Tradebuza on mission to help increase access to finance for agribusiness and smallholder farmers in sub-Saharan Africa
Today more than ever, Africa is increasingly facing a food security crisis. With a growing population expected to more than double by 2050, the demand for food is expected to double during the same period.
At the heart of it all, we have the smallholder farmers who are responsible for around 80% of agricultural production in sub-Saharan Africa and have to cope with the growing effects of climate change. In addition to this, and despite their socio-economic importance, small-scale farmers have little or no access to finance (credit), which affects their ability to invest in the technologies and inputs they need to increase their yields and income. income.
With access to finance, smallholders will be able to procure improved inputs such as quality fertilizers, seedlings, machinery, labor, etc. Improved inputs can help increase farmers’ yields and incomes (by 100% on average). This will go a long way in meeting the growing demand for food.
Financial institutions that might be interested in lending in this market (agribusiness companies and small farmers) face a number of risks and challenges such as seasonality and irregular cash flow; transaction costs; and systemic risks, such as floods, droughts and plant diseases. In order to effectively analyze and monitor large-scale credit portfolio risk for this segment, these financial institutions need access to operational data on these farmers and their farmlands.
This is where TradeBuza comes in. Tradebuza recognized the problem of data and information gaps between agricultural and financial institutions and developed a data and API infrastructure for last mile operations and smallholder finance. Their platform helps capture data from smallholders and last mile farms. It also relies on satellite and remote sensing technology to help financiers manage their agricultural lending operations (pre-loan assessment and agricultural portfolio monitoring) on ââa large scale. This allows financiers to save time and money and expand their market while helping millions of smallholder farmers access more financial services. Over the past 3 years, over a million smallholder farmers have been integrated into our platform by our clients and we have had clients who have completed a pre-loan assessment for over 200,000 hectares of farmland. by leveraging our AgroAPI platform.
In November 2020, TradeBuza was selected among the eight winning startups to receive funding and participate in the NINJA Accelerator, a program organized by the Japan International Cooperation Agency in partnership with the Ventures Platform Foundation. According to Nonse Eze, CEO of Tradebuza, âfunding from JICA and the accelerator program has enabled us to further develop our platform. Specifically, we were able to improve our AgroAPI agricultural validation service (pre-loan assessment assistance for large-scale small farmers) and our agricultural monitoring service (taking advantage of satellite and remote sensing technologies). ). The mentors we had access to helped us refine our B2B sales strategy and it was very impactful for us â.
This is still the first day for Tradebuza and they intend to continue their mission to help increase access to finance for agribusiness and smallholder farmers across sub-Saharan Africa and emerging economies through our infrastructure.