Agrikaab Store

Mogadishu, Somalia

The Agrikaab Stores will be one-stop-shop for agricultural supplies, products, tools and small equipment for farmers in Somalia.


Store size: 300 m2

Minimum investment: $ 300

Funding target: $ 120 000

Expected employees: 2-8

Estimated annual ROI: 20%

Introduction

One of the biggest challenges facing farmers in Somalia is finding agricultural supplies. The Agrikaab Stores will be one-stop-shop for agricultural supplies, products, tools and small equipment for farmers. They will be able to buy seeds, fertilizers, livestock feed, greenhouse construction materials, and other agriculture related products to increase the productivity of existing farms or start a new one. The products will be imported globally. Like the rest of our projects, the stores will be investable on the platform and will contribute to the development of the agriculture sector in Somalia. We are planning to open this store in Mogadishu in August/September 2019.

Investing in the stores

We are crowdfunding the initial capital to buy inventory for the stores. As an investor you will get a share of the profits the store generates. Every quarter we will report how much revenues have been made. Investors will get 70% of the net profit from the stores after we pay the operating costs and inventory. Investment period will run until the investor has received their money back with 60% profit.

We are raising $ 120 000 to buy inventory for this store. We estimate the store can make a profit margin of between 30-100% from the products. The operating costs are expected to be around 5-10% of the store revenues per quarter. When fully operational we estimate this store to generate a gross revenue of around $ 48 000 per quarter. After paying the operating costs and inventory. We estimate the store can make a net profit of $ 22 800 per quarter. The investors will get 70% of the net profit which will be $ 15 960 per quarter or $ 63 840 per year. Based on this estimate the investors could get their money back with a 60% profit in about 3 years. Payments will be made on quarterly basis.

Example investment in stores

This is an estimate of potential return on investment on a 3 year period.

Invested Share Payback A. ROI
$ 300 0.25 % $ 479 20 %
$ 1 200 1 % $ 1 915 20 %
$ 6 000 5 % $ 9 576 20 %
$ 12 000 10 % $ 19 152 20 %
$ 60 000 50 % $ 95 760 20 %
$ 120 000 100 % $ 191 520 20 %

Project timeline

This an estimated timeline and may change over time.

Announced Opening First Payment
May 2019 Jan 2020 Apr 2020

Local impact

This project will contribute to the development of agriculture in Somalia by bringing much-needed supplies, products, tools and equipment for farmers and create jobs for employees who will work at the store. It will boost the productivity of local farmers and inspire new people to become farmers by making it easy to find everything they need for the profession. We expect up to 8 people to work at this project when it is fully running.

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 Mogadishu is unstable with potential disruptions to business but we will try to set up this store in one of the more secure areas.
  • Logistics problems [medium] There could be issues with the transport of goods both shipping to Somalia and moving products within in the country. This problem could be mainly delays.
  • Climate-related problems [medium] Since the main customers will be farmers, it is possible climate events such as droughts or floods could impact the sales. But it is also possible it could have a positive impact on the sales of some products such as livestock feed.
  • Excess inventory [medium] There could be a risk of excess inventory due to a variety of factors. We will try to source products that are in demand in the country to minimize this risk.

Terms of investment

By investing in this project, you agree to the following terms of investment as well as the general terms of service available here.

  • Investors will be eligible to receive 70% of the net profits from the project until they recoup their money back plus 60% profit.
  • After the investors have received their money back with a 60% profit, the investment will end. Investors can re-invest their earnings or withdraw.
  • Investors are entitled to receive quarterly revenue reports from the project.
  • The operating expenses will be covered by the revenues from the store.
  • Payments from this project will be made on a quarterly basis.
Frequently Asked Questions

Why are the stores necessary?

There is no reliable source of agricultural supplies in Somalia today. Farmers struggle to find supplies for their farms. We want to address this issue by opening a one-stop-shop for farming supplies where farmers can get everything they need to boost the productivity of their farms.

Where will you buy the inventory from?

We will source inventory from different countries. Many of it from China, Turkey where we buy our current supplies.

What kind of products will the stores sell?

There will be a variety of farming supplies, seeds, fertilizers, pesticides, livestock feed, construction materials, tools and small equipment that farmers need.

Are the stores insured?

Unfortunately, there is no reliable insurance in Somalia at this time.

How does the store investment work?

We are crowdfunding the capital to buy the inventory. The investors own the inventory and will receive a share of the revenues from the store. Every 3 months, we will pay 70% of the net profit from the store to the investors until they get their money back with a 60% profit.

Why should I invest in the stores?

The stores will solve a big problem for farmers in Somalia who struggle to find agricultural supplies. They will contribute to the development and productivity of the local agriculture and economy. You will also make money by getting a share of profits that the store generates.

What is the minimum investment?

The minimum investment is $ 300. Which is equal to 0.25% of the store inventory cost.

Do you plan to open more than one store?

Yes. We are opening the first store in Mogadishu. We plan to more stores across the country.

Can I re-invest my earnings?

Yes, you can always re-invest or withdraw your earnings after every quarter.

What if the inventory does not sell?

We will mainly buy inventory that is needed in the country and we believe it will sell well as there are no many suppliers today. However, this is a risk that is part of the project.

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 Romania

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