Revolutionizing Agricultural Finance: A Q&A with Moses Ochieng of Investa Farm

Africa's agricultural sector contribution to the continent's economy is approximately 35% of the GDP and provides a livelihood to around 700 million people, or 50% of the continent's population. Despite its importance, this sector faces numerous challenges, and financial access tops the list. Traditional agricultural financing falls short on many fronts, in a continent where many are unbanked or underbanked, limited access to credit, high transaction costs, and dominance of middlemen who reduce farmers' profits are some of the many obstacles farmers in Africa have to endure.

To confront these challenges Investa Farm leverages blockchain technology & A. I to address some of these problems. By offering innovative financial solutions that leverage non-traditional agricultural data points, they greatly benefit underbanked farmers and those on the fringes of the formal economy. This approach facilitates easier access to financing, enabling farmers to advance their pursuits and achieve sustainable growth. Founded by Corrine Muriuki, Stephen Kimoi, and Moses Ochieng, Investa Farm is at the forefront of transforming agricultural financing in Africa.

In this Q&A interview, Moses Ochieng provides deeper insights into the mission, challenges, and successes of Investa Farm.

Ndabari: Tell us about the inspiration behind InvestaFarm and how it all began.

Moses: Investa Farm was born out of a serendipitous meeting at a hackathon where three passionate individuals came together to solve a pressing problem. Corrine Muriuki, who had extensive experience in the banking sector and a background in farming, recognized the financial challenges that farmers face. Stephen Kimoi, a skilled blockchain developer and advocate, brought his technical expertise to the table. Moses Ochieng, a former startup founder, contributed his entrepreneurial spirit and insights.

Together, we realized the potential of combining our diverse skills to create a solution that could revolutionize agricultural financing. This collaboration led to the founding of Investa Farm, a platform designed to empower farmers through innovative financial solutions leveraging blockchain and AI technology. Our shared vision is to bridge the gap between traditional farming and modern financial services, enabling farmers to access the resources they need for sustainable growth. Going on ahead to win three global bounties from the hackathon.

Ndabari: How has blockchain technology specifically enabled financial inclusion for farmers in Africa?

Moses: Blockchain technology has provided a transparent and secure way to track transactions, making it easier for farmers to access financial services. By using blockchain, Investa Farm ensures that every transaction is recorded and immutable, reducing the risk of fraud and increasing trust among financial institutions. This has allowed farmers who were previously unbanked or underbanked to access loans, insurance, and other financial products more easily.

Ndabari: What challenges are you facing when introducing blockchain and cryptocurrencies to farmers, and how are you managing them?

Moses: Introducing blockchain and cryptocurrencies to farmers comes with several challenges, including digital literacy and trust issues. To manage this, we onboard farmers through agricultural stores where they already have established relationships. Instead of focusing on the technical complexity, our marketing emphasizes the tangible impact on their lives, such as increased financial security and better access to markets.

Ndabari: Elaborate on how InvestaFarm's platform helps farmers save costs by cutting out the middlemen.

Moses: Investa Farm's platform connects farmers directly with buyers, eliminating the need for intermediaries who often take a significant cut of the profits. By using smart contracts on the blockchain, transactions are automated and executed based on predefined conditions, ensuring that farmers receive timely payments and fair prices for their products. This reduces costs and increases profitability for farmers. We also connect farmers directly to input providers providing them with the best inputs that would otherwise be provided by middlemen.

Ndabari:? Sustainability is a big part of InvestaFarm's mission. How are you encouraging farmers to adopt eco-friendly practices and innovative agribusiness ventures?

Moses: We encourage sustainable practices by providing incentives such as lower interest rates on loans for eco-friendly projects. Our platform also offers educational resources and training on sustainable farming techniques and innovative agribusiness ventures. Additionally, we partner with organizations that specialize in sustainable agriculture to provide farmers with access to the latest technologies and practices. We also connect farmers to certified input providers once the loans are provided.

Ndabari: How does the inclusive AI you use for credit scoring work, and what impact has it had on farmers' access to loans?

Moses: Our AI-based credit scoring model takes into account a variety of factors, including farm asset values, rather than just financial transactions. This is particularly important for unbanked farmers who may not have a traditional financial history. By considering non-traditional data points, we can provide a more accurate credit score, increasing farmers' access to loans and financial services. This has led to a significant increase in loan approvals and financial inclusion for smallholder farmers.

Ndabari: What success stories or testimonials from farmers using InvestaFarm are you most proud of?

Moses:One of our proudest success stories is from a farmer in Kenya who was able to double his crop yield by accessing a loan through Investa Farm. With the loan, he invested in better seeds and irrigation systems, leading to a significant increase in productivity and income. Testimonials like these demonstrate the real-world impact of our platform on farmers' lives. Also, Investa Farm was selected by StartupBootcamp Amsterdam as a venture capital partner, working with different partners and incorporating our company in the United Kingdom and Kenya. Lastly winning the best agritech Company of 2024 at the Kenya Blockchain Conference.

Ndabari:? As a co-founder, what have been your most significant milestones and learnings on this journey so far?

Moses: Some of the most significant milestones include securing our first round of funding, expanding our operations to multiple African countries, and being recognized by industry leaders at various forums. The key learnings have been the importance of building trust with our users and the need to continuously adapt and innovate to meet their needs.

Ndabari: How do you see the future of blockchain and AI in transforming agriculture and other sectors in Africa?

Moses: Blockchain and AI have the potential to revolutionize not just agriculture but various other sectors in Africa by providing transparency, efficiency, and access to financial services. In agriculture, these technologies can help improve supply chain management, increase yield, and ensure fair pricing. The future will see more widespread adoption as the benefits become more apparent and as infrastructure improves.

Ndabari: Investa Farm is attending the European Blockchain Convention. Please share what this opportunity means for you and what you hope to achieve or learn from the convention.

Moses:Being shortlisted for the Pitch Prize competition at the European Blockchain Convention in Barcelona is a tremendous opportunity for Investa Farm. It allows us to showcase our solution before investors and potential partners, which can significantly help in scaling our operations. We hope to gain valuable insights, forge new partnerships, and attract investment to further our mission of empowering farmers in Africa.

Ndabari:? What advice would you give to other startups looking to leverage blockchain and AI to solve real-world problems in developing regions?

Moses: My advice would be to focus on making the solution simple and user-friendly for the target audience. Understanding the problem deeply and being driven by the needs of the users is crucial. It's also important to build trust within the community and to demonstrate the tangible benefits of the technology.

Conclusion

Blockchain and AI are two of the three pillars of the new financial architecture, with the third being big data. Their impact on agriculture will be enormous, helping to minimize unfair pricing, improve food safety, reveal product origins, and combat agricultural insurance fraud. The overarching objective of Investa Farm is to make financial services accessible to millions of Farmers in Africa while championing sustainable agricultural practices with posterity in mind. The era of intelligent agriculture is here, and Investa Farm's founders, Muriuki, Kimoi, and Ochieng, are playing a significant role in this transformation

As BAK we wish Investa Farm success at the European Blockchain convention start-up pitch battle to be held in Barcelona, Spain on 25- 26 September 2024.

Get in contact with Investa Farm

@investa_farm - Twitter and Instagram,

@Investa farm - LinkedIn & Facebook

Email :

[email protected]

Credit: Ndabari Njenga