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Kenya: Twiga Foods launched a new commercial and contemporary farming business

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Twiga Foods, a Kenyan B2B E-Commerce firm, has formed a new subsidiary focusing on modern and commercial farming. Twiga Fresh will scale up the efficient production of local horticultural staples such as onions, tomatoes, and watermelons, making it one of Africa’s largest single horticulture farms focused solely on the home market.

Twiga is investing $10 million in Twiga Fresh, which will be funded in the long run through debt in collaboration with Development Financial Institutions and will focus on primary agriculture and food security.

Twiga Foods said it would continue to engage with smallholder farmers to address the challenge of food security in specific value chains that are well established and efficient locally, such as bananas.

“Under Twiga, we will continue to manage the B2B e-commerce business, to create a one-stop supply-chain solution for informal retailers, providing both Twiga and non-Twiga owned products,” says the company. Twiga Fresh will ensure that we drive growth in client numbers and extend basket size by selling excellent products at a discount versus prevailing market rates, in addition to our growing variety of private label products,” stated Peter Njonjo, CEO and Co-Founder of Twiga.

“Today’s world is experiencing unprecedented levels of food inflation due to commodity-driven instability. We can least afford this disruption in Africa, which is why we are thrilled about the impending impact our technology-enabled supply chain will have on food costs,” he added.

To promote the Twiga Fresh range of products, the firm will give away one million kg of fresh food to clients as part of a 21-day promotion called “Bidhaa Fresh na Safi,” which will begin on May 23, 2022. We will distribute the produce at no cost to every store that participates in the program in Kenya’s sixteen cities and towns. This will also help to increase working capital in the company.

Twiga has been striving to alleviate the problem of growing food costs in metropolitan areas for some years. In Africa’s main cities, food accounts for about 60% of household expenditure. The retail industry and consumers have had a particularly difficult few months, as disposable income has been slashed by both the COVID pandemic and rising commodities inflation induced by the Ukraine crisis. Furthermore, there has been little investment in improving the productivity and modernization of food production in Africa, resulting in a huge increase in basic food imports, making food security an increasingly unattainable aim.

Twiga Foods said in March that it is planning a pan-African expansion, including Uganda and Tanzania. The corporation also stated that it is investing in the development of a new method of manufacturing food on the continent that addresses both traceability and mass production. According to the program, prices for popular fresh food goods will be reduced by more than 30% for consumers.

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