How Technology is Fighting Global Poverty: 5 Key Innovations
Poverty is one of the most persistent challenges facing the world today. Despite numerous efforts by governments, non-profits, and international organizations, billions of people still live in poverty. Learn about five technological innovations that are helping people change their lives.
Technology is a powerful tool in the fight against global poverty because it can deliver scalable, efficient, and innovative solutions. In 2019, TechnoServe founded TechnoServe Labs to advance the application of technology in scaling impact across our projects. Split between Silicon Valley in the U.S. and Kigali, Rwanda, this initiative collaborates with university, corporate, and non-profit partners to identify, test, and implement solutions that can transform the lives of millions of hardworking people across the developing world.
Learn about five key technological innovations that have shown remarkable promise in reducing poverty:
- Geospatial technology
- Artificial intelligence and machine learning
- Supply chain traceability
- Fintech solutions
- Distance learning
Each technology offers unique advantages and has demonstrated a significant impact in various TechnoServe projects worldwide. Let’s explore how these technologies are improving the lives of smallholder farmers and entrepreneurs across Africa, Asia, and Latin America.
1. Geospatial Technology: Mapping the Path to Prosperity
Geospatial technology, including satellite imagery, GPS, and geographic information systems (GIS), has emerged as a game-changer in agricultural development and poverty reduction efforts. Geospatial technology enables more informed decision-making and targeted interventions by providing accurate, up-to-date information about land use, crop health, and environmental conditions.
Smallholder Crop Mapping
Smallholder crop mapping is one of the most impactful applications of geospatial technology in TechnoServe Labs’ work. In West Africa, using satellite imagery and machine learning algorithms that interpret the imagery, coupled with field data, we’ve been able to:
- Identify and map cashew- and mango-growing areas
- Estimate crop yields and production volumes
- Target interventions and support to areas with the greatest need or potential
This information has been invaluable for both farmers and policymakers. It will lead to more strategic investments in the cashew and mango sectors and help smallholders access better support and markets.
Aquaculture Mapping
Beyond traditional crops, geospatial technology is also revolutionizing aquaculture. In Côte d’Ivoire, as part of the U.S. Department of Agriculture’s Food for Progress-funded AMPPLIFY project, we employ satellite imagery and GIS tools to map and assess aquaculture sites. Researchers at Stanford University are adapting geospatial approaches used to map aquaculture ponds in Kenya to map aquaculture sites in Côte d’Ivoire.
Governments throughout Africa aim to enhance the availability of locally sourced protein in their citizens’ diets, and aquaculture is an obvious and cost-effective option. Having a clear understanding of where aquaculture sites are expanding will allow government agencies to plan for regional investments in training and aquaculture supply infrastructure.
Additional Applications
The potential of geospatial technology extends far beyond these examples. Other applications that show promise in poverty reduction efforts include:
- Monitoring deforestation and developing projects for carbon sequestration
- Tracking climate change impacts and helping communities adapt
- Improving infrastructure planning in rural areas
As geospatial technology advances and becomes more accessible, its role in poverty reduction strategies is likely to grow even further.
2. Artificial Intelligence and Machine Learning: Smart Solutions for Smallholders
Artificial intelligence (AI) and machine learning (ML) are no longer just buzzwords in Silicon Valley—they’re becoming powerful tools in the fight against poverty. These technologies can process vast amounts of data, identify patterns, and make predictions that would be impossible for humans alone. At TechnoServe Labs, we’re leveraging AI and ML in several innovative ways to support smallholder farmers and entrepreneurs.
Soil Quality and Fertilization Reference Tool
In Honduras, we’ve piloted a machine learning-powered tool to help smallholder coffee farmers optimize their soil management practices. This tool will:
- Use soil analyses at nearby larger farms to predict soil analyses on smaller farms that cannot afford expensive lab soil analyses
- Provide personalized recommendations for soil improvement and fertilization
- Help farmers increase yields while reducing costs and environmental impact
With machine learning technology, we hope to provide smallholder farms with the same data-driven analysis enjoyed by their larger, wealthier neighbors.
Coffee Cherry Ripeness Measurement
Another exciting application of AI in our work is a mobile app that measures coffee cherry ripeness. This capability is available for large commercial farms that can afford optical high-volume cherry processors but not for smallholders. We intend to democratize ripeness evaluation with an innovative tool that:
- Allows farmers to take photos of their coffee cherries using a smartphone
- Uses AI algorithms to analyze the color and texture of the cherries
- Provides instant feedback on the mix of ripe, unripe, and overripe cherry
This technology provides farmers with real-time objective feedback to help them harvest their coffee at the optimal time. This improves coffee quality and increases the value farmers can obtain for their crops. It’s a perfect example of how AI can bridge the knowledge gap and empower smallholders with expert-level insights.
Future Potential
The applications of AI and ML in poverty reduction are vast and still largely untapped. Some promising areas for future development include:
- Pest and disease detection in crops
- Predictive analytics for market prices
- Personalized financial advice for small businesses
- Optimizing logistics and transportation for rural products
As these technologies continue to evolve and become more accessible, they have the potential to level the playing field for smallholder farmers and entrepreneurs globally.
3. Ensuring Sustainable Production—EUDR Compliance
The European Union Deforestation Regulation (EUDR) will impact millions of smallholder producers globally, particularly in the coffee and cocoa sectors. Compliance requires proof that products were produced on land not deforested after December 31, 2020. While the EU recently delayed implementation until 2025, diligent effort will be needed to ensure that the new regulations do not harm smallholders.
TechnoServe Labs designed the TerraTrac app to provide cooperatives, aggregators, and others buying coffee from smallholders the necessary tools to meet these stringent requirements:
- A simple application to map farm locations—either farm boundaries or farm latitude/longitude, depending on the farm size.
