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ICT and Agriculture : Benefiting
           the Poor
                 Presented by

         Md. Asad-Ur-Rahman Nile
           Senior Business Consultant
             Swisscontact, Katalyst
              Geneva, Switzerland
                   May 2012
A real life story
                                   Moharaja Hossain
                                   A 32 year old farmer, from Pantapara village,
                                   Sharsha of Jessore District, with little formal
                                   education.
                                   On average his yearly earning is BDT 50,000
                                   (≈USD 595)
                                   Last season, Moharaj observed that the leaves of
                                   his bitter gourds were curling up. This disease was
                                   gradually spreading and diminishing his gourds.
                                   Within 15 days, approximately 160 Kgs of what
                                   could have been his produces got damaged.
                                   He was unable to find solutions from regular
                                   sources.
Finally after 15days he took the solution from one of the telecentre’s known as
Grameenphone Community Information Centre (GPCIC) and managed to save his
produces. At the end of the season he earned BDT 18000 (USD 214)
Content

• Katalyst at a Glance
•  ICT & Bangladesh
•  ‘The Constraint” and Katalyst Strategy
•  Innovations with private sector
   – Grameenphone CIC experience
   – Banglalink Agri-helpline experience
   – Impact
• Lessons Learned
• Way Forward
Katalyst at a Glance
                         Phase I                    Phase II
Donors          • DFID                  •   DFID
                • SDC                   •   SDC
                • SIDA                  •   CIDA
                                        •   The Embassy of Netherlands
Implementers    Swisscontact,           Swisscontact,
                GTZ-IS                  GTZ-IS
Duration        • Oct ’02 –15 Mar ’08   • 16 Mar ’08 – 15 Mar ’13

Budget          • US$ 20 million        • US$ 45 million


Line Ministry   Ministry of Commerce    Ministry of Commerce
Katalyst Approach
                                      Supporting
                                      Functions
                                        Information


Govt.                                 Informing &
                                     Communication
                                                                                     Private
                                                                                     Sector


                         Demand           Core            Supply



Informal                                Setting &                                   Business
           Regulations               Enforcing Rules                                Membership
network                                                            Informal Rules   Organizations
                                                                   & Norms
                         Standards                        Laws
                                            Rules


                              Source: The Springfield Centre
The Constraints
 ADVANCED MARKETING PROCESS


   Limited access to                                     Lack of appropriate ICT-
   ICT tools and                                         based service offers
   technology                                            targeting rural sectors



                                            Growth
                                          Potential of
                                          The Farmers
Lack of appropriate
policy support for
growth of ICT
                                                            Low awareness and
based services
                                                            usage of among
                                                            rural people


                                   Service Delivery

                  Lack of adequate skill set among
                  service providers
Katalyst Strategy
Partnership with Grameenphone (GP)

            Katalyst                         Grameenphone
• To develop a delivery channel       • To create a strong rural presence
• To create a sustainable mechanism   • To develop potential touch-points for
  for access to technology and          products and services
  information                         • To develop the rural segments with
• To develop a private sector led &     bundle of Value Added Services (VAS)
  commercially viable ecosystem for   • To promote data usage in rural areas
  accessing agriculture information

                           Partnership formed
The CIC’s
•   Grameenphone (GP) branded rural
    telecentre
•   Franchise model
     – GP provides technology, branding
        material, training
     – Entrepreneur invests in equipments &
        establishments
•   Standardized
•   Bundle of services
     – Information services
     – IT-enabled services
     – Top-up, photography, telco-products
•   Commercially motivated entrepreneurs
•   Without any subsidy
The Ecosystem
           • Developing commercial
             content provider                    • Commercial content providers
Katalyst   • Capacity building of the            developed
             service providers
                                                 • The channels became efficient in
                                                 delivery
                                                 • Awareness increased
           • Promotion
           • Service integration                 • Number of services increased
  GP       • Monitoring and advice               • Business case strengthened




                                             A sustainable delivery channel to deliver
                                        agriculture information with nationwide outreach
Deepening the Impact

•   “Now What?”
•   More than 18 million farmers
•   High & growing tele-density
•   High latent demand of information
•   Interested private sector partners
•   Ecosystem of commercial content providers
    needed more opportunities
Partnership with Banglalink
        Improved
                                                                          Value added services
     performance of                                                          for more market
     farmers & rural                Katalyst      Banglalink                   share in rural
                                                                                 markets
      entrepreneurs




                                               Banglalink
     Katalyst




                Market assessment                           Branded Value added
                                                            service for targeted
                Capacity building                           customers
                Content/Service                             Capacity building of the
                development                                 Call Center service
                Promotion                                   provider
                                                            Demand stimulation and
                                                            promotion of VAS
The Outcome: Bangallink Agri-helpline 7676

