The report "DIGITIZING VALUE CHAIN PAYMENTS for Smallholder Farmers in Ethiopia" provides comprehensive insights into the financial behaviors, challenges, and opportunities for smallholder farmers (SHFs) and traders in Ethiopia. The focus is on three value chains: malt barley, chicken feed, vegetables. The study highlights the specific needs and priorities of SHFs and value chain actors, as well as the barriers to the adoption of digital payments. It also offers product ideas and suggestions for product development to better serve SHFs and traders. The report emphasizes the importance of digital payments and financial services for SHFs, as well as the potential for collaboration between financial service providers and buyers or traders to improve access to credit, inputs, and market opportunities for SHFs in the agricultural sector. Overall, the report provides valuable insights for financial service providers and technology companies looking to expand digital financial services in the agricultural sector in Ethiopia.
The report also underscores the readiness of Financial Service Providers (FSPs) to develop digital financial services, with most FSPs having their own digital payment channels and a strong motivation to expand their DFS offerings. It recommends the creation of a data-driven environment to provide quality and segmented data for different farming zones and value chains, as well as the need for FSPs to have direct and intensive support in developing financial services, particularly in product development and data-driven decision-making. The insights and recommendations provided in the report aim to empower SHFs and traders in Ethiopia to access financial services and improve their financial resilience.
