A Tanzanian firm, NovFeed, has been selected for the first cohort of the Nature-First Innovation Lab, a 12-month accelerator program that aims to support African enterprises in maintaining or restoring healthy land, forests, and soils. NovFeed uses microbial fermentation to turn organic waste into protein-rich fish feed and natural fertilizer. The company, co-founded in 2020 by Diana Orembe and Otaigo Elisha, sells its products through over 300 shops and distributors across Tanzania.
NovFeed's products provide a locally made alternative to imports for Tanzanian fish farmers and fertilizer for crops. The firm's fertilizers return nutrients to the soil rather than stripping them, promoting sustainable agriculture. With the help of the Nature-First Innovation Lab, NovFeed aims to strengthen its investor materials, plan its hiring and staff retention, and meet investors for its current fundraising target. The program is backed by UK International Development and the Norwegian Agency for Development Cooperation (Norad).
The Nature-First Innovation Lab is a collaboration between the Financial Sector Deepening (FSD) Africa, Systemiq, and the African Natural Capital Alliance (ANCA). The program focuses on supporting enterprises that build nature protection and restoration into their business models. Five African enterprises were selected for the first cohort, including NovFeed, Acacia EPZ (Kenya), Forested (East Africa), ForestFoods (Kenya), and Savanna Agri Chains (Ghana).
The selected enterprises will receive grants, help with financial planning, governance, and measuring their impact on nature, along with introductions to investors. The program does not take equity and aims to bring enterprises to the point where investors can make a decision. According to Dorothy Maseke, Head of the ANCA Secretariat, the program fills a gap between what grants and philanthropy will fund and where commercial capital begins.
An estimated 62 percent of Africa's GDP is dependent on nature, according to research by FSD Africa and McKinsey Sustainability. However, enterprises that prioritize nature protection often struggle to raise the funding they need to grow. The Nature-First Innovation Lab aims to address this challenge by supporting enterprises like NovFeed, which has already shown technical feasibility and revenue generation.
NovFeed's selection for the Nature-First Innovation Lab is a significant milestone for the company, according to Diana Orembe, Co-founder and Chief Executive Officer. The program will enable NovFeed to refine its growth strategy, connect with capital and strategic partners, and expand its production to reach larger commercial customers. The company plans to use the support to take its proven model from Tanzania to wider African markets.
The Nature-First Innovation Lab's focus on regenerative supply chains presents a significant opportunity for commercial investors, with an estimated USD 310 billion opportunity for regenerating the world's 30 most valuable landscapes. With the support of the program, NovFeed and the other selected enterprises are poised to make a positive impact on the environment while generating revenue and creating value for farmers and local communities.
Key points
- NovFeed uses microbial fermentation to turn organic waste into protein-rich fish feed and natural fertilizer.
- The Nature-First Innovation Lab aims to support African enterprises in maintaining or restoring healthy land, forests, and soils.
- The program provides grants, help with financial planning, governance, and measuring impact on nature, along with introductions to investors.
