Entrepreneurship Zone: 12 July 2023 :: From Nigeria to Zambia: Six companies cashing in on cassava

Wed Jul 12 09:37:57 CAT 2023

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Entrepreneurship Zone: 12 July 2023 ::  From Nigeria to Zambia: Six
companies cashing in on cassava

Bulls ‘n Bears Investors Diary: Today’s Events

 <https://www.hyundai.co.zw/> Cassava, a widely grown but underutilised root
crop in Africa, boasts significant commercial potential. It can be processed
into various products, including cassava flour, starch, ethanol, and glucose
syrup. Particularly, its gluten-free flour presents substantial
opportunities in the health and wellness sector.

In this article, we spotlight six African companies tapping into the
economic potential of cassava.

1. Supplying cassava products to Nestlé and Unilever: How a Nigerian
entrepreneur built her agri-processing business

Yemisi Iranloye conceived the idea for Psaltry International, a cassava
processing company, in 2005. She was then an employee at a firm where she
worked extensively with cassava, gaining insight into the crop’s commercial
potential. Iranloye began purchasing her first plot of land in instalments
while still employed, subsequently developing it into a farm and factory.
Psaltry International, now, produces food-grade starch, high-quality cassava
flour, and boasts Nigeria’s first cassava-based sorbitol factory. The
company grows its own cassava, but also sources from local smallholder
farmers. The food-grade starch, with nearly 300 applications in the food
industry, is primarily used by beverage companies and for seasoning,
noodles, and pastries. Sorbitol, being a healthier sweetener than cane
syrup, is used in toothpaste, pharmaceutical drugs, and high-end drinks. The
company’s clientele includes Unilever, Nestlé, Nigerian Breweries, and
Promasidor, among others. 

2. Industrialisation of cassava in East Africa: Investor identifies gaps in
the market

Agriculture-focused private equity firm Pearl Capital Partners, manager of
the Yield Uganda Investment Fund, sees growth potential in the cassava value
chain in Uganda. In 2021, the firm invested $2.5 million in cassava producer
Pura Organic Agro Tech Ltd to set up a vertically integrated cassava
processing plant to produce high-quality cassava flour, tapioca starch (an
industrial input used in the packaging industry) and sago (an edible starch
delicacy popular in India). “Uganda has a natural advantage when it comes to
the production of cassava, in terms of its soil and its climate. The
opportunity presented to Yield Fund was to commercialise and industrialise
cassava and, in the process, uplift the living standards of smallholder
farmers in Uganda with around 1.6 million households dependent on cassava
for their livelihoods. We want to play a role in changing cassava from a
food security crop into a cash crop,” said Wanjohi Ndagu, a partner at Pearl
Capital Partners. 

3. Ghanaian entrepreneur capitalises on demand for processed cassava
products

Janet Gyimah-Kessie launched Josma Agro Industries after beginning cassava
cultivation in Ghana under a local initiative. Initially faced with a lack
of buyers for her fresh cassava, she turned to processing the crop into
garri, starting in a local kitchen with just eight ovens. Over time,
Gyimah-Kessie grew the business, registering it in 2004 and securing
government grants and private funding for quality equipment. Today, Josma
supplies its products to bulk buyers and is poised to enter the direct
export market. The company is also increasing its high-quality cassava flour
production, expecting a larger market due to its industrial applications. 

4. Could Nigerian cassava become the US’s next food trend?

Established in 2018 by Nigerian native Dr Tony Bello, US-based Shine Bridge
Global focuses on creating products from Nigerian cassava. The company
primarily transforms high-quality cassava flour into instant tapioca flakes,
which have similar uses to potato flakes in commercial food production. It’s
also developing cassava-derived products such as crackers, pizza crusts,
ready-mix fufu, fried snacks, and flatbreads using these flakes. Shine
Bridge Global plans to trial launch its tapioca flakes and packaged goods in
the US and UK soon, with intentions to gradually expand production and
distribute to consumer goods companies and marketers. 

5. Cassava in the mix: Food entrepreneur spots business potential in
gluten-free market

Mary Karoki, CEO of Onja Foods in Kenya, produces Uji, a unique gluten-free
flour, catering to growing health concerns and dietary needs. The company,
which sources raw materials like cassava from local farmers, offers
gluten-free products and freshly baked wheat-free pastries. Karoki, who
began Onja as a side hustle while running a cleaning business, also shares
gluten-free recipes via YouTube, promoting healthier lifestyles. 

6. Harnessing cassava’s potential in Zambia’s industrial sector

Premiercon Starch Company Limited, established by Lubasi Yuyi, manufactures
starch from cassava and sweet potato in Zambia’s North-Western Province.
Yuyi, previously a provincial lands officer, recognised the potential of
cassava-derived starch for use in mining processes, paper production, and
cardboard packaging. From 2013 to 2015, the company concentrated on creating
an outgrower scheme, growing superior cassava varieties with higher starch
yields and faster maturation periods. Despite encountering funding
difficulties and delays in constructing the processing plant, Premiercon now
boasts a daily capacity of 48 tonnes. The company caters to customers in the
construction and packaging sectors, with plans to increase production
volumes to supply mining houses.  

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
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