Beyond its training pathways, the FFM+ programme offers tailored post-training support, enabling beneficiaries to apply the knowledge acquired to concrete challenges. It is within this framework that SUGECO was supported, following its participation in the COLEAD training course "Developing a business plan for your agrifood business".
SUGECO: a youth-led cooperative born of Sokoine's agricultural university
Established in 2011 by graduates and faculty members of the Sokoine University of Agriculture (SUA), the Sokoine University Graduates Entrepreneurs Cooperative (SUGECO) promotes youth employment and entrepreneurship through agriculture, by facilitating access to land, finance, technology and markets. It now has more than 2,300 members.
Its flagship project, the Kizimba Business Model (KBM) Farm in the Morogoro region, serves as an incubation and demonstration hub where young entrepreneurs gain access to irrigated land, mechanisation, training and market linkages. It was in this context that SUGECO identified the opportunity to establish a commercially viable spice business, focused on ginger, habanero chilli and paprika.
From an initial draft to a bankable project
Following the training, SUGECO had developed a first business plan, but further support was needed to consolidate the business model, refine the market analysis, improve the financial projections and strengthen the investment's bankability. Through technical coaching sessions, document reviews and working meetings, the consultant supported the management team in strengthening the strategic and financial components of the project, ensuring that the model was built on realistic production assumptions, underpinned by market data.
Concrete results
The intervention resulted in a comprehensive five-year business plan setting out the strategic direction, operating model, investment requirements, financial projections and risk management of the spice business. It is underpinned by a detailed market study report covering the ginger, habanero chilli and paprika value chains — analysing demand, trends, customer segments and opportunities at national, regional and international levels — as well as detailed financial projections (operating budgets, investment plans, cash flow forecasts and profitability analyses) demonstrating the commercial viability of the project. Beyond these deliverables, the process strengthened SUGECO's internal capacities in strategic planning and financial analysis, equipping the team with a practical tool to steer implementation and engage with prospective funders.
What's next? Mobilising capital and scaling up
The business plan provides SUGECO with a roadmap for developing the KBM Farm spice business and a tool for resource mobilisation. The next phase will focus on mobilising investment capital, developing commercial spice production, strengthening linkages with buyers and creating new opportunities for young people. Through this initiative, SUGECO is well positioned to strengthen its contribution to youth employment and to the growth of the spice sector in Tanzania.
This activity is supported by the Fit For Market Plus (FFM+) programme, implemented by COLEAD within the Framework of Development Cooperation between the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union. This publication receives financial support from the European Union and the OACPS. The content of this publication is the sole responsibility of COLEAD and can in no way be taken to reflect the views of the European Union or the OACPS.