Climateflation is a term emerging in economic and environmental discourse to describe inflationary pressures driven by climate-related disruptions, particularly in the food sector. Unlike conventional inflation, which typically stems from monetary or demand-side factors, climateflation is fueled by supply shocks resulting from extreme and unpredictable weather events such as droughts, floods, and heatwaves, that reduce agricultural output and destabilize supply chains. These impacts translate into rising prices for staple goods, placing significant strain on household budgets, especially in low-income and climate-vulnerable regions.

For policymakers, understanding climateflation is essential for developing resilient food systems, adapting inflation forecasting models, and designing targeted interventions that protect both consumers and economies from climate-induced volatility.

How Climate Change Hurts Food Prices

The primary mechanism behind climateflation is the direct impact of weather variability on agriculture. When agriculture is affected by weather or climate, the consequences are often severe. Around the world, there are numerous examples of how changing climate conditions disrupt farming. For example;

• Extreme heat and temperature spikes cause crops to fail by stressing plants and drying soils, reducing yields. According to research by the University of Chicago’s Institute for Climate and Sustainable Growth, the authors estimate climate change will drag global crop yields down by 8 percent in 2050, regardless of how much emissions rise or fall in the coming decades. That’s because carbon dioxide emissions stay in the atmosphere, trapping heat and causing damage for hundreds of years.
• Sudden temperature swings and frosts destabilize crop growth, with effects stronger in tropical regions where crops are less resilient to variability. An example of this is the agricultural frost and hail disaster experienced in Turkey this year which caused irreversible damage to cultivated areas in many regions, leading to over 575 million euros in losses.
• Rainfall anomalies, including droughts, floods, or erratic precipitation, damage crops, erode soils, and disrupt planting, pushing food prices higher. North Africa has been heavily hit by this challenge. In 2023, North Africa’s cereal production dropped by 10 percent below their five‑year average. In addition, studies in Nigeria show that even a 1% increase in rainfall anomaly results in a 0.58% short-term rise in food inflation.
• Severe weather events like storms and floods damage not only crops but also the infrastructure that distributes food, causing sharp price spikes. In the UK, potato prices increased 22 per cent from January to February 2024 due to extreme winter rainfall and flooding.

These climate-driven disruptions, from heatwaves and frosts to droughts, floods, and storms, ultimately reduce food supply by damaging crops, shrinking yields, and weakening the agricultural infrastructure needed to store and transport food. When supply falls and demand remains constant or increases, prices rise. This creates scarcity in markets, fuels inflation, and makes essential food items less affordable, particularly for vulnerable populations. As these climate impacts intensify and become more frequent, their inflationary effects on food prices — known as climateflation — will likely worsen, posing a growing threat to global food security and economic stability.

Other Evidence from Around the World

Beyond the examples already discussed, there’s growing empirical evidence from across the globe showing how extreme weather events continue to push food prices higher. These real-world cases underscore that climateflation is a widespread and escalating challenge, affecting markets everywhere; from Europe to Africa and beyond.

• European heatwaves and droughts in 2022–2023 drove olive oil prices up by 50%. Similarly, drought in Mexico led to a 20% increase in fruit and vegetable prices in early 2024.
• South Korea saw a 70% surge in cabbage prices in 2023 after a heatwave.
• Rice prices soared by 48% in Japan in September 2024 in the wake of a heatwave that was the hottest since regional records began in 1946, bar the equally hot summer of 2023.
• The cost of cocoa, the key ingredient for making the beloved sweets, shot up by 136% between July 2022 and February 2024, according to UNCTAD commodities price monitoring. In West Africa, which produces the bulk of global cocoa supplies, crops are increasingly under threat from heatwaves, intense rains and other climate-related risks. This has negatively impacted thousands of smallholder producers, who have seen their harvests diminish. In addition, excessive rainfall in Ghana and Côte d’Ivoire during the fourth quarter of 2023 have led to a flare-up of swollen shoot virus and black pod disease — a condition that causes cocoa pods to rot and harden, further contributing to low productivity and price surge.

These weather events illustrate how climateflation permeates global food markets, affecting diverse crops and multiple regions with varying climatic characteristics.

Implications for Policy and Economy

Climateflation-driven food price inflation poses profound threats to economic stability and social welfare, with repercussions extending across GDP, jobs, and growth prospects worldwide. Rising food prices directly strain household budgets, particularly for low-income populations, exacerbating food insecurity and poverty. But the impact is far broader.

Economic loss due to climate change is staggering. Damage to farming, infrastructure, productivity, and health from climate change will cost an estimated $38 trillion per year by 2050, German government-backed research finds, a figure almost certain to rise as human activity emits more greenhouse gases. This translates into a permanent average income reduction globally, with low-income tropical and subtropical countries disproportionately affected. Every 1°C rise in global temperature costs roughly 12% of world GDP, pushing many economies closer to recession risk.

From a macroeconomic perspective, climateflation adds volatility to inflation rates and complicates monetary policy. Food price inflation in Nigeria recently hit 21.87% annually, undermining price stability efforts. Inflation triggered by climate shocks is not easily managed by traditional tools, requiring more adaptive fiscal and monetary policies that consider climate risks.

Globally, extreme weather events, exacerbated by climate change, have already cost over $2 trillion in economic damages over the last decade, underscoring a pattern of record-breaking losses impacting economies at every scale. These recurring shocks suppress economic growth, strain government budgets, and increase poverty, creating systemic risks that could tip some countries into recession.

Collectively, these trends elevate climateflation from a niche environmental concern to a central economic challenge. Managing its consequences demands integrated climate adaptation, resilient agricultural practices, social safety nets, and international cooperation to stabilize food supply chains. Failure to act will perpetuate a cycle of inflation, instability, and declining economic well-being worldwide.

Policy Recommendations

To manage climateflation effectively, policies must combine climate adaptation with economic stability. The focus should be on building resilience, reducing risks, and protecting the most vulnerable.

1. Promote Resilient Farming Practices
Climate-smart agriculture is key. In Sri Lanka, switching to alternate wetting and drying techniques cut water use in rice farming by 10–20%, expanded irrigated land by 15%, and reduced fertilizer use by 27%; all while improving drought resilience.

