seeds

Production of Endemic Improved Seeds

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Production of Endemic Improved Seeds

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Gender Equality (SDG 5) Reduced Inequalities (SDG 10)

Business Model Description

Invest in the production of endemic improved seeds for smallholder farmers. Private operators source drought-resilient foundational seed varieties from research centers and biotechnology labs, produce improved seeds through cultivation, and have them certified by the Direction Nationale de l'Agriculture and Comité National des Semences et Plants. Certified seeds are distributed to farmers via agro-dealers, resellers, and distribution centers. Key crops include food crops (hybrid maize, sorghum, cowpea, groundnut), cash crops (vegetables, potato, rice), and niche crops (cotton, sweet potato). Returns come from 1) B2C seed kit sales to farmers, 2) tripartite contracts with smallholders and wholesalers or agro-processors, and 3) exports to West Africa.

Expected Impact

Increase the affordability and access of smallholder farmers to quality seeds, improving agricultural productivity, income, food security, and nutrition.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Mali: Sikasso
  • Mali: Mopti
  • Mali: Ségou
  • Mali: Koulikoro
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
In 2024, 13.2 million Malians experienced insufficient food consumption, with 1.4 million facing severe food insecurity. By 2025, 2.9 million people, including refugees and internally displaced persons, will require food security assistance. Climate change and a population expected to double by 2045 will further strain food supplies (2, 8, 12).

Policy priority
Politique Nationale de la Sécurité Alimentaire et Nutritionnelle, 2019 targets: 1) sustainable food availability to meet national demand by 2030; 2) enhanced capacity to prevent, mitigate, and reduce climate risks; 3) improved food accessibility; and 4) better nutritional status for the population (14).

Gender inequalities and marginalization issues
The 2025 INFORM Index, a global risk assessment for humanitarian crises and disasters, ranks Mali as the 14th most vulnerable country to humanitarian crises and natural disasters. As of September 2024, 378,500 people were internally displaced—57% women and girls, and 66% children—mainly due to conflict and flooding. These pressures severely impact food security, underscoring the urgent need for agricultural investment to support vulnerable populations (8, 9, 10, 11).

Investment opportunities introduction
Mali's economy relies heavily on small-scale subsistence and family agriculture, which contributes 35.1% to GDP growth. Investing in climate-resilient technologies, modernization, and market integration offers high returns and development impact, boosting food availability, value-added products, and income (18).

Key bottlenecks introduction
Transportation costs, limited road networks, lack of cold storage, and security risks pose major barriers for investors, restricting supply chain development and weakening food system resilience (16).

Sub Sector

Food and Agriculture

Development need
Malian farmers face limited access to quality inputs and infrastructure, leading to just 4.5% of arable land being cultivated and agro-food processing contributing only 6.1% of GDP. Climate change is expected to reduce agricultural productivity by over 40% by 2040, threatening the livelihoods of 80% of Malians, or about 15.3 million people (3, 4, 5, 6, 7, 20).

Policy priority
Plan National d’Investissement dans le Secteur Agricole, 2015-2025 aims to position Mali as one of West Africa's top agricultural producers and an agro-industrial powerhouse, leveraging its agricultural raw materials. This will be achieved through modernizing production systems while preserving the environment and natural resources (15).

Gender inequalities and marginalization issues
In Mali, only 3.7% of women own agricultural land, compared to 44.8% of men, despite women making up 60% of the agricultural workforce and contributing to 80% of food production. On average, women own 0.6 hectares of land, 1.1 hectares less than men, limiting their capacity to generate income (1, 19).

Investment opportunities introduction
The shortage in certified seeds stands at 69%. It concerns most crops, including maize, sorghum, millet, groundnut, cowpea, fonio, sesame, and soybean. Consequently, several private operators have been involved in the formal seed sector to strengthen the supply of improved seeds. They currently represent more than 20% of the total formal market (22, 33, 37).

Key bottlenecks introduction
High competition from imported goods and limited technology adoption by smallholder farmers may constrain the development and scaling up of local private sector-led initiatives in Mali's food and agriculture sector, slowing growth and innovation (17).

