april 2014 opportunity assessment agribusiness...

opportunity assessment: Agribusiness investment in northern ghAnA

April 2014

USAID Financing Ghanaian Agriculture Project USAID | FinGAP

This publication was prepared for the United States Agency for International Development by CARANA Corporation

USAID’s Financing Ghanaian Agriculture Project (USAID-FinGAP)USAID-FinGAP, managed by CARANA Corporation and implementing partner AZMJ, is a five-year program with the goal of increasing access to finance and investment

in the soy, rice and maize sectors in the North of Ghana, and improving ancillary services so that agribusiness firms can operate at full capacity and expand levels of food

security in the country. The project contributes to USAID’s overall goal of fostering broad-based, sustained and inclusive economic growth in Ghana.

USAID-FinGAP addresses a key constraint restricting the development of commercial agriculture and obtaining full food security in Ghana – access to finance necessary

to enable investment in agricultural value chains. USAID-FinGAP uses a comprehensive approach to facilitate agriculture related investment, engaging a broad range

of Ghanaian Financial Institutions (banks, private equity firms, leasing companies, investment funds, etc.) in providing agriculture oriented financing, in partnership with

strategic investors and buyers of rice, maize and soya in Northern Ghana. USAID-FinGAP also facilitates investment in the agriculture sector in Ghana to complement

other Government of Ghana (GOG) and donor programs aimed at expanding commercial agriculture.

To launch its activities, CARANA Corporation and AZMJ conducted initial, field-based assessments of Ghana’s agribusiness, finance and business advisory services (BAS)

along the target value chains of rice, maize and soy. These assessments were conducted in late 2013 by a team of project staff and international consultants traveling

from Accra to Tamale and its surrounding area, and drew from information gathered in interviews with dozens of participating financial institutions (PFI), Small Medium

including Large Enterprises (SMiLEs) and BAS providers. This document is an executive summary of these initial assessments, the goal of which is to inform a conversation

between public and private investors, agribusinesses, financial institutions and donor agencies, focused on how to align resources and efforts in a way that maximizes the

potential of Ghana’s North to become a highly productive agricultural center able to serve the country’s staple foods market.

This assessment is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of CARANA Corporation and do not necessarily reflect the views of USAID or the United States Government.

i. ghAnA’s AgriculturAl mArket

Over the last decade, Ghana has achieved impressive growth rate between 5-8% annually, and is now classified a “middle income” country. The World Bank’s “Doing Business” index ranks Ghana as a Top 10 Reformer and the best performer in West Africa by a significant margin. According to The World Bank’s “Doing Business” 2013 report, the average time to start a business in Ghana is 12 days, down from 33 days in 2010 and 129 days in 2003. Ghana’s stable democracy, rule of law and investor protection mechanisms are contributing to investor confidence and are impacting FDI flows; in 2012, Ghana attracted $4.9 billion in FDI, second in the region only to Nigeria. The Government of Ghana (GoG) is actively encouraging foreign investment, and has also developed an investment plan to transform its agriculture sector (the Ghana Commercial Agriculture Project, or GCAP).

Ghana’s agriculture sector is a key driver of the Ghanaian economy, contributing 25.6% of GDP in 2011. With the exception of a highly developed cocoa sector in the South, the country has historically not been a major commercial producer of staple foods. Most staple food production in the North is characterized by small-holder farms growing subsistence crops such as maize, groundnut, sorghum and rice; in the South, cassava, yam and plantain are produced for local consumption.

Rapid urbanization, rising per-capita income and increased consumption are driving significant increases in demand for poultry and the staple crops of soy, rice and maize. If current consumer trends continue, Ghana faces an imminent shortage of both rice and maize. By next year, the government projects that imports of rice will surpass 1 million tons and imports of

maize will surpass 500,000 tons; at the same time local production will account for only 20% of rice consumption and 60% of maize consumption. Although it is improving, Ghana’s agricultural productivity is considered low, so significant opportunity exists to meet this growing demand through scaling up domestic production. Moreover, while food prices have fallen from their recent peaks, they are nevertheless expected to remain above historic levels in the medium term.

With increased grain production, the need for mechanization, agricultural inputs, warehousing and storage is also growing. The city of Tamale is uniquely situated to serve as a hub for the transport of grains south for milling and processing in the major food centers of Accra and Kumasi, and as a location for new processing facilities.

ii. FeAtures And Attributes oF northern ghAnA

The northern savannah zone is Ghana’s “breadbasket”, supplying most of the nation’s rice, millet, sorghum, yam, tomatoes, cattle, sheep, goats and cotton to Ghana’s largest markets in the South, to Kumasi (estimated population of 2 million) in the Ashanti region, and to the Greater Accra region (estimated population of 4 million) located on the country’s southern coast. Ghana shares borders with Burkina Faso to its North, Togo to its East, Côte d’Ivoire to its West, and the Gulf of Guinea.

Arable land is abundant in Ghana’s North, which is comprised of the Upper East, Upper West, Northern and some parts of the Brong Ahafo and Volta regions. Northern Ghana is relatively unpopulated compared to the rest of the country; 80% of Ghana’s population lives below the 8th parallel.

A two-lane highway in relatively good condition and uncongested is the main physical infrastructure supporting North-South trade. USAID-FinGAP defines Northern Ghana as the area north of the 8th parallel, constituting the regions of Northern, Upper East, Upper West and some parts of Brong Ahafo and Volta regions.

Lake Volta, formed after the Akosombo Dam was completed in 1965, is another major transportation route from North to South Ghana, providing a waterway for ferries and cargo watercraft. The Akosombo Dam provides hydroelectric power for Ghana, as well as for neighboring Togo and Benin.

Tamale, the largest city in Ghana’s North situated near agricultural production areas, has the potential to become a major agricultural center. Its location is ideal for serving as an aggregation/warehousing point and

transport center to export routes north into Burkina Faso and other Sahelian countries, as well as south to the major centers of Kumasi and Accra. Tamale is located at the northern edge of Lake Volta, from where it can expedite transportation of agricultural products via two southern routes: to Kumasi down the western side of Lake Volta, and to Accra/Tema on the eastern side of the lake.

NORTHERN

BRONG-AHAFO

UPPERWEST

UPPEREAST

VOLTA

ASHANTI

EASTERN

CENTRALWESTERN

GREATER ACCRA

Togo

Ghana

Coted'Ivoire

BurkinaFaso Benin

8th parallel

Wa

Bolgatanga

Tamale

Kumasi

Techiman

Accra

3

Ghana is home to more than 20 large-scale, commercial food processors involved in the soy, rice and maize value chains; many of which are located in the North. Many of these processing facilities operate under capacity due to limited access to agricultural product supply, as well as limited

financing to purchase increased levels of supply. Northern Ghana is also home to approximately 150 warehousing facilities relevant to the soy, rice and maize value chains, most of which are in good condition, and many of which are not utilized at full capacity for similar reasons.

iii. investment opportunities highlighted

In October of 2013, a team of researchers traveled to Ghana to conduct the USAID-FinGAP Investment and Partnership Opportunities Mapping Assessment. The Assessment Team identified an initial set of promising SMiLEs (Small, Medium including Large Enterprises) agribusiness investments and/or financing opportunities in the rice, maize and soy value chains, with the potential to benefit thousands of smallholder farmers in the North of Ghana by improving livelihoods, food security and nutrition. The Assessment Team followed a value chain approach, meaning that not all the investment opportunities identified were physically located north of the 8th parallel. However, every opportunity outlined assumes a demand pull for Northern agricultural production in these value chains, as well as shared value opportunities for Northern Ghana’s male and female producers.

The report identifies an initial set of 29 commercially viable and relevant agribusiness investment and financing opportunities within the three Northern Regions and parts of two other regions of Ghana above the 8th

parallel (Northern, Upper East, Upper West, and parts of Brong Ahafo and Volta). Those that take place outside of this region, however, implicate significant production increases above the 8th parallel in the target value chains. The investment opportunities fall within the following categories: Processing, Production, Irrigation, Inputs, PFI Financing, Mechanization, Warehousing, Marketing.

The types of investment and/or financing identified within the initial mapping exercise fall into the following categories:

• Working capital (short term, up to 1 year financing), including pre-planting or offtake purchase arrangements

• Medium-term financing (up to 3 years), including equipment purchasing and/or warehouse construction

• Long-term financing (more than 3 years), such as Greenfield processing facility projects or upgrades to existing facilities, irrigation infrastructure, or other ventures.

The financing and investment required for the investments initially identified ranges from US$16,000 to US$20 million, with the average financing and investment ranging from US $4 - 6 million. These investments, as well as their GPS locations and brief descriptions can be found on a Google Map at the following address: http://goo.gl/2O0OIV

In addition to the above publicly-available map, USAID-FinGAP is in the process of developing an additional mapping system in order to stimulate future agribusiness investment in Northern Ghana. This new interactive software will allow SMiLEs, potential lenders and investors to identify and graphically visualize investment opportunities based on estimated production increases in the maize, rice and soy value chains in Northern Ghana. This interactive software will be premiered at the Ghana Agribusiness Investment Summit on April 29, 2014, and will be publicly available online soon after.

http://goo.gl/2O0OIV

No.

Inve

stm

ent

Typ

eN

ame

Bri

ef D

escr

ipti

onIn

vest

men

t V

alue

Typ

e of

F

inan

cing

Typ

e of

D

eal

Reg

ion

Loc

atio

n Id

enti

fied

Lan

d A

cqui

red

Val

ue

Cha

inLo

w E

ndH

igh

End

1Pr

oces

sing

3K &

A In

dust

ries

Lim

ited

Proc

essin

g fa

cilit

y up

grad

e;

inve

stm

ent i

n ne

w p

roce

ssin

g eq

uipm

ent;

esta

blish

out

grow

er

sche

me

2,2

00,0

00

2,5

00,0

00

CA

P-EX

; wor

king

C

apita

lD

ebt,

Equi

ty,

Mez

anni

ne

Fina

nce

Ash

anti

Yes;

(exi

stin

g in

fras

truc

ture

)Ye

sSo

y

2Pr

oces

sing

Agr

icar

eA

cces

s to

raw

mat

eria

ls an

d ag

ro

equi

pmen

t to

incr

ease

pro

duct

ion

1,0

00,0

00

4,0

00,0

00

Wor

king

cap

ital

Deb

t, Eq

uity

A

shan

tiYe

s; (e

xist

ing

infr

astr

uctu

re)

Yes

Mai

ze, S

oy

3Pr

oduc

tion

Alh

aji A

lhas

san

Imor

oPu

rcha

se tw

o tr

acto

rs to

exp

and

the

farm

er b

ase,

and

sho

rt-t

erm

lo

ans

for

agro

inpu

ts to

incr

ease

pr

oduc

tion

100

,000

1

50,0

00

CA

P-EX

; W

orki

ng c

apita

l; D

ebt

Nor

ther

nYe

s; (e

xist

ing

infr

astr

uctu

re)

Yes

Soy

4Pr

oces

sing

AM

SIG

Incr

ease

inpu

ts to

exp

and

smal

lhol

der

rice

acre

age

and

yiel

ds

at th

ree

exist

ing

irrig

atio

n sit

es

300

,000

4

00,0

00

CA

P-EX

Deb

t, Eq

uity

, M

ezan

nine

Fi

nanc

e

Nor

ther

nYe

sYe

s;

smal

lhol

ders

ha

ve la

nd a

cces

s ar

rang

emen

ts

Ric

e

5Pr

oces

sing

Ani

nkor

ah F

arm

sIn

crea

se fe

ed in

puts

to e

xpan

d pr

oduc

t lin

es 5

00,0

00

1,0

00,0

00

Wor

king

Cap

ital

Deb

t A

shan

tiYe

s; tw

o sit

es

outs

ide

Kum

asi

Yes

Poul

try

(Mai

ze, S

oy)

6Pr

oduc

tion,

Ir

rigat

ion

Arim

a Fa

rms

Gha

na L

td.

Expa

ndin

g flo

od ir

rigat

ion

for

the

prod

uctio

n of

ric

e, s

oy a

nd m

aize

10,

000,

000

11,

000,

000

CA

P-EX

; W

orki

ng C

apita

lD

ebt,

Equi

tyN

orth

ern

Yes

Yes

Ric

e, M

aize

, So

y

7Pr

oduc

tion,

Pr

oces

sing

Avn

ash

Indu

strie

sIn

puts

(raw

mat

eria

l and

eq

uipm

ent)

to e

xpan

d op

erat

ion

50,

000,

000

60,

000,

000

CA

P-EX

; W

orki

ng C

apita

lD

ebt,

Equi

ty

Nor

ther

nYe

sYe

sR

ice,

Soy

8Pr

oces

sing

Gha

na N

uts

Esta

blish

pou

ltry

feed

mill

3

,000

,000

5

,000

,000

C

AP-

EXG

reen

field

, Eq

uity

Nor

ther

nN

oN

oSo

y, M

aize

9Pr

oces

sing

Gol

den

Web

Incr

ease

inpu

ts to

max

imiz

e so

y pr

oces

sing

cap

acity

5

,000

,000

1

0,00

0,00

0 W

orki

ng c

apita

lD

ebt

Ash

anti

Yes;

two

oper

atio

nal

faci

litie

s in

Kum

asi

Yes

Soy

10Pr

oduc

tion

Gun

daa

Prod

uce

Com

pany

Proc

ure

trac

tors

and

fina

ncin

g fo

r pr

e-cr

op s

uppo

rt to

incr

ease

ou

tgro

wer

pro

duct

ion

effici

ency

100

,000

1

,300

,000

C

AP-

EX;

Wor

king

Cap

ital

Deb

tN

orth

ern

Yes

Yes

Ric

e, M

aize

, So

y

11Pr

oduc

tion,

Ir

rigat

ion

Hik

ma

Farm

sEx

pand

pro

duct

ion

of m

aize

, soy

an

d ric

e an

d to

intr

oduc

e ne

w

irrig

atio

n te

chno

logy

to fa

rmer

s

400

,000

4

00,0

00

CA

P-EX

and

w

orki

ng c

apita

lD

ebt,

Equi

tyN

orth

ern

Yes

Yes

Ric

e, M

aize

12Pr

oces

sing

K. A

sant

e Fa

rms

Expa

nd e

gg a

nd b

roile

r pr

oduc

tion,

pro

cess

ing

and

pack

agin

g fa

cilit

y

2,0

00,0

00

3,0

00,0

00

CA

P-EX

; wor

king

ca

pita

lEq

uity

, M

ezza

nine

Fi

nanc

e

Ash

anti

Yes;

faci

lity

oper

atio

nal i

n Ku

mas

i

Yes

Poul

try

(Mai

ze, S

oy)

13Pr

oduc

tion

Kha

rma

Farm

sPu

rcha

se o

ne tr

acto

r to

exp

and

farm

er b

ase,

sho

rt-t

erm

loan

to

proc

ure

agro

inpu

ts a

nd in

crea

se

prod

uctio

n

120

,000

1

55,0

00

Wor

king

Cap

ital;

CA

P-EX

Deb

tN

orth

ern

Yes;

(exi

stin

g in

fras

truc

ture

)Ye

sR

ice,

Mai

ze,

Soy

14In

puts

Lexb

ok

Inve

stm

ents

Expa

nsio

n of

see

d nu

rser

y op

erat

ion

1,0

00,0

00

1,5

00,0

00

Wor

king

cap

ital

Equi

tyN

orth

ern

Yes

Yes

Ric

e, M

aize

, So

y

15PF

I Fin

anci

ngM

asar

a N

'Arz

iki

Expa

nd o

utgr

ower

sch

eme

and

prom

ote

outg

row

ers'

acce

ss

to fi

nanc

e by

dev

elop

ing

loan

pr

oduc

ts

1,0

00,0

00

2,0

00,0

00

Wor

king

Cap

ital

Deb

tU

pper

W

est,

Upp

er E

ast,

Nor

ther

n

Yes

Yes

Mai

ze

16Pr

oces

sing

MFU

M F

arm

sA

ctiv

ate

com

mer

cial

feed

mill

and

ca

pita

lize

on e

xist

ing

fixed

ass

ets

1,5

00,0

00

2,0

00,0

00

Wor

king

Cap

ital

Equi

tyA

shan

tiYe

s; (e

xist

ing

infr

astr

ucut

re)

Yes

Soy,

mai

ze

5

No.