2. Invest in Early Warning Systems

Timely weather and market data can reduce the impact of climate shocks. In flood-prone areas of Nigeria, systems that combine meteorological data with market monitoring can help stabilize food prices and reduce panic-buying and losses.

3. Adjust Monetary and Fiscal Policies
Traditional monetary tools like interest rate hikes are less effective when inflation is driven by climate shocks. Research from the Middle East and Central Asia shows that food inflation caused by climate events tends to persist longer. Fiscal tools like targeted subsidies and investments in sustainable agriculture, can help stabilize prices and support vulnerable groups.

4. Strengthen Social Safety Nets

Cash transfers, food aid, and input subsidies have proven effective in African countries hit by climate-induced food price spikes. These programs reduce hunger and prevent deeper poverty during climate emergencies.

5. Encourage International Cooperation

Global coordination is critical. Regional grain reserves, diversified supply chains, and joint trade policies help prevent local climate disasters from turning into global food crises. Organizations like the FAO are leading efforts to strengthen these international safety nets.

Conclusion

Climateflation, the rise in food prices driven by climate change, is becoming a major economic threat. Heatwaves, floods, droughts, and shifting weather patterns are putting pressure on global food systems, pushing prices up and threatening food security.

To tackle this, we need policies that combine climate resilience with economic stability. Only by acting early and working together can we protect vulnerable communities, keep food affordable, and build a more secure future in a warming world.

Rising Food Prices Amid Climate Change: The Growing Threat of Climateflation was originally published in Agtech Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

The debate is no longer just for scientists and policymakers, it’s now shaping public opinion, national policies, and how communities respond.

The question is no longer if Africa should embrace GMOs, but how, where, and on whose terms.

Why the Debate Matters

Africa is home to over 1.4 billion people, many of whom depend on smallholder farming for food and income. But challenges like rising food prices, pests, poor rainfall, and outdated farming methods are making it harder to grow enough food.

Can GMOs, designed to increase yields, resist pests, and survive drought, help solve these problems? Or do they risk creating new ones?

The answer could shape the future of farming across the continent.

The Case for GMOs: Bigger Harvests, Less Loss, More Food

Supporters believe GMOs can help Africa overcome farming challenges faster. In South Africa, for example, farmers using pest-resistant Bt maize have seen up to 11% more yield than those using regular seeds (AgBioForum, 2006). In Kenya, GM maize could save over 400,000 tonnes of crops each year from pests like stem borers (ScienceDirect, 2016; Cambridge Journal, 2023).

As droughts and poor soil threaten food production, scientists are also developing drought-tolerant and nitrogen-efficient GM crops to help farmers adapt to climate change.

In countries like Ghana, Nigeria, and Uganda, many farmers in pilot programs say they’ve seen better results and now understand how GMOs can help their farms.

The Concerns: Health, Control, and Farmer Freedom

Despite their potential, GMOs still face strong opposition across Africa. Critics raise three key concerns;

1. Health and Environmental Safety: Some research studies have raised concerns regarding genetically modified (GM) foods, particularly about potential unknown long-term effects that have not yet been fully studied. These concerns include the possibility of gene transfer from GM foods to other organisms, the risk of allergenic reactions in sensitive individuals, and unintended ecological consequences. While these worries stem from findings in certain animal toxicity studies and theoretical risks, the overall scientific consensus emphasizes the need for more well-designed, long-term studies to fully understand these potential impacts (Qian et al., 2022; Dona & Arvanitoyannis, 2009; ScienceDirect Review, 2016; IADNS, 2023).
2. Loss of Seed Sovereignty: Many GM seeds are patented, meaning farmers can’t save or replant them without buying new ones each season. This gives more control to big companies and takes power away from local farmers, threatening traditional seed-saving practices.
3. Environmental Impact: GM crops can reduce biodiversity by promoting large-scale monoculture. Over time, weeds and pests may become resistant, leading to increased use of chemicals, creating new challenges for farmers.

Without proper regulation and local ownership, critics fear GMOs could widen the gap between small farmers and global agribusiness.

Media and Public Perception: The Role of Communication

One reason GMOs remain controversial is that public understanding of the science and the surrounding politics is often shallow or one-sided. Studies have shown that media narratives frequently focus on the economic potential of GMOs, sidelining discussions on health, ethics, or environmental impact. This lack of holistic information makes it difficult for ordinary citizens to make informed judgments.

Educational background also plays a role. In Ghana and Nigeria, farmers with higher formal education levels are more likely to support GM technology and see its practical benefits. Conversely, low awareness and limited access to scientific knowledge breed distrust.

GMO Policies in Africa: A Mixed Picture

African countries remain divided on how to handle GMOs. Some, like South Africa, Nigeria, Kenya, Sudan, and Ethiopia, have passed laws allowing field trials and even commercial use. For instance, Kenya approved GM cotton in 2019 and announced GM maize in 2022, though public protests and court challenges have slowed things down (Alliance for Science, 2019; USDA, 2023).

Others, like Zambia, Tanzania, and Algeria, have chosen to ban or pause GMO use over concerns about health risks, trade impacts, and public trust. In Ghana, the rollout of Bt cowpea, a pest-resistant crop, has sparked both scientific praise and strong civic opposition since trials began in 2015.

But this debate goes beyond science. It’s also about who controls seeds, how much freedom farmers have, and whether Africa can shape its own food future. Critics warn that without strong local research and regulation, the continent may become too dependent on foreign biotech companies.

Finding the Middle Ground: Innovation with Ownership

The GMO debate in Africa shouldn’t just be about being “for” or “against.” The real issue is who owns the technology and how it is used. If we continue importing the products of other people’s research, we remain dependent. But if we build the capacity to develop and regulate the technology ourselves, we can set the ethics, define the rules, and ensure it serves our people.

