By Eddah Waithaka
Heifer International, a global non-profit organisation working to end hunger and poverty through sustainable agriculture, released a report on Wednesday 20 March in Nairobi, Kenya, highlighting how tens of thousands of African smallholder farmers have seen their livelihoods transformed through a technology-driven mechanisation initiative.
The report, titled ‘Mechanization for Africa: Innovative Financing for Agricultural Transformation and Youth Job Creation’, examines the role and benefits of agricultural innovation, mechanization, and catalytic financing in empowering smallholder farming communities in Africa while creating new opportunities in agriculture for Africa’s youth population.
Heifer’s support and investment in innovation and youth has been instrumental in scaling up an agritech initiative that provides smallholder farmers with affordable access to tractors.
This increased mechanisation has led to increased productivity and improved livelihoods for smallholder farmers in pilot countries across Africa, demonstrating the potential for sustainable development and lasting impact on global health outcomes.
“Smallholder farmers are the backbone of Africa’s food systems, accounting for up to 80 per cent of food production in sub-Saharan Africa’ said Adesuwa Ifedi. Senior Vice President. Africa Programs, Heifer International Equipping them with the right tools and resources, including appropriate and sustainable mechanization, is essential for increased productivity
In a press statement released on 20 March, 2024, the report shows that access to affordable tractors increased smallholder farmers’ incomes by 227% within the beneficiary pool, leading not only to increased productivity, but also to a host of critical transformative pathways: increased inclusion, a vibrant ecosystem, and job creation for Africa’s energetic youth,” she notes.
The report highlights the importance of catalytic financing and partnerships in scaling up innovative agricultural solutions, as well as the positive impact of affordable mechanisation on increasing agricultural yields, labour efficiency and household incomes for smallholder farmers.
Also the report highlights that as of December 2022, the initiative has reached 21,048 smallholder farmers in need of mechanisation services in Nigeria, Kenya and Uganda. In addition, 104 farmers have acquired tractors on a pay-as-you-go (PAYG) basis. The project has created 368 direct employment opportunities for youth as booking agents, tractor operators and technicians, and 784 indirect jobs in the target communities.
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Jehiel Oliver, founder and CEO of Hello Tractor, stated that the project has also improved farmers’ livelihoods and food security for their families and communities.
“With the support of Heifer International, Hello Tractor has scaled up its service to smallholder farmers by growing the equipment available in the market to help farmers with mechanization services,” said Oliver, CEO of Hello Tractor.
“By providing capital at the grassroots level and allowing previously unbanked entrepreneurs to become tractor owners, we are not only boosting economic growth but also enhancing livelihoods within the communities we serve,” he concluded.
The Ahero community in Kisumu County and the Awe, Nasarawa, and Toto communities in Nigeria were sampled for the research, which aims to promote initiatives to increase agricultural output in Africa. The research was done in both Kenya and Nigeria.
Heifer partnered with Hello Tractor to launch a Pay As You-Go (PAYG) tractor financing service to facilitate affordable tractor rental services to smallholder farmers via a tech platform that enables ease of access for beneficiaries, ease of monetization and for tractor owners, and overall effective monitoring.
Hello Tractor is an agricultural technology company that connects tractor owners, to smallholder farmers in need of tractor services.
Hello Tractor works like the ride hailing service Uber, using Internet of Things (IoT) technology via the Hello Tractor app.
The Hello Tractor app is a marketplace that enables smallholder farmers access to equipment, while enhancing profitability for equipment owners and building technical capacity.
The app works by identifying and listing equipment owners looking to rent, recruiting booking agerits and establishing them as links between equipment owners and farmers requests for equipment leasing.
This information available on the app also provides financiers with the data and ability to calculate returns and measure results.
“The impact of this project, as shown in this report, has exceeded expectations, and we are happy to have catalysed the unlocking of commercial capital that Hello Tractor needs to scale this innovation,” said Ms Ifedi.
“We encourage stakeholders, including policymakers, development organisations, and the private sector to join us to promote responsible and inclusive agricultural mechanization in Africa.”
Heifer’s commitment to advancing sustainable food systems and food sovereignty in Africa through youth-led, gender-balanced initiatives integrating innovative finance and technology is poised for significant expansion through heightened partnerships, such as the Heifer/Hello Tractor P.A.Y G. mechanization program.
Drawing on its extensive global experience and five decades of dedicated work in Africa, Heifer remains committed to reinforcing existing collaborations and forging new ones, leveraging this collective strength to achieve scalable and sustainable impact across the continent.
The mechanisation initiative is being extended to other continental countries.
