Safaricom Ethiopia joins forces with JICA, Lersha, and Hibret Bank to Improve Access to Finance for Farmers in Sidama Region

Nov 16 2024

Safaricom Ethiopia joins forces with JICA, Lersha, and Hibret Bank to Improve Access to Finance for Farmers in Sidama Region. 

In a significant step towards advancing financial inclusion and fostering sustainable agricultural development in Ethiopia, Safaricom Ethiopia, Japan International Cooperation Agency (JICA), Lersha, and Hibret Bank have partnered to support farmers through an innovative financing initiative by digital technology in Teticha Woreda, South Sidama zone. This collaboration, centered on Lersha’s Wheat Value Chain Financing Pilot Project, is designed to increase smallholder farmers’ access to vital inputs and empower them with resources to boost productivity.

As part of the project, 224 farmers in Teticha Woreda have received loans through M-PESA. With a strong commitment from each partner, the initiative is intended to become a sustainable, scalable solution for supporting agricultural growth. If the pilot proves successful, the program will expand to benefit 10,000 farmers, further empowering local communities and driving economic development in Sidama region.

To streamline the loan disbursement and collection process, M-PESA will play a key role in the project’s future, offering a seamless digital platform for financial transactions. By leveraging M-PESA, the partners aim to enable a more accessible and transparent financing model that reaches farmers directly.

On November 16, 2024, the cross-sector partners and local farmers gathered in Teticha to observe the progress made thus far. During the visit, farmers expressed the impact of this access to finance on their productivity, underscoring the critical role it plays in enhancing their yields and improving livelihoods.

Safaricom Ethiopia’s Chief Strategy Officer, Masahiro Miyashita, emphasized the potential of digital finance in transforming the agricultural sector. “By integrating Safaricom's digital solution such as M-PESA, digital lending platform and credit scoring engine into the financial ecosystem of Ethiopia’s farmers, we aim to propose more inclusive and unique finance to develop Ethiopian agriculture within the government program: Digital Ethiopia 2025,” said Miyashita.

JICA Ethiopia’s Representative, Yuhi Miyauchi, praised the collaboration as an innovative approach to empowering Ethiopian farmers, recognizing it as a model for similar initiatives across the region. “JICA is proud to support projects that have the potential to create sustainable change. We believe that by providing farmers with the innovative tools they need, we can build stronger communities and drive long-term development,” said Miyauchi.

Lersha (also known as Green Agro Solutions PLC) highlighted the importance of strengthening the wheat value chain and shared its vision of empowering smallholders through accessible finance. CEO of Lersha, Abrhame Endrias stated, “Through this project, we’re helping farmers overcome traditional barriers to growth. Access to the right inputs at the right time can make a world of difference.”

Hibret Bank expressed its commitment to financial inclusion and the agricultural sector’s growth. “ Deputy CEO of Hibret Bank, Dr. Andualem Hailu added, “Providing financing to underserved farmers is a key priority for Hibret Bank. Together with our partners, we’re working towards a future where every farmer has the resources needed to thrive.”

Aligned with the Digital Ethiopia Strategy 2025, Safaricom Ethiopia, in partnership with other ecosystem players, will continue to innovate and support farmers as the initiative advances, accelerating digital adoption and contributing to Ethiopia’s food security and economic growth.

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