Wami Agro Digital VSLA

Over 70% of the farmer population in Ghana are smallholder farmers who have limited access to markets and limited access to input credit because they are largely unbanked. This prevents them from taking advantage of economic possibilities such as accessing loans, insurance and pension schemes and this leaves them susceptible to lifelong poverty. These smallholder farmers have very peculiar barriers that prevent them from being banked individually such as lack of National ID, illiteracy and inadequate network and internet coverage in some remote rural areas. Hence innovation is highly required to enable these farmers to save, borrow and build wealth to lift them out of poverty. 
Fortunately, most of these farmers belong to farmer-based groups with an established organizational structure, by-laws and VSLAs which allow members to borrow upon approval of all members of the group. However, these VSLAs operate with a cash box and in dire cases keep the money in open bowls covered with cloths. Such monies saved by these VSLAs mostly get stolen, lost, and or lose it's value through depreciation.

We currently provide a three-pillared service to over 11,000 farmers. The primary pillar is through the provision of credit to groups of smallholders in Village Savings and Loan Associations (VSLAs) in the form of agricultural inputs such as fertilizer, seeds, and mechanization equipment. In partnership with Financial Institutions (FIs) in Ghana, We are onboarding VSLAs transforming them into savings accounts banked by financial institutions. The agents of these FIs provide farmer-based groups with account opening forms and through the assistance of Wami Agro agents complete and facilitate the opening of savings accounts for these groups. Wami Agro also assists these farmer-based groups to obtain a Mobile Money account which is linked to their various savings accounts to enable easy access for deposits and withdrawals extending access to hard-to-reach communities. 

Our proprietary digital platform has an AI credit scoring system that identifies credit-worthy VSLAs who will then receive input finance (such as seeds, fertilizer, and mechanization) services twice and subsequently thrice the worth of their savings financed by the FIs. Our platform also offers smallholder farmers an effective farm management system and a comprehensive farm monitoring system. 

The second pillar is the mechanism through which repayment on credit is obtained. Wami Agro purchases farmers’ produce from them at a rate minus the cost of inputs, plus interest. These goods are sold on to trade partners – ensuring smallholders guaranteed market access, and trade partners a fully traceable supply chain.

The third pillar is integral to the business and reflects the delivery of information to our network of farmers. We deliver weather updates to farmers’ mobile devices in a range of dialects through our voice note bulk broadcasting system on our digital platform. In addition, we provide education and training to build capacity among farmers. This increases productivity and gives our network the knowledge and financial wherewithal to ensure they can adapt to weather shocks and avoid crop failure. 

Smallholder farmers in Ghana are typically rural farmers who cultivate small plots of land (maximum of 2 acres) for subsistence and for sale. They play a significant role in the agricultural sector and make up over 70% of the farmer population in the country. These farmers are often poor and lack access to basic resources such as education, healthcare, and infrastructure.
Their farming practices are often characterized by low productivity due to limited access to inputs such as quality seeds, fertilizers, and pesticides. They also rely heavily on traditional farming methods which are often inefficient and labor-intensive.
In addition to facing challenges related to agricultural production, smallholder farmers in Ghana also face a number of socio-economic challenges. They are often isolated from markets, and have limited access to credit, insurance, and savings services. They also face a number of unique barriers to financial inclusion, such as lack of National ID, illiteracy, and inadequate network and internet coverage in some remote rural areas. These factors make it difficult for them to access traditional banking services, leaving them vulnerable to theft, loss, and depreciation of their savings.These factors make it difficult for them to invest in their farms and improve their livelihoods. Overall, the lives of smallholder farmers in Ghana are marked by poverty, isolation, and limited access to resources.
Overall, the solution presented by Wami Agro will directly and meaningfully improve the lives of smallholder farmers in Ghana by providing them with access to basic financial services, credit, and inputs that will enable them to boost their production and increase their income. By doing so, it will address the unique barriers to financial inclusion faced by smallholder farmers in Ghana and support their path out of poverty.

We are the right team to design and deliver this solution because we have a deep understanding of the challenges facing smallholder farmers in Ghana. Our team has a strong presence in the communities we are serving, and a deep understanding of the cultural, social, and economic dynamics of these communities.
Our Team Lead and the team representative are representative of these communities because we have lived and worked in these communities for the past 3 years. This has provided us with first-hand experience and knowledge of the challenges facing smallholder farmers across Ghana. We also have established relationships and networks within the communities we operate, which is crucial for building trust and engaging community members.
The Wami Agro team has engaged in extensive consultations and dialogue with the community leaders and other stakeholders to understand the needs of those we are serving. We’ve had focus group discussions, and individual interviews to gather information about the challenges facing smallholder farmers in the area. Our team also works with local leaders and community-based organizations to ensure that our interventions are relevant and appropriate.
The design and implementation of our solution is meaningfully guided by the communities’ input, ideas, and agendas. We’ve employed a participatory approach to the design and implementation process and engaged with community members throughout the process. Our team constantly involves leaders and the leadership of the farmer-based groups in our decision-making, problem-solving, and planning, and obtain their feedback and input at every stage of the process. This guarantees our developed solutions are relevant, appropriate, and responsive to the needs of the community.
In addition, we’ve prioritized community ownership and sustainability in the design and implementation of our solution. We continuously work with community members to build their capacity and empower them to take ownership of the solutions developed. We also prioritize local partnerships and collaborations, working with local leaders, organizations, and institutions to ensure that the solutions are sustainable and have a lasting impact. We have ensured that the solutions we’ve developed are responsive to the needs of the community and have a meaningful impact on the lives of smallholder farmers in Ghana.

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We seek to have a financial partner who will provide us with lines of credit for us to procure farm input for us to disburse with eligible smallholder farmers we work with. 

