Faced with the lack of available finance for agricultural businesses from traditional banks, innovative entrepreneurs are turning to digital technology to access investment from the general public. Crowdfunding platforms have many advantages, but also entail some risks if there is to be trouble-free development of this alternative source of finance.
Africa is home to 61% of the world’s unused arable land. Many farmers own land, which they are currently unable to use due to lack of investment. Financial institutions are reluctant to invest in the agriculture sector, as they judge the risks to be too high. Less than 5% of loans granted are destined for agriculture.