When it comes to food security, especially in developing nations, smallholder farmers are the unsung heroes, responsible for over 60% of the food we eat annually despite working with limited resources. But imagine a future where these farmers don’t just farm to survive. How can we reimagine them as entrepreneurs scaling their businesses, producing not just to sell but to transform their communities and the economy?
The answer may lie in providing tailored financial incentives and support like microloans, a powerful financial tool that bridges the gap between potential and opportunity.
What Are Microloans?
Microloans are small, low-interest loans designed to help individuals or groups who lack access to traditional banking systems. For smallholder farmers, these loans serve as a vital tool for acquiring quality seeds, fertilsers, equipment, and even training to improve their farming techniques.
Unlike conventional loans, microloans are often more accessible, requiring little to no collateral and catering specifically to underserved rural areas. This makes them particularly suited to farmers who operate on small plots of land but dream of expanding their operations.
Institutions Offering Microloans to Smallholder Farmers Across Africa

With more money to farm and access to the right knowledge and information, smallholder farmers can play a huge role in ensuring the availability, accessibility and affordability of food. Below are institutions and organisations that offer microloans to small-holder farmers.
Babban Gona
Babban Gona, a Nigerian social enterprise, has been transforming the agricultural landscape by providing smallholder farmers with a comprehensive support system that includes training, financial credit, and access to improved agricultural inputs. Operating in key Nigerian states like Abuja, Adamawa, Kaduna, and Kano, Babban Gona has impacted over 110,000 farmers since its inception. Through a unique agricultural franchise model, it not only delivers high-yield seeds and fertilisers but also offers tailored training to enhance productivity. Additionally, the organisation ensures that farmers have access to competitive markets, cutting out middlemen and enabling them to sell their produce at fair prices, ultimately boosting their income. Babban Gona also addresses the inherent risks in agriculture by offering loans with flexible repayment terms, allowing farmers to repay after harvest when they are financially stable. The program’s success and reach, coupled with plans to scale its impact to over a million farmers by 2025, demonstrate its transformative potential in improving food security and reducing unemployment in Nigeria.
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Pula
Pula, a Nairobi-based microinsurance company co-founded by Thomas Njeru, is helping smallholder farmers across Africa, Asia, and Latin America navigate the financial risks posed by climate change. With a focus on providing insurance payouts to mitigate the impacts of natural disasters such as droughts and floods, Pula has a goal of reaching over 100 million farmers especially after its $20 million series B funding last year. By utilising both on-the-ground and satellite data alongside artificial intelligence models, Pula is able to determine insurance premiums cost-effectively, ensuring that farmers are protected and can recover quickly from adverse events. This innovative approach not only shields farmers from climate-related losses but also increases their access to credit, boosting agricultural yields and enabling them to reinvest in their farms. Through these efforts, Pula is helping farmers build resilience against the unpredictable nature of climate change, making them more economically stable and productive.
One Acre Fund
Similarly, One Acre Fund, a social enterprise headquartered in Kakamega, Kenya, is empowering smallholder farmers in East Africa by providing asset-based financing and agricultural training services. Operating in multiple countries, including Kenya, Rwanda, Burundi, Tanzania, Uganda, Malawi, Nigeria, Zambia, and Ethiopia, One Acre Fund supplies farmers with loans that cover the cost of seeds, fertiliser, and access to training on agricultural techniques. The organisation also facilitates market access, enabling farmers to sell their produce at competitive prices. In 2020, farmers participating in One Acre Fund’s programs reported a 33% increase in profits compared to those who did not participate.
Emata
Emata, an agro-financing startup based in Uganda, is revolutionising access to credit for smallholder farmers by offering collateral-free loans. Unlike traditional financial institutions that often require tangible assets as collateral, Emata leverages data collected from cooperatives and farmer-based organisations to assess a farmer’s performance and potential. This data-driven approach allows Emata to evaluate farmers’ creditworthiness and offer personalised credit limits, empowering them to access the capital needed to grow their operations. By removing the barriers typically associated with borrowing, Emata is making it easier for smallholder farmers to access financing, fostering growth and resilience in Uganda’s agricultural sector.
FarmDrive
In a similar vein, FarmDrive, a Kenyan-based social startup, is connecting smallholder farmers to much-needed credit by bridging the gap between farmers and financial institutions. Through its mobile platform, FarmDrive collects and analyses data related to farmers’ productivity, expenses, and revenues. This data is then made accessible to financial institutions, enabling them to assess risk more accurately and develop tailored loan products for the agricultural sector. By empowering farmers with financial access and supporting financial institutions with improved data, FarmDrive is helping to increase the agricultural loan portfolios of banks and microfinance institutions, thereby enhancing the growth and profitability of smallholder farmers.
IFAD
The International Fund for Agricultural Development (IFAD) is a key institution that plays a crucial role in supporting smallholder farmers, particularly in developing countries. Established in 1977, IFAD is a specialised agency of the United Nations that focuses on eradicating rural poverty and hunger by promoting sustainable agricultural development. Its mission is to empower smallholder farmers and rural communities by providing them with the necessary resources, expertise, and support to increase productivity, improve food security, and enhance resilience against economic and environmental challenges. Through its partnerships, IFAD has helped millions of farmers across Africa, Asia, Latin America, and the Caribbean to overcome the challenges of rural poverty and increase their productivity.
Microloans: Why Should We Care About Scaling Smallholder Farmers?
What if the key to global food security, economic growth, and sustainable development lies in empowering smallholder farmers to scale their operations? Microloans, often seen as small but mighty, provide the bridge that connects struggling farmers to a world of opportunity. With access to capital, training, and technology, smallholder farmers can improve productivity, diversify their crops, and adapt to climate challenges. The real question is: Why wouldn’t we invest in scaling them? When smallholder farmers thrive, entire economies can transform, food systems become more resilient, and the future becomes more sustainable. If we’re serious about a better tomorrow, it starts with empowering the farmers who feed us today.