Reducing risk and strengthening business performance
The impact story of Gie Mali Engrais
Mali Engrais is a producer of biofertilisers manufactured from manure and organic waste. The company sells its products to farmers in Mali under two brands: EcoFert and Orgamine.
In 2020 Mali Engrais received pre-investment technical support through the Technical Assistance Facility (TAF) of the ABC Fund, of which Mali Engrais paid one third own contribution. The TAF is managed by Agriterra and implemented by Advance Consulting. The goal of the pre-investment TA support provided to the company was to help Mali Engrais bridge the gaps that prevented it from receiving a loan from international lenders like the ABC Fund.
The TA focused on improving several key environmental, social and governance risks and strengthening its business performance. The support was comprised of four components designed to prepare Mali Engrais to attract investment to support its growth, value addition and diversification.
The first component of the TA support was to optimize the design of the new production site and guide the cost optimization of existing and new products. Director and general manager Mr. Alassane Basse says, “Before the TAF team visited us, we were poorly organised as a structure. This assistance helped Mali Engrais to structure and organise itself more efficiently. We have formed, discussed and agreed on plan for the new factory. We have developed the vision.’’
Further, the TA support provided expert advice used to design and introduce a wider range of products to improve soil structure and fertility for different crops in Mali. “I am proud to say, we have reached 90% of the objectives of our action plan,” shared Mr. Basse. “In line with the advice of the TA Facility experts, we changed our sales price. This resulted in higher sales volumes.”
The second component was to enhance the company’s environmental and social responsibility performance. With support of the TA an environmental management plan was made. There is now also an action plan to mitigate key workplace safety risks, and a committee was appointed to maintain environmental and social management procedures. Lastly, a construction licence required for the new site was obtained.
The third component was to improve company governance through the recruitment of key staff members and to formalise key policies and processes. A human resources procedure was developed and a new bookkeeper and operational manager was hired. Only a financial director is yet to be recruited.
The fourth and last component of the TAF was to establish a market development strategy and price-setting mechanism. With the help of the TA, Mali Engrais adjusted its marketing strategy to develop new strategic partnerships and collaborations in West Africa.
As a result of the TA, Mali Engrais has improved its financial and administrative management as well as reduced its environmental, social and governance risks. For Mr. Basse, the TA had the following result: “It helped me to be more confident and to strengthen my organisational development skills. We are more self-assured and autonomous. We know better where our clients are. We know better where we want to go. Our main focus is now to realise the new production facility at the new site in Djoliba.” Mr. Basse is happy to say that there is now a clear vision at Mali Engrais.
