The beer market is booming in Ethiopia. Many international breweries try to establish local malting factories and breweries. As the main ingredient for beer production, barley is one of the major cash crops in Ethiopia. A good barley yield secures the repayment of the credit loans. With the restricted markets for barley import, the needs for locally grown barley are increasing. However, credits are not granted by local banks.
The increasing availability of satellite data provide a key to mitigate and better estimate repayment risks in the agricultural sector. The satellite signal detects crop type and potential yield status at field level with a temporal resolution of five days. Hence, well-producing barley farmers, eligible for credits by local banks, can be identified. At the same time, travelling distances and operational costs can be reduced through the use of credit calculation app on mobile devices. A farmer has to fill in an application form and identify his parcels by walking around them with his mobile device to apply for a loan.
There are hundreds of millions of small-holder farmers throughout the world facing a lack of credit access. Satellites cover the whole world and almost all farmers have a mobile device and internet connection. A running demonstration pilot reached 200 farmers in central Ethiopia. The pilot shows the enormous enthusiasm of the farmers and the need for loans. The banking sector supports the innovative use of satellite information and mobile device applications. The international breweries are highly interested in the outcomes of the pilot and are willing to cooperate on a large spatial scale when the pilot proves to be successful.
