Day 5: Investments, scale-ups...and Hawaiian beach parties!

Today I am discussing scale-up challenges with Ignitia. Like many other start-ups I work with, Ignitia’s CEO is facing a common investment dilemma. She needs capital for her company but investors are still reluctant to come on board at this early commercial stage. Without capital though, it is impossible to scale-up.

There are, of course, investors that understand that addressing BoP markets means revenue growth is more often slower than if Ignitia had first addressed, for example, the mining industry. But to find those investors takes time, and selling to customers takes time. It is nearly impossible to do both at the simultaneously.

"Explaining our business model to investors takes time. They are generally very sceptical of sales to farmers. But I KNOW it is a good business case in the end!" Liisa exclaims. One of her clients would agree. Input supplier Wienco is expanding to neighbouring countries and Managing Director Mark Kok seems very pleased with the money that they are making. He has lived and worked in Ghana for nearly 20 years now.

It is time to say goodbye and for our last night we are invited to a birthday party with a Hawaiian theme; a small beach with surfboards has been built up in the middle of a terrace and people are dressed up in Ghanaian versions of Hawaiian shirts and dresses. We meet many other people working in agriculture development. It seems to be a tight-knit community here in Tamale.

This is the first blog in IAP's new travel journal series, in which team members Ruth Brannvall and Mårten Genfors share insights, blogs and lessons learned from visiting inclusive businesses in Ghana, Kenya and Zambia.

Photo Credit: Andy Beal Photography via Compfight cc