The importance of growth in the agricultural sector for the future of global food safety is clear, which is why agriculture needs to embrace technological advancement and digitization. Previous advances in agriculture were largely mechanical, with a number of more advanced digital tools entering the market in recent years. However, new technologies are constantly being developed, with benefits like having the ability to improve decision making, enhancing risk management and optimizing productivity in farming.
With advanced connectivity still somewhat limited in Africa, it is key to develop more - and more effective - digital tools for the agriculture industry, and to enhance their widespread adoption. The introduction of more advanced technology is increasingly crucial to improving agricultural productivity and decreasing poverty in Africa.
Access to financing is a known limitation in the agricultural sector, particularly when it comes to small-scale farming. The possibility of improved access to loans that are enabled through technology holds hope for ensuring sustainable financial inclusion for those struggling in poverty. Credit availability provides access to important resources like irrigation systems, fertilizer, pesticides, and better seed, that are usually limited by a lack of funds. Rural farmers need the external intervention of technology to help them in accessing credit, and managing their agricultural production cycle.
Today Fintech’s are key to finding new ways to collateralize credit, reduce risk, and organize agricultural value chains – giving digital financial services the substantial potential to increase growth in previously excluded sectors like rural agriculture.