To achieve this, we need;

• Science with Safeguards: GMOs must be tested locally, with independent, science-driven systems to ensure safety.
• Local R&D: African universities and research centers need the resources to study GMOs in our own soil and climate.
• Inclusive Conversations: Farmers, traditional leaders, and communities must be part of the dialogue, in their own languages.
• A Mix of Solutions: GMOs cannot be a silver bullet. Hunger is systemic and tied to inequality. Solutions must include agroecology, regenerative farming, indigenous knowledge, and stronger food governance.

Conclusion: From Dependence to Self-Reliance

GMOs are powerful tools, but tools alone won’t fix deep-rooted challenges. For Africa to achieve lasting food security and stronger farming systems, the focus must be on how technology is used, who controls it, and whether it truly meets local needs.

The real question isn’t if GMOs are good or bad. It’s whether they can be used in a way that empowers farmers, protects the environment, and builds Africa’s self-reliance.

This goes beyond better seeds. It calls for strong policies, honest science, local leadership, and trust. Only then can innovation truly serve the people.

GMOs in Africa: Hope, Risks, and the Way Forward was originally published in Agtech Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Back then, only a few homes had a desktop computer. Laptops were rare, electricity was unstable, and the internet could only be accessed by visiting cybercafés with noisy, slow-loading desktops connected via LAN. Phones were expensive, and mobile networks were new. If you were lucky, you could steal your parent’s phone at night to send texts to a teenage crush. In retrospect, it was a simpler and, perhaps, quieter time.

Technology was attractive then but limited — basic games, SMS, calls. It wasn’t overstimulating. Boredom was common, and we had to find creative ways to fill the time: playing outdoors, drawing, reading newspapers, or writing stories. These low-tech activities helped build our imagination and social skills.

Are Kids Smarter Today?

Today, technology is everywhere. With just a smartphone, students can access an ocean of information in seconds. Classrooms are powered by tablets, learning apps, and even virtual tutors. At the same time, exceptional academic performance appears to be on the rise, with more students graduating with perfect GPAs, such as 5.0/5.0. On the surface, this seems to affirm that technology — especially AI — boosts intelligence.

But is that the full picture?

We’ve seen an explosion of innovation, with teens launching startups, building robots, and using platforms like YouTube or AI tools to create viral content. AI has automated tasks that used to take hours — writing, coding, designing, and problem-solving. Clearly, these tools offer tremendous value. But are they helping us think better or simply think less?

AI: Progress or Problem?

Studies suggest the latter may be true. A recent MIT study, The Cognitive Cost of Using LLMs, followed students over four months. Those who regularly used ChatGPT for writing showed lower memory retention and reduced critical thinking. A similar study by Carnegie Mellon and Microsoft Research warned that over-reliance on GenAI tools could dull creative reasoning and problem-solving skills over time.

So, the question isn’t whether AI is useful — it clearly is — but whether it’s making us mentally lazy. Or are we blaming the tool for what’s actually a deeper issue?

Rethinking Education, Not Just Technology

Perhaps the real problem lies in our education systems. In countries like Nigeria, academic success is measured almost entirely by grades and exam results. Rote memorization is rewarded, while curiosity, collaboration, and critical thinking are often sidelined. Students are rarely trained to apply knowledge in real-world contexts. No wonder many of them use AI as a shortcut — it’s the system that encourages it.

Imagine a school system where students are not just taught to pass exams, but to solve problems — where they are encouraged to ask bold questions, build real-world projects, and use tools like AI as creative aids, not crutches. What if teachers encouraged “dumb” questions, and learning was driven by purpose rather than pressure? That’s the kind of reform that could make AI an amplifier, not a substitute, for student intelligence.

Intergenerational Foresight: Learning From the Past, Preparing for the Future

Here’s where intergenerational foresight becomes critical.

We can’t afford to raise a generation of AI-dependent thinkers who lack originality. Nor can we cling to outdated learning models that ignore the realities of the modern world. Instead, we must draw wisdom from both past and future: combine the resilience and resourcefulness of pre-digital generations with the technological fluency of today’s youth.

This means involving parents, teachers, and communities in shaping how young people use AI. It means updating school curricula to include AI literacy, ethics, and project-based learning. And it means teaching students to see AI not as a cheat code, but as a thinking partner — a tool to stretch their creativity, not simulate it.

Outside the Classroom: AI as a Business and Leadership Tool

In the working world, AI is already driving progress. In fields like healthcare, finance, and customer service, AI improves speed, precision, and decision-making. One study by Nielsen Norman Group found that AI-enabled programmers produced 126% more code per week, and customer service agents handled 13.8% more queries per hour with AI support.

Clearly, the ability to leverage AI is becoming a vital skill. But even in the business world, AI must be paired with human judgment, empathy, and strategic thinking. That’s why developing these skills early — alongside AI literacy — is essential.

So, How Early is Too Early?

Should kids as young as 10 be using AI? Maybe. But only with proper guidance. Without structure, AI becomes a distraction or shortcut. With structure, it becomes a catalyst for growth.

The answer is not to shield students from AI, but to teach them how to use it responsibly. Schools, families, and policymakers need to work together to establish boundaries, recommend safe tools, and model ethical AI use. Instead of fearing AI’s influence, we should prepare students to use it mindfully — just as we once taught them how to safely navigate the internet or use a calculator.

Conclusion: It’s Not AI vs. Intelligence — It’s AI and Intelligence

AI isn’t the enemy of intelligence — it’s a reflection of it. But how we teach the next generation to interact with AI will determine whether it becomes a crutch or a launchpad. The goal isn’t to stop the march of technology; it’s to make sure we’re marching in the right direction.

If we embrace intergenerational foresight, reform our education systems, and empower young people to be creators rather than consumers of technology, we’ll raise a generation that not only thinks critically — but also thinks bigger, braver, and bolder than ever before.

For many smallholder farmers in Africa, getting the right agricultural information at the right time is still a major challenge. In places like East Gojjam zone, Amhara, Ethiopia, farmers rely mostly on radio, neighbors, family, and local extension agents for advice. A survey of 403 households in this region revealed just how serious the problem is. The biggest issue — reported by 88% of farmers — is the lack of government support or policies to help them access useful farming information. Despite these challenges, change is happening.