Inve

stm

ent

Typ

eN

ame

Bri

ef D

escr

ipti

onIn

vest

men

t V

alue

Typ

e of

F

inan

cing

Typ

e of

D

eal

Reg

ion

Loc

atio

n Id

enti

fied

Lan

d A

cqui

red

Val

ue

Cha

inLo

w E

ndH

igh

End

17Pr

oduc

tion;

Pr

oces

sing

Naa

win

Ent

erpr

iseA

cqui

re tr

ansp

ort a

nd h

arve

stin

g eq

uipm

ent t

o su

ppor

t far

mer

s' go

al o

f in

crea

sing

acre

age

and

enga

ging

in p

re-fi

nanc

ing

prog

ram

60,

000

150

,000

C

AP-

EX;

Wor

king

cap

ital

Deb

tA

shan

tiYe

sYe

sR

ice

18Pr

oces

sing

Nut

s fo

r G

row

thEs

tabl

ish p

oultr

y fe

ed m

ill, s

hea

and

soy

crus

hing

pla

nt, o

il re

finer

y an

d bi

omas

s en

ergy

pla

nt

8,0

00,0

00

10,

000,

000

CA

P-EX

; W

orki

ng c

apita

l G

reen

field

, D

ebt,

Equi

tyN

orth

ern

Yes

Yes

Soy,

Mai

ze

19Pr

oduc

tion

and

Proc

essin

gPr

emiu

m F

oods

Expa

nd o

utgr

ower

sch

eme

by

incr

easin

g ac

cess

to fa

rmin

g eq

uipm

ent a

nd m

echa

niza

tion

serv

ices

; pro

cess

ing

and

stor

age/

war

ehou

sing

capa

city

, as

wel

l as

trai

ning

ser

vice

s

15,

000,

000

20,

000,

000

CA

P-Ex

; Wor

king

C

apita

lD

ebt

Ash

anti/

Nor

ther

nYe

sYe

sR

ice,

Mai

ze

20Pr

oces

sing

Prem

ium

Foo

dsEs

tabl

ish p

oultr

y fe

ed m

ill

3,0

00,0

00

5,0

00,0

00

CA

P-EX

; W

orki

ng C

apita

lG

reen

field

, D

ebt,

Equi

tyN

orth

ern

No

No

Soy

, Mai

ze

21PF

I Fin

anci

ngPr

oNet

MFI

C

apita

lizat

ion

Fina

ncin

g to

ext

end

MFI

cre

dit t

o hi

gh n

umbe

r of

fem

ale

pro

duce

rs 5

0,00

0 1

00,0

00

Wor

king

Cap

ital

Deb

tU

pper

W

est

Yes

Yes

Soy

22Pr

oduc

tion

Sava

nnah

Far

mer

s &

Mar

ketin

g C

ompa

ny L

td

Expa

nd in

put p

rovi

sion

to in

crea

se

yiel

ds; w

eath

er a

nd tr

ansp

orta

tion

insu

ranc

e

500

,000

1

,200

,000

W

orki

ng C

apita

lD

ebt

Nor

ther

nYe

sYe

s; fa

rmer

s ow

n la

ndM

aize

, Soy

23M

echa

niza

tion

Shuk

rah

Ltd

Esta

blish

trac

tor

and

land

pre

p to

ol p

acka

ge fo

r fa

rmer

s in

ta

rget

ed h

igh-

dem

and

loca

les

10,

000,

000

15,

000,

000

CA

P-EX

and

W

orki

ng C

apita

lD

ebt

Nor

ther

nYe

sYe

s R

ice,

Mai

ze,

Soy

24Pr

oduc

tion,

Ir

rigat

ion

Sola

r H

arve

st

Lim

ited

Acq

uire

key

equ

ipm

ent a

nd in

puts

to

exp

and

irrig

atio

n op

erat

ion

600

,000

1

0,60

0,00

0 C

AP-

EX a

nd

Wor

king

cap

ital

Deb

t, Eq

uity

Nor

ther

nYe

sYe

sR

ice,

Soy

, m

aize

25Pr

oduc

tion,

W

areh

ousin

g an

d Pr

oces

sing

Tono

Irr

igat

ion

Site

Thr

ee o

ptio

ns o

ver

shor

t-to

-lo

ng te

rm: a

ctiv

ate

inpu

t sup

ply/

offta

ke s

chem

e; r

efur

bish

ric

e m

ill;

and

priv

atiz

e op

erat

ion.

100

,000

1

,700

,000

W

orki

ng C

apita

l; C

AP-

EXD

ebt,

Equi

tyU

pper

Eas

t, N

orth

ern

Yes

Yes;

land

acc

ess

man

aged

by

com

mun

ities

on

site

Ric

e

26PF

I Fin

anci

ngTu

mu

Coo

pera

tive

Cre

dit U

nion

MFI

fina

ncin

g to

onl

end

to

outg

row

er s

chem

e pa

rtic

ipan

ts

and

prov

ide

trai

ning

on

new

pr

oduc

ts

250

,000

5

00,0

00

Wor

king

Cap

ital

Deb

tU

pper

W

est

Yes

Yes

Mai

ze

27Pr

oduc

tion,

Pr

oces

sing,

W

areh

ousin

g

Vest

er O

il M

ills

Acc

ess

to r

aw m

ater

ials

as in

puts

to

incr

ease

pro

duct

ion,

and

for

capi

tal a

cqui

sitio

n

1,0

00,0

00

4,5

00,0

00

Wor

king

cap

ital;

CA

P-EX

Deb

t, Eq

uity

Ash

anti

Yes;

(exi

stin

g in

fras

truc

ture

)Ye

sSo

y

28M

arke

ting

YeD

ent

Mar

ketin

g ca

mpa

ign

to r

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers expand production, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector: • Delivering sufficient and consistent power and water to major processing

hubs are key roles for the public sector. • To support rapid expansion of agricultural production of staple foods,

the government can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoYaw Adu PokuCEO, 3K and A Ventures Limited+233 (0) 20 054 4747; +233 (0) 24 615 3087

InveStment vAlUe

$2.2 million $2.5 million

mArket oPPortUnItyUrbanization and income growth are stimulating increased demand for poultry and eggs, and therefore soy cake, a key input for poultry feed. There is also growing demand for processed soy for human consumption in the form of oil, milk, and other varieties, as well as in the chemical industries for paint. The current supply of processed soy is unable to satisfy market demand, in part due to heavily underutilized installed capacity among processors. The projected growth of the poultry industry, particularly as companies move into broiler production, ensures that demand will persist, creating promising opportunities for investors to capture this expanding market.

On the input side, smallholder farmers and aggregators face limited access to financial and technical resources, and are challenged to meet the cost, volume and quality requirements of processors. Moreover, centuries-old land ownership structures in Ghana make commercial farm expansion a challenging proposition. Given this, nucleus farms with outgrower schemes have become popular as Ghana seeks to produce sufficient food to meet food security requirements.

3K and A is an established soy processor in Kumasi, selling predominantly soy cake into the local poultry feed market, with $1.6 million per year in current sales. The company procures raw soy from aggregators and farmers in the North. 3K and A has installed capacity to process 3,000 tons of raw soy per year as well as a refinery for edible oil and ample storage. 3K and A has a business plan to invest in new extrusion and refining equipment

from the US, upgrade its processing facility, and implement an outgrower program in the North to ensure input supply. The existing structures are adequate to house new equipment and necessary storage. According to its business plan, 3K and A aims to process 500,000 tons of raw soy over a five year period.

InveStment reqUIreD3K and A seeks a total of $2.2-2.5million in financing. This includes a $300,000 working capital loan to purchase inputs, and $1.9 million-2.2 million to establish an outgrower scheme, upgrade the existing processing facility and procure new extrusion and refining equipment. Equity or mezzanine finance (providing a mix of debt and equity) is appropriate.

Given the potential development impact of this investment for smallholder farmers in the outgrower network and market generation for northern soy producers, this investment is ideal for impact investment funds looking to obtain social returns in addition to financial returns.

The next step for moving this investment forward is engaging a BAS provider who can restructure a non-performing loan of approximately $250,000, which 3K and A cannot currently service. A business plan has already been developed by the company, but additional BAS services could include refinement of this plan, sensitivity analysis, and deal facilitation. Technical assistance is also needed to support 3K and A to establish the out-grower scheme.

1. 3k And A industries limitedGrowing demand for soy poultry feed inputs presents an opportunity for investment in soy processing expansion. An established soy processor in Kumasi seeks to upgrade its processing facility and implement an outgrower scheme for soy production.

vAlUe ChAIn: Soy

AShAntIloCAtIon Identified

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cess

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Deal Type Debt equity Mezzanine Finance GreenFielD Financing cap-eX WorkinG capital

7

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural


hubs are key roles for the public sector. • To support expansion of aquaculture, the government can intensify its

efforts to facilitate land acquisition and land use.

ContACt InFoWilliam Awuku AhiadormeyAgricare’s Managing Director+233 (0) 54 435 2600, +233 (0) 27 367 [email protected]

InveStment vAlUe

mArket oPPortUnItyRapidly expanding poultry and aquaculture industries are stimulating demand for processed and blended animal feed. Many animal feed processors struggle to obtain financing to purchase sufficient supply of maize and soy to run their processing facilities at maximum capacity. Animal feed processors are also challenged in accessing finance for new capital expenditures, such as new machinery to expand production into new markets.

Specifically, tilapia is growing in popularity, and “floating feed” for this fish is not produced in Ghana, creating a market opportunity for Ghanaian animal feed producers. The market size for tilapia feed is estimated at 6,000 tons per year, mostly imported.

Agricare is an animal feed processor based in Kumasi, established in 1968. It currently produces animal feed for poultry and pelletized fish feed for the catfish farming industry, but is looking to enlarge its relatively small fish feed operation. It has the installed capacity to process 30,000 tons of poultry feed annually, but is unable to produce more than 5,000 tons given that it is unable to obtain financing for working capital to purchase inputs. Agricare sources most of its yellow maize (80%) and soy beans (60%) from suppliers

in Ghana’s North. It buys directly from 25 maize aggregators and 20 soy aggregators in the three Northern regions.

InveStment reqUIreDAgricare requires $4 million in short-term, working capital loan to purchase adequate supply of maize and soybeans to run its factory at 100% capacity. It also is seeking $1 million in a medium-term, capital expenditure loan to purchase an extruder for tilapia feed. Agricare has an outstanding balance on a loan worth $322,000 on its existing Buhler mill and pelletizer, purchased in 2006. It has held discussions with an equity investor (ADENIA) regarding its capital requirements.

Agricare has been a recipient of BAS in the past, and could potentially use additional support to facilitate closure of its current negotiations with ADENIA. Agricare submitted a proposal to receive a USAID Feed the Future Partnering for Innovation Grant, but ultimately did not obtain financing, so the firm would like to also use BAS services to develop a stronger proposal and re-submit this for consideration.

2. AgricAreIncreased consumer demand for poultry and f ish are stimulating expansion in local production, presenting an opportunity for f inancing and investment in new and expanded animal feed processing facilities.

vAlUe ChAIn: Maize, and Soy

$1 million $4 million

AShAntIloCAtIon Identified

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FinancingDeal Type Debt equity Mezzanine Finance GreenFielD cap-eX WorkinG capital

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers expand production, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural




ContACt InFoAlhaji Alhassan ImoroOwner+233 (0) 243 703 295

InveStment vAlUe

$100,000 $150,000

mArket oPPortUnItyMany small scale soy farmers lack access to quality inputs, as well as harvesting machinery and transportation of their product to market. Small farmers are also severely underserved in terms of financing for these items. Increased demand for soy products provides an opportunity to fill these needs by providing valuable land preparation, financing for inputs and aggregation services for underserved, small farmers.

Alhaji Alhassan Imoro provides aggregation, financing and input services for 52 farmer groups via three farmer based organizations covering 1,400 acres of soy fields (of which six are women-owned). Most of the farmers he serves are located between 9 and 28 miles from the nearest market. He provides land preparation services with his three John Deere & MF tractors, as well as financing for inputs and aggregation services, for which farmers pay him in bags of grain. Mr. Imoro purchased tractors with a subsidized loan from the Ministry of Finance and Agriculture, which is paid off. He intends to buy two more tractors to expand the numbers of farmers that he serves.

With two new tractors, he could expand his services to an additional 300 farmers, cover an additional 1,000 acres, and provide needed input financing (seeds and fertilizer) to additional farmers.

InveStment reqUIreDAlhaji Alhassan Imoro is seeking short-term financing for inputs (at $240 per farmer for 1,000 farmers, this would equal $240,000), and a medium-term, capital expenditure loan for the two tractors (estimated at $35,000 each, this equals $70,000) either from a financial institution or in the form of a leasing arrangement.

Next steps include providing BAS services to Alhaji Alhassan Imoro to draft a business plan to obtain the needed financing.

3. AlhAji AlhAssAn imoroIncreased demand for soy products presents an opportunity for f inancing and investment in soy aggregation and expanded input provision.

vAlUe ChAIn: Rice, Maize, and Soy

northernloCAtIon Identified

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9

SUPPortInG InItIAtIveSThere are a number of current and potential initiatives which can be leveraged to increase the return on this investment:• The Savannah Accelerated Development Agency (SADA) provides

opportunities for poor peasants, especially women, to own assets, sustain their food crop production and protect the fragile eco-system of the northern savannah. AMSIG currently supplies some inputs through the SADA program, and this can be expanded.

• The irrigation sites AMSIG is targeting were rehabilitated by MOFA with support from MCC.

• Programs which provide additional support to farmers in the North to increase acreage and yields, ensure reliable quality, and ensure market linkages are maintained.

In terms of the public sector:• The GoG can ensure that the public management authorities overseeing

the irrigation schemes collaborate with AMSIG • To support rapid expansion of agricultural production, the GoG can

intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoGina Odarteifio, CEO, AMSIG, +233 (0)24 462 5646

4. AmsigAn agribusiness service provider seeks f inancing to expand its input supply outgrower model and processing capacity for high value, perfumed rice, in order to meet increasing demand from the commercial consumer market.

InveStment vAlUe

mArket oPPortUnItyUrban consumer demand for perfumed rice far outpaces domestic supply, causing a reliance on imports to fill the gap. Though major import-substitution opportunities exist in this market, the pace and scale of investment is constrained by limited access to financial and technical resources among supply chain partners, particularly smallholder farmers and aggregators. There is a compelling business case for investment in firms which are capable of supporting local partners to meet cost, volume and quality requirements.

AMSIG is a well-established female-led agribusiness service provider looking to apply its input supply outgrower model for maize and rice to perfumed rice varieties. AMSIG offers inputs on credit (including seeds and fertilizer), facilitates access to farm mechanization, and provides a number of services across the value chain, including capacity building and technical training for farmer groups, and extension services to boost yields and improve quality. AMSIG recoups input costs by repayment in kind post-harvest, and also acts as an aggregator by purchasing products from the farmers. The firm operates this model sustainably with no external financing, and has been slowly building their asset base, including: warehousing, three tractors, a power tiller, multi-seed, maize and rice specific planters, reapers, threshers, a maize sheller, multigrain cleaners, and a small rice processing mill.

AMSIG will use its existing, sustainable input supply model to increase smallholder rice acreage, yields and quality at three irrigation sites in Tolon

in the Northern Region: Bontanga (300 hectares), Golinga (50 hectares) and Libga (35 hectares). AMSIG will aggregate this production and mill the rice nearby. Smallholders will maintain their own land access arrangements.

InveStment reqUIreDAMSIG is constrained by a lack of milling capacity (their existing processing mill results in a high-percentage of breakage), and requires a $300k-400k investment to purchase the following assets:• A two ton per hour three-pass mill with a polisher and a grader, plus

stockpile of spare parts, to be based in Tolon, Northern Region• Amphibious harvesting machine for irrigated rice• 500 ton storage warehouse

Given the high social returns tied to this investment, it is well suited for an impact fund targeting the “missing middle.” Equity, debt, or mezzanine finance (such as quasi-equity, with characteristics of both debt and equity) would be appropriate.

The next step is to connect AMSIG with a BAS provider. AMSIG has already drawn up a business plan, and has vast experience managing the input supply outgrower model proposed. BAS could be used to refine the business plan, conduct due diligence and sensitivity analysis on projections, recommend appropriate equipment for purchase, assist with financial facilitation, and support market linkages.

vAlUe ChAIn: Rice

$300,000 $400,000

northern

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5. AninkorAh FArmsSeeks an investment of $500,000-$1,000,000 for working capital to purchase inputs and grow existing production using existing f ixed assets.

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers expand production and increase yields, and ensure a reliable supply chain for Aninkorah’s feed inputs, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector:• According to the USAID EAT Ghana Assessment, a coordinated support

program for poultry industry expansion will be necessary and require that the Ghana National Poultry Farmers Association engages with policy makers and ready-to-cook chicken importers.

• MoFA and the International Centre for Enterprise and Sustainable Development (ICED) are implementing a three year program called ‘Enhanced Guinea Fowl Production in Northern Ghana’ aimed at increasing the production of guinea fowl from the current 30 million birds annually to 100 million in the next three years. The initiative provides capacity building training and market access.

