Maputo Bridge Capital (MBC), founded by Anselmo Boaventura in Fort Worth, Texas, solves the credit gap in Mozambique by connecting sponsors with verified smallholder farmers. Instead of requiring traditional collateral, MBC leverages a data-driven model to support farmers who have been historically excluded from formal financial systems.
The Credit Crisis
| Metric | Mozambique | South Africa | Kenya |
|---|---|---|---|
| Bank accounts (% adults) | 48% | 85% | 83% |
| Access to credit | 8% | 35% | 22% |
| Loan rejection rate | 80% | 25% | 40% |
| Average loan size | $200 | $3,000 | $500 |
In Mozambique, 80% of loan applications are rejected. The primary reason is a lack of traditional collateral; banks require land titles (DUAT) that most smallholder farmers do not possess. This creates a significant barrier to the capital needed for seed and fertilizer.
MBC's Alternative Data Model
To bridge this gap, MBC explores how technology can assess agricultural potential. While MBC connects sponsors directly to farmers through the COJAZ cooperative in Zambezia, we research the potential of the following data points to assess farm viability:
| Data Source | What It Proves | Credit Assessment Weight |
|---|---|---|
| Satellite NDVI (crop health) | Farm productivity | 30% |
| M-Pesa transaction history | Payment behavior | 20% |
| Weather data (rainfall) | Climate risk | 15% |
| Farm profile (size, crops, experience) | Farm viability | 15% |
| Repayment history | Trustworthiness | 10% |
| Community verification (agent) | Social proof | 10% |
The Nature of Mozambican Agricultural Land
Land rights (DUAT), community mapping, soil, water, erosion and regeneration. Read the DUAT chapter and five soil tests free.
PDF ebook, instant download. $5 of every copy buys seed for a farmer.
The Impact of Data
By utilizing information from the sky (satellites), phones (mobile money), and soil (field verification), the future of agricultural lending could look very different. Farmers without formal titles or credit histories may eventually be evaluated based on their actual productivity rather than static collateral.
How this impacts the season
For a smallholder farmer in Zambezia, access to timely capital means the difference between planting on time and missing the window for optimal rainfall. With support for seeds and fertilizer, farmers can increase yields and eventually repay into a Community Fund that enables the next farmer to succeed.
Frequently asked questions
Why is traditional collateral difficult to obtain in Mozambique? Most smallholder farmers do not have formal land titles known as DUAT, which is the primary requirement for traditional bank loans.
What role does satellite data play in agricultural assessment? Satellite NDVI data measures crop health and farm productivity, providing an objective view of a farm's success regardless of physical assets.
How does mobile money facilitate financial inclusion? Transaction history from platforms like M-Pesa provides a digital footprint of economic activity, which serves as a substitute for traditional credit history.
Learn more about how sponsoring a farmer works or meet the farmers currently being supported by our initiatives.
Sponsoring a farmer is a meaningful way to provide direct support. You can sponsor a farmer starting from $25 at /donate. Please note that sponsorships are gifts, not investments, and they are not tax-deductible.
