Reducing middlemen: Tech firm launches digital crop trading platform

Arusha. A local technology company has created a digital system called Kikapu aimed at assisting farmers in dealing with market difficulties...

Arusha. A local technology company has created a digital system called Kikapu aimed at assisting farmers in dealing with market difficulties and minimizing their reliance on intermediaries, enabling the online selling of farm products.

The platform called Kikapu seeks to link farmers directly with purchasers, record sales information, and assist farmers in obtaining loans from financial organizations, such as banks, as stated by the developer, Sotech.

Mr. Awadhi Massomo, the director of Sotech, stated yesterday that the company, which creates technology-driven solutions for community problems, launched the system to tackle persistent challenges in the agricultural industry, including the absence of dependable market data and the exploitation by middlemen.

"Since 2023, we have created three platforms — Kikapu, Mkulima Smart (which links farmers with agricultural input providers and extension workers), and Taka Bank," Mr. Massomo mentioned during an interview.

Up to now, we have assisted over 100 farmers in linking with markets. Nevertheless, a significant challenge we have noticed is that numerous farmers do not possess digital skills.

As a result, we are offering instruction on smartphone usage to enable them to participate in online commerce.

He mentioned that numerous farmers face difficulties in obtaining loans due to the absence of proper documentation of their sales. "When we discussed with financial institutions, they informed us that most farmers fabricate or do not have accurate records of their produce sales."

"We are now urging farmers to adopt digital systems for storing this information in order to enhance their creditworthiness," he stated.

With Kikapu, farmers can record production details via smartphones — such as the quantity they have sown, projected outputs, and real harvests — which aids in monitoring progress and enhancing openness.

As per Mr. Massomo, the initiative is currently centered on horticultural products like vegetables, fruits, and flowers, due to their limited shelf life and the immediate demand for accessible markets. "These crops need quicker processing compared to cereals."

We are making sure that after the crops are picked, they quickly reach the market. For the time being, we have begun with Irish potatoes," he said.

He mentioned that horticultural crops have drawn numerous small-scale processors, offering additional opportunities for farmers. "We are assisting farmers in reaching markets directly to bypass middlemen, who have long restricted farmers' development," he stated.

The initiative has been implemented in Dar es Salaam, Arusha, Dodoma, and Pwani (Bagamoyo), with Sotech also engaged in converting agricultural waste, like eggshells, into organic fertilizer.

Mr. Massomo mentioned that the company is working with the government, such as the Tanzania Plant Health and Pesticides Authority (TPHPA), to develop a digital communication system that connects farmers with agricultural extension workers.

"The system enables farmers to transmit images of their crops when encountering problems, and extension officers can provide remote guidance on appropriate solutions or remedies," he explained.

He mentioned that Sotech intends to extend its operations across the country while maintaining efforts to create innovations that support contemporary, market-driven agriculture.

A farmer named Ms. Mariana Joseph from Forest in the Arumeru District mentioned that the Kikapu platform will significantly help farmers by allowing them to sell their products online, eliminating the need for brokers who frequently raise prices and take advantage of producers.

"This platform will revolutionize the agricultural industry by enhancing openness and minimizing red tape in the sale of crops," she stated.

Frankly, if this platform connects with all of us farmers, it will remove the challenge of locating markets and free us from middlemen who benefit while we stay impoverished. It will create chances for us to sell both locally and globally.

Provided by SyndiGate Media Inc. (Syndigate.info).