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AAF SME Fund Impact: Guanomad

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Business Challenge

Guanomad is a leading organic fertiliser producer in Madagascar. The company extracts bird and bat guano from bat caves and processes them into organic fertiliser products. Products are sold to both the local and international markets.

The main challenge for the company was lack of liquidity after the economic crises, which had been created by international sanction after the coup. Additionally, local and international awareness of the product was minimal.

Our Approach

The AAF SME Fund has invested $2.8m in Guanomad since June 2013. The Fund sought to shift Guanomad’s strategy from being a government and NGO-tendered business to a more globally oriented business. The Fund also aimed at developing a more export-centered market supported by a research-focused local market. The investment went into financing new equipment, marketing and other working capital needs.

Our Impact


Improved Livelihoods

  • 72 jobs sustained thereby providing steady income to families
  • Invested €250,000 through TAF to train 42 agro-dealers, resulting in increased sales for these dealers
  • The agro-dealer capacity building scheme is increasing fertiliser usage and yield per acre for smallholder farmers
  • Increased job creation, especially for local communities, through production expansion and the institution of the TAF agro-dealer scheme


Enhanced Food Security

  • Invested €51,000 through TAF to develop a strong export revenue base and become more diversified from unstable local sales, with inroads made into USA, Europe and East African markets
  • Seeking partnership with a global agriculture conglomerate and a large phosphate producer
  • Leveraging relationships from the Fund to develop regional and overseas markets
  • Appointment of agent in Kenya to develop Kenyan and Tanzanian market. Extensive trials ongoing in Kenya
  • Successful trials were concluded in the USA. The company is now expected to distribute via two of the largest organic product distributors in the USA


Improved Business Operations

  • Increased production capacity through the purchase of equipment with higher production capacity
  • TAF assisted project to set up an in-house laboratory to enhance product quality control
  • Technical and professional training of all levels of employees with international secondments


ESG Impact

  • Developed a comprehensive ESG management plan which is now being referred to as a standard in Madagascar. The Company was assisted in ensuring full compliance with ESG matters relating to guano extraction