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Big data: A dream too big?

Africa / 27-09-17 / by

The application of big data to agribusiness in Africa could be transformational in unlocking access to financing for an industry that has traditionally been classed by banks as too risky. But how practical a solution is it really? Shannon Manders reports.


“Everybody throws the phrase ‘big data’ around like it’s the name of someone they know.” Omri van Zyl, executive director of South African agricultural industry association Agri SA, believes there’s “no such thing” as big data in agriculture in Africa.

The South African, whose credentials include being president of the World Farmers’ Association audit board and having authored studies on information and communications technology in African agriculture for the World Bank, thinks it’s important to keep the conversation on the topic “realistic”.

The problem, he says, and many other experts agree, is that Africa’s agribusiness sector lacks any kind of meaningful data – a necessary starting point to transition to big data.

According to the Food and Agricultural Organisation of the United Nations, as much as 80% of the farmland in Sub-Saharan Africa is managed by smallholder farmers, working on up to 10 hectares of land. With the majority of these farmers part of the informal economy (they may not be registered, tend to be excluded from aspects of labour legislation, lack social protection and have limited records) there’s simply no technology at play to collect data in the first place – or to feed it back to any kind of platform or system.

Certainly, there are pockets of data collection, storage, analysis, and even some forecasting, on the continent – the majority of which is taking place in South Africa’s private sector. But there are very few initiatives that can be classified as big data, the exact definition of which is constantly in flux, but which is widely understood to be the accumulation of large data sets that allow for predictive analyses and reveal patterns, trends and associations.

Nevertheless, progress is under way. Over the past few years, a handful of multinational organisations, mostly traders such as Olam and Cargill, have been running big data-type projects with African farmers and co-operatives using various tech platforms.

The majority of these projects aim to improve yield, traceability and financial access: the Olam Farmer Information System (OFIS), for one, was launched three years ago as a tool for collecting farm data from Olam’s network of smallholder farmers based in remote corners of the world.

The platform sends real-time data and images on crop progress to the company’s global team of traders and sales personnel, enabling them to better understand an upcoming crop profile.

“Via an app which works offline, we can GPS map and survey individual farms and harness the data to give farmers and our customers insight into the production of crops like cashew and cocoa,” Simon Brayn-Smith, director of OFIS, explains to GTR. “We’ve recently added new functionality to the platform including a comprehensive farm to fork traceability tool that allows customers to understand the exact provenance of the raw materials going into their products, as well as innovative new features like an integrated mobile money solution. This allows farmers to be paid for their crops straight into a digital wallet and build up credit histories over time.”

Olam recently announced that 100,000 smallholder farmers are now registered to OFIS across Africa, Asia and South America.

Farming technology has also caught the attention of entrepreneurs, who have been churning out solutions for small farms at costs that African farmers can afford. Many of these initiatives harness the explosion in the mobile phone market (Quartz last year reported that lower prices for handsets has doubled the use of smartphones among Africans over the past two years, meaning an additional 226 million people now have access to the internet).

In Kenya, M-Farm is a mobile phone app that allows farmers to send text messages requesting information about crop prices. The platform also connects farmers with food suppliers. FarmDrive, another Kenya startup, collects and aggregates datasets from multiple sources, in Kenya and around the world, to build credit scores for smallholder farmers in Africa, thereby facilitating their ability to borrow from financial institutions.

Other solutions have focused on precision farming, the modern-day farming technique that uses information technology, such as aerial images from satellites or drones, weather forecasts and soil sensors, to survey a particular farm on a regular basis. The practice creates an optimum environment for crops and soil to receive what they need – and when. It offers higher productivity, but also saves time, reduces wastage and creates greater environmental sustainability.

