Ghana’s agriculture sector is underserved with respect to access to inputs. In recent years, demand for fertilizer has been growing by 15% annually, yet 40% of farming communities are not able to access even the government-subsidized fertilizer program. Supply-side constraints are compounded for smallholder farmers due to their lack of financial resources and training in input application, resulting in very low penetration of fertilizers, agro-chemicals, and high-quality seeds. There are enormous opportunities downstream in Ghana’s inputs sector, particularly in inclusive business models that integrate farmer training on how to use modern agricultural inputs and innovative financing solutions to enable smallholder purchases.
North Gate Agro Products Enterprise (North Gate), a major distributor of agro-chemicals, fertilizers, and seed in Techiman, Brong Ahafo Region, is seeking investment to expand its business and extend its agro input distribution network to smallholder farmers in northern Ghana and beyond. Established in 2000, North Gate has a strong management team and good strategic location in the market center of Techiman, which serves as a bridge between the north and south of Ghana. Expansion of the firm’s distribution network will enable it to meet agriculture customers’ growing needs. Currently, North Gate has a network of 44 smaller agro dealers who sell to more than 25,000 smallholder farmers in northern Ghana and to farmers in neighboring Côte d’Ivoire and Burkina Faso. The company backs the sale of its agro inputs with capacity-building training for smallholder farmers on proper use of agro-chemicals, fertilizers, and seed, leading to higher productivity and incomes. North Gate has the largest warehouse facility in the vicinity and is capable of stocking large volumes of inputs for distribution.
North Gate is seeking up to $250,000 in working capital, which will enable it to expand its business by about 50%— less than the 70% growth the company already achieved from 2013 to 2014. North Gate is also exploring access to equity financing and listing on the Ghana Alternative Market (GAX).
North Gate could benefit from support of a Business Advisory Services (BAS) provider to help obtain funds from a financial institution. Financial information is available upon request.
An environmental risk assessment has been undertaken by Ghana’s Environmental Protection Agency (EPA).
Numerous donor and government initiatives support this investment, including:
- Savannah Accelerated Development Authority (SADA)
- Northern Rural Growth Programme (NRGP), funded by the African Development Bank (ADB), International Fund for Agricultural Development (IFAD), and government of Ghana (GoG)
- USAID-sponsored Agricultural Development and Value Chain Enhancement (ADVANCE) project
- International non-governmental organizations (NGOs) and projects, such as TechnoServe (John Deere), Mennonite Economic Development Associates (MEDA), SNV Netherlands Development Organization, and Canadian International Development Agency (CIDA)
- Farmer-based organizations (FBOs) being promoted by the Ministry of Food and Agriculture (MoFA)
Mrs. Elizabeth Eva Dwamena, Managing Director, +233 (0) 208 162 116 email@example.com