Introduction

Ghana-based agri-tech innovator, Oyster Agribusiness, recently closed a $2 million funding round to expand its climate-resilient agricultural model. The funding, led by Pangea Africa Limited and bolstered by support from Root Capital, RDF Ghana, and Sahel Capital’s Social Enterprise Fund for Agriculture in Africa (SEFAA Fund), is poised to boost the company’s mission of fostering sustainable agricultural practices across Ghana.

Scaling Up: Expanding Climate-Smart Agricultural Solutions

With this capital infusion, Oyster Agribusiness aims to scale its operations, extend support to more smallholder farmers, and amplify its climate-smart initiatives. In an industry vulnerable to climate disruptions, Oyster’s efforts focus on fortifying Ghana’s agricultural sector through innovative practices and technology.

Building a Resilient Agricultural Ecosystem

Established in 2018, Oyster Agribusiness empowers smallholder farmers by providing access to sustainable inputs, expert agronomic guidance, and reliable market avenues for their produce. The company leverages advanced technologies, using seeders for optimized planting and drones for precise crop spraying. Over its five years of operation, Oyster has provided over GH¢60 million ($3.8 million) in support to farmers, positively impacting 4,500 smallholder farmers, cultivating over 20,000 acres, and supplying more than 25,000 tons of produce to local and international markets.

CEO Edmond Kombat’s Vision for the Future

Reflecting on this milestone, Oyster Agribusiness CEO Edmond Kombat stated:

“This investment is a testament to the impact we’ve made with smallholder farmers and the tremendous potential we see in scaling our operations. Together, we are working toward a more sustainable, inclusive, and resilient agricultural ecosystem in Ghana.”

Continued Growth in Funding and Expansion of Sustainable Agriculture

Earlier in August 2023, Oyster Agribusiness received an additional $310,000 in grants and debt funding to support its vision for sustainable agriculture, with a focus on gender inclusion and talent development. This investment adds momentum to the company’s ongoing initiatives in empowering local farming communities and promoting sustainable practices.

Ghana’s Agricultural Market: A Path to Expansion

Ghana’s agricultural market, currently valued at approximately $3.40 billion, is projected to reach $3.87 billion by 2029, with an estimated annual growth rate of 2.65%. Given agriculture’s crucial role in Ghana’s economy, agritech firms like Oyster Agribusiness are essential to enhancing productivity and adapting to modern challenges within the sector.

Addressing Challenges: Bridging Agriculture and Technology to Engage the Youth

Despite agriculture’s centrality to the Ghanaian economy, there is a growing need to attract youth to the sector. Ishak Shaibu, Vice Principal of Kwadaso Agric College, has emphasized the importance of integrating IT skills with agricultural training to increase youth engagement in farming. Shaibu noted that while agriculture remains the backbone of Ghana’s economy, youth interest in farming is declining.

A Broader Trend in Africa’s Agritech Landscape

Oyster Agribusiness’s funding aligns with a larger trend in African agritech. According to Statista, cumulative investment in agricultural technology startups across Africa surpassed $864.2 million in 2023, highlighting growing investor confidence in agritech’s potential to drive sustainable change on the continent.