Ashanti

Wumpini Agro Chemical

Significant demand for affordable agricultural inputs provides an opportunity for investing in a leading agrochemical dealer with a vision to expand.

Investment needed: $1,500,000–2,600,000

USAID FinGAP Environmental Risk Review required
Business Type
Input
Deal Type
Debt, Equity
Financing
Cap-Ex, Working Capital
Value Chain
Maize, Rice, Soy

Market Opportunity

The high cost of inputs for agricultural production, combined with the efforts of GoG and donors to develop major crop value chains, have created enormous opportunities downstream for agricultural inputs. In recent years, demand for chemical fertilizers, herbicides, and insecticides has been growing annually by an estimated 15%, 20%, and 12% respectively.

Investment Opportunity

Wumpini Agro Chemical has set out to achieve its vision of capturing the market for agricultural inputs in the Upper East Region. The company was established in 2003 and has over 10 years of experience dealing in agro-inputs. On average, Wumpini Agro Chemical sells over 99,000 MT of various fertilizers, 330,000 liters of herbicides, and 60,000 MT of insecticides annually to over 200,000 smallholders and farmer-based organizations (FBO) involved in agricultural production.

Wumpini Agro Chemical’s suppliers have struggled to meet its demand and deliver products on time. The company now has an opportunity to import inputs directly, and major global manufacturers are looking to partner with Wumpini. The company requires financing to import large quantities of fertilizers, herbicides, and insecticides to be able to offer competitive prices to its clients. It also requires multi-crop shellers, tractors, and accessories to scale up its seed production.

Wumpini continues to build on its longstanding relationship with smallholder farmers and FBOs as well as on its aggressive marketing communications, personal selling, and wide community-based sales networks to remain the market leader. Importing directly from the manufacturers will strategically position the company to capture the many small district-based agro-input dealers by providing them with the most competitive offer available in Northern Ghana.

Investment Required

Wumpini Agro Chemical requires US$1.5 million to US$2.6 million for capital expenditure (warehouses) and working capital to procure agro-inputs and equipment. The company is interested in both debt and equity.

BAS Needed

Wumpini Agro Chemical has hired CSLD, a BAS provider, to support the firm in accessing appropriate financing/investment.

Environmental Considerations

Wumpini must implement its environmental management plan and the USAID FinGAP Safe Use Action Plan for the agro-inputs that it distributes to farmers.

Supporting Initiatives

Wumpini’s business prospects will be enhanced by continued support from GoG and donor-funded projects that facilitate increases in productivity through soil health improvement and crop protection measures, as well as the use of improved, high yield seeds.

Contact Info

Issahaku Wumpini, Managing Director, +233 (0) 244 290 265; (0) 206 418 231; wumpini.agro@yahoo.com