The CoolCap Model

Our simple, sustainable model will help smallholders
feed the hungry and growing population of sub-Saharan Africa

sub-Saharan Africa

Our Growth Solution for Africa

We change the lives of subsistence farmers

Smallholders – farmers with less than 5 acres – are starved for credit

90% of farmers in sub-Saharan Africa are smallholders, but only 3% have access to credit

With one piece of equipment from CoolCap, their yields shoot up

30% is the typical yield increase with one piece of modern equipment from CoolCap

… with a potential effect on the whole continent

For every rise in crop yields of 10%, poverty in Sub-Saharan Africa drops 7%

Corn

CoolCap Yields Growth

The right equipment can grow smallholders out of poverty

Our pre-selected equipment helps
smallholders immediately

In the first year, 40% of the additional income pays for the entire loan, and 60% goes right into the Farmer's pocket

Mechanization has a massive and lasting impact on the farmer’s life and livelihood

For the average smallholder, every $1 CoopCap invests creates 10x that amount in additional annual income in the first three years

tractor wheel iconThe CoolCap Process

A market-based solution that makes a lasting change

Leapfrog technology is readily available, but smallholders can’t get credit to buy it.

 

The CoolCap Model, part 1: A broken triangle between Equipment Vendors, Emerging Farmers and Wholesale Buyers. Famers already have contracts with Buyers, who purchase crops for retail and export.

Farmers already have contracts with buyers, who purchase crops for retail and export.

CoolCap (1) buys equipment from the vendors in bulk and (2) sells it to the farmers at 10% interest, repayable at harvest. (3) Farmers deliver their harvest to their buyers (4) who deduct the farmers’ payment from a portion of harvest proceeds and remit to CoolCap.

The CoolCap Model, part 2: A completed triangle between CoolCap, superimposed over Equipment Vendors, Emerging Farmers and Wholesale Buyers. CoolCap buys equipment from the Vendors in bulk and sells it to the Farmers at 10% interest, repayable at harvest. Farmers relay their payments through the Buyers, who remit to CoolCap. To keep the cycle going, Vendors provide Farmers After-Sales Parts & Service, and Buyers will Identify new Emerging Farmers for CoolCap.

To keep the cycle going, vendors provide farmers after-sales parts and service and buyers continue to identify new emerging farmers for CoolCap.


A Sustainable Solution

By creating a renewable fund, each donation will multiply its effects

Using donations directly
has a limited effect

If we just donated equipment with our initial funding goals of $500K, we could help around 700 farmers

The CoolCap process self-renews and scales to continually help more farmers every year

In our first three years, we forecast CoolCap will finance $2.3 million in new equipment, helping 2,880 Farmers reach a better life, and expanding from there!