Farms making use of these automated systems are scattered across the continent. Zenvus, a Nigerian startup, brands itself as an “intelligent solution for farms” and uses proprietary electronic sensors to collect soil data such as moisture, nutrients, pH levels and so on, which it sends to a cloud server. Algorithms in the server then analyse the data and advise farmers on best practices. The system also deploys special spectral cameras to build crop vegetative health indices, which helps detect drought stress, pest and diseases. Zenvus then uses the aggregated data to build platforms for lending, insurance and trading for farmers.

In Kenya, UjuziKilimo uses innovative sensory technology to carry out soil testing, allowing farmers to understand which crops will grow best on their land, what inputs they should be using and how much irrigation is required. The company operates in real time, meaning that a farmer can have an extensive soil report and associated advice within three minutes of the test being carried out.


Africa’s best-in-class

Few precision farming and big data initiatives on the continent can match the more comprehensive work being undertaken by some of South Africa’s commercial farmers and agricultural co-operatives.

Precision farming is a relatively common practice in this more sophisticated market – and one being used solely as a means of differentiation for commercial reasons.

GWK, a farmer-owned agribusiness operating in South Africa’s Northern Cape, began its precision farming unit in 2006 and started with the concept of data mining two years ago.

“It gives you the competitive edge. You get the best planting data, practices and cultivars,” Dup Haarhoff, head of agricultural services at GWK, tells GTR. The yields of the 86-odd farmers taking part in GWK’s precision farming projects are more than 10% higher than those of the average farmer.

Precision farming for GWK means making use of the very latest technology, including spot and sentinel satellite images, chemistry and physics cards, leaf analyses and a bespoke platform on which all the data is stored to support their farmers in making the right choices and getting the best results.

“One of our successes is the fact that we are ‘growing’ with our farmers as we develop custom-made solutions,” says Haarhoff.

Equally important to GWK’s holistic approach is its team of agronomists (agricultural scientists), which interpret the data to the benefit of the farmers.

“All the imagery and data is of no use if it’s not implemented on-farm,” he explains. “Big data can be very useful if it is used by agronomists with experience. Our secret is that our agronomists visit our farms and make observations on-farm. That links to the technology: you need that link – you need someone on-farm to help the farmer to better his crop.”

It is this agronomical experience to interpret the data that many believe is one of the missing links in the application of big data practices elsewhere on the continent.

It’s just one of the hurdles keeping international companies from taking their lucrative big data projects to Africa – although interest in doing so is growing.

Daniel Redo, head of agriculture research at Thomson Reuters, leads a team of researchers who use weather data and satellite imagery, amongst other tools, to forecast crop production. While their current focus is on specific countries in the Americas, Asia and Europe (and specifically in corn, soybeans, wheat and rapeseed), Redo tells GTR that there are a few African crops on the company’s radar to potentially cover in the future. West African cocoa, South African corn and North African wheat are of particular interest to the company’s clients, which include financial and risk managers, large traders, governments and food processors.

While Thomson Reuters already has many of the required foundational elements, such as weather and satellite imagery coverage, in place in West Africa, what it’s currently lacking is on-the-ground expertise. “From an internal logistics standpoint, you need well-trained analysts in order to look over all that data,” he explains to GTR.

Other requirements include the need to link up with local contacts that can facilitate access to – and engagement with – smallholder farmers to enable a good understanding of what’s going on.

But there are bigger challenges. For many crops in many African countries, the market needs more clarity on what is currently being produced – as well as historical output.

“If you look around the world, you have the US Department of Agriculture, Statistics Canada, Companhia Nacional de Abastecimento (Conab) in Brazil: all of these governments employ people to look at their crops and provide estimates on an annual basis – which then set the benchmark for what the market tacks to,” says Redo, whose job it is to get ahead of those forecasts and inform market participants prior to those government reports.

But, for markets like cocoa – as well as other crops in Africa – he explains, those benchmarks just do not exist.

Another impediment for Africa, from a production standpoint, is that investment into commercial agriculture, in terms of better quality feeds, the input of fertilisers, herbicides, pesticides and machinery, for example, has not been as forthcoming as it has been elsewhere in the world.

