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How a Rwandan Cooperative Transformed Its Maize Sourcing Strategy and Empowered Women Farmers

7 Aug 2024 • 3 minutes read
by
Diewertje Hendriks
and
Aseema Amol Sulakhe

By Aseema Amol Sulakhe, Diewertje Hendriks

Nested in the hills of Northern Rwanda, the farmer cooperative ‘Icyerekezo 20-31 TABA’, meaning ‘Vision 2031’, stands as a prime example of how tailored support can lead to success in value chain development.

Led by president, Mr. Kanyamuhanda Theogene, the cooperative’s executive committee is composed almost entirely of women. Today, thanks to the quality of our maize we do not have any issues with marketing our produce,” he proudly shares.

Photography contest! (4)
Mr. Kanyamuhanda Thogene (center) with female executive members, IDH team, and the Africa Improved Foods sourcing team

Founded in 2018, Icyerekezo 20-31 TABA’ was established to aggregate and market maize grown by smallholder farmers. Since its inception, it has become a key supplier for Africa Improved Foods (AIF) contributing significantly to the fight against malnutrition in Africa. Between 2021 and 2022, the cooperative’s total income increased sixfold, and its share capital has grown ninefold since its inception.  

AIF, which began its impactful journey as a food manufacturer in 2016, needed 30,000 MT of maize annually to meet its production demands. However, by 2021, only about 50% of this maize was sourced locally from cooperatives, with the rest imported or bought from aggregators due to quality issues with maize sourced from cooperatives not meeting its stringent standards (< 5% aflatoxin), and the risk of side-selling.

Recognising the need for a more sustainable solution, AIF partnered with IDH’s Business Analytics team to identify core challenges and develop pathways to source 100% of its maize from local cooperatives.

Strategic interventions

The inclusive business analysis identified 3 core areas for AIF to look at:  

  1. Sourcing costs: comparing costs per unit from aggregators and cooperatives  
  2. Investment potential: Identifying opportunities for strategic investments in cooperative development
  3. Financial challenges: Addressing the working capital needs of cooperatives and their farmers    

To support this strategy, the ‘Invest in Cooperative Sourcing for Maize in Rwanda’ (ICS) project was launched, aiming to achieve 100% local cooperative sourcing for AIF.

Over three years, 9 agronomy-trained coaches worked with 15 cooperatives, providing training in agronomy, gender, financial management, and governance improving the cooperatives professionalism and productivity.  

Additionally, exchange visits to more established cooperatives have provided valuable learning opportunities.

Today, 44 cooperatives are part of the ICS program, benefiting from advance payments, guaranteed contracts with AIF, and improved communication and synergy across the cooperatives due to the cooperative coaches.

AIF now proudly sources 100% of its maize from local Rwandan cooperatives.   

Photography contest! (5)
Farmers from Icyerekezo 20-31 TABA hanging the maize cobs in the drying sheds before selling to AIF

Icyerekezo 20-31 TABA has evolved from a member-oriented cooperative into a mature organisation with audited financials, digitised member data.

With 549 members—245 women and 304 men—the cooperative now distributes dividends to its farmer members and supports a special women's committee focused on social and financial development.

Women in the cooperative have found their voice and collectively have saved nearly 2 million Rwf, almost doubling their initial capital. These funds provide loans for other income-generating activities, such as poultry farming.

According to Olive Mukahirwa, the cooperative's accountant, "the engagement has awakened their minds."

Looking to the future

With support from the ICS project, the graduation criteria and the cooperative coaches, the cooperative created a 5-year strategic plan to outline their goals and future opportunities.

They plan to reduce farm-gate rejection rate below 3% and pay farmers promptly within 7-10 days of procurement.

Additionally, the cooperative now operates an agri-input shop, offering credit and loans for members' financial needs. These efforts have fostered a 100% member loyalty in selling their maize produce to the cooperative.

Looking ahead, the cooperative aims to buy maize from nearby farmers and smaller cooperatives, to add value before selling it to AIF.

Despite facing challenges such as a shortage of post-harvest infrastructure and the need for mechanised equipment, Mr. Theogene remains optimistic. "We are looking for partners to sponsor this," he says, hopeful for the future and committed to achieving ‘Vision 2031’ for Icyerekezo 20-31 TABA.

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