ContACt InFoEdward Maxwell Aninkorah Managing Director, Aninkorah Farms Limited+233 (0) 24 377 9686, +233 (0) 20 811 2918

InveStment vAlUe

$500,000 $1 million

mArket oPPortUnItyRapid urbanization, rising per-capita income and increased consumption are driving significant increases in demand for poultry and eggs. Demand is outpacing domestic supply, creating opportunities for investment in local poultry producers and processors to expand production. According to the USAID EAT Ghana Assessment (the market for maize, rice, soy, and warehousing in Northern Ghana), the poultry sector in Ghana could compete with the over 100,000 MT of imported, ready-to-cook, broiler meat chicken. The guinea fowl value chain also presents strong opportunities in the poultry market: the Ministry of Food and Agriculture (MoFA) estimates that the production level of guinea fowl is only 60% of the demand.

Aninkorah is a large scale poultry farm on the outside of Kumasi that seeks to expand its already successful business. Having been in business since 1980, Aninkorah is well established. The company has 134,000 birds, including layers and infant layers, as well as guinea fowl for meat, and sells 60,000 eggs per day. Aninkorah has a number of fixed assets with capacity to expand, including three two-ton per hour feed mills (with a total installed capacity of six tons per hour) plus maize drying equipment which are only

being used to meet the company’s own feed needs (24-30 tons per day). Aninkorah also has ample storage space, with an underutilized warehouse that has capacity for 18,000 tons of cereal. It utilizes at most 35% of its storage capacity during the peak season of maize production or at harvest when prices are low. Otherwise, capacity utilization is just 10%-15%. The company’s growth is only limited by a lack of capital to purchase feed input supply (soy and maize) for more than 3 months stock. An injection of working capital would allow the company to capitalize on existing fixed assets and tap into growing demand for poultry and high-value guinea fowl meat.

InveStment reqUIreDIn order to expand product lines, Aninkorah is seeking $500,000-$1,000,000 in debt which will be used to purchase soy and maize feed inputs for additional layers and guinea fowl.

Next steps include engaging a BAS firm to develop a full business plan and proposal for this investment opportunity, support supplier linkages, and facilitate the investment transaction.


AShAntI


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers increase production, such as:• African Development Bank’s Northern Rural Growth Project (NRGP)• Savannah Agricultural Development Authority (SADA)• The University of Development Studies will partner in the provision of

training and agricultural extension services to outgrowers, and an Israeli firm has been identified to provide land development and irrigation infrastructure consulting services.

In terms of the public sector: • Delivering sufficient and consistent power to major production hubs is a

critical role for the public sector. • To support rapid expansion of agricultural production of staple foods,


ContACt InFoRtn KC Echilarasan, Chairman+233 (0) 261 029114Ms. Saalai Manikam, Managing Director+233 (0) 261 029115.

6. ArimA FArms ghAnA limited (AFgl)Limited irrigation in Northern Ghana presents an opportunity for f inancing and investment in improved technologies for expanded maize, rice and soy production, as well as the introduction of a nucleus farm scheme.

irri

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pro

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InveStment vAlUe

mArket oPPortUnItyMaize, rice and soy are in high demand due to the fast-growing and urbanizing population of Ghana. Demand for maize and rice exceeds current production capacity in Ghana by significant amounts.

Most staple foods produced in Ghana are rain fed and produced on small plots of land. Rain fall can be erratic in Northern Ghana, and is one of the major causes of low agricultural yields. Ghana cannot meet its future production targets in staple foods by relying solely on rain fed production. New irrigation systems are required, however these are expensive and challenging for small-scale farmers to finance.

Small-scale farmers lack the equipment to prepare land to cultivate staple food crops, and the ability to access quality inputs (mainly seeds and fertilizer) required to meet the targets of the demanding buyers who offer the highest premiums. A number of agribusiness firms are investing in commercial farming in Ghana using a nucleus farm model and introducing new technologies.

Arima Farms is a commercial farm operation ready to initiate a 7,000 ha irrigation project in the Northern Region to produce rice, maize and soy.

It plans to begin with 500 ha of rice, 380 ha of maize and 120 ha of soy, which will ultimately be scaled to production at full land capacity. The firm is interested in pursuing the nucleus farm model, extending existing production services and new technologies to outgrower farmers and farmer associations in these value chains and providing services in input financing, land preparation, irrigation, secure market access, and storage and processing. Arima Farms envisages that outgrowers will eventually produce 50% of all yields. The firm intends for the surrounding communities to be employed on the nucleus farm or to serve as outgrowers, of which 50% will be women.

InveStment reqUIreDArima Farms requires $10 million in a mix of short- and longer- term loans, working capital and capital expenditure financing (debt or equity) to finance technology and machinery (central pivot irrigation, harvesters, tractors and accessories), inputs (seeds, fertilizer, pesticides) and land development.

Next steps include connecting Arima Farms with appropriate BAS to identify potential investors and/or joint venture partners.



northern


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7. AvnAsh industries ghAnAInsuff icient supply of locally produced rice paddy for processing presents an opportunity for commercial investment in increased production via an outgrower model. A growing vegetable oil market presents an additional opportunity for commercial investment in an oil crushing plant.

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase staple food production in Northern Ghana which can be leveraged for this opportunity, including:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural


hubs are key roles for the public sector. • To support rapid expansion of staple foods production, the government

can intensify its efforts to facilitate land acquisition and land use, prioritizing outgrowers connected to nucleus farms and processors.

ContACt InFoManish Shukla, General Manager+233 544 312 319Mathew Arughese, Agronomist+233 544 312 323

InveStment vAlUe$50 million $60 million

mArket oPPortUnItyGhana produces approximately 250,000 tons of rice paddy each year, while it imports 600,000 tons annually to meet consumer demand, which continues to rise. More affluent urban centers are demanding high quality, dry milled rice.

Rice processing facilities throughout Ghana are not operating at full capacity due to an insufficient supply of rice paddy. To address this, a number of large traders are implementing pilot, nucleus farms managed in tandem with outgrower schemes to ensure adequate supply for their processing facilities to run at full capacity.

Avnash is completing the installation of a 24 ton per hour rice mill, capable of producing 150,000 tons of rice per year, a quarter of the rice imported by Ghana each year. This size processing facility represents a significant opportunity for approximately 30,000 outgrowers and aggregators of paddy to supply the new facility so that it runs at full capacity. Tamale’s agro-climatic conditions and available land create a favorable location for a rice nucleus farm scheme. Demand for vegetable oil is also outpacing supply, requiring greenfield investments in new oil crushing facilities.

InveStment reqUIreDAvnash has secured the financing for the completion of the rice mill, but requires short-term, working capital to pre-finance the inputs for the estimated 30,000 outgrower farmers required to produce sufficient paddy to operate the rice mill at full capacity. If input financing runs at $240/farmer, the short-term financing required could exceed $7 million. A tripartite arrangement between Avnash, a financial institution and rice producers could work to facilitate this input financing. Avnash is also seeking longer-term, capital expenditure financing of approximately $50 - $60 million for the Greenfield oil crushing facility, and would consider partnership with a social impact investor, a joint venture, or another equity arrangement.

Next steps are to connect Avnash with a BAS provider to design the outgrower model and facilitate the tripartite financing for outgrower inputs. Avnash will also benefit from introductions to potential equity or joint venture partners to support the creation of the oil crushing facility.

vAlUe ChAIn: Rice, and Soy

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural


hubs are key roles for the public sector. • To support expansion of aquaculture, the government can intensify its

efforts to facilitate land acquisition and land use.

ContACt InFoObed Asante Managing Director, Ghana Nuts+233 (0) 20 47 [email protected]

InveStment vAlUe

mArket oPPortUnItyCurrent and projected growth in the poultry sector has increased demand for maize meal and soy for poultry feed, particularly as companies move into domestic broiler production. This has created a stable market to support investment in maize and soybean processing mills. Processing investments in the North can take advantage of close proximity to producers in the North, thereby reducing the logistics costs otherwise incurred when transporting raw materials to processing sites in other regions, or importing inputs from abroad.

Ghana Nuts, one of Ghana’s largest and best known domestic agro processors, is looking to capitalize on this market opportunity. The company has been in business since 2001 and has experienced very rapid growth. Ghana Nuts’ main activity is shea processing, but it also has substantial soy processing capacity—up to 50,000 - 60,000 tons per year. To produce at these volumes, Ghana Nuts estimates that it purchases more than half of the total soy production of Ghana. Nonetheless, the company still has to resort to importing soy from the Americas to supplement domestic production. The company has a strong social responsibility mission,

seeking to improve rural livelihoods, particularly for women, in the North. Ghana Nuts is looking to establish a poultry feed mill in the Tamale area and complementary storage infrastructure, which would take advantage of the close proximity of raw material inputs (soy, maize) and reduced transit times, and support shared mission values. The mill, to be based in Techiman, would be capable of producing specialized feed for guinea fowl and chicken, which Ghana Nuts recognizes as a key growth sector that will allow it to capture share of the current market.

InveStment reqUIreDGhana Nuts seeks $3-5 million for this greenfield opportunity in capital expenditure to build the poultry feed plant and rejuvenate the maize and soy value chains. This investment could possibly take the form of a joint venture.

The next step is to connect Ghana Nuts with a BAS provider who can support the company to develop a detailed business plan, and link it with a joint venture partner.

8. ghAnA nutsAn established agri-processor would like establish a poultry feed mill in the Tamale area to take advantage of growing demand for poultry feed inputs and close proximity to raw materials.



northern


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SUPPortInG InItIAtIveSThis investment would benefit from initiatives that provide support to farmers in the North to increase acreage and yields and ensure reliable quality. There are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers expand production, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)A complementary investment to consider is a tripartite agreement to pre-finance input supply for producers and an offtake agreement with Golden Web.In terms of the public sector:• The GoG could support this investment and the rapid expansion

of agricultural production by intensifying its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoThomas W. Bello, Managing Director, Golden Web+233 (0) 24 441 0049, +233 (0) 32 203 0923, +233 (0) 54 443 [email protected], [email protected]

InveStment vAlUe


mArket oPPortUnItyUrbanization and income growth are stimulating increased demand for poultry and eggs, and therefore soy cake, a key input for poultry feed. The current supply of processed soy cake is unable to keep up with market demand. Installed capacity for soybean cake production is heavily underutilized, and poultry producers consistently complain of insufficient supply from local processors. The projected growth of the poultry industry, particularly as companies move into broiler production, ensures that demand will persist, creating promising opportunities for investors to capture this expanding market.

Golden Web is a soy processor that produces soy cake, refined soy vegetable oil for human consumption, and crude oil for the paint industry. In operation since 1994, Golden Web has two facilities in Kumasi and sources all of its soy from the North. The firm has existing installed capacity to process 30 tons per day (using its own extrusion equipment), but is currently running at 15-20% capacity due to insufficient working capital to purchase inputs. Golden Web also has nearly 1,000 tons of unused storage capacity. If Golden Web had sufficient working capital to run closer to full

capacity, it would buy up to 6,000 tons of additional soy per year from smallholder soy farmers in the North.

InveStment reqUIreDGolden Web requires a $5-10 million working capital injection to boost purchase of inputs and enable capacity utilization. Financing could either come from a commercial bank loan or an equity stake in the company.

The next step is to link Golden Web with a BAS provider that can restructure a $1.25 million non-performing loan the firm has with Ecobank Ghana Ltd. Though the loan was originally for $700,000, Golden Web lacked the working capital to increase production and sales to a level that would and allow it to service the loan and interest (over 30% per year).

Golden Web already has a business plan in place for expanded production. A BAS provider could help refine this business plan, conduct due diligence and sensitivity analysis on projections, and assist the company to become bankable for potential investment.

9. golden WebA working capital injection will boost purchase of raw soybeans from smallholder farmers and enable capacity utilization to meet demand.

vAlUe ChAIn: Soy

AShAntI


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)An expansion of leasing programs for new tractor purchase is another needed support for nucleus farms. In terms of the public sector: • Delivering sufficient and consistent power and water to major processing

hubs, such as Tamale, are key roles for the public sector.• To support rapid expansion of agricultural production of staple foods,

the government can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities

ContACt InFoAlhaji Zakaria Alhassan, Managing Director+233 (0) [email protected], [email protected]

InveStment vAlUe

mArket oPPortUnItyMany small farmers lack access to quality inputs, as well as heavy machinery for land preparation. Small farmers also lack affordable services to transport their goods to the nearest market. Increased national demand for the staple food products of maize, rice and soy provides an opportunity to address these needs by providing valuable land preparation, aggregation and financing for inputs for underserved small farmers.

From its nuclear farm base, Gundaa Produce provides land preparation, input financing and aggregation services to thousands of outgrower small farmers outside of Tamale. Gundaa Produce purchases all the maize, soy and rice that outgrowers produce, storing this in the firm’s warehouse until it is sold to larger buyers, such as Premium Foods. Gundaa Produce also provides mobile shelling equipment for maize farmers.

Last year, Gundaa Produce signed up 5,000 outgrowers to receive services from the company, but it was only able to serve 3,100 of these due to insufficient capital to expand. Input financing from one of Gundaa Produce’s principal buyers (Premium Foods) ceased, so Gundaa is unable to pass on this financing to the outgrowers. Gundaa Produce is therefore

seeking input financing for 5,000 outgrowers, and to purchase three new tractors so it can expand outgrower production by 50%.

InveStment reqUIreDGundaa Produce seeks short-term, input financing to bring additional small farmers into its nucleus farm scheme. At an average of $240 of input financing per farmer, to serve 5,000 farmers, $1,200,000 in input financing is required. Gundaa Produce also requires a medium-term loan worth approximately $100,000 to purchase three new tractors to expand services to 1,900 new outgrowers, reaching 5,000 in total.

Gundaa Produce has benefitted from BAS in the past, including accounting services.

Next steps include connecting Gundaa Produce to appropriate BAS to facilitate a short-term, working capital loan for farmer inputs, as well as a medium-term loan (or a leasing arrangement with a local supplier) for three additional tractors worth an estimated $25,000 each.

10. gundAA produceIncreased demand for rice, maize and soy products presents an opportunity for f inancing and investment to nucleus farms for expanded land preparation and aggregation, and input f inancing for outgrowers.


$100,000 $1.3 million


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers increase production, such as:• USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector: • Preparing sufficient land and creating new irrigation systems to support

staple food production is a Government of Ghana priority, and is included under its signature GCAP

• Delivering sufficient and consistent power to major production hubs is a critical role for the public sector

• To support rapid expansion of agricultural production of staple foods, the government can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoAmadou Mahama, Managing Director+233 (0) 200 799601; [email protected]

InveStment vAlUe

$400,000

mArket oPPortUnItyMaize and rice are in high demand due to the fast-growing, local poultry industry and urban population of Ghana. Demand for maize and rice exceeds current production capacity in Ghana by significant amounts.

Most staple foods produced in Ghana are rain fed and produced on small plots of land. Rain fall can be erratic in Northern Ghana, and is one of the major causes of low agricultural yields. Ghana cannot meet its future production targets in staple foods by relying solely on rain fed production. New irrigation systems are required, however these are expensive and challenging for small farmers to finance.

Small-scale farmers lack equipment to prepare land to cultivate staple food crops, and also the ability to access quality inputs (mainly seeds and fertilizer) necessary to meet production and quality targets required by demanding buyers offering the highest premiums. Many agribusiness firms have been created in Ghana to provide land preparation and input provision services to help small farmers to increase staple food quality and yields.

Hikma Farms is a commercial farm, providing land preparation, maize shelling and transportation services to small maize and rice farmers in communities near the city of Tamale. The firm is interested in pursuing the nucleus farm model, expanding existing production services and new

technologies to 500 outgrower farmers and farmer associations in these value chains, improving quality and increasing productivity. Hikma Farms would also like to optimize its own production with the introduction of new technologies.

Technologies it would ultimately like to extend to outgrowers include drip irrigation and micro-sprinkler irrigation technologies, greenhouse technologies for year-round vegetable production, solar energy to pump water, harvesters, threshers and other agro-processing machinery and improved inputs (i.e. seeds, fertilizers and agrochemicals).

InveStment reqUIreDHikma Farms requires $400,000 in short-term working capital and longer-term, higher value equity investment or capital expenditure financing to expand maize and rice production via improved production and post-harvest technologies, including irrigation. The exact amount of the longer-term investment requires definition through business planning.

Next steps include connecting Hikma Farms Ltd. with appropriate BAS to turn this expansion plan into a set of short- and longer-term financing applications.

11. hikmA FArmsLimited irrigation, poor production techniques and signif icant post-harvest staple foods losses present an opportunity for f inancing and investment in improved technologies for expanded maize and rice production, as well as the introduction of appropriate post-harvest technologies.


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SUPPortInG InItIAtIveSThere are a number of opportunities for supporting initiatives that could be implemented the support the development of a competitive broiler industry:• Technical assistance to improve production and value chain efficiencies,

and assure an adequate supply of feed inputs at stable prices.• Development of an “eat local” poultry campaign by the Ghana National

Poultry Farmers Association in partnership with the GoG.Complementary investments in cold chain logistics would be needed for distribution.In terms of the public sector:• K. Asante would need to engage with the public sector and policy makers

for assistance encouraging a viable poultry meat industry in Ghana.• According to the USAID EAT Ghana Assessment, a coordinated support

program for poultry industry expansion will be necessary and require that the Ghana National Poultry Farmers Association engages with policy makers and ready-to-cook chicken importers.

