Through a performance-based contract, the UN Capital Development Fund (UNCDF) is funding Tanzania-based Digital Mobile Africa (DMA), to offer farmers in the Kigoma region of Tanzania online access to agricultural input retailers, crop buyers and financial services providers. DMA’s online portal is integrated with multiple mobile network operators (MNOs) and offers financial services under the license of the Tanzanian Postal Bank. These financial services include payments, credit, savings, remittances and insurance.
UNCDF and DMA began working together in 2019 with a project to develop agricultural value chains in Kigoma. In addition to funding, UNCDF provides DMA with technical assistance and connections to stakeholders in the financial services and farming sectors. DMA has enrolled 6,700 farmers since 2019 and seeks to reach a total of 8,000 by June 2021.
The partnership with DMA is an element of the UN’s “Leaving No One Behind in the Digital Era” and its “Kigoma Joint Programme,” whose partners include three UN organizations, the Food and Agriculture Organization, the World Food Programme and the International Trade Centre.
Established in 2018, DMA is an “agri-fintech” that serves smallholder farmers as well as micro-, small and medium-sized food processors and other agribusinesses in Tanzania and Rwanda. Its services include data management; marketplace connections; and digital financial services. As of 2020, DMA has approximately 872,000 active users.
Established in 1966 by the UN General Assembly, UNCDF is affiliated with the UN Development Programme. UNCDF endeavours to create opportunities for poor people in developing countries and their small businesses by increasing access to microfinance and other forms of investment capital. The organization operates in 40 countries in Africa and Asia with a particular commitment to countries emerging from crises. During 2018, UNCDF’s expenditures totalled USD 65 million. As part of its work, the organization supported financial services providers that serve a total of 32 million customers.
By Madigan Ruch, Research Associate
Sources and Additional Resources
UNCDF press release
https://www.uncdf.org/article/5934/uncdf-partners-with-a-digital-platform-to-link-farmers-to-financial-and-agricultural-products-and-services-in-tanzania
Digital Mobile Africa homepage
https://digitalmobile.africa/
Previous MicroCapital post on UNCDF
https://www.microcapital.org/microcapital-brief-bceao-revising-microfinance-regulation-to-promote-responsible-digital-financial-inclusion-in-west-africa-supported-by-fapsfd-uncdf/
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