Agriculture and Last-mile Distribution

Agriculture and Last-mile Distribution

Low availability of improved agricultural inputs, lack of access to mechanization services, and inaccessibility of markets affect the productivity of smallholder farmers in Ethiopia.

More than 64 percent of farmers produce their crops on less than one hectare in total accounting for an estimated 95 percent of total agricultural production. Lack of agricultural credit and rural financial services are systemic constraints to transformation. Most smallholders do not have access to sufficient credit to invest in productivity-enhancing technologies such as improved seeds, agrochemicals, fertilizer, farm machinery, and irrigation technologies.

Agriculture receives less than 10 percent of bank lending, with the bulk reserved for agricultural export commodities, and limited alternative forms of affordable finance, credit, and insurance to service smallholder farmers and more vulnerable groups such as pastoralists or women farmers.  

60 % of farmers cultivate less than 0.90 ha in very fragmented landscape

67% of SHF live below the national poverty line

74% of Ethiopia’s farmers live on small farms

75% of the country’s workforce

40% of the country’s GDP comes from Agriculture

80% of exports are agriculture produce

90% of total cropland providing over 90% of agricultural output is cultivated by SHF

Kifiya’s Micro Insurance marketplace platform enables farmers and pastoralists to access insurance.

The uncollateralized digital lending platform links smallholder farmers to input credit.

Smallholder farmers can pay for agricultural inputs using Kifiya’s digital payment service.

Kifiya’s digital marketplace offers transportation of goods from the farm to consumers.

Leveraging its digital AG platform, Kifiya buys from smallholder farmers, stores in warehouse storage, and retailers to large buyers.