The IFC and Kifiya Financial Technology are collaborating to deliver digital financial services to one million Ethiopian smallholder farmers through a $900,000 initiative called the Digitizing Small Holder Farmers Project, set to run until 2027. This partnership aligns with Ethiopia’s Digital Agriculture Roadmap with goals including improved financial access and agricultural intelligence.
The International Finance Corporation (IFC) has forged a partnership with Kifiya Financial Technology to extend digital financial services to one million smallholder farmers in Ethiopia. This initiative, known as the Digitizing Small Holder Farmers Project, is backed by a budget of $900,000 and is expected to be operational until June 2027. The project’s primary objectives are to enhance the effectiveness of Cash in/Cash out (CICO) agents and to digitally map and profile smallholder farmers in key regions across Ethiopia.
Supported by the Gates Foundation, the project aligns with the Ethiopian government’s Digital Agriculture Roadmap, which aims to integrate digital tools throughout the agricultural value chain. Munir Mohammed Duri, CEO of Kifiya, remarked on the initiative’s significance, stating that it would “unlock financial opportunities for smallholder farmers, enabling them to thrive in today’s digital-first economy.”
Kifiya is established in the pioneering use of AI-powered systems to facilitate uncollateralized loans to micro, small, and medium enterprises (MSMEs), while also advancing digital agricultural solutions and training programs. Paula Maria Leynes Felipe, IFC Regional Manager for Eastern and Southern Africa, highlighted that this partnership constitutes a notable step toward the digital enhancement of Ethiopia’s agricultural sector, ultimately benefiting smallholder farmers and bolstering economic growth and food security.
The Digital Agriculture Roadmap, launched in February, encompasses three primary targets over the span of seven years (2025 to 2032), addressing critical areas such as agricultural intelligence and improved financial access. This roadmap aims to provide timely responses to agricultural challenges while promoting data sharing among lenders and insurers.
The recent initiative follows another similar project by Agritech startup Lersha, which collaborated with the Ethiopian Agricultural Transformation Institute (ATI) in 2023. This earlier partnership also aimed to reach one million farmers by developing digital profiles and improving the availability of digital agricultural services tailored to various value chains and commodities.
In summary, the collaboration between the IFC and Kifiya represents a significant advancement in providing digital financial services to Ethiopian farmers. With a focus on enhancing agricultural productivity and accessing financial services, this initiative is expected to contribute positively to the livelihoods of smallholder farmers. Coinciding with Ethiopia’s Digital Agriculture Roadmap, such projects highlight the ongoing efforts to modernize agriculture in the region and improve food security.
Original Source: shega.co
