SHONA, Biovision launch fund to support agroecological enterprises in Uganda, Kenya

SHONA, an East African business development support organisation, together with Biovision, a Swiss-based foundation, have launched a fund to support agroecological enterprises in Uganda and Kenya.

The Neycha Accelerator & Fund (Neycha), will provide agroecological enterprises with capacity, capital, and connections they need to grow their impact and businesses.  Neycha is looking to advance food system innovators and entrepreneurs who are working toward a more regenerative and agroecological food production and contributing to a more holistic and circular agrifood economy in Uganda and Kenya.

Fabio Leippert, Co-Lead Policy and Advocacy at Biovision Foundation, said the fund seeks to create fair and sustainable food systems in East Africa in light of the current climate change threat.

“Based on our extensive research, the Neycha Accelerator and Fund is designed to address what AEEs in Kenya and Uganda need most to grow and scale their impact: access to capacity building and suitable finance. Together, the AEEs will be able to contribute to the transformation of food systems – create new jobs and resilient communities, regenerate soils, and create fair and sustainable food systems for everyone and in harmony with nature,” Leippert said in a statement issued on Thursday, June 15, 2023.

Joachim Ewechu, SHONA CEO, said the fund brings unique benefits.

“The Neycha Accelerator & Fund’s model is unique; by combining capacity building with capital, the agroecological enterprises we partner with will be able to implement their learning during the program and not wait a long time to get the capital they need to do this,” he said.

 “Growth-oriented agroecological enterprises will be able to refinance multiple times, and we will support them to raise additional external investment beyond what we are providing. By supporting the success of agroecological enterprises and showcasing successful business models, we hope to increase the flow of capital into agroecological enterprises in East Africa,” he added. 

To qualify for the Neycha Accelerator and Fund, agroecological enterprises will need to be a fully registered as operating in Uganda or Kenya for profit, and be at least 3 years old and past the pilot stage with an existing customer base and sales generating at least USD 40,000 in annual revenue.

“The enterprises must also have a clear market opportunity and strong value proposition matching this opportunity – its okay if this is not fully and clearly outlined. What we care about is a viable business model. Be profitable or have a clear path to profitability with a viable business model. Have at least 3 years audited books or 24 months management accounts,” the statement adds.

The companies must have a clear 2-3 year growth plan, which does not need to be fully and clearly outlined, and must be interested in building their capacity and attracting capital to achieve their growth plan.

“Through The Neycha Accelerator & Fund, we plan to work with at least 20 agroecological enterprises in a year and make at least 12 investments a year in qualifying agroecological enterprises in Uganda and Kenya,” remarked Ewechu.

Agroecology is a sustainable and social approach to agriculture that promotes the production of healthy and nutritious food while regenerating soil fertility, improving biodiversity (animals, plants, and microorganisms), and strengthening the livelihood of farmers and their communities. 

“The Neycha Accelerator & Fund’s model is unique; by combining capacity building with capital, the agroecological enterprises we partner with will be able to implement their learning during the program and not wait a long time to get the capital they need to do this,”

Joachim Ewechu, SHONA CEO

Agroecological enterprises are businesses operating across the entire agricultural value chain.

Successful agroecological enterprises have several benefits, some of which are improved wellbeing due to increased access to safe, healthy, and nutritious locally adapted food and generating local wealth due to more jobs, increased incomes, increased financial returns, and higher tax revenue, among others.. 

Biovision is a Swiss-based foundation for ecological development. Since 1998, Biovision Foundation has been promoting the development, dissemination, and application of sustainable ecological agricultural practices, with a special focus on East Africa. Biovision is supporting the set up and capacity building activities of the Neycha Accelerator & Fund.

SHONA is an East African business development support organisation that exists to transform East Africa’s economies and societies by building a thriving African private sector driven by Good* Businesses. Since 2013, SHONA  has supported the growth of more than 450 businesses in East Africa.

SHONA Capital will be managing the fund of The Neycha Accelerator and Fund. SHONA Capital provides local SMEs with affordable and flexible loans to help them grow and achieve their full potential.