Sub-Saharan Africa is experiencing a mobile revolution. By the end of 2023, the region had over 900 million mobile connections, and smartphone use continues to grow (Groupe Speciale Mobile Association — GSMA, 2024). This widespread connectivity is transforming how smallholder farmers access agricultural information.

Unlike traditional extension services — often limited by staffing, resources, and geography — mobile phones offer a faster, cheaper, and more efficient way to reach farmers, even in the most remote areas.

Examples of Mobile Services Helping Farmers

Across Africa, a wide range of mobile-based tools are being used to meet farmers’ needs. These tools are designed to be practical, affordable, and easy to use.

1. SMS-Based Services: Simple text messages are still one of the most popular tools. They provide short updates on weather, market prices, pest outbreaks, and basic farming tips. Services like WeFarm in East Africa connect farmers through SMS, allowing them to ask questions and share knowledge with one another (WeFarm, n.d.).
2. Voice Services: For farmers who may not read or write, voice-based tools are ideal. Services like Viamo’s 3–2–1 allow users to call a number and listen to recorded farming advice in their local language. Some systems even let farmers ask questions using their voice.
3. Mobile Applications: Apps now offer — custom advice based on location and crop type, tools to diagnose pests and diseases through photos, access to market prices and direct links to buyers, to mention a few. One example is M-Farm in Kenya, which gives real-time market data and connects farmers with customers.
4. USSD Technology: For areas with no internet, USSD codes (like *123#) provide a way to access information through simple phone menus. This makes farming advice available even on the most basic phones.
5. Social Media and Messaging Apps: Platforms like WhatsApp and Telegram are also becoming popular. Farmers use these apps to ask questions, share photos, get advice from experts, and stay in touch with farmer groups and extension agents.

Case Studies of AgriTech Companies Digitizing Agricultural Access

Rather than relying on conventional extension services or word-of-mouth, farmers are now leveraging their mobile devices to gain crucial insights on crop management, climate adaptation, and market access. Let’s explore five pioneering agritech firms driving this transformation and the tangible impacts of their efforts:

1. MyFarmbase Africa: Democratizing Agricultural Knowledge in Africa

At the forefront of this movement is MyFarmbase Africa, a digital learning platform that’s democratizing agricultural education across the continent. Through its mobile-optimized resources, WhatsApp groups, and interactive webinars, MyFarmbase equips farmers with climate-smart practices, precision farming know-how, and market insights tailored to local realities. MyFarmbase has trained over 12,000 smallholder farmers and youths across 15 countries in Africa on emerging technologies and climate resilient practices.

2. M-Farm: Mobile Phone-Enabled Services

Many farmers in the developing world have limited access to agricultural technologies and markets. Mobile phone-enabled services that offer price information and market linkages could contribute towards bridging this gap by reducing uncertainty about expected profits, information asymmetries and market inefficiencies. Findings from a survey of M-Farm users confirm that m-services offering price information can help farmers plan production processes better.

3. Precision Development (PxD): Phone-Based Technology for Agricultural Information Delivery

Traditional agricultural extension often fails to reach smallholder farmers with timely, tailored information. To solve this, researchers in Kenya and India tested mobile-based advisory services sending SMS and voice messages with specific farming tips. The results were clear: farmers made better decisions, boosted yields, and increased incomes at very low costs.

These findings led to the creation of Precision Development (PxD), a nonprofit delivering personalized, mobile agricultural advice. As of 2024, PxD has reached over 18.5 million farmers across Africa and Asia, helping them manage pests, improve soil health, and grow sustainably.

This case shows how simple mobile technology can close the information gap, empowering farmers and scaling impact across the continent.

4. Viamo Platform: Voice Service for Farmers.

Farm Radio sought to evaluate the effectiveness of its Swahili-language agricultural radio programs in Tanzania, particularly a 30-minute weekly show on improved vegetable production broadcast on Radio 5. While they had previously used basic mobile polling via missed calls (“beeps”) to gather listener feedback, this method offered limited interaction.

To enhance engagement, Viamo introduced an Interactive Voice Response (IVR) system. Instead of beeping for yes/no responses, listeners would beep once to request a call back, during which they were guided through a multi-question voice survey.

The system was promoted both during the radio broadcast and to 420 pre-registered listeners. The result: over 70,000 listeners participated, providing richer, more detailed feedback.

This new method transformed radio from a one-way communication tool into an interactive platform. It allowed real-time dialogue, helped farmers express their views beyond simple yes/no answers, and enabled broadcasters to improve their content based on direct listener feedback, fulfilling Farm Radio’s goal of amplifying farmer voices in development communication.

5. WeFarm: Peer-to-Peer Knowledge Sharing

WeFarm is harnessing the power of peer-to-peer learning. This mobile platform allows farmers to crowdsource solutions to challenges in real time, even without internet access. Farmers across Africa can ask questions and share answers, tapping into a vast pool of local knowledge. With over 2.5 million users across Africa, WeFarm has become a vital source of real-time, context-specific solutions, fostering a culture of knowledge-sharing and strengthening community networks.

These case studies illustrate that mobile technology is far more than a convenience, it’s a lifeline for millions of farmers across Africa. By bridging knowledge gaps, linking farmers to essential resources, and fostering real-time learning, mobile platforms like those championed by MyFarmbase Africa and its peers are paving the way for a more productive, resilient, and inclusive agricultural sector.

Addressing the Challenges: Barriers to Digital Information in Agriculture

As mobile-based agricultural information and advisory services sweep across Africa, they promise to revolutionize the way farmers grow, manage, and sell their crops. But beyond the excitement of these innovations lie real-world barriers that shape their true impact and sustainability. They include;

1. Connectivity and Infrastructure Gaps: While smartphone penetration is growing rapidly, rural connectivity remains patchy and unreliable.
2. Literacy and Local Relevance: Digital platforms must speak the language of the farmer, literally. MyFarmbase Africa, for example, has successfully increased farmer engagement by producing content in local languages and formats that farmers can easily digest. Yet, this is not always the case. Many agritech startups continue to rely heavily on text-heavy resources, which remain out of reach for farmers with low literacy levels. This gap not only limits adoption but also slows down the scale and inclusivity of these promising platforms.
3. Policy and Financial Sustainability: Funding and policy support are the lifeblood of any digital farming initiative. However, as donor and venture funding cycles evolve, questions of long-term financial sustainability loom large. At the same time, policies and regulatory frameworks like mobile data taxes or digital inclusion incentives often lag behind technological advances. Without supportive policies, even the most innovative platforms can struggle to reach scale or achieve financial independence.

