From producing instant noodles to exporting honey to the United States, these three entrepreneurs are building ventures in Zambia’s agribusiness and food sector.
1. The rise of an instant noodles business
Before starting her own business, Zambia-born Monica Musonda, a lawyer by training, worked in Nigeria for Aliko Dangote, Africa’s richest man. She has described the experience as equivalent to doing an MBA.
Musonda returned to Zambia and, in 2012, founded Java Foods, the company behind the Eezee Noodles brand. Initially, the company imported noodles from China and packaged them locally. Within three years, Eezee Noodles had become Zambia’s leading instant noodle brand.
But growth did not come without early challenges. Musonda admits she assumed most consumers would already be familiar with instant noodles and under-budgeted for marketing. The company had to adapt quickly, attending children’s events to demonstrate how to prepare the product and give consumers a chance to taste it.
The company also had to learn how to build a distribution network, working with wholesalers and navigating informal retail systems. Today, about 70% of Java Foods’ products are sold through informal retail outlets, with the remainder going to modern retailers.
A $5 million capital raise in 2018 allowed Java Foods to build a factory and start producing noodles locally using Zambian-grown wheat. The company now sells more than four million packs of instant noodles each month.
Watch your full interview with Monica Musonda: How this entrepreneur built an instant noodles business
2. Zambian company proves small farms can be big business
Carl Jensen and his co-founders at Good Nature Agro (GNA) have built a multi-million-dollar business around Zambia’s smallholder farmers.
GNA works with tens of thousands of small-scale farmers to grow legume seeds and commodities such as cowpea, soya bean, and groundnuts. It purchases these crops at harvest to sell at a profit.
However, GNA’s integrated business model extends far beyond simple trade. It provides farmers with loans to buy high-quality seeds and other agricultural inputs, offers continuous farming support through private extension agents, and delivers financial and digital literacy training. GNA is also involved in financing assets for farmers, ranging from agricultural equipment to mobile phones.
The smallholders are both the company’s suppliers and customers. “We knew that farmers needed quality inputs [and] they needed financing in order to be able to access those inputs. They needed technical support throughout the year in order to maximise what came out. And then they needed a guaranteed market – they needed sureties, like farmers anywhere in the world. And so we built a business model around fulfilling all of those needs,” explains Jensen.
Read our full interview with Carl Jensen: $10m company proves small farms can be big business
3. Zambian honey producer breaks into the US market
Zambia-based Luano Food Company focuses on value-added food products, with honey at its core. CEO Miit Pandoliker, who previously ran a logistics firm – and still remains involved – launched Luano to tap into the country’s natural resources.
The company does not operate its own farms or beehives. Instead, it sources raw honey from small-scale producers across Zambia and turns it into a growing range of finished products, including infused honeys, honey barbecue sauce, chilli sauce, and chocolate honey spread.
The company’s first major retail partner was Shoprite. It also exports to markets such as the United States, where, according to Pandoliker, honey is more highly valued.
Luano is now expanding into avocado processing. “The potential for avocado growing and processing in Zambia is very high,” says Pandoliker. “There are existing plantations and we plan to support these farmers by becoming their market. It fits well with our agroforestry model, as avocados are an excellent tree crop that is drought-resistant. Our plan is to promote avocado cultivation alongside beehives and intercrop with other crops that support biodiversity, such as shade-grown coffee.”
Source: Access Agric
