Impact of Agri-ProFocus on Farmer's entrepreneurship, Uganda

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Information about Impact of Agri-ProFocus on Farmer's entrepreneurship, Uganda

Published on October 15, 2014

Author: Gcazo14


1. Unraveling multi-stakeholder platforms and their impact on farmer entrepreneurs in Africa – Case studies from Uganda Noor Ali | Domenico Dentoni | Jos Bijman | Wageningen University

2. Overview  Setting the Scene – ‘where is the opportunity and why’  Conceptual Design – ‘what’  Technical Design – ‘How’  Results – ‘what did we achieve’  Conclusion & Further Steps – ‘what does it mean’

3. Research objectives Multi-stakeholder platforms Farm entrepreneurship 1 2  Describe distinguishing network structures, governance mechanisms and activities within Agri-ProFocus (APF).  Give insights on extent and pathways through which APF’s financial services via marketplace events impact farm entrepreneurs.  Develop testable propositions suggesting how the APF organisational structure relates to its impact on farm entrepreneurs. Further research Implications on how platform may need to be reorganised (if needed) to enhance impact

4. Research Strategies | methods & sources  Theoretical sampling  Triangulation of literature & data sources: APF, member orgs, farmers  Grounded theory approach APF personnel (4) Agri-Hub members (14) Farmers (32) Participants (12) -Local NGOs (04) -International NGOs (03) -Banks (03) -MFIs/SACCOs (02) -Government (01) -University (01) Non-Participants (14) Control (06) - D. of Programmes - N.F Uganda - Country coordinator - Asst. country coordinator 02 crops 02 regions 05 districts 10 FOs In-depth face to face interviews & observations Secondary documents – APF reports, plans NP: same FO as Ps but did not attend C: Neither connected to APF nor any member org

5. Results | What makes Agri-ProFocus different?  Multi-level network of multi-stakeholder platforms  Face to face interactions and their frequency  Online country level platforms  Involvement of local private sector  De-centralised decision making at Agri Hubs  Visible presence of network brokers

6. Results | Perspective of & impact on stakeholder organisations  Motivation to join Agri-Hub Uganda ● Networking and information sharing ● International NGOs – delivery of benefits to farmers, connectivity to farmer communities, advocacy of key issues ● Local NGOs – Capacity development of team, utilisation of shared resources ● Banks/MFIs – Marketing (increase of potential customer bases, product promotion), competitive edge Key message – Different motivating factors may be employed or accentuated within various stakeholder groups to boost their participation

7. Results | Impact of APF’s structure’s on stakeholder organisations Networking Information sharing Promotion & marketing Capacity building Multi level structure & private sector Online platforms Visible broker ‘One – stop shop’ Decision-making at the Agri-Hub level Regional ‘marketplace events’ International NGO Local NGO Commercial enterprises Other Propositions for further research

8. Results | Perspective of & impact on stakeholder organisations  Views on obstacles for farm-bank deals ● Banks accustomed to deal with bigger, commercial farms ● Reluctance to give loans to smallholder subsistence farmers and FOs because: ● Agriculture is inherently a high risk business ● FOs & farmers lack formal structures and documents ● Inaccessible due to distance and transportation costs ● Other factors : lower education level, older age etc. ● Strict and complicated requirements (also most reported by farmers!) ● Ignorance, misperception, mistrust, fear among farmers ● Lack of allocation in annual Ugandan budget (3.4 percent in 2013)

9. Results | Perspective of & impact on stakeholder organisations Banks/MFIs : - Accustomed to bigger farmers - Lack of awareness of stakeholder requirements - Reluctance - Complicated procedures - Who bears the risk? Smaller In distant/rural areas FOs and Farmers: - Mistrust, fear, misperceptions - Lack of awareness of bank requirements - Lack of formal structures Key message – Identification of a clear need by stakeholders to bring banks/MFIs closer to smallholders, while assist farmers to improve their individual and collective systems

10. Results | Impact of marketplace events on farm entrepreneurs APF’s planned impact pathway – Farmer organisations Invitation to selected cooperatives/ farmers’ groups to nominate representative farmers as participants (P) Attendance of selected participants in the agribusiness event Dissemination of knowledge from participant to non-participant farmers (NP) within respective cooperative/ group Individual and collective FO benefits Increase in awareness of banks, MFIs and loan procedures among participant farmers (P) Selected farmers different than rest -Socioeconomic Limited transfer of knowledge Positive but limited impact observed - 6 out of 10 FOs applied or plan to apply - No FO successful so far. - No individual farmer applied for loan Fear and lack of knowledge among NPs 1. Participants found more aware, less afraid than Non Participants 2. Participants socioeconomically very different than Non Participants

11. Results | Differences between Participants and Non-Participants Lack of awareness and fear: ‘Banks have a lot of requirements’ ‘ If I won’t pay, I will be arrested’ ‘ They will take away my land’ ‘ Their interest rates are very high’ ‘ Banks are located very far’ ‘ I don’t know enough about banks’ 8 Strict/complicated requirements Fear of punishment Reluctance of banks Lack of awareness about loan procedures High interest rates 4 2 5 5 3 3 1 1 3 8 3 3 1 0 Participant Non-Participant Control Key message: Participants more aware of requirements than Non- Participants

12. Results | Differences among Participants and Non-Participants Status indicator Participants (n=12) Non-Participants (n=14) Gender (nr. of male) 10/12 7/14 Age (avg. age group) 31-40, max age 48 >50, 4 respondents >60 Education level 6/12 – secondary 3/12- post secondary 4/14 – secondary 4/14 – No education Family size (>7) 6/12 9/14 Dropouts (at least 1 in) 1/12 8/14 Land owned (>5 acres) 8/12 6/14 Animals (No. of cows) 2.41 per farmer 0.5 per farmer Crop varieties 24 10 (total per category) Association with NGOs, groups (total per category) 14 04 Awareness of banks, financial terms 18 11

13. Conclusion | Key opportunities for further research How may impact be enhanced?  Pre-event sensitisation of participants  Post-event follow up to ensure transfer of knowledge  Assistance in documentation & application procedures  Banks/MFIs to provide correct and complete information  Adapt to requirements of smallholders

14. Conclusion | Some steps APF may consider if propositions hold valid P1: Increased transfer of knowledge from Ps to NPs  Distribute logistical costs among member organisations  Accountability and incentivisation of knowledge transfer among farmer P2: Increased participation of women  Pre-selection and preparation of women farmers by local member organisations P3: Decreased fear among farmers  Ensure transfer of only complete and accurate information to farmers  Encourage banks/MFIs to use online platforms for promotion of products

15. Conclusion | Some steps APF may consider if propositions hold valid P4: Adoption of pro-smallholder approach by banks/MFIs  Train FOs and farmers via local NGOs on topics such as book keeping and registrations  Encourage NGO-banks collaboration for translation of application documents P5:More autonomy to local committees  Develop standardised procedures to delegate responsibilities while keeping checks for quality (e.g. Procedure for evaluation of vendors/suppliers)

16. Thank you – Question & Comments?

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