Time: Friday, 18 January 2019, 10:30 am -11:45 am
Location: CityCube Berlin, Level 3, M2/ M3
Languages: English, German
Investments in the agricultural sector are one of the most efficient and effective ways to promote food security and reduce poverty. Small-scale and rural farmers find it currently difficult to get access to financial services: smart and digital solutions could solve this problem.
Agriculture employs 65 percent of Africa’s workforce and produces a third of its GDP, but the sector still relies on outdated methods and tools. Modernization is expensive and the younger generation is leaving the rural areas. Investing in the agriculture sector is one of the most efficient and effective ways to promote food security and reduce poverty, as well as a profitable business opportunity. It is estimated that the demand for food will increase by 70 per cent by 2050, meeting this demand will require a massive increase in investments, some sources cite up to $200 billion additional investments annually. Nevertheless, access to credit and reasonable finance remains the biggest barrier to the sustainability of smallholder farmers.
Smart solutions can assist small-scale and rural farmers who currently find it difficult to get access to financial services, especially in African rural areas. Major global corporations as well as local start-ups are now trying to advance digitalization of African agriculture by launching payment services, credit platforms and digital insurance, using mobile phones and drones. Examples can be found all over the continent: The Colombia Coffee Growers Federation in Ghana issued ATM cards to 82% of its out-growers, helping it reduce disbursement costs by 79 per cent compared to cash. In Tanzania, Multiflower, a seed and cuttings exporters, issued loans to 200 farmers via the mobile banking platform M-Pesa, which saved the farmers transport costs and an average 8 hours travel time in order to collect payments. MasterCard launched together with local partners a digital agricultural market places in East Africa to bring small-scale farmers, agents and large-scale buyer together with financial service providers. FarmDrive in Kenya uses mobile phones, alternative data, and machine learning to close the critical data gap that prevents financial institutions from lending to creditworthy smallholder farmers.
German African Business Association
Judith Helfmann Hundack
EZ-Scout, GIZ mbH – on behalf of BMZ, Head of Foreign Trade & Development Policy; German African Business Association
Sanjeev Kumar Asthana,
Chairman, Agricultural Skill Council of India
CFO, GreenTec Capital
Director for Agriculture and Agroindustry, African Development Bank