DR Congo La Congolaise Agricole (LCA) providing quality and affordable agricultural products & services in Kinshasa

Already collected € 12.000
Searched budget € 45.000
Origin
Diaspora 2021
Location
Congo, Kinshasa
Theme
Land- & Tuinbouw
Repayment period
1,5 year
Project duration
2021

The company

La Congolaise Agricole (hereafter LCA) is a logistics and commercial unit for agricultural products, made up of 4 motivated and qualified people with various professional skills and experiences. They come from the Congolese diaspora in Belgium who will manage LCA on site. The project is conducted with the support of Véron Nsunda, volunteer with OVO.

LCA's objective is to be a leader and a reference in its field in its target markets through its market share, quality and affordable prices of agricultural products and services to the greatest number of people, and thus to contribute to the improvement of the living conditions of all the people involved along the LCA value chain, and of their families, by ensuring stable, fair, and sustainable incomes
 

The business project

LCA plans to set up a company to supply agricultural products, to package them, to ensure logistics and to market them on the markets of Kinshasa. The company plans to get their agricultural supply from mainly small producers. LCA will initially focus on the MBANZA NGUNGU region to supply the commercial zone I in the west of Kinshasa, and then extend to the BANDUNDU region in the north-east of the capital to supply the commercial zone II in the east of the city.

The producers will be brought together in a cooperative that will be set up 3 to 6 months after the start of LCA, i.e., after the first producers have been selected. This cooperative will be structured in sections corresponding to the villages where the producers are located. The producers will be associated with the cooperative through a minimum contribution, which may be in kind (a quantity of products).
 

 

Why OVO believes in this project

The market for agricultural products is covered by two types of suppliers:

  • The large producers of agricultural products who have their own logistics and commercial network on the markets of Kinshasa. They represent a market share of 40%.
  • Small traders, who operate with small producers with hired transport, who generally buy products on credit and have unreliable logistics. They generally sell to small retailers. They represent a market share of around 60%.

LCA is positioned as an alternative to the small retailers who will be their main competitors. The aim is to cover around 35-40% of the market, thus halving the market share of their target competitors, by making producers and retailers more reliable through its value proposition and proximity to them.

Also, The LCA team, from the diaspora, is motivated and structured, and has perfectly adapted its offer to this unmet need in Kinshasa. LCA's approach is professional, with a good understanding of the local context, thanks in particular to an in-depth "in site" study by LCA members, to which local expertise at the agronomic, operational, and commercial levels contributed from the outset and which will join LCA from the start (guaranteeing a rapid start).


Requested investment

LCA is requesting for an OVO loan of 45 k€, to quickly purchase the means of transport i.e., 2 Trucks (costing 38k USD) and one (1) 4x4 vehicle (costing 11k USD) essential to the start-up of the activity in order to immediately ensure the targeted quality of service.

OVO facilitates a loan of 45 K€ at 7% repayable in 3 semesters of € 15,000.

 

Keywords :

  • Agriculture products
  • Smallholder farmers,
  • Quality products & services
  • Logistics & commercial unit
 

SDG's: 1,2,8