One Million Ethiopian Farmers Poised for Digital Financial Services with IFC, Kifiya Partnership

The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, and Kifiya Financial Technology, signed a partnership to bring digital financial services to one million smallholder farmers. 

With an estimated budget of $900,000, the Digitizing Small Holder Farmers Project will be implemented until June 2027 with two primary objectives. Strengthening the quality and quantity of Cash in/Cash out (CICO) agents and digitally mapping and profiling one million farmers in key regions across the country.  

The initiative is supported by the Gates Foundation and aligns with the Ethiopian government's Digital Agriculture Roadmap, which looks to introduce digital tools across the value chain, according to a press release shared by the IFC.

“By leveraging Kifiya’s technology and deep market expertise, this initiative will unlock financial opportunities for smallholder farmers, enabling them to thrive in today’s digital-first economy. We will be able to provide farmers with access to digital financial services, improve their productivity, and enhance their livelihoods through data-driven solutions,” said Munir Mohammed Duri, CEO of Kifiya, during the signing ceremony.

Kifiya has pioneered the use of AI-powered systems in Ethiopia to unlock uncollateralized loans to MSMEs, venture into digital agricultural solutions, and provide training solutions in recent years. 

“This partnership marks a significant step towards the digital transformation of Ethiopia's agricultural sector, promising to improve the livelihoods of smallholder farmers and contribute to the country's economic growth and food security,” said Paula Maria Leynes Felipe, IFC Regional Manager Upstream and Advisory Services for Eastern and Southern Africa.

Ethiopia’s Digital Agriculture Roadmap was unveiled in early February and focused on three main targets stretched across seven years (2025-2032): solution areas and use cases, the Digital Stack, and an enabling environment. 

Some of the targets in the first phase of the Roadmap include agricultural intelligence, which has to do with timely interventions for crops and livestock by tracking and monitoring disease outbreaks, weather events, and pest attacks. Improved financial access by sharing and collecting data for use by lenders and insurance service providers is also envisioned in the Roadmap developed with the support of the Bill and Melinda Gates Foundation.

The Digitizing Smallholder Farmers initiative is the second project that aimed to digitize one million Ethiopian farmers in recent times. 

In 2023, Agritech startup Lersha partnered with the Ethiopian Agricultural Transformation Institute (ATI) to expand its digital solutions for smallholder farmers, intending to reach one million farmers.

The partnership also sought to create digital profiles for these farmers and establish a framework to facilitate the efficient development and distribution of various digital agricultural services targeting smallholders across diverse value chains and commodities.