The Solution: How To Strengthen Agricultural Information Access for Scalable Impact

Exploring the true potential of Africa’s agricultural sector hinges on the accessibility of timely, reliable, and actionable information. As mobile technology continues to reshape the farming landscape, the next frontier lies in ensuring that this digital shift is inclusive, locally relevant, and deeply responsive to the needs of farmers. To drive real transformation, agricultural information systems must evolve beyond just delivery; they must empower, educate, and inspire change across the entire value chain. We can do this effectively by;

1. Investing in Infrastructure Development: Reliable internet connectivity is the backbone of mobile-based agricultural services. Expanding mobile network coverage and ensuring affordable data access are crucial for bringing these game-changing platforms to the last mile.
2. Developing Localized and Culturally Sensitive Content or Speaking the Farmer’s Language: Success stories like MyFarmbase Africa highlight the power of tailoring content to resonate with farmers, whether through local languages or visual storytelling. In regions with low literacy rates, adapting content to local contexts bridges the gap between high-tech solutions and farmer-friendly tools.
3. Promoting Digital Literacy and Skills Development: Digital tools are only as effective as the farmers who use them. By investing in digital literacy programs, we can transform novelty into everyday practice and unlock greater adoption.
4. Fostering Collaborative Partnerships: No single actor can drive this change alone. Scaling impact means creating bridges between policymakers, innovators, and local farming communities.
5. Establishing Robust Monitoring and Evaluation Systems: As these initiatives expand, measuring real-world impact becomes essential. MyFarmbase Africa has set an example by using farmer feedback to refine its services, proving that data-driven adjustments boost relevance and engagement. Effective monitoring systems ensure that interventions stay aligned with farmers’ evolving needs.

Conclusion

Mobile-based agricultural information and advisory services represent a significant force in the transformation of African agriculture. By dismantling barriers to information access, improving market engagement, and promoting more efficient resource management, these technologies are empowering smallholder farmers to enhance their productivity, increase their incomes, and build greater resilience. While challenges persist, ongoing innovation, strategic collaborations, and a sustained focus on addressing the unique needs of African farmers will unlock the full potential of mobile technology to drive sustainable agricultural development and contribute to food security across the continent.

Transforming Agricultural Information Access for African Smallholder Farmers Through Mobile… was originally published in Agtech Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

From groundbreaking innovations to global activism, from championship titles to million-dollar startups, today’s teens are proving that leadership has no age requirement. They aren’t waiting for adulthood to make an impact, they’re using their energy, creativity, and courage to solve real-world problems right now.

Science backs this up. Research by Claire E. Stevenson and others shows that the teenage brain is uniquely wired for learning, risk-taking, and outside-the-box thinking, and often outpaces adults in originality and adaptability. This “window of plasticity” allows teens to approach challenges with fresh eyes, unconstrained by the mindset of “it’s always been done this way.” Before we dive deeper, let’s take a moment to appreciate this fascinating group of “rebels” or teenagers, if you will.

Unwrapping the Teenage Brain

Teenagers are an amazing sight.

One minute, they’re full of energy and curiosity — pushing boundaries, starting trends, creating the next big thing. The next, they leave you wondering, “What on earth were they thinking?” Teen behavior can feel unpredictable, even reckless. But what if we’ve been looking at it all wrong? According to neuroscientist Adriana Galván, the teenage brain isn’t broken — it’s brilliantly wired for transformation.

Why Teens Seem “Reckless”

It’s not that teens don’t think; it’s that their brains are optimized for learning through doing, especially when emotions or peers are involved. Neuroscientist Adriana Galván made the following discovery;

• Reward Radar on Overdrive: The mesolimbic dopamine system (the brain’s thrill-seeking center) is hyperactive during adolescence. That means trying something risky feels extra rewarding — and yes, that includes sneaking out or riding a bike down a steep hill.
• Peer Power: Being watched by friends can turbocharge decision-making. Whether it’s a risky stunt or standing up for what’s right, social validation matters — a lot to teenagers.
• Logic Lag: Their prefrontal cortex — the brain’s planning and impulse-control hub — is still maturing. So while they can think critically, it’s emotion that often takes the wheel in high-stakes moments.

Harnessing Their “Recklessness” for Global Impact

Teenagers’ boldness isn’t a flaw, it’s fuel. With the right support, their high-energy risk-taking can be redirected toward powerful growth and impact. Drawing from Adriana Galván’s research, teenagers’ “recklessness” can be harnessed in the following ways;

• Creative Courage: That same thrill-seeking drive can inspire bold innovation.
• Learning on the Edge: With high emotional engagement, experiences stick and last long. Teens internalize lessons deeply when they’re allowed to fail, try again, and own the process.
• Authentic Leadership: Give them a stage or responsibility, and watch their social radar fuel authentic leadership.
• Resilient Mindsets: Taking risks and recovering builds grit. Today’s “reckless” teen is tomorrow’s resilient adult; one who knows how to navigate complexity with confidence.

Why Teens Might Be Better Innovators Than Adults

Teenagers have a kind of secret superpower when it comes to coming up with new ideas and thinking outside the box. Amongst many others, here are a few reasons why this is so, according to Adriana’s research,

• Open Minds, Quick Thinking: Teens are incredibly mentally flexible. That means they can switch between ideas easily, adapt quickly when things change, and aren’t stuck in the same old habits like many adults. They see problems from fresh angles, which makes them awesome problem-solvers.
• Brains Built for Learning: Teenage brains are in a special stage where they’re growing and changing super fast. This makes it easier for them to learn from experiences, especially when they get feedback — whether things go right or wrong. Their brains are wired to learn more deeply, which helps them take in new ideas and turn them into creative action.
• Risk Friendly: One of the coolest things about being a teen is — you’re not afraid to try new things. Teens are more likely to take smart risks, and that’s a big deal in the world of innovation. While adults often play it safe, teens are more willing to push limits, try bold ideas, and challenge the norm — and that’s where big breakthroughs come from.

