Cultivating prosperity: Heifer’s Support of Innovation Boosting Africa’s Smallholder Farmers’ Output, Incomes

Bennett Oghifo

Kabiru Bello, like most of his fellow smallholder farmers in Kaduna State, Nigeria, had resigned himself to the annual crop losses, estimated in some cases to be as high as 65 per cent, caused by pests since he began farming decades ago. This was however before he came into contact with innovative solutions by ThriveAgric, an agritech startup enabled by Heifer Africa, the global nonprofit leveraging the power of innovation and youth to support Africa’s smallholder farmers in improving their living income.

Millions of smallholder farmers in Nigeria, and across Africa, struggle with crop losses caused by pests. According to the National Agricultural Extension and Research Liaison Services, smallholder farmers in Nigeria suffered as much as 65 per cent crop losses in some cases due to pests and associated diseases in 2021. Worse hit crops included maize, rice, sorghum, millet, soybean, groundnut, cowpea, root crops, fruits, and vegetables. Affected farmers spanned across over 30 of the country’s 36 states.

Experts and stakeholders have long canvassed for strengthened integrated pest management systems in the region to help bring these numbers down. This is vital, considering that the majority of these farmers depend largely on chemical control through the use of synthetic pesticides for crop pest management. Even this inadequate method is unsustainable as it harms the environment and poses risks of poisoning for the farmers and consumers.

Applying these integrated pest management systems to smallholder farmers has, however, remained problematic. Until technology came to the rescue. “I have been farming since I was young, but there has been constant pest attacks on my farms every farming season and this has resulted in huge losses at harvest,” said Mr. Bello. “Since I joined ThriveAgric’s system, they have helped me in stopping this challenge and now I can boast of three times my yield on all my farms.”

ThriveAgric, an agritech startup working to ensure food security, links farmers like Mr. Bello to capital, data-driven best practices, and access to local and global markets for their commodities. The company’s Agricultural Operating System (AOS) onboards smallholder farmers in clusters for management and capacity-building, maps farmlands for viability, distributes improved seeds and crop protection products, provides advisory during monitoring, and delivers harvest management – including access to storage and markets.

“Our AOS was build with the ‘Tradr’ platform that enhances the linking of smallholder farmers to premium markets for their commodities,” said Uka Eje, Co-Founder and CEO of ThriveAgric. “This innovation ensures that farmers increase productivity in a sustainable way, as it guarantees premium offtake which further leads to quality produce in the right quantities. The technology provides a robust transparent system where offtakers are assured of quality produce. Farmers have thus been able to triple their income using our platform to boost their productivity, reducing poverty and creating value for themselves.”

Technology for Agriculture Transformation

On 15 November 2022, the world’s population hit 8 billion people. This figure is projected to reach 9.7 billion in 2050, resulting in a demand for food that will be unprecedented. For global food supply to accommodate this rising population, the disruptive nature of technology and its transformative effect on agricultural systems, especially in Africa, needs to be accelerated.

Technology has taken root in the very soil that sustains us, transforming age-old agricultural methods into a modern, efficient, and sustainable powerhouse. From AI-armed drones analysing crops, to data management that improves irrigation, fertilisation, and pest management, to innovative harvest and storage systems, agtech is emerging as the skilled partner helping farmers win the battle against nature and improve livelihoods.

Smallholder farmers play a crucial role in the agriculture space, as they are the backbone of the global food system. This is even more so in Africa, where an estimated 33 million smallholder farms contribute up to 70 per cent of the continent’s food supply. Nearly 60 per cent of the world’s uncultivated arable land is in Africa, yet the continent remains a net food importer grappling with feeding its huge population.

The opportunities are ripe for the continent to not only feed its growing population, but emerge a global net exporter of food – abundance of arable land, suitable weather, and a huge young population, among others. The African Development Bank predicts that, with the removal of barriers to agriculture development aided by new investments, the continent’s agricultural output could increase from $280 billion per year to $1 trillion by 2030. From this point, Africa will be on the right track to emerging a global agricultural powerhouse while undergoing economic transformation.

Among the various levers that need to be pulled for the continent to be set on this path is the sustainable development and application of agritech innovation to empower smallholder farmers. Critical stakeholders are channelling investment to this area. Heifer International, a global nonprofit working to end world hunger, has emerged as a leading investor in innovation, youth and agritech that moves African smallholder farmers closer to increased outputs and improved incomes.

Heifer Africa: Scaling up the impact of agritech on the continent
Advancements in technology are changing key areas of Africa’s development – with innovations driving remarkable transformation in payment methods and manufacturing. An increasing number of agritech innovations have accelerated the reimagination of Africa’s agricultural future. Recognising the impact that the growth of this sector can have on Africa’s agriculture and economic transformation, Heifer International has made significant investments in this area.

“The power of Africa’s youth is very significant, and we see that most of the digital revolution we are witnessing in the continent are youth-led,” said Adesuwa Ifedi, Senior Vice President, Africa Programs, at Heifer International. “The innovations that these young people have channelled to helping us solve major challenges in agriculture deserve support, and that is why we have committed to supporting them. The agritech sector, if properly nurtured and leveraged, will not only power smallholder farmers to enhance productivity but also create opportunities for young people who might otherwise ignore the farming sector.”

