Panama City, 15 Oct. - (ANA) - More than 32,000 rural households in Bangladesh, Bolivia, El Salvador, Guatemala, Honduras and Peru are now using digital solutions developed by 15 tech startups to access markets and financial services, manage crops, trace their products and adopt more sustainable agricultural practices.

 

These are the results of Innovatech 2.0, an initiative supporting the transformation of rural economies. By developing new digital tools tailored to the needs of small-scale agricultural producers, the programme is driving economic growth, strengthening food security and helping society adapt to climate change.

 

Funded by the International Fund for Agricultural Development (IFAD) and the European Union and implemented by the German Sparkassenstiftung for International Cooperation (DSIK), Innovatech 2.0 connected emerging technology companies with 811 rural organizations between 2024 and 2026, creating opportunities for small-scale producers to increase their productivity, strengthen their businesses and become better prepared for climate change. Nearly 17,000 women, more than 11,300 young people and 8,300 Indigenous Peoples participated in the programme.

 

“Building ecosystems where technology companies, producer organizations and development institutions work together is strategic to transforming rural economies. When innovation and investment reach the first mile of food systems, small-scale producers can create new opportunities, access markets and participate on better terms in an increasingly connected economy,” said Rocío Medina Bolívar, IFAD Regional Director for Latin America and the Caribbean.

 

Innovatech 2.0 identified the needs of producer organizations and supported technology companies in adapting their digital tools to the challenges faced by producers. The solutions implemented included platforms connecting producers with buyers; tools for crop management, data and traceability; savings and financing services tailored to small-scale producers; digital training platforms; and new technologies applied to agrifood value chains.

 

In Honduras, the startup Terra Kaape Digital supported the digitalization of the Amigos Unidos San Isidro Rural Savings and Credit Association (CRACAUSI), improving its accounting, administrative and financial management. The new tool makes it easier to record savings, contributions and loans.

 

“Thanks to Innovatech, we now have a system that has allowed us to digitalize transactions and makes our work easier. We can now process a transaction and immediately provide account statements, which builds greater trust among our members,” explained Reyna Medina, President of CRACAUSI.

 

Sustainability and resilience were cross-cutting priorities of the programme: two out of every three participating producer organizations implemented agroecological practices, including the use of bio-inputs, sustainable soil management and efficient water use.

 

“Rural areas do not need technology for technology's sake. They need solutions that address a specific problem, work under the real conditions faced by producers and remain relevant after the project ends. At Innovatech, we start with demand and then bring startups and producers together so that solutions are adapted to the people who will actually use them,” said Christina Olsen, Director of Innovatech.

 

 

 

 

 

Following its first edition in Latin America and the Caribbean between 2021 and 2023, Innovatech 2.0 expanded to Bangladesh for the first time.

 

“Innovatech has demonstrated that this model can be adapted to very different production and technological contexts, from Latin America and the Caribbean to Asia and the Pacific, while delivering tangible results on the ground. The next step is to scale it up and explore ways to establish it as a long-term financing mechanism that can continue connecting innovation, the private sector and rural development in more countries,” said Enrique Hennings, IFAD Lead Global Technical Specialist for ICT for Development.

 

Across both editions, around 30 emerging technology companies adapted their digital solutions to the needs of rural communities. These tools have been used by more than 1,000 producer organizations and have had a positive impact on more than 50,000 rural households, connecting producers with markets and financial services while encouraging the adoption of sustainable agricultural practices.   - (ANA) -

 

AB/ANA/16 October 2026 - - -