- An interface to allow buyers to upload a list of farms and determine which may be at risk of being in non-compliant, deforested areas.
TechnoServe Labs is working with the Linux Foundation Agstack program to create a large consortium of government, public, and private partners to improve these tools and lower the cost of EUDR compliance.
4. Fintech: Bringing Financial Services to the Unbanked
Access to financial services is a critical factor in economic development and poverty reduction. However, traditional banking infrastructure often fails to reach rural and low-income communities. This is where financial technology, or fintech, comes into play. TechnoServe Labs is leveraging fintech solutions to bridge this gap and provide crucial financial services to underserved populations.
DreamSave App
One of our most successful fintech initiatives is the DreamSave app, which digitizes the financial records of Village Savings and Loan Associations (VSLAs). These community-based savings groups are vital financial institutions in many rural areas but often lack formal record-keeping systems. The DreamSave app:
- Digitizes financial records of VSLAs
- Provides a user-friendly interface for members to track savings and loans
- Enhances transparency and reduces the risk of errors or fraud
By bringing these informal financial groups into the digital age, we provide a digital record of individual and group credit history, creating a pathway to connect individuals and groups to the formal banking sector.
Other Fintech Innovations
Beyond the DreamSave app, several other promising fintech applications can contribute to poverty reduction:
- Mobile Banking: Smartphone-based banking services can provide basic financial services to people in remote areas without physical bank branches.
- Microlending Platforms: Peer-to-peer lending apps can connect small entrepreneurs with lenders, providing access to capital for business growth.
- Crop Insurance: Mobile-based crop insurance programs can help smallholder farmers manage risk and recover from crop failures.
- Financial Literacy Apps: Interactive mobile applications can provide education on budgeting, saving, and financial planning.
Impact of Fintech on Poverty Reduction
The integration of fintech solutions into poverty reduction strategies has several key benefits:
- Financial Inclusion: By providing access to basic financial services, fintech helps bring the unbanked into the formal economy.
- Economic Empowerment: Access to savings, credit, and insurance allows individuals and small businesses to invest in their futures.
- Reduced Vulnerability: Digital financial services can help families better manage financial shocks and emergencies.
- Increased Efficiency: Digital transactions reduce costs and increase the speed of financial services.
- Data-Driven Decision-Making: Digital financial records provide valuable insights for users and policymakers.
As fintech continues to evolve, its potential to drive financial inclusion and economic growth in developing regions is immense. By staying at the forefront of these innovations, we can create more opportunities for individuals and communities to build financial resilience and escape poverty.
5. Distance Learning: Educating for Empowerment
Education and skills development are fundamental to breaking the cycle of poverty. However, traditional educational models often struggle to reach remote or underserved communities. This is where distance learning approaches, coupled with the rapid growth of smartphone availability in developing countries, can make a significant difference. At TechnoServe Labs, we’re embracing these innovative learning methods to extend our reach and impact.
Remote Learning Initiatives
Our remote learning programs leverage digital technologies to deliver high-quality education and training to individuals who might otherwise lack access. Some key features of our approach include:
- Online courses: We’ve developed a range of online courses covering topics from agricultural best practices to business management skills.
- Mobile learning apps: Smartphone applications allow learners to access educational content even in areas with limited internet connectivity.
- Virtual mentoring: Digital platforms enable remote mentoring sessions, connecting learners with experienced professionals.
- Interactive webinars: Live online sessions facilitate real-time interaction between instructors and learners.
Blended Learning Approach
While fully remote learning has its advantages, we’ve found that a blended approach— combining online and in-person elements—often yields the best results. Our blended learning programs typically involve:
- Self-paced online modules: Learners can access foundational content at their own pace.
- Virtual group sessions: Regular online meetings allow for collaborative learning and discussion.
- In-person workshops: Periodic face-to-face sessions provide hands-on practice and deeper engagement.
Impact on Poverty Reduction
The implementation of remote and blended learning strategies has several significant impacts on our poverty reduction efforts:
- Increased reach: We can now deliver training and education to individuals in remote areas who were previously unreachable.
- Cost-effectiveness: Digital delivery reduces the costs associated with traditional training methods, allowing us to serve more people with our resources.
- Flexibility: Learners can access content at times that fit their schedules, making education more accessible for working adults.
- Customization: Digital platforms allow us to tailor content to individual needs and learning styles.
- Continuous Learning: Online resources provide ongoing education and skill development opportunities beyond formal training periods.
Harnessing Technology for a Poverty-Free Future
The intersection of technology and poverty reduction represents one of the most promising frontiers in the fight against global inequality. By continuing to innovate, adapt, and scale these technologies, we can create a world where everyone has the opportunity to build a better life.
FAQs
What’s on your mind?
Can technology help solve global poverty?
Technology can be a powerful tool in addressing global poverty, but it’s not a standalone solution. TechnoServe Labs’ experience shows that when applied thoughtfully and in conjunction with other interventions, technology can significantly contribute to poverty reduction. It increases access to information, improves productivity, creates new economic opportunities, and enhances the delivery of essential services.
How does fintech promote financial inclusion in low-income communities?
TechnoServe Labs has made access to finance a cornerstone of its development approach. 84% of its programs include financial access components and 46% implement tech-enabled financial solutions. Recently, TechnoServe Labs developed a framework for thinking about financial technology solutions within the context of the organization’s programs.
What role does EdTech play in poverty alleviation?
EdTech contributes to poverty alleviation by expanding access to quality education in remote and underserved areas and providing skills training for better employment opportunities. TechnoServe Labs has utilized EdTech solutions to deliver business training to entrepreneurs across Africa, Asia, and Latin America, helping them acquire the skills needed to grow their businesses and create jobs in their communities.
