The IFC and Kifiya have partnered to provide digital financial services to one million Ethiopian farmers. With a budget of $900,000, the initiative aims to enhance financial access and digital profiling of farmers, aligning with the Ethiopian government’s Digital Agriculture Roadmap. The project, supported by the Gates Foundation, seeks to improve the productivity and livelihoods of smallholders through technology-driven solutions.
The International Finance Corporation (IFC) has formed a partnership with Kifiya Financial Technology to deliver digital financial services to one million smallholder farmers in Ethiopia. This initiative, backed by a budget of $900,000 and anticipated to last until June 2027, aims to enhance the efficacy of Cash in/Cash out (CICO) agents and digitally map and profile a million farmers in strategic regions of the country.
Supported by the Gates Foundation, the project aligns with the Ethiopian government’s Digital Agriculture Roadmap, which seeks to integrate digital tools throughout the agricultural value chain. Munir Mohammed Duri, CEO of Kifiya, stated that this initiative will enhance financial access for farmers, thereby improving their productivity and overall livelihoods through data-driven solutions.
Kifiya has made significant advancements in leveraging AI systems for uncollateralized loans and digital agricultural solutions in Ethiopia. Paula Maria Leynes Felipe, IFC Regional Manager for Eastern and Southern Africa, emphasized that this partnership is a pivotal move toward the digital transformation of Ethiopia’s agricultural sector, which is expected to boost smallholder farmers’ livelihoods and contribute to national economic growth and food security.
The Digital Agriculture Roadmap, introduced in February, outlines three core targets over a seven-year span (2025-2032) focusing on agricultural intelligence, improved financial access, and the creation of a conducive digital environment. These objectives include monitoring health threats to crops and livestock as well as enhancing data accessibility for financial service providers.
The Digitizing Smallholder Farmers initiative represents the second project aimed at digitizing one million Ethiopian farmers. Earlier in 2023, Agritech startup Lersha partnered with the Ethiopian Agricultural Transformation Institute (ATI) to expand access to digital solutions for an equal number of farmers, thereby creating standardized digital profiles and enhancing the development of diverse agricultural services.
The partnership between IFC and Kifiya marks a significant advancement in the digitalization of Ethiopia’s agricultural sector, targeting one million smallholder farmers. By integrating digital financial services and improving access to crucial data, the initiative seeks to enhance farmers’ productivity and livelihoods while aligning with national goals for agricultural innovation and economic growth. This development reflects a broader commitment to improving food security and empowering vulnerable farming communities through technology.
Original Source: shega.co
