The International Finance Corporation (IFC) has announced a $1 million convertible loan to Lersha, a move expected to improve access to finance for smallholder farmers in Ethiopia and support the growth of digital agriculture solutions in the country.
The investment, which marks Lersha’s first institutional funding, is aimed at helping the company scale its operations and reach one million farmers by 2030. Currently, more than 340,000 farmers use the platform. By expanding its reach, the initiative is expected to strengthen agricultural productivity, improve farmer incomes and support broader economic development.
The announcement was made during the IFC FIG Africa AgriFinance Client and Partner Event held in Addis Ababa from March 31 to April 1, 2026. The event brought together financial institutions, agri-tech companies and development partners focused on improving agricultural finance across Africa.
IFC noted that while over 60 percent of Africa’s population depends on agriculture, less than 5 percent of commercial credit is directed to the sector. This gap continues to limit growth in agricultural productivity. Through investments like this, IFC aims to support solutions that can close this financing gap and make financial services more accessible to farmers.
Expanding Access Through Digital Agriculture
Lersha operates a “phygital” model that combines physical service delivery with digital tools. The platform connects farmers to agricultural inputs, mechanization services, financial products and markets. It also provides real-time agro-climate advice and fertilizer recommendations.
The company currently works with more than 340,000 smallholder farmers and over 250 service providers. Its network includes more than 2,000 agents, a call center and a digital platform that allows farmers to access services both online and offline.
This integrated approach is expected to improve efficiency across the agricultural value chain. By simplifying access to finance and services, farmers can increase productivity and reduce risks linked to climate and market changes.
Strengthening Agricultural Lending and Partnerships
Alongside the investment in Lersha, IFC also signed a risk-sharing facility agreement with Dashen Bank. The agreement is designed to expand lending to farmers and small businesses by reducing the risk for financial institutions. This is expected to encourage more banks to increase their exposure to the agricultural sector.
Lersha described the investment as a major milestone for the company and a validation of its business model. The company stated that the partnership is not only about funding but also about scaling a long-term vision to improve how smallholder farmers access finance and markets.
The partnership signals growing confidence in digital agriculture solutions and highlights the role of technology in addressing long-standing challenges in the sector. With increased support from institutions like IFC, initiatives such as Lersha are expected to play a key role in transforming agriculture and improving livelihoods for farmers across Ethiopia.
