Address the Challenges: Describe how your Vision will address the challenges described in the previous question.
1. Rapid urbanization: the reason the youth is moving away from villages is mainly because of the lack of prospects in the agricultural sector; KAYATOM will bring value to the local agriculture by enabling farmers to get access to the capital they need to develop their farming business;
2. Shifting of local diets: by helping increase the local agricultural production output, KAYATOM will help to drastically bring the price of locally produced food, thus making populations turn back to healthy food habbits;
3. Deterioration of the road network: KAYATOM, through its network of hubs located throughout the region, takes away from farmer the burden of transporting their production to their customers. With the economies of scale, KAYATOM will be able to reduce the transportation costs, whatever the road quality. Moreover, increased revenues in the villages will result in increase tax revenues and thus a greater interest for the Cameroon government to better the quality of life of the populations;
4. Climate change: Climate change requires a change in agricultual practices through the use of better technologies and tools such as greenhouses and irrigation; by providing farmers with more capital in hand, KAYATOM enable local farmers to better prepare themselves for the inevitable effects of Climate change;
5. Population increase: KAYATOM will help farmers produce more, and thus there will be more food on the shelves for an ever increasing population. Besides, the production surplus could be shipped to neighboring countries thus reducing the need for migration;
6. improper modernization of agriculture: using the KAYATOM mobile platform, farmers are able to sell the future production; with this capital, farmers are able to purchase agricultural products (seeds and fertilizers) and equipment; the purchased resources are then delivered to the farmers through KAYATOM's network of hubs;
Full Vision: How do you describe your Vision for a regenerative and nourishing food future for your Place and People for 2050?
KAYATOM is a project of The Societe de Creation et D’Encadrement des Jeunes Entreprises WOHAOO SARL (SCREEN WOHAOO SARL, or simply WOHAOO S.A.R.L.), a professional Business Incubator based in Ngaoundere, Adamaua,! Cameroon, since 2014.
The project was started in 2016, and since then, has been growing in size and ambition.
To this date, the project has been in its Research & Development phase.
The vision behind KAYATOM is to create, within 10 years, an African Giant in the area of Agricultural Financing, which could rival with international exchange platforms such as The Chicago Mercantile Exchange (CME) or the Tokyo Commodity Exchange (TOCOM).
The mission of the KAYATOM service is to make Agriculture stress free, not just in Cameroon, but also in Africa. Cameroon’s agriculture is currently at the verge of disappearing, due to ever-increasing imports from countries like India and China, which are flooding Cameroon markets with low quality cheap food.
KAYATOM will remedy this situation by providing farmers with the capital the need, whenever they need it.
The dream behind KAYATOM is to make Agriculture, the beautiful, and rewarding profession it used to be, as in the years following the independence.
The main objectives for writing a Business Plan for the KAYATOM service are:
1- To Become Cameroon’s Number One Food Procurement Service within 3 years;
2- To Become Africa’s Number One Agricultural Exchange Platform within 5 years;
3- To Multiply the Agricultural Output for Domestic Crops in Cameroon by 5 within 3 years;
4- To Raise the Annual Rural Income per Capita in Cameroon above 1,000,000F (or US$2,000) within 3 years; it’s current National average is 160,000F (or US$300);
5- To Achieve a Return on Investment (ROI) of at least 1,000% over the first 3 years;
The Value Proposition:
Cameroon used to be one of Africa's most prolific food producers with a very rich and diverse agricultural portfolio including Maize in the Central region, the Banana plant in the South, Ginger cultivated in the West, and Onions grown in the North. However Cameroon Agriculture's glorious days are of the past. Today, most Cameroonian farmers are plowed under with the heavy burden of rising raw materials’ costs. Moreover, the financial context of Cameroon does not give farmers enough access to financing.
Hopefully, there is a solution, and it is called KAYATOM. KAYATOM allows farmers, who are also landowners, to easily access the capital they need.
KAYATOM will therefore, indirectly, operate in the market for Agricultural Financial Services, which includes banks, micro finance institutions, ROSCAs (Rotating Credit and Savings Associations or tontines) and self-financing.
However, farmers will go for the KAYATOM solution because it is low risk (no collaterals), it is very accessible (almost no prerequisites), and it provides a very professional (unbiased) financial service.
Our slogan to the farmers will be: KAYATOM Makes Agriculture Stress- free Again.
Moreover, because of its business model, KAYATOM will also simultaneously operate on the market for Agricultural Supplies. It is a market targeting restaurants, hotels and other agro-industrial businesses. Here, the main players are the “buyam-sellams” (resellers), food importers and local farmers. KAYATOM expects to beat the competition in this market by providing restaurants and hotels with a procurement solution that is friendly, quality-conscious, and unlimited (in quantity).
The KAYATOM’s slogan to the catering industry will be Good Food.
