Watson Matsa, founder of eSusFarm Africa, has a unique perspective on the challenges faced by smallholder farmers in Africa. With a background in economics, accounting, and credit analytics, he initially focused on finance but later shifted his attention to agriculture.
Matsa’s journey began at Rhodes University, where he encountered an idea that sparked his interest: information unlocks capital. However, he realized that in Africa, the necessary information to unlock capital was often lacking, particularly for smallholder farmers.
Bridging the Gap Between Farmers and Finance
Matsa’s co-founder, an agricultural economics PhD, suggested applying this concept to agriculture. They identified soil, climate, farmer-reported, and crop information as key data points for assessing risk and making financial decisions. This led to the creation of eSusFarm Africa, which aims to build an ongoing risk-management system for smallholder farmers.
Having worked in credit analytics at FNB, Matsa understands the rigid structure of banking, which often fails to accommodate the seasonal income patterns of farmers. He believes that banking needs to adapt to people’s income cycles rather than dictating them.
In Nairobi, Matsa reflects on his transition from boardrooms to farms. He notes that while the boardroom taught him about governance and policy implementation, the ground taught him the importance of interpersonal relationships and simplifying complex concepts. This has made him a better communicator and more empathetic leader.
Matsa emphasizes that financial systems have been designed around formal employment, neglecting the earning patterns of farmers and the informal economy. He argues that banks should tap into the class of daily earners rather than focusing solely on monthly earners.
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The Power of Partnerships and Simple Solutions
A key conversation with Benny van Rooy, former CEO of Grobank, shifted eSusFarm’s focus. Van Rooy highlighted the importance of insurance in unlocking finance for farmers, as banks require assurance of stability. This insight led eSusFarm to prioritize insurance and data-driven underwriting.
eSusFarm’s platform combines AI, mobile money, blockchain, and insurance, but Matsa ensures that the delivery model remains simple and accessible. He believes in integrating technology into existing systems rather than building standalone apps, partnering with companies like MTN, Sanlam, and Microsoft.
Matsa’s days are filled with partnership negotiations and payroll concerns as eSusFarm expands across Africa. He remains committed to supporting smallholder farmers and challenging the continent’s financial assumptions.
The Evolution of eSusFarm Africa’s Approach
Van Rooy emphasized that banks require insurance before lending, as it provides stability and assurance.
Balancing Technology and Accessibility
While eSusFarm’s platform leverages AI, mobile money, blockchain, and insurance, Matsa is careful not to let technology overshadow the problem they’re solving. He emphasizes the importance of a simple delivery model, ensuring that their solutions are accessible through existing systems and devices that farmers already use, such as USSD and mobile money ecosystems.
Financial Systems and Daily Earners
He points out that these individuals often earn smaller amounts consistently, rather than fixed monthly incomes. This contrasts with the traditional banking focus on monthly earners in formal employment.
