Entrepreneurship Zone: 02 May 2023 :: E-commerce meets agriculture: The journey of building Farm Fresh in The Gambia

Tue May 2 10:49:43 CAT 2023

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com/> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Entrepreneurship Zone: 02 May 2023 :: E-commerce meets agriculture: The
journey of building Farm Fresh in The Gambia

*          

·          

Modou NSZ N’jie, founder of Farm Fresh

Farm Fresh, an e-commerce platform in The Gambia, offers fresh fruits,
vegetables, and other FMCG products. Established in 2013 by Modou NSZ N’jie,
at a time when internet penetration in the country was below 15%, the
company has experienced slow and steady growth. Jeanette Clark speaks to
N’jie about targeting a unique market in the diaspora, overcoming
distribution challenges, and adapting payment methods.

Modou NSZ N’jie has two passions: IT and agriculture. After a career of
over a decade dedicated to the first, which culminated in landing the job of
head of technology at Guaranty Bank in his home country The Gambia, N’jie
saw a gap in the supply chain of agricultural produce in 2013. He believed
that farmers would benefit from a system that eliminated middlemen.

“They are often taken advantage of and had prices dictated to them. It was
an unfair practice,” says N’jie. These producers also faced post-harvest
losses if they couldn’t find buyers quickly, due to a lack of appropriate
storage facilities.

This was the perfect opportunity to marry his interest in agriculture with
his IT skills.

N’jie built an e-commerce platform called Farm Fresh, which sells directly
to the public, providing a ready market for farmers. These farmers benefit
from the security of a guaranteed buyer and receive better prices than they
would get from market middlemen. On the other hand, Farm Fresh is able to
secure fresh produce at discounted prices straight from the source.

One-man show

For the first four years, N’jie was the only employee of Farm Fresh. “I
would take the orders, do the accounting, manage the marketing, and ensure
delivery. It was very challenging, but I persevered and grew the business to
the point where I could hire more people,” he says.

Early on, difficulties involved local consumer attitudes towards online
ordering and The Gambia’s limited internet access. People in the country
were accustomed to hands-on interactions with products at markets, leading
to scepticism about purchasing items online and awaiting delivery.

“Initially, we had very few customers, probably around 10 regulars,” says
N’jie. “Not a lot of people had access to the internet, and then those who
did were not familiar with online shopping. As we were the first e-commerce
platform in the country for agricultural produce, I had to do a lot of
education on how to use it.”

According to statistics from the World Bank, only 14% of Gambians were
using the internet in 2013 when Farm Fresh was established. That number has
since climbed to over 30%, and so have the company’s customers.

A breakthrough came when N’jie opened a physical Farm Fresh store in Bakau,
a city just west of the capital of Banjul, where the company’s headquarters
are located. “When we opened the store, we became a click-and-mortar
operation,” says N’jie. The physical presence immediately helped build trust
with customers, eventually translating into more online purchases through
the e-commerce platform.

While internet access has improved in the country, N’jie notes that the
cost of that access is still a hurdle to growth for Farm Fresh. “To overcome
this, we take orders in several ways in addition to the e-commerce platform:
walk-ins at our store, via telephone or social media,” he says.

A boost from funding and product diversification

In the early years, Farm Fresh’s startup capital came from the pocket of
its only employee, N’jie himself. Then, in 2015, the company was selected as
part of the first cohort of startups supported by the Tony Elumelu
Foundation.

The US$5,000 Farm Fresh received helped set up the physical store, improve
the e-commerce platform, and diversify the product lineup.

In the first year or so, the platform only offered fresh fruit and
vegetables. However, it became clear that there was demand for other local
produce such as cereals, dried fruits, moringa and baobab products as well
as honey. As these were added to the list of items, user numbers rose.

“Today, we’ve grown to around 150 regular customers, and perhaps 250
non-regulars making purchases per month on our site,” says N’jie. In a
successful month, the company generates roughly $5,000 in revenue.

Targeting the diaspora

N’jie and his team realised there was a specific customer they needed to
target: The Gambia’s diaspora, who are working abroad but want to take care
of family members remaining in the country.

