Why Invest in ICTs for Agriculture?

"With the ability to reach many farmers with timely and accessible content, the use of information and communication technologies (ICTs) for agriculture (ICT4Ag) has the potential to transform farming and food production, worldwide."

The Technical Centre for Agricultural and Rural Cooperation (CTA),  joint international institution of the African, Caribbean and Pacific (ACP) Group of States and the European Union (EU), presents case studies and examples of ICT4AG initiatives from Asia, the Caribbean, and sub-Saharan Africa to describe: 1) how it works to drive economic development; 2) what ongoing financing might be for ICT4Ag initiatives after initial funding; 3) what the constraints exist for widespread adoption, 4) how cross-sectoral partnerships (CSP)s can deliver ICT4Ag solutions; and 5) a framework for CSP investors.

World food demand presents opportunities for innovation  in agriculture using ICTs such as:  "SMS [text message] applications, mobile banking and satellite data” providing, for instance, "access to farm mapping and weather data, marketing tools, financial credit and advice from extension workers." Obstacles include a shortage of infrastructure, financing, management and technical skills and structures of sustainable business models. Opportunities exist in "rolling out of  farm management software solutions in rural areas..., ICT solutions that address post-harvest losses and reduce wastage; data analysis software that helps both large and small-scale farmers understand their data; affordable technologies for remote sensing; and the extension of  3G networks to rural areas in order to facilitate increased access to ICT4Ag."

The first chapter "highlights the outputs, outcomes, impact, as well as general evidence that has emerged from the development, introduction, use and adoption of ICTs for agriculture-related tools...within ACP countries..." using a value chain analysis and modified PESTEL approach to consider each country's political and economic situation, cultural determinants affecting markets, emergent tech innovation, legislative regulation and environmental concerns. Ghana's analysis includes their 5th rolling ICT4 Agricultural Development plan 2019-2022 which has created an enabling environment for for example, donor driven investment and start-ups such as Farmerline, as well as hackathons in ICT4Ag-related products and services.  Rwanda has its National ICT Strategy and Plan (NICI, 2015), with the goal of creating ‘a knowledge-based economy’. Its enabling environment includes incentives such as tax reliefs and policies for both the company, agriculture related actors, and communities. "Community ICT centres and logistics have been established in many provinces of the country.... In summary, the policy document’s vision for 2020 identifies six interwoven pillars, including good governance and an efficient state, skilled human capital, a vibrant private sector, world-class physical infrastructure and modern agriculture and livestock, all geared towards national, regional and global markets." Tanzania simliarly gives tax leverages and provides other incentives, such as the building of community information centres with implementing partners. In the Caribbean, Dominica, Grenada and St. Kitts and Nevis have invested in ICT infrastructure. Globally, public-private partnerships (PPP) in ICT4D have been launched in, for example, Bangladesh, Ghana, Jamaica, Kenya, Rwanda, South Africa, Tanzania and Trinidad and Tobago. Capacity building and empowerment training for farmers and extension staff has increased with donor organisation spearheading and partnerships such as the Grameen Foundation and Mastercard Foundation. Ensibuuko-Uganda provides micro-finance management systems; FarmDrive-Kenya connects borrowers with loans through mobile technology; iCow-Kenya provides a fertility and gestation calendar for livestock; mFisheries West Indies uses a smart phone to offer fishermen eweather reports, navigational tools, training tips and first aid and emergency boat repair, as well as marketing tools;  Vodafone Connected Farmers India offers market access, field audits, payment and loan services, and information services; and The Yunus Foundation Mumbai offers microloans and micro insurance.

Chapter 2 offers information supporting 'for profit' models of ICT4Ag development as more often sustainable and scalable in enhancing farm productivity, accessing markets and value chains, and improving service provision. Further, it discusses potential investment areas such as:

• food product traceability, for example, Horticulture Traceability System by Feed the Future makes use of  QR codes to identify individual smallholder farmers’ produce;
• solutions for reducing post-harvest losses, for example, Chowberry in Nigeria, that helps retailers sell products that are about to expire;
• remote sensing, for example, National Remote Sensing Centre, India, that  monitors drought, tailors agronomic practices, and designs demand-based irrigation scheduling;
• artificial intelligence and robotics, for example,  for monitoring crop conditions, plant populations and soil moisture content, crop health monitoring, crop spraying using drones, facial recognition of  cows, and crop harvesting; and
• human resource and entrepreneurship including viable business model designing,  Apps4Ag database development, and identifying and promoting apps ready for scaling up.

Chapter three uses data analysis to present information on sustainability and scaling; limits of knowledge on design, use, adoption, and management of ICTs; high costs of ICT technologies relative to developing economies, weak institutions and inadequate collaboration and awareness of ICT, and inadequate policies and regulation.

Chapter four introduces a three-step framework for investment recommended for pre-project, project formulation, and project implementation:

1. "Feasibility study, research and analysis;
2. Formation of  CSPs with selected agricultural actors and integration of  the ICT4Ag initiative into internal operations of  all relevant entities, including agribusinesses, mobile network operators (MNOs), financial institutions, and local technology solution providers; and
3. Implementation of  ICT4Ag into payment systems, marketing, agriculture extension, supply chain management and other programmes by way of  awareness raising and training for agribusinesses, farmers and other stakeholders."

The chapter discusses structure of CSPs with examples such as Mercy Corps’ AgriFin Accelerate (AFA), a highly structured approach including market research, bundled ICT4Ag functionalities, and farmer training. The types of investors discussed include agribusiness, cooperatives, technology solution providers, Venture/social capital investor, and financial institutions.