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    Date submitted
  • 16-Oct-2017

NAMPYA FARMERS' MARKET

Abstract

NAMPYA FARMERS MARKET is is a local mobile-based enterprise which offers a tech-enabled sourcing and distribution platform for agricultural produce to retail outlets in urban centers. In being a mobile-based business to business supply platform, NAMPYA enables vendors to order supplies bananas using its platform, thereby saving time of the retailers on trips to the markets by delivering to their doorstep "better quality and better priced stock"

Additional Questions

Who is your customer?

NAMPYA FARMERS MARKET operates a mobile-based business to business supply platform for retail outlets, kiosks, and market stalls in Uganda. It supplies pineapples, tomatoes, and more.

What problem does this idea/product solve or what market need does it serve?

In Uganda, 80% of food produced in rural areas gets consumed in urban places but the market is disorganized. At the same time, Uganda is importing 100 Million Dollars worth of food stuff and the donor class is not doing a great job of resolving this problem meaning there is a huge task ahead of trying to organize the market across the country. The problem with the agricultural value chain is that the market is disorganized. Brokers are the largest beneficiaries and not the farmers meaning you cannot solve any problem without fully restructuring the market. The main reason markets do not work here is because there lacks a proper market infrastructure to support the 5 million population in Kampala. As a result, produce goes bad and there are massive delays at the markets. This means that the cost of the same gets passed to the customer. For example, the cost of a banana in Kampala which has come from Bushenyi or Ibanda is the same as the price of a banana in London, which has come from Guatemala. This fundamental flaw points to an inefficiency that only technology can solve.

What attributes will make this idea/product successful? Why do you believe that those features will create success?

Using technology to aid the sourcing and distribution of agricultural produce to retailers in urban center saves them time on trips to markets for stock while farmers have access to stable markets at better rates. By our way of allowing vendors a credit line of 48 hours and oversupplying them so that at all times they have stock to sell to the market, not only allows them to sell more but helps them deal with liquidity issues. Mobile money solution is a big boon for the business. There are 9 steps between the farmer and the vendor side of things which is the mama mboga and kiosk that buys from NAMPYA and mobile money is a major facilitator of these transactions and processes.

Explain how you (your team) will execute to make this idea/product successful? What gives you (your team) an advantage over others already in the market or new to this market?

NAMPYA FARMERS MARKET is essentially building a commodities marketplace to connect farmers with customers using a business to business model. The problem with the supply side (the farmers) is futures. The farmer does not know the value of their produce prior to selling it. For instance, the price of tomatoes in Kampala was Uganda shillings 2600 a kilo, a month ago. The price of the same is Uganda shillings 1300 owing to oversupply,What NAMPYA wants to do is use technology to fix this and make it more predictable. Farmers send SMS to alert NAMPYA of their produce while the staff of NAMPYA in the field make bookings on the produce when its ready. NAMPYA then uses this data to create a profile about the value of a certain commodity at a certain point in the future thereby creating an organized farmers market. On the market side of things, the vendors face a problem with liquidity which leads to food inflation. Add other market bottlenecks and the price of food stuff will keep rising. This can be solved by an oversupply, where the vendor will not at any one time lack the necessary foodstuffs to sell to their market. However, the mama mboga(grocer) does not have enough cash for risk capital and so NAMPYA solves this by first ensuring a constant supply of the necessary vegetables and secondly offering trade credit to the customers. Our average client orders their goods three times a week. So we give most of them a 48-hour line of credit until the next delivery. This not only allows them to sell more but helps them deal with liquidity issues. NAMPYA primarily uses technology to score the vendors before deciding how much credit to give the vendor and this is still at the pilot stage.