Nampya Farmers Market

According to the UN Environment Programme, 500 million small farms provide up to 80% of food consumed in the developing world. However, they receive a very little share of the value generated by their production. Instead, most of it is captured by intermediaries in the supply chain between them and final consumer. With last years seeing an increasing demand from consumers for fresh and ethical products, there’s a huge opportunity for developing transparent and fair distribution models which can put back farmers’ livelihoods at the centre of the equation.  Cutting out intermediaries and enabling a more direct access to market for smallholder farmers can directly increase economic security for rural communities to assure food production for local and global markets. This is exactly what Nampya is doing by connecting smallholder farmers to markets they could never attain on their own. In the process, we encourage sustainable agricultural production and preservation.

Two thirds of Africans are dependent on agriculture for their livelihood, but many farmers live far from markets and they lack the resources or transport to access these markets -- farmers and buyers are disconnected. Middlemen have filled this gap, often creating inefficiencies and barriers for producers and buyers, forcing farmers to take whatever price they are offered given the limited options.

In Uganda specifically, 80% of food produced in rural areas gets consumed in urban areas but the market is extremely disorganized. Brokers are the largest beneficiaries and not the farmers. A key hassle for food retailers is that they get access to poor-quality produce from urban wholesalers at higher prices. Urban dwellers pay high price points (often 200% on average) for semi-fresh food from retailers. 40% of marketable fresh food is lost to waste through wholesale markets due to massive delays and the cost of wasted food is pushed on to end-consumers through inflated food prices. For example, the cost of a banana in Kampala which has come from Rukungiri or Bushenyi (a distance of 300 Km) is the same as the price of a banana in London, which has come from Guatemala.

Nampya Farmers Market digitizes the agri-food market - connecting rural smallholder farmers and the informal retail food vendors in townships and cities to make up an efficient, transparent and formal marketplace.  

Through a USSD and tech platform, Nampya Farmers Market simultaneously onboards smallholder farmers and the food vendors to facilitate agri-food trade.  Through the platform, farmers can send SMS to alert Nampya Farmers Market of their produce while the staff in the field make bookings on the produce when it’s ready. Nampya then uses this data to create a profile about the value of a certain commodity at a certain point in the future, thereby creating an organized farmers market.

The food vendors can order (and pay using mobile money) agricultural supplies using the platform. The company then collects the produce from farmers and delivers it straight to its clients each morning. Taking all the aggregated demand from retailers and making supplies based on their needs, Nampya Farmers Market can successfully replace the informal food markets.  Nampya Farmers’ Market aims to reinvent Africa’s approach to retail, making it less time-consuming and more efficient.

Nampya Farmers Market primarily aims to serve rural smallholder farmers, informal greengrocers, hotels and restaurants.  However, we also serve schools and hospitals.

We provide farmers with a direct link to urban greengrocers, and a digital payment system that enables them[farmers] to build a strong trading record.  Offering open contracts to Ugandan farmers, Nampya offers them 30-40% higher prices as compared to brokers, helping them to generate better Return on Investment (ROI) along with direct linkage to urban markets. This also helps to reduce post-harvest wastage by 50% at the farmers sight. To tackle the problem of constrained cash flow, Nampya Farmers Market partners with financial institutions to provide loans for farmers to purchase certified seeds and fertilizers.

As for retailers, they can save 40% on informal market prices as Nampya offers them the convenience of doorstep delivery of the produce, saving them 3-5 hours of sourcing time and nearly US$ 3-5 on logistics. Besides that, they are assured of high quality farm fresh produce supplies at lower than market rates on a constant basis. 

Nampya Farmers Market has also rolled out a microloan facility for its retail customers to help them expand their businesses and to overcome liquidity challenges

Access to markets is a key concern for smallholder farmers across Africa, many of whom live in remote areas. By pivoting into a tech-platform to collapse the value chain in agriculture,  Nampya Farmers Market changes the food distribution landscape, enabling farmers to market profitably while retailers and consumers access the highest standard of quality produce.The human component of rural smallholders is getting control of defragmented food producing business plans. And getting control of business plans implies a significant improvement in livelihoods (e.g. income) and revalued ecosystems so the resilient soils can sustain ecosystem services and Food security. 

Other players in the field of food distribution include:

• Brokers, but do not supply based on demand and only provide one or few product lines in a market setting with lack of trace-ability. 
• Jumia Food only provides a delivery service, with no functionality of purchasing from farmers.
• Bringo Fresh is a fruits supplier

As a multi-product line supplier, Nampya is:

a. Supply and demand-driven market. We change the game for smallholder farmers in three big ways:

• We offer higher prices to farmers and faster payment times, ensuring profitable sales to local markets
• We make selling to local markets bankable.
• Unlike brokers, we offer advice to farmers

b. A business partner for vendors. We change the game for them in six big ways:

• Prices are lower than the informal wholesale markets.
• Quality is guaranteed.
• We make produce buying as easy as buying airtime.
• We ensure no more 5 AM market trips. We get to their shops.
• We offer business support.
• Goods are safe. Everything can be traced back from where it arrived from.

