Since 2013, Twiga Foods has simplified the supply chain between food producers and retailers through a B2B e-commerce platform.
The startup has recently launched Twiga Fresh- a subsidiary that will focus on commercial farming. This will enable the B2B e-commerce platform to distribute its own agricultural products to vendors. Twiga says it is already producing onions, watermelons, and tomatoes on a 650-hectare piece of land estimated to produce 150,000 tons of produce per annum.
The company has invested $10 million in the subsidiary backed by debt from development fund institutions according to a tweet by Peter Njojo, the company’s CEO & Co-founder.
Addressing food security
However, the subsidiary will not make Twiga Foods cease working with smallholder farmers in addressing the challenge of food security. For Instance, Twiga has pledged to continue sourcing bananas from supply chains that are more established and efficient. The collaboration with fresh farm producers provides a solution to the unprecedented levels of food inflation across the country.
“We will continue to run the B2B e-commerce business under Twiga, focused on building a one-stop supply-chain solution for informal retailers, delivering both Twiga and non-Twiga owned products. Twiga Fresh, in addition to our growing range of private label products, will ensure we drive growth in customer numbers and broaden the basket size by offering quality produce at a discount against prevailing market prices,” said Peter Njonjo, CEO and Co-Founder of Twiga.
The company CEO says, “In Africa, we can least afford this disruption, and that is why we are excited about the imminent impact our technology-enabled supply chain will have in reducing the cost of food.”
Twiga will sample one million kilograms of fresh produce to customers under their 21-day promotion by the name of “Bidhaa Freshi na Safi”, which commences on May 23, 2022.