The Global Footprints of Melach and Shalem

They say success leaves clues, and nowhere is this more evident than in the journeys of two remarkable African entrepreneurs who represent true African agribusiness success. Melach Coconut Processing Farm in Ghana and Shalem Investment Ltd in Kenya have not only reshaped local economies but also inspired countless others to dream bigger. These ventures show how determination and creativity can transform challenges into stories of innovation, impact, and global reach.

Melach Coconut Processing Farm has grown into a powerhouse in the export of coconut products. It connects smallholder farmers to global markets while producing high-quality goods such as virgin coconut oil, porridge, and activated charcoal. With clients across the USA, Europe, and Asia, Melach has become a shining example of African agribusiness success and Ghana’s agribusiness potential.

Similarly, Shalem Investment Ltd has redefined smallholder commercialisation in Kenya, positively impacting over thirty thousand smallholder farmers and ensuring access to safe, nutritious, affordable food. The company’s focus on empowering rural communities has elevated livelihoods and positioned it as a hub of agricultural transformation. Yet, these global success stories are rooted in humble beginnings and trials that shaped their founders into the icons they are today.

When I sat down with Michael Annan-Forson, founder and CEO of Melach Coconut Processing Farm, his recollection was laced with emotion and humour. ‘I was very young when I got married,’ he began, his voice steady but reflective. ‘After my Master’s studies in Australia, I returned to Ghana to start a family, but life had other plans. My wife passed away, and with her, our unborn child. Devastated, I left Ghana a heartbroken man.’

His search for solace led him to Thailand, where he secured a job in the human resource department of a coconut farm. What he thought would be a typical desk job turned into an unexpected boot camp in resilience. The company’s CEO insisted that all staff rotate through every department, from office duties to the gruelling tasks on the farm. ‘I saw many colleagues quit,’ he recalls, ‘But I stayed. Little did I know this experience was preparing me for my future.’

Faith in Vision

Nearly a decade later, he returned to Ghana, determined to put his knowledge into practice. He started saving diligently from his salary in a new job, using the funds to purchase basic coconut processing equipment. ‘I used six months of my salary to buy a screw press and grating machine,’ he explains. With these tools, he embarked on a small-scale production journey, working tirelessly to perfect his craft.

The decision to quit his stable job came as a shock to many, including his employer, but Michael was unwavering. ‘I had to take the leap of faith,’ he says. However, starting was anything but smooth. He would walk from bank to bank, clutching his business proposal, hoping to secure funding. ‘Every bank I visited turned me away,’ he recollects. ‘It got to a point where the security guards were instructed not to let me in.’

Despite the repeated rejections, he remained persistent, fuelled by a vision larger than himself. Motivated by his newfound expertise and a desire to explore the untapped potential of the coconut industry, Michael began producing coconut oil from his small apartment. As word spread, a key suggestion from a client to share his products on LinkedIn changed the course of his journey.

‘That one post changed my life,’ Michael says, chuckling. An inquiry from an Israeli businessman named Boaz marked the beginning of Melach’s international journey. Boaz’s trust in Michael was unprecedented. ‘He sent me $35,000 upfront for ten tonnes of coconut oil,’ Michael recounts. ‘I had no factory, no licenses, and I did not even know what a tonne was!’

He recalls fumbling through the process of fulfilling the order. ‘At first, I panicked,’ he admits. ‘I even thought about short-changing him because the task seemed impossible.’ However, his conscience would not allow him. Driven by his faith and a commitment to honesty, he faced the challenges head-on.

He quickly mobilised resources and reached out to local workers, many of whom were women and persons with disabilities. The chaotic space of production became a hub of activity, and through sheer determination, the order was completed.

When Michael delivered the shipment on time, Boaz was impressed. This experience not only built trust between them but also reinforced Michael’s belief in integrity as a cornerstone of business. ‘To this day, honesty remains one of our core values,’ he emphasises. ‘It helped us establish a reputation and open doors to more opportunities.’ This deal laid the foundation for Melach’s growth.

The Fund

With funds from Boaz and additional support from the Fair Factory Development Fund, Michael expanded his operations significantly. The Fair Factory Development Fund played an integral role in providing the financial resources needed to scale Melach’s production capacity and improve infrastructure — laying a strong foundation for long-term African agribusiness success.

Their partnership ensured Melach could meet international standards, opening doors to new markets and fostering sustainable practices. ‘The Fair Factory Development Fund did not just provide funds; they believed in our vision and enabled us to dream bigger,’ Michael shares.

The success of Melach has also had a ripple effect on the community. By creating employment for young people, the company has discouraged many from seeking greener pastures abroad. ‘I know what it is like to leave home in search of opportunities,’ he says. ‘Now, we provide those opportunities here, allowing young people to build their futures without leaving Ghana.’