• A call-centre offering only agriculture related
  solution
• Commercially operated
• Branded by the second large mobile phone
  operator Banglalink
• Commercial content provider, commercial call-
  centre
• Human interface not IVR based
• Affordable for the farmers (0.06 USD / Min)
Service Delivery Model
                    Routed to a call
                        center
                                           Call center agents
                                         receive customers call
                    Agents provide the
 Customers dial a    info over phone                                   Agents browse
                                                                        the database
 short code 7676
                                                                        and finds the
                                                                          solution




               If the information is not available in the database         Customer is
                                                                           called back




  Agents take                   Support team                 Database is
notes of queries                 gathers info                 updated
The Impact

• There are more than 500 CIC’s in rural areas of Bangladesh
   – The average footfall in each CIC is 100 per day
   – Cumulative access outreach from March 2008 - June 2011 is 1.5
     million+ only from the Grameenphone
   – Cumulative benefit outreach from March 2008 - June 2011 is 600,000+
• Impact of Banglalink Agriculture helpline from Jan’11 to Dec’11
   – Relevant calls 32,904
   – Repeat calls 22% (7,219)
   – Asia Mobile Awards 2009, organized by the GSM Association
   – Nomination in The World Communication Award 2009 and The Global
     Mobile Award 2010.


     Source: Katalyst Annual Report 2011, Banglalink & Grameenphone
Agriculture Information

• The demand of agriculture information services is low compare to other
  services but its growing slowly
• Specialized Agriculture information like online based Fertilizer
  Recommendation System has been integrated in both the platforms
• The reasons behind the growing demand of agriculture information
  services
   – Easily accessible through the operators/entrepreneurs
   – Quick service delivery (very crucial in case of disease)
   – Possible to take print of the solution
   – A wide variety of solutions (crops, fisheries, livestock, poultry, fruits )
Challenges Ahead
• Slow adoption among the intended Target group
   • Latent demand
   • New technology
   • Reliability factor
• Revisiting the business case for different key actors
• Harmonization between different projects for optimum
  impact at beneficiary level
      – Reduce cannibalization
      – Increased Synergy
Lessons
• Partnering with right large Private Sector (PS) partners
  with right commercial incentive
• High Volume-Low margin business model
• Effective service development and delivery process
   – Demand led
   – Conveniently accessible
• Multi-stakeholder partnership for:
   – Taking ride on the core expertise of different actors
   – Reduction in cost of doing business and associated risk
   – Time efficient implementation
Lessons (contd.):
• Role of Government
   • Creating conducive policy environment for PS to
     perform
      – Extend cooperation to PS for developing and
        delivering need based services
      – Service quality and standardization
      – Endorsement and mass promotion of private
        sector lead initiatives
   • Shift from “service provider” role to “facilitator” role
Way Forward

• Changing the “mindset”
• Increase participation of women in availing ICT based
  services
• Developing strong role based partnerships with
  government organizations
• Advocacy for conducive environment
• Deepening the impact by developing ecosystems
Way Forward (contd.)

• Widening the impact by developing right
  partnerships
• Increasing specialized agricultural services like
  fertilizer recommendation, irrigation
  recommendation, soil testing, weather forecasting
  etc.
• Introducing mobile fund transfer for benefitting the
  farmers
• Facilitating direct market access of the farmers
Thank You

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ICT and agriculture benefitting the poor

