Economic Development in Rural Community
Impact Investment Fund transforms local business and community
In March 2023, in the wake of a devastating cyclone, Carl trekked out to his rural farmland through washed-out roads, standing water and fallen trees. What he saw filled him with hopelessness.
“I had a good business before the cyclone, but it was completely destroyed,” he said. I felt despair, and I was sure I would give up.”
Before the cyclone, Carl worked with 72 local farmers to grow and harvest cassava, alongside a few other staple crops, and sell them in bulk to distributors and exporters. He managed a successful small business, but often felt like he and his community of farmers weren’t maximizing their yields or profits. Cyclones took their annual toll, harvests were sporadic and inefficient, roads were impassable, crop storage was nonexistent, and the local community suffered from such abject poverty that many of the farmers were simply too hungry to work.
After the cyclone, Carl felt sure his business was finished. But when FIOVANA agents reached out to discuss an opportunity with the Impact Investment Fund (IIF), he felt a glimmer of hope.
“I told them about my challenges,” Carl said. “My farmlands were 90% destroyed by the cyclone. They told me about their goals to maintain sustainability even after the project ends.”
Together, Carl and FIOVANA developed a business plan with two primary goals: to create permanent food access for hungry farmers and their families and to create a continuous cash flow through the promotion of a resilient cash crop. The success of these two objectives would create a feedback loop of more food and money in a community desperate for both, which would then enable the development of more land and employment opportunities for more farmers.
Within one year, Carl’s business and the entire local community have experienced complete transformation.
“I thank FIOVANA because it arrived at the perfect time,” Carl said.
“Because the project supported me, I am able to support the community.”
Thanks to the Impact Investment Fund, Carl now manages two warehouses, utilizes an improved road network, and works with 230 farmers, 130 of whom have been trained by FIOVANA to implement improved techniques.
Crucially, they have diversified their crop rotation for increased resiliency: in addition to their staple crop, cassava, they have also started farming peppercorns, coffee, and cloves, the best harvests of which are exported to Europe for a high price.
Because his business has expanded, the entire network of farmers has expanded. Before, Carl struggled to find skilled farmers, and the resources to pay them. Today, those obstacles are nonexistent. Because the crops are so profitable, there is more money to pay the farmers. And because FIOVANA implemented the Farmer Field School (FFS) in this community, there is more talent.
“My motivation to hire more farmers is that they were already skilled because of their training through FIOVANA,” Carl said. “The expansion of the business is directly linked to FIOVANA.”
Begys is president of the local FFS and one of the farmers who works with Carl to sell their harvests in bulk. He has observed the transformation.
“Before, our production was so low, we didn’t even have enough to eat before, let alone to sell,” he said. “Now we can sell our crops in bulk and generate more income during the periods of harvest. Our production has improved, our diets have diversified, we eat more regularly, and we can save money for the first time in our lives.”
Gone are the days of eating one small meal per day, foraging for wild tubers during the long months of drought, and missing work due to malnutrition and starvation. Today, Begys, his family and his entire community of farmers are eating regular meals, using their new income to send their children to school, and developing their community together.
“Before, we were not motivated to work because we were hungry and weak,” Begys said. “Thanks to this partnership, we got support and now we are developing alongside the farm.”