By providing logistics to link farmers to food vendors, ensuring produce meets buyer specifications and providing the buyers with the ability to trace the source of the crops they are purchasing, Nampya provides a reliable route to market using mobile technology as the vehicle instead of a passing truck. This enables farmers and food vendors to build confidence in the market, gaining the ability to plan ahead and invest in improved production and more robust trades.

At the centre of Nampya Farmers Market is software (web) and mobile technology (USSD and Mobile App). Its a reliable tech-enabled supply chain and logistics solution that is not only able to disrupt the informal food market, but essentially change the way informal markets buy & sell FMCG goods. With it, Nampya is helping to create a more efficient supply chain that connects farmers directly to markets, and this also increases their incomes.Thus,  proving right the thesis that digital solutions in emerging markets can address real time challenges and create more transparency.

To drive produce uptake amongst retailers, Nampya gives products on 48-hour credit lines to major/key clients who are scored using our platform algorithm linked to order volume and weekly turnover.

With over 2000 farmers in our portfolio and engaged with 15 farmer SACCOs (Savings and Credit Co-operatives) producing fruits, veggies and staple food such as potatoes, tomatoes, cabbages and carrots, Nampya Farmers Market translates in a collective purchasing power to farmers across the country, allowing them access to stable markets at better rates while minimizing post-harvest losses through the use of efficient logistics. 

For clients, are 367 in total, comprising informal green grocers (85%), restaurants and hotels (10%) and Schools and hospitals (5%) based out in Kampala-Uganda.

To farmers, Nampya Farmers Market now means that when inputs are compared to gross harvests and net yields, it is easier to determine what ecosystem services have returned to, for example investment in research or extension and support. This has grown momentum of Nampya Farmers Market to generate Public-Private partnerships to take into account the needs and rights of smallholder farmers. This is envisaged to lead to sustainable benefits including enhanced livelihoods, environmental sustainability and profits for all parties involved. Here, Nampya Farmers Market is building the fair and profitable food systems that are needed for everyone’s future.

Nampya's theory of change is Fresh Food Fair Price. Here, farmers should be at the centre of the food equation.

By making the agricultural value chain process easy to navigate and exploit, food distribution should be smarter and more productive (Mobility), farmers should have a secure right to land regardless of ownership. And having a secure right to land significantly influences the level of investments they're will to make including investments that prevent soil degradation, deforestation and creation of climate resilience. Then, the earth’s inhabitants(people) shall be able to live in balance with the planet earth (Sustainability).

Nampya currently works with 2240 farmers in our portfolio and engaged with 15 farmer SACCOs (Savings and Credit Co-operatives) selling produce such as potatoes, tomatoes, cabbages and carrots on one side and 367 customers on the other comprising informal green grocers (85%), restaurants and hotels (10%) and Schools and hospitals (5%) based out in Kampala – Uganda.

Targeting to serve 12,849 farmers and 1000 green grocers by next year 2021, and 41,028 farmers and 7000 green grocers by 2024, We're looking to integrate cold storage and logistics within our value chains to allow flexibility and creation of a more stable demand for the farmers, as we envisage bringing $40 million to the economy through increased farmer incomes.

1. Market Development 

 Nampya looks toward increasing the number of vendors. We are in a race to get to as many vendors as 7000 by 2024 with the full goods basket. We also wish to keep our current vendors happy.

2. Diversification

• Nampya Farmers’ Market is focused on fruits, vegetables and basic food staples. We shall from time to time diversify our product catalog with more product lines like eggs and grains. 
• We also plan on using technology to fine tune traceability throughout the value chain from seeds used to other farm inputs.  We will expand our tech to create a simple solution that farmers and traders have a way to engage and benefit through us.
• Now able to eliminate leakages while optimizing the value chain process owing to Mobile Money. We are also looking to become a full stock Mobile-Commerce platform for small businesses in 2024, serving all business needs from groceries to toilet paper and the like and at the very centre of this will be the deployment of proper solutions. If we solve this problem, then we shall have solved most of the problems associated with agricultural economics.

