Empowering Sub-Saharan Africa’s Smallholder Farmers: LoftyInc’s $100,000 equity Investment in Farmz2u Fuels Data-Driven Agricultural Revolution

In a significant boost to the agricultural sector, LoftyInc was appointed to lead a $500,000 equity investment into Farmz2u, a data-centric agriculture startup. With a first tranche of $100, 000 secured and $36,496 ( ₦15 million ) debt finance from SafeHaven Microfinance Bank, this investment aligns with the core objectives of Project Sparrow being implemented by LoftyInc in collaboration with USAID funded West Africa Trade and Investment Hub.

Since the inception of the Investment Readiness Program under Project Sparrow, Farmz2u has achieved early success and as an offshoot, Nigeria’s Bank of Industry seeks to support Framz2u with access to its smallholder Cluster Financing Programme.

The Role of LoftyInc

LoftyInc’s investment in Farmz2u signifies their strong commitment to fostering access to finance and further building the capacity of these startups under Project Sparrow. With a deep understanding of the potential impact of data-driven solutions in agriculture, LoftyInc recognizes the transformative power of Farmz2u’s approach. Through this strategic investment, it is not only investing in a promising startup but also in the future of smallholder farmers and sustainable food production.

Investment Benefits

Empowering Smallholder Farmers: The infusion of both equity and debt investment into Farmz2u paves the way for substantial benefits for smallholder farmers in sub-Saharan Africa. By automating agricultural processes and making data-driven decisions accessible, Farmz2u empowers farmers with crucial insights, enabling them to optimize their production and aggregation, reduce waste, and improve profitability.

Enhanced Market Access: Access to reliable market information is vital for smallholder farmers. With a ₦22 million capital line from its lending partners to farmers, Farmz2u is able to support an average of 25 farmers with loans each season. Furthermore, it aims to process 35 tons of produce monthly with SafeHaven ₦15 million Line of Credit facility. This translates into support for an average of 300 farmers harvesting an average of 100kg produce each from their farms. It further opens opportunities for smallholder farmers to expand their customer base and increase their income.

Sustainable Practices: Through responsible consumption and production practices, Farmz2u promotes sustainable agriculture. By monitoring and analyzing data, farmers can implement eco-friendly techniques, minimize chemical usage, and adopt climate-smart farming methods. These practices not only benefit the environment but also contribute to the long-term viability of smallholder farming.

Knowledge Sharing and Community Development: Farmz2u’s platform fosters collaboration and knowledge sharing among farmers. By creating a community-driven ecosystem, farmers can learn from each other, share best practices, and collectively uplift the agricultural sector. This sense of community development strengthens resilience and cultivates a supportive network for smallholder farmers.

To bring it all together, these financial investments in Farmz2u herald a new era for smallholder farmers in sub-Saharan Africa. With their eyes set on raising ₦150million in capital, Farmz2u is poised to further amplify their impact, empowering even more farmers and driving positive change in the agribusiness sector. It targets processing of 350 tons of produce monthly which is expected to have a positiveeffect on approximately 3000 farmers with access to Buyers for produce sales and 1500 farmers in expanding their farm operations.