Farmerline secures GH¢97m to help African farmers and agribusinesses
Farmerline Group, the Africa continent’s amazon for African farmers has secured an estimated GH¢97 million in Pre-Series ‘A’ investment and working capital to strengthen its supply chain for agribusinesses.
The investment would also help to reduce the cost of farming; and increase yield for farmers on the continent through the deployment of AI technology and local infrastructure.
The lenders of the working capital include; DEG, Rabobank, Ceniarth, Rippleworks, Mulago Foundation, Whole Planet Foundation, Netri Foundation and Kiva.
The Farmerline Group made this known in a press release copied to the Ghana News Agency on Tuesday.
It said: “Today, farmers feed one-third of the world and will need to increase production by 70 per cent to cater for nine billion people by 2050.” a statement issued by Farmerline and copied to the Ghana News Agency on Tuesday has said.
“Currently, post-harvest losses of food cereals in Sub-Saharan Africa are estimated at $4 billion due to factors such as access to timely agronomic education. Meanwhile, fertilizer use is 14kg per hectare as compared to 120kg for their counterparts globally,” it stated.
The release said in recent times, Africa’s agribusiness sector had been coined the ‘new oil’ and was predicted to reach US$ one trillion by 2030 and that the continent would need eight times more fertilizer and six times more improved seeds to realize its full agricultural potential.
It said Farmerline’s marketplace combines digital tools, logistics, field agents, farm resources and
Agribusiness partnerships to support African farmers with access to high-quality fertilizer and
Seeds; free education on climate-smart farming practices; and connections to international markets.
“The company’s in-house technology platform Mergdata is also licensed by global food traders and
Manufacturers, who use its customizable tools to improve the lives of farmers around the world,” it stated.
The release said the Pre-Series A investment, led by Acumen Resilient Agriculture Fund (ARAF) and FMO, the Dutch entrepreneurial development bank, is Farmerline’s first equity raise since launching with a $600 grant almost a decade ago.”
The other investor of the equity round is Greater Impact Foundation, it stated, and that to date; the company had digitized over one million farmers through partnerships across 26 countries.
It has employed over 200 people in Ghana; and evolved Mergdata into an AI-powered super platform for supply chain intelligence like crop yield prediction, fertilizer demand forecasting, product traceability, and Agribusiness credit scoring for asset and fertilizer financing.
It noted that when COVID hit in 2020, over 16,000 agribusiness firms closed down in Ghana, saying however that those who did pull through presented themselves as some of the most efficient and sustainable ways to reach Africa’s 33 million smallholder farms, hence, Farmerline works through agricultural SMEs to ultimately serve more farmers.
Mr Alloysius Attah, the Farmerline Co-founder on his part said: “At the peak of the pandemic, local agricultural small and medium enterprises (SMEs) played a vital role in ensuring food security by supporting farmers with agricultural inputs and distributing to final consumers.” –
“With this new investment, we will scale the AI capabilities within Farmerline’s Mergdata platform to help increase the income of farmers and agribusinesses; supporting them to access farm inputs; supplying them with assets such as tricycles, tractors and threshers; and connecting them to global markets,” he stated.
He said Farmerline would also invest in local infrastructure and logistics to support distribution, and accelerate the industry’s marketplace currently across Ghana with plans to deepen relations with partners in Ivory Coast.
“This investment is a pivotal moment for our industry and a chance for us all to transform the way we work together as a community to benefit the lives of farmers who currently feed one-third of the world … and will need to increase production by 70 per cent to feed nine billion people in 2050. A dynamic agribusiness sector is crucial to the success of this.” Mr Attah said.
Mr Emmanuel Owusu Addai said: “Farmerline’s goal has always been to create lasting wealth for farmers and their communities.
“To do that at scale, we’re expanding our operations across regions and are actively on the lookout for the best talent to help build an efficient supply chain that saves money for agribusinesses, reduces the cost of farming and the time it takes for people to get services to rural areas. We must ensure that local agribusinesses grow because when they do, we all succeed.”
Tamer El-Raghy, Managing Director of ARAF said: “We’re honoured to co-lead this investment round in Farmerline with FMO and excited to partner with world-class Ghanaian entrepreneurs like Alloysius and Emmanuel.”
Maurice Scheepens, Senior Investment Officer for FMO’s Venture Programme, added: “We are honoured to be part of Farmerline’s first institutional capital raise together with our partner ARAF.”
“Farmerline is an excellent addition to FMO’s Ventures Programme portfolio, which aims to empower local entrepreneurs that leverage disruptive technology for a better world.
“We are impressed with the platform the local founding entrepreneurs have been able to build and look forward to leveraging FMO’s network and value-add offerings to sustainably support Famerline’s continued growth,” he said.
Source: GNA