoting and facilitating investment opportunities for agribusinesses to expand and scale up operations; and sustainably enhancing the performance of agricultural micro, small and medium size enterprises (MSMEs). By 2023, the Activity aims to viably and sustainably link thousands of MSMEs and producer organizations like AMMI Integrated Mill with high-performing commercial actors in the rice, maize, soybean, aquaculture, and cowpea value chains.

In the Oshimili South Local Government Area of Delta State, an association of fish farmers called Camp 74 is renowned as a major hub for catfish production in Nigeria. Agricultural associations like Camp 74 play an important economic and social role in rural communities. Camp 74 provides farmers with peer-to-peer learning, access to affordable inputs, and a platform to promote their interests and market their products.

To strengthen the association’s management, fundraising potential, and quality of offerings to farmers, Camp 74 partnered with the USAID Feed the Future Nigeria Agribusiness Investment Activity, implemented by Cultivating New Frontiers in Agriculture (CNFA), to assess its areas for improvement through an Organizational Performance Improvement Needs Assessment. The Activity also provided expertise on management and leadership through its Micro Enterprise Fundamentals (MEF) and Group Dynamics and Leadership Skills (GDLS) trainings, which taught the group how to use their strong membership to raise funds internally, meeting their needs without resorting to loans and making them more attractive to outside investment and support.

After a thorough review of their needs and their new management skills, the association’s executive council organized an emergency membership meeting, conducted an audit of their accounts, and scheduled an Annual General Meeting (AGM) to help the group become more democratic and transparent to its members and more attractive to outside investment.

Building’s roof replaced, Kiln repaired and concessioner putting it to use.

The Activity also worked with Camp 74 to develop a revenue generation action plan that optimized the association’s existing resources. With the contributions mobilized from its members, Camp 74 rehabilitated its fish processing building and kiln and leased them out to a local private enterprise, further raising funds to improve the association’s management.

Through improved transparency, democratic management, and fundraising, Camp 74 now offers enhanced services and engagement to its member farmers, helping them to improve operations and productivity, strengthen the association, and ensure long-term sustainability. Camp 74 fish farmers are also optimistic that the momentum generated after the Activity’s intervention will be sustained as the association draws strength from its membership to grow and accomplish its goals of improving the inputs, incomes, productivity, and livelihoods of nearby smallholder fish farmers.

The USAID Agriculture Program in Georgia demonstrates best practices for handing rootstocks and grafting with mother plants.

The USAID Agriculture Program in Georgia demonstrates best practices for grafting plants to enhance budding and horticulture production.

The USAID Agriculture Program in Georgia demonstrates best practices for extracting and preparing plant seedlings for sale.

USAID Feed the Future Hinga Weze grant provides post-harvest equipment to persons with disabilities.

Founded in 2007, Twisungane Mageragere, a 140-member cooperative based in Rutsiro district, strives to ensure their members with disabilities meaningfully and consistently gain from income-generating activities through cultivating reliable markets for their produce.

To strengthen their efforts and capacity to support their members with disabilities, the cooperative applied for and received a grant worth $8,600 through the USAID Feed the Future Hinga Weze Activity, implemented by CNFA.

Hinga Weze and the cooperative worked together to promote independence in adults with disabilities and establish a gender support network in the community through Hinga Weze’s gender and social inclusion program.

With the grant, the cooperative purchased post-harvest equipment appropriate for some of its members with disabilities including electronic maize shelling machines, hand shellers, and tricycles to transport produce from the gardens and to the market. With this equipment, the cooperative was able to harvest and process 1.5 metric tons (MT) of maize earning about. USD $350 (350,000 RWF), up from 200 kg harvested the previous season.

“Our members are excited and now feel they can compete favorably against other farmers,” observed Protais Ukizuru, the President of Twisungane Mageragere.

The grant has also enabled female cooperative members to process and transport their produce with ease and have enough time to attend to domestic chores.

Among the 2,111 PWDs supported by Hinga Weze in ten districts across Rwanda, these cooperative members are already considering expanding their farming and maize processing from neighboring farmers to increase their incomes.

Farmers get better yields from improved access to irrigation.

In Kayonza district, part of Rwanda’s drier Eastern province, smallholder farmers like Beata Mukanyirigira depend on reliable access to water and irrigation to improve their livelihoods and increase their yields and productivity.

To confront this challenge, farmers in four districts, Bugesera, Ngoma, Kayonza, and Gatsibo, partnered with the Rwanda Agricultural Board (RAB), local authorities and the Feed the Future Rwanda Hinga Weze activity, a five-year U.S. Agency for International Development activity implemented by Cultivating New Frontiers in Agriculture (CNFA), to introduce small-scale irrigation technologies (SSIT) in their communities.

These technologies are affordable, appropriate and adaptable to the irrigation needs of smallholder farmers. The system is also powered by solar energy, allowing farmers to eliminate their reliance on diesel and reduce their environmental footprint. So far, nine sites have been completed, covering 100 ha, while two sites covering an addition 100 ha are under development. In total, 300 ha are targeted to be covered through the life of the project, benefitting thousands of farmers by significantly increasing productivity, improving incomes and livelihoods and ensuring food security and nutrition.

