Digital Transformation Offers Small-Scale Farmers Solutions for Risk Mitigation and Input Access

African Agriculture Ministers Advocate for Digital Transformation to Empower Smallholder Farmers

NAIROBI, Kenya – Agriculture ministers from several African nations called for the digitalization of the agricultural sector over the next five years (2025–2030) to address challenges related to risk management and input distribution for smallholder farmers. The ministers made the appeal during the High-Level Conference on Financing for Smallholder Farmers, held on March 17–18, 2025, in Nairobi, Kenya. The event was organized by the African Development Bank (AfDB) in collaboration with the Pan African Farmers’ Organization (PAFO) under the theme, “Scaling Up Financing for Smallholder Farmers.”

Gambia: Strengthening Digital Platforms for Farmer Inclusion
Demba Sabally, Gambia’s Minister of Agriculture, emphasized the need to mobilize smallholder farmers into organized groups to improve their access to financing. “In Gambia, we are mobilizing smallholder farmers into closely-knit associations to ensure they can access financing in an organized manner, thereby building trust with financial institutions,” Sabally stated. He highlighted the importance of digitalization in overcoming barriers such as the exploitation by middlemen, which often disadvantages small-scale farmers.

“To achieve this, we must strengthen the digital sector, enhance digital platforms, and improve farmer registration systems while providing them with the necessary support,” Sabally added. He also called for stronger collaboration with financial institutions to ensure the success of these initiatives. “Once access to financing is simplified, we will have addressed a significant part of the challenge in improving farm productivity,” he said.

In Gambia, smallholder farmers account for 70% of the country’s workforce and contribute 30% to the GDP. “They are the backbone of our nation’s food security and play a critical role in rural development,” Sabally noted.

Madagascar: Digitalization as a Tool for Agricultural Transformation
François Sergio Hajarison, Madagascar’s Minister of Agriculture, shared the country’s vision for agricultural transformation, which focuses on developing market-oriented family farms that generate substantial incomes. “To address the financing challenge, we are planning to digitalize the sector. This can help resolve issues related to risk and input distribution,” Hajarison explained.

He acknowledged the digitalization models presented during the conference but stressed the need for complementary measures to ensure their effectiveness. “Digitalization requires supportive policies and infrastructure to succeed,” he added.

Agriculture is the lifeblood of Madagascar’s economy, with 80% of the population dependent on the sector. Of these, 90% are smallholder family farmers, underscoring the critical need for targeted interventions.

Liberia: Bridging the Financial Literacy Gap
Alexander Nuetah, Liberia’s Minister of Agriculture, highlighted the persistent challenges smallholder farmers face in accessing financing. “Access to finance remains a major issue in Liberia. While we are making efforts, most of our farmers lack financial literacy, which discourages financial institutions from providing them with loans,” Nuetah lamented.

To address these challenges, Liberia plans to mechanize agricultural processes and establish a mechanization center where farmers can access equipment with government support. Additionally, the country aims to digitalize agricultural operations and strengthen partnerships with development stakeholders.

Nuetah emphasized the importance of private sector involvement in financing agriculture. “The government cannot fund the agricultural sector alone. The private sector must step in to help reduce the risks associated with smallholder farmers’ portfolios,” he urged.

A Unified Call for Digitalization and Collaboration
The conference underscored the urgent need for digital transformation in Africa’s agricultural sector to empower smallholder farmers, who are vital to food security and rural development. Ministers from Gambia, Madagascar, and Liberia echoed the importance of digital platforms, financial inclusion, and private sector collaboration to overcome systemic challenges.

As Africa moves toward the 2030 deadline, the success of these initiatives will depend on robust policy frameworks, investment in digital infrastructure, and sustained partnerships between governments, financial institutions, and the private sector. The digitalization of agriculture promises to unlock new opportunities for smallholder farmers, ensuring their resilience and contribution to the continent’s economic growth.

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