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Agri-hire in sub-Saharan Africa

Business models for investing in sustainable mechanization










Houmy, K., Flores Rojas, M. and Side, C.2021. Agri-hire in sub-Saharan Africa – Business models for investing in sustainable mechanization. Rome, FAO. 




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    Book (series)
    Use of information and communications technology tools for tractor hire services in Africa
    Opportunities and challenges
    2020
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    This publication discusses the role information and communications technology (ICT) plays in agricultural mechanization, which has the potential to transform and improve smallholder agriculture in sub-Saharan Africa. Although mechanization levels tend to be low in African countries, there is still evidence of demand for mechanization services from smallholder farmers, especially tractor hire services. Where such demand exists, tractor owners have formed private hiring markets to provide the required services. The main challenge is related to high transaction costs – incurred by farmers due to information distortion concerning the availability of tractor hire services and how to access them, and by tractor owners due to the difficulties locating farmers in need of their services and aggregating demand over distant, scattered, smallholder farm plots. The use of ICT tools in tractor hire services may help solve some of these challenges. In recent years, many start-ups and companies have begun applying an ICT approach with the creation of a smart tractor network accessible via Short Message Services (SMS) or mobile phone applications, either directly or indirectly. This paper seeks to identify the benefits and challenges of such approaches by examining three ICT-based models in different African countries (Hello Tractor in Nigeria, Tinga Rentals Store in Kenya and TROTRO Tractor in Ghana).
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    Book (stand-alone)
    Empowering women farmers
    A mechanization catalogue for practitioners
    2022
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    Rural women across the world work along agri-food value chains performing numerous agricultural operations. Their work is increasingly affected by land degradation, climate change impacts, and out-migration. It is often unrecognized, unqualified, and unpaid. Moreover, the traditional division of labor often relegates women to manual, time-consuming operations with high degrees of drudgery. The combination of family responsibilities and insufficient access to critical services, information, and technologies, affects women’s work burden and their potential for income generation. For example, fewer rights over land make it more difficult for women to access subsidies, finance, or mechanization. There are three ways in which sustainable mechanization can empower women and respond to their needs:
    • as customers of mechanization service providers - reducing their drudgery, and freeing up time for resting or opting for other social or economic activities;
    • as operators of machinery and equipment or staff of a mechanization hiring services business - offering their service to others to earn an income;
    • as entrepreneurs managing their own mechanization hiring services agribusiness - providing a service for other farmers and generating revenue.
    The goal of this catalogue is to promote and support women’s access to sustainable agricultural mechanization as operators and/or managers. It lists and provides information on market-tested machinery and equipment for crop production and post-harvest operations. This catalogue highlights the potential for smallholder farmers, including women, to earn an income via mechanization hire service. The information for each machine or equipment includes:
    • its function
    • its main features
    • what it is suitable for
    • its technical specifications (key features only)
    • where to buy
    • its pictures.
    The target audience includes extensionists, gender experts, agricultural engineers, government officials, donors, micro-finance institutions, and implementing partners seeking to:
    • promote inclusive agricultural mechanization interventions;
    • reduce women’s drudgery and improve the efficiency of tasks they perform;
    • address gender issues in agriculture;
    • support economic opportunities for women as entrepreneurs.
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    Brochure, flyer, fact-sheet
    Women leading mechanization hire services: An inspiring story from Chiti village, Nepal 2023
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    Nepal, a landlocked country known for its mountain peaks including Mount Everest — the world’s tallest peak, is home to Chiti village. Most households of Chiti village rely on agriculture and wage labour for their livelihoods. Rice, maize and wheat are the main staple crops. Farmers from the village would walk for more than two hours several times during the harvest seasons to process their grains at the nearest mill centre. To address this problem, 27 women formed the so-called mother’s group in 2015, with a simple yet powerful objective: to establish a mill and provide hire mechanization services to their community. Seven years later, the mill is still running and providing mechanization services to the community with an average net annual profit of about USD 1000. The group recovered the initial investment only three years after its creation. “The purpose behind establishing the mill was to provide services to the community rather than for business purposes” explained Ms Tiwari. The group either saves the profit from the mill or uses it for social development activities within the community. As an example, the group donated a portion of the profit to the community’s public school. This story of determined women in rural communities hopes to inspire others to collaborate, work together to solve their problems and be empowered.

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