Degas and Matsuo Institute Partner for Agricultural AI Project in Africa
Degas Co., headquartered in Shibuya, Tokyo, has recently announced its selection for the Ministry of Economy, Trade and Industry (METI) 2023 funding for the "Future-Oriented Co-Creation Project for Global South (Large-scale Demonstration – Non-ASEAN Countries)". This initiative and its primary funding of approximately 8.2 billion yen aim to bridge technology and agriculture by implementing a data-driven approach to farming in Ghana and Kenya. Working closely with the Matsuo Institute, known for its expertise in AI talent development, this project seeks to enhance decision-making in agriculture through AI-powered harvest predictions.
With a population of about 1.5 billion, approximately 60% of Africa’s labor force is engaged in agriculture. However, grain yields in Africa remain strikingly low at around 1,400kg per hectare compared to over 4,000kg in other developing countries. This disparity contributes to an annual funding gap of approximately $75 billion in the agricultural sector. One underlying issue is the lack of established methods for quantitatively assessing profitability and risks at the farm level, creating high barriers for financial institutions and insurance companies wishing to enter the market.
In the AI era, data is vital for creating value. However, Africa's agricultural sector struggles with the systematic acquisition and accumulation of primary data required for AI model training and operation. Reliance on satellite data and publicly available statistics is insufficient for accurately capturing individual farmers’ practices and yield. To address this gap, there is an urgent need to build operational frameworks for data retrieval.
The primary goal of this project is to establish a continuous operational strategy, from the design of data collection to the development of AI models. This approach aims to create a new business model in the Global South where data scarcity represents an untapped market potential.
Project Title: Future-Oriented Co-Creation Grant for Global South (Non-ASEAN Countries)
Project Name: Agricultural Data Infrastructure Building and AI Yield Prediction Technology
Countries of Implementation: Ghana, Kenya
Duration: April 1, 2026 - February 28, 2029 (3 years)
Funding Amount: Approximately 8.2 billion yen
The project will comprehensively facilitate all phases from planning and local preparations to implementation, AI model construction, operational evaluation, and training of local AI talent, all within three years. The ultimate vision is to establish a data infrastructure and AI product at a level accessible for investment decisions by Japanese financial institutions.
Degas has previous experience from its participation in the JICA DXLab, which involved the use of AI for agricultural insurance support in Ethiopia. The common challenge faced in past efforts was the separation of data retrieval operations from AI product development. This project distinguishes itself by integrating these elements for significant scale operations over the three-year subsidized period.
To build a data framework that enables investment decision-making by financial and insurance companies, long-term acquisition of primary data from tens of thousands of farms is critical. Initial phases require substantial upfront investments, with short-term profit recovery being a challenge. Government subsidy support will enable thorough verification on a sufficient scale and duration, establishing robust data and operational models fit for commercialization and courting significant investments.
Since its establishment in 2018, Degas has provided financing to over 85,000 small-scale farmers in Ghana, creating a solid farmer network and operational capability. In this demonstration project, Degas will leverage its existing infrastructure immediately.
Moreover, the Matsuo Institute, backer of the project, boasts a well-established practical AI talent development platform (GCI) supporting over 7,000 participants from 32 countries, facilitating the robust training of local AI engineers to ensure sustainable operations.
Through the establishment of a data foundation that quantitatively evaluates risks and profitability, this project will pave the way for Japanese financial institutions and insurance companies to enter Africa’s agricultural sector. Alongside the development of local AI talent in partnership with Matsuo Institute, the initiative aims to enhance operational sustainability and contribute to the creation of new industries utilizing insights derived from big data in the Global South, fostering opportunities for Japanese businesses to explore new international markets and generate employment in these regions.
Makihira Tokiya, Representative Director, Degas Co.:
"Having partnered with over 85,000 farmers across Africa, I am confident that the mismanagement of agricultural data is a significant barrier to financial access. Our strength lies in our ability to integrate data collection, AI model development, and practical implementation in previously uncharted areas. Together with the Matsuo Institute, we aim to lay the groundwork for Japanese financial and insurance companies to fully engage with Africa's immense market potential."
Toyohiro Matsuo, Technical Advisor, Matsuo Institute:
"The opportunities for AI to solve problems in Africa are substantial, particularly in agriculture, which is central to local economies yet under-documented. We propose to contribute to this effort by fostering local AI talent through internships, workshops, and sustained engagement in projects that drive business outcomes in Africa."
Matsuo Institute: Founded in association with the University of Tokyo's Matsuo-Iwasawa Lab, the Matsuo Institute aims to foster an ecosystem of innovation in academia, focusing on the development and implementation of academic research results to enhance industrial competitiveness in Japan.
Visit their website
Degas Co.:
Founded by Makihira Tokiya, Degas aims to dramatically change people’s lives through innovative services and technology development.
Visit our website
Degas Co.:
Email: [email protected]
1. World Bank, "Employment in agriculture (% of total employment)"
2. McKinsey & Company, "Winning in Africa's agricultural market" (2019)
3. World Bank, "Agricultural Productivity Growth in Africa"
4. African Development Bank (2025)
5. JICA DXLab, "AI-driven geospatial analytics for cost-effective crop cutting experiment in Ethiopian Insurance"
Background and Social Issues
With a population of about 1.5 billion, approximately 60% of Africa’s labor force is engaged in agriculture. However, grain yields in Africa remain strikingly low at around 1,400kg per hectare compared to over 4,000kg in other developing countries. This disparity contributes to an annual funding gap of approximately $75 billion in the agricultural sector. One underlying issue is the lack of established methods for quantitatively assessing profitability and risks at the farm level, creating high barriers for financial institutions and insurance companies wishing to enter the market.
