iGravity Supports Guavay in Driving Sustainable Agriculture in Tanzania

We are excited to announce that, iGravity has recently disbursed an impact-linked loan to Guavay Company Limited, a pioneering sustainable agro-input company based in Tanzania. This funding is part of our commitment under the Impact Linked Fund for Climate Change Mitigation and Adaptation in Tanzania, a funding window of the Impact-Linked Fund for Eastern & Southern Africa (ILF ESA) funded by the Swiss Agency for Development and Cooperation (SDC) and Fourfold Foundation, aimed at supporting market-based organizations operating in Tanzania and actively contributing to climate change mitigation and adaptation. 

Who is Guavay? 

Founded in 2014 by a group of local entrepreneurs, Guavay specializes in developing and manufacturing organic and mineral-organic fertilizers and soil improvement products. With a strong focus on research and development, Guavay is dedicated to promoting sustainable agricultural practices among smallholder farmers. Currently, the company serves over 9,100 smallholder farmers through its network of 5 retail outlets and 57 agro-dealers across 9 key agricultural regions in Tanzania. 

Impact on Smallholder Farmers 

Guavay’s products are designed not only to enhance soil health and fertility but also to significantly contribute to climate mitigation and adaptation efforts, while improving smallholder farmers’ livelihoods. Their approach integrates quality agro-inputs with knowledge sharing—offering soil testing, training, and support for transitioning to climate-smart agriculture. 

By using organic matter in their products, Guavay enhances soil’s carbon absorption ability, contributing to carbon sequestration. With a goal to serve over 21,000 smallholder farmers by 2028, Guavay’s products are projected to deliver a 25%-35% yield improvement and a 15%-30% income increase, nearly doubling farmers’ net profits and promoting long-term financial sustainability. 

Why This Matters 

The support from iGravity through the ILF ESA funding window is instrumental to Guavay’s growth as they finalize their production facility and expand operations. This funding helps Guavay scale both their business and environmental impact, aligning their sustainability goals with business expansion. 

Guavay contributes to climate change mitigation by improving soil health, primarily through: 

• Carbon Sequestration: Guavay’s Hakika fertilizer products contain organic matter that enhances soil’s ability to absorb and store carbon from the atmosphere. Their operations are projected to sequester up to 25,575 MT of CO2 over the next four years.
• Efficient Nutrient Application: By promoting the optimal application of nutrients, Guavay 's products improve soil fertility while preventing nutrient imbalances that can harm the environment.
• Biodiversity Conservation & Circular Economy: Through their waste management model, Guavay products not only reduces emissions but also protects biodiversity by preventing deforestation linked to soil degradation.

Additionally, Guavay’s Hakika fertilizer products support climate adaptation by boosting smallholder farmers’ resilience through: 

• Yield Improvement: Guavay’s products lead to a 25-35% yield improvement, increasing farmers’ productivity.
• Income Increase: Farmers using Guavay’s inputs see income increases ranging from 15-30%, with potential to nearly double their net profits, promoting financial stability.

Guavay is targeting to reach over 21,000 smallholder farmers by 2028, scaling both their impact on livelihoods and the environment, further driving sustainable agriculture in Tanzania. 

At iGravity, we believe in the power of innovative finance tools to drive equity and sustainability through entrepreneurship. Together, we can create a more prosperous future for smallholder farming communities in Tanzania, and across Africa. 

Stay tuned for more updates on Guavay and other impactful initiatives under the ILF ESA! 

Read more on Guavay Company Limited.