The Agri-business Context

Due to on and off armed conflict, natural disasters, such as floods and drought, disease outbreaks and very limited access to basic services and humanitarian space, some Somali households increasingly face challenges to maintain a food secure and well-nourished household. As a result agriculture has suffered most. Poor rains in this semi-arid nation have also often contributed to poor harvests and significant cereal shortfalls.
Agriculture is an important economic activity in Somalia not only in terms of meeting the food needs of the population (roughly 50% of populations cereal requirements are met through domestic production), but also in terms of generating income through crop sales and agricultural labor opportunities.
With a total population in the market over 14.5 million, agriculture is a major component particularly for two of the main rural livelihood systems in Somalia, namely:

1. Producers (Farmers)

A

Staple food producers

B

Fruits/Vegetable producers

2. Input & Service Providers

Sellers of seed, fertilizers, pest/insecticides

Sellers of tools, equipment and machinery

Grain mill operators

Tractors and machinery hire service providers

3. Marketing Service Providers

A

Grain market sellers

B

Fruits/Vegetable producers

4. Institutional

Ministry of Agriculture

Local/Intl NGOs for Technical advisory and support

Academic / research institutions

Chamber of Commerce

Local governments

Cooperatives and farmer’s associations

The demand for agricultural products such as grains, fruits and vegetables is expected to grow substantially due to the urbanization, population growth and the improvement in standard of living.
As such promoting investment in the sector and providing farmers with the necessary resources to grow, develop and modernize their businesses and in turn help transform and grow the agriculture sector in Somalia.
AGRO BANK will be headquartered in Mogadishu, Somalia, to be a bank for both rural and urban communities to fill those necessary resources and with plans to expand to other regions within the next few years. Currently, there’s no agricultural bank in Somalia that can extend a helping hand to local farmers and help grow the agricultural industry.
AGRO BANK recognizes the gap in the market and plans on fulfilling that gap.