August 3, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Through its $150 million uMunthu II fund, Goodwill Investment’s goal is to finance innovative, impact-driven and scalable early-stage small and medium-sized African businesses as it fosters inclusive growth in emerging markets. 

The fund’s latest partnership is through an investment in Rwanda-based SOUK Farms, a leading grower and exporter of fresh horticultural produce that has been a key player in the country’s socioeconomic evolution through its well-established ability to create positive impact in local agricultural supply chains. 

The agriculture industry in Rwanda has experienced notable progress in recent years, contributing significantly to the country’s economic growth and efforts to reduce poverty. Agriculture employs over 70 percent of the population and accounted for 27 percent of the country’s total GDP in 2022, with agricultural export revenues soaring by 45 percent in one year, jumping from $543.1 million in 2021 to $788.7 million in 2022, according to a report issued by the country’s National Agricultural Export Development Board (NAEB).

Digging down, the report stated how the value of horticulture exports, ie. vegetables, fruits, and flowers, increased from $32.7 million in 2021 to $53.9 million in 2022 – a year-on-year jump of 64.7 percent.

And, as the country is targeting agricultural export revenues of $1 billion by the end of 2024, SOUK Farms is positioned to be a leader in the industry. 

Founded in 2019, SOUK Farms has already established a solid position for itself in Rwanda’s agricultural landscape. Through a distinctive blend of innovation and an unwavering commitment to increasing the resilience of local farms against climate change, SOUK Farms is building its own farming operations while also working with a broad network of outgrowers to cultivate and export high-quality exotic horticultural produce – serving both domestic and international consumers. 

This investment will provide SOUK Farms with a solid foundation from which to achieve their ambitions and scale their sustainable agriculture business, enabling the company to create resilient systems and value chains that benefit local farmers and their surrounding communities. 

“The opportunities to create sustainable agricultural practices and improve existing ones in Rwanda are great,” said Seun Rasheed, founder and CEO, SOUK Farms. “Our partnership with Goodwell will drive a huge impact not only for the growth of SOUK Farms but also for the farmers and the communities we work as we continue to offer solutions that improve incomes and create employment while also implementing education and outreach programs for youth and women.”

Currently, 71 percent of SOUK Farms’ workforce is women, aligning with the Rwandan government’s national Agricultural policy promoting gender equality at all phases of the value chain. The company also works closely with 1,200 farmers across the country, enabling farmers to earn upwards of 300 percent more than what they did prior to being SOUK outgrowers – two factors that Goodwell noted reflect how the company’s solid business model and impact efforts are an ideal fit with its agricultural investment strategy, which is to improve value chains, reduce post-harvest losses, and create better livelihoods for smallholder farmers. 

“Under the experienced leadership of Seun Rasheed, SOUK Farms has a clear vision for expanding their impact and productivity in a sector with ever-increasing demand,” said Judith Ngonyo, investment manager, Goodwell Investments.  

“We are proud to support the company in this exciting stage of their business growth, and look forward to seeing how they continue to innovate in the agricultural space. With this investment, we are also pleased to mark our entry into the Rwandan market, further expanding Goodwell’s presence in East Africa.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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