Country: Benin
Sector: Organic Agricultural Inputs
Investment: Machinery & equipment
- Investment by Kampani: EUR 500k (for 7 years)
- Investment type: Subordinated loan
- Disbursement: May 2023
THE BUSINESS
Bio Phyto is a company based in Benin that produces and commercialises organic fertilisers and pesticides. It is located in Allada Togoudo, which is 50km north of Cotonou and 90km from Porto Novo. Currently, the company employs 52 people and sources its raw material from over 2.000 smallholder farmers, mainly women living in Benin’s rural areas. In 2021, Bio Phyto sold its products to some 200.000 clients-farmers. Bio Phyto’s organic inputs are specifically designed to increase the yields of all crops (food crops, fruit crops, vegetables, etc.).
Bio Phyto has received several awards in terms of innovation, social impact, and entrepreneurship from international organisations/ institutions such as the World Bank.
Partner organisation
The company was first introduced to Kampani by the Enabel team in Benin, which has played a crucial role in sealing this deal.
Enabel, through the program DEFIA, aims to significantly increase the income of 6,000 agricultural entrepreneurs in the pineapple sector in Benin. To achieve this objective, its actions focus on strengthening business links between actors and suppliers, building the capacities of actors and developing services. It is within this framework that Enabel has been accompanying Bio Phyto since 2019.
Moussa Nassirou, who is responsible for financing mechanisms for Enabel Benin highlighted: “We are proud to have contributed to the success of this operation. This financing will strengthen the value chain and contribute to the emergence of a more sustainable agriculture. It is the culmination of a long process of accompaniment of the company by the Enabel team. We are committed to ensure this collaboration bears fruits!”
THE INVESTMENT
Kampani’s capital investment includes machinery and equipment that will be used to improve Bio Phyto’s logistics, perform laboratory analysis and increase production capacity. Most importantly, Bio Phyto would like to acquire a production line to double its current capacity, as well as additional trucks and tractors. With this new equipment, the company should be able to significantly increase its turnover and establish its position as a benchmark player in Benin’s Organic inputs sector.
THE SOCIAL IMPACT
The company currently serves 200.000 smallholder farmers and sources raw material from over 2.000 farmers, mainly rural women and youth, who collect neem seeds (main raw material) and aromatic herbs for production. For the 1920 women who supply Bio Phyto, this partnership with the company is often their only source of cash income. This activity can generate, on average, an income of 600 EUR per year. This is significant in Benin as the official minimum wage for employees is 950 EUR per year and GDP per capita is around 1.300 EUR. But the social impact is not only visible at the suppliers’ level, but also on the customer side. The company currently sells its products to some 200.000 producers, enabling substantial crop yield. The use of these inputs enable these small producers to be effective and their price to be competitive with similar conventional products. Importantly, making use of or switching to organic products has important health benefits for the producer, the consumer and the local ecosystems. In that sense, Bio Phyto is a pioneer. It started producing organic inputs for the pineapple and rice market back in 2014, addressing a largely unsatisfied demand in Benin. With Kampani’s investment, BioPhyto hopes to further grow its activities and in the medium term, tap into new markets with its high-quality products.
