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Problem: Most of the poor are subsistence farmers: in East Africa is 60-90% of the people. Cheetah’s approach: (Certified) agricultural investor serving small holder farmers. Solve underlying problems to unleash local resources. “If it pays it stays.”.
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Problem: Most of the poor are subsistence farmers:in East Africa is 60-90% of the people. Cheetah’s approach: (Certified) agricultural investor serving small holder farmers. Solve underlying problems to unleashlocal resources. “If it pays it stays.” Introduction: A business approach to change It’s not giving gifts, it’s growing gifts
The story of subsistence farming 4 Halves of Have-Nots AGRICULTURE/FOOD CROP FOCUS NEEDED
Dysfunction in the Food Supply 1. 2. Cheetah divides its effort, addressing both sides because the problems are linked.
Greasing the Wheels Cheetah focuses on markets and finance because most lacking in traditional development approaches.
Strategy 1: Commercialize Farmers Beyond subsistence: Maize fields planted on the same day. (Cheetah supported farmer on left.) It’s not giving gifts, it’s growing gifts
Farmers Lack Access to Crop Input Finance With careful manual application, it costs $200-$1000 per acre for seeds, fertilizer and treatments There is not enough money in aid to lift farmers out of poverty. BIG LOANS are needed; more than microfinance offers farmers.
What is a market? -List of buyers to negotiate terms (a business function) Distribution systems lacking so need market building (rather than ‘market linkages’) Access paradox: market is BIG but farmer is SMALL (too small to connect) Farmers Lack Access to Markets
4 Steps to Leave Subsistence Poverty Farmer Commercialization Cheetah prefers to partner Cheetah’s focus
Strategy 2: Invest in Value Chain Businesses Solve value chain problems holding farmers back: Example: Solar food dryer preserves food and is affordable to farmers, opening new markets and recovering harvest losses. It’s not giving gifts, it’s growing gifts
Cheetah Innovation: Micro Venture Capital Franchise approach replays business successes Use partnership & volunteer support Donor help for some early stage costs Shared resources between investments Reach into the middle by lowering investment costs
Investment Model Foundational Principals
Investment Examples Operating Operating Prototyped ½ Funded Almost Funded
Strategy Summary: Lives Changed Jekoniah and his family of 7 is leaving poverty. And so are 1000’s more: Cheetah is active in Tanzania & DR Congo. Requests and opportunities in many African nations. Unusual approach is needed by many. It’s not giving gifts, it’s growing gifts
Strategy 1: Farmer Commercialization (Traditional NGO work): farmers overcome small size by joining & improved agronomy (Business work) Provide commercial loans to farmers – and guaranteed markets Strategy 2: Fix Value Chain Gaps Invest in food chain: preservation, processing, storage & distribution Mission Summary
Its better to teach fishing than give fish. -It ends food dependency. Why not buy the fish? -It ends all dependency.
Thank you! www.CheetahDevelopment.org