Sahel Capital, the fund manager for the Social Enterprise Fund for Agriculture in Africa (SEFAA), has approved a term and working capital loan of approximately $610,000 to support Oyster Agribusiness, a Ghanaian-based company.
Oyster Agribusiness plays a pivotal role in connecting smallholder farmers in the Kintampo region of Ghana to large fast-moving consumer goods (FMCG) companies and export markets. By bypassing traditional aggregators who often take a larger share of the profit margin, Oyster enables farmers to earn more from their produce. Currently, the company partners with 4,500 farmers across the region.
Deji Adebusoye, a partner at Sahel Capital, highlighted the significance of Oyster’s work, stating;
Oyster Agribusiness is crucial in bridging the gap between rural farmers and FMCG companies that typically lack the infrastructure to source directly. Through Oyster’s efforts, these companies gain greater traceability and compliance with global standards while improving the livelihoods of smallholder farmers.
Oyster Agribusiness has established a robust farmer database, providing transparency and enabling FMCG partners to trace the origin of their agricultural inputs. This partnership also allows the companies to better assess the impact of their sourcing activities on the farmers’ well-being.
Edmond Kombat, CEO of Oyster Agribusiness, emphasized the enterprise’s mission to empower farmers who are often underpaid within the value chain;
We recognized the challenges farmers faced and set out to enhance their livelihoods by securing better market access and fair pricing. With SEFAA’s support, we aim to expand our reach and create more opportunities for farmers.
Since its inception, Oyster Agribusiness has onboarded 4,500 farmers and established relationships with 14 clients committed to directly purchasing commodities from its network.
Sahel Capital, a prominent agribusiness investment firm, manages two key funds: the Fund for Agricultural Finance in Nigeria (FAFIN), which supports agribusiness SMEs in Nigeria, and SEFAA, which provides structured debt solutions to agribusiness SMEs across 13 sub-Saharan African countries. The firm is also in the process of raising capital for a successor fund, the Sahel Capital Agribusiness Fund II, to explore further investment opportunities in West Africa.
This loan from SEFAA will enable Oyster Agribusiness to scale its operations, further bridging the gap between smallholder farmers and large FMCG companies, and ultimately improving the livelihoods of farmers in the Kintampo region.
