Feb 16 , 2025
By YITBAREK GETACHEW ( FORTUNE STAFF WRITER )
The government has begun registering farmers in a nationwide digital database as part of a plan to modernise agriculture, expand financial access, and improve supply chains.
The Agricultural Transformation Institute (ATI) is implementing the scheme in collaboration with banks, microfinance institutions, fintech firms, and the Ministry of Agriculture (MoA). The database will store detailed farmer profiles, including land size, crop types, weather conditions, and production capacity. The initial target is to register one million farmers.
The database will power a new digital platform designed to connect farmers directly with financial institutions, input suppliers, buyers, and advisory services. Farmers can access the platform both online and offline via basic devices or smartphones. They can also engage with the system through agricultural cooperatives and extension workers.
The platform has six core functions including connecting farmers with lenders, crop insurers, and digital payment services; and providing extension and advisory services.
Currently, most advisory services are delivered in person by a network of 50,000–60,000 government Development Agents (DAs).
The platform will deliver real-time information on crops, climate conditions, and pest outbreaks. It provides personalised guidance to farmers.
Real-time agricultural intelligence will track disease outbreaks, extreme weather, and pest infestations, allowing quick interventions.
The digital system enables direct connections between farmers and buyers, bypassing middlemen and ensuring fair pricing; and simplifies the distribution of agricultural inputs and produce, minimising delays and waste. The digital platform will also give farmers information on modern techniques.
The programme integrates financial services, expanding the electronic voucher (e-voucher) system, which allows farmers to buy fertiliser, seeds, and equipment on credit.
Data on land and production will be used to assess credit risk and improve insurance products. Banks and microfinance institutions will offer loans based on data-based assessments. The farmer scoring system is assisted by Lersha, a local company, and the Japan International Cooperation Agency (JICA).
The project is financially supported by the World Bank and the Gates Foundation. According to Girum Ketema, director of digital agriculture & rural finance at ATI, the programme could require up to 70 million dollars over five years. The Boston Consulting Group is advising on its implementation.
A pilot project in Adaa District, Oromia Regional State, near Bishoftu, is registering farmers using biometric data linked to the national ID system. The goal is to enrol one million farmers. Separately, an ongoing agricultural census is profiling coffee farmers in collaboration with the ATI.
ATI officials say it will make it easier for farmers to access loans using real data instead of collateral and get market price updates and sell products more efficiently.
ATI CEO Mandefro Nigussie says digitisation removes obstacles and provides personalised support without needing large group sessions. The initiative’s six priorities were selected for their high impact, low cost, and ease of adoption, according to him.
Currently, 6.9 million farmers receive guidance on seeds, farming techniques, and advisory services, while two million farmers access market information through the 8028 Farmer Hotline, staffed by 300 operators.
The programme is part of Ethiopia’s Digital Agriculture Roadmap (2025–2032). The ATI says the roadmap which was launched two weeks ago will ensure better data use and fix agricultural supply chains to minimise waste.
The roadmap includes the Ethiopia Digital Input Tracking System (EDITS), a programme to track fertilizer distribution from ports to farms using QR codes and near-field communication (NFC) tags.
Launched last year, the EDITS system is also expected to include more inputs in the future to curb illegal activities. According to Girum, the system enables efficient transportation of inputs from the country’s entry points to farmers
“Looting, inventory misallocation, and illicit trade will be tackled by the QR code system,” he said.
The Institute plans to expand the system across seven regional states and 20 districts within the next six to nine months.
The country needs 24 million quintals of fertiliser for the crop year, with 1.3 billion dollars allocated for the purchase, according to State Minister for Agriculture Sofia Kassa (PhD). Of this, 13.4 million quintals have already been secured. The demand is four million quintals higher than last year.
She stated that the government has provided 84 billion Br in subsidies to reduce fertiliser costs.
Sofia says the QR code system is effective in tracking fertiliser. The codes are printed directly on the sacks during manufacturing.
Farmers across the country often face fertiliser shortages, worsened by conflict and instability. The distribution system is plagued by illegal activities. Alebachew Demis, a teff farmer in the East Gojjam Zone of the Amhara Regional State, says farmers are forced to pay bribes to local officials to access fertiliser, while illegal brokers control the supply.
He argues that instability and conflict have disrupted market linkages, making it difficult for farmers to connect with buyers.
The farmer says loans are only available to groups, not individuals, and that the entire group is responsible for repayment, even if just one member defaults.
“I cannot borrow based on my production capacity,” he said.
Alebachew hopes to secure a loan based on his land and capacity, enabling him to expand his farm to include modern cattle breeding. He supports the introduction of a technology-backed marketing system, believing it could eliminate the middleman and allow farmers to sell at higher prices.
Temesgen Megersa, a wheat farmer in Bale Zone of Oromia Regional State, struggles to get a fair price for his produce due to a lack of direct linkages with buyers.
“Brokers take an unfair share of the profits,” he said. “If I could avoid this, I could make more money and expand my production.”
Temesgen wanted to buy a tractor but he could not get a loan.
Fentahun Mengesha, an agricultural development specialist in the South Wollo Zone, says access to finance to smallholders is the most important factor to boost production and productivity.
However, he says loans based on visible assets often are not large enough to make a real difference to farmers’ lives.
Lersha, an organisation involved in developing the roadmap, operates an agricultural marketplace where farmers can easily access inputs and mechanisation services. The marketplace is supported by “Lersha Agents,” who register farmers.
Abraham Endrias, managing director of Lersha, says the organisation has gathered data from 258,000 farmers within four years and offers services using a Farmer Unique ID.
Abayneh Melkie, an agricultural researcher at Debre Markos University (DMU), argues technology adoption in agriculture is still limited in the country. He believes irrigation systems and modernising traditional farming practices are key to transforming agriculture.
He also points to the low numbers of agricultural experts and DAs that can demonstrate the new technology to farmers.
He recommends creating a strong market linkage. Abayneh says surplus production in some areas loses value due to poor market connections and inconsistent quality.
While the policy is sound, he argues that the main issue lies in the ineffective implementation of these policies.
The researcher argues that farmers often struggle to sell their products at a fair price.
“Farmers feed the brokers,” he said.
PUBLISHED ON
Feb 16, 2025 [ VOL
25 , NO
1294]
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