Avocado startup ramps-up market access through IIA’s SME upscaling program
Rwathia Agrofarm is a Kenya Agribusiness located in Murang’a County. The small enterprise focuses on farming, exporting, and adding value to avocados. According to Joseph Gitigi, the Marketing Director for Rwathia Agrofarm, the company works with small-scale farmers and intents to drive market expansion for avocados
Since its founding in 2020, the company has not grown as I expected mainly because of poor market access, which has continued to affect the revenue and strain the day-to-day operations,” Joseph remarks. According to Joseph, Rwathia Agrofarm desired to acquire more market share, including a venture into the export market. “We did not understand how we could effectively market our business and how we could venture into the international market,” Joseph adds.
Limited access to the market remains a severe constraint affecting the growth and competitiveness of small and medium enterprises (SMEs) in Kenya due to the shrinking domestic market resulting from importation, globalization, and invasion by cheap-poor-quality products (GOK, 2005; KIPPRA, 2006). SMEs also face additional challenges due to a lack of market information and inadequate skills to access available market opportunities or venture into new markets.
How can these enterprises enhance market access to fast-truck growth through increased revenue?
Joseph joined Invest in Africa’s program for upscaling manufacturing SMEs to learn how he could drive access to the market for his business. The program involved five modules: market access, access to finance, transparency, and traceability, good manufacturing practices, and new product development.
“The program supported my business in adopting effective marketing strategies successfully. One of the measures we implemented immediately was online marketing. It was valuable to learn how to position the business and engage potential clients effectively,” said Joseph. According to him, currently, the company is engaging on social media and exclusive online platforms for international markets.
Joseph says that more clients have started to express interest in Rwathia Agrofarm’s products, especially via social media.
“We have started to receive reasonable inquiries, and I am currently engaging several clients who want to do business with us, including an opportunity for us to export to Switzerland. Through the program, I learned how to pitch to new clients and the requirements to venture into the export market, and I am certain that the ongoing engagements will bear valuable and long-term transactions for the business” Remarks Joseph.
Rwathia Agrofarm is one of the 40 enterprises from Kenya and Uganda that enrolled in the program for upscaling manufacturing SMEs in natural products. The program was implemented by Invest in Africa (IIA) in partnership with GIZ Business Scouts for Development.