Sub-Saharan Africa has immense agricultural potential, with studies suggesting its output could triple with the right investments. However, challenges like poor access to quality inputs, inadequate infrastructure, and limited market opportunities continue to hinder growth. Agriculture contributes 23% of the region’s GDP, with 60% of the population engaged in small-scale farming.
To address these challenges, Ghana-based agritech company Farmerline has developed solutions to improve farmers’ access to high-quality inputs, education on sustainable farming practices, and better market access. Its efforts aim to reduce post-harvest losses and improve farmer incomes, tackling critical gaps in Africa’s agri-food sector.
Scaling Up with Fresh Investment
Founded in 2013 by Alloysius Attah and Emmanuel Owusu Addai, Farmerline recently secured $12.9 million in pre-Series A funding, comprising $6.4 million in equity and $6.5 million in debt. The equity round was led by Acumen Resilient Agriculture Fund (ARAF) and FMO, with participation from the Greater Impact Foundation. Debt financing came from DEG, Rabobank, Rippleworks, and others.
This funding will support Farmerline’s ambitious plan to grow its reach to 300,000 farmers in 2022, a 400% increase from the previous year. The expansion begins in Ghana, with plans to extend to neighboring Ivory Coast.
Building Infrastructure and Strengthening Distribution
Farmerline aims to use the funds to establish essential infrastructure such as warehouses and distribution networks. Alloysius Attah describes the company as the “Amazon for farmers,” combining physical and digital systems to enable efficient movement of goods and services to and from rural areas.
“We want to strengthen infrastructure and logistics by collaborating with partners, ensuring farmers have seamless access to inputs like fertilizers and seeds while transporting produce efficiently to markets,” Attah explained.
Partnering for Impact
Farmerline collaborates with agribusinesses, typically small retail shops, to distribute farm supplies and educational resources. These shops serve as trusted intermediaries between Farmerline and the farmers, helping with training and distributing inputs.
The startup’s proprietary AI platform, Mergdata, plays a crucial role. It digitizes farmers’ data, predicts input demand, and enables supply chain transparency. Retailers use the platform to manage operations, while Farmerline uses the data to guide credit scoring and provide loans for business expansion.
“Working with agribusinesses not only made our operations scalable but also increased our impact. During the pandemic, these partnerships became critical for reaching farmers,” said Attah.
Expanding Farmer Reach
In 2021, Farmerline more than doubled its direct reach, serving 79,000 farmers, compared to 36,000 in 2020 and just 8,000 in 2019. Through third-party licensing of Mergdata, it has digitized over 1 million farmers across 26 countries. Notably, Benin uses the platform as a national market information system.
Transforming the Agri-Food Sector
Farmerline’s innovative approach and growing footprint underscore its potential to transform Africa’s agricultural sector. By addressing long-standing barriers, the company is paving the way for smallholder farmers to thrive, ensuring sustainable food production and economic growth across the region.
