AgroDomain platform is pushing the boundaries of financial inclusion around Sub-Saharan Africa, creating agribusiness opportunities and stimulating trade, especially in rural markets. The platform is typically thought of as connecting customers and merchants, but are also connecting farmers to markets – potentially increasing farmers’ incomes by 50 percent or more.
AgroDomain’s transformative potential for digital markets in Africa has a focus on agricultural markets and smallholder farmers, who make up more than 60 percent of Africa’s population and grow 80 percent of its food.
AgroDomain digital platform link the smallest of agricultural businesses to an expansive and ever-growing market of buyers, often bypassing middlemen and resulting in better prices for goods sold. When they operate at scale, the platform also greatly reduce transaction costs related to aggregating and moving goods and making payments. Reliable access to markets and income makes it easier for farmers to invest in productivity enhancements, from purchasing inputs and machinery to hiring additional laborers. Digital data from the platform activities can drive increased financing to farmers, both as buyers of services and sellers of produce.
When we use the term “e-commerce,” we tend to think of Alibaba or Amazon, both of which link consumers to an endless array of buying options. Yet a wider variety of companies with more focused and nuanced models are emerging in developing markets, addressing constraints inherent to those markets, including lack of infrastructure, low financial inclusion and poor access to technology.
Research shows that logistics are usually a major cost driver of digital market development. Robust logistics networks are a key constraint across Africa. Larger e-commerce companies can own and control a large part of their logistics infrastructure. But emerging e-commerce companies have to find alternative solutions, such as third-party contracting. Data scarcity and data management are another major cost driver. E-commerce platforms need and generate information on clients, warehousing and road conditions, among other things, as well as the data analytics needed to manage sales and logistics. Platforms that invest in data see major benefits in improved farm-to-market logistics, more tailored customer support, investment and increased sales.
With AgroDomain Platform, be rest assured that all the necessary steps to make farming and agribusiness simplified ranging from transacting on the platform to the final delivery of products/produce to customers are adequately catered for.
Converting farmers to digital marketplaces will require trust built on strong customer experience. Trust is a key driver for the success of any e-commerce platform that links buyers and sellers, particularly across the distances and risk factors of agriculture. While some platforms provide explicit guidelines to help users benefit from the platforms, others increase user trust by enhancing quality checks and providing safe payment methods. (e.g. AgroDomain Wallet). As Africa’s population doubles by 2050 and the demand for food and rural jobs escalates, the transformative power of AgroDomain becomes a strategic imperative. We foresee growth coming from digital payments with strong rural coverage and from ubiquitous internet players like WhatsApp, as long as meaningful farmer engagement takes place and relevant products are on offer. This and many more are very important to the growth of Farming and Agribusiness in Sub-Saharan Africa as we look forward to the transformation of agriculture driven by innovative business models and digital technology.