BABBAN GONA | Agricultural Company
Babban Gona is an Agribusiness in northern Nigeria that serves farmers in small groups, providing them with financing, high-quality inputs, training and market sales. In combination, these services help maize farmers reduce risk and increase their incomes.
Since it was founded in 2010, it has built a network of more than 81,000 farmers, becoming the largest maize-producing organization in West Africa. Today, its members report net incomes that are twice as high as the national average in Nigeria.
Babban Gona has developed an innovative model that provides farmers with the services and inputs they need to make the most of their crop, focusing on training and advice. Relying heavily on technology, it is permanently monitoring harvests, using business intelligence tools to advise its customers. Babban Gona buys maize directly from these smallholders, storing and selling the crops when the price of the product is higher in the market, sharing the profits with the farmers.
Huruma Fund will support Babban Gona in its expansion process, focused on developing new products, mainly in the poultry business, and penetrating the rest of Nigeria, reaching a total of 15 states (currently present in 6). The replication of the model in other African countries is being studied, currently developing a pilot in Senegal.
Baban Gona has recently implemented an Environmental and Social Management System in line with IFC Standards, pending the application of specific procedures to promote waste management and efficient electricity consumption from renewable sources.
Investment: EUR 5 MM
Investment type: Debt
Technical assistance: Pending
Investment date: Sep 2022