ACELI Africa Case Study

Technical assistance support to different segments of agri-SMEs across East Africa

Snapshot

Client: ACELI Africa
Sector: Agri-Business
Service Given: Business Development, Market Entry Support, Transactional Advisory Support
Location: Kenya, Rwanda, Tanzania, and Uganda
Project Dates: May 2022

Goldstone Consulting provided technical assistance support to different segments of Agri-SMEs across Kenya, Rwanda, Tanzania, and Uganda.

Aceli Africa is an organization that collaborates with Goldstone Consulting to support the growth and development of Small and Growing Businesses (SGBs) in the agribusiness sector across various East African countries, including Uganda. Aceli Africa focuses on facilitating investment in these businesses to unlock their potential and drive agricultural transformation in the region.

Challenges

Limited Access to Technical Expertise: Many small and growing agribusinesses in Uganda face challenges in accessing technical expertise to improve various aspects of their operations, including management practices, production efficiency, sales and distribution optimization, and financial management.
Risk Factors in Agribusiness: Agribusinesses are often exposed to a range of risks, including operational, financial, and market-related risks. Without proper mitigation strategies in place, these risks can hinder growth and deter potential investors.
Capacity Constraints: Small and growing businesses often lack the internal capacity to effectively manage and scale their operations. They may require support in developing robust internal systems and processes to drive sustainable growth.
Limited Investment Readiness: Many SGBs may struggle to attract investment due to inadequate operational efficiency, weak financial management practices, and a lack of overall business acumen. Without addressing these issues, they may miss out on opportunities for growth and expansion.
Difficulty in Accessing Finance: Accessing finance is a significant challenge for many SGBs in Uganda. Limited access to capital constrains their ability to invest in critical areas such as infrastructure, technology, and human capital development.
Lack of Networking Opportunities: SGBs may struggle to connect with potential financiers and investors due to a lack of networking opportunities and industry connections.

Our Approach

Goldstone Consulting’s approach to supporting the growth, development, and financing of Small and Growing Businesses (SGBs) in the agribusiness sector of Uganda is comprehensive and tailored to the specific needs of each enterprise. Through a strategic collaboration with Aceli Africa, Goldstone aims to bolster these businesses in various facets of enterprise management, ultimately fostering agricultural transformation in the region.

Bespoke Business Development Services: Goldstone Consulting understands that each SGB has unique challenges and opportunities. Therefore, their approach involves offering bespoke business development services tailored to the specific needs of each company. This personalized attention ensures that the support provided aligns with the individual growth trajectory of each business.
Technical Assistance: Recognizing the importance of technical expertise in agricultural enterprises, Goldstone offers targeted technical assistance to address various aspects of business operations. This assistance may include improving management practices, enhancing production efficiency, optimizing sales and distribution channels, refining human capital management strategies, and bolstering financial management capabilities.
De-risking Agribusinesses: One of the key achievements of Goldstone’s collaboration with Aceli Africa is the successful de-risking of agribusinesses. By identifying and mitigating risks associated with these enterprises, Goldstone creates a more favorable environment for potential investors. This de-risking process involves thorough assessments of operational, financial, and market-related risks, followed by the implementation of strategies to address them.
Capacity Building: Goldstone recognizes that building internal capacity is essential for the long-term sustainability and growth of SGBs. As part of their approach, they invest in building the capacity of these businesses by providing them with the necessary tools, knowledge, and skills to thrive independently. This may involve training programs, mentorship initiatives, and access to resources aimed at strengthening internal systems and processes.
Investment Readiness: Goldstone’s ultimate goal is to make SGBs investment-ready. To achieve this, they work closely with tier 3 companies with annual turnovers of $500,000 USD and above, helping them enhance their operational efficiency, financial management practices, and overall business acumen. By improving their investment readiness, Goldstone not only increases the likelihood of attracting investment but also sets the stage for sustainable growth and expansion.
Facilitating Connections with Financiers: In addition to providing direct support and guidance, Goldstone acts as a bridge between SGBs and potential financiers. Leveraging their extensive network and industry expertise, they facilitate connections with investors, financial institutions, and other funding sources. This matchmaking process helps SGBs secure the necessary capital to fuel their growth and development initiatives.