  • 1. ICT and Agriculture : Benefiting the Poor Presented by Md. Asad-Ur-Rahman Nile Senior Business Consultant Swisscontact, Katalyst Geneva, Switzerland May 2012
  • 2. A real life story Moharaja Hossain A 32 year old farmer, from Pantapara village, Sharsha of Jessore District, with little formal education. On average his yearly earning is BDT 50,000 (≈USD 595) Last season, Moharaj observed that the leaves of his bitter gourds were curling up. This disease was gradually spreading and diminishing his gourds. Within 15 days, approximately 160 Kgs of what could have been his produces got damaged. He was unable to find solutions from regular sources. Finally after 15days he took the solution from one of the telecentre’s known as Grameenphone Community Information Centre (GPCIC) and managed to save his produces. At the end of the season he earned BDT 18000 (USD 214)
  • 3. Content • Katalyst at a Glance • ICT & Bangladesh • ‘The Constraint” and Katalyst Strategy • Innovations with private sector – Grameenphone CIC experience – Banglalink Agri-helpline experience – Impact • Lessons Learned • Way Forward
  • 4. Katalyst at a Glance Phase I Phase II Donors • DFID • DFID • SDC • SDC • SIDA • CIDA • The Embassy of Netherlands Implementers Swisscontact, Swisscontact, GTZ-IS GTZ-IS Duration • Oct ’02 –15 Mar ’08 • 16 Mar ’08 – 15 Mar ’13 Budget • US$ 20 million • US$ 45 million Line Ministry Ministry of Commerce Ministry of Commerce
  • 5. Katalyst Approach Supporting Functions Information Govt. Informing & Communication Private Sector Demand Core Supply Informal Setting & Business Regulations Enforcing Rules Membership network Informal Rules Organizations & Norms Standards Laws Rules Source: The Springfield Centre
  • 6. The Constraints ADVANCED MARKETING PROCESS Limited access to Lack of appropriate ICT- ICT tools and based service offers technology targeting rural sectors Growth Potential of The Farmers Lack of appropriate policy support for growth of ICT Low awareness and based services usage of among rural people Service Delivery Lack of adequate skill set among service providers
  • 8. Partnership with Grameenphone (GP) Katalyst Grameenphone • To develop a delivery channel • To create a strong rural presence • To create a sustainable mechanism • To develop potential touch-points for for access to technology and products and services information • To develop the rural segments with • To develop a private sector led & bundle of Value Added Services (VAS) commercially viable ecosystem for • To promote data usage in rural areas accessing agriculture information Partnership formed
  • 9. The CIC’s • Grameenphone (GP) branded rural telecentre • Franchise model – GP provides technology, branding material, training – Entrepreneur invests in equipments & establishments • Standardized • Bundle of services – Information services – IT-enabled services – Top-up, photography, telco-products • Commercially motivated entrepreneurs • Without any subsidy
  • 10. The Ecosystem • Developing commercial content provider • Commercial content providers Katalyst • Capacity building of the developed service providers • The channels became efficient in delivery • Awareness increased • Promotion • Service integration • Number of services increased GP • Monitoring and advice • Business case strengthened A sustainable delivery channel to deliver agriculture information with nationwide outreach
  • 11. Deepening the Impact • “Now What?” • More than 18 million farmers • High & growing tele-density • High latent demand of information • Interested private sector partners • Ecosystem of commercial content providers needed more opportunities
  • 12. Partnership with Banglalink Improved Value added services performance of for more market farmers & rural Katalyst Banglalink share in rural markets entrepreneurs Banglalink Katalyst Market assessment Branded Value added service for targeted Capacity building customers Content/Service Capacity building of the development Call Center service Promotion provider Demand stimulation and promotion of VAS
  • 13. The Outcome: Bangallink Agri-helpline 7676 • A call-centre offering only agriculture related solution • Commercially operated • Branded by the second large mobile phone operator Banglalink • Commercial content provider, commercial call- centre • Human interface not IVR based • Affordable for the farmers (0.06 USD / Min)
  • 14. Service Delivery Model Routed to a call center Call center agents receive customers call Agents provide the Customers dial a info over phone Agents browse the database short code 7676 and finds the solution If the information is not available in the database Customer is called back Agents take Support team Database is notes of queries gathers info updated
  • 15. The Impact • There are more than 500 CIC’s in rural areas of Bangladesh – The average footfall in each CIC is 100 per day – Cumulative access outreach from March 2008 - June 2011 is 1.5 million+ only from the Grameenphone – Cumulative benefit outreach from March 2008 - June 2011 is 600,000+ • Impact of Banglalink Agriculture helpline from Jan’11 to Dec’11 – Relevant calls 32,904 – Repeat calls 22% (7,219) – Asia Mobile Awards 2009, organized by the GSM Association – Nomination in The World Communication Award 2009 and The Global Mobile Award 2010. Source: Katalyst Annual Report 2011, Banglalink & Grameenphone
  • 16. Agriculture Information • The demand of agriculture information services is low compare to other services but its growing slowly • Specialized Agriculture information like online based Fertilizer Recommendation System has been integrated in both the platforms • The reasons behind the growing demand of agriculture information services – Easily accessible through the operators/entrepreneurs – Quick service delivery (very crucial in case of disease) – Possible to take print of the solution – A wide variety of solutions (crops, fisheries, livestock, poultry, fruits )
  • 17. Challenges Ahead • Slow adoption among the intended Target group • Latent demand • New technology • Reliability factor • Revisiting the business case for different key actors • Harmonization between different projects for optimum impact at beneficiary level – Reduce cannibalization – Increased Synergy
  • 18. Lessons • Partnering with right large Private Sector (PS) partners with right commercial incentive • High Volume-Low margin business model • Effective service development and delivery process – Demand led – Conveniently accessible • Multi-stakeholder partnership for: – Taking ride on the core expertise of different actors – Reduction in cost of doing business and associated risk – Time efficient implementation
  • 19. Lessons (contd.): • Role of Government • Creating conducive policy environment for PS to perform – Extend cooperation to PS for developing and delivering need based services – Service quality and standardization – Endorsement and mass promotion of private sector lead initiatives • Shift from “service provider” role to “facilitator” role
  • 20. Way Forward • Changing the “mindset” • Increase participation of women in availing ICT based services • Developing strong role based partnerships with government organizations • Advocacy for conducive environment • Deepening the impact by developing ecosystems
  • 21. Way Forward (contd.) • Widening the impact by developing right partnerships • Increasing specialized agricultural services like fertilizer recommendation, irrigation recommendation, soil testing, weather forecasting etc. • Introducing mobile fund transfer for benefitting the farmers • Facilitating direct market access of the farmers