The document proposes creating Magedo Kitchen, Ethiopia's first food incubator. It would provide an affordable commercial kitchen space for food entrepreneurs, especially women. This would help them formalize businesses and scale up production. The incubator aims to create jobs, empower women, and support food security by helping entrepreneurs access resources, markets, and financing. It would also partner with urban farms to source quality ingredients and provide higher compensation to farmers. The incubator seeks to be financially sustainable through rental fees while supporting its social goals.
2. “People love to say, “Give a
man a fish, and he'll eat for a
day. Teach a man to fish, and
he'll eat for a lifetime.” What
they don't say is, “And it would
be nice if you gave him
a fishing rod.”
Trevor Noah
INSPIRINGWORDS
We believe that when
talented entrepreneurs are
given the right resources,
they can create self-
sufficient businesses that
benefit themselves, their
families, and their whole
country.
3. Concept
THE
INTRO
Create an affordable
commercial kitchen
space for talented
entrepreneurs.
The high cost of starting
a food business makes it
difficult for many
Ethiopian entrepreneurs
to formalize their
business. Our kitchen
space lets people who
were formally shut out of
the food industry find a
way in.
4. The
Challenges
WE CAN SOLVE THESE!
40% of Ethiopian kids are
malnourished due to
family's low income
Africa imports $35 billion
in food--expected to
triple by 2025
Women & the rising
youth lack quality jobs
Raw materials are
exported with almost
zero added value
Start up cost for the food
business is very high
Grants are hard to get &
only benefit 1 company
at a time.
5. Case Study
"I started my snack company out of
the kitchen of a local restaurant.
But most Ethiopians wouldn't have
that connection or opportunity to
do that.
I started getting international orders
but remain stuck in the
"entrepreneurial trap"--I need more
production to save for industrial
equipment, but can’t produce more
without increased space and funds.
I want to bring together food
entrepreneurs, solve this problem,
& succeed together.
- Valerie Bowden, Dirkosh Crunch
Dirkosh Crunch focuses on hiring women with
disabilities like Tarikua (seen in picture).
When the company struggled to scale up, all
team members lost their jobs.
6. The Solution:
Magedo Kitchen
THE FOOD INCUBATOR
Create a large facility and
collaborative work space with proper
equipment that can cut cost and
facilitate scale to a commercially
viable level.
*Over 700 commercial kitchens exist in the United States. Zero exist in Ethiopia.
Magedo is the Amharic word for
cooking fuel. Like our namesake, our
purpose is to provide the essential
tools entrepreneurs need to turn food
ideas into food products.
8. How it Works
The Space
The facility will be ISO certified &
have all necessary kitchen
equipment.
The Entrepreneurs
The entrepreneurs can rent per
hour and reserve only the minimum
time needed.
The Cost
The kitchen will maintain
sustainable, but affordable rates.
For those unable to pay,
scholarships will be available.
9. Create jobs!
FOODINCUBATORSIN
THEUNITEDSTATES
In the US alone, there are more than
700 shared-use commercial kitchen
facilities, including more than 100 food
product incubators. Big cities like L.A.
usually have at least 10 or more.
In the US, each incubator is estimated
to create 25-30 new jobs. This is a low
estimate given that Magedo plans to
be more industrial focused than most
US incubators.
In addition, there are hundreds of co-
packing and contract manufacturing
facilities that produce food products
on an industrial scale
10. HELPING ALL
Some of the project's funding
will also specifically meet the
needs of startups like Dirkosh
Crunch, who have a huge
ability to create more jobs for
women.
SMALL TO LARGE
The kitchen will be designed
for small startups as well as
bigger startups & co-packers.
Food entrepreneurs can grow
their way through the kitchen
taking advantage of the
versatility of the design.
11. The project will also initiate an urban & vertical
farm partnership to create more organic, natural
produce. Farmers will receive higher
compensation by selling directly to the kitchen.
Entrepreneurs will get higher quality of input
that meets international demands.
12. LOCALLY
Shared delivery truck to
transport to retail outlets
Magedo-branded retail
displays cases
Locally certified by FMHACA
EXPORT
Negotiated entry to foreign
markets with shared shipping
containers
Co-branded with Magedo
brand to raise profile, assure
quality
Independent safety
certification by SGS
Independent nutrition analysis
by BLESS LAB
DISTRIBUTION
13. Other Services
Business & Finance
Tools & training to create
profitable products & startups
Web & Digital Services
Help with web design, SEO, &
digital services support
Marketing & Packaging
Marketing & packgaging
guidance & best practices
Investment Linkage
Connect investment ready
startups to investors
14. Sustainability
Urban Farmers
...receive fair compensation &
can continually contribute
orgnanic, natural ingredients
Entrepreneurs
...test their product, scale up, &
build their brand until they are
ready for their own facility.
The Kitchen
...The kitchen is made
sustainable through renting
space & providing extra
support.
*The model can be replicated
throughout Addis Ababa &
implemented throughout the
country.
15. Sutainability
Cont'd
Entrepreneurs pay by the hour to rent
kitchen space and kitchen staff and/or
production equipment
Entrepreneurs pay for shared services,
Magedo collects commission
Entrepreneurs pay for distribution, with
Magedo either charging a flat fee, or
collecting a share of revenue for placing
product in new retail or wholesale spaces
Magedo could also take an equity share in
the entrepreneur’s company to supplement
or replace some of the above fees.
Most incubators are sustained by grants.
Magedo strives to be self-sustaining and
revenue positive.
*Any of the above fees can be subsidized to support low-
income entrepreneurs
16. Goals
Magedo fits the Ethiopian
Growth & Transformation plan:
Increasing productivity of
smallholder farmers
Increases agro-processing
sector
Goal 1: Reduce Poverty
Goal 2: End hunger, achieve
food security and improved
nutrition and promote
sustainable agriculture
Goal 5: Gender Equality
Goal 8: Decent Work &
Economic Growth
Magedo fits the United Nations
Sustainable Development Goals:
17. Risk Adverse
Unlike traditional grants
that depend on a
singular company's
success, the kitchen
continues to thrive
because it serves
multiple people. If one
entrepreneur quits or
fails, the kitchen is still a
separate, sustainable
entity.
18. Who is on board?
MEETTHETEAM
Valerie Bowden
CEO
CEO & Founder at Dirkosh
Crunch
Sam Rosmarin
Investment Finance Expert
Chief Strategy Officer at
Komari Beverage
Afel Amberber
Marketing Expert
Brand Manager at
Habesha Brewery
Alula Kibrom
Chief Technology Officer
CEO at Business TYC
Mohammed Kellow
Strategy Expert
Manager at Kifiya
Supporting
Organizations:
German Vertical
Farm Association
ATA (Ethiopian Gov)
Storimarket- UK
Food distributor
Local Supermarkets