3. Renting agricultural land to female farmers

4. Continued partnership with financial institutions to provide loans to farmers for purchase of certified seeds and fertilizers

5. Continued support to help retail clients to expand their businesses and to overcome liquidity challenges.

At Nampya Farmers Market is a team that believes that all goods in our markets should be cheaper, easy for vendors to access and with better quality standards. Drawing on our experience in the logistics and supply chain space, we believe Nampya has developed a unique solution to address the inherent inefficiencies in the delivery of fresh produce in East Africa with a significant positive impact for both producers and consumers.  However, the challenges in our way include:

1. Quality deterioration during the long distance transits

2. Long Turn Around Time (TAT) to deliver orders to the clients

All this is due to lack of proper cold storage to help store and transport perishable foods for longer periods of time.

3. Supplies below demand due to weather

4. High costs of capital

To ensure a high delivery acceptance rate and quick response time, Nampya Farmers Market needs to integrate cold storage and logistics within its value chain.

With ambitious growth plans to provide 41,028 farmers with market access for over 20,000 MT of produce worth USD 7 Million a year by 2025, Nampya Farmers Market needs to raise $460,000 to help integrate cold chain technology (warehouse and logistics) within our value chains. If the use of cold storage can be employed to help store and transport perishable goods for longer periods, Nampya Farmers Market shall allow flexibility and create a more stable demand for farmers, expand its product offering, optimize operations and grow its market size.

For supply below demand, we will onboard as many farmers as possible and offer them open contracts. We will also train and invest into farmers with drip irrigation equipment to stabilize procurement.

To mitigate effects of high capital costs, we plan to seek partnerships, equity investments, convertible loans or revenue share investments and or grants instead of bank loans.

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Nampya Farmers Market is currently constituted by 5 full time staff as managers and 32 part time support and operations staff.

All of us are on board with the same mission of providing safe, quality and affordable food to Uganda's urban population and reliable markets to farmers across the country. 

We are passionate about shortening the distribution value chain distance to reduce food costs and building traceability of fresh food sources.

The founder team includes Mark Matovu and Dianah Kaseeta and we're both committed to fighting agrarian distress and food insecurity.

Mark left the family farm ten years ago to pursue a career in business. Over the course of that decade, he launched a successful ICT training start-up. But, as they say, you can take the boy out of the country, but nothing took the country out of Mark. Today, his path in business has led him right back to the farm, but in a different capacity. With expertise in Information systems Analysis, Logistics and supply chain space management, Mark is innovating the local food industry through creating deeper market penetration and distribution channels in the consumer food supply.

Dianah is passionate about shortening the value chain to reduce the food cost and building traceability as a way to play her part in sustainable practices. She says, Nampya Farmers Market is all about quality fresh food grown with good farming practices. 

Drawing on our experience in the logistics and supply chain space, we believe Nampya has developed a unique solution to address the inherent inefficiencies in the delivery of fresh produce in East Africa with a significant positive impact for both producers and consumers. 

At the heart of our vision is the combination of technology and human efforts to comprehensively solve problems facing Sub-Saharan agriculture and smallholder-sourced produce, poor earnings for farmers, lack of steady market, difficulties meeting market driven standards and the inefficient logistics along the agricultural supply chain.

To tackle the problem of constrained cash-flow among smallholder farmers, Nampya partners with financial institutions to provide loans to farmers for purchase of certified seeds and fertilizers.

TechnoServe – the international non-profit organization that promotes business solutions to poverty, is looking to partner with Nampya as its farmer outreach partner.

In Sub-Saharan Africa, the traditions and land ownership do not favor women so most of them are excluded from the value chain. By engaging various stakeholders like the church, Nampya rents arable land to youth female farmers. So far 502 acres are rented to 387 women. These women will also be supported with mechanized tractor services and extensive advisory information on best farming practices such as what type of seed to plant, when to plant, how to plant, etc.

For our customers including the informal green grocers, hotels, restaurants, schools and hospitals acquired via face-to-face outreaches, advertisements, social media engagements, Referral benefits and first-time user discounts, Nampya Farmers Market works with a simple B2B model - earning a commission on the trade volume moved. That is, Nampya sources from rural farmers and delivers to its clients at a markup on every delivery made.

By piloting open contracts with Ugandan farmers, Nampya Farmers Market
offers 30-40% higher prices as compared to brokers, helping generate better ROI along with direct linkage to urban markets. This also helps reduce post-harvest wastage by 50%. 

As for retailers, Nampya Farmers Market offers them the convenience of doorstep delivery of the produce, helping them to save on 3-4 hours of sourcing time and nearly US$ 3-5 on logistics. Besides that, they are assured of supply of high quality farm fresh produce at lower than market rates. 

To drive product uptake,  Nampya gives 48-hour credit lines to major/key retail clients at 3% interest rate. 

For expansion, NAMPYA will still focus on direct distribution leveraging its platform and sales staff using penetration, frequency and weighted sales growth strategies.

