Kulemela Investments
"Sheena Alexis chose to invest in Kulemela’s loan to a rice aggregator in 2012. Her contract pays 7% interest every August on the $5000 principle she has invested. The recipient, Agnes Yankey, is a rice aggregator - buying rice from small-scale farmers in Ghana, milling it, and sending it to a nationwide distributor. Agnes’ business greatly benefits local rice farmers, who now have a formal and consistent market for their produce. Without Kulemela, Agnes would not receive the capital she needs to grow her business."
Mission
Kulemela Investments is an ethical investment partnership that channels individual Canadian investor dollars into high potential, high impact, and under-financed African agribusinesses.
Why Kulemela Investments?
In Africa , small-scale farmers lack access to markets, and markets, like rice aggregators, lack access to capital. The commercial banking sector is risk-averse to agricultural investment due to market distortion - largely created by the development sector - while many business models are proven, they lack resources to invest in management capacity building or improvements that could catalyze real growth.
In Canada, individual Canadians lack investment options that are both high-yielding and ethical. Kulemela pairs need with opportunity to create mutually beneficial partnerships that accelerate the positive impacts of agribusiness growth.
In Canada, individual Canadians lack investment options that are both high-yielding and ethical. Kulemela pairs need with opportunity to create mutually beneficial partnerships that accelerate the positive impacts of agribusiness growth.
Our Approach
The agriculture sectors in Ghana and sub-Saharan Africa have enormous potential to increase incomes and well-being of the poor, and to be strong contributors to local and global food security. To reach this potential, however, small and medium-sized agribusinesses - producers, aggregators, processors, seed and input suppliers, and service providers - need to be able to develop their businesses.
Kulemela Investments works in the financial services industry in developing economies, providing finance to these agribusinesses. The organization fills the “missing middle” in agribusiness finance, offering loans between $10,000 and $200,000.
This gap exists between microfinance loans (capping off at around $1000) and Social Investment Funds (starting at around $250,000.) Rural banks are trying to provide financial products in the gap; however, like commercial banks, they are risk averse to agricultural investment and are unable to facilitate an efficient and effective due diligence process. [+] See More
Kulemela’s loan agreements are tailored to meet each business’ unique agricultural timeline, with customized interest rates, moratoriums, and repayment schedules. Kulemela’s local staff are capable of conducting the due diligence process, and monitoring loans at a very low cost relative to banks and other funds.
For investors, Kulemela provides returns at 7%, and is the only impact investor that offers Canadians the opportunity to directly invest in African agriculture. However, this investment goes beyond the return. By creating a true partnership between Canadian investors and African entrepreneurs, Kulemela is changing the way that Africa is perceived, showing investors the possibilities of a prosperous agriculture sector in Africa.
Achievements
In its first year alone, Kulemela Investments hired a local Ghanaian General Manager and raised $147,000 from Canadian investors, investing in seven agribusinesses in Ghana across the rice, maize, soya bean, poultry, and vegetable sectors.
