Safaricom 2023 Sustainable Business Report

47 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY OUR MATERIAL TOPICS EXPANDING OUR OFFERING A key achievement in FY22 was the disbursement of KSh 940 million in loans to 167 000 smallholder farmers. Another was our piloting of a spot-payment solution. This was developed in response to the fact that most farmers in Kenya receive payments for their produce in cash with many hours spent travelling and waiting in line. Our solution provides agribusinesses ranging from processors to aggregators with a platform where they can onboard farmers, record their produce and pay them using M-PESA. As part of our financing offering, DigiFarm also provides financing support to agribusinesses to pay farmers at the point of offtake. Key achievement in FY22 were: • 1.6 million registered farmers. • DigiFarm revenue of KSh 512.12. • The disbursement of KSh 940 million in loans to 167 000 smallholder farmers. Another was our piloting of a spot-payment solution. COLLABORATING TO MAXIMISE IMPACT We have established that smallholder farmers have low levels of digitisation and literacy. Consequently, they require significant support for onboarding and use of digital tools as basic as USSD short codes. Accordingly, to serve this segment more effectively, we are developing a hybrid approach which gives farmers a physical touchpoint. DigiFarm is now teaming up with other business lines to leverage Safaricom’s country-wide agent networks as well as driving our Lipa Mdogo Mdogo offering to drive smartphone uptake to our farmer segment. In addition, developing products for the agricultural segment is complex and requires bespoke offerings dependent on value chains, stakeholders, seasons and regions as a one-size-fits-all approach does not work. Overcoming these challenges requires collaboration among financial institutions, development partners, technology providers, agricultural experts and policymakers. We are working across these stakeholders to develop credit scoring models that support increased access to finance and digital lending for smallholder farmers not only for Kenya, but across sub-Saharan Africa. Established in Kenya in 2008, Grow Fairly is a social enterprise that processes and exports organic and Fair-Trade certified nuts and fruits sourced from smallholder farmers. Their processing plant in Kilifi serves about 10 000 smallholder cashew-nut farmers in Kilifi, Lamu and Kwale in the coastal region. Delayed payments have plagued the nut sector with farmers selling their raw cashew nuts to processors who would only pay them once they found markets for the processed nuts. With DigiFarm support, Grow Fairly was financed to pay farmers at the point of offtake, much to the latter’s relief. We were able to support 3 826 unique farmer transactions and are also helping them meet traceability requirements for export. Building digital payment platforms is often the first step to providing non-traditional financial services and is fundamental to creating a sustainable agricultural sector. By securing quick transparent payment for their produce, farmers establish a digital money profile/identity that allows them to access other financial products such as credit for inputs or savings. Through DigiFarm, Grow Fairly farmers now have access to the full suite of agricultural services like credit and insurance as well as e-extension services. SUPPORTING GROW FAIRLY FARMERS FUTURE FOCUS • Improve indoor coverage in areas with dense high-rise buildings. • Roll out reinstated COVID spectrum to increase radio capacity and give a better data experience. • Enhance capacity in 4G sites and expand 5G sites to improve data experience. • Roll out new sites in areas lacking coverage. • Continue to empower businesses with credit. • Explore the potential of general, life and motor insurance. • Establish an e-learning portal for external partners. • Expand farmer solutions that improve productivity, together with market access solutions that connect farmers to markets.