No less than 1 000 smallholder farmers across Mzansi will benefit from a partnership between the Agricultural Development Agency (Agda) and eSusFarm, an agri-fintech that specialises in tracking and providing advanced agricultural statistical data.
The partnership will provide farmers with access to new technology. This not only gives them a better understanding of their own business operations, but also allows Agda to identify when interventions are required on specific farms.
Agda chief executive Leona Archary says, “I believe that this pilot will assist farmers to receive early interventions when they experience challenges on their farmers. Farmers will also be taught how to use the system and will not be expected to pay for it.”
eSusFarm is on a mission to increase agricultural productivity, smallholder market and credit access, and the overall efficiency of the agri-value chain through real-time food production data. It is operational in South Africa, Uganda and Eswatini.
Speaking to Food For Mzansi, eSusFarm co-founder and chief executive Watson Matsa says a lack of reliable agronomic data and access to technology have been a huge problem for smallholder farmers, especially when applying for credit or insurance.
“Asymmetric information relates to a situation where one party knows more than another party. In the case of banks and insurance companies, they don’t know the productive capacity of smallholder farmers therefore making it more risky to give them credit and insurance.”
Partnership with MTN
A firm understanding of reliable data therefore makes it easier to make investment decisions, says Matsa. “That is why eSusFarm is important. We reduce the administration costs of gathering data and accessing a farmers production history thus increasing financial inclusion.”
The smallholder farmers participating in the Agda project have already been identified.
“We will onboarding and training them how to use the platform by dialling *134*311# which is free of charge. We have partnered with MTN South Africa to make this a reality. They see mobile money as crucial for smallholder farmers in low income and rural areas where they lack basic banking services.”
According to Matsa, eSusFarm plays at the intersection of agritech and fintech, two important drivers for the future of agriculture in Africa.
“Our goal is to commercialise smallholder farmers [and] to digitise smallholder agronomic data, provide access to markets and the overall value chain. All in one place because currently services to smallholder farmers are being offered in silos.”
