MazaoHub was introduced to the Catalyst Fund incubated by the Global Climate Finance Innovation Lab through CLIC’s Agricultural Products Investment Connector.
When farm management company MazaoHub was in beta, CEO Geoffrey Tenganamba told his team, “We are founders in East Africa, where access to capital is limited. Unlike Silicon Valley startups, we had no room to extend the beta phase. At the time, MazaoHub’s developers were using data collected from soil samples to train artificial intelligence models. Today, its app has analyzed more than 80,000 soil tests to provide personalized agricultural insights to Tanzania’s small farmers.
The growth-stage climate tech company has secured $200,000 in funding through a Simple Future Equity (SAFE) agreement from venture capital funds and accelerators supporting climate resilience in Africa. With support from the ClimateShot Investor Alliance agri-food investment connector (Connector), MazaoHub is currently seeking to raise $1.5 million in seed funding to expand its reach to farmers by manufacturing and distributing more low-cost soil testing kits. “The Catalyst Fund’s investment would not have been possible without the support of CLIC,” said Tenganamba. “They are the bridge that keeps us going and helps us take this big step.
In 2023, the Global Climate Finance Innovation Lab accelerated the development of the Catalyst Fund, a program designed to fast-track innovative financial solutions to accelerate climate investment in emerging markets. “Mazao Hub is a great opportunity because of the team’s deep market knowledge, strong and tangible operational know-how, government partnerships and commitment to smallholder farmers,” said Karen Serem Waithaka, chief investment officer of Catalyst Funds. “The company’s The growth trajectory, diversified revenue streams and strategic partnerships are promising.”
Connector is CLIC's platform to support climate-smart and nature-positive agribusiness through investment facilitation and impact assessment. Its first teams are working across the agrifood value chain to reduce carbon emissions and increase the climate resilience of smallholder farmers in sub-Saharan Africa. “This is a testament to the cross-team effort of the Climate Policy Initiative. CLIC will continue to support agribusiness with climate and nature benefits to attract investors and secure funding, which is critical to expanding their business and impact.
Developed by small farmers
The annual costs of climate change to Tanzania's agri-food sector exceed the annual climate resilience investments of approximately US$100 million to US$150 million (World Bank). Financing climate-smart agriculture (CSA) is critical to livelihoods in the region, and a single drought or flood can increase food insecurity by 5 to 20 percent (IMF). The lack of early warning and response systems for climate fluctuations has strained farmers' ability to cope with these shocks.
In 2021, Tenganamba co-founded Mazaohub Precision Agriculture with Chief Technology Officer Adelard Urassa to provide farmers with more information to manage climate risks. Their farm analytics dashboard serves over 35,000 smallholder farmers who dominate Tanzania’s agricultural landscape. Tenganamba said that the two co-founders both come from agricultural backgrounds, “MazaoHub was born out of our common struggle. We are not outsiders, we are members of the village. This grassroots knowledge allowed them to develop a system that can be adapted to different crops and climate environments.” Provide customized solutions.
In 2022, MazaoHub received a $50,000 grant from the UK Foreign, Commonwealth and Development Office, the United Nations Development Program and the European Union, with revenue exceeding $500,000 by 2023. It raised US$10,000 in seed round financing to fund its growth plan, aiming to cover 1 million small farmers by 2027.
Agriculture is like healthcare
The MazaoHub app provides farmers with insights on soil quality and recommendations on precise inputs to improve soil fertility and yields. This is achieved through solar-powered IoT sensors that scan soil samples and link to the app. The sensors collect data on nutrients, moisture and pH to assess soil health and suggest interventions to improve crops' climate resilience. “Agriculture is like healthcare, we can use artificial intelligence to provide farmers with personalized, instant prescriptions, similar to how doctors provide prescriptions,” Tenganamba said.
For example, excessive use of chemical fertilizers can saturate soil to the point where agricultural production is unsustainable. MazaoHub’s technology helps farmers develop customized plans to switch from synthetic fertilizers to organic alternatives, which have the potential to reduce greenhouse gas emissions by sequestering carbon in the soil. Among farmers interviewed, MazaoHub's agronomic advice is estimated to have increased organic fertilizer application by a factor of six and reduced mineral fertilizer costs by 30%.
In partnership with the Tanzania Meteorological Service, MazaoHub will also combine information collected from the field with satellite imagery and geospatial data on climate and geographical conditions. This adds another layer of predictive intelligence to the model by including data points for temperature, humidity, wind speed, conductivity and solar radiation.
By providing climate information services, MazaoHub helps farmers select high-yielding crops based on the weather and terrain in their region. According to its own analysis, MazaoHub’s crop monitoring service has tripled the farm’s tomato production and doubled the production of maize, a rain-fed crop that accounts for a quarter of Tanzania’s agricultural land.
Cast a spell with science
To overcome cost barriers for small farmers, MazaoHub rents its soil testing kits to its network agricultural clinic (“agricultural clinic” in Swahili) are run by local agricultural businesses and farmers' cooperatives. At a cost of $10 per acre, farmers can analyze their soil samples in five minutes at these centers. MazaoHub has conducted nearly 80,000 tests through this technology and contact model, through which farmers can receive face-to-face advice from extension officers and agronomic experts.
Tenganamaba recalled that after a bad harvest, his brother-in-law vowed not to farm anymore. He was convinced that his neighbor had cast a witchcraft on his corn crop because his corn crop was failing while his neighbor's corn was thriving.
After testing soil samples from his brother-in-law's fields, Tenganamaba found that the pH was too low for corn production. To neutralize alkalinity, the MazaoHub app recommends adding lime juice to the field. After applying the recommended dose, the crop rebounds at the next harvest. “Now he no longer believes in witchcraft,” Tenganamba smiled.
Please contact CLIC (clic@cpiglobal.org) Learn more about MazaoHub and the lab (lab.cpi@cpiglobal.org) to learn more about Catalyst Funds.
