Strategic Issue: Doing Business in Africa is Hard
Especially in the land-locked country of Uganda, it is difficult to find adequate packing material, spices for the sausages or machines for processing. Everything has to be imported at high cost and high risk.
Chilling and transport infrastructure is also lacking, particularly challenging to market a perishable product made from fish. Most challenging is the lack of money for investing; commercial banks seem mainly to be interested in funding projects that are safe and guarantee a return on their investment.
Kati Farms thus plans to import the feed for its suppliers, processing and packing material, and exotic ingredients. It is often less risky and quicker to ship the goods by plane than by truck, overland. Lovin is also relying on new private investors who are aware of, and passionate about, the development potential of agribusinesses in Africa to help fund her expansion. One of these is Anu Frank Lawale of Gloucester Point, Virginia. He was introduced to Lovin by a common friend: Nelly Isyagi of Aquaculture Management Consultants.