Ghana's Vitara raises $2 million: What it means for SMEs in the shea supply chain

A shea buyer needs a steady supply of nuts. The women collecting them need somewhere to sell their harvest. Connecting those two sides of the business is what Ghanaian agritech company Vitara is trying to do, and it has secured $2 million to expand its operations. The company raised €1.8 million in equity funding from the European Union-backed AgriFI Ghana Country Window, impact investor Acumen and angel investors. Vitara, previously known as Sommalife, works with farming communities in northern Ghana, sourcing shea nuts for international manufacturers.  The money will support the company's sourcing network and its TreeSyt platform, which it uses to keep records of farmers, purchases and other activity across its supply chain.

The business behind shea butter

Shea nuts are collected and processed into butter and oil used in skincare, cosmetics and food products. For manufacturers, buying the ingredient means dealing with suppliers spread across rural communities and keeping track of where the raw material comes from. Vitara uses TreeSyt to record its dealings with farmers and track sourcing activity. It has also partnered with MTN Ghana to support mobile money payments through the platform. 

These tools help the company manage its buying operation, but the business still comes down to supply and demand. Vitara needs farmers to bring in good-quality shea and manufacturers to keep placing orders.

Most of its farmers are women

Vitara says women account for around 91% of the farmers in its network. It reported working with approximately 47,000 women farmers during the latest shea season. The company says its pricing and payment arrangements have increased farmer incomes by 20%. That figure has been reported by Vitara, and the available funding announcement does not provide enough detail to assess how the increase was measured across its network. 

The question for farmers is whether selling through Vitara gives them a dependable buyer and a better return for their work. Digital payments may make transactions easier to manage, but they do not guarantee higher prices or regular sales.

Funding to reach more farmers

The investment will help Vitara grow its sourcing operations and develop TreeSyt. The company has set a target of reaching one million farmers by 2030, well above the roughly 47,000 women farmers it reported working with during the latest season. 

AgriFI's Ghana Country Window is a €10 million facility managed by EDFI Management Company. It invests in businesses working with smallholder farmers in Ghana's five northern regions. The Vitara deal is the facility's first direct equity investment in a Ghanaian company. 

Expanding the farmer network will take more than signing up new suppliers. Vitara must find enough buyers for the shea it collects, maintain quality and keep payments moving as its purchasing volumes increase. If it brings more farmers into the business but cannot sell their produce consistently, growth will be difficult to sustain.

What to watch next

Vitara now has more capital to build its business, but the important figures will come after the funding announcement: how much shea it buys and sells, how many farmers supply it regularly, and whether those farmers earn more over time. For manufacturers, the attraction is a supplier that can provide shea and account for where it came from. For farmers, the deal matters if it brings more reliable sales and payments. Those are two different needs, and Vitara has to serve both if it wants to grow.