“If you go to places like Russia and Ukraine – and other countries – in the last 20 years yields have increased significantly, simply because of the investment into better inputs, seeds and technology,” Redo argues.


Closing the financing gap

It is these problems – and more – that inform Van Zyl at Agri SA’s notion that big data is “not going to change the game” when it comes to facilitating better access to financing for the start of the supply chain.

“The problem in Africa is that you don’t have big farms and the farmers don’t own the land,” he states, matter-of-factly.

The first difficulty for these farmers when it comes to securing loans, he says, is sourcing insurance cover.

Van Zyl explains: “If the farm is not mechanised, it cannot reach the economies of scale to farm profitably. And just on that basis, insurance companies wouldn’t be interested – because the risk is too high. What would you do if the farmer only has four or five acres and plants the wrong kind of maize?”

The reality is that smallholder farmers have to contend with far greater constraints. “You need to make the units bigger, provide ownerships, create access to capital to buy the seeds and plough the land: without these things, the rest of it is not going to happen,” he says.

And even if they did have access to huge swathes of accurate, reliable and timely data about Africa’s small-scale commercial farmers, mainstream wholesale banks will remain reluctant to get involved in financing them directly.

“Very few commercial banks have the infrastructure to bank thousands of small-scale farmers on a couple of hectares each in Africa,” says Zhann Meyer, head of agricultural commodities in Nedbank’s global commodity finance team.

He describes big data as a helpful tool to enable traders and agricultural co-operatives to mitigate their risks (and make them, as the obligor, more appealing to the banks), but not something that is going to change the way the model works.

“The compliance tsunami that banks are currently experiencing, makes it logistically challenging for a bank and a small-scale farmer to engage on a bilateral basis,” Meyer explains. The know your customer (KYC) process, for one, would be very difficult to carry out. “Small-scale farming invariably involves seasonal movement of farmers to other arable areas to let the land rest – and this alone creates massive hurdles in terms of loan administration and recovery.”

This is the primary reason why micro-financiers and regional aggregators, such as traders and some secondary processors – and not banks – are involved in financing these farmers: because they have the infrastructure and the on-the-ground presence to monitor the loans.

Nevertheless, Meyer says that there’s been a lot of engagement – particularly from the insurance companies – to try and establish workable models involving the banks by setting data points and subsequent long-term information collection. “An immense amount of data on rainfall patterns, average daily temperatures and sunlight days are then used as a basis for weather derivatives or index-based insurance policies or products,” he says.

“We looked at these policies in some detail, but it is challenging to make it work on a practical level because it’s not farmer specific.” Such policies don’t address the moral risk of non-performance by the insured farmers, Meyer explains: “When it comes to the setting of premiums, if one farmer doesn’t deliver and has a claim, it’s going to impact the premium of the farmer that does deliver above-average yield in a below-average rainfall year. An unfair policy is not sustainable – and one can only engage on these opportunities if the intention is to make it work in the long term.”


The next step

Bank financing aside, local and global corporations continue to press on with innovation in digital technology to improve the efficiency of food production in Africa.

Smallholder farmers provide up to 80% of the continent’s food supply, and as such are critical to maintaining food security. With some international donors turning inwards (evidenced in President Donald Trump’s decision to significantly axe the budget for the State Department and the US agency for international development), unlocking farmers’, investors’ and entrepreneurs’ potential in this sector will be key to its success.

Government involvement – and investment – in driving innovation will be crucial.

“If one considers food security and sustainability, it should primarily be the role of governments to make sure data points are specific, accurate and wide-spread enough to give a normal bell-curve for the average rainfall for a region, for example,” says Meyer at Nedbank.

If government funds are invested in making that kind of data available, then it is conceivable that some sort of financial product could be developed in a partnership to allow small-scale farmers to access the funds they need for inputs, such as seed, fertilisers and insecticides.

