Ghana firm boosts shea farmers with digital supply chain funding

A €1.8 million investment will help a Ghanaian firm modernize the shea nut industry by digitizing its supply chain. Vitara Agritech, previously called Sommalife, obtained the funding from a coalition headed by AgriFI, a facility backed by the European Union, alongside contributions from Acumen and angel investors. The money will expand TreeSyt, a system that monitors shea production from farms to buyers, while deepening connections with producers in northern Ghana.

Shea nuts, which become fat used in cosmetics, medicines, and chocolate, represent a major export for Ghana, with annual output ranging between 130,000 and 150,000 metric tonnes. The industry remains disjointed, however, with many growers lacking financing, stable buyers, or fair compensation. Women account for 91% of Vitara’s farmer network, often laboring under harsh conditions to process nuts for minimal returns before selling to middlemen.

The TreeSyt platform resolves some of these issues by digitizing farmer registration, payments, and supply chain tracking. It logs transactions as nuts travel from communities to purchasers, allowing manufacturers to verify sourcing and comply with traceability requirements. A collaboration with MTN Ghana enables mobile money transfers, ensuring remote farmers receive payments without needing physical infrastructure.

By sourcing directly, Vitara eliminates middlemen, increasing producer earnings. During the most recent shea season, the company engaged 47,000 women, and by late 2025, it had enrolled 150,000 farmers, with 40,000 actively involved in its programs. Income gains vary by report: Vitara states its pricing model lifts earnings by 20%, while a Rabo Foundation study found that 13,450 women saw average incomes climb by 92% to GHS 3,800, equivalent to roughly €298, in the 2024/25 season. These figures reflect different timeframes but collectively indicate substantial progress.

The initiative has also protected 1,500 acres of shea parklands and formalized conservation agreements with 59 communities. Vitara’s long-term target is to onboard one million farmers by 2030, though expansion hinges on balancing technological growth with dependable field operations. Farmers must remain engaged, maintain product quality, and trust the payment systems to keep participating.

This funding aligns with broader trends in agricultural financing. AgriFI’s €10 million Ghana Country Window, managed by EDFI Management Company, supports businesses integrating smallholder farmers into commercial networks. This deal marks the facility’s first direct equity investment, reflecting the EU’s commitment to sustainable resource management in Ghana. Impact investors like Acumen recognize potential in Vitara’s approach, which merges digital tools with direct sourcing to address market inefficiencies.