One Million Ethiopian Farmers Set to Receive Digital Financial Services
The IFC and Kifiya Financial Technology have partnered to provide digital financial services to one million Ethiopian farmers through a $900,000 project, which will run until June 2027. The project aims to enhance Cash in/Cash out services and create digital profiles for farmers, aligning with Ethiopia’s Digital Agriculture Roadmap and supported by the Gates Foundation.
The International Finance Corporation (IFC) has entered into a partnership with Kifiya Financial Technology to deliver digital financial services to one million smallholder farmers in Ethiopia. The initiative, known as the Digitizing Small Holder Farmers Project, has an estimated budget of $900,000 and is set to run until June 2027. Its main objectives are to enhance the quality and quantity of Cash in/Cash out (CICO) agents and to digitally map and profile a million farmers across key regions in Ethiopia.
This initiative, which aligns with the Ethiopian government’s Digital Agriculture Roadmap, is supported by the Gates Foundation. The roadmap aims to integrate digital tools along the agricultural value chain. Munir Mohammed Duri, CEO of Kifiya, emphasized the significance of this initiative, stating that it will unlock financial opportunities for farmers, improve productivity, and enhance their livelihoods through data-driven solutions.
Additionally, Kifiya has been at the forefront of employing AI-powered systems to facilitate uncollateralized loans for MSMEs and has developed digital agricultural solutions alongside training programs. Paula Maria Leynes Felipe, IFC Regional Manager for Eastern and Southern Africa, remarked on the partnership, noting its potential to significantly transform the agricultural sector in Ethiopia, enhance smallholder farmers’ livelihoods, and contribute to national economic growth and food security.
The Ethiopian Digital Agriculture Roadmap, unveiled in February 2023, encompasses three primary focus areas spanning from 2025 to 2032: targeted solution areas, the Digital Stack, and fostering an enabling environment. The initial phase of the roadmap includes agricultural intelligence that will enable timely interventions for crops and livestock, as well as improving financial access through data sharing with lenders and insurance providers.
This new initiative is the second attempt to digitize one million Ethiopian farmers in recent months. Previously, Agritech startup Lersha collaborated with the Ethiopian Agricultural Transformation Institute (ATI) to enhance digital services for smallholders. This partnership aimed to create digital profiles for farmers and establish frameworks for efficient development and distribution of various digital agricultural services across numerous value chains and commodities.
In conclusion, the partnership between the IFC and Kifiya represents a vital step towards integrating digital financial services for Ethiopian smallholder farmers. With critical support from the Gates Foundation and alignment with the national Digital Agriculture Roadmap, this initiative aims not only to improve financial access and productivity for farmers but to foster broader economic growth and enhance food security within the country. Such collaborative efforts will be essential in digitizing and modernizing Ethiopia’s agricultural sector.
Original Source: shega.co