“You could then design a payment mechanism that disburses inputs in a staggered manner to a co-operative specific to a region or community as the land is prepared and the crop cultivation cycle progresses. Every farmer could get inputs in proportion to the land area he commits to cultivate, and then get rewarded for production in line with the yield and harvest in the co-operative,” he says.

In the case of crop damage or failure, he explains, claims could then be paid to the co-operative and managed as a collective – regardless of whether single farmers produce above or below the average “because the insurance product is designed to pay on the basis of average rainfall and heat units on the right time in that area”.

Redo at Thomson Reuters believes that governments could harness the widespread use of mobile technology to produce the benchmarks that the sector is lacking. This could allow farmers to contribute information on what they’ve planted and when – and how much they’re harvesting.

“If enough people are contributing then you’ve got a very rich and accurate data set to better inform the market and the governments,” he says.

But when it comes to reciprocal data flows, which are already being implemented by various agri players in the private sector, Redo advises that farmers being asked to help governments build their data sets will need to be properly incentivised.

“It has to be made clear how that information is getting used – we all have inherent scepticisms about giving away personal information,” he says.

Trust is a big one, and that’s going to take a long time to develop.

Although money is clearly the best incentive, it’s also the most difficult to offer. But this is where African farmers’ lending needs for purchasing inputs could ultimately be met. Redo suggests some sort of loan programme or discounts on seeds, herbicides and pesticides. “The farmers have to see a benefit,” he says.

It may be that Africa’s agribusiness sector needs a change of mindset as much as it needs digital innovation to secure its future.

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This Privacy Policy outlines the information we may collect about you in relation to your use of our websites, events, related publications and services (“personal data”) and how we may use that personal data. It also outlines the methods by which we and our service providers may (subject to necessary consents) monitor your online behaviour to deliver customised advertisements, marketing materials and other tailored services. This Privacy Policy also tells you how you can verify the accuracy of your personal data and how you can request that we delete or update it.

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Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade.

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On some Sites, Exporta Publishing & Events Ltd collects personal data such as your name, job title, department, company, e-mail, phone, work and/or home address, in order to register you for access to certain content, subscriptions and events. In addition, we may also store information including IP address and page analytics, including information regarding what pages are accessed, by whom and when.

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Where, as part of our Site services, we enable you to post information or materials on our Site, we may access and monitor any information which you upload or input, including in any password-protected sections. Subject to any necessary consents, we also monitor and/or record the different Sites you visit and actions taken on those Sites, e.g. content viewed or searched for. If you are a registered user (e.g. a subscriber or taking a trial), when you log on, this places a cookie on your machine. This enables your access to content and services that

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3.      Marketing

Some of your personal data collected under paragraphs 1 and 2 above may be used by us to contact you by e-mail, telephone and/or post for sending information or promotional material on our products and/or services and/or those of our other group companies.
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4.      Profiling

We may analyse your personal information to create a profile of your interests and preferences so that we can contact you with information relevant to you.

5.      Cookies and similar technologies

All our Sites use cookies and similar technical tools to collect information about your access to the Site and the services we provide.

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When you enter some sites, your computer will be issued with a cookie. Cookies are text files that identify your computer to servers. Cookies in themselves do not identify the individual user, just the computer used.

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E-mail tracking is a method for monitoring the e-mail delivery to those subscribers who have opted-in to receive marketing e-mails from GTR, including GTR Africa, GTR Asia, GTR Americas, GTR Europe, GTR Mena, GTR eNews, Third party e-mails and GTR Ventures.

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So that we can better understand our users’ needs, we track responses, subscription behaviour and engagement to our e-mails – for example, to see which links are the most popular in newsletters. They enable us to understand the consumers journey through metrics including open rate, click-through rate, bounces and unsubscribes. Any other purposes for which Exporta Publishing & Events Ltd wishes to use your personal data will be notified to you and your personal data will not be used for any such purpose without obtaining your prior consent.

