The session discussed innovative approaches for the delivery of affordable mobile phones to farmers by highlighting successful examples of delivery approaches.

The session explored innovative ways to increase affordable mobile phone ownership among smallholder farmers and vulnerable sections of the societies. The panelists undertook detailed discussion of learnings and outcomes of two key projects. One was a USAID-funded affordable mobile phones (AMP) project implemented in West Africa. This project helped rural agricultural communities in SRO USAID operative regions get access to digital services through AMP which are internet enabled smartphones provided under installment payment options. AMP provided access to important information and services to help improve the livelihoods of the target population. The other project was on boosting mobile phone ownership through three-wave training investment, implemented by Strategic Impact Advisors in Malawi to help farmers better understand the mobile money use cases beyond cash outs.

Panelists:

• Suzanne Sullivan from New Path

• Hamilton McNutt from Strategic Impact Advisors

Example 1: Measures taken under USAID-funded affordable mobile phones (AMP) project implemented by New Path

The AMP project helped agricultural communities (cooperatives, agricultural unions, women's organizations) to build community resilience by providing access to information, reducing vulnerabilities to food security, expanding livelihood opportunities and accessing financial products and services.

• Under the project, local partners used solar-powered mobile kiosks to market and sell the phones. These kiosks acted as a communications hub where beneficiaries could access Wi-Fi and charging points while also getting access to information.

Key Insights from the AMP project in West Africa:

• Almost 15% of purchasers were women.

• Most people, even in the most remote areas, have some level of access to e-money, either directly on their phone, or through a relative’s phone.

• Nearly half of the customers used solar power for electricity to charge their mobile phones.

• To ensure adoption, local partners undertake activities like continuous review and assessment of the network connectivity areas so that they can target customers appropriately and access information.

Example 2: Solution developed by Strategic Impact Advisors to overcome affordability and digital literacy issues

The project is specifically focused on improving digital literacy by training farmers on the multiple use cases of digital financial services, particularly mobile wallets. It was funded by Smoke Free World. SIA was the implementation partner for this project, and its other partners included two large tobacco cooperatives (NASFAM and MWANDAMA) and a telecommunications company in Malawi called TNM. On top of the training aspect, the solution providers worked with TNM to build a mobile money ecosystem in these specific geographies. They also worked with merchants in those areas to accept mobile payments.

Challenges:

• Affordability is the key barrier to owning a smartphone: Most farmers do not own smartphones. The majority of farmers in Malawi live on USD 4 or USD 5 a day. Buying a phone that costs 5–7% of a farmer’s annual revenue is not a sustainable option, especially in a price-sensitive market such as Malawi. This is more critical in the case of women.

• Digital literacy was found to be the second most common barrier.

Measures Undertaken: 

To mitigate the issue of affordability, a three-payment installment plan was devised for the farmers by the mobile phone company. The smart phones were distributed through the lead farmers of the farmer-based organizations. Collection of instalments was done at weekly or biweekly meetings. Strategic Advisors organised the structuring and training delivery.

Key insights on boosting mobile phone ownership in Malawi with a group of farmers:

• Bring affordability to the solutions: penetration of smartphones was increased from 50% to 85% amongst the farmer cohort that SIA partners worked with. The higher penetration is due to increased affordability and the availability of basic amenities in the phone-such as access to mobile money wallets, a torch and a couple of games.

• Focus solutions on farmer groups: For the success of such a program, the target group should understand the benefits of mobile ownership. Training to impart such knowledge to farmers becomes easier when they are a part of organised groups.

• Focus on bundled solutions under digital literacy programs: The literacy aspect of the programme helped drive demand for smartphones by showcasing additional features of the smartphones apart from sending and receiving digital money. These additional features include airtime top-up, bill payment, and payment for other services such as solar panels and solar home systems.

• Incorporate small operators or solution providers: Partners who have a smaller market share are more incentivized to try new customer acquisition strategies. In this case, TNM in Malawi is a small operator and has a small market share.

• Build in an element of trust: Trust between the telecom provider and farmers is important to ensure increased uptake of the program.