An innovative agricultural franchise model, Babban Gona (which means ‘great farm’ in Hausa), supported by DFID Nigeria’s rural markets programme, has successfully received a $4 million investment from the Gates Foundation.
The Babban Gona business model
The investment from the Gates Foundation builds upon the successful Raise Out of Poverty (ROPO) Bond, launched by Babban Gona in 2012, and in which DFID Nigeria was an anchor investor through its rural markets programme, Propcom Mai-karfi.
The growth of the ROPO Bond enabled the Babban Gona franchise to successfully expand at a scale of 30 times in two years, and attract significant additional funding from multiple social and commercial investors.
Babban Gona is in final discussions with additional investors and expects to close a second round of funding taking the total amount raised to $5 million, an amount equivalent to ten times the amount originally invested by us.
About the agricultural franchise
Babban Gona, developed by Doreo Partners, inspires and enables hardworking small holder farmers reach their full potential. This is accomplished by providing a sustainable, private sector channel for cost effective delivery of enhanced agricultural technologies, credit and services that optimise yields and labour productivity, while simultaneously improving market access.
Babban Gona members’ yields are two to three times higher than the national average and they attain net incomes that are three to eight times higher than the national average.
With continued investment from our partners including the Gates Foundation, Babban Gona expects to enable one million small holder farmers lift themselves out of poverty by 2025.
Investment promotion plan by DFID Nigeria
DFID Nigeria has recently developed a plan to promote private sector’s and development financial institutions’ investment opportunities created by its market development programmes like Propcom Mai-karfi. DFID Nigeria is also coordinating this work closely with Foreign and Commonwealth Office, UK Trade and Investments and British Council as part of One HMG prosperity network in Nigeria.
Written by Yawar Naeem – Private Sector Adviser, DFID Nigeria
July 28, 2015