2021-10-14
The Afghan business climate is widely regarded as challenging to grow a business, access the global market and contribute to sustainable economic development. Despite these perceptions the country is rapidly developing itself into a leading frontier market with ample opportunities, such as in the saffron supply chain where Rumi Spice started out. An Afghan business that is commercially thriving while also making a difference for the community is exemplified by Rumi, the leading Afghan spices brand working directly with Afghan rural farmers and selling exclusively in the US. Rumi Spice has been an investee company of InFrontier’s Afghanistan fund since 2018. Despite taking a substantial demand hit from key US-based restaurants and retail sales channels as a result of the COVID-19 pandemic, Rumi Spice was able to grow in 2020, in particular by more than doubling their e-commerce business. In addition to a focus on building a US-based distribution network, the success of the company can be attributed to their clear commitment to high ESG standards in the supply chain and a focus on paying fair wages: women saffron pickers in Rumi’s network earn 40% more than market standard. Over the years, Rumi has also worked with farmers to employ best practices. In 2020, Rumi Spice launched four new spice categories including cumin, coriander, fennel and dill. In early 2021, Whole Foods Market launched Rumi nationwide. With financing provided by DGGF amongst other investors, Rumi Spice has become the leading spices brand in the US. DGGF was one of the two anchor investors, together with CDC Group, to invest in InFrontier: the first private equity fund to invest in Afghanistan. DGGF invested in InFrontier in 2016.
