B-Open Nordic in Sweden have signed a Memorandum of Understand (MOU) with Vision 2030 Youth Entrepreneurship Associates (VYEA) in Kenya. Together we want to create a new Agribusiness Development Company focusing on trade with agricultural products from Kenya to Europe, starting with process of cashew nuts. P
art of the business model is also to address the problem of the large market gap between a farmer in Kenya and a large customer in Europe. We will promote organic farming and fair-traded products and services in Kenya but also meet the volume demand of large customers in Europe. Part of the business model is to integrate new young academics with experienced farmers to develop the agricultural sector further but also to avoid dealing with too many middle men in the supply chain.
B-Open Nordic and Vision 2030 Youth Entrepreneurship Associates are now together working with both investors and potential partners to build this new Company and resource in Kenya. We hope to be up and fully operational by the end of 2019 and our 5-year plan is to be able to employ 2.000 people and effect the income of some 30.000 families within 5 years. In total Africa has about 60% of the world’s unused cropland, providing great opportunity to agribusiness and job creation.
Today mining, oil, and natural gas contribute significantly to Africa’s GDP, but these sectors employ less than 1% of the workforce. Many countries, also including Kenya, need to move up the value chain and learn how to develop their natural resources. Their land and people are such natural resources. Today nearly half of all Africans have some secondary or tertiary education and this is only growing and in Kenya this figure is even higher so there is access to skilled workers in Africa and especially in Kenya.
Some of the challenges we see in the market are low tonnage production, poor quality work and systems in place, not so many are or can be Fairtrade certified (too expensive), high export (transport) cost depending if your marketplaces as access to a seaport or not, weak supply chains and too many small Cooperatives, not larger Companies that can handle quality issues and volume demands. Many of these hurdles can be solved by better cooperation and new partnerships in Kenya and elsewhere in East Africa.
B-Open Nordic is a business consulting firm founded in 2004 that focus on management in knowledge driven businesses and international business development. We see many opportunities in East Africa within the agricultural sector as European buyers want quality but also are prepared to pay premium price for quality. Large customers are open to start business with sustainable businesses in Kenya and elsewhere in East Africa. If Farmers Association and Cooperatives can work together they can develop products suitable for European demand and still handle the extra cost for quality work and certifications. We are now working with Vision 2030 Youth Entrepreneurship Associates finding right funding, financing and partnership for more Public and Private Partnership creating a new Agricultural Value Chain Development Company in Kenya.
Interested to know more about this project? Contact us today!