In Africa, the people who grow our food hold the seeds of prosperity, if only they’re empowered to thrive. Did you know smallholder farmers produce as much as 80% of the region’s food? That’s 33 million farms feeding families and economies, according to the UN’s FAO. Helping them grow more means feeding more, earning more, and lifting millions out of poverty and malnutrition.
This gap has opened the door for financial technology (FinTech) to revolutionise farming. In the past decade, three names have stood out: Thrive Agric, FarmCrowdy, and the emerging VunaPay. These platforms promise a digital bridge between investors and farmers, creating a win-win model. But the journey has not been smooth.
This article explores the evolution of these platforms, lessons from past setbacks, and what the future holds for African Ag-FinTech.
1. Thrive Agric: The Cautionary Tale with a Comeback
Founded in 2017, Thrive Agric entered the scene with a bold mission, to empower smallholder farmers through access to funding, inputs, and technology. By using a crowdfunding model, Thrive Agric connected everyday Nigerians with farmers needing capital.
Their impact was massive:
- Over 500,000 farmers reached across 19 states in Nigeria
- Partnered with USAID and FCMB
- Introduced tech tools to track farm performance in real time
But in 2020, Thrive Agric hit a crisis. Investors were not paid back as promised, leading to loss of trust. The COVID-19 pandemic and logistic disruptions were blamed, but deeper issues around governance and transparency surfaced.
After a tough season, Thrive Agric returned with a new approach, focusing on agricultural value chains, structured partnerships, and stronger compliance. They now avoid public crowdfunding and instead work with institutional partners.
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2. FarmCrowdy: Nigeria’s First Ag-FinTech Giant
FarmCrowdy started in 2016 as Nigeria’s first digital agriculture platform. Their model allowed users to sponsor farms and receive profits after harvest. Their early success earned them international recognition and backing from major investors like Techstars and Google Launchpad.
Achievements include:
- Over 25,000 farmers engaged
- Expansion into agribusiness logistics, insurance, and retail
- FarmCrowdy expanded its operations by acquiring other startups like Best Foods, growing its customer base to over 427,000 users, trading more than 2,588 metric tonnes of agricultural commodities, and extending its reach to three different countries.
However, in 2021, FarmCrowdy pivoted away from crowdfunding after regulatory pressures and market instability. They now operate more as an agricultural technology and service company, focusing on food value chains, logistics, and B2B partnerships.
3. VunaPay: A Fresh Approach to Farmer Payments
VunaPay is a newer player but with a different edge. Launched to solve one major problem – how to get timely payments into the hands of rural farmers, VunaPay provides a mobile-based digital wallet that works even with limited internet access.
Their features include:
- Instant payouts for harvests
- Offline USSD access
- Partnerships with agro-buyers and cooperatives
This innovation is crucial because, in Africa, a lot of farmers still don’t have access to traditional banks or formal credit systems (World Bank). VunaPay offers financial inclusion that fits African realities, mobile-first, simple, and farmer-focused.
Although still growing, VunaPay’s model suggests a future where Ag-FinTech goes beyond funding to include full financial ecosystems; savings, insurance, inputs, and even pensions for farmers.
4. What Went Wrong with Early Ag-FinTechs?
Both Thrive Agric and FarmCrowdy experienced early hype and sudden setbacks. Here’s what we can learn from their journey:
a. Over-Promising, Under-Delivering
The crowdfunding model promised high returns in short cycles. But farming is risky and seasonal. Poor yields, price fluctuations, and logistic issues made it difficult to meet investor expectations.
b. Weak Regulation
In the early days, there was little to no regulation guiding these platforms. Investors had no protection, and farmers were treated like numbers in a digital dashboard.
c. Lack of Infrastructure
Even with digital platforms, agriculture still depends on storage, roads, and processing plants. Without strong infrastructure, technology can only go so far.
5. What’s Next for African Ag-FinTech?
Here’s what the future of Ag-FinTech in Africa may look like:
a. Institutional Financing Over Crowdfunding
Many platforms are now shifting from individual crowdfunding to institutional capital – development finance, government programs, and private equity. These investors understand agricultural cycles better and are more patient with returns.
b. Embedded Finance in Value Chains
The future is in platforms that provide everything farmers need in one place:
- Input financing
- Crop insurance
- Payment platforms
- Market access
Platforms like VunaPay are already doing this. Others like Apollo Agriculture in Kenya are combining AI with mobile technology to provide full farm support.
c. Localised Tech for Rural Realities
USSD, offline wallets, local languages, and agent networks are key. Mobile-first innovation is the only way to reach farmers at scale in Africa.
d. Data-Driven Farming
Platforms must now collect and analyse farm data; weather, soil, yield, pest risks, to make smarter financing decisions and reduce risk.
6. What Should New Ag-FinTech Startups Learn?
- Trust is everything – Once investor confidence is broken, it’s hard to regain.
- Agriculture is slow money – You can’t force a rice farm to grow like a tech stock.
- Partnership is key – Collaboration with banks, telcos, governments, and input suppliers creates a stable model.
- Think small, scale later – Start with one crop, one region, and build from there.
7. Opportunities for Investors and Entrepreneurs
With a growing population, rising food demand, and climate pressure, Africa needs food security more than ever. This is a goldmine for:
- Impact investors looking for returns with social value
- Tech entrepreneurs who can solve real-life problems
- Governments seeking job creation and youth engagement
Conclusion
African Ag-FinTech is not dead. It is simply evolving. From the mistakes of early pioneers like Thrive Agric, FarmCrowdy, Apollo Agriculture to the innovation of VunaPay, one thing is clear: the future belongs to platforms that combine finance, technology, trust, and empathy for the farmer. The next phase won’t just be about funding farms, it will be about building systems where farmers earn, save, grow, and thrive.
