Connecting farmers to consumers
through a social buying app

Smallholder farmers in Ethiopia often face low income due to limited market access, price fluctuations and intermediaries taking a significant portion of the profits. Furthermore, smallholder farmers in Ethiopia often struggle to access wider markets due to logistical challenges, lack of infrastructure and limited resources for marketing and distribution. At the same time, the cost of food increased rapidly in the East African country. Many Ethiopians, particularly in urban areas, struggle with the high prices.

By connecting consumers directly with farmers, eliminating intermediaries and additional markups, the start-up ChipChip addresses the challenges of low farmer incomes and high food prices. The company, which was founded by German entrepreneurs, directly acquires the agricultural products from local farmers. Through a user-friendly mobile application for Android and iOS, which was developed with the support of Invest for Jobs, customers can directly order their groceries for a competitive price. In their own warehouse ChipChip will then pack the orders and deliver them directly to the customers; an app automatically calculates the most efficient routes for the drivers. The goal of the young company is to create a positive impact on local communities by generating job opportunities in app development, farming, logistics, quality control and delivery services.

One of the key aspects of ChipChip is its innovative social buying model: the more you buy, the cheaper the price. This social buying approach incentivises individuals to make group purchases with friends, neighbours or office colleagues. Furthermore, it also allows smallholder farmers and their cooperatives to directly sell their products in larger amounts to end customers. This social buying model is inspired by the Ethiopian "Kircha" system: neighbours buy together an Oxen which they will eat on holidays.

Since its launch in Ethiopia in mid-October 2023, ChipChip has already sourced over 29 types of high-quality fruits and vegetables produced locally. After just five months of operations, the platform has achieved remarkable success, processing over 1,000 orders per day and linking approximately 80 tons of farm produce with consumers each month. This impressive growth demonstrates the increasing popularity and demand for ChipChip's convenient approach to food delivery.

Invest for Jobs supports ChipChip, among other things, in developing the app, expansion of the warehouse and training of farmers on how to use the app; Partners in Transformation supports the implementation of the project.

As of June 2024, 80 good jobs have already been created through this collaboration with Invest for Jobs in the areas of mobile application development, customer support, logistics and delivery services. By June 2025, this number should rise to at least 400 good jobs.

Looking ahead, ChipChip envisions itself as the leading East-African social e-commerce platform. By uplifting agricultural livelihoods, enhancing food security and creating income opportunities, the company aims to establish itself as a key player in the region. Through its innovative approach and commitment to social impact, the platform seeks to transform the way food is bought and sold while contributing to sustainable agricultural practices and economic growth across Eastern Africa.

Djoubi GmbH, the international partner of ChipChip, is supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH within the framework of the Special Initiative “Decent Work for a Just Transition” and Partners in Transformation on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).