Oyster Agribusiness, a pioneering agri-tech company based in Ghana, has successfully secured $2 million in funding to expand its climate-smart agricultural operations. This funding round was spearheaded by Pangea Africa Limited, a prominent business development service provider, with additional support from Root Capital, RDF Ghana, and Sahel Capital’s Social Enterprise Fund for Agriculture in Africa (SEFAA FUND).
The infusion of capital will enable Oyster Agribusiness to scale its operations, extend its reach to more farmers, and enhance its climate-smart agricultural initiatives. These efforts are aimed at bolstering the resilience of Ghana’s agricultural sector amidst growing climate challenges.
Founded in 2018, Oyster Agribusiness is dedicated to empowering smallholder farmers by providing sustainable agricultural inputs, advanced agronomic practices, and a dependable market for their produce. The company leverages technology to optimize its input distribution and yield, employing seeders for planting and drones for spraying.
Over the past five years, Oyster Agribusiness has made significant strides, reportedly disbursing over GH¢60 million ($3.8 million) to smallholder farmers. The company has positively impacted the lives of 4,500 smallholder farmers, cultivated over 20,000 acres of farmland, and supplied more than 25,000 tons of agricultural produce to both local and international markets.
Edmond Kombat, the CEO of Oyster Agribusiness, remarked;
“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.
In August 2023, Oyster Agribusiness also raised $310,000 in grant and debt funding to further its mission of promoting sustainable agriculture, gender inclusion, and talent management.
The Ghanaian agriculture market is projected to grow from an estimated $3.40 billion in 2024 to $3.87 billion by 2029, with a compound annual growth rate (CAGR) of 2.65% during the forecast period (2024-2029). Agriculture remains a critical component of Ghana’s economy, and the contributions of agritech companies like Oyster Agribusiness are vital to the sector’s improvement.
Last year, Ishak Shaibu, vice principal of Kwadaso Agric College in the southern Ashanti region, highlighted the importance of integrating agricultural skills with IT training to attract more young people to the sector. He noted that while agriculture is the backbone of Ghana’s economy, there is a declining interest among the youth in pursuing farming careers.
According to Statista, the cumulative funding for agricultural technology startups in Africa reached over $864.2 million in 2023, underscoring the growing investment in the continent’s agritech sector.
