dfcu Bank, Mastercard, and Rabo
Partnerships have announced a strategic partnership aimed at digitalizing the
agricultural ecosystem in Uganda. This collaboration aims to uplift smallholder
farmers and other agricultural value chain actors by enhancing their access to
markets and credit, thereby improving their livelihoods.
Currently, farmers and other actors
in the agricultural sector face numerous challenges within the manual,
cash-based ecosystem in which they operate. Due to limited access to markets and
a lack of financial history, farmers often struggle to obtain fair pricing and
secure credit. Additionally, cooperatives and off-takers are impeded by
inefficiencies and a lack of transparency.
To address these critical issues,
Mastercard, dfcu Bank, and Rabo Partnerships are joining forces to provide the
innovative Farm Pass platform and tailored financial services to Uganda's
agricultural ecosystem. By registering on the platform through a network of
agents, farmers will gain access to increased buyer opportunities for their
crops and fit-for-purpose credit products that enhance productivity and income.
dfcu Bank, equipped with digital tools, processes, and insights, will
extend financial services to farmers and farmer organizations that were
previously difficult to reach, thanks to the power of digitization.
Farm Pass is built upon Mastercard's
acclaimed Community Pass platform, an interoperable digital platform that seeks
to provide access to critical services to underserved, remote, and frequently
offline communities. Consequently, with a common digital identity, these
communities can benefit from other services in areas including health,
education, and commerce, utilizing the same technology. With over 2 million
farmers already onboarded across Africa, Mastercard aims to register 15 million
farmers by 2027.
Rabo Partnerships is a wholly owned
subsidiary of Rabobank, the leading global cooperative bank in the food and
agriculture finance space. Rabo Partnerships enriches partner Financial
Institutions by providing knowledge, networks, digital scaling solutions,
enabling blended finance solutions and investments.
Since 1989 it has spurred financial
inclusion, rural development and access to financial services in agricultural
sectors in Africa, LATAM and Asia by collaborating with local banks. Rabo
Partnerships has developed an especially strong footprint across Africa by
partnering with financial institutions such as dfcu Bank.
Through the Agriculture Exchange
offering, Rabo Partnerships aims to unlock over USD 1 billion in loans to
smallholder farmers worldwide. Rabo Partnerships’ longstanding track record and
close relations to partner banks combined with the expertise of partners such
as Mastercard, on the digitalization of agri value chains, will enable us to
unlock financial services at scale for the Smallholder Ecosystems.
This five-year program aims to bring efficiency and transparency to the
agricultural sector through digitalization. The initiative holds the potential
to bridge the gap that currently excludes farmers and value chain actors from
the benefits of digitization, presenting both a commercial opportunity and a
vital development need.
dfcu Bank will drive the program in the Ugandan market and lend to value
chain actors while Mastercard will provide the Farm Pass platform as part of
its Community Pass suite, and Rabo Partnerships will offer their expertise and
capabilities in food and agriculture banking. Together, they will work
alongside local partners to reach out to farmers, ensuring their seamless
onboarding onto the platform for the benefit of all stakeholders within the
agricultural value chain.
"dfcu
Bank has a longstanding commitment to serving Ugandans, and this collaboration
with Mastercard and Rabo Partnerships aligns perfectly with our purpose. We are
excited to leverage the digital tools and expertise provided by this
partnership to drive financial inclusion among underserved segments in Uganda,
ultimately unlocking a commercial opportunity that benefits both farmers and
the agricultural industry,” said Charles Mudiwa, Chief Executive Officer and Managing Director of dfcu
bank.
"As part of a leading global
bank in the food and agriculture sector, Rabo Partnerships is dedicated to
fostering financial inclusion among smallholder farmers, extending our reach
beyond large agribusinesses. Through this partnership, we are excited to
contribute our expertise and commitment to driving financial inclusion in
agriculture, empowering smallholder farmers to thrive alongside their
counterparts in the industry,” said David Gerbrands, Global Head
of Agri and Banking advisory services and Inclusive Business Ventures at Rabo
Partnerships.
Over the course of the next five years, the program aims to benefit 1.5
million smallholder farmers in Uganda by facilitating easier access to markets
and formal financial services.
"Mastercard aims to register 30
million people to Community Pass, including 15 million in Africa, over the next
five years. Through Farm Pass, our agriculture digital marketplace, our collaboration
with dfcu Bank and Rabo Partnerships will deepen our engagement with millions
of farmers in Uganda, build their digital track record, and strengthen them as
micro and small businesses,” said Daniel Huba,
Vice President of Sub-Saharan Africa Market Development for Community Pass at
Mastercard.
This partnership will revolutionize
the agricultural landscape in Uganda, bringing unprecedented efficiency,
transparency, and financial inclusion to farmers and value chain actors. The
program will mark the beginning of a transformative journey towards sustainable
livelihoods and economic growth within the agricultural sector.