frequently asked questions (faqs)


* What does RM HOLDINGS do? 
RM HOLDINGS identifies, develops and arranges financing for sustainable agricultural and agri-processing business opportunities in Tanzania, Retail business, real estate, financial services, import and export.

* Why is RM HOLDINGS needed in agriculture? 
There is enormous unexploited agricultural potential in Tanzania. Despite this potential East Africa is a major net importer of food. It can and should be a net exporter. There are major impediments (market failures) to successful investment in early-stage agricultural development in East Africa. They include lack of infrastructure, high unit costs related to the small scale of production, lack of entrepreneurs, the limited pool of experienced managers and lack of finance. RM HOLDINGS targets and removes these constraints creating sustainable businesses that can grow thereafter without further RM HOLDINGS support. Unless the upfront costs and risks of developing new irrigated food crop production can be addressed, there is unlikely to be significant private investment into new irrigated food crop production in East Africa.

* How does RM HOLDINGS de-risk the businesses in which it invests? 
RM HOLDINGS de-risks agricultural ventures by supporting local trials and pilots, building local and regional agricultural supply chains and ecosystems, engaging local management teams, reducing market volatility through long-term contracts, and catalyzing additional private sector capital. We partner with organizations that can provide secure and profitable markets for smallholder farmers.  We negotiate with large buyers to secure long-term contracts at fair prices; and we invest with African businesses to help them add value to raw materials.

* What is RM HOLDINGS approach to responsible investing? 
RM HOLDINGS approach is guided by its Operating Policies and Procedures that set out the way in which it does business. RM HOLDINGS is committed to responsible investing through private sector development.  We follow the International Finance Corporation (IFC) Performance Standards on social and environmental sustainability. We pay particular attention to ensuring that local communities and smallholder farmers are the main beneficiaries of our investments.  We comply with the World Bank principles regarding good practice where community engagement relating to land issues is concerned.  We seek to observe the highest level of disclosure and transparency consistent with effective delivery of our objectives and achievement of significant social impact and value for money.

* Is RM HOLDINGS a consulting company? 
No. RM HOLDINGS is a project development company which invests its own capital into early-stage projects to get them to the point where they can attract third-party investment. RM HOLDINGS is therefore operating on its own cost and risk and has strong incentives to ensure projects are successful.

* Does RM HOLDINGS compete with private agriculture investors? 
No, on the contrary, RM HOLDINGS creates a pipeline of "bankable" agriculture investment opportunities for private investors, both domestic and foreign. RM HOLDINGS itself is not a long-term investor will sell the majority of its shareholding as soon as the private sector is willing to invest and the sustainability of the project is assured. RM HOLDINGS is already building relationships with a number of African agriculture investment banks and funds who are interested in investing in the RM HOLDINGS portfolio.

* Does RM HOLDINGS seek to attract domestic or international private investment into the projects it develops? 
RM HOLDINGS will seek to raise domestic capital where it is available, in particular from the domestic banking sector but also from domestic institutional investors (e.g. pension funds) who often have a shortage of investable project opportunities in their domestic markets. To facilitate raising domestic capital and reduce the cost of borrowing to the project company, RM HOLDINGS will seek to secure credit enhancement including local currency credit guarantees. RM HOLDINGS will also approach international investors and development finance institutions.

* Does RM HOLDINGS help smallholder farmers? 
Ensuring commercial agriculture projects benefit smallholders is central to AgDevCo's mandate. RM HOLDINGS improves access to agriculture-supporting infrastructure, agricultural services and finance by smallholder farmers at an affordable cost. Development of commercial farm "nucleus" hubs is an effective means of extending services to smallholder farmers at low additional cost. Every single project in which RM HOLDINGS is involved will have a smallholder farmer support programme.

* How does RM HOLDINGS think about women in agriculture? 
RM HOLDINGS recognises that there is strong evidence that increasing the income of the primary woman in the household has a significant impact on poverty reduction and food security.  RM HOLDINGS seeks to design and invest in businesses that incorporate opportunities to maximise improvements in household welfare by supporting women farmers and women entrepreneurs.

* How does RM HOLDINGS help farmers combat climate change? 
RM HOLDINGS recognises that smallholder farmers and SMEs are increasingly vulnerable to drought and other climate change risks.  RM HOLDINGS provides capital for irrigation and other water management infrastructure, technical assistance on adaptive farming best practices, and access to weather insurance.

* How is RM HOLDINGS different to other donor interventions in agriculture
RM HOLDINGS absorbs the high costs and risks of early-stage development of agriculture. It also designs, finances and builds agriculture-supporting infrastructure, such as irrigation services, and makes it available to commercial farmers and smallholders. The result is the creation of sustainable agricultural and agro-processing industries able to grow without further financial support. RM HOLDINGS acts "on the ground" as principal (i.e. owner); it is therefore able to move swiftly and can coordinate the various investments along the supply chain necessary for each individual investment to be sustainable.

* Does RM HOLDINGS provide subsidies for large-scale commercial farmers? 
No. The subsidy element of finance provided to support early-stage agricultural enterprises is used for two purposes: i) to overcome legitimate “market failures”; and ii) to provide infrastructure services to smallholder farmers at reduced cost. Any large-scale commercial farmers who receive access to infrastructure services have to pay full cost-recovery rates.
Capital invested by RM HOLDINGS in early-stage agricultural development will create value over time. Businesses will be sold on to investors at the market price, and any value created through AgDevCo’s activities will be paid to RM HOLDINGS and reinvested in further agricultural development in sub-Saharan Africa. Therefore subsidies do not accrue to the commercial farmers. However, their entry costs and risks are reduced and therefore there will be a lot more private investment in the sector.

* Does RM HOLDINGS provide subsidies for smallholder farmers? 
Smallholder farmers will not always be able to afford to pay cost-recovery charges for the provision of agriculture-supporting infrastructure and other services provided by AgDevCo. Therefore explicit subsidies will be targeted on extending access to improve services by small farmers on a sustainable basis at affordable cost.

* How will you get in touch with us?
If you’ve applied on-line and have included your e-mail address, we will contact you via e-mail. Please ensure the e-mail address you provide is accurate and is one you access regularly.

* Can I place a Strike Price to sell my Rough Rice if the market reaches a certain price? Open or Close
Yes.  If you are interested in participating in a “Strike Price Contract” please contact:
Mr Carlos R. Muhuga
Office + (255) 717 162 336
Cell + (255) 787 957 272

Mr R. Muhuga
Cell + (255) 754 284 974

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"I have known RM HOLDINDS for over 10 years and when it came time to make business with them, I did not have to think twice who I would have be in charged of representing my interests. RM HOLDINDS has got to be the most knowledgeable in their services and products . I found working with them a joy and emanates a sense of trust-worthiness that makes you feel very secured. RM HOLDINGS are a true professional in every sense of the word, and puts their clients interests far above their own" by Peter Ngika Katemi, CEO at Just Africa Co. Ltd

Contact Us

For more information or any enquiry please dont hesitate to contact us through our contact information below.

Address: Kilwa Road, Tuangoma, P.o Box 100170, DAR ES SALAAM, TANZANIA.
Telephone:+255 787 957 272
Mobile:+255 717 162 336
Others:+255 754 284 974

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