Ari.farm is making investing in Somali livestock easy and accessible to investors which have both financial and social returns in mind. This startup based in Sweden has been founded by Mohamed Jimale , who was a Nomadic herder until the age of 11 he now lives in Sweden. It has already sold more than 600 animals to investors.
Somalia has a population of around 10 million people but it is double the size of Germany, this land of planes and pasture is ideally suited for herding sheep and goats. In fact this business makes up half the Somali economy. Somalia has 13,000,000 sheep and 13,000,000 goats making it the the biggest exporter of goats and sheep in the world.
How does the investment in Goats and Sheep work?
Nomad families usually consisting of a mother, father and children have mixed herds goats and sheep. Investors can by a specific number of animals within the herd, for a one time payment. At the time of writing 11/05 a goat or a sheep costs $200. This is a one time payment which covers the cost of the animal and any additional needs of the animal during 3 years. The nomad herders manage the animal and Ari.farm monitors these animals. This investment model is very popular with Somali urbanites, they invest in herds through their families and contacts in the countryside. This investment system has been digitized in the form of a website and phone app, investors can buy animals through the app.
The nomad families travel every three to four months using camels for transport, they travel with their animal herds from one pasture to another looking for the best food for their animals. Ari.farm has a local team of experts who monitor the animals owned by the clients of Ari.farm. They check for pregnancy rates, disease and make sure that the animals are growing and living healthy.
What kind of returns can investors expect?
- Ari.farm estimates that the yearly ROI is 30%. This figure is based on
- Sheeps and goats can have two offspring a year. (this represents a 100% increase in “capital”)
- This rate of fertility is not the same for every animal.
- Animals which die before they give birth will be replaced for free by Ari.farm.
- The social returns, comes in providing liquidity to farmers in times of drought and creating jobs.
What are the main risks of investing in Goats and Sheep?
Default: Ari.farm is a startup, but Jimale has informed me that they have broken even so the risk of default is reduced.
Livestock: Livestock can be affected by disease, fertility issues or attacked by wildlife such as hyenas and foxes.
Drought: Somali has a dry season and a rainy season, at times it does not rain for a whole year, this results in a drought no rain for more than a year. Although the nomads have a tough time during this period Nomads are in need of money during this time because they need to buy water and food for their animals. Ari.farm can provide by buying animals from them at a reasonable but reduced price.
Conflict: Somalia is a troubled spot, because there is an ongoing conflict between the Government and local Militias. A few years ago it was a regular occurrence for Somali pirates to board ships passing through. These are facts, but Somalia is double the size of Germany and these conflict areas affect only part of the country, particularly in the South and along the coast. The pirates have seized their operations since the international maritime force is patrolling these waters. Ari.farm has operations in two areas Mudug and Lower Shabelle, these are located in the center and south.
Shares in Nomadic herds, a viable investment?
The internet allows investors to touch all parts of life in all remote corners of the world. Ari.farm is a tool which extends the choice of investors, it provides a way to both do social good and potentially earn a financial return. You might not have the time or energy to roam the planes of Somalia in search of fresh grass for your goats and sheep – but sometimes you can just pause the rat race and think about your animals roaming the plains experiencing total freedom in the moment.
Learn more about Ari.Farm:
- You can also buy Goats with Bitcoin!
- Investing in livestock