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In the heart of Ethiopia, where agriculture sustains millions, a quiet revolution is unfolding—one that holds the promise of transforming the lives of women and men smallholder farmers and reshaping the future of diverse rural communities. At the center of this transformation is Lersha, a dynamic Agtech platform for innovative digital solutions for smallholder and commercial farmers in Ethiopia. Scaling from 160 Agents who had a reach of 80,000 smallholder farmers in 2021 to over 3200 agents and over 300,000 smallholder farmers through the partnership with Mercy Corps AgriFin.
Together, they’ve not only rewritten the rules of farming practices but also demonstrated the immense potential of strategic partnerships and collaboration to drive scalable and sustainable impact. This is a story of innovation driven by human-centered approaches that continue to contribute to inclusivity and resilience.
The Spark: A Partnership Rooted in Purpose
In 2022, Lersha and Mercy Corps AgriFin joined forces with a shared vision: to empower smallholder farmers by bridging the gap between them and essential services like financing, mechanization, and agro-advisory. Lersha had the vision, but it needed a partner with expertise to navigate the complexities of rural agriculture and unlock new opportunities. AgriFin, with its deep knowledge of digital financial services and a mission to drive inclusive growth, stepped in.
The partnership was transformative from the start. AgriFin gave technical assistance to Lersha to refine its business model and identify entry points into Ethiopia’s lowlands—regions often overlooked but brimming with untapped potential.
A year later, together, they developed a digital credit scoring model and an expert scorecard, a groundbreaking innovation that allowed Lersha to partner with financial institutions like Dashen, Hibret, and Sinqee. This model unlocked microloans for thousands of farmers, enabling them to access inputs, increase productivity, and improve their livelihoods. The results were staggering: over 17,000 vegetable producers, 6,000 maize farmers, and 5,500 malt barley growers gained access to the much-needed financing.
Breaking Barriers: Mechanization Reaches New Frontiers
One of the most inspiring chapters in this journey unfolded in Aleletu Woreda, a region in North Shewa Zone. For years, smallholder farmers here had struggled with post-harvest losses, relying on backbreaking manual labor to harvest their crops. Mechanized services were a distant dream, hindered by a lack of equipment and the reluctance of service providers to operate in the area.
But Lersha, with AgriFin’s support, saw an opportunity to break the cycle. They conducted repeated training sessions for farmers and stakeholders, building trust and demonstrating the value of mechanization. Lersha Agents, the on-ground representatives and entry points into communities, worked tirelessly to organize demand, making it easier for service providers to see the potential in Aleletu Woreda.
The result? Over 6,750 smallholder farmers accessed mechanized harvesting services for the first time. This achievement not only reduced post-harvest losses but also proved that with the right support, even the most entrenched barriers can be overcome. It’s a powerful example of how targeted interventions can create lasting change.
Empowering Women: A Gender-Smart Approach
As Lersha expanded its reach, it became clear that women farmers faced unique and contextual challenges that influenced their active participation in agricultural activities. Despite their critical role in agriculture, women often had limited access to credit and financial services, information, training, and farming inputs. AgriFin and Lersha decided to tackle this issue head-on by introducing a gender-smart credit scoring system. This innovative approach considered the specific needs and challenges of women farmers, ensuring a more equitable and inclusive model of access.
The impact was immense. Women who had previously been excluded from financial products and services were able to actively participate, unlocking new economic opportunities for themselves and their families that have led to positive outcomes at a household level. This initiative not only empowered women but also strengthened entire communities, proving that inclusivity is not just a moral imperative—it’s a smart investment. AgriFin also conducted gender training for Lersha’s staff which has been instrumental in the recruitment of more women (and young women) agents, who have recruited and onboarded more women smallholder farmers, reaching the 40% target.
Scaling Up: New Horizons and Greater Impact
With AgriFin’s technical support, Lersha didn’t just stop at innovation—it scaled its impact. New regional offices were established in Mekele and Jimma, expanding Lersha’s reach to the Tigray region, Western Oromia, and South West Ethiopia. These offices, coupled with the recruitment of additional Lersha Agents, allowed the platform to serve a wider network of farmers, including women, and partner with traditional and non-traditional value chain actors in the AgriTech ecosystem for example Dashen for financial access, Ethiotelecom on agents e.t.c
By the end of 2024, Lersha had created 322,000 digital farmer profiles and recruited over 3,200 agents. These agents became the backbone of Lersha’s operations, delivering agro-climate advisories, facilitating access to finance, and connecting farmers to mechanization services. The scale of this impact is a testament to what’s possible when innovative solutions are paired with strategic partnerships.
Lessons Learned: Navigating Challenges Together
Data collection proved to be costly, and delays in seed availability sometimes left farmers frustrated. Financial literacy gaps among smallholder farmers also posed a significant hurdle, limiting their ability to fully benefit from Lersha’s services.
But with AgriFin’s technical support, Lersha is turning these challenges into opportunities for growth. They are planning to introduce pre-workshop sessions to align stakeholders, exploring new ways to incentivize data and evidence collection, and double down on efforts to improve financial literacy among farmers. These lessons are invaluable for future initiatives, offering a roadmap for overcoming existing and new obstacles in other contexts.
A Future Full of Promise—and Opportunity for Investment
Today, Lersha stands as a beacon of hope for smallholder farmers across Ethiopia. Its partnership with AgriFin has not only transformed the agricultural landscape but also demonstrated the power of collaboration in driving meaningful change. But this is just the beginning.
The success of Lersha and MCA’s partnership is a call to action for investors, philanthropists, and development organizations. By investing in similar programs, we can replicate this model in other regions, empowering more farmers, creating more inclusive economies, and driving sustainable growth and resilience.
