Why We Invested in Mazaohub | Data-Driven Farming: Transforming Smallholder Agriculture in Sub-Saharan Africa

A moment capturing dedicated MazaoHub agronomists and outreach officers as they prepare to start their journey from the MazaoHub Farmer Excellence Center to support local farmers.

Investing in precision agriculture in Sub-Saharan Africa could unlock significant productivity and financial gains for smallholder farmers, yet only a fraction of them have access to these transformative tools.

THE MARKET NEED

Agriculture is the backbone of Tanzania’s economy, yet nearly 39% of smallholder farmers live below the national poverty line. These farmers, who produce 70% of the region’s agricultural output, face immense challenges: low literacy levels, limited access to essential farm management tools, and a lack of market information. These barriers trap farmers in a vicious cycle of inefficient practices, low productivity, and low income. Farmers in Tanzania also rely heavily on informal markets. Estimates suggest 70–80% farmers sell their crops outside formal channels, further exposing them to market volatility and limited income opportunities.

Adding to these challenges is the lack of access to modern extension services. With a shortage of agricultural officers — often one officer for every 3,000 farmers — most smallholders depend on local vendors and peers for farming advice. These informal sources of guidance rarely offer the precision needed for resource-efficient farming, particularly in a world where climate change is increasingly exacerbating risks such as soil degradation, pest outbreaks, and droughts.

As climate change continues to threaten food systems, the urgency for scalable, technology-driven solutions is growing. Precision agriculture, powered by data and artificial intelligence, offers a compelling solution to these challenges. By equipping farmers with real-time, accurate data about their soil and their crops, precision agriculture can increase yields, reduce input costs, and promote environmental sustainability. For the 7.8 million households involved in agriculture in Tanzania, adopting precision agriculture could radically transform livelihoods, strengthen climate resilience, and ensure more stable incomes.

MazaoHub’s advanced soil kits connected to the smart platform, providing farmers with soil health results in under five minutes for precise, data-driven farming.

THE MAZAOHUB SOLUTION

MazaoHub is revolutionizing smallholder farming by bringing precision agriculture tailored to their needs. The platform provides farmers with AI-powered, farm-specific advice based on data collected from soil sensors. This advice covers everything from optimal fertilizer usage to detailed crop management practices, allowing farmers to make data-driven decisions that boost productivity and reduce costs.

MazaoHub stands out because of its holistic approach. With its innovative “Tech and Touch” Model. By partnering with local rural agribusinesses, MazaoHub establishes Farmer Excellent Centers (FECs), which act as trusted rural agricultural hubs for delivering precision farming technologies. These FECs are equipped with MazaoHub’s AI-powered tools, including soil sensors and specialized software, to provide hyperlocal, farm-specific insights. Farmers receive real-time soil analysis, advice on fertilizer use, herbicides, crop management, and farm financials, helping them increase yields, reduce input costs, and improve soil fertility.

Aditionally, MazaoHub facilitates market access by connecting farmers with buyers and markets, ensuring they have a clear path to selling their produce at competitive prices. In a region where most smallholders sell through informal markets, this market linkage is a game-changer. The company’s unique value proposition lies in its ability to leverage trusted local agribusiness networks, allowing smallholders to access cutting-edge technology while maintaining relationships with established community players.

MazaoHub agronomist offers personalized guidance to farmers during a field visit, ensuring tailored support based on specific soil health and crop needs.

The results are clear: Farmers using MazaoHub have reported significant increases in yield, reduced fertilizer costs by over 30%, and experienced more stable incomes. As of May 2024, MazaoHub has 46,855 registered farmers, 30,222 of whom are paying customers — a testament to the growing demand for its services.

“Our vision at MazaoHub is to build a transformative, data-driven agricultural platform that begins right at the source — the land and crop management. Thanks to our investors and this critical partnership, we are poised to empower smallholder farmers with precision insights and advanced tools to maximize productivity and sustainability. But that’s just the beginning. MazaoHub will enable seamless collaboration for all stakeholders — food companies, input manufacturers, insurance providers, and banks — by offering farm-level data analytics that unlock unparalleled transparency and efficiency. With this platform, trading, financing, and providing services to farmers will become easier, smarter, and more impactful than ever before.” — Geophrey Tenganamba, Founder of MazaoHub

An exterior view of MazaoHub Farmer Excellence Center, showcasing the central hub where farmers gather for resources, training, and support.

INVESTMENT RATIONALE

MazaoHub directly aligns with our Climate-Smart Technologies and Adaptive Agriculture and Food Systems theses. By enabling efficient input use and providing tailored agronomy advice, the platform boosts climate resilience and enhances the financial stability of smallholder farmers. MazaoHub is helping to create stronger, more sustainable food systems by connecting farmers to the right technology and providing market access.

NEXT STEPS

MazaoHub’s growth trajectory is promising. With plans to scale its soil sensor network and a target of serving 250,000 farmers in the next 18 months, the company is well on its way to transforming agriculture in Tanzania. As it expands, we’re thrilled to support their journey and help them unlock the full potential of precision agriculture for smallholders across the region.

Stay tuned for more updates on our portfolio here.