Nigerian agri-tech startup UfarmX has facilitated more than $6.8 million in agricultural commerce. The activity spans Nigeria, Senegal, and Liberia. The company also confirmed plans to expand into Kenya, marking its first entry into East Africa.
UfarmX uses blockchain technology to serve rural, unbanked, and underserved smallholder farmers. The platform connects farmers to quality farm inputs. Much of this is offered on credit through a transparent blockchain ledger.
In addition, the platform gives farmers access to markets after harvest. It also collects valuable data that helps farmers scale their operations over time.
Disrupt Africa first reported UfarmX’s expansion to Senegal back in 2023. Since then, the startup has grown its footprint further. It now also operates in Liberia.
Across these three markets, UfarmX works with more than 17,000 credit-scored farmers. It also partners with a growing network of vetted retailers. Together, these partnerships form the backbone of its model.
Notably, the company’s insured retailer channel runs a net default rate of just 1.17 percent. This is a strong result. Many African banks still view agricultural lending as too risky.
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CEO Alexander Zanders told Disrupt Africa the company began by lending directly to farmers. This approach helped test the model early on. Farmers repaid their loans, and both yields and revenues grew.
However, banks moved too slowly to build a sustainable business around. So, UfarmX pivoted to a retail-based model instead. Local retailers now extend credit to farmers using UfarmX’s data. This removes the need for a bank altogether.
This retail approach is only phase one of UfarmX’s broader strategy. Next, the company plans to launch a credit-scoring API by the end of the year. This tool will let banks and financial institutions process loan applications directly through UfarmX’s underwriting system. Zanders compared this to how American lenders rely on credit bureaus like Equifax or Experian.
Meanwhile, UfarmX confirmed its Kenyan expansion is planned for the fourth quarter. This will mark the company’s first move into East Africa. Ahead of the API rollout, the startup is already talking to banks, development finance institutions, insurers, and input producers. Many of them want early access to the underwriting system.
Ultimately, Zanders believes African agriculture deserves more recognition as a serious investment opportunity. Too often, the sector gets viewed only through the lens of impact and charity. In his view, it actually represents one of the largest untapped credit markets on the continent.
With growing farmer trust, low default rates, and an expanding footprint, UfarmX looks well positioned. The company could scale its model across more African markets in the months ahead.
