The dfcu Bank of Uganda, Mastercard, and Rabo have now established strategic cooperation to digitize the agricultural sector in Uganda.
Smallholder farmers and other actors in the agricultural value chain will benefit from this partnership while their access to markets and loans will be improved.
Within the current manual, cash-based ecology, farmers and other players in the agriculture industry confront several obstacles. Farmers frequently have difficulty securing fair pricing and finance due to a lack of financial history and restricted access to markets. Inefficiencies and a lack of transparency also pose challenges for cooperatives and off-takers.
Mastercard, dfcu Bank, and Rabo Partnerships are teaming together to provide the revolutionary Farm Pass platform and specialised financial services to Uganda’s agricultural environment in order to combat these pressing problems. Farmers may raise their revenue and productivity by enrolling on the platform via a network of agents and gaining access to more markets for their commodities and tailored financing solutions.
Leveraging its digital tools, processes, and data, dfcu Bank will be able to offer banking services to farmers and farmer organizations that were hard to reach in the past.
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1.5 million smallholder farmers will benefit
Through improved access to markets and formal financial services, the programme hopes to help 1.5 million smallholder farmers in Uganda over the next five years. As a commercial opportunity and a critical development necessity, the effort has the ability to close the gap that prevents farmers and value chain players from accessing the advantages of digitalization at present.
Programme management and lending along the value chain in Uganda will be handled by dfcu Bank, while Mastercard’s Farm Pass platform (part of its Community Pass suite) and Rabo Partnerships’ food and agricultural banking expertise will be provided by Mastercard and Rabo, respectively. For the benefit of all parties involved in the agricultural value chain, they will collaborate with local partners to reach out to farmers and facilitate their easy onboarding into the platform.
Charles Mudiwa, CEO and Managing Director of dfcu Bank said “This partnership with Mastercard and Rabo Partnerships is in line with dfcu Bank’s long-term goal of better serving the people of Uganda. “We are excited to capitalize on the digital tools and expertise provided by this partnership to drive financial inclusion among Uganda’s underserved segments, ultimately unlocking a commercial opportunity that benefits both farmers and the agricultural industry,”.
“Rabo Partnerships, as part of a leading global bank in the food and agriculture sector, is committed to fostering financial inclusion among smallholder farmers, extending our reach beyond large agribusinesses.” “Through this collaboration, we are excited to contribute our expertise and commitment to driving financial inclusion in agriculture, empowering smallholder farmers to thrive alongside their counterparts in the industry,” said David Gerbrands, Rabo Partnerships’ Global Head of Agri and Banking Advisory Services and Inclusive Business Ventures.
“Over the next five years, MasterCard hopes to register 30 million people for Community Pass, including 15 million in Africa.” “Our collaboration with dfcu Bank and Rabo Partnerships will deepen our engagement with millions of farmers in Uganda, build their digital track record, and strengthen them as micro and small businesses through Farm Pass, our agriculture digital marketplace,” said Daniel Huba, Vice President of Sub-Saharan Africa Market Development for Community Pass at Mastercard.
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Transformational path for sustainable
This collaboration will transform Uganda’s agricultural scene, providing unparalleled efficiency, transparency, and financial inclusion to farmers and value chain operators. The programme will usher in a transformational path towards sustainable lives and economic prosperity in the agriculture sector.
Based on Mastercard’s widely lauded Community Pass technology, Farm Pass is an interoperable digital infrastructure designed to provide essential services to rural, hard-to-reach areas where they are often unavailable. Therefore, with a shared digital identity, these communities may take benefit of similar services in fields like healthcare, education, and commerce. Mastercard plans to sign up 15 million farmers throughout Africa by 2027, adding to the more than 2 million farmers who are currently on board.
Rabobank, the world’s preeminent cooperative bank specialising in food and agricultural financing, owns the entirety of Rabo Partnerships. By sharing their expertise, resources, and digital scaling solutions with their partners, Rabo Partnerships improves the quality of their blended finance solutions and investments.