Teen vs. Adult Innovator Edge

How Education and Environment Help Young Innovators Shine

Every teen holds a spark of creativity, but it takes the right education and environment to turn that spark into innovation. Rather than quieting their bold ideas, we can guide and shape them through support, tools, and opportunities that help them grow into confident, capable young innovators. Let’s explore how supportive learning environments and purposeful education can unlock the brilliance within every young innovator.

• Project-Based Learning

Not all schools are the same and some styles of teaching are especially good at growing creative minds. For example, some kids often do better on creativity tests. Why? Because they get to explore on their own, work on real projects, and think in open-ended ways. This kind of learning helps build brain networks that support imagination and flexible thinking, making it easier for young people to come up with fresh, exciting ideas.

• The Role of Technology and Community Support

Creativity doesn’t happen in a vacuum. When kids have access to cool tools like 3D printers, coding platforms, or maker spaces they can actually build their ideas. Encouragement is just as important. When teachers, mentors, or family cheer kids on, they’re more likely to take risks, try again when things fail, and push their ideas further. Plus, working with others teaches them new skills and shows them different ways to think.

• A Little Encouragement Goes a Long Way

Belief matters. When someone says, “You’ve got this,” it sticks. Young innovators thrive when adults believe in them, support their curiosity, and make space for their wild ideas. With the right boost, even the youngest inventors can make real change and maybe even start something the world’s never seen before.

Real-Life Stories: Teenagers Changing the World

Nigerian teenagers are making remarkable strides across technology, social advocacy, education, and environmental activism — proving that age is no limit to impact.

At just 9 years old, Basil Okpara Jnr built over 30 mobile games using a free programming tool from his home in Lagos. His creativity and passion for technology have made him a standout young inventor, showing the world that innovation can begin at any age.

By 13, Ayomide Akran founded the Pink Diva Organisation to promote environmental sustainability and gender equality. Leading a team of fellow teens, she produces and distributes reusable sanitary pads to girls in rural areas while also teaching personal and environmental hygiene — empowering young girls and championing youth-led solutions to social challenges.

At 19, Splendor Kalu launched CommunitiesWillConnect to bridge the digital divide in rural Nigeria. His initiative equips young boys and girls with coding and digital skills, nurturing a new generation of problem-solvers and community innovators.

Also at 19, Kachi Nnaji created SmartBot, an AI-powered chatbot helping local businesses enhance customer service and operational efficiency. His early interest in robotics and artificial intelligence is now making real-world impact by helping small enterprises thrive.

Conclusion

Teenagers aren’t just the future — they’re leading change right now. When we invest in their creativity, we unlock powerful solutions for our world.

Parents can nurture curiosity, teachers can spark innovation, and leaders can create space for youth ideas to grow. These young trailblazers show us that with the right support, every teen has the power to do something great.

Experience And Learnings Across Lending Models

Over the years, I’ve had the opportunity to work across various lending models, and trust me, it’s not always as straightforward as it looks on paper. For the sake of this article, I’ll focus on just three out of the models I’ve dealt with extensively;

Model A: Fully Collateralized Lending

This is sometimes called a working capital facility. Here, a client is given access to funds, usually backed by hard collateral, to support business operations. The repayment structure could either be;

• Monthly interest payments with a balloon (lump-sum) capital repayment at the end, or
• A blended monthly repayment of both interest and part of the capital.

Sounds solid, right? After all, it’s “fully collateralized.” But not so fast. There’s more to it than meets the eye.

The Not-So-Obvious Risks

• Purpose of Funds: What exactly is the client using the money for? If the cash is going into a slow-moving or high-risk business activity, the collateral won’t save you from default.
• Cash Flow: Can the client realistically generate enough cash flow to meet repayment obligations?
• Collateral Liquidity: What kind of collateral is it? How quickly can you convert it to cash if things go south?

A Real-Life Story

A client once took a ₦35 million collateral-backed loan, claiming it was for local trading. Turns out, he planned to use it for car imports. He kept up with monthly interest payments until it was time to repay the principal. And then, boom! Everywhere bust (a Nigerian phrase meaning: “things fell apart completely”). His goods hadn’t arrived, cash was tight, and the loan had to be restructured.

Lesson Learned

In my experience, I recommend blending cash flow-based lending with collateralized lending. Collateral alone won’t protect you; cash flow is king.

Model B: Liquid Asset-Based Lending (Invoice Discounting)

This model lets businesses borrow against their unpaid invoices. Essentially, they get early access to money that customers are yet to pay.

Seems clean, right? The goods/services are already delivered by the borrower to the anchor corporate, the invoice has been issued, and it’s just a matter of time before the payment comes in.

But Here’s the Catch

It’s still risky unless you can clearly answer some key questions;

• Who is the anchor corporate? Are they reputable and reliable?
• Are the documents legit? Some borrowers forge invoices or claim relationships they don’t have.
• Will the borrower repay after being paid? Some get the payment and quietly use the funds without informing the lender.

A Real-Life Story

In 2021, a borrower secured a ₦70 million invoice discounting loan from a FinTech firm, backed by a ₦100 million invoice. The anchor was supposed to pay in 90 days. Months passed, no repayment. The lender later learnt that the anchor had already paid. The borrower simply diverted the funds and ghosted the lender.

Lessons Learned

• Build a direct relationship with the anchor corporate to know when payments are made.
• Domicile repayments in an account the lender controls to avoid diversion.

Model C: Trade Finance

Trade finance is a popular lending option, accessible even without hard collateral but it’s also one of the most complex models due to many moving parts.

In simple terms, trade finance supports the buying and selling of goods, typically involving:

• Suppliers,
• Off-takers (buyers) or anchor corporate,
• And logistics partners.

