Management Consulting

In Uganda and Rwanda, small farmers producing coffee and tea face significant challenges in accessing major international markets due to prohibitively high local interest rates, which can reach as high as 20%. This financial burden forces them to sell their crops at minimal profits, often resulting in unsustainable farming practices. To address these issues, Almacena, a Netherlands-based agricultural technology firm, has stepped in to provide financing at more reasonable rates. They also facilitate the shipping of coffee to European warehouses, where it is sold directly to roasters, ensuring that profits return to the farmers after a minimal service fee. Aon's Commodity Industry Practice has played a pivotal role in supporting Almacena by providing essential services such as marine cargo insurance and credit insurance, as well as valuable connections within the financial industry. This partnership has not only enhanced Almacena's credibility but has also allowed them to focus on their core mission of making a social impact. The collaboration has opened doors for Almacena, enabling them to connect with local cooperatives and expand their operations. As a result of these efforts, Almacena aims to positively impact the lives of 800,000 smallholders across East Africa by 2025. The initiative has garnered recognition, with investments from the Dutch Good Growth Fund and a $125,000 award from FMO, the Dutch development bank, as part of the Finture Solutions awards. This funding is crucial for scaling operations and enhancing the livelihoods of farmers in the region, demonstrating the tangible benefits of innovative financing and strategic partnerships in the agricultural sector.