Industry

Agricultural Products

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Production of Endemic Improved Seeds

Business Model

Invest in the production of endemic improved seeds for smallholder farmers. Private operators source drought-resilient foundational seed varieties from research centers and biotechnology labs, produce improved seeds through cultivation, and have them certified by the Direction Nationale de l'Agriculture and Comité National des Semences et Plants. Certified seeds are distributed to farmers via agro-dealers, resellers, and distribution centers. Key crops include food crops (hybrid maize, sorghum, cowpea, groundnut), cash crops (vegetables, potato, rice), and niche crops (cotton, sweet potato). Returns come from 1) B2C seed kit sales to farmers, 2) tripartite contracts with smallholders and wholesalers or agro-processors, and 3) exports to West Africa.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

< USD 50 million

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

5% - 10%

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

Estimated demand of 15,000 tons of improved seeds annually.

Integrated Seed Sector Development (ISSD) Africa estimates the effective demand for improved seeds at 15,000 tons per year in Mali. With an average retail price of USD 1.18 per kg of improved seeds, this gives an estimated market size of about USD 17.7 million (21, 22, 32).

The private sector-led formal certified seed sector produces three types of crops in Mali, including food crops (hybrid maize, sorghum, cowpea, groundnut), cash crops (vegetables, potato, rice), and niche crops (cotton, sweet potato). Vegetables and cowpeas present the highest demand growth among smallholder farmers, followed by maize and rice. Niche crops target agroprocessing companies (21, 22).

World Bank estimates that domestic demand for agricultural products could reach around 5% to 6.5% per year in Mali by 2040. This demand would be driven by an urbanization rate of about 70% by 2050, and a demand for animal products that would increase the demand for crops such as corn, millet and sorghum for the production of livestock feed (29).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

15% - 20%

GPM
Describes an expected percentage of revenue (that is actual profit before adjusting for operating cost) from the IOA investment.

15% - 20%

Consultations with certified seed producers in Mali, in January 2025, indicate a Gross Profit Margin (GPM) of 17% over the period 2010-2023, for an average sale price of USD 1.18 per kg of maize, rice, and cowpea seed (21).

A benchmark USD 3.04 million project that involved the production and commercialization of certified seeds in Sikasso, Segou, Mopti, and Kayes indicates an IRR of 16.1%-27.2% over a period of 20 years, for food crops and cash crops (26).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Loans to certified seed producers in Mali have a tenor of five years at an interest rate of 6% (21, 34).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

< USD 500,000

Market Risks & Scale Obstacles

Certified seed producers in Mali indicate a low adoption of improved seeds among smallholder farmers in the country, as up to 80% self-produce, exchange informally, or reuse the seeds from previous harvests (15, 21, 22).

Market - Highly Regulated

Law No. 10-052 on seeds of plant origin requires private seed producers to submit the new varieties of improved seeds they produce for approval by Comité National des Semences et plants (CNS), before commercialization (23, 25).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

There is a shortage of certified seeds in Mali. The deficit was estimated at 69.6% for all crops for the 2020/2021 season, with 85%, 87%, 90%, 99% for sorghum seed, millet seed, corn seed, and groundnut seed, respectively (22, 33, 36, 37).

Agriculture produces 3/4 of the available calories in Mali (67% from cereals and 4% from fruits and vegetables) but its productivity is low. As a result, 19.9% of Malians were food insecure in 2021, and 1.6 million children suffered or are at risk of acute malnutrition in 2024-2025 (28, 39, 41).

Due to prices two to three times higher for improved seeds compared to local seed varieties, Malian smallholder farmers recycle improved seeds for up to 4 years. This leads to losses of varietal purity and uniformity of the crops in the fields, further limiting agricultural productivity (22).

Gender & Marginalisation

In 2024, food prices were around 18.91% above their 2019 average and the price of primary sector goods rose by 9.7% compared to their 2023 level. This is almost twice the overall inflation in the country, limiting poor households' ability to access food (27).

The cost of nutritious food is only USD 1.84 per household per day in Mali, but 1 in 2 households (49% or 13 million people) cannot afford it. This cost is twice higher in conflict-afflicted and semi-arid Menaka, Kidal, and Mopti, where the road network is also limited (41).

1 in 10 people had an average energy consumption lower than the minimum energy consumption estimated at 1812 Kcal per person per day in 2021. The gap to reach the average energy level is 172.5 Kcal/day in rural areas compared to 33.7 Kcal/day in urban areas (28).

Expected Development Outcome

Investment in the production of improved seeds improves the availability, affordability, and access of smallholder farmers, including women, to key climate-resilient species and varieties. This further improves their agricultural productivity, output per unit of labour, income, and poverty status.

An increase in the supply of improved seeds improves food security and nutrition by increasing agricultural yields and plant quality and resilience.

