IFC and Kifiya Partner to Digitize Financial Services for One Million Ethiopian Smallholder Farmers

The Digitizing Smallholder Farmers Project, a joint initiative between IFC and Kifiya, is designed to address the long-standing financial access challenges faced by rural farmers.

In a major step toward transforming Ethiopia’s agricultural sector, the International Finance Corporation (IFC) and Kifiya Financial Technology, a leading Ethiopian financial technology company, have announced a strategic partnership aimed at providing digital financial services to one million smallholder farmers across the country.

The Digitizing Smallholder Farmers Project, a joint initiative between IFC and Kifiya, is designed to address the long-standing financial access challenges faced by rural farmers. By leveraging digital solutions, the initiative aims to bridge the financial inclusion gap, providing farmers with the necessary tools to access financial services, enhance productivity, and improve their livelihoods.

Bringing Digital Finance to Ethiopia’s Rural Farmers

The project will focus on digitally mapping and profiling one million farmers, enabling them to integrate into Ethiopia’s growing digital economy. This will allow smallholder farmers to use financial services such as digital payments, savings, withdrawals, and eventually, credit and loan access—services that have traditionally been out of reach for many rural communities.

To achieve this, Kifiya will provide digital infrastructure and training to financial service agents, ensuring that farmers in remote areas can seamlessly access financial products. Through this approach, farmers will no longer be solely dependent on cash transactions, reducing financial risk and improving economic efficiency.

According to Munir Mohammed Duri, CEO of Kifiya, the initiative has the potential to revolutionize rural financial inclusion in Ethiopia.

“By leveraging Kifiya’s technology and deep market expertise, this initiative will unlock financial opportunities for smallholder farmers, enabling them to thrive in today’s digital-first economy. We will be able to provide farmers with access to digital financial services, improve their productivity, and enhance their livelihoods through data-driven solutions.”

A Step Toward Digital Agriculture and Financial Inclusion

The partnership aligns with Ethiopia’s broader Digital Ethiopia 2025 strategy, which emphasizes integrating digital technologies across various sectors, including agriculture. Given that agriculture contributes to more than 35% of Ethiopia’s GDP and employs over 70% of the population, modernizing the sector through digital tools is a crucial step toward national economic growth.

As part of this initiative, financial institutions will gain real-time access to high-quality, up-to-date data on individual farmers' land holdings, production, and yield. This data-driven approach will not only enhance financial inclusion but will also strengthen the entire agricultural value chain, making it easier for farmers to access credit and loans based on their financial and production history.

Paula Maria Leynes Felipe, IFC Regional Manager for Upstream and Advisory Services for Eastern and Southern Africa, highlighted the significance of this collaboration:

“This partnership marks a significant step towards the digital transformation of Ethiopia's agricultural sector, promising to improve the livelihoods of smallholder farmers and contribute to the country's economic growth and food security.”

Supporting Ethiopia’s Agricultural Future

The initiative is backed by the Bill & Melinda Gates Foundation, reflecting a shared commitment to using digital solutions to drive economic growth and financial inclusion in Africa’s agricultural sector.

Additionally, the project complements Ethiopia’s Digital Agriculture Roadmap (2025-2032), a government-led initiative that aims to revolutionize agriculture by integrating digital platforms across the entire farming ecosystem. By digitizing land records, improving data accessibility, and enabling seamless financial transactions, the roadmap seeks to empower farmers with the tools necessary to succeed in an increasingly digital world.

What’s Next?

The partnership between IFC and Kifiya is expected to lay the groundwork for further agri-fintech innovations in Ethiopia. As the program scales, it could serve as a blueprint for other African nations looking to digitize their agricultural economies and expand financial inclusion.

Ultimately, by digitizing financial services for smallholder farmers, this initiative will not only improve individual livelihoods but will also contribute to Ethiopia’s food security, economic resilience, and long-term agricultural sustainability.

### Conclusion

The collaboration between IFC and Kifiya marks a transformational moment for Ethiopia’s smallholder farmers, enabling them to harness the power of digital financial services. As the country moves toward a more digitized and inclusive economy, initiatives like this will be instrumental in ensuring that rural farmers are not left behind but instead become active participants in Ethiopia’s digital future.

With Ethiopia’s government, international organizations, and fintech leaders working together, the Digitizing Smallholder Farmers Project represents a significant step toward a more connected, financially empowered, and technologically advanced agricultural sector.