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You can give your consent to opt-out of all or any particular uses of your data as indicated above by:

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To turn cookies and similar technologies on and off, see the information in paragraph 5 above. Any questions regarding consents and opt-outs should be sent by e-mail to or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

8.      Disclosures

Information collected at one Site may be shared between Exporta Publishing & Events Ltd and other group companies for the purposes listed above.

We may transfer, sell or assign any of the information described in this policy to third parties as a result of a sale, merger, consolidation, change of control, transfer of assets or reorganisation of our business.

9.      Public forums, message boards and blogs

Some of our Sites may have a message board, blogs or other facilities for user generated content available and users can participate in these facilities. Any information that is disclosed in these areas becomes public information and you should always be careful when deciding to disclose your personal information.

10.  Data outside the EEA

Services on the Internet are accessible globally so collection and transmission of personal data is not always limited to one country. Exporta Publishing & Events Ltd may transfer your personal data, for the above-listed purposes to other third parties, which may be located outside the European Economic Area and/or with a different level of personal data protection. However, when conducting transfers, we take all necessary steps to ensure that your data is treated reasonably, securely and in accordance with this Privacy Statement.

Who has access to your information?

Confidentiality and Security of Your Personal Data

We are committed to keeping the data you provide us secure and will take reasonable precautions to protect your personal data from loss, misuse or alteration.

However, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our Site; any transmission is at your own risk. Once we have received your information, we will use strict procedures and security features described above to try to prevent unauthorised access.

We have implemented information security policies, rules and technical measures to protect the personal data that we have under our control from:

  • unauthorised access
  • improper use or disclosure
  • unauthorised modification
  • unlawful destruction or accidental loss

All our employees, contractors and data processors (i.e. those who process your personal data on our behalf, for the purposes listed above), who have access to, and are associated with the processing of your personal data, are obliged to keep the information confidential and not use it for any other purpose than to carry out the services they are performing for us.


Everyone who works for or with Exporta Publishing & Events Ltd has some responsibility for ensuring data is collected, stored and handled appropriately. Each team handling personal data must ensure that it is handled and processed in line with this policy and data protection principles. However, the following people have key areas of responsibility. The board of directors is ultimately responsible for ensuring that Exporta Publishing & Events Ltd meets its legal obligations.

Name of Data Controller

The Data Controller is Exporta Publishing & Events Ltd. Exporta Publishing & Events Ltd is subject to the UK Data Protection Act 1998 and is registered in the UK with the Information Commissioner`s Office.

How to access, update and erase your personal information

If you wish to know whether we are keeping personal data about you, or if you have an enquiry about our privacy policy or your personal data held by us, in relation to any of the Sites, you can contact the Data Protection Officer via:

  • By writing to this address: Data Protection Officer, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, UK
  • Telephone: +44 (0) 20 8673 9666
  • E-mail:

Upon request, we will provide you with a readable copy of the personal data which we keep about you. We may require proof of your identity and may charge a small fee (not exceeding the statutory maximum fee that can be charged) to cover administration and postage.

Exporta Publishing & Events Ltd allows you to challenge the data that we hold about you and, where appropriate in accordance with applicable laws, you may have your personal information:

  • erased
  • rectified or amended
  • completed

Disclosing data for other reasons

In certain circumstances, the Data Protection Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject. Under these circumstances, Exporta Publishing & Events Ltd, will disclose requested data. However, the Data Controller will ensure the request is legitimate, seeking assistance from the board and from the company’s legal advisors where necessary.

Changes to this Privacy Statement

We will occasionally update this Privacy Statement to reflect new legislation or industry practice, group company changes and customer feedback. We encourage you to review this Privacy Statement periodically to be informed of how we are protecting your personal data.

Providing information

Exporta Publishing & Events Ltd aims to ensure that individuals are aware that their data is being processed, and that they understand.

  • How the data is being used
  • How to exercise their rights

To this end, the company has a privacy statement, setting out how data relating to individuals is used by the company. This is available on request and available on the company’s website.

Review of this policy

We keep this Policy under regular review. This Privacy Statement was last updated in April 2018.