E-Agriculture

Saleh Gashua

This member participated in the following Forums

Saleh Gashua
Saleh GashuaAfrican Rural and Agricultural Credit Association (AFRACA)Kenya

Hi Julie.
AFRACA in partnership with CTA is organizing a forum named Afraca Southern Africa Sub Regional (SACRAT) Workshop which is expected to bring together AFRACA member institutions, Development partners and other stakeholders within and outside the Continent. The forum will involve two days of critical discussions on Value Chain Finance - Functional Models; Focusing on Livestock Value Chains – emphasis on successful Livestock Insurance cases. The third day is slated for field visits to share practical livestock insurance experiences at work. May 19 - 21, 2013, Burgers Park Hotel, Pretoria, South Africa. Would you or any of the experts within reach be available to share experience on the theme ? Asante sana. (Thanks)

Saleh Gashua
Saleh GashuaAfrican Rural and Agricultural Credit Association (AFRACA)Kenya

To the contrary. MPESA is the cheapest form of transaction for small holders. In fact they constitute 60% - 70% of MPESA users mostly because its cheap to use and cellphone penetration is quite high - 30.8 million subscribers out of a population of 43 million. This is also evidenced by the increase in the profits of the Cooperative Bank of Kenya whose agency banking model using MPESA caters for a majority of the small holders. Therefore to say that MPESA is expensive for small holders is a gross misrepresentation.

Saleh Gashua
Saleh GashuaAfrican Rural and Agricultural Credit Association (AFRACA)Kenya

From Afraca perspective, the key actors/stakeholders in agricultural and rural finance are it's membership base which include but not limited to Central Banks ( Regulators), Commercial Banks, Development/Agricultural Banks, Microfinance Banks/Institutions (service providers) and other Institutions involved in promoting or providing rural and agricultural financial services especially to bottom of the pyramid communities/actors.Many Afraca members have significantly expanded their outreach at greatly reduced cost by the use of ICT to disburse credit and collect repayments, provide extension services, market information/linkages and weather information among others. The potential of using ICT are huge and remain untapped among many Afraca members. However, With support from development partners in the areas of capacity building, infrastructure partining adoption and use of ICT to provide the required services, the agricultural financial inclusion campaign would be grately accelerated.

Saleh Gashua
Saleh GashuaAfrican Rural and Agricultural Credit Association (AFRACA)Kenya

Statistics show that 60 – 70% of the population in Sub Saharan Africa live in rural areas, majority of who are engaged in agricultuture.

Sadly, most of this population does not have access to formal financial services. With the recent breakthroughs in ICT, there has now been an increased role of ICT technologies to improve access to rural & agricultural financial services.

It worth noting that a number of AFRACA member intuitions, especially in Eastern Africa, have made significant inroads in the use of Mobile technology in improving access to agricultural financial services, and in particular regarding lending and payments transactions. Some examples include:-

  • Mobile payment systems for farmer savings through mobile money platforms
  • Micro (Agri) insurance systems linked to farmer outputs and marketing activities
  • Micro lending platform

The potential impacts of embracing the use of ICT in the provision of rural/agricultural services include:-

  • Reduced transaction costs to both lenders and borrowers.
  • Better Farmer profiling systems for agricultural credit
  • Improved farmer access to credit and financial services (due to credit history, better productivity and income profiling, access to information)
  • Improved access to credit for farmers and other rural populations.
  • Greater protection for farmers in times of bad weather or disaster.