Once Hinga Weze and local authorities identify the irrigation sites, farmers are mobilized to consolidate land and form groups and cooperatives. To date, over 10 cooperatives and savings groups have been formed, enabling private sector partnerships from lending institutions, buyers, traders and agrodealers. These partners continue to supply agricultural inputs, to access agricultural inputs and markets. They also reinforce existing community-cohesion and offer employment opportunities and enhanced capacity strengthening interventions for farmers who work on consolidated farms.

Through the SSIT intervention, farmers have gained the knowledge and capacity to manage irrigation infrastructure and ensure the sustainability of their farms and livelihoods. All interventions are farmer-led and have resulted in the additional rollout of good agriculture practices (GAPs), which have greatly improved crop productivity and incomes.

So far, over 1,200 households benefitted from access to the small-scale irrigation infrastructure and this number is expected to increase to include thousands of farmers as the infrastructure will eventually cover 300 total hectares throughout the life of the activity. This undertaking will significantly increase productivity, improve incomes and nutrition, ensure food security and improve the quality of livelihoods for farmers.

Beekeeper Jean Tsitambainarivo lives with his family in Madagascar’s Vatovavy Fitovinany region, where he is well respected and is president of the AINA Beekeeper Cooperative in the community of Antsenavolo. AINA, with its 19 members, produces honey from numerous plants, including lychees, bonara (Albizia lebbeck L.), grevillea, eucalyptus and niaouli.

In the Vatovavy Fitovinany region, the combination of warm temperatures, high rainfall and increased biodiversity leads to conditions where honey can be harvested up to four times per year. In 2010 when Tsitambainarivo began beekeeping, he successfully started his first harvest with 60 hives at his disposal which produced 1,400 liters of honey. However, 2010 was also the year that the varroa mite took hold in Madagascar, infecting the endemic honeybee, Apis mellifera unicolor.

Tsitambainarivo harvesting honey.
Photo credit: Raharinirina Monique

Over the next few years, this pest caused the destruction of approximately 60% of the country’s bee colonies, and up to 90% in some areas. The devastation caused by the mite led the Government of Madagascar to declare it a national disaster, mandating that all infected and adjacent hives be destroyed. By 2017, Tsitambainarivo’s production decreased by 60% and he had only 20 low-producing hives left. Locally no obvious treatment was known at the beginning of the infestation and imported products were expensive. Many beekeepers struggled to continue producing honey.

In Madagascar, beekeeping is not just important for the sale of honey and wax, but also for pollination. The endemic bee pollinates 80% of all plants and, culturally, honey is highly regarded as a symbol of success and happiness. While expensive, most Malagasy families make a point to have honey available for use in important events and ceremonies as well. Due to the impact of the varroa mite, many beekeepers made the decision to pursue other economic activities, but Tsitambainarivo persevered and led the AINA Cooperative to find a solution. Using a pesticide that controls varroa mites, Tsitambainarivo was able to reduce the infestation and serve as an example to other beekeepers. He built back more hives, but because the varroa mites were not completely exterminated, he still struggled with low production and weak colonies.

Youssef demonstrating oxalic acid technique. Photo credit: Raharinirina Monique

In early 2020, Tsitambainarivo and the AINA Cooperative partnered with the Farmer-to-Farmer (F2F) Program implemented in Southern Africa and Moldova by Cultivating New Frontiers in Agriculture (CNFA) to improve control of the varroa mite. AINA, meaning “life” in Malagasy, is a beekeeper cooperative based in the rural commune of Antsenavolo of the Mananjary district, in Southeast Madagascar. Tsitambainarivo and 18 other AINA Cooperative members were visited by U.S.-based volunteer Steven Youssef, a business development professional, beekeeper and owner of a beekeeping business in Vienna, Virginia. During his trainings, Youssef demonstrated a technique to control varroa mite that had not been tried by the cooperative. Using a battery-powered vaporizer, he demonstrated how to fumigate hives with oxalic acid, a naturally occurring acid found in plants that can successfully exterminate mites. The training covered topics like choosing the right time for fumigation, selecting directions for spraying based on air flow and, importantly, using protective face masks. Youssef also trained cooperative members on how to follow-up on the colonies and hives, support the development of a strong bee colony and increase production of quality honey. As a complement to the trainings, CNFA’s partner, Catholic Relief Services (CRS), covered the cost of the vaporizers, which still remain with the cooperatives today.

The AINA Cooperative was impressed at the speed and ease of the oxalic acid technique. As president, Tsitambainarivo oversaw the treatment of many hives and, nowadays, is back to producing substantial amounts of honey through his 70 hives . By September 2020, he had collected 840 liters of honey, considerably more than the 150 liters his bees produced in 2019. With his larger and improved quality harvests, Tsitambainarivo can take advantage of the increased domestic demand for honey and improve his income. His sales in 2020 totaled $3,230 and are still growing, whereas sales the previous year totaled only $460. With this extra income, Tsitambainarivo supported his wife to expand her shop and has made plans to further expand his own business.