Like Michael, Dr. Ruth Kinoti’s journey is a testament to grit and vision. As the CEO of Shalem Investment Ltd, she has transformed a small family business into a social enterprise that markets dry farm produce from over thirty thousand smallholder farmers. Her commitment to sustainable agriculture and community empowerment has earned her numerous accolades, including the Rabobank Business Incubator Award.

Ruth’s entrepreneurial journey began with humble roots. Identifying herself as a ‘peasant farmer’s daughter,’ she started by selling produce from her relatives. She quickly realised a pressing challenge: ‘Most smallholder farmers struggle with market access. They mostly produce the same thing and want to sell that same thing at the same time.’

Driven by the desire to solve this problem, Ruth began helping farmers identify viable markets for their produce. In 2000, Shalem gained access to government institutions and schools, laying the foundation for its future success. Over time, Shalem’s efforts drew the attention of impact lenders and investors, enabling the company to purchase larger volumes of dry farm produce from farmers.

Breaking Barriers

A significant breakthrough came when East Africa Breweries Limited (EABL) recognised Shalem as a key aggregator of large volumes of sorghum from smallholder farmers. This demand significantly increased the number of smallholder farmers Shalem worked with and expanded their market reach.

By 2007, Shalem had ventured into milling, focusing on porridge flour, further boosting the demand for farmers’ produce. This marked Shalem’s entry into the East African market, with occasional ventures into Zambia. ‘Working with smallholder farmers has enabled us to protect them from exploitation, reduce post-harvest losses, and transform some of them from farmers to traders as they also help collect produce on our behalf,’ she explains. In 2018, Shalem secured a loan to establish a manufacturing plant, transforming the business from solely an aggregator to venturing into value addition — a major step in its journey toward African agribusiness success.

However, the journey was not without hurdles. Like Michael, Ruth encountered significant obstacles in accessing the funds needed for growth and expansion. ‘In business, it is very difficult to navigate as a woman. Most banks do not trust us, either due to lack of collateral or simply because they doubt our ability to deliver,’ she shares.

With persistence as her guiding principle, she maximised the limited resources available, gradually earning the trust of development agencies and impact lenders. Over time, Shalem secured funding through loans and grants to support its mission of improving the livelihoods of smallholder farmers, enhancing environmental sustainability, and advancing food and nutrition security.

Currently, Shalem is managed by Ruth, her husband Daniel Kinoti, two of their adult children, and a dedicated staff. Together, the management and operations teams form a human resource force of nearly two hundred people.

Reflecting on her most challenging business experience, she recounts a particularly tough period when the demand for maize flour and other products was high, but their purchasing power for raw materials was severely limited. ‘We could not access additional loans from the bank since we had reached our headroom, meaning despite committing all our assets as collateral, the bank could not advance any more funds.’

n September 2023, they found a breakthrough with the Fair Factory Development Fund. After conducting thorough due diligence, the fund recognised the value of Shalem’s work and provided the much-needed working capital on very favourable terms. ‘They believed in what we do and supported us with capital at very friendly interest rates. This partnership has enabled us to pay farmers better and sustain our operations more efficiently,’ Ruth shares. With this reliable and consistent partnership, Shalem continues to thrive — strengthening its role in the broader story of African agribusiness success.

Ruth believes that business requires deep knowledge and strategy. ‘One of the mistakes I can look back on was due to a lack of knowledge. Before starting any business, do not just think, ‘I have the money, I have enough capital,’ consider the need you intend to meet. When you understand the need your business addresses, it will grow.’

Recently, Shalem unveiled a new product, ‘Asili Plus Zaidi Asili,’ a nutrient-rich flour designed for making ugali, Kenya’s staple food. ‘Kenyans primarily consume ugali, but the flour available in most urban supermarkets and shops is sifted and less nutritious,’ Ruth explains.

With the rising prevalence of lifestyle diseases and limited access to whole grain flour, this product was developed with support from the Global Alliance for Improved Nutrition (GAIN). By roasting maize and using an extrusion process—similar to making popcorn—the flour retains its nutrients, representing yet another innovation contributing to African agribusiness success.

Suitable for both ugali and porridge, the product has already entered several supermarkets in Kenya. Shalem now aims to expand its availability across East Africa, working to make this nutritious option more accessible to consumers.

As Ruth aptly puts it, ‘In business, success is progressive — step by step, stitch by stitch. Nothing comes overnight.’ The journeys of Melach and Shalem embody this wisdom. Both ventures have endured countless challenges yet remained steadfast in their commitment to quality, innovation, and integrity. Through persistence and collaboration with trusted partners, they have expanded their scope and become household names in the African agribusiness success story.

Edited by “Pius Okore”