IFAD and German Launch Innovatech 2.0 to Transform Small-Scale Agriculture

Innovatech 2.0: Empowering 17,000 Small Farmers with Technology to Boost Productivity and Climate Resilience.

In a significant step towards advancing agricultural innovation, the United Nations International Fund for Agricultural Development (IFAD) and the German Sparkassenstiftung for International Cooperation (DSIK) have launched Innovatech 2.0. This ambitious programme aims to provide over 17,000 small crop and livestock producers with access to cutting-edge technology, enhancing their productivity, income, and resilience to climate change.

During the launch event, IFAD President Álvaro Lario emphasized that Innovatech 2.0 will play a crucial role in fostering technology start-ups that cater to the specific needs of agricultural producers. "Dynamic rural sectors are essential not only for global nutrition but also for creating attractive opportunities that inspire younger generations to engage in agriculture," Lario stated.

Christina Olsen, General Director of Innovatech, highlighted the importance of investment in start-ups to overcome initial challenges and tailor their business models to meet the practical needs of rural communities. "Innovatech demonstrates that with specialized advisory services and targeted support, start-ups can bridge the digital divide and work more effectively with small producers," Olsen added.

Significant Financial Backing and Broader Impact

Innovatech 2.0 is implemented by the German Sparkassenstiftung and has secured US$4 million in funding from IFAD and the European Union. The EU’s contribution comes through the Global Program for Small Agroecological Producers and Sustainable Transformation of Food Systems (GP-SAEP).

Despite their pivotal role in ensuring food security, small producers face numerous obstacles, including limited access to financing, technology, and training. The physical remoteness of rural areas, high operational costs, and low levels of digital literacy often deter technology companies from entering these markets. Innovatech 2.0 seeks to address these challenges head-on.

Leveraging FinTech and AgriTech to Overcome Barriers

The rise of FinTech and AgriTech offers promising solutions to the hurdles faced by small producers. Innovatech 2.0 has selected fifteen start-ups to accelerate the development and adaptation of digital tools. These solutions aim to enhance production and marketing capacities, facilitate access to financial and non-financial services, and promote sustainable agricultural practices.

These innovations will benefit at least 340 rural organizations across five Latin American countries—Bolivia, El Salvador, Guatemala, Honduras, and Peru—and one Asian country, Bangladesh. Many of these organizations are already practicing agroecology or are transitioning towards it. Notably, 40% of the applications developed under Innovatech 2.0 will focus on expanding digital services to support this agroecological transition, contributing to sustainable food systems through natural resource conservation and reduced chemical inputs.

Enhancing Climate Resilience in Vulnerable Regions

Rossana Polastri, Regional Director of IFAD’s Latin America and the Caribbean Division, underscored the urgency of building resilient food systems in a region highly susceptible to extreme climate events. "With Innovatech 2.0, we are devising innovative solutions to help small farmers better prepare for and adapt to climate change," Polastri remarked.

Empowering Marginalized Communities Through Training and Mentorship

Innovatech 2.0 is not just about technology; it’s about people. The programme will provide technological training to rural youth, women, Indigenous people, and returning migrants. Specialized mentoring will ensure effective technology adoption, creating employment opportunities within the tech start-ups that will drive resilient and sustainable agrifood systems. The initiative aims to engage at least 8,500 women, 8,500 young people, and 1,700 Indigenous community members.

Introducing the “Hub Edition” for Localized Innovation Support

A novel feature of Innovatech 2.0 is the “Hub Edition,” where two innovation centres—one in El Salvador and another in Peru—will be selected, trained, and financially supported to implement the programme’s methodology and assist start-ups in developing technology solutions.

Building on the Success of Innovatech’s First Edition

The first edition of Innovatech, implemented from 2021 to 2023, delivered digital solutions to producers in six Latin American and Caribbean countries. The programme positively impacted nearly 21,000 households—more than double the original target. These solutions improved educational and financial inclusion, facilitated access to machinery, optimized business management, and enabled producers to leverage e-commerce opportunities.

With Innovatech 2.0, IFAD and DSIK are set to continue this transformative journey, empowering small producers with the tools and knowledge they need to thrive in an increasingly digital and climate-challenged world.