By Rarzack Olaegbe
You know it. The Fintech boom is here. Fintech is one of the most remarkable stories we have around. It is not only in Nigeria. It is everywhere. In India. Ghana. Canada. America. Mexico. Tokyo. South Africa.
It has brought a new era for entrepreneurs and consumers. Through Fintech, you have conquered the hurdles of traditional banking. Fintech has empowered you, emboldened your neighbourhood, and endowed your community. To the extent that farmers are now “reaping” the fruits of Fintech.
On the one hand
In India, electronic transactions have increased during the first half of the fiscal year 2022/23. In June 2023 alone, e-transactions were $98 million (Rupees 4.4 trillion). Comparatively, during the same in 2022, the number was $63 million (Rupees 5.4 trillion).
Nagariknetwork.com wrote that the number of transactions has increased significantly. Guru Prasad Poudel, executive director of the Payment System Department of Nepal Rastra Bank, said that transactions through the retail payment system have also increased. He said this system includes instruments such as digital wallets, mobile banking, QR code, internet banking, credit/debit cards, etc. Such transactions are constantly increasing.
On the other hand
Tens of millions of unbanked and underbanked people have gained access to mobile accounts and banking. It has given regions that historically lacked access to financial services new opportunities for growth and innovation. A wave of fresh startups has risen. Out of this revolution is technology. Technology offers products and services that can innovate entire industries including agriculture.
Due to this, aside from payments, technology now plods farmland. Technology has revolutionised agriculture. It makes farming more efficient. Profitable. Sustainable. From plodding to GPS, technology has motivated farmers to increase their yields. It has reduced costs. It manages their risks of weather, pests, and diseases.
Technology has enabled precision agriculture. Farmers can monitor and optimise crop growth and quality using sensors, drones, and robots. Farmers can do vertical farming. This is a novel occurrence: Crops grow indoors by using a light-emitting diode (LED). And hydroponics – growing plants without soil. And gene editing. The editing modifies plant traits for better performance.
Farmers and markets now connect easily. Farmers can access information. Receive loans. Access subsidies through digital platforms and mobile applications. They have the potential to address food security, climate change, and biodiversity loss.
To foster this growth, Visa Everywhere has touched ThriveAgric. It will digitise the entire value chain for small farmers. It has disbursed financing worth more than $100 million to over 514,000 farmers in the past five years.
Agriculture is a key force in Nigeria. It engages more than 70% of the population. ThriveAgric helps farmers to map their lands. On boards the farmers. Records valuable harvest data. Manages their inventory. It took an incredibly important contributor to Nigeria’s overall economy and discovered ways that it could increase outputs and leverage technology to work towards ensuring financial inclusion. And food security.
“The sheer breadth, depth, and diversity across this region are really exciting,” said Alex McCrea, Vice President, and Head of CEMEA Fintech Partnerships at Visa. “There’s just a tremendous amount of opportunity to do good and to do more. ThriveAgric technology is the next generation. We know that the agricultural sector in Nigeria is a massive contributor to the overall economy. Agriculture is a crucial means of employment, food security, and poverty reduction in the country.”
Of the 4,000 applicants, ThriveAgric won the grand prize in 2022. Its entry stood out not only for the technology involved, McCrea said, but for aligning with Visa’s core ambition to expand the digital economy to be accessible for everyone. Visa and ThriveAgric are working together on strategy and sharpening go-to-market plans.
In the short term
Are you venturing into agriculture?
No. I am prospecting for oil.
Why oil?
Tinubu has removed the fuel subsidy, you know.
