Heremans abandoned consultancy jobs in the UK to vend beans in Rwanda

He visited Rwanda about two years ago as part of the consultancy work that often saw him traverse the globe. However, the visit was to be the turning point in Christian Heremans’ quest to try out something different from the daily rigours of the corporate world. He says after graduation, he had gotten a job with a consultancy firm where he had worked for almost five years. He adds, however, that the desire for independence and doing something different was always pushing him in another direction. As a consultant, Heremans says, he often visited African countries, including Algeria, Ghana, Nigeria and Rwanda. “It is after visiting Rwanda (which is my ancestral home) that, in 2014, I decided to quit my job and head to Kigali to be part of the ongoing economic transformation focusing on agro-processing,” he explains. He says his interest was mainly in nutrition and adding value to agricultural produce, which influenced the setting up of Farmfresh Food Company, which produces and distributes foods locally and across the region, in 2014. The 33-year-old entrepreneur says he was looking to support smallholder farmers and boost agro-processing and job-creation besides making some cash. Starting out The Farmfresh Food Company factory in Kabuga, a Kigali suburb processes tonnes of locally-grown high value beans for the local and export markets. It processes the beans rich in iron with the goal of offering the best possible service to each and every customer, especially the export market. Heremans says he invested about $100,000 (about Rwf83.8 million) of his savings in the venture. “I found a niche market in export of processed produce, particularly cooked beans,” he says, adding the decision was influenced by availability of ready market locally and in the region. Besides, Rwanda produces a lot of beans, which presented me with an opportunity for sustainable source of supplies to keep the enterprise running, he points out. “I also wanted to support farmers through value addition which assures them of better earnings. The venture would also save working class people from the hustle of cooking by bringing in the convenience of ‘ready cooked’ beans,” the investor narrates. Heremans, a graduate of City University’s Caas Business School in London, says he had been working as a business consultant at two UK-based firms. The managing director of Farmfresh was born in Belgium and raised in the UK, where he studied business management. Market Heremans says the firm supplies 70 stores across the country and the ‘ready to eat’ beans are also exported to neighbouring countries, including Uganda, the DR Congo and Kenya. “At the moment, we are eying South Africa and the Rwanda diaspora, especially in the UK and Belgium as our target market,” he says. The challenges Heremans says being able to sell the new concept to local and regional buyers was one of the biggest challenges, requiring a lot of marketing and networking. “Fortunately, the Rwanda Development Board and other government agencies were willing and ready to help us form key market linkages, among other forms of support,” he says. He adds many people did not know that you could actually buy baked beans from a supermarket. He says they partnered with H2O Venture Partners, a firm that supports social entrepreneurs, which helped them forge more trade linkages and, thus pushed the idea to the next level. Heremans says he also did a lot pitching to get the money that was required to turn his business dream into a profitable venture. Another big challenge is ensuring that farmers ensure quality along the value chain, noting that quality is central to the survival of the enterprise. Like is the case with other sectors and producers, Farmfresh also faces the issue of high cost of packaging and raw materials, while prolonged dry spells sometimes limits farmer’s capacity and affects the business’s production capacity. Since the majority of Rwandans are noted familiar with package foods, people are still not used to baked beans, a situation Heremans says the firm is working hard to address through awareness campaigns and social networks. Achievements Despite the challenges, what looked like the impossible dream 12 months ago, the father of two has been able to turn it into reality. The firm has managed to more than double its initial capital to over $200,000 presently. Farmfresh employs about 20 people and offers a market to over 400 individual farmers and 70 farmer co-operatives. Farmfresh has increased capacity from under one tonne per month to more than 20 tonnes presently. Future plans Heremans looks to increase production capacity to 70 tonnes a month to satisfy local demand and export market that the firm plans to expand by venturing into new markets outside East Africa. “To achieve this, we will invest between $500,000 and $1 million in the business in the coming few years,” he says. Heremans says Rwanda presently offers one of the best business environments that investors can exploit to grow. Farmfresh plans to expand into processing of other agro-produce to make the business ‘more sustainable’. Advice to exporters Heremans urges local exporters to improve production processes to ensure their products meet international standards. He adds that quality, good packaging and branding are crucial and will enable local firms penetrate global markets and become more competitive. “Work hard to win consumer confidence… exporting local products is not enough to grow the business; entrepreneurs must ensure they invest in quality production to win consumer trust locally and in export markets,” he argues. He adds that this ensure that Rwandan goods are competitive, besides strengthening business sustainability. The agro-processor also advises local businesses to market their products, saying a firm cannot peg its survival on goodwill alone. “Rwandan firms need to move with the changing business trends and hire strong marketing teams as well as form strategic partnerships, among others,” Heremans notes. He also calls for corporate governance, arguing that paying attention to the cash flow is critical for export business. About nutritious beans Beans (phaseolus vulgaris) have historically been a staple food and source of protein and other nutrients in Rwanda and other East Africa countries. Generally, beans are safe, but must be cooked properly to destroy lectins, which can be toxic. Both climbing and bush beans are staple crops in Rwanda, each having a particular benefit.

News

Heremans abandoned consultancy jobs in the UK to vend beans in Rwanda