Small and growing businesses (SGBs) are global engines of shared prosperity: they drive growth, promote sustainability and support equity around the world. However, unlike many medium-sized companies, SGBs often lack access to financial and knowledge resources required for further growth. So, to Solve, I apply to get access to the funding and knowledge resources from the community of MIT.

To-date, Nampya Farmers Market has evolved organically with founder savings, competition prize and commercial loans, and we expect to break-even by 2022 with a 4% EBITDA margin 

As Nampya's focus remains on quality assurance, timely order fulfilment and market expansion, the prize will be a shot in our arm for us to strengthen our storage infrastructure by setting up cold storage facility and also our delivery logistics so Nampya Farmers Market can allow flexibility and create more demand for smallholder farmers in Uganda and beyond.

I expect visibility so Nampya Farmers Market can leverage the MIT community and platform for partners to help in growth and scaling up. 

With support around the chosen options,  Nampya Farmers Market shall grow more in momentum to generate Public-Private-Producer partnerships to take into account the needs and rights of smallholder farmers. This is envisaged to lead to sustainable benefits including enhanced livelihoods, environmental sustainability and profits for all parties involved. This is to build the fair and profitable food systems that are needed for everyone’s future.

I would be happy to partner with both MIT faculty, USAID, and Mercy Corps, etc. The major support we need currently is fundraising towards strengthening our storage infrastructure and delivery logistics so we can expand our service offering, optimize operations, and grow our market size.

Women constitute 83% of informal green grocers in Uganda in the age of 22 to 39, and 80% of farmers in Uganda of an average age of 60. By delivering more money in their hands, in addition to the convenience of time, the women served by Nampya Farmers Market have an opportunity to create a better livelihood for themselves and their families.

In Sub-Saharan Africa, traditions and land ownerships do not favor women, and so many end up being excluded from the agriculture value chain. By engaging the relevant stakeholders such as the Catholic Church, Nampya Farmers Market rents arable agricultural land to the landless and young female farmers. These women are also supported with mechanized tractor services and extensive advisory information on best farming practices such as what type of seed to plant, when to plant, how to plant, etc.

So the prize will be used to strengthen our storage infrastructure and delivery logistics to allow flexibility and creation of a more stable demand for the women farmers. We will rent more land, expand our product offering. optimize operations and grow our market size to benefit more women.

The emergent agricultural economy in Africa has a potential to contribute to the growth of small holding farmers, and the reduction of unemployment, poverty and inequalities. The potential of the emerging farmers to participate in this sector is untapped. The majority of the produce produced by the farmers is sold to informal markets with a low market value, primarily because the distance output market is an important factor.

Long distances to the market can be discouraging to farmers who want to commercialize. All the remunerative markets are located far away from the localities of the farmers. This implies that farmers have to travel long distances to formal markets on gravel roads with their commodities loaded on poor transportation, poor infrastructure, and a lack of transportation infrastructure affects the quality of produce thus causing the farmers’ produce to be uneconomical or lose quality. Nampya Farmers Market, through the use of technology is changing the food distribution landscape, enabling farmers to market profitably while retailers and consumers access the highest standard of quality produce. 

Nampya Farmers Market then translates in a collective purchasing power to farmers in Uganda, allowing them access to stable markets at better rates while minimizing post-harvest losses through the use of efficient efficient warehousing and logistics. 

Since Since inception, we're well aware of the fact that every progress in Africa starts in rural areas. And only by meeting the needs of rural farmers can rural revitalization be realized. Therefore, the Future Planet Capital prize will energize us to do better and  strengthen our focus on the below 4 key goals for Uganda and Africa:

1. No Poverty: we are definitely improving the financial livelihood of smallholder farmers through fair trade. Many smallholder farmers are paid less than $1 a day and our objective to increase it to $4 a day for 1 million smallholder farmers by 2040.
2. Gender Equality: in Sub-Saharan Africa, traditions and land ownerships do not favor women, so many women end up excluded from the agriculture value chain. By engaging the relevant stakeholders, Nampya Farmers Market rents arable agricultural land to female farmers. The women are also supported with seeds, fertilizers, mechanized tractor services and extensive advisory information on best farming practices such as what type of seed to plant, when to plant, how to plant, etc.
3. Decent Work & Economic Growth: we empower smallholder farmers to see agriculture as more than just a way to survive and position it as a viable industry that can be sustainable for their family.
4. Life on Land: Due to better returns on their hard-agricultural labor, farmers have a secure right to land regardless of ownership. And having a secure right to land significantly influences the level of investments they can make including investments that prevent soil degradation, deforestation and creation of climate resilience.