Inclusive Business Model Review: Endline Report for Raphael Group Limited and the USHIRIBE Consortium, Tanzania

Raphael Group Limited has spearheaded a transformative project in Tanzania's rice and beans value chains, boosting farmer incomes and agricultural productivity through the USHIRIBE Consortium. Supported by IDH, this initiative highlights the impact of collaboration and resource mobilisation in enhancing both farm and company performance. 

Raphael Group Limited (RGL) is a food grains aggregator, processor and distributor located in Tanzania whose core business activity sourcing, processing and distributing of rice and beans. RGL is also active in the groundnuts and sunflower value chains.

The project

RGL was a lead partner in creating the Upper Southern Highlands Rice and Beans (USHIRIBE) Consortium, a service coalition which was formed to increase the number of farmers engaged farmers in the rice and beans value chains. To achieve this objective the service coalition aimed at providing training, financing, inputs and market access. As the lead partner, RGL mobilised the biggest portion of the financial and human resources to sustain the coalition's activities over the period of the project

IDH partnered with Raphael Group in 2019 to fund the project over a three-year period. At the start of the project, a baseline inclusive business model (formerly service delivery model) analysis was conducted.

At the close of the project, this business model review (endline analysis) was conducted to reflect on contextual and design drivers that influenced RGL’s performance over the project period as well as to provide recommendations on emerging opportunities to enhance business performance in the future.

Summary of the outcomes

• Farmer net income grew compared to the baseline over the project implementation period as a result of the support provided through the project. 3 of 4 farmer segments surpassed their projected average income targets owing to a combination of factors that include expanded land size, low production costs and higher realized prices

• Farmers were able to retain their land sizes and, in some cases, even increase the land under production despite rising production costs, primarily due to escalating fertilizer prices. Government subsidies have effectively mitigated the financial impact on farmers, ensuring that they can maintain and expand their agricultural activities without bearing the full brunt of increased expenses.

• The service coalition was a crucial factor in the positive performance observed at both the farm and company levels. All coalition partners provided complementary services, which, when combined, created synergistic effects that compounded, leading to enhanced performance across both the farm and the company.