Gender & Marginalisation

Investment in improved seeds lowers inflation and the cost of nutritious food for rural communities and the poor by increasing the supply of quality agricultural products.

The production of improved seeds adapted to local contexts lowers the pressure on food prices in Menaka, Kidal, and Mopti where road networks are limited. It also decreases greenhouse gas emissions by reducing the need for transnational road transportation to supply these regions.

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.3.2 Average income of small-scale food producers, by sex and indigenous status

2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size

2.1.1 Prevalence of undernourishment

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

Current Value

Data on the average income of smallholder farmers is not available. However, the harvest value was USD 182,568 on average in 2017-2018 according to Enquête Agricole de Conjoncture Intégrée aux Conditions de Vie des Ménages, with USD 215,527 for men and USD 20,989 for women (38).

Data on the volume of production per labour unit is not available. However, the agricultural output per labour day of small-scale producers was USD 18.54 in 2019; USD 18.54 for males and USD 16.95 for females (46).

9.6% in 2021; 5.8% in urban areas and 8.8% in rural areas (28).

19.9% in 2021; 14.4% in urban areas and 21.5% in rural areas (28).

Target Value

By 2025, Plan National d’Investissement dans le Secteur Agricole 2015-2025 aims to double the volume of produced tomato (143,827 tons), potato (123,738 tons), voandzou (45,960 tons), cowpea (351,522 tons), wheat (70,050 tons), cotton (1 million tons), and millet (2 million tons); triple the volume of maize (4.7 million tons); and tenfold the volume of sugarcane (2.9 million tons) (15).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025 targets nutritional security for all Malians by 2025 (15).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025 targets food security for all Malians by 2025 (15).

No Poverty (SDG 1)
1 - No Poverty

1.2.1 Proportion of population living below the national poverty line, by sex and age

Current Value

43.9% in 2023; 14.2% in Bamako, 23.4% in other urban centers, and 51.7% in rural areas (43).

Secondary SDGs addressed

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth
Gender Equality (SDG 5)
5 - Gender Equality
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

Smallholder farmers benefit from increased access to quality and affordable improved seeds. They also benefit from increased productivity and income.

Gender inequality and/or marginalization

Women, youth, and unemployed people benefit from employment opportunities on seed farms, in seed packaging units, and in seed distribution centers.

Planet

In the medium-term, the increased productivity reduces forest clearing practices among rural communities and reduces the use of chemical fertilizers, improving soil and water quality.

Corporates

Agro dealers, resellers, and wholesalers benefit from increased revenue.

Public sector

Ministère de l'Agriculture benefits from reaching its production targets for cereals and vegetables, indicated in Plan National d’Investissement dans le Secteur Agricole 2015-2025 (15).

Indirectly impacted stakeholders

People

In the medium- to long-term, consumers benefit from lower food prices and increased food and nutrition security.

Gender inequality and/or marginalization

Internally displaced populations benefit from an increased access to affordable and nutritious food.

Corporates

Agro processing companies benefit from a secured supply of inputs all-year-long and at a low cost. Irrigation companies benefit from an increased demand for their products.

Outcome Risks

The utilization of improved seeds requires an intensive usage of pesticides to prevent pest infestation. This could lead to water and soil pollution, especially in irrigated areas (26).

Certified seed producers in Mali spend on average USD 248 daily on diesel to run their conditioning and packaging units. This reliance on heavy oil could increase greenhouse gas (GHG) emissions (21).

Increased irrigation needs for large-scale seed cultivation may strain local water resources, if not managed adequately.

Impact Risks

Delays or inconsistencies in foundational seed supply may disrupt production cycles, limiting the efficiency of this business model.

Climate hazards such as extreme droughts and heavy rainfall could disrupt the production of quality seeds, limiting the expected price impacts on smallholder farmers.

Seed conditioning requires cold storage. Frequent power outages and failure to maintain cold storage equipment could reduce the quality of the commercialized seeds (21).

If the improved seeds are not affordable, some smallholder farmers may be excluded from benefiting from this opportunity, as 72.2% of Mali’s low income population are farmers (43).

Impact Classification

C—Contribute to Solutions

What

Local production of improved seeds increases the affordability and access of smallholder farmers to quality seeds, and improves agricultural productivity, income, food security, and nutrition.

Who

Smallholder farmers, consumers, women, youth, unemployed people, internally displaced populations, agro dealers, resellers, wholesalers, and agro processing and irrigation companies are impacted.

