Kenyan-based technology food distribution platform, Twiga Foods, has officially launched its new Distribution Center, located at Tatu City in Ruiru, Kiambu County, Kenya.
The facility’s opening is consistent with the company’s primary goals of upgrading the food supply and revamping African retail.
His Excellency Hon. Dr. William Ruto, President of the Republic of Kenya, gave a Ksh300 million (US$2.45 million) loan to Twiga Foods’ suppliers and customers to officially open the facility.
Lower borrowing rates will be offered by the finance, which has a target customer base of 140,000, to help the recipients expand their enterprises.
The agri-tech company, which serves roughly 33,000 vendors each month, employs technology to consolidate demand and simplify logistics in the sale of farm products.
The company has raised millions of dollars from foreign investors since its creation in 2014, including equity and loan arrangements, to drive its growth both geographically and operationally.
The company invested $10 million earlier this year to grow its private label division through the establishment of Twiga Fresh, a new subsidiary.
One of the largest single horticulture farms in Africa, the new division focuses on modern and commercial production of local horticultural staples including onions, tomatoes, and watermelons for the home market.
To do this, the B2B e-commerce food distribution platform will engage in farming and supply traders with its own farm products.
It is estimated that 150,000 tons of fresh vegetables are produced annually on a 650-hectare (1,606-acre) tract of land.
Twiga projects a better control of the value chain with Twiga Fresh and its other private label products, including its rice branded SokoYetu Rice.
The food distributor, which is still driving its expansion, started operating in Uganda, marking its official first pan-African expansion drive into the continent’s online retail industry.
In order to maintain its resilience while continuing to provide the market options for inclusive growth, the company has also adopted an independent sales agent model.
The company’s old Trade Development Representatives (TDRs) would switch from being permanent employees to independent brokers earning 100% commission under the new model.
“This transition creates an opportunity for entrepreneurship open to former sales agents and the general public.
“The benefit of this transition is that it allows for higher earnings based on the effort and enterprise of the agent,” highlights Twiga Foods.
In Kenya, the approach has been successful with businesses that have entirely converted to Independent Agents, such as insurance and banking.
