The Harsh Reality: How African Agriculture Fails Small-Scale Farmers Despite Investments and Grants

Introduction

In the vast lands of Africa, Tanzania where the sun shines fiercely on fertile soil, a tale of determination and innovation unfolds. It is the story of visionary individuals who refuse to yield to the challenges that plague the agricultural sector. We will not whine. We will not complain. Complaining is not an option. Instead, we will conquer. We will succeed. These were the resounding words that echoed within the minds of UjuziNet's co-founders, Adelard Urassa and myself. We understood that many venture capitalists still harbor skepticism when it comes to investing in the agricultural sector compared to fintech and other sectors.

Many have encountered us. Each time we demonstrate the MazaoHub Farm ERP System, our achievements, the number of farmers we have reached without external investments, the industries utilizing the MazaoHub system, the off-takers, agro-dealers, cooperatives, and all stakeholders in agriculture. Their main question to us is: How did you come up with this idea? How long did it take to develop this system? How many investors do you have? Which countries is this system from?

There are others who, upon seeing us, underestimate us and view us as just another startup seeking aid or grants. But later, when they witness how we carry out our work and our direction, our strategies, all of which are predominantly from our own initiative, they ask themselves why? How can they do it?

Many assume we started today, but the truth is that we have faced numerous failures. Our journey began over three years ago. We started by developing an e-commerce platform to connect farmers directly with markets, bypassing middlemen. We failed. We acquired over 20,000 users, thinking they were farmers, only to discover they were middlemen. Our big mistake was thinking that the transformation in agriculture begins at the market level, but the challenges of agriculture are vast. They encompass production, aggregation, finance, insurance, distribution, processing, markets, and much more. We learned a great deal and realized that agriculture requires its own farm ERP system.

The Birth of UjuziNet

The UjuziNet Group emerged as a technology company with a singular mission - to develop intelligent applications and ERP systems that automate, simplify, and manage core business operations and processes.

Our diverse portfolio of solutions, including EMASUITE, ADBOX AI, MAZAOHUB, and UJUZINET, took center stage, with our flagship product, MazaoHub, leading the way. But before reaching this level of having such a portfolio of systems, I called my friend, who is a co-founder. I told him that if we truly want to revolutionize agriculture, we must ensure that we can sustain ourselves. We must ensure that we can pay all our bills without relying on anyone or any grants. When investors come, they should see that we can stand on our own.

When grants come, they should see that we can manage ourselves. This will enable us to implement our idea, which has a tremendous impact on our fellow small-scale farmers. It will be easier to convince other investors once we turn this idea into a viable business. Agriculture is a risky endeavor. Not every investor is willing to take risks. That's why many startups in the agricultural sector rely heavily on grants. We must be different. We must inject money into our venture. We developed many other systems that are sold every day and pay our bills. And we started acquiring big clients  in food sector who now enable us to serve small-scale farmers with subsidies.

MazaoHub, a farm management system designed specifically for the agriculture sector, aimed to transform the way farmers operates.

Challenges in African Agriculture

As individuals with a deep understanding of the challenges faced by small-scale farmers, we recognized the need for a holistic solution. Agriculture, we realized, was not just a profession; it was a science and a business driven by data. Yet, the lack of organized and documented agricultural data and production information (crop production monitoring) posed a significant obstacle.

Farmers particularly smallholder farmers struggled to attract investment due to unreliable farming information and unrecorded financial data. The absence of traceability and farm monitoring further aggravated the situation.

Let me explain here so that we understand each other. My grandfather was a small-scale farmer. He had no education except for knowing how to use a mixture of manure as fertilizer on our farms. I never saw an extension officer. Our lives were poor. We were impoverished. My parents were also small-scale farmers. We grew potatoes, sugarcane, vegetables, corn, beans, and sunflowers. Our lives were poor. There were organizations that came to us and took pictures promising to help us. They took the pictures and disappeared. We never saw them again. The strange thing is that this situation still persists for small-scale farmers today. Their lives are still poor.

