Situation
East Africa was on the brink of a sugar supply crisis; sugar cane farmers’ incomes were rapidly decreasing; consumers were complaining about low quality sugar; and the Government of Rwanda was at odds with the country’s only sugar processor. In this context Karisimbi Partners was engaged to assess the sugar processor and construct an actionable plan that, supported by recommendations provided to government, would enable the underutilized factory to reach its production potential.
Karisimbi Partners approach
Karisimbi Partners evaluated all aspects of the company, from its laborers and outgrowers in the cane fields, to its operations in the factory, to its consumers in the marketplace. KBP developed a deep understanding regarding inefficiencies in its supply chain and operations, misperceptions regarding its market, and ultimately, barriers to its growth and profitability, culminating in a robust assessment and actionable growth plan for the company.
Results
Karisimbi Partners’ involvement led to greater focus by the company on its supply chain, culminating in an immediate 40% increase in laborer incomes and paving the way for an almost 70% increase in farmer revenues over the next few years – increases that are leading to greater production of sugar cane and revenues for its processor. This engagement also led to correction of company misperceptions regarding the preferences of its consumers, resulting in improved quality and consumer perception. Said the company’s Director General, “We have made all these changes and investments as a result of your plan.” Lastly, Karisimbi Partners advised the government regarding policy needs in order for the country to meet future sugar requirements – these recommendations were subsequently summarized and distributed directly to the Presidental cabinet for use in the creation of a national sugar policy.
