Guavay - Locally produced organic and mineral agro-inputs

Introduction

Guavay Company Limited (GCL), founded in 2014, is a for-profit, fast-growing Tanzanian SME with the goal to support smallholder farmers to restore soil fertility and maximize crop yield.

Under the brand name “Hakika”, GCL manufactures innovative crop-specific organic fertilizers, mineral-organic fertilizers, bio-char enriched soil conditioners, and distributes other complementary quality agro-inputs to more than 9’000 rural smallholder farmers.

Other value-added services include offering training, soil analysis, and market linkage to strengthen farmer relationships.

Through continuous R&D (research and development) and using latest bioprocessing technologies, GCL became the 1st company in 2021 to sale patented, EU and US certified organic fertilizer products in Tanzania.

In october 2024, AlphaSeeds invested in Guavay with 2 other prominent Swiss Impact Investment entities: elea Foundation and iGravity. elea Foundation is committed to fighting absolute poverty through entrepreneurial solutions. iGravity specializes in impact investments and innovative financing for development.

Tanzanian agricultural and fertilizer market

Agriculture is a vital sector for Tanzania, contributing 30% to GDP and accounting for approximately 35-40% of total exports. The agricultural sector employs 80% of the country’s workforce . With the population expected to grow from 69 million to 82 million by 2030, improving productivity in agriculture is critical . The core crops farmed can be categorized into 1) cash crops and 2) food crops. Cash crops include main export commodities like coffee, cashews, and avocado, whereas food crops are mostly for local consumption, such as maize, rice, and cassava. The Tanzanian agricultural market is characterized by low productivity, primarily due to low soil fertility and low or inappropriate fertilizer use. Fertilizer use is six times lower than the global average. These issues contribute to soil degradation, food insecurity, import dependency, and low livelihoods for smallholder farmers.

The Team

Guavay was founded by four visionaries: Ahad Katera, Latifa Mafumbi, William Azalia, and Noah Bendera, who met at the University of Dar es Salaam. With diverse yet complementary backgrounds, they were driven by a shared passion for addressing organic waste management and declining soil fertility in Tanzania. After participating in an incubation program in 2014, they launched Guavay.

Impacts of the project

Human Impact

GCL is committed to improving the lives of its employees by providing direct employment, favorable working conditions, and opportunities for professional growth. With a diverse workforce of 60% men and 40% women, the company promotes gender balance and inclusivity. GCL offers competitive wages and invests in employee development, enhancing both well-being and career prospects. Looking to the future, GCL plans to expand its team from 16 to 49 full-time employees by 2027, significantly increasing employment opportunities and further strengthening its positive impact on workers’ lives.

Social Impact

The company currently reaches 9’000 farmers as customers, with 43% of these being women smallholder farmers. This outreach has led to increased crop yields and improved long-term soil health for these farmers, directly enhancing their livelihoods and food security. The company's activities have also led to the creation of 800 indirect jobs, further benefiting the community.GCL aims to significantly expand its reach, targeting to serve over 18’000 farmers by 2027,

Environmental Impact

The company's organic fertilizer production creates value from biological resources by utilizing biowaste rich in carbon and other plant nutrients. This process has already used 3’000 metric tons of biowaste as feedstock, contributing to a healthier environment and a circular economy with reduced emissions. Furthermore, GCL's products and practices contribute to carbon sequestration, with an estimated 1’550 metric tons of carbon sequestered to date. The company's organic fertilizers increase the carbon content in soil, enhancing its potential to act as a carbon sink and absorb CO2 from the atmosphere.

Economic Impact

GCL's operations have a significant economic impact on various levels of the Tanzanian economy. At the micro level, farmers who use GCL's products benefit from increased crop yields, which directly translates to higher incomes and improved economic stability for farming families. Agro-dealers in GCL's supply chain also benefit economically, as the company's high-quality products provide a reliable addition to their product range with the potential for decent profit margins. At a broader level, GCL's activities stimulate economic growth in rural areas by creating both direct and indirect employment opportunities.

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Location: Tanzania

Product: Locally produced organic and mineral agro-inputs

Investment Year: 2024