In the AI era, data is vital for creating value. However, Africa's agricultural sector struggles with the systematic acquisition and accumulation of primary data required for AI model training and operation. Reliance on satellite data and publicly available statistics is insufficient for accurately capturing individual farmers’ practices and yield. To address this gap, there is an urgent need to build operational frameworks for data retrieval.
The primary goal of this project is to establish a continuous operational strategy, from the design of data collection to the development of AI models. This approach aims to create a new business model in the Global South where data scarcity represents an untapped market potential.
Overview of the Selected Project
Project Title: Future-Oriented Co-Creation Grant for Global South (Non-ASEAN Countries)
Project Name: Agricultural Data Infrastructure Building and AI Yield Prediction Technology
Countries of Implementation: Ghana, Kenya
Duration: April 1, 2026 - February 28, 2029 (3 years)
Funding Amount: Approximately 8.2 billion yen
Implementation Structure and Roles
- - Degas Co. (Lead Organization): Responsible for designing and constructing the primary data retrieval infrastructure for agricultural sectors, developing data pipelines, and collaborating with Japanese financial institutions for commercialization.
- - Degas Ghana Ltd.: Utilizes its existing farmer networks and local operational frameworks for implementing and managing primary data retrieval.
- - Matsuo Institute: Provides local internship opportunities for graduates of the Global Consumer Intelligence (GCI) program, conducts practical workshops, and oversees on-the-job training (OJT) through collaborative research projects.
Project Contents
The project will comprehensively facilitate all phases from planning and local preparations to implementation, AI model construction, operational evaluation, and training of local AI talent, all within three years. The ultimate vision is to establish a data infrastructure and AI product at a level accessible for investment decisions by Japanese financial institutions.
Differences from Similar Projects
Degas has previous experience from its participation in the JICA DXLab, which involved the use of AI for agricultural insurance support in Ethiopia. The common challenge faced in past efforts was the separation of data retrieval operations from AI product development. This project distinguishes itself by integrating these elements for significant scale operations over the three-year subsidized period.
Need for Government Support
To build a data framework that enables investment decision-making by financial and insurance companies, long-term acquisition of primary data from tens of thousands of farms is critical. Initial phases require substantial upfront investments, with short-term profit recovery being a challenge. Government subsidy support will enable thorough verification on a sufficient scale and duration, establishing robust data and operational models fit for commercialization and courting significant investments.
Company Strengths
Since its establishment in 2018, Degas has provided financing to over 85,000 small-scale farmers in Ghana, creating a solid farmer network and operational capability. In this demonstration project, Degas will leverage its existing infrastructure immediately.
Moreover, the Matsuo Institute, backer of the project, boasts a well-established practical AI talent development platform (GCI) supporting over 7,000 participants from 32 countries, facilitating the robust training of local AI engineers to ensure sustainable operations.
Project Significance and Social Impact
Through the establishment of a data foundation that quantitatively evaluates risks and profitability, this project will pave the way for Japanese financial institutions and insurance companies to enter Africa’s agricultural sector. Alongside the development of local AI talent in partnership with Matsuo Institute, the initiative aims to enhance operational sustainability and contribute to the creation of new industries utilizing insights derived from big data in the Global South, fostering opportunities for Japanese businesses to explore new international markets and generate employment in these regions.
Comments
Makihira Tokiya, Representative Director, Degas Co.:
"Having partnered with over 85,000 farmers across Africa, I am confident that the mismanagement of agricultural data is a significant barrier to financial access. Our strength lies in our ability to integrate data collection, AI model development, and practical implementation in previously uncharted areas. Together with the Matsuo Institute, we aim to lay the groundwork for Japanese financial and insurance companies to fully engage with Africa's immense market potential."
Toyohiro Matsuo, Technical Advisor, Matsuo Institute:
"The opportunities for AI to solve problems in Africa are substantial, particularly in agriculture, which is central to local economies yet under-documented. We propose to contribute to this effort by fostering local AI talent through internships, workshops, and sustained engagement in projects that drive business outcomes in Africa."
About the Organizations
Matsuo Institute: Founded in association with the University of Tokyo's Matsuo-Iwasawa Lab, the Matsuo Institute aims to foster an ecosystem of innovation in academia, focusing on the development and implementation of academic research results to enhance industrial competitiveness in Japan.
Visit their website
Degas Co.:
Founded by Makihira Tokiya, Degas aims to dramatically change people’s lives through innovative services and technology development.
Visit our website
For Inquiries
Degas Co.:
Email: [email protected]
References
1. World Bank, "Employment in agriculture (% of total employment)"
2. McKinsey & Company, "Winning in Africa's agricultural market" (2019)
3. World Bank, "Agricultural Productivity Growth in Africa"
4. African Development Bank (2025)
5. JICA DXLab, "AI-driven geospatial analytics for cost-effective crop cutting experiment in Ethiopian Insurance"
Topics Business Technology）
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