Create social impact investing online or Staking for our farmers
How do we manage risk?
Agriculture investments come with inherent risks. To ensure profitability, conventional wisdom dictates diversification over the long term and avoiding speculation and undue risks.
Small-scale farmers confront and tackle these risks on a daily basis. However, Wakama actively takes part in mitigating these challenges through rigorous selection, audits, and implementing protective measures and insurance options. This not only safeguards the interests of investors but also provides a safety net for the farmers involved.
We are convinced that the vast majority of small farmers need financing to develop their activities and increase their yields.
In order to protect them from various risks (financial management, agricultural technical management, land disputes of their farms…) and to ensure a return on investment for them and our community, we have implemented several layers of verification:
Preselection
Our Regional Auditors establish a first selection of farmers, following strict criteria and a centralized questionnaire and on-site observations.
ARES Selection
An in-house validation committee composed of agronomists, a consultant in agricultural risks and insurance and other skills, study the loan applications using our Framework
Oracle Risk Evaluation System (ORES)
ARES validation
Oracle Risk Evaluation System (ORES) produces a detailed report with a risk indicator to validate or not a loan application
Financing by tranche (input)
The financing takes the form of inputs, seeds, fertilizers, machinery and services, in several tranches validated by KPIs.
Market supply and demand for high-value crops, make prices sometimes volatile and can drop and soar at different times. Wakama opts for crop diversification as well as the grouping of different farmers to better distribute the risks.
Targeted agricultural varieties
Our Regional Auditors establish a first selection of farmers, following strict criteria and a centralized questionnaire and on-site observations.
Targeted agricultural varieties
Our Regional Auditors establish a first selection of farmers, following strict criteria and a centralized questionnaire and on-site observations.
Focus on bull food market
Thanks to our preliminary studies of the market as well as the local macro and micro-economic study, we manage to provide enough reliable data to the artificial intelligence A.I, in order to develop forecasts on the next periods of price rise and shortage, these studies allow us to better place our offers on the local and international market and ensure a good profit for our investors.
Small farmers have very limited or non-existent capital and modern farming practices.
With the financial and technical support (AI/ Smart farming -multispectral drones) of our teams of agronomists, pests can be avoided and treated very early in case of problems.
A.I & Smart Farming
Precision agriculture, Inventory, zone health history, Periodic drone control / IOT, AI reporting and monitoring
Geographic targeting Crop rotation
Crop rotation reduces the presence of pests that feed on specific plants, it can also help improve soil health and reduce dependence on plant protection products.
Agriculture in Africa is particularly vulnerable to weather risks due to its high dependence on climatic conditions.
Harvest
reserve
Wakama has its own farms (77ha), which serve both as a crop and a test of new agricultural and livestock varieties, as well as the cultivation of the same agricultural varieties published on WAKAMA, given that these are well chosen varieties according to the history of FAO and a market study by our teams and with the help of AI.
The profit margin remains very important since we grow varieties that are lacking on the local market (example: onion read the agenceecofin.com post ), which allows Wakama to have a large stock for wholesale, export or agricultural industrial processing.
Part of our stocks (between 5 and 15%) can be used as a guarantee fund and compensation to reduce the risks incurred by farmers, investors and also Wakama.
Agricultural
insurance
We negotiated with several banks offering agricultural insurance products in order to find the best formulas for insuring Wakama agricultural projects.