In addition, we would like to take advantage of new markets outside Africa and hence we may require help to surmount market barriers within Africa and outside. 

Our solution is leveraging the existing organizational structures of farmer-based groups and VSLAs to provide financial services to smallholder farmers who are largely unbanked. By transforming these groups into savings accounts banked by financial institutions, we are able to extend financial services to hard-to-reach communities, where lack of national ID, illiteracy, and inadequate network and internet coverage have prevented farmers from accessing loans, insurance, and pension schemes.
Also, the use of our AI credit scoring to select credit-worthy VSLAs for input finance is a significant departure from the traditional approach to agricultural financing in Ghana, which is often based on collateral-based lending. By using AI credit scoring, we are able to extend credit to farmers who may not have the necessary collateral to secure loans from financial institutions. This approach not only increases access to finance for smallholder farmers, but also reduces the risk of default for financial institutions.
Our solution is designed to provide a holistic package of financial services to smallholder farmers. By enabling these farmers to save, borrow, and build wealth, Wami Agro is helping to lift them out of poverty and build more resilient communities. Moreover, by linking these farmers to insurance, pension schemes, and other financial products offered by financial institutions, We are helping to address the financial exclusion of smallholder farmers in Ghana.
By demonstrating the feasibility and profitability of providing financial services to smallholder farmers, we are encouraging other financial institutions to expand their services to this underserved population. Additionally, by leveraging existing organizational structures, we are demonstrating the value of community-based solutions to poverty alleviation and financial inclusion. This can inspire other social entrepreneurs to develop similar solutions in other sectors.
By demonstrating the viability of using AI credit scoring to extend credit to smallholder farmers in Ghana, we hope to change the market. By reducing the risk of default and increasing access to finance for farmers who may not have collateral, we are helping to create a more inclusive financial sector that is better able to serve the needs of all Ghanaians, regardless of their socio-economic status or location.

To scale our solution to reach 100,000 farmers. We will leverage partnerships with farmer-based organizations and Not-for-profits. 

To undertake projects that enable farmers to transition into regenerative agriculture. To partner with smallholder farmers for net-zero transitions in agriculture and food systems. We will partner with relevant research institutions to design projects with the aim of achieving net-zero transitions amongst farmers.  

To expand into two other sub-Saharan African countries. We will leverage partnerships with organizations in the selected countries.

We make a quarterly assessment of the number of beneficiaries of our solution.

We also keep track of activities that lead to high greenhouse gas emissions and deploy innovative alternatives. 

Wami Agro's solution can help smallholder farmers in Ghana by transforming their farmer-based groups into savings accounts banked by financial institutions. This will allow these farmers to access loans, insurance, pension schemes, and other financial products offered by the financial institutions.

To achieve this, Wami Agro will partner with Financial Institutions (FIs) in Ghana, to onboard VSLAs, transforming them into savings accounts banked by financial institutions. The agents of these FIs will provide farmer-based groups with account opening forms and through the assistance of Wami Agro agents, complete and facilitate the opening of savings accounts for these groups.
Wami Agro will also assist these farmer-based groups to obtain a Mobile Money account which will be linked to their various savings accounts to enable easy access for deposits and withdrawals, even in hard-to-reach communities. The president, secretary, and treasurer of the VSLAs will be signatories and all will receive SMS or Instant Voice Response (IVR) alerts confirming all activities (deposits, withdrawals, etc.) pertaining to the account.
Wami Agro will use AI credit scoring to select credit-worthy VSLAs who will then receive input finance twice and subsequently thrice the worth of their savings financed by Sinapi Aba and RDF. Approved VSLAs will receive inputs in the form of seeds, fertilizers, pesticides and mechanization services from Wami Agro Limited, which will help the farmers expand their production.
The savings of the VSLAs will be left untouched and used as a form of collateral while it accrues interest for the group. Furthermore, these farmers would be able to access insurance, pension schemes, and many other financial products offered by financial institutions.
This solution will help smallholder farmers in Ghana by providing them with access to formal financial services that they currently lack. It will also provide them with credit and other financial products to enable them to invest in their farms and expand their production.
This will ultimately increase their income, improve their standard of living, and reduce their vulnerability to poverty. This solution will also promote financial inclusion and help to drive economic growth in the agricultural sector in Ghana.
By leveraging technology and partnering with financial institutions, Wami Agro's solution will create a more efficient and effective way to provide financial services to smallholder farmers in Ghana. This will catalyze broader positive impacts by encouraging other organizations to adopt similar approaches and creating a more inclusive and sustainable financial ecosystem in Ghana.

A digital web-based platform that has features including an effective farm management (Database) system, a comprehensive farm monitoring system, a FIN-TECH App, a voice note bulk broadcasting system and an AI credit scoring software. 

We believe in diversity and consciously allow different perspectives from our planning to execution stages. We are deliberately building an inclusive business and hence look forward to collaborations with people from diverse backgrounds. 

Our business model has 2 main revenue streams;

Up to 30% in sales revenue: we aggregate from our farmers at farm gate prices and sell at market prices.
Up to 5% in commissions from partnerships with input suppliers.

Plow back profits

Adhere to cashflow management principles

To raise patient capital to invest in Capex

we work with existing traditional financial arrangements available to farmers in rural communities, for example VSLAs

For example, we bootstrapped in our first two years of operations since inception and raised a seed of about 220,000 in our third year. We have benefitted from ploughing back profits as shareholders of the company have not been paid dividends since inception.

Furthermore, we have been able to leverage contributions from farmers as cash collaterals to enable third-party financial institutions to fund crop finance for farmers using our platform. This means that we do not need to rely on our balance sheet to provide finance for farmers.