ContACt InFoMr. Kwado AsanteManaging Director, K. Asante Farms Limited+233 (0) 20 811 9440, (0) 24 328 7972, (0) 50 443 4241, +233 (0) 23 305 3835 [email protected]

InveStment vAlUe

mArket oPPortUnItyGiven changing consumption patterns and increased demand for eggs and poultry, there is ample opportunity to capture high value processing in Ghana via import substitution. According to the USAID EAT Ghana Assessment, the poultry sector in Ghana could compete with the over 100,000 MT of imported, ready-to-cook, broiler meat chicken. Furthermore, it is estimated that the substitution of local broiler production for “ready to cook” chicken imports would require an additional 175,000 MT of yellow maize for poultry feed, and will roughly double the domestic soybean market, creating major opportunities for farmers in these value chains.

K. Asante Farms, a poultry farm based in Kumasi, aims to capitalize on this import-substitution opportunity by expanding its egg production and moving into broiler production and meat processing. K. Asante Farms is a well-established farm that has been in business for 10 years, and is managed by the Chairman of the Ghana National Poultry Farmers Association. It currently has 20,000 layer chickens producing eggs and its own feedmill, and purchases feed inputs from local soy processors (such as 3K and A,

Vester Oil), and maize from aggregators (Odeasempa Coop.) who source from northern Ghana.

InveStment reqUIreDK. Asante requires a $2-3 million investment for capital expenditure and working capital in order to expand its egg production and add broiler production, as well as a processing and packaging facility. It presents an opportunity for an equity partnership or an impact investment providing mezzanine finance (such as quasi-equity, with characteristics of both debt and equity).

Next steps for realizing this investment include connecting Asante with a BAS provider that can help refine Asante’s business plan, conduct due diligence and sensitivity analysis on projections, and recommend equipment for purchase. A financial facilitator should be engaged to support Asante access and structure appropriate financing.

12. k. AsAnte FArmsA well-established layer farm seeks to expand its production and develop a broiler plant to compete with imported chicken meat.



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Project (GCAP)An expansion of leasing programs for new tractor purchase is another needed support for nucleus farms. In terms of the public sector: • Delivering sufficient and consistent power and water to major processing


can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected with nucleus farms and processing facilities.

ContACt InFoKharma Farms, Muhib+233 0(2) 05 89 15 29

InveStment vAlUe

mArket oPPortUnItyMany small-scale farmers lack access to quality inputs, as well as heavy machinery for land preparation. Small farmers also lack affordable services to transport their goods to the nearest market. Increased national demand for the staple food products of maize, rice and soy provides an opportunity to fill these needs by providing valuable land preparation and financing for inputs for underserved, small farmers.

From its nucleus farm base of 220 acres, Kharma Farms provides land preparation, input financing and aggregation services for 1,200 farmers (half of whom are women), covering 2,100 acres of production. Small farmers pay Kharma Farms cash for fuel (GHS 11 per acre prepared) and pay for fertilizer in kind with bags of grain. Kharma Farms CEO reports being unable to access government-supported, subsidized financing for a new tractor (worth GHS 88,000) due to limited political connections.

Kharma Farms is seeking a medium-term loan to purchase an additional tractor, and more short-term financing for inputs to serve additional small farmers.

InveStment reqUIreDKharma Farms seeks a short-term, working capital loan worth approximately $120,000 (assuming $240/farmer and 500 farmers) to provide input financing to additional small farmers, as well as a medium-term loan of approximately $35,000 to purchase an additional tractor.

Next steps include connecting Kharma Farms with appropriate BAS services to arrange for short-term and medium term financing (or a leasing arrangement with a local supplier).


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13. khArmA FArmsIncreased demand for rice, maize and soy products presents an opportunity for f inancing and investment for expanded land preparation, aggregation and input services.pr

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$120,000 $155,000


19


Project (GCAP)In terms of the public sector: • In support of the seed liberalization process underway, the GoG can

invest in proper seed certification systems to ensure that farmers have access to the highest quality seeds, whether they are locally produced or imported. Current seed certification facilities in Tamale have not received high marks from farmers in terms of quality assurance.

• Delivering sufficient and consistent power and water to major processing hubs, such as Tamale, are key roles for the public sector.


ContACt InFoAlex Bokuma, CEO+233 (0) 245 380808

InveStment vAlUe

mArket oPPortUnItyMany small farmers lack access to quality inputs at an affordable price. The right seeds can double yields for small farmers, who rely primarily on their own seed, which is of inferior quality to imports. The Government of Ghana recently liberalized the seed market, leading to an opportunity for commercial seed producers to compete with seed imports.

Lexbok Investments obtained 100 acres under a long term lease in the Northern Region to establish a seed nursery to produce high quality seed for maize, rice, soy and cowpea, at a cost competitive price compared to imports. The firm has been in business since 2010. It was assisted in its start up with a donor grant of $119,000 from AGRA, and is hoping to expand its production to improve upon last year’s profit of $25,000. Lexbok’s current revenue does not allow it to expand its sales and marketing efforts, critical to growth of the company and successfully competing with imports.

Lexbok Investments is now seeking a financial partner to make an equity investment to assist in growing the company to meet increased demand for local, high quality seeds.

InveStment reqUIreDLexbok Investments is seeking a long-term, equity investment worth approximately $1 million to expand its current seed nursery operation and provide high quality and cost competitive seeds to small farmers in Ghana involved in the maize, rice, soy and cowpea sectors.

Next steps include connecting Lexbok Investments with appropriate BAS to facilitate an equity investment, and provide advice on marketing strategies.

14. leXbok investmentsIncreased demand for staple foods presents an opportunity for expanded local production of high quality seeds to compete with more expensive imports.


$1 million $1.5 million


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase lending to financial institutions throughout Ghana which can be leveraged to support cooperatives and credit unions, such as:• The Export Development and Investment Fund in Ghana provides

concessional financing to financial institutions to expand lending to underserved communities.

• USAID’s Development Credit Authority (DCA) support to financial institutions using credit guarantees to expand financing to underserved communities.

In terms of the public sector: • Delivering sufficient and consistent power and water to major processing



ContACt InFoMark Kok, Managing Director, Wienco, +233 (0) 30 277 2252, +233 (0) 24 429 2888, [email protected]

InveStment vAlUe

mArket oPPortUnItyThe pace and scale of agricultural investment is constrained by limited access to financial and technical resources among supply chain partners, particularly smallholder farmers and aggregators. Small farmers lack access to quality inputs, as well as affordable transportation services to transport their produced goods to final offtakers or to the nearest market. At the same time, staple foods processors and traders cannot source sufficient supply of raw materials to run their facilities at maximum capacity.

Agribusiness in Ghana remains severely underfunded, with only an estimated 5% of all lending in Ghana directed towards agribusiness. Microfinance institutions lend an estimated 80% of their portfolio to agriculture, but their size and structure limit the potential to scale up lending operations to under-served agribusiness actors.

The Masara N’Arziki (“Maize is Prosperity”) scheme was established through a partnership between Wienco and Yara, with the aim of securing a market for their agricultural input products and strengthening rural smallholder livelihoods in the North of Ghana. Masara N’Arziki provides extension services and inputs (Wienco and Yara’s seeds and fertilizer) on credit to maize farmers, and receives repayments in kind at the end of the season. It also serves as an aggregator and a secure market for participating farmers. The scheme is large-scale and successful: it comprises 52,000 acres across the Upper West and Upper East regions, and an additional 19,000 acres in an adjacent zone, “Gwollu.” In Tumu alone there are 3,363 farmers organized into 547 groups, which are farming 22,000 acres.

Repayment rates are high (96% last year), and participating farmers report that their acreage and yields are increasing, as are their incomes, enabling them to send their children to school.

Farmers would be able to further expand acreage and yields if they had access to farm mechanization (including tractors for land preparation and maize shellers), storage at the village/community level, and transport. An injection of working capital would allow Masara N’Arziki to a) extend additional input supply credit for farmers, and b) enable access to external financing for farmers to purchase equipment and build storage. This could be done by supporting local credit providers, such as the Tumu Cooperative Credit Union (TCCU), to develop loan products tailored to members of the Masara scheme.

InveStment reqUIreDMasara N’Arziki is seeking $1-2 million in concessional financing to expand the program and be able to extend additional credit to farmers and enable access to finance for equipment purchase. Loans from the Masara N’Arziki maize expansion program would be able to leverage TCCU’s efforts to expand local credit services.

Next steps include connecting Masara N’Arziki with appropriate BAS to facilitate this concessional line of credit, strengthen linkages with TCCU, and support the development of new loan products, such as leasing.

vAlUe ChAIn: Maize

UPPer WeSt, UPPer eASt, northern


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15. mAsArA n’ArZikiLimited liquidity among microf inance institutions (MFIs) serving the agriculture sector presents an opportunity for concessional f inancing to a dynamic local credit union which plans to expand farmer access to equipment and storage.

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers expand production and increase yields, and thereby ensure a reliable supply chain for Mfum. These include: • USAID-supported ADVANCE Project• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural




ContACt InFoNana Kwasi MfumManaging Director, Mfum Farm and Feed Mill Limited+233 (0) 20 812 1327, +233 (0) 20 818 5262

InveStment vAlUe

mArket oPPortUnItyThe poultry industry is strong and growing, particularly in the Ashanti region. There is ample opportunity to take advantage of growing demand for high quality, locally-produced poultry feed for the layer, breeder and broiler sectors. According to the USAID EAT Ghana Assessment, the poultry sector in Ghana could compete with the over 100,000 MT of imported, ready-to-cook, broiler meat chicken. If Ghana capitalizes on this import substitution opportunity, it will require an additional 175,000 MT of yellow maize for poultry feed, and will roughly double the domestic soybean market, creating a stable market to support investment in maize and soybean processing mills.

Mfum Farms is a large scale poultry farm established in 1981 that sells eggs and day-old chicks. Mfum Farms currently has over 200,000 birds (120,000 layers, 60,000 growers, and 25,000 breeders). The farm has a very high capacity feed mill (6 tons per hour) and maize drying facility that is currently only utilized to meet its own feed needs (15-18 tons per day), or about 15-20% of installed capacity. When the feed mill was purchased 14 years ago Mfum Farms intended to use it on a commercial basis, but was not able to source sufficient soy and maize inputs to operate it at full capacity. Mfum Farms now plans to expand into commercial feed production, but needs additional working capital to do so.

InveStment reqUIreDMfum projects that it could have a potential turnover of $1-1.5million per annum with the feed mill project in operation. A $1.5 -2 million working capital injection is required to enable sufficient input purchases (soy and maize) and allow Mfum Farms to capitalize on its existing fixed assets. The funding would also be used for marketing, branding, packaging and technology acquisition. The farm is very open to equity investment.

This opportunity would also be well suited for an Impact Investment Fund, given the projected social returns associated with expanding the capacity utilization of the feed mill. Mfum Farms purchases its soy inputs from local soy processors (such as Vester Oil, Ghana Nuts, 3K and A), which purchase soy from the North. The firm purchases their maize from Wienco, which sources from Northern maize smallholders under the Masara N’Arziki program. This opportunity represents a downstream expansion in demand for Northern maize and soy up to 30,000 tons per year, therefore creating a sustainable market for Northern smallholder farmers.

The next step is to engage a BAS provider to develop a full business plan and proposal for this investment opportunity, as well as support market linkages with suppliers and end buyers. A financial facilitator can also be engaged to help Mfum access funds and structure the investment transaction.

16. mFum FArmsAn underutilized high-capacity feed mill presents an opportunity to expand into commercial feed production, supply local poultry farms, and create sustainable demand for Northern soy and maize production.


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$1.5 million $2 million





can intensify its efforts to facilitate land acquisition and land use, prioritizing outgrowers connected to nucleus farms and processors.

ContACt InFoSadia Alimatu Awini, Managing Director+233 (0) 24-2055696, +233 50 8620149

InveStment vAlUe

mArket oPPortUnItyRice processing facilities throughout Ghana are not operating at full capacity due to insufficient, timely and quality supply of rice paddy. Small farmers located in Ghana’s northern regions are often not able to harvest on time for processors, and poor post-harvest practices (such as threshing on the floor) affect rice quality. To address these challenges, Naawin is interested in purchasing a combine harvester to help small farmers facilitate timely harvesting of paddy and to improve quality control.

Given insufficient access to finance for rice farmers, rice mills are often required to pre-finance inputs for small farmers to ensure supply at harvest time. Naawin’s rice mill is currently operating at 25% of installed capacity. Naawin does not possess sufficient liquidity to finance the farmers it buys from now to increase their acreages, nor to support new farmers to produce paddy.

Finding reliable transport is a challenge for agribusiness firms who both process and distribute agribusiness products, such as rice. The lack of

availability of reliable and affordable transport pushes many firms to establish their own truck fleets, creating an additional financing opportunity for investment in transport trucks.

InveStment reqUIreDNaawin is seeking a short-term working capital loan, preferably at a reduced interest rate, of approximately $60,000 to support increased, input financing for small farmers. Naawin is also seeking a longer-term capital expenditure loan of approximately $90,000 to purchase the combine harvester and the 10 MT truck.

The next steps are to connect Naawin with a BAS provider to assist in drafting a business plan to obtain financing for a truck and combine harvester. BAS could also be useful to Naawin in ensuring good governance of the firm, and extension services could be provided to small farmers to ensure good agricultural practices.

vAlUe ChAIn: Rice

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17. nAAWin enterpriseInconsistent supply of rice paddy, combined with poor rice harvesting practices, complicate rice mill eff iciency, presenting opportunities for commercial investment in expanded services to small farmers and farming machinery.

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers increase production, such as:• USAID-supported ADVANCE Project • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector: • Delivering sufficient and consistent power to major production hubs is a

critical role for the public sector • To support rapid expansion of agricultural production of staple foods,


ContACt InFoPrince Obeng Asante, Managing Director+233 (0) 24 423 8485, (0) 20 423 [email protected], [email protected]

InveStment vAlUe

mArket oPPortUnItyCurrent and projected growth in the poultry sector has increased demand for maize meal and soy for poultry feed, particularly as companies move into domestic broiler production. This has created a stable market to support investment in animal feed production facilities. Processing investments in the North can take advantage of close proximity to producers in the North, thereby reducing the logistics costs otherwise incurred when transporting raw materials to processing sites in other regions, or importing inputs from abroad.

Nuts for Growth Ltd. was established in 2013, but has made a name for itself in the soy bean and shea processing sectors. To capitalize upon the demand created for feed by the growing poultry industry and for edible oils, its plans include establishing a poultry feed mill in the Tamale area for guinea fowl and chicken, as well as a crushing and oil refinery to process raw shea nuts and soy beans into oil. Nuts for Growth intends to use the biomass from shea nut processing for biomass production, generating 7 megawatts of electricity which can help power the processing facilities.

Nuts for Growth has a strong social responsibility mission, seeking to improve rural livelihoods, particularly for women, in the North of the

country. The firm’s growth plans also include complementary storage infrastructure to take advantage of the close proximity of raw material inputs, reduce transit times, and support a shared value mission with shea collectors and soy producers.

Plans for this greenfield venture are relatively developed, starting with the construction of a 6,000 sq. foot warehouse this year.

InveStment reqUIreDNuts for Growth Ltd. seeks $8-10 million for this greenfield opportunity in a mix of short-term working capital and longer-term capital expenditure financing to set up a poultry feed mill, a shea and soy crushing plant, an oil refinery and a biomass energy plant. This investment could possibly take the form of a joint venture.

The next step is to connect Nuts for Growth Ltd. with a BAS provider who can support the company develop the paperwork and strategy to obtain short-term financing, as well as find appropriate equity, joint venture or impact investors.

18. nuts For groWth ltdGrowing demand for poultry feed and edible oils in the midst of energy def icits presents an opportunity for a greenf ield investment in a poultry feed mill, a shea and soy crushing plant, an oil ref inery and a biomass energy plant.


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers increase production, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector: • building on government priorities of preparing sufficient land and

creating new irrigation systems, Premium Foods should collaborate with MoFA/ICOUR regarding the Tono irrigation scheme.

• The government can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoTom Gambrah, Managing Director, Premium Foods [email protected], [email protected]+233 (0) 32 209 4034, (0) 32 209 4033, (0) 27 754 9800

InveStment vAlUe

mArket oPPortUnItyUrbanization and changing consumption patterns have created strong and growing markets for processed foods and beverages, many of which require maize as an input. Projected growth in the poultry sector has also increased demand for maize meal for poultry feed, particularly as companies move into domestic broiler production. In the rice sector, urban consumer demand for perfumed rice far outpaces domestic supply. Though major import-substitution opportunities exist in this market, the pace and scale of investment is constrained by limited access to financial and technical resources among supply chain partners, particularly smallholder farmers and aggregators. In both the maize and rice value chains, there is a compelling business case for investment in firms which are capable of supporting local partners to meet cost, volume and quality requirements.

