AFCW3 Economic Update, Spring 2019 : Digitizing Agriculture - Evidence from E-Voucher programs in Mali, Chad, Niger, and Guinea
The agricultural sector is a significant contributor to the economies of Guinea, Mali and Niger. In terms of share of GDP, agriculture represents 16 percent, 38 percent, and 40 percent respectively. It is also a primary source of employment for mos...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/915401555082222586/Digitizing-Agriculture-Evidence-from-E-Voucher-programs-in-Mali-Chad-Niger-and-Guinea http://hdl.handle.net/10986/31576 |
| Summary: | The agricultural sector is a significant
contributor to the economies of Guinea, Mali and Niger. In
terms of share of GDP, agriculture represents 16 percent, 38
percent, and 40 percent respectively. It is also a primary
source of employment for most of the population (68 percent,
57 percent, and 75 percent respectively). Unfortunately,
such critical sector is characterized by low yields due to
low input use and quality. The International Fertilizer
Development Center (IFDC)estimated the average cereal yields
to be 1.6 metric tons per hectare in 2014 in Mali, which is
above the sub-Saharan average (1 metric ton/ha) but well
below potential yields. With a majority of their land area
lying in semi-arid and arid zones of the Sahel and the
Sahara desert, increasingly frequent crises arising from the
Sahel region’s high vulnerability to climate
change--characterized by recurrent extreme weather events
such as floods and droughts—low productivity has adverse
effects on farmers’ incomes and undermines household food
security. Hence the main articlein the present volume is
devoted to the innovative effort of introducing e-vouchers
schemes, supported by digital means, in Guinea, Mali and
Niger. The e-voucher program is built around three key
components: a digital platform for SMS messages, a reliable
database of electronically-registered farmers in selected
regions, and a directory of agro-dealers. In so doing,
fertilizers (or seeds) distribution becomes transparent,
ensures high quality and as it unfolds, fosters private
sector participation. Based on pilot practices in the
sub-region, four major lessons are learned. First, targeting
is a key determinant of scope and success. In general,
targeting depends on the main objective of the program:
either poverty reduction, which would aim at farmers located
at the lowest deciles of the income distribution, or
agricultural productivity, which would also aim at those
located a few deciles above. A clear decision in this regard
should be taken upfront. Second, in rural populations with
high levels of illiteracy, digital technologies should be
adapted to their needs, with voice messaging working better
than SMS messages. Third, effectiveness of these programs
relies on the efficiency of public procurement. In many
cases, delays in timely providing agricultural input result
from bottlenecks at the procurement stage. As AFCW3
governments become strongly involved in upscaling these
approaches, it is my hope that this report will provide
further insights to help them in their successful implementation. |
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