IDH Farmfit

Ikanga Tea Factory, Tanzania

Download

Ikanga Tea Company Limited (Ikanga) is located in Southern highlands of Tanzania in Njombe region. The Company is a subsidiary company of the DL Group, who purchased it from Rift Valley Corporation in 2017. Its primary operations is processing of green leaf into made tea.

It currently sources 100% of green leaf from smallholder farmers spread across 20 villages in Lupembe ward with a total area of planted tea of 1,387.15ha. This encompasses 6,147 registered farmers.

This SDM seeks to answer the question: How can Ikanga improve livelihoods of smallholders it sources from in order to sustainably secure consistent quality and quantity of green leaf tea supply?

To improve its operational performance, Ikanga requires it to: i) secure affordable and sufficient working capital and capex financing; ii) strengthen management capacity and professionalize service provision; and iii) support the development of professionally-run cooperatives.

This study reveals that with a worsening financial position (given current and forecast losses), Ikanga may find it more difficult to attract external or commercial funding. For Ikanga to be able to attract commercial funding, it would first need to turn around its performance. Therefore, a business process improvement plan is highly recommended.

Download

Related Innovations & Resources

IDH Farmfit Download Resource
Tembo Coffee Company, Tanzania
Dowload here: SDM Case Study Tembo Tanzania
Download
IDH Farmfit Download Resource
Raphael Group Limited (RGL), Tanzania
Read about the SDM Case Study on Raphael Group Limited in Tanzania here.
Download
IDH Farmfit Download Resource
KPD, Tanzania
How a local Tanzanian coffee producer adapts its strategy to policy changes – the case of KPD. Tanzanian Robusta coffee product...
Download
IDH Farmfit Download Resource
Union Service Stores, Tanzania
Union Service Stores Company Limited (USSL) is a Tanzanian family-owned business founded in 1992. Headquartered in Moshi, Kilim...
Download