- Created: Monday, 16 August 2021 09:10
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NZINGWANI GENERAL DEALERS REINFORCE THEIR RELATIONSHIP WITH SUPPLIERS THROUGH AAI
“I… had to travel for many kilometers to get my products from various suppliers.”
Nzingwani salesperson displaying some agro-inpits in their shop at Songani Trading Center in Zomba District.
According to both suppliers and agro dealers, securing an agro-dealership contract depends on good socio-economic networks. Most suppliers indicates that the ultimate selection of agro dealers depends primarily on the knowledge of prospective agro dealers. This is reasonable as it always form the basis for reducing bad debts because the relationship is built on already existing trust. In some cases, new agro dealers are identified on recommendation of established agro-dealers with credible track records with suppliers. Agro-dealers identified in this way are often placed under the supervision of a fellow agro-dealer that recommended them to the supplier up until they graduate when they have established their own credible track records. This suggests that it is not easy for agro-dealers in Malawi to get linked up with suppliers if they are not part of appropriate social-economic networks. It is for this reason that AICC through the Agribusiness acceleration Initiative (AAI) project has been linking the target SMEs in seven districts of Malawi to large businesses/suppliers as part of boosting the appropriate socio-economic network among the two parties.
One of the successful SMEs who benefited from AICC’s initiative of linking SMEs to suppliers is Nzingwani General Dealers a business found at Songani Trading Center in Zomba City. The business is owned by Mr. Charles Gogoda, a 48 years old man, married with 5 children (1 daughter and 4 sons), and is from Jingapansi village, Traditional Authority Chakhumbira in Ntcheu. Mr. Gogoda started his agro dealership business in 2005 and by then the business was lacking dependable and regular suppliers. “I… had to travel for many kilometers to get my products from various suppliers.” Gogoda said. Because of this, Mr. Gogoda spent a great deal of time going from one supplier to another to procure products. Sometimes he ran out of stock or ordered incorrect products. But after engaged by AICC in 2019 through the AAI project, that made his business to be connected to competent suppliers, Nzingwani General Dealers greatly expanded its customer base and saw his revenues growing significantly. Mr. Gogoda has been imparted with various business skills through the Agribusiness Acceleration Initiative (AAI) project and among others is the supply and customer relation concept that has made him to enhance the business relationship to both suppliers and customers. “Since I adopted the customer and supply relation concept, my business profit margins have tremendously increased, as I am able to reach more farmers and I am connected to several suppliers like SEEDCO, MOSANTO and Farmers Organisation.
SEEING THE LIGHT AT THE END OF THE TUNNEL: THE STORY OF LAPSON ZIDANA
Lapson Zidana cleaning his farm equipment, on the otherside riding his newly bought motor bike.
Lapson Zidana a 42 year old man, from Mangochi district, Nankumba Extension Planning Area (EPA) Mvumba section, is one of the farmers in Mangochi who suffered the impact of cotton pests and diseases due to the use of local varieties. The coming in of the Sustainable Cotton for Women and Youth Empowerment (SCOWOYE) Project which is implemented by AICC with the financial support from WE Effect, has helped Mr. Zidana in his cotton farming.
“As soon as I heard about Bollgard II (BGII) hybrid seeds and the new cotton agricultural practices that can help us survive drought, which is a regular case in this district, I get hold of it absolutely of which now has made me a successful cotton farmer, Said Zidana”. AICC through the SCOWOYE project told us the benefits of cotton Hybrid variety and the choice of adopting variety were left into our hands to make a decision but kept in mind that it is the same variety that resists drought which is very crucial in the Nankumba EPA. “As for me I chose to adopt Hybrid variety, narrated Zidana”
2020/2021 growing season he managed to procure and planted BG11 Hybrid variety from MAHYCO on 10 acres. He realized 8,200kgs of cotton yields which is very high compared to the last growing season which he only produced 4,100kgs. “This 2020/21 cotton growing season yield is higher than ever before and I thank AICC through the SCOWOYE project for their enlightenment.” Speaking while smiling.
From this year’s income alone (2020/2021 growing season), he has managed to procure a motorbike at a price of MK900, 000.00 to sort out mobility challenges. He has also purchased a 2-hectare land that will help him cut rental expenses as he has been renting some land for cotton cultivation. From the same income, he has sent his son to do a computer programming course and managed to get him a brand new laptop. In readiness for the 2021 season, Lapson Zidana has also bought a good-quality sprayer and other cotton agricultural inputs.