Access to finance remains a serious challenge for smallholder farmers worldwide, and a large percentage of them are still underfinanced. They often have volatile incomes, limited financial management skills, low productivity margins and lack of guarantees or land titles. For these reasons, most local banks are unwilling to lend them money. As these challenges equally apply to farmers in 2SCALE, and as 2SCALE highly values the potential of farmers to save from their own earnings, 2SCALE decided earlier this year to formalize the collaboration with fintech company Agri-Wallet, after a successful first pilot in Kenya in 2018
Agri-Wallet is an innovative mobile application that assists farmers to save money. One major difference with similar financial services providers is that it has been tailored specifically for the agricultural sector. The application not only helps farmers to set aside funds, but ensures that the funds are invested in agricultural inputs. Also the funds remain inaccessible between the harvest period and the start of the next farming season.