Innovation is essential when it comes to addressing the pressing challenges faced by communities worldwide. In the African context, where agriculture forms the backbone of many economies, technological advancements hold immense potential. We spotlight two organisations making impactful change by leveraging AI technology. Both are pioneering agriculture companies striving to create open-source AI systems that are both impactful and financially sustainable, while sharing the technology so that others can create their own tools.
To support them in their endeavours, each of them has gone through the Open-Source AI Business Mentorship program, a six-month advisory journey that Villgro Africa and GIZ’s FAIR Forward initiative designed to deliver a diverse set of open-source topics and business know-how. Ranging from legal topics like licensing options for datasets and algorithms or covering the pros and cons of different business models for open-source software products, we share some inspiring impressions and lessons learned from two of the five participants.
Imagine having access to localised, open-source AI-driven insights that could safeguard farmers' livelihoods and boost crop yields. That's precisely what LDRI (Local Development Research Institute) is striving for. By harnessing the power of artificial intelligence, LDRI offers early warning systems tailored to the unique needs of smallholder farmers across Kenya.
The problem they tackle is clear: existing broad-scale early warning systems often fall short in providing actionable information at the local level. LDRI's innovative tool involves collecting ground data, from farm activities to household demographics, and integrating it with satellite imagery to predict crop stress and estimate yields. Through platforms like WhatsApp, they deliver personalised recommendations to farmers, providing them with crucial information to mitigate risks and enhance productivity.
What sets LDRI apart is their emphasis on trust-building and community engagement. They recognise that technology alone isn't enough; establishing connections with farmers and collaborating with stakeholders across the agricultural value chain are key to driving meaningful impact.
With support from the mentorship program, LDRI has been able to move their intervention from a project to an investable and sustainable business. They gained clarity on their business model, especially given that the data and outputs of their AI are open-source. From working together with their mentor, they were able to identify potential early customers and investors and solidify their value proposition. They have also fine-tuned their market entry strategy and, with insights from the program, will be generating revenue before the end of the year.
Access to credit is a significant barrier for small-scale farmers striving to maximize their potential. M-Omulimisa steps in to address this challenge in Uganda by providing AI-based yield prediction solution “Croppie” for small-holder coffee farmers and cooperatives. By leveraging digital platforms and mobile money, they facilitate seamless lending processes, empowering farmers to invest in essential resources like fertilizers and harvesting tools.
The impact of M-Omulimisa's work is tangible. Through strategic partnerships and data-driven approaches, they've facilitated farmers' access to international markets and developed credit scoring algorithms to streamline lending processes. They also acknowledge the need for robust communication and marketing strategies to amplify their reach and ensure consistent messaging across their various channels.
The impact of M-Omulimisa's work is tangible. In partnership with the Alliance of Bioversity/CIAT and Producers Direct, they've facilitated farmers' access to AI-based yield prediction and actionable agronomic advice. They also acknowledge the need for robust communication and marketing strategies to amplify their reach and ensure consistent messaging across their various channels.
With support from the mentorship program, M-Omulimisa has significantly enhanced their business model, fine-tuning it for market viability. Additionally, they have prototyped a credit-allocation model that leverages the yield predictions, positioning them for accelerated growth and investment opportunities. Reflecting possible risks of such solutions, the mentors have emphasised how safeguards such as placing humans in the loop of such decisions are key to mitigate potential harms. Finally, the program has also afforded them invaluable insights into open-source AI business models and intellectual property strategies, equipping them with the knowledge needed to navigate these complex landscapes effectively.
Receiving ongoing feedback from the five participants and learning what they valued most about the program, GIZ - FAIR Forward and Villgro Africa were quickly determined to launch a second round of the mentorship program. The project managers at GIZ, Jonas Gramse and Daniel Brumund, remark that, “Now that the methodology of the program has been tested and proven to be effective for these companies, we are excited to launch a second round hosting six new startups, willing to leverage the benefits of open-source AI technology for their businesses”.
Additionally, Wambui Nyabero from Villgro Africa noted that “Working with GIZ - FAIR Forward and AI startups to apply funding and business models and strategies to open source AI programs continues to be an excellent opportunity for all stakeholders. Keeping a balance between community impact and sustainability goals is a great way to grow and sustain AI-based enterprises in low- and middle-income countries.”
Villgro Africa’s Rob Beyer also said, "It has been a wonderful journey walking alongside these committed innovators. Although we are confident in the Villgro Africa business development capabilities, the rapid emergence of AI has challenged our thinking and forced us to be even more reactive and inventive in implementing open source business models that can be leveraged to achieve both impact and sustainability".
The organisations that have participated in the Open-Source AI Business Mentorship program have demonstrated that open-source solutions can be both impactful and financially sustainable. By addressing pressing challenges with empathy, ingenuity, and collaboration, they are paving the way for a more equitable and prosperous future in Africa and beyond. Together, they embody the spirit of innovation that transcends boundaries and empowers communities to thrive.
For more insights on GIZ’s FAIR Forward project, visit: https://www.bmz-digital.global/en/overview-of-initiatives/fair-forward/