Farm Pond

Mudug, Somalia

This farm pond will be used to harvest rainwater to provide drinking water for nomads and their animals.


Farm pond size: 5.000 m3

Capacity: 5 million liters

Price cubic metre (m3): $ 5

Minimum investment: 50 m3

Estimated annual ROI: 20%

Next revenue report: 2020-07-01

About this project

The farm ponds will be used to harvest rainwater during spring and autumn. This farm pond will provide water to nomads and their animals in this region. They need affordable water during dry seasons for their animals and families. This project will consist of one farm pond of 5000m3 with a capacity to hold up to 5 million liters. We are building this pond about 100km from the city of Galkacyo in Mudug, central Somalia. We have decided to build this project in this remote location due to the scarcity of water in this area and the high cost of delivering water to this area. People and animals die here every year due to lack of water. We hope this project will help.

Rainfall in this region

Of all the standard climatic parameters, rainfall is the most variable in time and space in Somalia. The amount of rainfall received across the country can vary dramatically from year to year. This data from the UN World Food Program (WFP) shows rainfall amounts for last year and for the long term average (20 years) in grey.

Weather forecast

Current weather conditions and 7 day forecast for Galkacyo, Somalia which is the nearest city.

GALKACYO WEATHER

Investing in farm ponds

We are raising the funds to build this farm pond. Users who have invested in the farm ponds will get a share of the revenues from the water. Investors can invest in a minimum of 50m3. Your share of the revenues will be calculated based on how much percentage you have invested in the pond. The investment price for this farm pond is $ 5 per cubic meter. After every rainfall, we will report how much water has been collected in the ponds. Investors will get $ 1.5 per 1000 liters of water stored in the farm ponds. Revenues will be distributed every 6 months until the investor has recouped their investment back plus a profit of 60%.

If it rains in both the spring and autumn seasons, we estimate that the farm ponds will be 100% full in both seasons and could generate a revenue of $15000 per year for the investors. Based on these numbers, we estimate the investors will get their money back and with a 60% total profit in 2.5-3 years. It is important to note that these are just estimates and results are dependent on rainfall which can be variable.

Example investment in farm ponds

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

Invested Share Payback A. ROI
$ 250
(50m3)
1 % $ 400 20 %
$ 500
(100m3)
2 % $ 800 20 %
$ 2 500
(500m3)
10 % $ 4000 20 %
$ 5000
(1000m3)
20 % $ 8 000 20 %
$ 12 500
(2500m3)
50 % $ 20 000 20 %
$ 25000
(5000m3)
100 % $ 40 000 20 %

Project timeline

This an estimated timeline and may change over time.

Announced Construction First Payment
Nov 2019 Jan 2020 Jul 2020

Local impact

This farm pond will provide drinking water for people and nomads in this remote region in Somalia. It will act as an emergency water reserve for the local community in case of droughts. They will be able to buy water at a low cost for their animals and families. This project will save lives during droughts.

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 unstable. This project will be located at a remote location, however there will be a guard for the pond. There is potential clan conflict in this area.
  • Low or lack of rainfall [medium] In case of low and lack of rainfall, this will have direct impact on the revenues from this project.
  • Theft [low] There is low risk for theft of the water as there will be someone guarding the pond.

Our impact

Creates jobs

Our investment creates jobs and livelihoods for farmers, livestock herders and traders who benefit from our projects and services.

Locally produced food

Our investment inceases local food production from our own projects and microloans for others in the agriculture value chain.

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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