Acacia EPZ Ltd

Acacia EPZ Ltd, is a company that exports Gum Arabic sourced from Kenya’s Arid and Semi-Arid Lands (ASALs) to the European Union.

The project

In Kenya, the potential for Gum Arabic production is about 12,000 MT (with an annual export value of USD 50 million) against an average production of 400 MT.

Within the AgriFI project, Acacia EPZ seeks to implement several interventions to streamline the value chain so as to optimise returns for collectors and investors while scaling barriers and delivering value faster. Implementation of the project will give communities in the target counties incentives to conserve the acacia trees and related vegetation.

With support from AgriFI, the project aims to:

• Support collectors to establish formal producer business groups to enhance volumes and quality. This will also support collective marketing and direct payment of the Gum Arabic to the collectors rather than through the traders which will reduce exploitation.
• Quality assurance – establishing standards and providing clear guidelines for sorting and grading using sieves and tables and storage using recommended collection and storage sacks.
• Acquiring and setting up of the value addition infrastructure.
• Training of Trainers and field extension support –field visits and providing support to the collectors and trainers and leaders of the collector co-operatives.
• Inspecting collection of the product, bulking and proper storage.
• Conducting grading and pre-export lab tests with technical support from KEFRI.
• Improving financial literacy and access to credit through forming and strengthening the Gums and Resins cooperative and producer groups.
• Building a database of all collectors and using “big data” to streamline the supply chain and ensure maximum benefits for the collectors at the community level by using historical data including proof of income to facilitate access to financial services.
• Information consolidation and data mining through inclusion of the new counties in the electronic portal and app which is currently under development. The app will support in making projections, enhance traceability of the Gum Arabic and support individual collectors on a need basis.