Agriculture is a cornerstone of Senegal's economy and a primary source of income for much of the rural population. To tackle issues of efficiency and transparency in agricultural subsidy management, the country is implementing digital solutions.

Senegal's government is partnering with the International Finance Corporation (IFC), the World Bank's private sector arm, to digitize agricultural subsidies, the organizations announced Tuesday.

The initiative, led by the Ministry of Agriculture, Food Sovereignty, and Livestock, aims to improve transparency and efficiency in distributing aid to key sectors, including peanuts, maize, cowpeas, and rice.

The project, approved July 29 with a budget of $500,000, will leverage IFC's technical assistance to design and implement a digitization plan, working alongside the ministry and its partners. The goal is to better structure the distribution of agricultural inputs, ensuring more efficient and transparent subsidy management.

Digitizing payments is seen as crucial to ensuring rapid and traceable subsidy distribution, providing direct support to farmers and boosting productivity in strategic sectors, officials said. This aligns with Senegal's food sovereignty objectives.

In Africa, small-scale farmers produce more than 70% of the food supply and support millions of rural households, according to the African Development Bank. However, these farmers face significant challenges, including limited access to affordable inputs, insufficient financing, scarce advisory services, and market information gaps.

The digitization initiative is expected to transform Senegal's agricultural sector, facilitating the swift distribution of subsidies in line with crop calendars and improving the livelihoods of smallholder farmers.

By Samira Njoya,

Editing by Sèna D. B. de Sodji