Premium Foods is one of Ghana’s largest agri-processors, supplying maize grits for the key beverage companies in Ghana, maize meal for poultry feed, and milled rice for consumer markets over its 19 years in operation. The company recently installed major rice milling capacity and is now looking to exploit growing consumer demand for perfumed rice in Ghana. At the moment, 70% of Premium Foods’ raw materials inputs are purchased from aggregators, with 30% sourced from outgrowers in the North. Recognizing the value of nucleus outgrower schemes to ensure consistent high-quality supply of inputs, the company is looking to expand and improve its out-grower scheme purchases to secure its supply chain for rice and maize.

To date, Premium Foods is working with nine nucleus farmers in the North, each of which is engaging at least 500 smallholder outgrowers,

farming one to two acres. Premium Foods supplies inputs (seeds, fertilizer, etc.) on a credit basis which is repaid in kind post-harvest, assists with farm equipment and land preparation, and facilitates access to training via donor projects (like ADVANCE). It also provides credit for purchasing equipment (via the ADVANCE project), and rents its own equipment to farmers, which is accessible on a credit basis. Farmers sign formal offtake agreements with Premium Foods to recoup the credit extended in kind, and to purchase their produce at a fixed price after harvest. The model is working successfully and is scalable.

InveStment reqUIreDPremium Foods seeks between $15 and $20 million in investment. In the short term, this includes $5.1 million in working capital and capital expenditure in the short-term and an additional U$10-15 million over the next 3-5 years. Financing will be used to expand its services to additional nucleus farmers, purchase equipment for land preparation and harvesting, and build storage facilities. The company is also seeking grant funding to provide further training to farmers to assure requisite quality and yields, and is in discussion with AGRA for an $800,000 grant to support the training component.

The company has a high level of management capability and already has a business plan in place for this opportunity. As a next step, BAS services can be engaged to facilitate matchmaking with potential investors.

vAlUe ChAIn: Rice, and Maize

AShAntI/ northern


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers increase production, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural


staple food production is a Government of Ghana priority, and is included under its signature GCAP.

• Delivering sufficient and consistent power to major production hubs is a critical role for the public sector.


ContACt InFoTom Gambrah, Managing Director, Premium Foods [email protected], [email protected]+233 (0) 32 209 4034, (0) 32 209 4033, (0) 27 754 9800

InveStment vAlUe

mArket oPPortUnItyCurrent and projected growth in the poultry sector has increased demand for maize meal and soy for poultry feed, particularly as companies move into domestic broiler production. This has created a stable market to support investment in maize and soybean processing mills. Processing investments in the North can take advantage of close proximity to producers in the North, thereby reducing the logistics costs otherwise incurred when transporting raw materials to processing sites in other regions.

Premium Foods, one of Ghana’s largest agri-processors, is looking to capitalize on the huge demand for feed by the poultry industry by establishing a poultry feed mill in the Kumasi area. Premium Foods is a well-established company that has been in operation for 19 years, and is led by the Chairman of the Board of the Ghana Grains Council. It supplies maize grits for the key beverage companies in Ghana, maize meal for poultry feed, and milled rice for consumer markets. Premium Foods relies heavily on outgrowers—70% of Premium Foods’ raw materials inputs are purchased from aggregators, with 30% sourced from outgrowers in

the North—and the firm is looking to expand and improve its outgrower purchases to secure its supply chain. Locating a feed mill in the North will allow Premium Foods to take advantage of close proximity to raw material inputs.

InveStment reqUIreDPremium Foods is looking for $3-5 million in financing for this greenfield venture. This will include start-up capital to conduct feasibility analysis and design the facility, capital expenditure to construct the facility, and working capital to support operations. Equity investment is most appropriate, and could possibly include a joint-venture. Given the potential social returns on this investment, which will draw high-value processing to the North, create a sustainable market for soy and maize inputs, and generate new employment, this opportunity can be considered by impact investors looking to utilize patient capital to generate social as well as financial returns.

20. premium FoodsAn established aggregator and processor would like to establish a feed mill, and therefore seeks an investment of US$3-5million.




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$50,000 $100,000

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase lending to financial institutions throughout Ghana which can be leveraged to support cooperatives and credit unions, such as:• The Export Development and Investment Fund (EDAIF) in Ghana

provides concessional financing to financial institutions to expand lending to underserved communities.

• USAID’s Development Credit Authority support to financial institutions using credit guarantees to expand financing to underserved communities

In terms of the public sector:• Delivering sufficient and consistent power and water to major processing



ContACt InFoMartin Dery, Director, Pronet+233 (0) 24 429 0439, +233 (0) 39 202 [email protected], [email protected]

InveStment vAlUe

mArket oPPortUnItyThe pace and scale of agricultural investment is constrained by limited access to financial and technical resources among supply chain partners, particularly smallholder farmers and aggregators. Small farmers lack access to quality inputs, as well as affordable transportation services to transport their produced goods to final offtakers or to the nearest market. At the same time, staple foods processors and traders cannot source sufficient supply of raw materials to run their facilities at maximum capacity.

Agribusiness in Ghana remains severely underfunded, with only an estimated 5% of all lending in Ghana directed towards agribusiness. Microfinance institutions lend an estimated 80% of their portfolio to agriculture, but their size and structure limit the potential to scale up lending operations to under-served agribusiness actors.

Pronet is a highly professional Ghanaian NGO, based in Wa, Upper West, that was established in 1995 with support from a UK charitable foundation. With a focus on women and sustainable livelihoods, Pronet recently established a microfinance lending arm called “Mwintui Microfinance,” capitalized with UK National Lottery funding. This MFI has been successfully lending to women smallholder farmers in the surrounding areas, with excellent repayment (98%) and interest rates ranging from 20-28%. Pronet provides loan and facilitates access to inputs (seeds, fertilizer, etc.) through linkages with input dealers and mechanization through SADA, all paid for by the women farmers on a commercial basis. Mwintui recoups its money

either in cash or in kind and also acts as an aggregator—Pronet purchases grain and then sells on to processors (such as Ghana Nuts and 3K and A), taking a small margin to cover logistics costs. Through the interest and margin they make on aggregation, the company is able to fully cover its operational costs.

Pronet has noticed a surge in demand for microfinance by women interested in becoming soy farmers. This season, approximately 1,600 women requested funding but due to capital constraints, Pronet was only able to provide loans to 400. Pronet requires a capital injection to extend financing to meet the growing demand for credit by soy farmers, and encourage more women to enter this value chain, create sustainable livelihoods and increase production.

InveStment reqUIreDPronet is seeking $50,000-100,000 in concessional financing to expand its lending to an additional 1,600 women soy farmers. The financing could either come from a low-interest loan or grant. Pronet’s lending model is sustainable and able to cover its operating costs, thus capital injection could be used on a revolving basis.

Next steps include connecting Pronet with appropriate BAS to conduct due diligence on controls and systems in place for the MFI and facilitate this concessional line of credit.

vAlUe ChAIn: Soy

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21. pronet mFi cApitAliZAtionLimited liquidity among microf inance institutions (MFIs) serving the agriculture sector presents an opportunity for concessional f inancing to these entities to expand lending to its members involved in agribusiness.

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Project (GCAP)This investment also assumes crop insurance and transport insurance to ensure expanded production and seamless supply to staple food processors.In terms of the public sector: • Delivering sufficient and consistent power and water to major processing

hubs, such as Tamale, are key roles for the public sector• To support rapid expansion of agricultural production of staple foods,


ContACt InFoAgatha Ayirewogye, Acting Director+233 (0)24 413 0304

InveStment vAlUe

mArket oPPortUnItyMany small farmers lack access to quality inputs, as well as affordable services to transport goods to final offtakers or the nearest market. At the same time, staple foods processors complain they cannot source a sufficient supply of raw materials to run their facilities at maximum capacity. Increased demand for maize and soy provides an opportunity to address these needs by providing aggregation, transportation and input financing to underserved small farmers.

Savannah Farmers Marketing Company (SFMC) is a registered cooperative marketing company for 18,000 farmers, 35% of whom are women. SFMC functions as an aggregator, trader and input financier on behalf of its members, and deals exclusively in maize and soy. In 2012, SFMC made $300,000 in input loans to its farmer members, and bought 5,000 tons of soy and maize from small farmers, transporting and selling it to large

processors. SFMC is seeking to expand yields from its existing farmer membership base by expanding input provision, and is also looking into weather and transportation insurance to ensure a seamless link from farm to processor gate.

InveStment reqUIreDSFMC is seeking short-term financing for inputs worth an estimated $500,000 to $1.2 million, depending on the number of farmers targeted to increase production yields.

Next steps include connecting SFMC with a business plan and appropriate BAS to facilitate a short-term working capital.

22. sAvAnnAh FArmers mArketing compAnY (sFmc)Increased demand for staple foods presents an opportunity for f inancing and investment to aggregators to expand input provision, and to assure processors of adequate supply to run their facilities at maximum capacity.


$500,000 $1.2 million


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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support redesign of this concept, such as:• USAID-supported ADVANCE Project. • USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)

ContACt InFoVictor AntwiUSAID-FinGAP Project+233 (0) 20 8150673

InveStment vAlUe

mArket oPPortUnItySmall-scale farmers lack the equipment to prepare land to cultivate staple food crops. The demand for mechanized services has been increasing along with the expansion of staple food production. The Government of Ghana established 22 mechanization centers in 2007 to address this demand, identifying both the farmers to receive mechanization services and tendering the leased purchase of tractors to selected providers. Tractors were leased from the government via a 10% deposit and a five-year repayment plan.

The results of this program were mixed. Providers reported not being paid enough or in a timely fashion by the Ministry of Food and Agriculture (MoFA) for service provision. Farmers reported displeasure that the machines were late to arrive. Other problems reported were related to lack of control over brand choice and limited availability of spare parts.

The market opportunity lies in re-designing this government-run mechanized services program to be more market-driven and efficient in its implementation, so it can be spun off to become commercially viable.

A number of improvements could be made to the program to address inefficiencies, such as:

• Establishing a set package of tractors and tools for land preparation; • Allocating land preparation packages to geographic locations with the

highest demand;• Removing the government from the relationship between the farmer and

the equipment provider, limiting this to provision of affordable financing options and oversight, and limiting its involvement in implementation.

InveStment reqUIreDA long-term capital expenditure loan of $15 million over five years will be required to implement this program, with the ultimate goal being to migrate the financing part of the program to commercial financial institutions.

Next steps include identifying a BAS provider to re-design the mechanization service center concept, and work with MoFA and SADA to put in place appropriate financing.


northern

23. shukrAh limitedThe mixed performance of a government mechanization center program presents an opportunity for restructuring the concept for more eff icient mechanized services to small farmers.

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to support small farmers increase production, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural




ContACt InFoSteiner Kolnes+233 (0) 20 0313133, (0) 54 7312020

24. solAr hArvest limitedLimited irrigation to support expanded staple foods production presents an opportunity for f inancing and investment in irrigated staple foods production and upgraded farm machinery.

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InveStment vAlUe

mArket oPPortUnItyMost staple foods produced in Ghana are rain fed and produced on small plots of land. Ghana cannot meet its future production targets in staple foods by relying solely on rain fed production. New irrigation systems are required, however these are expensive and challenging to finance for thousands of small farmers.

Centuries-old land ownership structures in Ghana make commercial farm expansion a challenging proposition. Given this, nucleus farms with outgrower schemes have become popular as Ghana seeks to produce sufficient food to meet food security requirements.

Small-scale farmers lack the equipment to prepare land to cultivate staple food crops, as well as to access quality inputs (mainly seeds and fertilizer) to meet production and quality targets required by nucleus farm buyers. Given this, many nucleus farms extend both land preparation services and input finance to small farmers to ensure sufficient yields.

Solar Harvest, established in 2007 and originally envisioned as a biofuels producer, has transformed into a commercial producer of rice, maize and soy, utilizing the nucleus farm model of relying on small producers as outgrowers. Solar Harvest is interested in shifting its emphasis more towards irrigated soy given market dynamics, but is also interested in expanding irrigated rice production so it can produce crops year round. Solar Harvest currently uses the center pivot irrigation system in

combination with other inputs to improve yields and create crops at prices competitive with imports. The company currently cultivates 200 ha of soy using irrigation. In the short-term, it would like to double its cultivation of irrigated soy to 400 ha. In the longer-term, it would like to expand irrigated production to 80% of this 2,500 ha, producing 12,500 MT of soy and 10,000 MT of rice over the course of a year.

InveStment reqUIreDSolar Harvest requires $600,000 in short-term working capital to conduct the first phase of its expansion plan, doubling irrigated soy production to 400 ha. In a second phase, Solar Harvest requires an estimated $10 million in a long-term, debt and equity mix to support the expansion of its irrigation system, and upgrade farm equipment (i.e. tractors, planters, combine harvesters and other accessories) to support 2,500 ha of new production in rice, maize and soy.

Next steps include connecting Solar Harvest with appropriate BAS to take its business plan and turn it into an appropriate set of loan financing applications, as well as an equity investment deal that can be presented to potential financiers and investors. The company will also need to ensure that appropriate input financing is in place for outgrowers, perhaps through a tripartite agreement between the final offtaker, producers and input supplier.


$600,000 $10.6 million

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25. tono irrigAtion siteOpportunity to reinvigorate successful input supply/offtake scheme and upgrade the capacity of a rice mill near irrigated land.

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers increase production, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural

Project (GCAP)In terms of the public sector: • ICOUR is 100% state owned, consequently public sector support is

implicit for capitalizing on this opportunity.• Delivering sufficient and consistent power to major production hubs is a

critical role for the public sector. • The government can intensify its efforts to facilitate land acquisition

and land use, prioritizing small farmers connected to nucleus farms and processing facilities.

ContACt InFoIssah A Bukari, Managing Director, ICOUR+233 (0) 24 457 7663; [email protected]

InveStment vAlUe$100,000 $1.75 million

mArket oPPortUnItyRice processing facilities throughout Ghana are not operating at full capacity due to insufficient supply of rice paddy. While overall rice production in Ghana is increasing—Ghana produces approximately 250,000 tons of rice paddy each year—the country imports 600,000 tons annually to meet consumer demand, which continues to rise. Many food importers and processors are looking to increase local rice production, creating a stable market to support investment in rice processing mills. At the same time, the country’s limited water retention and irrigation schemes place a premium on processing mill sites located near irrigated land.

ICOUR (Irrigation Company of Upper East Region) is a state owned entity that manages the Tono Irrigation Scheme, a 2,490 ha irrigation project that was completed in 1985. In addition to its primary role overseeing the maintenance and operation of the irrigation scheme, ICOUR also facilitates input supply and mechanized land preparation, and operates a one ton per hour rice mill and storage silos on site. The scheme now has 3,500 participating farmers.

Until 2009, ICOUR was implementing an input supply/offtake scheme, whereby ICOUR provided seeds, fertilizer and land preparation services on credit to farmers, and was repaid in kind in paddy rice after harvest. ICOUR also acted as an aggregator, purchasing additional surplus rice from farmers. Although ICOUR’s management was paid by the Ministry of Food and Agriculture (MoFA), the scheme was sustainable with operation costs covered through internally generated funds from milled rice sales. Despite early successes, ICOUR faced a major marketing challenge in 2009 and lost

its key client. ICOUR now lacks sufficient working capital to run the input supply/offtake scheme or purchase additional paddy rice inputs for their mill. This has left ICOUR unable to service a $30,000 loan with ADB. The rice mill is operating well below capacity, mainly providing milling services to others on a fee basis. Nonetheless, the demonstrated success of the input supply/offtake scheme and the ideal location of the mill in close proximity to irrigated land offer several promising investment opportunities.

InveStment reqUIreDIn the short-term, a working capital injection of $100,000- $200,000 is needed to re-establish the input supply/offtake scheme. This would also require restructuring of existing debt, perhaps in an overdraft facility. In the medium-term, an investment of $500,000-$1.5 million could be used to refurbish or replace the rice mill on site, enabling more efficient, higher capacity milling of the paddy rice from the Tono scheme. In the long-term, there is potential to privatize the entity, or create a Public-Private Partnership (PPP) in order to generate competition and efficiency in the provision of services to farmers.

The next step is engaging a BAS provider who can support loan restructuring, business planning, and reinvigoration of the input supply/offtake scheme. Advisory services will also be needed to support business planning for any equipment refurbishment or purchase. Investors interested in privatization possibilities will need to continue discussion with ICOUR Management.

vAlUe ChAIn: Rice

UPPer eASt, northern


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SUPPortInG InItIAtIveSInitiatives to increase lending to financial institutions throughout Ghana which can be leveraged to support cooperatives and credit unions include:• The Export Development and Investment Fund in Ghana provides

concessional financing to financial institutions to expand lending to underserved communities.

