Expansion of rice farm

Summary

Production of rice in Sierra Leone.

Lack of access to finance makes it very difficult for Small and Medium Enterprises in Sierra Leone to grow its businesses. West AFrican Rice Company is one of them. With the loan of Cordaid the enterprise will be able to expand its rice farm with a few hundred hectares. Additional farm equipment will be bought to increase productivity. It is expected that 51 jobs will be created.

Goals

  • XS Agri Small & Medium Enterprises provided with loan

Background

One of the major issues for entrepreneurs in post-conflict and post-Ebola Sierra Leone is access to finance and lack of capacity. The company West African Rice Company (WARC) is one of these SMEs. The company was established in 2011 with a mission to bring back rice production to Sierra Leone. Before the civil war Sierra Leone was a major world producer of rice. Now it has become an importer of rice. WARCs first yield was harvested, milled and distributed acros the country in December 2012. In 2013 one of its clients became the World Food Program (WFP). WARC had to suspend its operations in 2014 because of the Ebola crisis, but it resumed operations and rice production in early 2015.

Initial situation

This is the first time that Cordaid cooperates with this company.

Goals

We aim to create jobs in fragile communities and improve access to finance to SMEs in these communities. This project ensures that one SME is able to get a loan. This loan and the additional permanent coaching of the enterprise ensures that the rice production of the farm will more than double. The enterprise will need to hire 51 additional people to be able to reacht this growth. Since rice is a main source of food in Sierra Leone and there is a lack of domestic produced rice, Sierra Leone needs to import rice. This project will have a positive impact on the food security in Sierra Leone.

Goals

  • XS Agri Small & Medium Enterprises provided with loan

Target group

The direct target group is the SME that was not able to get a loan before from banks in Sierra Leone. The beneficiaries of this project are the 51 new employees that will be hired.

Project plan

In order to grow its rice production, WARC will expand its farm size in the Bonthe District in Sierra Leone with a few hundred hectares and will various farm equipment to increase production and productivity. WARC will produce two rice varieties. WARC is planning to sell its rice at local markets, supermarkets and organizations like the World Food Program.

Sustainability

The company exists since 2011. With this investment the company is able to grow and can become more efficient. This loan will make the company more sustainable.

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