Greenhouse Farm

Bandar Qaali, Somalia

This farm will produce basic vegetables such as tomatoes which will be sold in the local markets in Mudug region.


Farm size in sqm: 644 m2

Minimum investment: 20 m2

Price meter square: $ 10

Expected employees: 2-4

Estimated annual ROI: 20%

Next harvest report: 2019-09-12

About the farm

We have built the first pilot greenhouse farm near the village of Bandar Qaali in Mudug, Somalia. We chose to setup the pilot greenhouse farm here due to lack of locally produced food in this region. We have also access to water and land here. The farm will produce basic vegetables such as tomatoes which will be sold in the local market. The greenhouse is fitted with drip irrigation system. The total size of this greenhouse farm is 644m2.

Investing in greenhouse farms

You can invest in the food we are growing in this greenhouse and will be eligible to get a share of the revenues from the harvest. Investors can invest in a minimum of 20m2. Your share of the revenues will be calculated based on how much percentage you have invested in the greenhouse. The investment price for this pilot greenhouse is $ 10 per square meter. After paying all the costs related to the farm operations, investors will get 70% of the net revenues from the farm and 30% will go to Agrikaab. Revenues from the harvest will be distributed every 6 months until the investor has recouped at least 60% return on investment. You can withdraw or re-invest your earnings at any time.

Our current estimates indicate that this greenhouse farm could produce around 3500kg per harvest. The local price for tomatoes in the region where the farm is located is between $0.8-1.5 per kg. Two people will work full-time at the farm and two others will be hired during the harvest. We estimate the operational costs will be around $1400 per harvest. Based on these numbers, we estimate the greenhouse farm could generate a net revenue of around $2100 per harvest of which 70% will go to the investors. It is important to note that these are just estimates and we can only provide real data after the first harvest.

Example investment in greenhouse farm

This is an estimate of potential return on investment on a 3.5 year period.

Invested Share Payback A. ROI
$ 200 1.9 % $ 319 20 %
$ 1000 15.55 % $ 1600 20 %
$ 1610 25 % $ 2572 20 %
$ 3220 50 % $ 5144 20 %
$ 6440 100 % $ 10288 20 %

Local impact

This farm creates jobs for a local team of 4 people who are responsible for taking care of the farming operation. They will grow the vegetables, sell the produce and maintain the farm. The harvest will also create seasonal jobs for local vegetables traders. Most importantly, the farm will provide accessible and affordable locally produced food for the community. This region does not grow much food today so this farm will introduce new ways of farming and provide inspiration to other farmers.

Risk assessment

Every investment carries risk and investment with Agrikaab is no different but we try to be transparent and do our best to minimize the risks. These are the potential risk with this project

  • Security [medium] The security situation in this area is good. We have a team at the farm at all times. There is potential clan conflict around federal state borders which is about 50km from this location.
  • Failed harvests [medium] There is a risk for failed harvests, specially during the early harvests. We are hiring experienced agronomists to optimise the productivity of the farm.
  • Water cost [high] The cost of water is too high. We are working to build farm ponds to harvest rain water to reduce water costs.
  • Disease [medium] There is always risk for diseases but we have the necessary treatments, pesticides and fertilizers.
  • Theft [low] There is low risk for theft of the produce.

Pictures from the farm

People who work here

Our impact

Creates jobs

Our local operation creates jobs for former nomads who work at our farms. They take care of the farms, buy and sell products.

Locally produced food

We are producing locally produced food which are distributed in the local market. We sell organic milk and vegetables at affordable prices.

Supports the local economy

Agriculture is over 75% of Somalia’s economy (GDP). We are bringing global investment to this vital industry for the local economy.

Our global investors

Our investors come from all continents from more than 50 countries

Somalia Kenya Sweden USA Germany Canada Denmark Finland France Spain Portugal Italy Czech Republic Slovakia Slovenia Estonia United Kingdom Netherlands Ireland Australia New Zealand Singapore Malaysia Mauritius Uganda South Africa United Arab Emirates Saudi Arabia Bahrain China Japan South Korea Argentina Brazil Poland Croatia Turkey Hungary Uruguay Malta India Luxembourg

Recognition

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