• USAID’s Development Credit Authority (DCA) supports financial institutions with credit guarantees to expand financing to underserved communities

In terms of the public sector: • Delivering sufficient and consistent power and water to major processing



ContACt InFoMr. Abukari Adamu, Chairman+233 (0)24 3116075, +233 (0)20 830 0375, +233 (0) 26 [email protected], [email protected]

InveStment vAlUe

mArket oPPortUnItySmall farmers lack access to quality inputs, as well as efficient and affordable services to transport goods to buyers or the nearest market. At the same time, staple foods processors and traders cannot source sufficient supply of raw materials to run their facilities at maximum capacity.

Agribusiness in Ghana remains severely underfunded by financial institutions, with an estimated 5% of all lending geared towards agribusiness. Financial institutions with limited capital and liquidity hold the largest percent of market share in agribusiness lending. Microfinance institutions such as the Tumu Cooperative Credit Union (TCCU) lend an estimated 80% of their portfolio to agriculture, but its size and structure limit its potential to scale up lending.

The TCCU has been in business for 28 years. Its membership hovers at 3,000, with a total loan portfolio valued at $100,000. In 2013, TCCU was honored with the distinction of being named the “2nd best community-based credit union” in Ghana. Membership is made up of farmers of all sizes, managing plots of 3-50 acres. Loans to TCCU members are made for many purposes, have terms of one year, and require savings deposits of $25. Member savings are used as loan collateral. Annualized interest rates range from 26-28%, under commercial market rates, and late payments

and loan defaults are uncommon. The TCCU has not relied on external sources of financing to expand lending to date.

The TCCU sees the successful Masara N’Arziki industrial maize expansion program operating in Tumu as an opportunity to leverage expanded lending. The Masara N’Arziki farmers association works in collaboration with maize buyer Weinco, which provides farmers with extension services, input financing and a secure market to corn farmers, purchasing maize at good prices. Farmers involved in this program report interest in obtaining additional financing for purchase of farm machinery, construction of new warehousing facilities and improved transport.

InveStment reqUIreDTCCU is seeking $500,000 in concessional financing to expand its lending to its members, and others involved in the Masara N’Arziki expanded maize production program. Loans from TCCU would complement this program by making loans to either individuals or groups.

Next steps include connecting the Tumu Cooperative Credit Union with appropriate business advisory services to facilitate this concessional line of credit and strengthen linkages with the Masara N’Arziki program.

26. tumu cooperAtive credit union (tccu)Limited liquidity among microf inance institutions (MFIs) serving the agriculture sector presents an opportunity for concessional f inancing to expand lending.

$250,000 $500,000

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vAlUe ChAIn: Maize


27. vester oil millsIncreased demand for poultry production and edible oils, coupled with a weakening demand of soy oil for paint, presents an opportunity for f inancing and investment for new processing and warehousing facilities, as well as expanded input provision to small farmers.

SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged, such as:• USAID-supported ADVANCE Project already supports Vester Oil with

market linkages to soy farmers in the north. ADVANCE can expand support so Vester can purchase more raw soybean. ADVANCE can also provide complementary support in agricultural extension service provision to assist new small farmers increase acreage and yields, ensure quality and reliability, and to maintain marketing links with Vester Oils.

• Savannah Agricultural Development Authority (SADA)• USAID and the World Bank financed Ghana Commercial Agricultural



can intensify its efforts to facilitate land acquisition and land use, prioritizing small farmers connected with nucleus farms and processing facilities.

ContACt InFoKwasi Nyamekye, Managing Director+233 (0) 24 473 3329, +233 (0) 26 473 3329, [email protected], [email protected], www.vestermills.com

InveStment vAlUe$1 million $4.5 million

mArket oPPortUnItyMany small-scale soy farmers lack access to quality inputs (mainly seeds and fertilizer), while soy food processing facilities struggle to locate adequate amounts of supply. The market for soy oil for paint has also weakened, leading soy processors to search for new market opportunities in edible oils and soy cake for poultry production. Soy cake, a by-product of Vester Oil’s operations, is sold to the fast-growing, local poultry industry. Demand is also growing for processed soy for oil, milk and other products. The rapid growth of the poultry industry, particularly as companies move into broiler production, ensures this supply gap will grow and demand for soy cake will continue to increase.

Vester Oil is a Kumasi-based soy processor established in 2004, which produces oil for the paint manufacturing industry. The firm’s traditional market for industrial oil for paint manufacturers has weakened, and Vester Oil is looking to diversify by producing refined soy vegetable oil for human consumption. It has the installed capacity to process 32 tons per day, but is only running its facility at 50% capacity due to limited capital to purchase inputs and obtain additional warehousing space above its current capacity of 100 tons. If Vester Oil had access to sufficient capital, it would purchase a new oil refinery to process oil for human consumption, and a solvent expeller to produce soy cake for animal feed. Vester Oil sources

all of its raw soy beans from suppliers in the North, buying directly from aggregators, such as Savannah Farmers Marketing Company, and farmers in all three northern regions, paying a premium to ensure supply. Vester Oil has also supported small farmers in the past with land preparation services.

InveStment reqUIreDVester Oil Mills requires $1-2 million in a short-term, working capital loan to be able to purchase adequate supply of raw soybeans to run its factory at 100% capacity, and to provide input credit to the farmers it purchases soybeans from. It also is seeking $2.5 million in a medium-term, capital expenditure loan to purchase a vegetable oil refinery, a solvent expeller and to expand its warehousing space. Vester Oil reports no outstanding debts.

Next steps include connecting Vester Oil with appropriate BAS to facilitate its current negotiations with multiple potential financiers (such as AgDevco, Acumen Fund, Stanbic). An additional step is negotiating a tripartite agreement with an input supplier to pre-finance input supply for producers based on the agreement by Vester Oil to guarantee purchase of soybeans produced.

vAlUe ChAIn: Soy

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SUPPortInG InItIAtIveSThere are a number of donor-supported initiatives to increase agricultural production in Northern Ghana which can be leveraged to help small farmers increase production, such as:• USAID-supported ADVANCE Project. • Savannah Agricultural Development Authority (SADA) • USAID and the World Bank financed Ghana Commercial Agricultural





ContACt InFoKwame Ntim Adu Samuel, CEO, YeDent Agro Group of Companies Limited+233 (0) 20 816 [email protected], [email protected]

InveStment vAlUe

mArket oPPortUnItyDespite having achieved an impressive 24% reduction in the national poverty rate over the last decade, the poverty level in the North of Ghana is still nearly twice that of the South. The northern regions also have the highest rates of food insecurity in the country, especially among children. Efforts to support households to escape hunger and poverty must take into account the need for i) income generating activities that strengthen livelihoods and link vulnerable populations to markets, and ii) increased access to nutritional food. Ghana’s evolving and expanding food market is creating real opportunities to do both at the same time, through the sale of fortified maize and soy food products produced by northern farmers.

YeDent is an established aggregator and processor that sells nutritious maize and soy products at affordable prices. YeDent seeks to create shared value and social impact by selling its fortified food products in attractive packaging at cheaper prices than its competitors. The company sources 90% of its maize and soy inputs from the north of Ghana. Despite strong management capacity and high-quality products, YeDent is running below capacity due to inadequate marketing and sales:

• Maize processing: 1 ton per hour (running at 15% capacity),

• Non-instant food products (cooking required), maize and soy blend: 0.75 ton per hour (running at 40% capacity),

• Instant food products (no cooking required), extruded soy blend: 1ton per hour (running 50% capacity)

Increasing YeDent’s production to full capacity would entail a significant increase in demand for maize and soy, and increase access to affordable, nutritionally fortified products among communities in the north. YeDent has created a two-year marketing campaign aimed at boosting demand for its products, but it lacks sufficient working capital to implement the plan.

InveStment reqUIreDYeDent is seeking $225,000 in debt or equity to finance the two-year marketing campaign. The plan is designed to increase sales to a level sufficient to cover the costs of the campaign. Equity investors must be aligned with the company’s social mission.

The next step for this investment is linking YeDent with a BAS provider with marketing expertise to review and refine the firm’s marketing plan, engage a marketing agency to implement the plan, and provide investor matchmaking and investment facilitation services.

28. YedentAn established aggregator and processor requires f inancing to launch a marketing campaign to promote sales of affordable, fortif ied staples products to consumers.

$200,000 $225,000

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Project (GCAP).In terms of the public sector: • Delivering sufficient and consistent power and water to major processing

hubs, such as Tamale, are key roles for the public sector.• To support rapid expansion of agricultural production of staple foods,


ContACt InFoMohamed Zakari, Owner+233 (0) 02 4481 18 47

InveStment vAlUe

mArket oPPortUnItyMany small farmers lack access to quality inputs, as well as heavy machinery for land preparation. Small farmers also lack affordable services to transport their goods to the nearest market. Increased demand for the staple food products of maize, rice and soy provides an opportunity to address these needs by providing land preparation, aggregation and financing for inputs for underserved, small farmers.

From its nuclear farm base of 100 ha, Zoya Enterprises provides land preparation, input financing and aggregation services to 600 small rice, maize and soy farmers outside of Tamale. Of the soy and maize farmers in this outgrower scheme, 50% are women, and in the case of rice, 20% are women. Zoya Enterprises purchases all the maize, soy and rice that these outgrowers produce, storing it in the Zoya Enterprises 5,000 MT warehouse until it is sold to larger buyers. Zoya Enterprises runs a warehouse receipt financing program, however its warehouse is not currently utilized to its

maximum capacity. Zoya Enteprises prefers to expand aggregation services (and in the soy value chain due to price robustness) rather than expand its own production. With expanded input financing for outgrowers, Zoya Enterprises intends to increase the number of farmers its provides input financing and land preparation services to, and shift production more forcefully into soy.

InveStment reqUIreDZoya Enterprises is seeking short-term input financing worth $16,000 to bring additional small farmers into its outgrower scheme, and to expand soy production.

Next steps include connecting Zoya Enterprises with appropriate BAS to facilitate a short-term, working capital loan for farmer inputs.


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v. enAbling environment considerAtions

Until recently, Ghana’s economy has been heavily dependent on the export products of cocoa and minerals, and Ghana’s business services sector has developed largely around servicing the needs of these two export sectors. Over the past decade, Ghana’s economy has taken an interesting turn given the inauguration of its first offshore drilling facility in 2010; oil is expected to bring over $1 billion in export revenue annually to Ghana over the next 20 years. Agriculture is responsible for nearly one quarter of the nation’s GDP and employs over half of its workforce, making it a primary driver of Ghana’s economy. Political stability and high commodity prices have contributed to Ghana’s record economic growth in recent years; Ghana experienced average GDP growth rates of 7.2% from 2000 – 2013. With the new oil production, GDP per capita is projected to exceed $1,400 (up from $650 in 2007).

In spite of its agribusiness successes in export products such as cocoa, coffee and more recently pineapple, much of Ghana’s grains and staple foods have been imported, a practice that its population grew accustomed to, and which has influenced the way consumers react to domestically produced food products. The Government of Ghana began campaigns to counteract the negative perceptions of consumers to Ghanaian-produced food products starting in the late 1990s to counteract these perceptions.

The Government of Ghana is undertaking a significant campaign to diversify its economy further by transforming its agriculture sector. Some of the many Government of Ghana-initiated programs and policies in place to support this transformation include:

• Design and promotion of the Savannah Accelerated Development Agency (SADA), which promotes sustainable development by using the notion of a forested and green North to catalyze climate change reversal and improve livelihoods of the most vulnerable citizens in three northern regions of Ghana (Upper East, Upper West and the Northern Region) and northern parts of Brong Ahafo and Volta Regions. SADA provides opportunities for poor peasants, especially women, to own assets, sustain their food crop production and protect the fragile eco-system of the northern savannah by better managing the flood-prone river-beds.

• Ghana’s Investment Promotion Centre (GIPC) governs investment in all sectors of the economy except minerals and mining, oil and gas, and the Free Zones. The GIPC regulates foreign investment in acquisitions, mergers, takeovers and new investments, and registers investments and provides assistance to enable investors to take advantage of relevant incentives.

• Design and implementation of the Ghana Commercial Agriculture Project (GCAP) managed by the Ministry of Food and Agriculture (MoFA), designed to improve the broader investment climate for agribusiness and develop inclusive Public-Private Partnerships (PPPs) and smallholder linkages aimed at increasing on-farm productivity and value addition in selected value chains.

• Approval of a National Policy on Public Private Partnership (NPPPP) to increase private sector involvement in infrastructure and public service delivery.

• Creation of the Millennium Development Authority in March of 2006 to sustainably reduce poverty through increased economic growth as contained in the country’s Compact with the U.S. government.

While these initiatives, among others, catalyze growth and investment in the sector, challenges remain. Some of the physical infrastructure constraints requiring public investment in Ghana to increase its agribusiness competitiveness include:

• Unavailable and/or unreliable electricity• Limited water retention and irrigation schemes

Government of Ghana initiatives have sought to address the country’s obstacles to energy and electricity by expanding infrastructure to increase the amount of electric power generated from hydro and thermal sources, and developing policies to improve access to and efficient use of electric power. Facilitating the establishment of irrigation systems, and developing and implementing supporting policies on improved water management, is also anticipated to increase food production.

Large donors such as the African Development Bank, the World Bank, and the Millennium Challenge Corporation are also directing resources towards Ghana’s physical infrastructure improvements, with investments underway in power generation, large scale irrigation schemes, dam rehabilitation and road construction.

“Soft” obstacles limiting agricultural competitiveness in Ghana that require public action and/or investment include:

• Lack of clarity concerning land ownership • Shortage of agriculture financing (leading to limited mechanization,

warehousing and use of inputs)• Inefficient transport options• Rising labor costs (in part due to rising government salaries)• Difficulty in trading across borders (limiting Ghana’s ability to maximize

regional trade)

Two of the above obstacles are predominant in limiting agribusiness investment: limited clarity on land ownership and shortage of agricultural financing.

Ghana’s regions are managed by ethnic tribes that allocate land to their members via a traditional and (to the outsider) complex system. Lands under this form of management make up 80% of Ghana’s land mass, with the remainder state-owned or under freehold title (mostly in the large cities of Accra and Kumasi). Overlapping claims to land are common, and record keeping at the chieftain and the Government of Ghana level remains poor. Uncertainty over land tenure has led to ethnic conflict and has constrained large scale agribusiness investment.

Constrained access to credit is cited as one of Ghana’s most significant barriers to promoting finance and investment in the agribusiness sector, with only 5% of bank portfolios lending to agriculture. The USAID-FinGAP Participating Financial Intermediaries assessment cites a number of reasons for low investment in the sector, including land tenure issues, weather risks, transport and logistics constraints, potential clients’ poor financial literacy/governance and management capacity and a history of defaults on agriculture loans. With competing government 91-day Treasury Bill rates hovering in the 20-24% range, interest rates on riskier agricultural loans typically run from 30% - 40%. The recent depreciation of the Cedi and recent downgrading of Ghana’s sovereign rating by Fitch from B+

to B- (plus) (over concerns about the country’s budget deficit and rising sovereign debt) will likely push borrowing costs higher.

Despite these constraints, favorable market forces, global commodity prices, government commitment, and donor programs are currently aligned to favor investment in Ghana’s agribusiness sector. The Government of Ghana’s initiatives to address the limited access to credit and land constraints include:

• The Ministry of Land and Forestry’s Reorganization Efforts to Reform the Land Tenure System

• Millennium Development Authority’s efforts to improve land tenure security for rural land holders and facilitate land market activity

• Implementation of the restructured Export Development and Agriculture Investment Fund (EDAIF) to promote an expanded export trade, supporting financial institutions to offer short-, medium-, and long-term subsidized loans at 12.5 percent annually

• Establishment of Credit Reference Bureaus (three now in operation, including Dun and Bradstreet, which was set up in 2012)

• Establishment of a Collateral Registry by the Bank of Ghana in 2008• Ghana’s creation of the Venture Capital Trust Fund in 2004 to provide

low-cost financing to businesses so they can grow, create jobs and increase wealth, thereby contributing to increased government revenues and the pool of funds available for downstream investment.

• The Ghana Agricultural Insurance Program (GAIP), created in 2011, which provides a risk management tool for the adverse effects of climate change and other risks to agricultural production. GAIP is provided by a pool of 19 Ghanaian insurance companies, providing products such as drought index insurance for maize, soya, sorghum and millet, as well as multi-peril crop insurance to cover the various risks experienced by commercial farmers and plantations.

