Safaricom Ethiopia partners with JICA, Lersha, and Hibret Bank to transform Agriculture
Date: 2025-01-10
Safaricom Ethiopia has teamed up with the Japan International Cooperation Agency (JICA), Lersha, and Hibret Bank to introduce innovative solutions for farmers in South Sidama. Through the Wheat Value Chain Financing Pilot Project, this partnership is empowering local farmers by providing access to much-needed financial resources via Safaricom's M-PESA mobile money platform.
The pilot project, currently
benefiting 224 farmers in Teticha Woreda, has already demonstrated significant
potential. By leveraging digital technology, farmers receive loans directly to
their mobile wallets, ensuring a seamless, secure, and transparent process.
This initiative not only addresses the financial barriers faced by farmers but
also enhances productivity and improves livelihoods, setting the stage for
broader economic growth and financial inclusion.
While the pilot has made a
promising start, the broader vision is even more ambitious. The initiative aims
to expand its reach to 10,000 farmers, creating a scalable model that could
redefine agricultural financing in Ethiopia. By integrating digital lending
with agricultural support systems, the project ensures that farmers have the
tools and resources necessary to maximize yield, reduce risks, and enhance
sustainability.
This initiative aligns with
Ethiopia's Digital Strategy 2025, which emphasizes leveraging technology to
drive development across key sectors, including agriculture. The partnership
also highlights the critical role of public-private collaboration in addressing
systemic challenges and unlocking the potential of Ethiopia's vast agricultural
landscape.
Moreover, the initiative has
broader implications for the financial sector. By introducing innovative
financial products tailored to the needs of smallholder farmers, it is setting
the stage for a more inclusive financial ecosystem. This approach not only
empowers farmers but also strengthens the overall economic fabric of the
region.
By: Robert Annor
