Entrepreneurship Zone: 15 January 2025 : Tanzania: Honey business grows revenues by 475% in four years
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Entrepreneurship Zone: 15 January 2025 : Tanzania: Honey business grows
revenues by 475% in four years
<https://www.firstcapitalbank.co.zw/>
An employee at Central Park Bees’ factory.
Central Park Bees, the Tanzania-based owner of the Swahili Honey brand, has
grown its revenues from $469,000 in 2019 to $2.7 million in 2023 – a 475%
increase. The company aggregates and sells honey sourced from a network of
smallholder farmers.
The business first came onto the radar of Luni Libes, founder and CEO of
agribusiness investment holding company Africa Eats, in 2018. Drawn by its
standout packaging, Libes decided to invest approximately $21,000. Africa
Eats has a portfolio of 22 companies.
Joseph Kadendula, CEO of Central Park Bees, developed an early interest in
farming. After earning a bachelor of commerce degree in international
business at the University of Dodoma, he began cultivating onions, tomatoes,
capsicum, and cucumbers near the capital city. However, the heavy presence
of middlemen raised doubts about the business’s viability.
“There were so many people between the production of the crops and the
client. There was very little direct access for the farmer to the market and
I felt like I had no control,” he said in an earlier interview with How we
made it in Africa. While on a trip to China to procure farming equipment in
2013, Kadendula saw the prominence of honey in this market. Back home in
Tanzania, most local honey was sold on the side of the road as a way to earn
a little extra income.
Kadendula decided to explore commercial honey production. Without any
experience, he purchased a processing machine and imported beehives from
Kenya after failing to find suitable ones locally. “The beehive supplier
provided some training and that’s where I learnt the basics of beekeeping. I
spent a lot of time doing research online and watching YouTube videos to see
what others were doing,” he explained.
In 2014, he started selling honey in the local market. It wasn’t long
before Kadendula made better profits than he’d ever made with crop
production. He approached his brother, Christopher, and Central Park Bees
was founded in 2015.
>From the start, they realised their own production would not meet demand.
The company decided to establish a network of farmers to supply honey. By
2023, Central Park Bees was working with more than 2,500 small-scale
farmers.
The company meets the growing demand for honey products both for retail use
and medical purposes in Tanzania and abroad. It has become Africa Eats’
largest exporter, with clients in Europe, Asia, and North America. “They got
to the scale where they can fill a whole container of honey or beeswax or
both … And so they’re making nice dollar income now exporting,” Libes noted.
* —Howwemadeitinafrica
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