African agricultural businesses are being urged to improve payment systems, expand the use of farm data and develop sustainable digital services as tighter development funding and growing climate risks increase pressure on the continent’s agrifood sector.

Speaking at the 10th AgriFin Learning Event in Nairobi, Sieka Gatabaki, programme director at Prosper Global AgriFin, said agricultural development increasingly depends on business models capable of generating revenue and continuing to serve farmers after donor funding ends.

Gatabaki said the reduction in grant funding could accelerate the development of commercially sustainable agricultural services. One of the immediate priorities is addressing payment delays across agricultural supply chains, where smaller processors can struggle to pay farmers even after their produce has been sold.

Shorter payment periods could improve farmers’ cash flow, reduce pressure on processors and limit their reliance on expensive short-term borrowing. Digital payment and cash advance solutions, including VunaPay, are among the approaches being explored to improve access to money.

Gatabaki also highlighted the need to make better use of existing agricultural infrastructure, including warehouses, cold storage facilities and processing plants, rather than continually investing in new facilities while existing assets remain underused.

Reliable buyers and functioning markets are equally important. Improved production and agricultural advice will not necessarily increase farmers’ incomes if they cannot sell their produce or receive payment promptly.

Farm data could improve access to finance

Access to affordable credit remains a significant challenge for smallholder farmers. Financial institutions often view agriculture as risky because production depends on weather conditions, rural infrastructure can be limited, and assessing individual farmers can be costly.

Jasmina Lipovic, Prosper Global AgriFin’s global finance operations and compliance director, said reliable information could help lenders better assess agricultural businesses and reduce their dependence on traditional collateral requirements.

Digital platforms can combine information about farming activities, weather conditions and potential yields to help financial institutions understand production risks and make more informed lending decisions.

Elias Nure, AgriFin’s global digital climate-smart agriculture director, cited Ethiopia’s Lersha digital agricultural platform as an example. According to Nure, the platform expanded from an initial pilot involving 300 farmers in one location to 100,000 farmers. Additional datasets helped lenders become more comfortable extending credit without traditional collateral.

Better data can also help farmers make decisions about planting dates, input use and preparation for changing weather conditions. However, access to information alone does not guarantee affordable credit, as lending terms and farmers’ ability to generate income remain critical.

Artificial intelligence must reach farmers in local languages

Artificial intelligence could expand access to agricultural advice, but its direct use among smallholder farmers remains limited.

Gatabaki said fewer than 10% of the more than 20 million farmers reached through AgriFin’s wider work in Africa were directly using AI solutions. Many of those already using the technology were early adopters with access to smartphones.

Language barriers, limited literacy, poor internet connectivity and the cost of maintaining digital services continue to restrict adoption.

Delivering advice in local languages could help farmers understand technical information, weather warnings and recommendations for managing crops. In Kenya, AgriFin works with the Kenya Meteorological Department and the Kenya Agricultural and Livestock Research Organization to develop locally relevant advice using weather information and agricultural research.

For farmers with limited internet access or digital literacy, Interactive Voice Response systems and recorded audio messages offer alternatives to smartphone applications and text-based services.

Digital climate services can also provide short-term forecasts, seasonal predictions and information about emerging weather patterns. Their usefulness, however, depends on whether the information is locally relevant and delivered early enough for farmers to act.

Technology cannot prevent droughts or irregular rainfall, but timely forecasts can help farmers prepare when they have the resources to respond.

Stronger payment systems could connect regional markets

Payment efficiency is another priority, particularly for agricultural businesses trading across borders. Better-connected payment systems could help producers and agribusinesses receive money more efficiently when selling beyond their domestic markets, although greater interoperability and access remain necessary.

The immediate challenge often begins with delayed payments from large buyers. When these payments are held up, smaller processors may be unable to pay farmers promptly, weakening the businesses that connect producers with markets.

Gatabaki said shorter payment periods, improved access to finance and more reliable buyers could benefit the wider agricultural value chain.

Lipovic said Prosper Global AgriFin had built relationships with banks, agribusinesses and technology companies to help maintain digital services for smallholder farmers beyond the closure of individual programmes.

The broader objective is to move away from projects that depend indefinitely on donor support towards businesses that can generate sufficient income to sustain their services.

For African agriculture, this means combining reliable markets, timely payments, affordable finance and practical digital tools. The long-term success of these initiatives will depend on whether they enable farmers and agricultural businesses to remain profitable and continue operating after initial funding ends.