dfcu Bank, Mastercard, and Rabo Partnerships have come together to announce a transformative strategic partnership aimed at digitizing the agricultural ecosystem in Uganda. This collaborative effort seeks to empower smallholder farmers and other actors in the agricultural value chain by providing them with improved access to markets and credit facilities, ultimately enhancing their livelihoods.
The current agricultural ecosystem in Uganda poses several challenges for farmers and other stakeholders. The reliance on manual, cash-based systems hinders farmers’ ability to secure fair prices and access credit due to limited financial history. Additionally, inefficiencies and a lack of transparency in cooperatives and off-taker processes further impede progress in the sector.
To address these pressing issues, Mastercard, dfcu Bank, and Rabo Partnerships have united to introduce the innovative Farm Pass platform and tailored financial services to Uganda’s agricultural landscape. The platform will enable farmers to register through a network of agents, providing them with increased opportunities to connect with buyers and access credit products tailored to their needs, promoting productivity and income growth.
dfcu Bank, well-equipped with digital tools, insights, and processes, will extend financial services to farmers and farmer organizations that were previously difficult to reach, revolutionizing financial access in the agricultural sector through the power of digitization.
Farm Pass, built upon Mastercard’s highly regarded Community Pass platform, aims to provide access to critical services for underserved and frequently offline communities. Through a common digital identity, these communities can benefit from various services, including health, education, and commerce. With the goal of onboarding 15 million farmers by 2027, Mastercard’s Farm Pass has already registered over 2 million farmers across Africa.
Rabo Partnerships, a subsidiary of Rabobank, a global cooperative bank specializing in food and agriculture finance, is also a key partner in this initiative. With a strong presence in Africa, Rabo Partnerships collaborates with local banks to foster financial inclusion and access to financial services in agricultural sectors.
This five-year program aims to bring efficiency and transparency to Uganda’s agricultural sector through digitalization, addressing the existing exclusion of farmers and value chain actors from the benefits of technology. The partnership between dfcu Bank, Mastercard, and Rabo Partnerships presents both a commercial opportunity and a crucial development need to uplift farmers and boost the overall agricultural industry.
dfcu Bank will drive the implementation of the program in Uganda, providing lending support to value chain actors. Mastercard will offer the Farm Pass platform as part of its Community Pass suite, while Rabo Partnerships will contribute expertise and capabilities in food and agriculture banking. Together, they will collaborate with local partners to ensure seamless onboarding of farmers onto the platform, benefitting all stakeholders within the agricultural value chain.
Charles Mudiwa, CEO and Managing Director of dfcu Bank, expressed excitement about leveraging this partnership’s digital tools and expertise to drive financial inclusion among underserved segments in Uganda, benefiting both farmers and the agricultural industry.
David Gerbrands, Global Head of Agri and Banking advisory services and Inclusive Business Ventures at Rabo Partnerships, highlighted their commitment to fostering financial inclusion among smallholder farmers, extending their reach beyond large agribusinesses.
Over the next five years, the program aims to benefit 1.5 million smallholder farmers in Uganda by facilitating easier access to markets and formal financial services.
Daniel Huba, Vice President of Sub-Saharan Africa Market Development for Community Pass at Mastercard, emphasized their vision to register 30 million people to Community Pass, with 15 million in Africa, through the Farm Pass initiative. This collaboration will deepen Mastercard’s engagement with millions of farmers in Uganda, strengthening them as micro and small businesses and building their digital track record.
The partnership between dfcu Bank, Mastercard, and Rabo Partnerships is set to revolutionize the agricultural landscape in Uganda, bringing unprecedented efficiency, transparency, and financial inclusion to farmers and value chain actors. This initiative marks the beginning of a transformative journey towards sustainable livelihoods and economic growth within the agricultural sector.
Audrey Esparza