Village Capital has allocated USD 350,000 to Crop2Cash, an agtech initiative in Nigeria, aiming to enhance the agricultural sector's sustainability. Crop2Cash delivers a suite of services to smallholder farmers, including banking, credit access, agricultural inputs, warehousing, and insurance solutions. This investment is part of the Reducing Inequalities Investment Facility, underpinned by FMO's MASSIF fund, which focuses on promoting financial inclusion through innovative financial solutions.
Michael Ogtuidare, the founder of Crop2Cash, expressed enthusiasm about the investment, highlighting its role in addressing the challenges faced by smallholder farmers in Nigeria through technology and strategic partnerships. Crop2Cash's mission is to foster financial inclusion and support smallholder farmers in enhancing their livelihoods and business growth.
Kavon Badie of Village Capital underscored the initiative's commitment to creating opportunities for rural livelihoods in Nigeria. Crop2Cash has notably facilitated USD 2.8 million in credit for smallholders and has supported 400,000 farmers, addressing the financial exclusion prevalent among this demographic. Despite the annual growth in agricultural finance, smallholder farmers have faced challenges in accessing traditional bank financing, attributed to stringent collateral requirements and a limited rural branch network.
Source: agrireviewwestafrica.com