Digital Agriculture in LMICs - 22 Feb #48
M-PESA, IFC join forces to digitise agri value chains in Mozambique; Nigeria’s Zowasel releases farmer credit scoring tool; Details emerge on Sri Lanka's agritech accelerator
14/02/24
IDH and IFFCO Kisan partner for sustainable chilli farming in India
Agri-focused social enterprise IDH has partnered with IFFCO Kisan to bring digital agriculture services to chilli farmers in India. IFFCO Kisan is a joint venture of The Indian Farmers Fertiliser Cooperative (IFFCO), Non-Banking Finance Company (NBFC) Star Global Resources, and telecoms giant Bharti Airtel. It provides agritech solutions to farmers such as the IFFCO Kisan Agriculture App, and Kisan call centre. It leverages a “phygital” approach, backed by 115 farmer centres. Under the partnership, IDH and IFFCO will work for two years, initially with 1,500 farmers, in the state of Andra Pradesh to test and scale three use cases: data driven input advisory to reduce pesticide and fertiliser use; parametric insurance to build climate resilience of farmers; and traceability solutions to ensure that the produce is attractive to buyers.
India is the world’s largest producer, consumer, and exporter of chillies. There are 500,000 smallholders in the value chain, which suffers from unsustainable farming practices such as the use of hybrid and high-yield varieties, high application of fertilisers, pesticides, agrochemicals, and overuse of water. With this project, IDH seeks to enable access to affordable digital technologies that support sustainable practices.
16/02/24
Agrifood-fintech Ayekart raises $6.5M
India’s agri-focused supply chain and fintech platform Ayekart has secured USD 6.5 million in a Series A funding round led by Omnivore, Siana Capital, and Unleash Capital Partners. Under a B2B model, Ayekart digitises supply chain and finance for traditional businesses such as Farmer Producer Organisations (FPOs) and agrifood micro, small and medium enterprises (MSMEs). Established in December 2020, Ayekart operates in 18 states, and has a network of 9,000+ active merchants on its platform. Ayekart plans to use the funds to expand nationwide and cater to a larger customer base of FPOs, food manufacturers, distributors, and retailers. In 2022, the startup raised USD 5.5 million in debt.
20/02/24
Zowasel releases credit scoring tool for Nigerian farmers
Nigeria-based agritech Zowasel has released a new ethical credit scoring and loan assessment solution for smallholders engaged in agricultural value chains. Having undergone a two-year pilot with 700 farmers, the tool dubbed Alternative Credit Evaluation Scoring System (ACESS) is now available in Nigeria on the Zowasel platform for smallholders and their farmer-facing organisations, (farmer groups, cooperatives and agribusinesses). Farmer facing organisations can use the tool to digitise producers’ identities and activities in the value chain, and assess their credit worthiness, enabling financial service providers (FSPs) to make loan decisions.
Photo credit: Zowasel, Business Day
ACESS uses AI to determine credit risk by calculating the working capital needs of farmers and by predicting their yield and income. This data is then used by FSPs to suggest loan limits in line of their needs and repayment ability. The project’s pilot was supported by Japan International Cooperation Agency (JICA), Office for Nigerian Digital Innovation (ONDI), and Mitsubishi Corporation Nigeria. Founded in 2019, Zowasel enables value chain digitalisation with solutions such as a commodity trading platform, agri DFS, precision agriculture and traceability.
20/02/24
M-PESA partners with IFC in Mozambique to digitise agri value chains
The International Finance Corporation (IFC), part of the World Bank Group, has signed a cooperation agreement with Vodacom M-PESA Mozambique, part of Africa's largest mobile money service provider, to boost financial inclusion, including for smallholder farmers. IFC will support M-PESA in several areas, including revamping and strengthening its agent network and conducting comprehensive countrywide training for M-PESA's sales team and agents. IFC will also assist M-PESA to review and expand its merchant acquisition and management strategy. In addition, the IFC and M-PESA will work together to explore and pilot new ways to expand mobile money services in rural areas of Mozambique, with the aim of increasing financial inclusion for smallholders. M-PESA is keen to explore opportunities to digitise agricultural value chains, including the digitisation of payments for the sale of crops and more sophisticated use cases such as digital agricultural insurance. Mozambique's economy relies on smallholder farmers who are responsible for 93 percent of the country's total agricultural production.
21/02/24
Sri Lanka launches agritech accelerator as part of digital transformation strategy
More information is emerging on a new government-led initiative to launch an agritech accelerator in Sri Lanka. The GoviLab AgriTech Accelerator is a component of the government’s Inclusive Digital Agriculture Transformation (IDAT) strategy supported by the Bill and Melinda Gates Foundation (BMGF). The overarching vision of IDAT is to empower government to access unified agricultural data for unlocking opportunities for agri development and increasing efficiency and transparency across value chains through digital interventions. As part of IDAT, the government aims to strengthen the agritech incubation system and support innovations and pilots that advance food security. The leading accelerator implementers are Sarvodaya, a rural-focused NGO and grassroots organisation, and Hatch, Sri Lanka’s largest innovation and entrepreneurship development organisation. The GoviLab AgriTech Accelerator will select ten startups through a competitive application process. These startups will undergo a 6-month acceleration period, which will include a comprehensive scale-up process and a capacity-building grant.
Photo credit: Ada Derana
One that we missed:
30/01/24
Kisankonnect bags $3.75M for D2C agri e-commerce in India
Indian agritech Kisankonnect, a direct-to-consumer agri e-commerce linking fresh produce farmers to markets, has secured USD 3.75 million in a pre-Series A funding round spearheaded by Green Frontier Capital (GFC), a fund dedicated to climate technology. The investment round also witnessed contributions from Dhanuka Agritech Limited, a prominent player in crop protection within India, as well as VC Grid and various family offices. Kisankonnect aims to use the funds to expand its initiatives in climate-resilient agriculture benefiting its network of 5,000 farmers. Additionally, the funding will be allocated towards enhancing its technological infrastructure for fresh produce supply chain management, and the establishment of new farm stores. Kisankonnect serves approximately 100,000 consumers in Mumbai and Pune.