Agriculture remains one of Africa’s most important economic sectors, employing more than half of the continent’s workforce and contributing around 17% of GDP. Yet it remains severely underfinanced, with the World Bank estimating that only about 1% of bank lending in Africa reaches agriculture.

A major barrier is not simply a shortage of capital, but a shortage of reliable information. Banks and investors often lack accurate data on farm performance, production cycles, input use, yields and repayment behaviour, making it difficult to assess the risks associated with lending to smallholder and medium-scale farmers.

This information gap has helped sustain a collateral-heavy lending system that excludes many farmers who do not have sufficient formal assets to secure loans. At the same time, limited access to finance prevents farmers from investing in inputs, equipment and technology that could improve their productivity and generate the very performance records lenders need.

Digital agriculture platforms could help break this cycle by creating reliable, real-time records throughout the farming process. Platforms such as Complete Farmer’s CF Grower capture information ranging from input distribution and planting to field monitoring, agronomic support and harvest outcomes, creating a more transparent performance history for individual farms.

For financial institutions, this data can make agricultural risk easier to measure and price. Instead of relying predominantly on traditional collateral, lenders can increasingly assess actual farm performance and production patterns when making financing decisions. Better information could ultimately reduce uncertainty and help lower the cost of capital for farmers.

The opportunity also extends beyond conventional bank lending. Impact investors, family offices, diaspora investors and other private capital providers have significant potential to finance African agriculture, but many remain cautious because farming can be difficult to evaluate as an investment. Standardised data and traceability can make agricultural production more transparent, allowing investors to better understand what is being produced, where it is grown and how it is performing.

Complete Farmer’s work with the International Finance Corporation through the Africa Agriculture Accelerator Program reflects this broader approach, combining digital infrastructure, farmer data and market access to help agricultural businesses become more investment-ready.

The impact of unlocking agricultural finance could extend well beyond individual farms. Greater access to capital can support higher productivity, stronger supply chains, increased farmer incomes and improved food security, while helping rural economies become more resilient to climate and market shocks.

The next phase of agricultural finance in Africa may therefore depend as much on information as it does on money. By making farming activity measurable, transparent and verifiable, digital platforms can help bridge the information gap between farmers and financial institutions, creating a stronger foundation for inclusive and scalable agricultural investment across the continent.