Digital tools reach 32,000 rural households across six countries through Innovatech 2.0

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, according to a joint press release issued by International Fund for Agricultural Development (IFAD) and German Sparkassenstiftung for International Cooperation (DSIK) on 14 October 2026 in Panama City. The outcomes stem from Innovatech 2.0, an initiative supporting the transformation of rural economies. By developing new digital tools tailored to small-scale agricultural producers, the program is driving economic growth, strengthening food security and helping society adapt to climate change.

Innovatech 2.0 is funded by the International Fund for Agricultural Development (IFAD) and the European Union and implemented by the German Sparkassenstiftung for International Cooperation (DSIK). Between 2024 and 2026, it connected emerging technology companies with 811 rural organizations. The effort created opportunities for small-scale producers to raise productivity, strengthen their businesses and prepare for climate change. Nearly 17,000 women, more than 11,300 young people and 8,300 Indigenous Peoples took part in the program.

The initiative identified the needs of producer organizations and supported technology companies in adapting their digital tools accordingly. Solutions 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. Sustainability and resilience were cross-cutting priorities, with two out of every three participating producer organizations implementing agroecological practices, including bio-inputs, sustainable soil management and efficient water use. 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.

“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.

Reyna Medina, President of CRACAUSI, noted that the new tool has allowed digitalized transactions and immediate account statements, building greater trust among members. Christina Olsen, Director of Innovatech, emphasized that rural areas need solutions adapted to real conditions and the people who will use them.

Following its first edition in Latin America and the Caribbean between 2021 and 2023, Innovatech 2.0 expanded to Bangladesh for the first time. 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. According to Enrique Hennings, IFAD Lead Global Technical Specialist for ICT for Development, the next step is to scale up the model and explore ways to establish it as a long-term financing mechanism.