CGAP and FarmDrive Announce Partnership
CGAP and FarmDrive Announce Partnership for Satellite-Based Credit Assessments for Smallholder Farmers
NAIROBI, KENYA, September 15, 2016 – Today, the Consultative Group to Assist the Poor (CGAP) and FarmDrive announced their partnership to explore the use of satellite-based imagery to help predict and solve the financial needs of smallholder farmers.
In Africa, there are an estimated 50.6 million smallholder farmers. Although the agriculture sector employs 65% of Africans and accounts for 32% of Africa’s GDP, only a small percentage (5.8%) of commercial lending goes to this important sector. There is also a gap in understanding the financial needs of smallholder farmers who are often marginalized and impoverished.
FarmDrive – an organization founded by Rita Kimani and Peris Bosire, who grew up in smallholder households in Kenya and witnessed some of the key challenges their families and communities faced in agriculture – harnesses the power of mobile phones and agricultural datasets to develop income-predictive algorithms, credit profiles, and tailored financial products for smallholder farmers.
Through CGAP’s financial contribution, FarmDrive will collaborate with The Impact Lab and Planet to use satellite images to better understand planting cycles, crop yields, and trends in production to help forecast future revenues, timing of income and potential gaps in payments. The data generated through this effort will help FarmDrive and other microfinance institutions to create relevant financial products tailored to the needs of smallholder farmers.
Rita Kimani, FarmDrive Co-founder commented, “We are delighted by CGAP’s support. We created FarmDrive to revitalize agricultural production and improve the livelihoods of smallholder farmers. The opportunity to incorporate world-class satellite technology and data analytics is a monumental step towards achieving these goals.”
Maria Fernandez Vidal, CGAP Financial Sector Specialist said, “One of the key challenges smallholder farmers face is the lack of access to tailored credit products that match the timing of their crop cycles; we are very excited about the potential for this technology to help address that need in a scalable way.”
FarmDrive is a Kenyan-based business developing technologies to address the global $425 billion agricultural funding gap. FarmDrive leverages alternative datasets to create comprehensive credit profiles and tailored loan products which financial institutions use to lend to smallholder farmers at the base of the pyramid. This solution is bringing financial services to the untapped market of African smallholder farmers. To learn more about FarmDrive, visit http://farmdrive.co.ke/ or contact Mary Joseph at [email protected]
The Consultative Group to Assist the Poor (CGAP) is a global partnership of 34 leading organizations that seek to advance financial inclusion. CGAP develops innovative solutions through practical research and active engagement with financial service providers, policy makers and funders to enable approaches at scale. Housed at the World Bank, CGAP combines a pragmatic approach to responsible market development with an evidence-based advocacy platform to increase access to the financial services the poor need to improve their lives. Our mission is to improve the lives of poor people by spurring innovations and advancing knowledge and solutions that promote responsible, sustainable, inclusive financial markets. Follow us on Twitter @CGAP and find additional media resources here.
About The Impact Lab
The Impact Lab brings science to the business of doing good. They develop algorithms to help them improve the performance and the impact of their work.
Planet designs, builds and operates the world's most capable constellation of Earth-imaging satellites. Planet's mission is to image the entire Earth, every day and make global change visible, accessible, and actionable. With the complementary Rapid Eye constellation, Planet has an image archive from 2009 and a network over one hundred partners around the world. Learn more at www.planet.com or contact [email protected].