Everywhere you look in Rwanda – including the capital city of Kigali – you’re never far from lush vegetation. Like many other countries in Africa, agriculture is one of the pillars of the nation’s economy, employing nearly 65% of the total population, and accounting for about 25% of the GDP.
Through their own farms and a network of thousands of out-grower farmers, SOUK Farms is working to bring Rwanda’s horticultural bounty to the wider world. The company focuses on premium, high-value crops – including avocados, tenderstem broccoli, French beans, chili peppers, and baby corn – exporting to buyers in Europe and the Middle East. Rwanda’s fertile soil, ample water supply, and extended growing season make SOUK perfectly positioned to deliver this in-demand produce at times when other countries aren’t harvesting.
Sustainable growth a focus on impact
Coming from a family of entrepreneurs, SOUK founder Seun Rasheed established the company six years ago after recognising Rwanda’s potential to become an agricultural powerhouse. As an investor, Goodwell has been part of that journey for the last three years, witnessing Seun’s vision of creating a high-impact horticultural producer and trader come to life, and providing hands-on support to give the company a stronger foundation for growth.
SOUK’s decision to develop their own farms as well as work with outgrowers provides both production and impact advantages. Managing their own farms ensures consistent production and enables them to conduct ongoing research and development. It also supports the company’s aim to create local employment opportunities and stronger incomes – something they are already achieving with over 1500 (full-time and casual) employees who work at the farms, packhouse, and head office.
But according to Seun, their work with outgrowers is where the company is seeing the greatest impact. “A lot of out-growers we work with typically would grow things like maize and the local variety of beans. By working with SOUK, we convert these outgrowers to growing high-value crops, such as fine beans, chili and even avocados. What we find is typically ouroutgrowers make more in terms of net profit annually, between 230% and 420%. How do we do that? We give them the key inputs we need, but more importantly, we give them the technical expertise,” he says. Working with outgrowers also gives SOUK the ability to quickly and flexibly scale, as they can easily expand their farmer network to deal with increasing demand for specific crops.
While social improvements are at the forefront of their impact strategy, SOUK also has ambitious plans for improving their environmental footprint. For example, the company has already successfully transitioned from air to sea freight for the majority their shipments, and has a strong record of minimising post-harvest losses thanks to cold-chain logistics. Their next major goal is going completely off-grid, aiming to move to solar power for their irrigation needs and packaging facilities in the next 12 months.
See what makes SOUK special
At the end of last year, Goodwell’s marketing team (Liz Keel and Kaat Verschuere) joined investment associate Anthony Wainaina in Rwanda to see SOUK’s progress firsthand. Visiting the head office, processing facilities and small plots of broccoli and French beans in Kigali, as well as vast avocado fields in the countryside of the Kayonza district, we got the chance to meet some of the people who are contributing to SOUK’s success.
Talking to packhouse employees, farm managers and smallholder farmers, it was clear that SOUK isn’t just transforming the future of farming in Rwanda – it’s also creating valuable opportunities in the local communities where they work. Below, you’ll find just a brief impression of how SOUK is making a positive impact.
African businesses like SOUK operating at every link in the agricultural value chain have the potential to address some of world’s most urgent problems – including hunger, carbon emissions, and food waste – while building more inclusive, resilient communities and economies. If you want to know more about how we’re using flexible, non-dilutive funding to better support mid-stage African entrepreneurs creating social, environmental, and financial impact, please get in touch. (contact@goodwell.nl)