In one village, there is only one extension officer responsible for overseeing more than 1000 smallholder farmers. This shortage of extension officers in villages has left smallholder farmers to rely solely on their limited knowledge and experience. This trial-and-error approach is common for small-scale farmers. And it is dangerous, especially when it comes to climate challenges, particularly soil issues. A farmer goes to an agro dealer, buys fertilizer just like buying sugar from regular stores. That agro dealer doesn't have any historical information about the farmer's fertilizer usage. All they care about is selling more fertilizer to the farmer. The farmer doesn't have a guideline for a fertilizer program that matches the health of their soil. Sometimes they buy excessive fertilizer and go to spread it in the fields without knowing that they needed very little Nitrogen or Phosphorous or Zinc or Potassium. Because they don't know these calculations or the science of soil and fertilizer. They just go and spread it in the fields. To make matters worse, the proximity to extension officers is minimal. Will we really survive climate change like this?

Farmers are sold fertilizer without having historical data and information on soil health, hindering the development of sustainable practices in the agricultural sector. Furthermore, inadequate financial reporting hinders access to investments or markets. In many occasions we met branch managers from various banks in Tanzania during our B2B meetings. They all complain, farmers do not keep proper records. But how can they do it manually and we all know how farming involve complex operations. The same farmer is facing soil challenges, rising inputs prices , pests, climate change, thieves, unpredictable weather, post-harvest loss, traceability challenges, markets and more. How can a farmer do all that and keep track records with all those challenges manually? How?

Despite previous investments in the African agricultural sector, small-scale farmers continue to face impoverished livelihoods, environmental degradation, and a dependence on food imports. Don't we see these challenges? Where do all the investments and grants in agriculture go?

The issue of markets and traceability is a significant challenge. But even more significant is the issue of post-harvest loss. There are numerous problems here.

Introducing MazaoHub: Transforming African Agriculture

To address these challenges head-on, MazaoHub was developed. This comprehensive farm ERP system revolutionized agricultural operations and provided support to farmers, agro dealers, manufacturers/food processors, and other stakeholders. Let me provide you with an in-depth understanding of how MazaoHub is transforming the agricultural landscape across various sectors.

Agro Dealers: Streamlining Operations

MazaoHub empowers agro dealers with effective customer engagement through a Farmer Relationship Management (CRM) tool. Simplified financial processes are made possible through a Loan Management Tool, complemented by a compliant accounting system. The mobile and web-based Point of Sale (POS) system further enhances their operational efficiency, creating a seamless experience for agro dealers and their customers(farmers).

Emerging Farmers: Empowering Success

With a deep commitment to emerging farmers, MazaoHub offers an AI Agronomy Tool for effective Good Agricultural Practices (GAP) management and crop production monitoring. The MazaoHub Soil Scanner provides soil testing and analysis services, enabling farmers to make informed decisions based on accurate data. Comprehensive financial services, marketing opportunities through our E-commerce platform, and an accounting system tailored to farming businesses' specific needs further support the growth and prosperity of emerging farmers.

Manufacturers/Food Processors and Large-Scale Off-Takers: Ensuring Efficiency

For manufacturers/food processors and large-scale off-takers, MazaoHub provides invaluable solutions. Our crop sourcing services, contract farming, and outgrower management tool streamline the supply chain, enhancing efficiency and productivity. Our crop movement and tracing systems, coupled with crop marketing solutions, ensure transparency and accountability throughout the process. Moreover, our accounting package tailored specifically for farming businesses simplifies financial reporting and analysis.

Smallholder Farmers: Driving Cooperative Growth

Recognizing the vital role of smallholder farmers, MazaoHub embraces a cooperative-based approach. We offer a platform that provides AI farmer management, soil testing and analysis, financial services, marketing opportunities, and comprehensive farm cost analysis. By empowering smallholder farmers with the tools and knowledge they need, we pave the way for their sustainable growth and prosperity.

Partnerships and Collaborations: Uniting for Success

MazaoHub understands the power of collaboration. We have established partnerships with agronomists and currently operate three Agriclinic Centers, ensuring that farmers have access to expert guidance and support. Furthermore, we have joined forces with various entities, including banks, agricultural boards, ministries of agriculture, insurance companies, hotels and restaurants, angel investors, agricultural researchers, seed and input companies, and development agencies. Together, we are building a strong network that fosters innovation, investment, and growth in the agricultural sector.

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