Kijani Energy, through its Mozambique operating company Odeveza S.A., intends to form strategic relationships with associations of smallholder farmers.

For Kijani Energy, these partnerships will: 

• Build goodwill as the company establishes a brand and lives up to its vision of a triple bottom-line management style
• Provide Kijani Energy with access to locally relevant experiences in the cultivation of Jatropha
• Facilitate two-way communication of best practices and the use of premium inputs

For smallholders, a central and robustly profitable enterprise (“management centre”) will ensure:

• A stable market outlet—in the form of an off-take contract for outgrowers (which serves to mitigate business and market-type risks)
• Access to efficient technology and higher farm-gate prices—e.g. seed crushing facility which maximizes oil yield
• Information on global standards and best-practices—where we will work jointly with government extension workers to ensure that outgrowers innovate and maximize yields and profits
• Access to global markets, including revenues from carbon emission credits

Fundação Kijani, with the assistance of researchers at the Graduate School of Business at the Universidade Católica de Moçambique, is preparing a study on appropriate business and social partnership models that could guide Kijani Energy and its associated community partners to function more efficiently, sustainably and equitably. Possible institutional set-ups for the relationship between associations of Jatropha smallholders and Kijani Energy include outgrower schemes or co-operative arrangements. In line with the recommendations to come from the ongoing research project, we intend to, as soon as feasible, work with specialized agencies to enhance access to credit for members of the association of smallholders.

In the meantime, we are beginning to forge strategic relationships with smallholders. In the region of Báruè, we have already signed a Memorandum-of-Understanding with an association of smallholders whereby we undertake to work with government extension workers to improve techniques and practices and we stand ready to buy the association’s production at market prices.