Risk

Supply chain disruptions, climatic variations, frequent power outages, and affordability could reduce the expected impacts of improved seed production.

Contribution

The local production of certified seeds increases access to improved seeds, which are otherwise imported or distributed by non-governmental organizations (22).

How Much

The local production of improved seeds could fill the seed deficit, which stood at 69.6% for the 2020/2021 season (22).

Impact Thesis

Increase the affordability and access of smallholder farmers to quality seeds, improving agricultural productivity, income, food security, and nutrition.

Enabling Environment

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Policy Environment

Politique Semencière Nationale du Mali, 2020: prioritizes the use of quality seeds in agrarian communities and an increased access and availability of quality seeds for smallholder farmers in production areas (25).

Politique Nationale Genre, 2011: outlines an equitable access to seed resources for women to ensure production throughout the country (26).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025: outlines the priority activities to increase the competitiveness of Malian agricultural products, including the diversification of crop varieties and the access to improved vegetal materials (15).

Financial Environment

Financial incentives: Injaro Investments provides up to USD 330,000 in equity financing with a 49% stake to private certified seed producers in Mali (21).

Financial incentives: Bank of Africa provides up to USD 496,000 in medium term loans with a tenor of 2 to 5 years to private certified seed producers in Mali. The loans cover up to 80% of the required investment for creation or activities scale-up (21, 34).

Fiscal incentives: Scale-up investments with a value lower than USD 500,000 are exempt from import duties and taxes on equipment, IBIC withholding tax, and VAT withholding tax on technical assistance and consultancy services for two years, under regimes A and B of the investment code (35).

Regulatory Environment

Chapter III of Law No. 10-032 on seeds of plant origin, 2010: establishes a national catalogue of species and varieties approved in Mali for the production of certified seeds (23).

Law No. 06-045/AN-RM on agricultural orientation, 2006: promotes the development of local production units for selected seeds (24).

Law No. 10-032 on seeds of plant origin, 2010: authorizes private operators to produce and distribute vegetal seeds from the national catalogue of approved species and varieties, under Article 5 and Article 14. The law also describes the procedure for the certification of the produced seeds (23).

Marketplace Participants

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Private Sector

Faso Kaba, Agriplus Mali, Soprosa, Banque Nationale de Développement Agricole, Kafo Jiginew, Baobab, Banque Atlantique, Bank of Africa, Injaro, Coopérative pour la Promotion de la filière Semencière du Mandé, Union Locale des Producteurs de Céréales de Dioïla, Coop Sikolokoloton.

Government

Institut d'Économie Rurale, Direction Nationale de l'Agriculture, Institut Polytechnique Rural de Formation et de Recherche Appliquée, Direction Régionale de l'Agriculture, Laboratoire national des Semences, Comité National des Semences et plants, Service Semencier National.

Multilaterals

International Crops Research Institute for the Semi-Arid Tropics, International Institute of Tropical Agriculture, International Maize and Wheat Improvement Center, WorldVeg, Alliance for a Green Revolution in Africa, International Finance Corporation, Conseil Ouest et Centre African pour la recherche et le Developpement Agricole, Food and Agriculture Organization.

Non-Profit

Union nationale des coopératives de planteurs et maraîchers du Mali, Coordination nationale des organisations paysannes du Mali, Association Semencière du Mali, Integrated Seed Sector Development-Africa, Bill and Melinda Gates Foundation, Rockefeller Foundation, Syngenta Foundation.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Mali: Sikasso

Sikasso is an agricultural hub that has an extensive production of maize, sorghum, cotton, and vegetables. The region accounted for more than 35% of vegetable output and 40% of the vegetable area in 2019. Its proximity to Cote d'Ivoire and Burkina Faso offers potential for exports (44).
rural

Mali: Mopti

Mopti is an agricultural hub that specializes in cereal cultivation. It offers an ideal setting for the production of drought-resilient seeds for farmers located in Djenné, Bankass, and Bandiagara. The Niger Inland Delta also provides support for the integration of irrigation technologies (45).
rural

Mali: Ségou

Ségou is a central region with strategic access to Bamako, Sikasso, and Koulikoro for distribution. The Office du Niger zones in Niono, Macina, and Markala provide water security for seed cultivation, in addition to the governmental agricultural land development program (45).
rural

Mali: Koulikoro

Koulikoro has 110,000 ha of developable agricultural land, 29,194 ha of which were developed in 2023. The region offers cultivation potential in Katibougou, with distribution to Bamako (45).

References

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