“The culture of Gambians includes the remittance of money back home. We saw
this as low-hanging fruit; we could promote the use of our platform to these
customers,” says N’jie.

The company used digital marketing platforms such as Facebook to get the
word out and several Gambians outside the country’s borders have embraced
the idea. “The vast majority of the revenue we generate is coming from the
diaspora – at least 70%, I would say,” says N’jie.

Social media, including Facebook, Twitter, and Instagram, remains the
company’s primary marketing platform, with a combined following of over
70,000 across these channels.

Payment options

Initially, the company offered cash-on-delivery as its only payment option.
When its diaspora sales started picking up, it added PayPal but re-evaluated
that decision when it realised that the charges from the payment gateway
were eating away at its profit.

It now offers a mobile money payment solution in partnership with Ecobank
and a local payment gateway via Gambian company TaybullPay. EFT payments and
cash-on-delivery are still accepted.

“There is a threshold for cash-on-delivery payments. For larger orders we
wait until the payment reflects in our bank account after an EFT,” says
N’jie.

Navigating delivery challenges and expansion

When N’jie was the only employee, he made the deliveries of all orders
himself. As the business and the orders grew, he had to consider a more
sustainable solution.

One option was to use local taxis to make the deliveries for him, but that
was too expensive, so N’jie, and his small team later on, continued handling
this in-house.

Then, around 2018, third-party delivery companies started popping up in The
Gambia, providing Farm Fresh with a new approach.

“In the last three years, however, we have realised that these companies
are becoming overwhelmed with demand. We were experiencing more and more
delays and have now acquired a delivery motorbike and are back to doing our
own deliveries again,” he says. “When there is a large order, we still
outsource to delivery companies.”

The company applies a delivery fee ranging from $1.50 (for Fajara, a suburb
neighboring Bakau) to $11 (for Brikama, situated south of both Bakau and
Banjul).

Farm Fresh’s delivery area has grown from a radius of 20km to up to 60km
today. N’jie is hoping to expand this radius to 100km within the year. In
parallel, the company is looking at cold-chain solutions that would become
more relevant if it had to do deliveries of fresh produce to a larger
geographical area.

Covid a mixed bag

In 2020, when the Covid-19 pandemic hit, Farm Fresh was justifiably worried
as it had to also shut its physical store.

Nonetheless, during the initial six months, online orders surged
considerably due to restricted movement and the growing need for home
deliveries. Higher sales from concerned Gambians abroad, who sent deliveries
to their family and friends, further contributed to increased revenue.

However, after about six months, the company started seeing those
additional orders dwindle. “People were losing their jobs, locally and
internationally, and had to cut back on expenditure. We saw that impact on
our bottom line,” he says. Post the pandemic, sales have normalised.

Popular products

Farm Fresh stands as one of the few e-commerce platforms in the country
primarily focused on agricultural products, according to N’jie. However, new
competitors have emerged.

Currently, it offers over 100 products – fresh fruits and veggies, bread,
nuts, tinned meat, processed juices, oil, snacks like potato crisps, and
even airtime and prepaid electricity top-ups.

“One of the most popular products remains the fresh strawberries when they
are in season,” says N’jie. “We cannot keep up with demand.”

Future growth plans

Farm Fresh has registered a subsidiary on the other side of the continent,
in Rwanda. It is yet to start operations in the country but has preliminary
agreements with suppliers in place and hopes to commence business within the
next six months to a year.

“One of the reasons why we have decided to expand is because there is a
very conducive business climate in Rwanda. Opening a business does not cost
you anything, you can do it online,” says N’jie.

It also has its eyes set on neighbouring countries like Senegal, even
though it is a more advanced market that already has several e-commerce
players.

In The Gambia, the company is considering vertical integration to venture
into actual agricultural production as it believes some niche products, like
strawberries, could offer growth opportunities.- Howwemadeitinafrica

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/>
www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
bulls at bullszimbabwe.com <mailto:bulls at bullszimbabwe.com?subject=Unsubscribe>
Tel: +263 4 2927658 Cell: +263 77 344 1674

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 244032 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230502/5c3c1684/attachment-0001.bin>