You’d think it’s just supply and demand, but here’s where the complexity lies. Because it involves a number of stakeholders, it also has many dependencies on external sources which increases the likelihood of things going wrong.

Some Key Considerations for Lenders

• Industry: What sector is the client playing in?
• Commodity: Is it high-risk? Volatile?
• Logistics: What’s the delivery timeline? Are delays common?

A Real-Life Story

A client requested trade finance for a quick 7-day deal. The goods took 7 days in transit, and then the off-taker, who should have paid in 48 hours, took three weeks. A simple one-week deal stretched to over a month. Market risks like this are common in trade finance.

Alternative Approach

Some lenders now opt to share profits instead of charging flat interest. It aligns both parties and can be more flexible, but it depends on your risk appetite and business model. Some lenders combine this with on-field monitoring of the trade transactions.

Lessons Learned

• Equity Participation: When clients have skin in the game, they’re more financially committed.
• Monitoring: Ongoing visibility into business activity helps catch red flags early.
• Domiciliation: Controlling the inflow of proceeds ensures the lender gets paid before the borrower touches the money.

Final Thoughts

Loan defaults aren’t just about “bad borrowers” or “greedy lenders”, they reflect deeper economic realities. Between 2021 and 2023, over 7.8 million SMEs shut down in Nigeria, squeezed by 30%+ inflation, FX volatility, and infrastructure failures.

From seized goods at ports to cash diverted due to delayed payments, the case studies show one truth: both borrowers and lenders play a role in success or failure.

SMEs must borrow wisely, plan better, and resist treating loans like “national cake.” Lenders must go beyond paperwork, understand real risks, and build flexible, trust-driven systems. If we don’t shift from blame to partnership, we’ll keep repeating the cycle. But with the right approach, lending can still power real SME growth, even in tough times.

Why Do Businesses Default?

This question keeps many finance executives awake at night. It’s one that I sleep and wake up with, and after thinking about it for years, the answers often feel so inadequate that I find myself wondering if I’ve been thinking about it all wrong.

Let’s take a moment to define a few helpful terms for those new to the lending or credit risk space:

Definition of Terms

Loan Default: A loan is said to be in default when the borrower fails to meet the legal obligations of the loan, usually by missing payments over a certain period.

NPL (Non-Performing Loan): A loan becomes non-performing when the borrower has not made scheduled payments, principal or interest, for 90 days or more.

PAR (Portfolio at Risk): The portion of a loan portfolio that is at risk of default, usually calculated based on the total outstanding amount of loans past due.

Default Rates Among Nigerian SMEs

Let’s look at some numbers to ground this conversation.

In Q4 2024, 10.1% of Nigerian households defaulted on their loans, according to the Central Bank’s Credit Condition Survey. Lenders reported higher defaults across all loan types, and as of April 2023, non-performing loans hit N1.32tn.

So, are these individuals or businesses simply dishonest? Not quite.

Yes, some involve fraud. But for many SMEs, the story is more complex, from rising costs and unstable cash flow to policy shifts and market shocks.

Default doesn’t always mean deceit.

The SME Borrower’s Psychology

How do borrowers think?

This might seem like a philosophical question, but for lenders, it’s very practical and important. If you can understand how SME borrowers think, you can better design products, manage risk, and build sustainable financial relationships.

Over the last few years, I’ve had the privilege of speaking to thousands of SMEs and working directly with hundreds more. It’s always fascinating to observe their thought processes, what drives them, what builds trust, and what breaks it.

There’s a popular saying that “business is built on trust.” If that’s true, then how can lenders build enough trust to earn repayment? These are some of the questions I find myself asking as a key player in the lending sector:

• How do I keep a borrower loyal and committed to repaying?
• What makes a borrower repay diligently for 2 years and then suddenly vanish?
• Was it planned, or triggered by unforeseen events?
• What role does human psychology play in these decisions?

Why Do SMEs Take Loans?

Is it really about growth? Or is it sometimes about shifting risk to an entity that can “afford the loss”?

Some SMEs have told me they take loans to put “healthy pressure” on themselves, believing that the pressure of repaying will push them to succeed. Others take it as insurance against business risk, hoping to scale fast before they crash.

“It’s Our National Cake”: Loan Perception and Moral Hazard

Here’s where it gets uncomfortable but necessary.

How do borrowers perceive lenders, banks, fintechs, micro-finance institutions (MFIs)? Are they viewed as partners? Enablers? Or simply as deep pockets?

Sadly, in some circles, loans are seen as a form of national cake; free money that doesn’t really need to be paid back.

A friend once told me his mother took a loan and said, “I’m not paying that back. It’s our national cake.” I was stunned, but not surprised.

This attitude reflects a bigger challenge: the moral hazard of lending in low-trust environments.

It’s not always malicious. Sometimes it’s born from desperation. Other times, from years of seeing institutions fail people without consequence. But whatever the reason, it complicates how we think about risk.

Learning from the Field

I interviewed a couple of businesses to get their reasons for past defaults. The goal wasn’t to judge or defend anyone, but to understand what really happens when a loan goes unpaid. Here’s what they shared;

Case Study 1: “I was greedy…”
The borrower took a ₦20 million trade finance facility but couldn’t repay.

“I made a huge mistake. Because of the lender’s high interest rate, I decided to take a very juicy offer from a new buyer, and the money is yet to come back. If I knew, I would have stuck to my original buyer. I was greedy.”

This shows how a single risky decision, made under pressure, can lead to default.

Case Study 2: “The losses kept piling up.”
This borrower had a clean repayment history for 12 months, until things changed.

“The problem started when market prices began to fluctuate. The losses kept piling up. One day, I could no longer keep up. I started borrowing from other places and taking more business risks. Things just got worse.”

Market instability, inflation, and uncertainty played a big role here.

Case Study 3: “I felt like I was working for them.”
The borrower started well, but struggled as costs rose.

“I never intended to default, but their interest rate kept rising. They promised to reduce it if I paid on time, but they didn’t. More charges came in and it became choking. I felt like I was working for them, not my business.”

