MALI – Mali Shi, a Malian agro-processor in partnership with Yolélé, a purpose-driven African food company based in the United States, have received a co-investment grant of US$1.9 million from the USAID West Africa Trade & Investment Hub (Trade Hub) through Prosper Africa.
The investment is aimed to establish a direct trade of fonio between the United States and Mali.
Fonio is a West African staple grain packed with numerous nutrients and health benefits. It is naturally gluten free, high in B vitamins, and low in cholesterol, sodium, and fat.
In addition, its low glycemic index makes it an appropriate carbohydrate for people living with diabetes, a growing population in West Africa, according to the World Health Organization.
Nevertheless, fonio is considered a neglected and underutilized crop species.
The Trade Hub’s partnership and project with Mali Shi and Yolélé seeks to change the narrative by establishing a new West African global value chain for fonio, with Mali, the eighth largest country in Africa, as the epicenter.
The project aims to establish the United States as the #1 market for fonio and result in 2,400 metric tons per year of new exports by the end of the 2.5-year project, with a value of more than US$5 million.
The project will also create 13,714 agricultural jobs in Mali, and $4.5 million in collective smallholder sales.
“The market potential for fonio and related products remains largely untapped in the United States,” said chef and cookbook author Pierre Thiam, co-founder of Yolélé.
“Fonio falls within the latest positive trends of superfoods, ancient/heritage grains, and gluten-free products.
“Beyond its nutritional and culinary benefits, it cooks in just five minutes! Fonio also yields significant opportunities to generate jobs and income in West Africa, particularly amongst women,” he added.
With the Trade Hub grant, Mali Shi, the agro-processor and lead company in the project, hopes to leverage, together with Yolélé, an additional US$11.6 million from private sources to organize a fonio supply chain that meets international best practices.
The project will include U.S. market development and promotion, supply chain development, and the establishment of a new processing center, West African Ancient Grains.
“One of the most positive impacts of this project is providing multiple sources of income for the farmers in our growing network, which already counts more than 23 000 shea collectors/farmers.
“It makes financial sense for farmers to engage in sustainable, biodiverse, multi-crop rotations only if they have customers for their harvests.
“West African Ancient Grains is that customer, an element that has been missing for smallholder in the Sahel,” said Simballa Sylla, the CEO of Mali Shi.
The Trade Hub’s co-investment partnership with Mali Shi and Yolélé marks its first in Mali.
However, it is its second investment in the fonio value chain as in October the hub granted Guinea food processing and packaging company, La Petite Damba, with US$258,000 co-investment grant.
The investment is aimed to fulfill the company’s objectives of scaling up and automating its fonio processing, as well as increasing its storage capacity in the rural Fouta Djallon region of Guinea.
“Mali is ripe with opportunities to support economic growth through private investment, create long-term jobs for smallholder farmers, and increase exports of products such as fonio to the United States.
“I expect our project with Mali Shi/ Yolélé will prove this and encourage more investment into Mali’s high-potential businesses,” said Frantz Tavares, Public Private Partnership Manager for the Trade Hub.
The success of the project will be key to Yolélé earning US$10 million in sales by the end of the project, driven by expanded distribution for its snacks as well as other fonio-based products in retail, foodservice, and industrial channels.
At the conclusion of the project, Mali Shi/ Yolélé’s partnering smallholder farmers will be earning a sustainable income from fonio sales to supplement their other farming activities, increasing the family’s cash income by an estimated 85 percent and their overall income by 32 percent.