• Ghana’s Agricultural Development Bank’s (ADB) support to small-scale farmers to form cooperatives and use warehouse receipts to store their crops for sale in the lean season. ADB provides loans against the members’ grain, at 75-80% of current market price, while the grain is stored in co-operatively owned warehouses. The scheme is concentrated in the Brong-Ahafo ‘maize triangle’ of Ghana – the major area of agricultural surplus, where annual price fluctuations are high.

vi. ecosYstem For business AdvisorY services

Hundreds of business advisory service (BAS) providers operate in Ghana, which are available to serve the agribusiness community in the targeted value chains of soy, maize and rice. Many of these firms have traditionally served other sectors of the economy, such as the extractive industry (oil, gold) or the export sector (cocoa). Part of the USAID-FinGAP project’s mandate is to facilitate the development of a world-class BAS provider ecosystem that is poised to serve SMiLE agribusiness finance and investment needs on a profitable, long-term basis. The project will accomplish this by offering an initial, performance-based subsidy to BAS providers to identify and close finance and investment-ready deals, leveraging capital from the many sources of financing and investment both inside and outside of Ghana. Subsidies to BAS providers from the USAID-FinGAP project serving agribusiness SMiLEs will be phased out over time as SMiLEs increase their comfort level and experience managing external capital.

In October and November 2013, the USAID-FinGAP project conducted an initial assessment of BAS firms qualified to provide high quality financial and investment services to agribusiness SMiLEs working in the value chains of soy, rice and maize in Northern Ghana. USAID-FinGAP has pre-qualified an initial set of 12 BAS firms that are immediately available to financial institutions, investors and interested SMiLEs, to provide financial and investment services to the agribusiness opportunities already identified and mapped by the project, as well as to other finance and investment opportunities serving agribusiness SMiLEs that meet the project’s environmental criteria. This initial set of 12 BAS firms is located in the greater Accra area, although a few have branch offices in Tamale. Over the next four years, USAID-FinGAP will continuously expand this network of BAS providers, to provide as wide a support system to agribusiness SMiLEs as possible.

A summary of the initial set of BAS providers, their qualifications and contact information, is offered on the following pages.

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BAS Provider AMSIG RESOURCESContact Person Gina Odarteifio

# Employees 12Telephone 0244 625 646

Email [email protected] Office Address/

LocationSuite 112 Parkview Plaza, Community 2, Tema

# years in Business 16Range of Investments

Facilitated (USD)US $15,000 to US$3,000,000

Area of Expertise Trade Finance

BAS Provider ECUBEMETRIx LIMITEDContact Person Daniel Nana Sei Mensah

# Employees 15Telephone 0 246 059 120/ 0 244 722 242


Location2 Biogas Street, Tema, Greater Accra RegionGhana


Facilitated (USD)Some investment facilitation in Africa: (1) Facilitated through a capacity enhancement project in collaboration with the African Development Bank a concessional lending of about EUR 30 million a bank in Tanzania for renewable energy and energy efficiency financing. (2) Led the investment analysis and due diligence for a US$45 million secondary equity offering for a renewable energy company in Nigeria. (3) Facilitating about US$10 million equity finance of three (3) renewable energy firms involved in biogas and solar energy in Ghana. (4) Providing a buy-side advisory for US$5 million acquisition of an insurance company in Ghana. (5) Providing investment research, analysis and due diligence for a US$40 million recapitalization transaction including US$15 million new equity investment for a bank in Ethiopia.

Area of Expertise EcubeMetrix Limited has extensive experience in facilitating debt and equity financing for companies in renewable energy, agribusiness, financial sector, and ICT. EcubeMetrix Ltd. has worked with several investor partners in the US and Caribbean in providing investment analysis, scenario and business modeling, risk management and due diligence for investment banking transactions (including private equity, privatization and venture capital) worth over US$730 million.

BAS Provider GROwTh MOSAIC LTD.Contact Person Wayne Miranda



Location23 Klannaa Street, Ako Adjei (Osu), Accra, GhanaP.O. Box CT10889


Facilitated (USD)$500,000 to $5 million in equity, debt, quasi instruments.

Area of Expertise Growth Mosaic Ltd. is a social-purpose business focused on preparing African small businesses to access and manage growth capital. We support small businesses to scale-up their economic and social impact in Africa. We offer services impacting our clients’ financial management, team performance, marketing and distribution, as well as operations efficiency. Once investment-ready, we match our clients with appropriate equity and debt investors targeting small and medium including large enterprises (SMiLEs). Growth Mosaic Ltd. works with both the investor and SMiLE to close investment deals as low as US$10,000 to as high as US$10 million.

BAS Provider INTEGRATED MANAGEMENT CONSULT LTD.Contact Persons Emmanuel Ofori-Bah; Kwame Ashun Quainoo

# Employees 4Telephone 0302 228556/0244870464/0244878124/0208156068


LocationFirst Floor, NAYAK Mall, 29 Official Street, Adabraka, Accra/Fourth Floor, Marble House, South Industrial Area, Accra


Facilitated (USD)106,000 – 640,000

Area of Expertise Integrated Management Consult Ltd. has experience in Organization Development, Project/Programme Management, Enterprise Development, Crop Value Chain Development and Coordination, Training Delivery, Monitoring and Evaluation, Impact Studies, SMiLE Development and Training, Project Financing, Strategic and Business Plan Preparations, Feasibility Studies/Project Analysis, Financial Accounting and Management, Baseline Studies, Administrative and Training Manuals Development

BAS Provider INTERNAL ADVISORy GhANA LTDContact Person Reuben Djopong

# Employees 7Telephone 0246 756 868/ 0208127127

Email [email protected] / [email protected] Office Address/

Location5th Crescent Asylum Down, Opposite Briano Motors, P.O. Box GP 591Accra. Ghana


Facilitated (USD)From USD10,000 To USD250.0M

Area of Expertise Internal Advisory Ghana Limited (IAG) is a leading Ghanaian business management firm providing hands-on management services, business and corporate finance, business advisory services and information technology solutions to meet clients’ unique requirements. Our target market is Ghana in particular and West Africa in general. The IAG team consists of experts with extensive experience in business management, public sector management, corporate finance, accounting, and information technology, both locally and internationally. Together with our strategic partners around the world, IAG offers its clients access to the most innovative and experienced minds. IAG integrates its extensive knowledge and understanding of the unique local and international business environments in which clients operate with its proprietary management solutions to transform client operations and managerial efficiency to maximize shareholder value. IAG offers the following core services:• Debt and equity capital sourcing from both the local and international capital markets• Investment Performance Management• Financial restructuring for commercial banks• Debt recovering and management services• Corporate turnaround of businesses that are under-performing or are in distress• Expert management of start-up business ventures• Business Process Evaluation and Benchmarking• Strategic and Business Planning• Business Process Reengineering • Change Management; Business Valuations• Corporate Financial Strategy and Management

BAS Provider JPCANN ASSOCIATES LTDContact Person Jonathan Cann

# Employees 14Telephone +233 302 974 302 / +233 302 242 573 / +233 265 375 346 / +233 501 335 817


Location# 8 Blofonme Street, Swanlake, North KaneshiAccra


Facilitated (USD)USD50,000 – 2.5 m

Area of Expertise JPCann Associates Ltd is a Ghanaian management consultancy firm that specializes in development finance, capacity building, agri-business financing, internal audit and controls, risk management, microfinance, business planning and entrepreneurship development, accountancy, and financial management services to both the private and public sector institutions in Ghana, Africa and beyond.

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BAS Provider KPMGContact Person Daniel Adoteye

# Employees 305Telephone +233 302 766306

Email [email protected]@kpmg.com

Specific Office Address/Location

Marlin House, 13 Yiyiwa Drive, AbelenkpePO Box GP 242, Accra


Facilitated (USD)USD25m – USD110m

Area of Expertise KPMG has worked for clients in the public and private sectors in several countries, helping to transform business performance and operations through institutional development restructuring; strategy and organization design; fund raising to revamp operations, project evaluations, acting as auditors on financial and project audits; advising on tax and regulatory services; payroll services; management systems services; systems design and integration; business process improvement and reengineering; job evaluation; manpower assessment; pensions; recruitment and compensation surveys.

BAS Provider MANAGEMENT AND ECONOMIC DEVELOPMENT CONSULTANTS (MEDCO)Contact Person Chris Mensah

# Employees 3 employees, 15 Associate ConsultantsTelephone 0302 248 573, 024-972-6465


LocationNo. 8 Mukose Street, Tesano, Accra


Facilitated (USD)$10,000 - $1,000,000

Area of Expertise Management and Economic Development Consultants Limited (MEDCO) is an agriculture-based management consulting firm. MEDCO has experienced professionals and associates with extensive local and international experience in agriculture and allied fields especially in agribusiness; agricultural economics; crop agronomy especially of rice, mangoes, sugar cane, maize, chili pepper and pineapple; post-harvest technology including primary crop processing, food processing and food engineering and irrigation system design and management. Other areas of competence include Assistance to agribusiness companies especially SMiLE’s to obtain financing; market research to identify prospective companies for agribusiness companies; crop value chain analysis and enhancement; market linkages for farmers and farmer-based organizations (FBOs); training facilitation for farmers and farmer-based organizations; pre-feasibility, feasibility and preparation of business plans for community-level agro-based projects; monitoring and evaluation of agricultural projects; needs assessment; primary and secondary data collection and analyses including the design of survey instruments; environmental impact assessment for agribusiness SMiLE’s; development of on-farm water management systems; management systems for community-based agro projects.

BAS Provider SERENGETI CAPITAL PARTNERS LIMITED Contact Person Richmond Agbesi /Francis M. Kalitsi

# Employees 12Telephone 0302768960 (1)(4),0244183949

Email [email protected]; [email protected]; [email protected] Office Address/

LocationNo. 5 Abafun Crescent, Labone, Accra


Facilitated (USD)≥US$20 M

Area of Expertise Serengeti offers a full suite of technical capabilities necessary to provide world-class investment and credit facilitation services. This includes financial analysis – financial statement analysis, modeling, valuation; market research – market sizing, industry benchmarking, trend analysis, competitor analysis; performance analysis – key performance indicator development, system setup, analysis; business development – guidance in developing business plans, expansion plans, growth strategy, turnaround strategy, market linkages; capital raising – ability to develop presentation documents and loan applications, execute roadshows, build and maintain investor network, engage investors and financial institutions, analyze proposed terms; coaching – client preparation for investor presentations and due diligence; negotiation – guidance and direct participation in negotiation for preferential terms. Serengeti also has technical capabilities in buy-side advisory (mergers and acquisitions) and principal investing.

BAS Provider VA INVESTMENT SOLUTIONS LTDContact Person Vincent Akue


0242 551 529Email [email protected]

Specific Office Address/Location

8 Obodai Close, East Legon, AccraOpening soon inTamale


Facilitated (USD)US$200,000 and above

Area of Expertise VA Investment Solutions Ltd’s approach in agriculture value chain financing focuses on the viability and the cash flow of the industry and the business model within with a particular business operates. We have developed expertise in agriculture investment project structuring and financing in Ghana and the West Africa region. We link technical operators (seed producers, agro-input dealers, market-oriented farmer organizations, nucleus farmers, aggregators and marketing companies and processors) with leading agricultural companies through buyer/seller arrangements or contract farming, enabling both to increase profits and expand. We set up deals where buying from and supporting small producers becomes part of the core business of a company, and leads to economic benefits for both.Access to financial products opens up new opportunities for producers and local enterprises to increase the quality and volume of their products and expand their markets. We use multi-layered agreements and instruments (commercial loans, purchase order financing, leasing solutions, social investment, private equity, special purpose vehicle and funds) to facilitate access to adequate, timely and affordable financing for our clients.

BAS Provider VENTUREhALL MANAGEMENT CONSULTANTSContact Person Kwabena Osei Danso



LocationHse. No 332, Achimota-Nsawam Road, Achimota


Facilitated (USD)US$52,100 to US$1,200,000

Area of Expertise Business start-up support services, preparation of business plans, taxation and tax advisory services, auditing (statutory, performance, management), setting up internal audit units for clients, recruitment and selection services, professional accountancy services, company secretarial services, capacity building/training, financial management services, business development services.

BAS Provider wORLDwIDE INVESTMENT COMPANy LTDContact Person Rexford Adomako-Bonsu

# Employees 5Telephone 0277 55 39 68


LocationNo. 80 Ringway Link, Yeboa Afari PlazaPO Box OS 1072, Osu Accra


Facilitated (USD)50,000-22,000,000

Area of Expertise Stock Brokerage, Corporate Finance, Capital and Money Market Analysis and Research, Asset and Fund Management. Worldwide Investment Ltd has Business Development Cooperation agreements with a number of well known international organizations namely TEAM-R A/S (a Danish Business Development Group), Flow Consulting (a Brazilian Trade and Investment Promotion Group), Alliance International Ventures (a UK based Investment Banking Group), Atlantic Pacific Capital Corporation of the USA and KORMAH Development and Investment Corporation (KODIC), a regional investment banking group based in Abidjan, Ivory Coast as well as the National Institute of Small Industries Extension Training (NISIET) based in India.

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AGRICULTURAL DEVELOPMENT BANK Contact person name and details Sylvia Nyante [email protected] +233 (0)244369762

Years in Business 47Presence and Strategic Commitment to the North Branches in Tamale (2), Savelugu, Bole, Walewale, Wa, Yendi, Tumu, Bolgatanga and Bawku. The

total branch network in the country is 77.Current Agribusiness Lending and Tolerance to Risk Medium

Type of Financial Products for Agribusinesses Short-, medium- and long-term loans, equipment financing and working capital financing. Yet to operationalize Warehouse Receipt Financing.

Involvement in the rice, maize and soy sectors in Ghana (brief description)

Investments in the rice, soy and maize value chains. Willing to look at further opportunities in these value chains.

Average Tenor of Facilities 6 months – 10 years depending on the different actors in the value chain.%Portfolio in Agriculture 30%

Average Time for Processing of Facilities 3 to 4 weeksIndicative Interest Rates and other charges 24.91% plus a maximum spread of 3.25% per annum. In addition to this we charge a 1-2%

processing fee and 1% annual review feeFacility Processing Requirements Corporates/SMEs • Application letter and board resolution

• Business registration documents• Business plan• Last 1-3 years’ financial statements (audited/management accounts)• Projected cash flow for period of facility• Supporting application with reasons for facility• Security pledge for the facility

AGDEVCO GhANAContact person name and details Tom Phillips, [email protected] or +233 302 968 980/302 763 916

Years in Business 2Presence and Strategic Commitment to the North Investments in the Northern Region

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Long-term low-cost finance in the form of debt or equity (or a combination of the two)


Invests in Ghanaian agricultural SMEs

Average Tenor of Facilities 5-7 years depending on the different actors in the value chain%Portfolio in Agriculture 100%

Average Time for Processing of Facilities 3 – 6 months depending on responsiveness of clientIndicative Interest Rates and other charges $200,000 - $1,000,000 with a return expectation of 5-10% per annum

vii. FinAnciAl institution interest in Agribusiness lending

Ghana is home to a wide range of sophisticated financial institutions supporting the wider business community and agribusiness sector, ranging from non-bank financial institutions to rural banks, savings and loans and NGOs, cooperatives, government banks, commercial banks and a host of social impact investors and equity funds.

The USAID-FinGAP project conducted an assessment of the appetite of Ghana’s financial institutions to engage in agribusiness lending in October 2013. The assessment found that although many financial institutions stated an interest in expanding lending to SMiLEs and the agribusiness sector, few were successful at shifting large percentages of their lending portfolios in this direction, for a variety of reasons. Although this is not true among Ghana’s Rural and Community Banks and non-bank financial institutions, this finding is predominant among the larger, commercial banks, whose portfolios are most representative of Ghana’s overall lending (accounting for about 87% of all lending). The assessment also found that in spite of the large number of social impact investors and equity funds that have initiated operations in Ghana over the last decade, these entities are also not making a significant dent in the country’s and the Northern Region’s agribusiness funding requirements.

There are, however, an increasing number of initiatives taking place—including government and donor programs, new financing instruments, technological innovations of mobile banking and agriculture information platforms and capacity building—which are improving the landscape for agribusiness lending in Ghana. Strong relationships, built out of necessity, and direct finance between strongly-linked buyer/processors, aggregators and producers in Ghana, constitute another building block on which to expand agribusiness lending in Ghana.

A summary of an initial set of financial institutions most interested and poised to collaborate with the USAID-FinGAP project to expand agribusiness financing to SMiLEs is offered below.