The cost of borrowing became too much for the business to bear.

Case Study 4: “I thought I was being efficient.”
In this case, repayment was delayed but not out of bad faith.

“I was paid by my clients before the loan due date, but the disbursement process had already taken a while. I was running at a loss. The loan was due in two weeks, so I used the funds for another supply. I paid it off eventually, but it took 30 extra days.”

Here, timing issues and cash flow mismatch led to a late payment.

Case Study 5: “My goods were seized at the port.”
This borrower’s default was tied to external challenges.

“My goods were seized at the port by customs. This last happened in 2012. Now, I have over ₦500 million worth of goods held and I’m cash trapped. I’m sure I’ll clear it, but for now, I’m stuck.”

This case highlights the impact of policy and infrastructure challenges.

To continue reading, click here.

Loan defaults have become one of the biggest challenges in financing small and medium-sized enterprises (SMEs), the backbone of Africa’s economy. According to the World Bank, SMEs make up about 90% of businesses, and drive most of the employment on the continent. But when loans go unpaid, it’s not just lenders who suffer. Jobs are lost, businesses shut down, and the entire system takes a hit.

Many lenders have pulled back, shrinking the pool of available funds and making it even harder for small businesses to grow. So, why do so many SMEs default? What’s really going on beneath the surface?

Based on my experience working between clients and FinTechs, I’ve had a front-row seat to both sides of the lending equation. I’ve observed the patterns, the pitfalls, and a few truly bizarre cases. With this broad perspective in view, let’s dive into the real reasons why SMEs default on their loans.

Why Are SMEs So Important for the Economy?

Before we dive into why so many small businesses struggle with loan repayment, it’s important to understand just how vital they are, I mean SMEs, especially in countries like Nigeria, and really, all over the world. Knowing what qualifies as an SME and the role they play helps us see why their success matters, and why their challenges, including loan defaults, can affect everyone.

What Qualifies as an SME?

Small and Medium-sized Enterprises (SMEs) are usually defined by how many people they employ, how much they earn in a year, and the value of their assets. In Nigeria, an SME typically has between 11 and 200 employees, with assets worth between ₦5 million and ₦500 million (about $15,000 to $1.5 million), according to the Central Bank of Nigeria.

In other parts of the world, like the EU, an SME can have up to 250 employees, with annual revenue under €50 million, according to the European Commission. These definitions may vary by country, but the idea is the same: SMEs are not large corporations, but they’re much more than just side hustles.

The Role of SMEs in Nigeria’s Economy

In Nigeria, SMEs are everywhere. They make up about 96% of all businesses and provide jobs for roughly 84% of the working population. That’s huge. They also contribute nearly half of the country’s GDP. So, when you think about what keeps the Nigerian economy going day to day, it’s mostly these small and medium businesses.

Why SMEs Will Always Be the Backbone of Nigeria’s Economy

Looking at the numbers and the impact, it’s clear SMEs aren’t just important, they’re essential. They hire more people, support local economies, and help close the gap between the rich and poor by spreading income more widely.

In a country with a young population and high unemployment, SMEs offer a lifeline. They’re often quicker to adapt, more flexible in uncertain times, and better connected to the needs of their communities. That’s why, no matter how things change, SMEs will always be central to Nigeria’s economic future.

Lending Landscape in Nigeria

Overview of Business Lending in Nigeria

Business lending in Nigeria is still a major challenge, especially for small and medium-sized enterprises (SMEs). Even though SMEs make up most of the country’s businesses, a recent World Bank survey found that only 15 percent of SMEs in the country reported having a bank loan or line of credit. Instead, many rely on informal sources like local lenders or turn to family and friends for help. With the rise of FinTechs in Nigeria, many businesses have enjoyed access to capital in recent times but that also seems to be dwindling.

Do SMEs Borrow the Most? A Sectoral Comparison

SMEs dominate the Nigerian business scene; over 45 million people, about 43% of the adult population, run some form of business (Micro, small and Medium enterprises (MSME) National Survey 2017 report). But when it comes to borrowing, big companies and government agencies usually take the largest loans. While SMEs make the highest number of loan requests, the amounts they get (if approved at all) are often small in comparison. Let’s take a look at the credit distribution across various sectors;

Verdict: Only about 15% of Nigerian SMEs have access to formal loans. This is backed up by a World Bank survey.

NOTE: These insights displayed on the graphs are based on my personal research and estimates, drawn from the National Bureau of Statistics’ Selected Banking Sector Data, Q4 2018, along with an analysis of which sectors are typically dominated by large companies versus SMEs.

Challenges Facing SME Access to Finance

SMEs face a number of hurdles when it comes to securing funding, some caused by the business owners themselves, and others rooted in the broader economic and regulatory environment.

1. No Collateral: Most SMEs don’t have the kind of fixed assets financiers want as security.
2. High Interest Rates: Some loans come with interest rates as high as ~80% per annum, which just isn’t realistic for small businesses.
3. Strict Documentation: Many SMEs can’t produce audited accounts, credit reports, or registration documents. Some struggle to keep records.
4. Bureaucracy: Dealing with regulations and red tape (excessive bureaucracy) scares off both local lenders and foreign investors.
5. Low Investor Interest: Venture capital and angel investors tend to chase tech startups or high-growth companies, not traditional SMEs.

SME Defaults and Lending Ecosystem

Loan default among SMEs is becoming more common. High borrowing costs, unstable market conditions, and thin profit margins make it hard for many businesses to keep up with repayments. Some banks are even threatening to seize assets from defaulting businesses, which only adds more fear and makes lenders even more cautious.

Why Understanding Default is Critical for SME Capital Access

When too many SMEs default, banks pull back. That means fewer loans, tougher rules, and higher interest rates. The whole system starts to work against small businesses.

I have seen this cycle repeated so many times. It is a self-reinforcing negative cycle, often referred to as a credit crunch, that can severely affect the SME sector and broader economy if not managed.

That’s why it’s so important to understand why businesses default. If we can figure out the root causes, we can start building better lending practices that actually work for SMEs and unlock real growth.

To continue reading, click here.