Global Courant 2023-05-16 19:38:54
With a rapidly growing population, Africa is witnessing a remarkable increase in entrepreneurial ventures. From small-scale startups to established enterprises, companies of all sizes have a burning desire to meet the changing demands of the population seeking innovative solutions, products and services.
However, this dynamic and rapidly evolving business landscape is plagued by several challenges, including the lack of accessible and reliable cold storage facilities. From agricultural products and seafood to dairy products and pharmaceuticals, the lack of the right refrigeration options hinders companies’ ability to scale and remain profitable. In general, the economic consequences can be overwhelming.
For example about 50% of the food produced in African countries is lost due to inefficient supply chains and a lack of cold storage infrastructure. In Nigeria alone, the agricultural sector is losing an alarming factor N3.5 trillion annually in post-harvest losses, to which the lack of cold rooms undoubtedly makes an important contribution. With such a fortune lost to post-harvest losses, food insecurity becomes a looming threat.
To meet this challenge, Oghenetega founded Iortim Grida cold chain solution provider specializing in temperature-controlled products, temperature monitoring solutions and cold chain services, draws on its first-hand experience as a player in the agricultural sector.
After graduating from university, Iortim ventured into agriculture in 2015, a period when people began to prioritize production and the improvement of the agricultural value chain. While growing vegetables, which was his target crop, he faced significant post-harvest losses due to the unavailability of cold storage facilities that could extend the shelf life of his crop. In response to this challenge, he leveraged his engineering background and developed a solution to help smallholder farmers in Nigeria and across the continent.
But it didn’t stop there. As Gricd progressed, Iortim realized that innovation was just as much needed in the health sector. The challenges of agricultural companies mirrored the experiences of the healthcare sector.
In Africa, the lack of reliable cold storage and inefficient cold chain management have seen the health sector witness the prohibitive waste of supplies, including blood, vaccines and pharmaceuticals. The World Health Organisation estimates that up to 50% of vaccines worldwide are wasted each year; largely due to a lack of temperature control and the logistics to support an unbroken cold chain. This percentage could be higher in Africa where approx 568 million Africans lack access to electricity and clean energy to power a cold chain infrastructure.
“Our technology helps companies that deal with perishable items such as vaccines and agricultural commodities such as meat and dairy products. In case of problems with the storage conditions, we alert them immediately so that they can take the necessary measures to avoid loss of goods during transport or storage,” explains Iortim.
Oghenetega Iortim, Founder, Gricd; Africa’s Business Heroes 2021 Top 10 Finalist from Nigeria
Although Gricd started as a manufacturer of cold storage facilities, it has transitioned to providing monitoring services for refrigeration infrastructures such as cold rooms, refrigerated trucks and warehouses. The company enables its customers to maintain optimal storage conditions for their products by providing real-time insight into the storage conditions of their raw materials.
“When a customer is interested in using our services, they can contact us and we will conduct a heat mapping analysis. This analysis allows us to accurately determine the location of their facility and assess its size, identifying potential areas of loss. We then send devices to the customer for installation, and they can use our software to continuously monitor these locations,” says Iortim.
However, like many other companies on the continent, Gricd also faces operational challenges. Lortim disclosed that the startup is experiencing difficulties in obtaining the necessary hardware components for cold storage facilities. The majority of these components are imported, making them sensitive to the fluctuating exchange rate of the country. In recent months, the value of Naira has fallen significantly. The World Bank says the Naira has lost 10.2 percent of its value against the US dollar in 2022. At some point during the year, it bottomed out at N742/$ on the parallel market. Despite this, Iortim stated that Gricd was able to weather the storm by monitoring market cycles and forecasting demand.
In the early stages, Gricd faced financial challenges. However, the company was lucky enough to receive backing from a handful of investors who shared its vision. In particular, a crucial contribution was made Africa’s Business Heroes (ABH) fundwho played a vital role in facilitating the growth of the company.
Africa’s Business Heroes (ABH) is a philanthropic program in Africa sponsored by the Jack Ma Foundation and Alibaba Philanthropy. It seeks to showcase, support and grow local talent making a positive impact in their communities and beyond and inspire a movement of African entrepreneurship.
According to ABH’s anchor partner, Boyewa Abiodun-Adepoju, marketing and communications manager at VC4A, “We see that wherever talent abounds, access to opportunity is always lacking. With partnerships like ours, the ABH award competition can find talented entrepreneurs making a difference in their communities from across Africa. Not only are partner referrals perceived as stronger, the quality of the applications is also significantly improved.”
ABH Anchor Partner in Nigeria – Boyewa Abiodun-Adepoju_Marketing and Communications Manager at VC4A
For her, pBy spotlighting the best entrants throughout the competition, the competition opens up an opportunity for new business, innovation, diversity and inclusion. Firstly, it increases deal flow towards African startups, creating job opportunities, which is crucial for the growth of the economy. Likewise, the startups get a platform to showcase their ideas and form strategic partnerships, which can help them scale their business and reach new markets.
This is indeed the case for Gricd. Lortim emphasized that the ABH program has played a crucial role in his personal growth and the development of his team and company. He compared the experience to a collective expedition, where a group of individuals come together, share a common journey and encounter similar challenges along the way.
“In addition to the ABH Fund, the program’s network of individuals and the exposure it provides through media coverage, corporate launches and advisory services is unparalleled. The program has driven growth in every aspect, including workforce development and improved business perception. It has also provided valuable access to capital and networking opportunities,” noted Iortim.
ABH is a highly competitive program with numerous companies providing innovative solutions to various challenges across the continent. Iortim believes that Gricd stood out for their ability to effectively articulate and demonstrate the tangible impact and benefits of their business.
The expansion of Gricd into Kenya is one of the notable post-ABH consequences. The startup now has operational offices in both Nigeria and Kenya. In terms of deployment, Gricd has expanded its presence to more than seven countries on the African continent, including Nigeria, Kenya, Ghana, Uganda, Tanzania, South Africa and Ethiopia.
Gricd has announced plans to introduce new products in the coming months that aim to solve critical issues on the continent and create greater impact. The company also aims to expand beyond its current presence in seven countries and reach 10 to 12 countries.
PC: Lukman Folade
On Monday, Gricd, now known as Figorr, raised $1.5 million in a seed funding round to provide it with the necessary resources to further develop its business. The rebrand signals the company’s strategic shift to focus on software solutions to meet the changing needs of its customers.
When asked how he balances profit and social impact, Iortim explained: “It is almost impossible for an African company not to have a positive impact. Ultimately, the nature of our business itself has an impact. We focus on ensuring food security in the agricultural sector and increasing access to healthcare. Our product meets people’s needs and they are willing to pay for it. Because we have a market fit, it becomes a natural balance between impact and profit.”
Gricd has already established partnerships with leading pharmaceutical manufacturers and food companies in Nigeria and across Africa. Through its robust tracking system, the company has effectively monitored more than 110 million perishable items, helping its customers realize significant savings of more than $200 million.