Heifer’s support of the agritech sector is led by its flagship youth-focused initiative, the AYuTe Africa Challenge, a competition that combines financial prizes with mentorship to translate the energy and ideas of young innovators into meaningful impact for smallholder farmers across the continent. Several winners of the competition, including ThriveAgric, have gone on to receive innovative capital that has enabled them to sustainably scale their innovation to empower smallholder farmers across Africa to improve productivity and enhanced incomes.

By partnering with stakeholders, Heifer International has contributed to the accelerated growth of the agritech sector in Africa. These partnerships, especially through the AYuTe Africa Challenge, among others, have catalysed increased youth involvement in agritech and the agribusiness ecosystem. “The future of Africa’s agriculture will be led by young people,” said Ms. Ifedi. “We have seen that this model of elevating agritech is very effective at attracting more young people into agriculture and the supporting ecosystem, thereby strategically positioning them to effectively drive the transformation that we seek.”

The beginnings of a revolution

The results support this assertion. Agritech companies within the AYuTe Africa Challenge ecosystem have gone on to achieve remarkable feats, scaling innovation that is setting millions of smallholder farmers in the continent on the path to improved livelihoods. For instance, ThriveAgric has powered over 500,000 farmers across Africa to improved incomes via financing, education and access to markets; 40 percent of them women and about a third of them youth farmers. The company targets reaching 10 million farmers by 2027.

Another AYuTe Africa Challenge winner, Brastorne Enterprises, is working to connect the unconnected across rural Africa with internet access. It has already connected 1.8 million Africans who lack meaningful internet access via its multi-channel solutions compatible with feature phones, creating information and market opportunities for smallholder farmers. It targets to reach 760 million people.
DigiCow, another AYuTe winner, has connected over 60,000 small-scale dairy farmers to critical farm services by harnessing mobile phone technology.

Heifer’s commitment to the mechanization of Africa’s farmlands is being driven by another AYuTe winner, Hello Tractor, which is applying technology to enable smallholder farmers across Africa access affordable machinery, especially tractors, that they need to boost their productivity and enhance their livelihoods. Hello Tractor is active in 13 African countries and is working rapidly to expand its reach across the continent.

Sustainable impact

Hello Tractor provides an apt illustration of the impact of Heifer’s investments in the agritech sector on not only smallholder farmers but the agriculture value chain. As at 2022, the project’s unique Pay As You Go Model of equipment leasing had provided service to over 20,000 smallholder farmers, created hundreds of jobs for young people who work as booking agents and tractor operators, and generated over 200 per cent boost in farmers’ incomes across the initial pilot countries of Kenya, Nigeria, and Uganda.

Mr. Bello’s success in Nigeria has not gone unnoticed by his fellow farmers, and this has resulted in a wider adoption of the ThriveAgric platform. “We are mindful of the responsibility that comes with the success of ThriveAgric and farmers on our network, and we are prepared to conquer new grounds,” said Mr. Eje. “We are developing strategies around financial inclusion, agroforestry for carbon credit, and renewable energy. Partnerships with organizations like Heifer Africa have been significant in ensuring that we foster economic inclusion for smallholder farmers.

“We are able to enhance social and environmental impact, as well as economic development, thus helping us grow our farmer network to reach more regions for more sustainable expansion. With the aid we provide them, they get all the support they require to be profitable farmers in order to meet the rising demand for food and boost their incomes. This is how we are building an Africa that feeds itself and the world too.”

Empowered farmers, improved food systems

Agritech innovators within Heifer’s support ecosystem in Africa have empowered smallholder farmers in various ways – from increased productivity and efficiency to building resilience and adaptability.
Improving farming practices, like ThriveAgric has done with its network of smallholder farmers have helped farming communities adopt better practices in precision agriculture and integrated pest management. This has resulted in higher yields, reduced food loss, and lower production costs. By connecting these farmers to affordable seeds, fertilisers and tools, a significant improvement in access to essential resources has been recorded, reducing dependence on middlemen and leading to higher profits.

Smallholder farmers powered by innovation from the AYuTe ecosystem have also seen sustainable increases in sales due to tech-enabled direct-to-consumer platforms. These platforms have not only eliminated middlemen but have also reduced food loss linked to public infrastructural challenges that caused poor access to markets.

Innovation has also reduced reliance on outdated and unsustainable farming practices, enabling smallholder farmers to get the most of their efforts and acreage. A key benefit of this, also, is the potential to increase women participation in farming. Heifer’s mechanization initiative is reducing Africa’s poor yield gap – estimated at about 50 per cent. Hello Tractor is improving income for farmers and closing the gender gap in agriculture by reducing labour-intensive and time-consuming farming practices.

“The list is endless, and so are the possibilities,” said Ms. Ifedi. “Across Africa, we see how young people are channelling their powers and creativity to design and build innovation that drives smallholder farmers to improved livelihoods. These young people have leveraged agritech to improve financial inclusion and access to credit for farmers, enhance the adoption of climate-smart agriculture in the continent, and build resilience in ways not seen before.

The impact of their work justifies our strong belief that the future of smallholding farming lies in the power of technology and innovation. At Heifer, we see these young innovators and agritech solutions as critical elements for reimagining the future of Africa’s agriculture. We encourage other stakeholders to join us on this journey of supporting and investing in agritech innovation that empowers smallholder farmers and cultivates prosperity for all.”