KAYATOM is about to be launched as a brokering service in the Agricultural Sector in Cameroon. As such KAYATOM will act as an intermediary between agricultural producers (farmers) and agricultural supplies consumers or buyers (restaurants, hotels, or any other agro- industrial business).
For farmers, KAYATOM will fulfil their need for financing by providing them with the capital they need to successfully launch their next agricultural campaign.
For consumer businesses, KAYATOM will fulfil their need for quality agricultural supplies.
Because, KAYATOM works simultaneously with producers and consumers, KAYATOM will initially focus exclusively on Domestic crops, in contrast to crops destined to export such as cocoa, coffee or banana.
The user experience is divided into four phases: the selection (how the user gets to discover the product), the purchase (how the user acquires the right to use the product), the usage (how the user uses the product to fulfil her need), and the disposal (what the user gets to do after using the product):
-Selection: Google Search; Google Play Store Search; The KAYATOM Finance Weekly Journal; Agricultural monitors roaming villages; Word of mouth;
-Purchase: The farmer signups in the KAYATOM mobile app; The farmer submits a production certificate; The certificate is approved by a KAYATOM- appointed Referee; The Price is a fixed fee; The capital is credited to the farmer’s account;
-Usage: The farmer can debit her KAYATOM’s account using a mobile banking service or through standard bank transfer; The farmer may decide to purchase inputs with her account balance, in whole or in part.
-Disposal: When the production certificate expires (matures), farmers are required to deliver the promised goods to the nearest KAYATOM distribution centre; In case of default, i.e. if the farmer is unable to deliver her promise, her farm is seized and confiscated for a fixed period of time.
- Purchase of inputs (mobile-based): fertilizers and improved seeds;
- Chat-based Technical monitoring/assistance;
- Weekly printed newspaper on Agricultural financing, best practices and developments.
Industry and Market Analysis:
The Cameroon’s agricultural sector has two major segments:
- Cash crops: those are farms dedicated exclusively for the production of crops for the sole purpose of export; crops such as cocoa, coffee, banana; They represent 60% of the total farmland;
- Domestic crops: those are farms dedicated to the production of
products that will be consumed by the local population and
agro-industries; they represent 40% of the total farmland;
The KAYATOM service, for the first two years at least, will focus exclusively on Domestic crops farms.
If we consider the percentage of farmland dedicated to Domestic crops (40%) to be correlated to the percentage of the agricultural population working in such farmlands, we find the total number of farmers working in domestic crops products to be 71,500 farmers (40% of 178,700, the total number of the agricultural working population in the region, which itself is taken as 5% of the total agricultural population of the country).
However, the KAYATOM service requires that farmers have control over their farmland, which is not the case for all farmers. There is no data on the percentage of men having control on their farms. However, we know that the percentage for women farmers having control of their farmland in Cameroon is 24%. We can then find that the total number of women having control of their farmland, and working on domestic crops, is 11,100 (24% of 65% of 71,500).
We can therefore, very pessimistically, assume that the number of potential customers for KAYATOM in the Agricultural Financial Services to be 22,200 farmers (11,100 times two, considering an equal representation of men and women).
The market for agricultural financing in Cameroon is currently populated by four main direct and indirect competitors: Self- financing, MFIs (Microfinance Institutions), ROSCAs (Rotating, Savings and Credit Associations) and Government agencies.
An analysis of the buyer experience of the current agricultural supplies market shows the following strengths: adjustable pricing; and exhibits the following weaknesses: difficulty of access; abundance of food wastes (due to processing), and lack of complementary products.
With the KAYATOM product, we intend to break current customers’ loyalty with existing brands through the promotion of our unique value proposition. Our solution, KAYATOM, solves the key weaknesses of the different markets, while keeping their strengths. This way, the customer is given an offer she simply cannot refuse.
-Strengths: Exceptional Geographical Location; The headquarters of the company is located in the Adamawa region, at the centre of the country and the most irrigated place in Central Africa; The extensive educational and professional background of the CEO (Marcel KWEDI, M.B.A.); The KAYATOM Mobile App; this mobile application uses the latest Artificial Intelligence technology for its business logic processing, making it one of the most advanced Mobile Applications in Cameroon, and probably, in Africa which has enabled it to receive an award from The Tony Elumelu Foundation in 2018;
-Weaknesses: Attracting, Recruiting and Retaining the best employees (as a small and young company); Limited financial resources;
-Opportunities: Ever Increasing Mobile penetration: 85% as of 2017; Advent of Mobile banking allowing people in rural areas to have access to banking services;
-Threats: Only 50% of the country is covered by a 3G/4G network (Mitigation: the use, by farmers, of KAYATOM's distribution hubs/centers to connect to the platform); Very few asphalted roads making some itineraries impractical during the rainy seasons (Mitigation: the KAYATOM disbution hubs network are responsible for collecting and forwarding of the food products to their destination); Climate Change (Mitigation: the education of farmers to the use of new and more efficient technologies).