Moses Katala, CEO of Magofarm
Founded in 2019, Magofarm is a Rwandan company that makes animal feed proteins from insects. Founder Moses Katala (23) answers our questions.
1. Give us your elevator space.
We are an insect technology startup breeding a species of insect called Black Soldier Fly as an alternative protein ingredient for animal feed. In particular, we target chicken and pig feed formulations.
2. How do you make the product?
We have a production cycle, but it all boils down to breeding the black soldier fly. Once the eggs hatch, they are fed organic waste substrate until they become larvae. These larvae are very rich in protein, around 60%. At this point we harvest, process and sell the product.
3. How did you finance your startup?
We booted when we started it as a research project. We initially used our own money, but later managed to raise funds from an entrepreneurial competition called GoGettaz. This currently funds most of our activities.
4. Now if you were given $ 1 million to invest in your business, where would it go?
Directly into the production facility. The plant we currently have on site is a pilot plant and limits our production capacity. We would invest in a large facility to produce bulkier protein components for the local market. So 60% would go to the manufacturing facility: sourcing equipment, land, labor and everything related to construction.
The balance would be working capital to cover other expenses such as salaries.
The process of making the animal feed protein using the black soldier flies.
5. What risks is your company exposed to?
There are two areas that we consider risky. The first is the availability of raw materials. Our raw material is organic waste. If at any point we are unable to procure enough organic waste to keep production going, we would not achieve our goals. I would consider this to be the number one risk. We mitigate this by making sure we have as many different organic waste sources as possible.
The second risk is that the use of insects to formulate feed is a relatively new industry. Some of our potential customers do not understand the concept and are reluctant to adjust to this new source of protein. We need to educate them and present them with scientific facts.
6. What has proven to be the most successful form of marketing so far?
Our business model is B2B, so we target feed mills and larger poultry farmers. We email decision makers directly and give them a call. It was effective.
Magofarm’s pilot breeding facility is located in Bugesera, Rwanda.
7. Describe your most exciting entrepreneurial moment.
At this point we increased our pre-seed funding. It is difficult to raise funds here. When you finally start raising money, it’s exciting.
8. Tell us about your biggest mistake and what you learned from it.
As a startup founder, my biggest mistake was hiring someone and trusting them to do the job with minimal supervision. I would find out later that they weren’t doing what they were supposed to, and they had misled me into making decisions that weren’t ideal. I’ve learned that I should always be up to date, even when I hire someone to do something. never let a person with minimal supervision completely run a critical aspect of my business.
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