MiDA Newsletter

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Millennium Development Authority

13

Quarterly Newsletter | Ninth Edition Oc tober, 2011

ChallengeWhen Alhaji Mohammed Abubakari,established ZOYA Enterprise; agrains marketing firm 12 years ago,he did not foresee the enormouschallenges ahead of him. As a grainmarketing company, based in Tamaleand engaged in purchasing andmarketing of maize, paddy rice,groundnuts, soyabean and sheanut,ZOYA tried to raise additional fundsfrom financial institutions toexpanded its marketing activities butwas not successful. Year after year,it had different explanations frombanks why it could not access credit.This limited the operations to theTamale Metropolis. In 2008, with

his relatively limited capital ofGHc20,000, ZOYA was only ableto buy: 60mt of maize, 30 mt ofsoyabeans, 60mt of rice, 30mt ofgroundnut and 40mt of sheanut.

InitiativeAlhaji Abubakari had informationon the commercial trainingcomponent of the MiDA programthat supports Small and Medium

Scale enterprises with the possiblilityof securing credit from the

participating financial institutionslisted under the Program. He wasdirected by the MiDA Zonal Officein Tamale to seek support from theNorthern RIC in the preparation ofa Business Plan for funding. Thebusiness plan with a letter ofrecommendation from the RIC wassubmitted to the AgriculturalDevelopment Bank in Tamale. Thebank reviewed the proposal andupon satisfying the necessaryrequirement, ZOYA Enterprise wasgranted a loan facility of GHc200,000 in February 2010. This wasunprecedented since the inceptionof the business. Alhaji Abubakariwas relieved of the perennial

financial burden.

ResultsWith this support, ZOYA for the firsttime extended its operations to thefour MCA Districts namely; Karaga,Savelugu Nanton, West Mamprusiand Tolon Kumbungu. ZOYA hasestablished warehouses in the fivedistricts and has increased thepermanent labour force from 4 to

20. For the 2009/10 farming season,ZOYA increased purchases of maize

from 60mt to 250mt, rice from 60mtto 300mt, soyabean from 30mt to120mt, groundnut from 30mt to180mt and sheanut from 40mt to250mt. Unlike previously, theOrganization paid cash to all theFBOs who supplied the produce.The Company made reasonableprofit which has enabled theacquisition of a modern office facilityin the Tamale Metropolis. ZOYA hass tar ted making market ingarrangement for the purchase ofproducts in the coming season. TheCompany is now extending heractivities beyond the MCA Districtsby responding to bids to supplymaize to tertiary institutions in other

regions. Significantly, ZOYA issponsoring the ward of one staff topursue a degree program at theInstitute of Professional Studies inAccra. The enterprise is discussingwith the Metropolitan Assembly tofacilitate the establishment of anumber of food joints to promotethe consumption of local rice in theTamale Metropolis. This will beanother source of income for the

organization and provide jobs forothers.

MiDA made my dream a reality(Alhaji Mohammed Abubakari)

For 12 years I have been struggling to raise additional capital to expand my business but no institution trusted

me enough to nance my company. With assistance rom MiDA, I have raised my capital base rom Ghc 20,000to GHc 220,000. My operations have spread rom one to ve districts, increased my work orce, enable me to bid

or institutional contracts and operate rom a modern ofce. Indeed I can see light at the end o the tunnel

Alhaji Mohammed AbubakariManaging Director, Zoya Ent.

Courtesy IFDC


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