Tech Startups Are Helping Nigerian Farmers And Funders Connect

Tech Startups Are Helping Nigerian Farmers And Funders Connect
Food & Beverage

New platforms are helping people participate in agriculture without needing to own or farm land

Cristina DiGiacomo
  • 26 october 2017

The agriculture sector in Nigeria is getting a boost thanks to agri-tech startups ThriveAgric and FarmCrowdy. Historically, Nigeria has been predominantly an oil exporting nation, but it was recognized among leaders that the country shouldn’t depend on one export as the only source of revenue. Agriculture is a potential supplement to the GDP; however, the current farming system isn’t set up to meet the need.

Nigeria’s farmers are typically sole farmer landowners who grow enough to sustain their family needs and sell at a local market for income. They aren’t equipped monetarily, resource and labor-wise to expand. At the same time, there is a growing interest among the middle class in Nigeria to broaden investments and be involved in supporting the agricultural system. They want to be part of the food movement, but may not have the knowledge, means or the time to run their own farms.

Onyeka Akumah, CEO of FarmCrowdy, told Quartz“There is a lot of interest in agriculture among Nigerians, but there’s little guidance on how to go about it. We want to educate them about the process in a way they can relate.”

The ThriveAgric and FarmCrowdy model allows people to invest in existing farmland and fund individual farmers for a return on profit come harvest time. An individual investment is about $200 to $750 and helps to support purchasing of more land, hiring hands, equipment and education of new agriculture practices for the farmers, plus all the technical support they need.

Funders manage their investments entirely online and get regular updates on how the crops are doing and where they are in the harvest cycle. At the time of harvest, they get an electronic transfer of their initial capital plus a percentage of the profit.

The response has been beyond expectation. FarmCrowdy has attracted over 1,000 farm sponsors with a 76% rate of repeat investment. Uka Eke, co-founder of ThriveAgric, told Quartz that the company has seen a “400% increase” in farm subscriptions since its launch earlier this year.

ThriveAgric | FarmCrowdy


Lead Image: ThriveAgric

The agriculture sector in Nigeria is getting a boost thanks to agri-tech startups ThriveAgric and FarmCrowdy. Historically, Nigeria has been predominantly an oil exporting nation, but it was recognized among leaders that the country shouldn’t depend on one export as the only source of revenue. Agriculture is a potential supplement to the GDP; however, the current farming system isn’t set up to meet the need.

+Africa
+agriculture
+crowdfunding
+Food
+investing
+Luxury
+Nigeria
+Quartz
+retail
+technology

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