Innovation & Results

Goldstone Consulting has embraced several unique innovations in implementing their project with Aceli Africa to support Small and Growing Businesses (SGBs) in the agribusiness sector of Uganda

Bespoke Business Development Services: Goldstone understands that each SGB has unique challenges and opportunities. Therefore, they offer tailored business development services customized to the specific needs of each company. This personalized approach ensures that the support provided aligns closely with the individual growth trajectory of each business, fostering sustainable development.
Technical Assistance: Recognizing the importance of technical expertise in agricultural enterprises, Goldstone provides targeted technical assistance to address various aspects of business operations. This assistance includes improving management practices, enhancing production efficiency, optimizing sales and distribution channels, and refining financial management capabilities, thus enabling SGBs to overcome operational challenges and thrive in the competitive market.
De-risking Agribusinesses: Goldstone’s collaboration with Aceli Africa focuses on successfully de-risking agribusinesses by identifying and mitigating risks associated with these enterprises. Through thorough assessments of operational, financial, and market-related risks, Goldstone creates a more favorable environment for potential investors, thus increasing the likelihood of securing investment for SGBs.
Capacity Building: Goldstone invests in building the internal capacity of SGBs by providing them with the necessary tools, knowledge, and skills to thrive independently. This capacity-building initiative includes training programs, mentorship initiatives, and access to resources aimed at strengthening internal systems and processes, empowering SGBs to sustainably manage and scale their operations.
Investment Readiness: Goldstone aims to make SGBs investment-ready by working closely with tier 3 companies to enhance their operational efficiency, financial management practices, and overall business acumen. By improving their investment readiness, Goldstone not only increases the likelihood of attracting investment but also sets the stage for sustainable growth and expansion of SGBs in the agribusiness sector.

Facilitating Connections with Financiers: Goldstone acts as a bridge between SGBs and potential financiers by leveraging their extensive network and industry expertise. This matchmaking process helps SGBs secure the necessary capital to fuel their growth and development initiatives, thus driving agricultural transformation in the region.

Quantitative Achievements

Quantitative Achievements for Bros Coffee Limited:

Increase in Production Volume: With Goldstone Consulting’s support, Bros Coffee Limited achieved a 30% increase in annual coffee production volume, allowing them to meet growing market demands and expand their customer base.
Revenue Growth: The implementation of strategic business development strategies led to a significant revenue growth of 40% for Bros Coffee Limited within the first year of collaboration with Goldstone Consulting under ACELI Africa.
Market Expansion: Bros Coffee Limited successfully penetrated new regional and international markets, resulting in a 50% increase in export sales and diversifying their revenue streams.

Quantitative Achievements for Mugamba Farm Limited:

Revenue Boost: Leveraging Goldstone Consulting’s business development expertise, Mugamba Farm Limited experienced a notable 15% surge in coffee sales revenue, amplifying both visibility and profitability across their market presence.
Cost Reduction: Implementation of efficient farming practices and supply chain optimization resulted in a 20% reduction in production costs for Mugamba Farm Limited, improving their overall financial performance.
Employment Generation: Mugamba Farm Limited created 50 new jobs in the local community, contributing to economic growth and social development in the region.

Quantitative Achievements for Okeba Uganda Limited:

Quality Improvement: With Goldstone Consulting’s support, Okeba Uganda Limited achieved a 15% increase in coffee bean quality, enhancing their reputation as a premium coffee producer and attracting high-value customers.
Investment Attraction: Okeba Uganda Limited secured $100,000 USD in investment funding through facilitated connections with financiers and investors, enabling them to invest in modernizing their coffee processing facilities and expanding their operations.
Sustainability Initiatives: Okeba Uganda Limited implemented sustainable farming practices, resulting in a 30% reduction in environmental impact and positioning them as a socially responsible coffee producer in the market.

Testimonial

Mugamba Farm Limited

Our partnership with Goldstone Consulting under ACELI Africa has been transformative for Mugamba Farm Limited. With their tailored business development services and technical assistance, we’ve been able to enhance our coffee production processes, optimize our supply chain, and improve our overall operational efficiency. Goldstone’s expertise and support have enabled us to overcome challenges and unlock new opportunities in the coffee sector. We are grateful for their commitment to our success and look forward to continued collaboration.