Lersha – CIAT

Investing in Impact

P4G has provided the partnership with around US $300,000 in grant funding. 

The agricultural sector is a cornerstone of Ethiopia’s economy, providing employment to most of its working population. But Ethiopia’s agricultural output and the livelihoods of smallholder farmers are becoming increasing vulnerable to the effects of climate change. Smallholder farmers face an additional obstacle of generalized and often outdated recommendations for managing their plots, and a lack of access to affordable financial services. 

Lersha is, an Ethiopian startup, aims to empower farmers through an online platform that combines AI and human-enabled last mile services, to offer farmers localized crop management recommendations, micro loans, crop insurance and market access. 

Lersha collects real time soil, crop and weather data and shares tailored planting and fertilizer guidance. Trained agents, 40% of whom will be women, manage demonstration plots and link farmers to cooperatives, banks, insurers and offtakers. The combination on AI and human-centered services allows for a more personalized service that can inspire confidence and build trust among the farmers. 

Lersha has also partnered with financial institutions to offer input-linked loans. This incentivizes farmers to use high-quality inputs. 

The startup will generate revenue through 3-5% service fees on loans and commissions, 10% on input sales, and additional income from insurance partnerships. Initially, Lersha will focus on maize and wheat farmers with plans to eventually expand into coffee and teff. Through this model, Lersha expects farmers to see a 25% increase in yields, US $200 additional income per farmer and more efficient fertilizer use. 

CIAT has a long history of working on climate-smart agriculture projects and will provide the startup Lersha with scientific expertise in agricultural practices. CIAT will also ensure robust and accurate monitoring and reporting, and help support capacity building for financial institutions to understand the value and derisking effects of localized recommendations. 

During the P4G funding period, the partnership aims to register and capture crop data of 150,000 farmers, onboard more than 500 agents to deliver last-mile services, and raise US $1 million in investment. 

The partnership comprises the following partners: Lersha (Green Agro Solution) (lead business partner); CIAT (lead administrative partner); Siinqee Bank (financial services partner).