Publication: Digitization of Agribusiness Payments in Africa: Building a Ramp for Farmers’ Financial Inclusion and Participation in a Digital Economy
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2020-09
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2020-09
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This report aims to present the rationale for digitization of agribusiness payments in Sub-Saharan Africa (SSA), assess the current status of digitization using demand and supply-side data, and identify key actions that can help accelerate digitization. The report draws on an analysis of financial-inclusion data from the Global Findex database, a survey administered to select agribusinesses active in SSA (henceforth referred to as the Africa Agribusiness Payments Survey, or AAPS), and case studies of select agribusinesses that responded to this survey. The Findex data analysis leverages questions in the survey that identify whether the respondent had received payment against the sale of an agricultural good; how the payment was received, in cash or through a digital means, defined to include an account at a bank or non-bank financial institution, mobile money account, or a card, and, if an account holder, whether the account was opened to receive an agricultural payment. The AAPS was administered to purposefully selected agribusinesses active in SSA, with either a regional or national scope. Some firms were added to the survey since they were known to have an active digitization program, but this was not a requirement for inclusion in the survey.
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“World Bank. 2020. Digitization of Agribusiness Payments in Africa: Building a Ramp for Farmers’ Financial Inclusion and Participation in a Digital Economy. © World Bank. http://hdl.handle.net/10986/34669 License: CC BY 3.0 IGO.”
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Publication Digitization of Agribusiness Payments in Africa(World Bank, Washington, DC, 2020-09-24)This report aims to present the rationale for digitization of agribusiness payments in Sub-Saharan Africa (SSA), assess the current status of digitization using demand and supply-side data, and identify key actions that can help accelerate digitization. The report draws on an analysis of financial-inclusion data from the Global Findex database, a survey administered to select agribusinesses active in SSA (henceforth referred to as the Africa Agribusiness Payments Survey, or AAPS), and case studies of select agribusinesses that responded to this survey. The Findex data analysis leverages questions in the survey that identify whether the respondent had received payment against the sale of an agricultural good; how the payment was received, in cash or through a digital means, defined to include an account at a bank or non-bank financial institution, mobile money account, or a card, and, if an account holder, whether the account was opened to receive an agricultural payment. The AAPS was administered to purposefully selected agribusinesses active in SSA, with either a regional or national scope. Some firms were added to the survey since they were known to have an active digitization program, but this was not a requirement for inclusion in the survey.Publication Agribusiness and Innovation Systems in Africa(World Bank, 2009)The role of agriculture in sustainable development and poverty reduction for the vast majority of developing countries cannot be overemphasized. Forty-five percent of the developing world's population lives in households involved in agriculture, and twenty-seven percent in smallholder households, and most depend on agriculture for their livelihoods. The agricultural sector generates on average twenty-nine percent of gross domestic product (GDP), employs sixty-five percent of the labor force in agriculture-based countries, and is a key to generating overall growth. This book attempts to address these questions and challenges, by examining how agricultural innovation arises in four African countries, Ghana, Kenya, Tanzania, and Uganda, through agribusiness, public policies, and specific value chains for food staples, high value products, and livestock. Determinants of innovation are not viewed individually but within the context of a complex agricultural innovation system (AIS) involving many actors and interactions. The country reports are based on qualitative interviews with agribusiness representatives about their experiences in this area. The synthesis chapter preceding the country reports presents the main findings of the country reports, links common themes, and distills lessons learned.Publication Supporting Womens Agro-Enterprises in Africa with ICT(Washington, DC, 2015-02)A new generation of information and communication technologies (ICTs) is finding a small foothold among poor, small-scale farmers in developing countries. Even so, many barriers still prevent poor rural people from accessing, using, and benefiting from new ICT tools and platforms, and those barriers are arguably higher for rural women. The relationship between gender and agriculture has been studied intensively over the years, and many agricultural interventions now include gender as a crosscutting issue or mainstream gender throughout their operations. Studies of the relationship between gender and the use of ICTs in agriculture have started to appear only quite recently, however. The Africa Region of the World Bank views ICTs as potentially transformative technology for rural development and seeks to incorporate the use of ICTs throughout its portfolio of projects. The present study was designed to examine the feasibility of integrating ICTs into two large investment programs: the Irrigation Development and Support Project (IDSP) in Zambia and the Kenya Agricultural Productivity and Agribusiness Project (KAPAP). The specifi c goal was to examine how ICT-based interventions might be designed to strengthen women s participation in commodity value chains under the two projects.Publication COVID-19 and Digital Financial Inclusion in Africa(World Bank, Washington, DC, 2020-10)The COVID-19 (coronavirus) pandemic and resulting containment measures are likely to cause an economic contraction of about 2.8 percent in Sub-Saharan Africa (SSA) in 2020 according to the Global Economic Prospects. Among the many adverse effects in the global economy, the crisis is posing a deep threat to financial inclusion efforts globally. Lockdowns and curfews designed to curb the spread of the virus resulted in the closure of bank branches and halted operations of mobile money agents in compliance with restrictions. Government officials and health practitioners encouraged use of cashless and contactless modes of payment to reduce the risk of virus spread through handling of cash, thus creating new opportunities for potential adoption of Digital Financial Services (DFS). Small firms and low-income households can directly benefit from digital solutions such as mobile money services, online banking and other financial technology innovations. Recent evidence suggests that digital financial inclusion could significantly contribute to economic growth, reduce poverty and narrow income inequalities without necessarily causing adverse effects on financial stability given the appropriate regulatory framework. The brief focuses on the impact of COVID-19 on financial inclusion and the potential of robust policy responses. The authors drew on the Global Findex database to showcase policy options that harness maximum benefits from digital technology, promoting financial inclusion and mitigating adverse impacts during the pandemic and beyond. The poor and vulnerable groups, such as women, the rural poor and youth, are bearing the economic brunt of the socioeconomic consequences of the pandemic. Day laborers and those in the informal sector are also among the most affected categories of workers.Publication Agribusiness Indicators(World Bank, Washington, DC, 2012-12)Agriculture and agribusiness play an important role in the Zambian economy, contributing around 20 percent of gross domestic product (GDP) in recent years and about 12 percent of national export earnings. Agriculture employs nearly 70 percent of the labor force and remains the main source of income and employment for most of the people living in rural areas. The objective of the Zambia agribusiness indicators (ABI) country report is to examine factors that have affected agricultural productivity, market access, and the policy environment for agriculture in Zambia. This report presents findings of a data collection exercise carried out to compile a set of pilot ABI for Zambia. The pilot indicators presented are based on a review of the literature, government statistical bulletins, and primary interviews in the seed, fertilizer, mechanization, agricultural finance, and transport subsectors. The resulting indicators are presented in matrix form, together with notes indicating the specific data source (or sources) used for each indicator. A set of questionnaires was developed for this part of the exercise based on guidelines. Perception indicators on the quality of road infrastructure and other transport sector issues were added to supplement the checklist guidelines. The anticipated impact of the presentation of country performances will be to raise the competitiveness of African agriculture by bringing into sharper focus measures of how individual countries are transitioning towards a more commercial agriculture. This report consists of following seven chapters: chapter one gives introduction; chapter two presents access to and use of improved seed; chapter three focuses on fertilizer access and availability; chapter four focuses on access to farm machinery and tractor hire services; chapter five presents access to agricultural and agri-enterprise finance; chapter six gives cost and efficiency of transport in Zambia; and chapter seven presents policy and enabling environment for agribusiness development.
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