Farmers rely heavily on environmental conditions to turn a profit. An outbreak of a lethal or costly disease in a herd, or a yearlong drought as recently experienced in South Africa is detrimental and hard to predict and protect against.. Agriculture makes up a significant portion of the African economy, and yet it is a difficult sector to stimulate due to investments being exceptionally risky, albeit exceptionally necessary.
Credit is further stifled in the agronomic environment due to the seasonality of returns. Farmers struggle to demonstrate a steady stream of income to match their steady drain of expenditure .In 2014, Rita Kimani and Peris Bosire founded FarmDrive in Kenya. Their seemingly simple business model to create alternative credit scores for farmers is built on a much more complex algorithm. Their team uses data from across the globe to compute their scores.
Farmdrive connects unbanked and underserved smallholder farmers to credit, while helping financial institutions cost-effectively increase their agricultural loan portfolios.
FarmDrive and the Sustainable Development Goals
Sustainable agriculture is the most effective tool to end poverty. When farmed properly, with quality inputs, the fertile land in Kenya and throughout Africa has the ability to lift millions out of poverty.
Enabling the 50 million smallholder farmers in Africa to increase their productivity will help them feed 9 Billion people by 2050.
FarmDrive’s alternative credit scoring model ensures financial inclusion for the disenfranchised women that make up 60% of African smallholder farmers.
We aim to revitalize agri-business and provide Africa’s youth with quality, sustainable economic opportunities by introducing data-driven tech solutions for the challenges faced in agriculture.
When smallholder farmers have access to credit, they can sustainably contribute to economic development while improving their livelihoods.