Smallholder farmers, who dominate Africa’s agricultural landscape, often lack access to formal credit, limiting their ability to invest in modern tools, equipment, seeds, and fertilizers. Financial inclusion enables farmers to secure loans, helping them adopt improved farming practices and increase yields.

Nigeria and Mastercard have partnered to support one million farmers in Nigeria, Kenya, and Tanzania, aiming to boost agricultural productivity and financial inclusion, the Ministry of Information and National Orientation announced on September 27. The initiative, backed by the African Development Bank (AfDB), will provide farmers with digital access to financial services.

The agreement was sealed during a meeting between Nigerian Vice President Kashim Shettima and Mastercard executives at the 79th United Nations General Assembly in New York. “This partnership is a major milestone in advancing financial inclusion and agricultural development across the continent,” Shettima said.

Mastercard’s Country Manager for West Africa, Dr. Folasade Femi-Lawal, added that the initiative includes 160 seminars on contactless payment systems, scheduled to begin in February 2025, to prepare the market for the adoption of new technology.

The World Bank’s Global Findex Database 2021 reveals that over half of the world’s unbanked adults reside in just seven economies, which collectively account for 54% of the unbanked population, with Nigeria alone representing 5%. The report also highlights that digitizing common payments—such as government subsidies, wages from private employers, and payments from agricultural buyers—could enhance financial inclusion for unbanked and underbanked adults. Providing digital financial tools can empower farmers to increase productivity and income.

Hikmatu Bilali