Quarterly Newsletter | Ninth Edition October, 2011

Millennium Development Authority

(Alhaji Mohammed Abubakari)

MiDA made my dream a reality

For 12 years I have been struggling to raise additional capital to expand my business but no institution trusted me enough to finance my company. With assistance from MiDA, I have raised my capital base from Ghc 20,000 to GHc 220,000. My operations have spread from one to five districts, increased my work force, enable me to bid for institutional contracts and operate from a modern office. Indeed I can see light at the end of the tunnel

Alhaji Mohammed Abubakari Managing Director, Zoya Ent.

Challenge
When Alhaji Mohammed Abubakari, established ZOYA Enterprise; a grains marketing firm 12 years ago, he did not foresee the enormous challenges ahead of him. As a grain marketing company, based in Tamale and engaged in purchasing and marketing of maize, paddy rice, groundnuts, soyabean and sheanut, ZOYA tried to raise additional funds from financial institutions to expanded its marketing activities but was not successful. Year after year, it had different explanations from banks why it could not access credit. This limited the operations to the Tamale Metropolis. In 2008, with his relatively limited capital of GHc20,000, ZOYA was only able to buy: 60mt of maize, 30 mt of soyabeans, 60mt of rice, 30mt of groundnut and 40mt of sheanut.

participating financial institutions listed under the Program. He was directed by the MiDA Zonal Office in Tamale to seek support from the Northern RIC in the preparation of a Business Plan for funding. The business plan with a letter of recommendation from the RIC was submitted to the Agricultural Development Bank in Tamale. The bank reviewed the proposal and upon satisfying the necessary requirement, ZOYA Enterprise was granted a loan facility of GHc 200,000 in February 2010. This was unprecedented since the inception of the business. Alhaji Abubakari was relieved of the perennial financial burden.

Results
With this support, ZOYA for the first time extended its operations to the four MCA Districts namely; Karaga, Savelugu Nanton, West Mamprusi and Tolon Kumbungu. ZOYA has established warehouses in the five districts and has increased the permanent labour force from 4 to 20. For the 2009/10 farming season, ZOYA increased purchases of maize
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Initiative
Alhaji Abubakari had information on the commercial training component of the MiDA program that supports Small and Medium Scale enterprises with the possiblility of securing credit from the

from 60mt to 250mt, rice from 60mt to 300mt, soyabean from 30mt to 120mt, groundnut from 30mt to 180mt and sheanut from 40mt to 250mt. Unlike previously, the Organization paid cash to all the FBOs who supplied the produce. The Company made reasonable profit which has enabled the acquisition of a modern office facility in the Tamale Metropolis. ZOYA has started making marketing arrangement for the purchase of products in the coming season. The Company is now extending her activities beyond the MCA Districts by responding to bids to supply maize to tertiary institutions in other regions. Significantly, ZOYA is sponsoring the ward of one staff to pursue a degree program at the Institute of Professional Studies in Accra. The enterprise is discussing with the Metropolitan Assembly to facilitate the establishment of a number of food joints to promote the consumption of local rice in the Tamale Metropolis. This will be another source of income for the organization and provide jobs for others.

Courtesy IFDC