SAP and GIZ: Digital Financial Services in the Agricultural Sector · 2016-05-05 · Page 2 1. GIZ...

SAP and GIZ: Digital Financial Services in

the Agricultural Sector

Lara Chhatwal

Agricultural and Rural

Finance Programme

GIZ Uganda

1. GIZ – SAP Projects in Uganda:

Uganda Coffee Farmers Alliance (UCFA)

• coffee farmer organization

• system adaptation, IT training and support in the field

• 24 smartphones, 13,000 farmers registered (2016)

Ugacof

• coffee exporter

• IT support, agricultural trainings, financial literacy

• 19 smartphones, 10,000 farmers registered (ongoing)

Gulu Agriculture Development Company (GADC)

• cotton, sesame, sunflower, chili buyer

• system adaptation to sesame, IT support, agricultural trainings

• 10 smartphones, 5,350 farmers registered (2015)

Lara Chhatwal, GIZ Uganda, [email protected]

2. Starting point: Value chain management

Production Processing Trade Export


Multi-level system setup

Exporter

Exporter

Bulking Station

Producer Organization


Farmer

Farmer

Farmer

Farmer


Bulking Station

Bulking Station


The Process


Data Entry

• Registration of Farmers & Deliveries

• Processing & Logistics

• Bulking & Sale

Payments

• Direct

• Digital (Mobile Money)

Data Aggregation & Analysis

3. Integrating additional functionalities

Production Processing Trade Export

Financial Services Access to Inputs

Agricultural

Extension Services Certification

(Traceability)


Access to Financial Services for Smallholders

• 500,000 smallholder coffee farmers in Uganda

• 50% sell coffee to “middlemen”, many of them “pre-

sell”:

close, fast and convenient to cover immediate cash

needs

far below the market price of mature coffee

equivalent to monthly interest rates of up to 139%

damage to trees, cheating, theft, pressure and

control, delayed payments

• Possible Solutions:

access to formal financial services for productive

purposes

financial literacy to raise awareness


Digital Financial Services for Smallholder Coffee

Farmers in Uganda

• Co-funding: FSD Africa & GIZ AGRUFIN, 2015-2017

• Aim: To develop accessible, low cost, transparent, scalable and fair loan

products for productive purposes for UCFA and Ugacof farmers

• Working with formal financial institutions

• Using data as income history to facilitate efficient credit assessment

• Mobile banking

• Financial Literacy Trainings for 24,000 farmers

Large-scale project with SAP and other Partners in Africa

• Leverage ICT to strengthen smallholder farmers as entrepreneurs

• Private-sector driven

• Enhancing functionalities of Rural Sourcing Management

4. Way Forward

Digital Services

Agriculture

Access to Finance

Farmers

as

entre-

preneurs


Thank you for your attention.

SAP and GIZ: Digital Financial Services in the Agricultural Sector · 2016-05-05 · Page 2 1. GIZ...

Documents

Transcript of SAP and GIZ: Digital Financial Services in the Agricultural Sector · 2016-05-05 · Page 2 1. GIZ...