In the heart of Uganda, where agriculture forms the backbone of the economy, a digital revolution is taking root. MobiPay, a pioneering Agri-FinTech company, is leading the charge to connect farmers with essential inputs and ready markets through innovative technology solutions.
This initiative is part of the ongoing #40Days40FinTechs campaign, which highlights transformative financial technology solutions across the continent.
Uganda’s agricultural landscape has seen numerous initiatives aimed at modernization over the past decade, with varying degrees of success. However, those focused on digitizing the agricultural value chain have flourished, and MobiPay stands out as a significant player. Founded in 2016 and launching its services in 2017, MobiPay aims to make agriculture more efficient, transparent, and inclusive.
Eric Nana Kwabena Agyei, the Founder of MobiPay AgroSys Limited, shares insights into the company’s mission: “We are an Agri-FinTech that provides technological services to farming communities. Part of our main work is to ensure that farmers can have access to digital services, able to receive payments for their products, able to pay for inputs digitally and also access a wider market.”
The journey to revolutionize farming in Uganda began with a critical observation. In 2015, Agyei and his co-founder conducted a study to assess the willingness of financial institutions to lend to smallholder farmers. They discovered a significant barrier: a lack of data on farming activities made it difficult for these farmers to be considered creditworthy.
“We noticed that this high risk made it hard for financial institutions to lend to the farmers. Even input providers couldn’t extend credit due to lack of data,” Agyei explains.
This realization led to the creation of MobiPay, a platform designed to empower farmers with the data they need to access financial services. Today, MobiPay operates with around 400,000 farmers across 86 districts in Uganda, with 25% actively using their services.
Key services offered
- Access to Inputs: Farmers can easily procure necessary agricultural inputs.
- Market Match & Information: The platform connects farmers to potential buyers and provides vital market information.
- Agricultural Training: MobiPay offers training programs to enhance farming practices.
- Agronomy Services: Farmers receive expert advice to improve crop yields and sustainability.
Agyei noted that most of their customers come from farmer groups, emphasizing the importance of community in their operations.
“But a farmer who doesn’t belong to any farmer group or cooperative can directly reach out to us and we shall gladly serve them,” he adds.
MobiPay’s commitment extends beyond just financial transactions; it aims to promote sustainable agricultural practices. By offering training and capacity-building programs, the company helps farmers adopt modern farming methods that not only increase productivity but also minimize environmental impact.
“What we are using technology for is to identify the problems, raising the red flags and then working with the relevant authorities to ensure that we can reduce child labour in our system,” Agyei emphasizes, highlighting MobiPay’s role in addressing social issues within the agricultural sector.
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