AGDEVCO GhANAFacility Processing Requirements Corporates/SMEs • Certified copy of Certificate of Incorporation

• Certificate to commence business• Tax Clearance Certificate• Last 3 years financial statement (audited accounts)• Schedule of assets for principal shareholders• Company’s regulations• Written company presentation• Projected cash flow for period of facility• Projected profit and loss account for the period of facility• A supporting application with reasons for the facility• Board’s resolution authorising the facility

BANGMARIGU COMMUNITy BANK Contact person name and details Godwin Kofi Godi [email protected], 0209094991

Years in Business 22Presence and Strategic Commitment to the North Walewale in the Northern Region with agencies at Pwalugu and Yagaba

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Term loans and agriculture and SME loans


Yes

Average Tenor of Facilities 6 - 15 months%Portfolio in Agriculture 50%

Average Time for Processing of Facilities One week

Indicative Interest Rates and other charges 28% per annum, commitment fee of 5%Facility Processing Requirements Corporates/SMEs • Formal application letter

• IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to commence business• Bank statements • Security pledge for the facility

BONGO RURAL BANKContact person name and details Elvis Yieung Dery, [email protected], 0200644278

Years in Business 5Presence and Strategic Commitment to the North Head office located in Bongo; serves Bongo Central, Zorko, Soe and Akmyoga

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Agricultural loans and micro-loans


Rice and maize


Average Time for Processing of Facilities 7 daysIndicative Interest Rates and other charges 28% per annum, commitment fee of 5%

Facility Processing Requirements Corporates/SMEs • Formal application letter • IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to commence business• Bank statements • Security pledge for the facility• Crop budget• Guarantor • KYC

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BONZALI RURAL BANK Contact person name and details Osman Ali, [email protected], 0208341380

Years in Business 24Presence and Strategic Commitment to the North Head Office located at Kumbungu and branches at Tamale, Lameshegu, Yendi, Nyankpala and

KaragaCurrent Agribusiness Lending and Tolerance to Risk Medium

Type of Financial Products for Agribusinesses Microfinance loans, agriculture loans and business loansInvolvement in the rice, maize and soy sectors in

Ghana (brief description)Yes


Average Time for Processing of Facilities 6 working daysIndicative Interest Rates and other charges 27% per annum plus Commitment fee of 3% and permanent disability and death insurance fee of

1%Facility Processing Requirements Corporates/SMEs • Formal application letter

• IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to commence business• Bank Statements • Security pledge for the facility• Crop budget• Guarantor • KYC

CARD- FNGOContact person name and details Mr. Naresh Shukla (Group Manager) P.O. Box TL 1504, Tamale (NR) Phone 037-2023512 Mobile

024-4716849 E-mail: [email protected] in Business 15

Presence and Strategic Commitment to the North Operating in 12 metropolis/municipalities/districts Assemblies of the Northern Region: Tamale, Sanerigu, Yendi, Mion, Savelugu-Nanton, Central Gonja, East Gonja, Tolon, Kumbungu, Karaga, Tatale/Sanguli and Zubzugu

Current Agribusiness Lending and Tolerance to Risk Medium

Type of Financial Products for Agribusinesses Crops value chain cashless-finance, warehouse receipts (grain banking), and agro-processing/grains trading loans


Financing of smallholders’ FBOs engaged in production, processing and marketing of rice, maize and soybean.

Average Tenor of Facilities 8 - 12 months%Portfolio in Agriculture 3 working days

Average Time for Processing of FacilitiesIndicative Interest Rates and other charges 2.5% per month or 30% per annum

Facility Processing Requirements Corporates/SMEs • Application: Photo ID of directors• Registration certificates• Last 3 years financial records• Company’s Regulations• A write-up on the company• Projected cash flow for period of facility• Projected profit and loss account for the period• Board’s resolution authorizing the facility

CCh FINANCE hOUSE LTD Contact person name and details Alexis F. K. Aning [email protected]@yahoo.com, 0243971475

Years in Business 9Presence and Strategic Commitment to the North CCH Finance House Ltd. has financed the largest agriculture company in Ghana, which purchases all

of its produce from the North. It is developing a strategic approach to assist smallholder maize and soya farmers in the Upper West Region.

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Warehouse Receipt Financing (repo finance)


Financing of soy and maize projects for the past 2 years through the WRS. Structuring a line of credit based on warehouse receipt financing for the Ghana Rice Inter-professional Body. Facility was secured with Merchant Bank in the equivalence of GHS 2million, with the Ghana School Feeding Program as the off-taker.

Average Tenor of Facilities 12 months %Portfolio in Agriculture 100%

Average Time for Processing of Facilities 5 working daysIndicative Interest Rates and other charges 3%-10% above the FI’s interest extended to CCH plus 2% facility fee and 1% sellback fee

Facility Processing Requirements Corporates/SMEs • Certified copy of Certificate of Incorporation• Certificate to Commence Business• Last 3 years financial statement (audited accounts)• Proof of warehouse ownership• Insurance Policies (All Risk Insurance)• Letter of Credit or Insurance Guarantee• Off-take Contracts• List of Contracted Buyers• GGC Warehouse Receipt• Proof of GGC Membership (for grains financing)• Board Resolution authorizing Borrowing• Signed Global Master Repurchase Agreement• Signed Facility Letter• Signed Deal Slip (Annexure II)

EAST MAMPRUSI RURAL BANK Contact person name and details James Acquaye, [email protected], [email protected],

0208163744Years in Business 16

Presence and Strategic Commitment to the North Head Office located at Gambaga with branches at Nalerigu and Bunkprugu. In addition, there are three mobilization centres at Laugbesi, Gbintri and Nakpanduri.

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Term loans, agriculture loans and micro Loans


Currently involved in rice and maize


Average Time for Processing of Facilities 48 hoursIndicative Interest Rates and other charges 28% per annum plus a commitment fee of 3%

Facility Processing Requirements Corporates/SMEs • Formal application letter • IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to Commence Business• Bank Statements • Security pledge for the facility• Crop budget• Guarantor • KYC

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ExIMGUARANTy COMPANy GhANA LIMITEDContact person name and details Joyce O. Arthur, 0302768764, [email protected]

Years in Business 20Presence and Strategic Commitment to the North Regional Office in Kumasi is responsible for the Northern Region. The company plans to establish an

office in Tamale in the near future.Current Agribusiness Lending and Tolerance to Risk Medium

Type of Financial Products for Agribusinesses Credit guarantees, seed fund guaranteeInvolvement in the rice, maize and soy sectors in

Ghana (brief description)Agriculture and agriculture-related businesses

Average Tenor of Facilities 24 months %Portfolio in Agriculture 15%

Average Time for Processing of Facilities 72 hours Indicative Interest Rates and other charges Commission of 2-3%

Facility Processing Requirements Corporates/SMEs • Complete requisite EximGuaranty application for Credit Guarantee (download the form from www.eximghana.com/customer-care/eforms)

• Detailed appraisal report from the financial institution• Cover letter indicating percentage of cover required• Business registration documents • Banks statements • KYC (IDS and photographs, location of business, residential address, etc)

FORMS CAPITALContact person name and details William Arthur, [email protected], 0244338201

Years in Business 3Presence and Strategic Commitment to the North N/A

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Business SME loans and Leasing


Open to any opportunity

Average Tenor of Facilities 12 months%Portfolio in Agriculture 5%

Average Time for Processing of Facilities 5 working daysIndicative Interest Rates and other charges 30% per annum plus commitment fee of 3%

Facility Processing Requirements Corporates/SMEs • Formal application letter • IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to Commence Business• Bank Statements • Security pledge for the facility.• Guarantor • KYC

GAIPContact person name and details Alhaji Ali Mohammed Katu, [email protected], 0208133163

Years in Business 3Presence and Strategic Commitment to the North Yes

Current Agribusiness Lending and Tolerance to Risk HighType of Financial Products for Agribusinesses Drought index insurance for maize and soya, as well as multi-peril crop insurance tailor-made to

cover the various risks experienced by commercial farmers in maize rice and soy.Involvement in the rice, maize and soy sectors in


Average Tenor of Facilities Weather index insurance for the lifespan of crop excluding the harvesting of the produce. The Multi-Peril Crop Insurance covers a 12-month period subject to renewal.

%Portfolio in Agriculture 100%Average Time for Processing of Facilities Index Insurance – up to 2 weeks, Multi-Peril Crop Insurance – 2 to 4 weeks

Indicative Interest Rates and other charges 10% for the Index Insurance on the sum insured. Premium for the Multi-Peril Crop Insurance of 0.5% to 1.5%

Facility Processing Requirements Corporates/SMEs Proposal FormSurvey to be conducted

INJARO INVESTMENT ADVISORS / INJARO AGRICULTURAL VENTURE CAPITAL LIMITEDContact person name and details Mirabelle Moreaux, 0302 950 917, [email protected]

Years in Business 3Presence and Strategic Commitment to the North Invested in the Northern Region

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Equity which may be accompanied by shareholder loans


Invested in the production of improved maize seeds aimed at improving farm yields for smallholder farmers

Average Tenor of Facilities 5 -7 years depending on the actors in the value chain%Portfolio in Agriculture 100%

Average Time for Processing of Facilities 3 – 6 months depending on responsiveness of clientIndicative Interest Rates and other charges Equity investors; no interest rates specified

Facility Processing Requirements Corporates/SMEs • Certified copy of Certificate of Incorporation • Certificate to Commence Business• Tax Clearance Certificate• Last 3 years financial statement (audited accounts)• Schedule of assets for principal shareholders• Company’s Regulations• A write-up on the company• Projected cash flow for period of facility• Projected profit and loss account for the period of facility• A supporting application with reasons for the facility• Board’s resolution authorising the facility

NAARA RURAL BANKContact person name and details Patrick Abelinyenga, [email protected], 0207532615

Years in Business 30 Presence and Strategic Commitment to the North Head office in Paga with branches at Bolgatanga, Navrongo Sirigu. Mobilization centre at Chiana.

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Term loans, agriculture loans and Naara microloans


Currently involved in rice, maize and soy farmers


Average Time for Processing of Facilities 2 weeksIndicative Interest Rates and other charges 26% per annum. In addition to this we charge a processing fee of 3%.

Facility Processing Requirements Corporates/SMEs • Formal application letter • IDS and photographs• Certified copy of Certificate of Incorporation • Certificate to Commence Business• Bank Statements • Security pledge for the facility.• Crop budget• Guarantor• KYC • Collateral

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PROCREDIT SAVINGS AND LOANS LIMITEDContact person name and details Carlotta Bannerman Amandey, [email protected], 02044341613

Mahmood Suleiman, [email protected], 0544342740Years in Business 12

Presence and Strategic Commitment to the North 24 branches spread across the country. No physical presence in the north.Current Agribusiness Lending and Tolerance to Risk High

Type of Financial Products for Agribusinesses Agro working capital, agro asset financing and term loans


Currently involved in rice and maize


Average Time for Processing of Facilities 3-4 weeks Indicative Interest Rates and other charges 26% per annum plus a spread of between 2% and 8% depending of the risk profile of the customer.

Commitment fee of 1-2%.Facility Processing Requirements Corporates/SMEs • IDS and photographs

• Formal application letter • Certified copy of Certificate of Incorporation • Certificate to Commence Business• Security pledge for the facility.• Guarantor

ROOT CAPITALContact person name and details Barbara Ghansah, [email protected], +233 244 230 162

Senegal office: Sacre Coeur 1, Villa 8553, 1er etage, Dakar, Senegal. Phone: (221) 33.865.38.88Years in Business 9

Presence and Strategic Commitment to the North Supports agricultural businesses and producers’ associations that are sustainably improving incomes and livelihoods in all of Ghana. 75% of loan portfolio in Ghana is in the 3 northern regions.

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Working Capital (short-term lending to finance the borrower’s day-to-day operations), Capital

Expenditure (CAPEX - long term lending to finance expansion needs, such as purchase of equipment and machinery) and short-term trade credit (oriented around the harvest or production cycle).


Investments in each sector, under Food Security & Nutrition portfolio

Average Tenor of Facilities Short-term loans 6-18 months, long-term loans up to 5 years. Up to 3 disbursements %Portfolio in Agriculture 98% in Ghana

Average Time for Processing of Facilities 4 – 6 weeks after submission of all information required from client.Indicative Interest Rates and other charges Lends in U.S. dollars, euros, pounds sterling and local currencies, in line with local commercial

lending rates plus 1% closing fee and no early repayment fees or penaltiesFacility Processing Requirements Corporates/SMEs • Completed application form

• Business registration and ownership documents• 3 years of financial statements and projected cash flow statements• Any other relevant documents as required

SINAPI ABA SAVINGS AND LOANS LIMITEDContact person name and details Frank Brobbey, [email protected], 0208764990

Years in Business 19Presence and Strategic Commitment to the North 8 branches in the north: Tamale, Wa, Bolgatanga, Jirapa Walewale, Salaga Bole and Atebubu, with

plans to expand.Current Agribusiness Lending and Tolerance to Risk Medium

Type of Financial Products for Agribusinesses Agro Working Capital, Agro Asset Financing Involvement in the rice, maize and soy sectors in



Average Time for Processing of Facilities 2 weeksIndicative Interest Rates and other charges 18% for equipment, 30.5% for production and 32% for aggregators plus commitment fee of 2.5%

for production and 3.5% for aggregatorsFacility Processing Requirements Corporates/SMEs • IDS and photographs

• Formal application letter • Certified copy of Certificate of Incorporation • Certificate to Commence Business• Bank Statements • Security pledge for the facility• Crop budget• Guarantor • KYC • Market Analysis

TUMU COOPERATIVE CREDIT UNION Contact person name and details Abubakari Adamu, [email protected], 0208300375

Years in Business 28Presence and Strategic Commitment to the North Tumu, Gwollu and Bugubelle

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Gizo and Gizo, agriculture loans and microloans support for women


Mainly involved in maize and soy


Average Time for Processing of Facilities Not more than 5 working daysIndicative Interest Rates and other charges 26% per annum plus 5% as commitment fee and insurance

Facility Processing Requirements Corporates/SMEs • Applicant must be a member of the Credit Union• Saved for six months • Contributed up to 50% of the amount of the facility applicant intends to access• IDS and photographs • Guarantor should be a member of the union

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UT BANKContact person name and details Mubarak Bowan, [email protected], +233 (0)202 222535

Years in Business 17Presence and Strategic Commitment to the North Tamale; plans for new branches at Bolga and Wa

Current Agribusiness Lending and Tolerance to Risk MediumType of Financial Products for Agribusinesses Term loans, equipment financing, leasing, insurance premium financing and working capital financing

and overdraftsInvolvement in the rice, maize and soy sectors in

Ghana (brief description)Has invested in the rice and maize value chains for the past 5 years. Willing to look at any opportunity in rice.

Average Tenor of Facilities 1 – 5 years depending on the actors%Portfolio in Agriculture 5%

Average Time for Processing of Facilities 2 working daysIndicative Interest Rates and other charges 30% per annum plus 1% processing fee and 1% monitoring fee

Facility Processing Requirements Corporates/SMEs • Certified copy of Certificate of Incorporation • Certificate to Commence Business• Last 1-3 years financial statement (audited/management accounts)• Company’s Regulations• A write-up on the company• Projected cash flow for period of facility• Projected profit and loss account for the period of facility• Supporting application with reasons for facility• Board’s resolution authorizing the facility• Security pledge for the facility.

viii. usAid|FingAp And Agribusiness trAnFormAtion in northern ghAnA

USAID-FinGAP’s vision for supporting increased investment and finance in the agribusiness field is to support the creation and sustainability of support platforms for finance to agribusiness SMiLEs over the long term. The project will utilize a set of subsidies to support technical assistance and financing among SMiLEs, financial institutions and BAS providers to kick-start new markets for SMiLE agribusiness financing, in particular among women agribusiness SMiLEs. The size of subsidies will decrease over time, as SMiLEs generate more capability in applying for, and managing, loans and investment, and as business advisory service providers become more aware of the potential and profitability in serving the growing SMiLE agribusiness market. By bringing financial institutions a consistent pipeline of viable investments and lending opportunities in the agribusiness space, financial institutions will also learn the extent to which investing in agribusiness SMiLEs is a profitable new market with high growth potential.

USAID-FinGAP began its work by mapping a set of initial, potential, finance and investment transactions in the agribusiness field in Northern Ghana, which are presented in this booklet, and are available online at the following web address: http://goo.gl/2O0OIV

As an additional incentive, USAID-FinGAP is also developing web-based, publicly available, interactive software that will allow potential investors worldwide to visualize the extent to which future agribusiness opportunities exist in Northern Ghana based on projected increases in agricultural growth. The beta test of this software will be initiated in April 2014, and rolled out for public consumption in early summer 2014. The expectation is that this software platform will continue to stimulate agribusiness investment and finance in Northern Ghana’s agribusiness SMiLEs over the long term.

Abundant land, sufficient rainfall, decent infrastructure, a good security environment and a positive investment climate are all attributes upon which investors can build to support Ghana’s continued agricultural development. The opportunity for investors lies both in extending the production surface of rice, maize and soy in the North, as well as intensifying and improving the yield and quality of production. Increased and improved farm production and post-harvest handling in Ghana’s North among the soy, rice and maize value chains will positively contribute to Ghana’s goal of achieving 100% food self-sufficiency. A wide range of potential investment opportunities exist in Ghana’s North that can contribute positively towards increased productivity and national development objectives, while simultaneously offering positive financial returns to investors.

For more information on these investment opportunities or information on the

USAID-FinGAP project, please contact Rick Dvorin at [email protected]

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