The Agro-Dealership Voucher Scheme in Zimbabwe used vouchers as a way to facilitate improvements in agricultural production, improve access to essential supplies, and therefore to increase the income and employment of rural smallholder farmers in the agricultural sector.

1. Agro-Dealership Voucher Scheme -
Zimbabwe
Key points
Donor: USAID/Africare
Dates: Dec 2009 – May 2011
Sector: Agriculture
Location: Mashonaland Central
Province, Zimbabwe
Successes: 25,338 smallholder
farmers benefitted through
greater access to inputs. Finance
and advice services transformed.
Impact Awards winner 2011
Background
The aim of the Mashonaland Livelihoods Restoration Project (MLRP) is to restore the
livelihoods of rural people in the Mashonaland Central Province of Zimbabwe.
This is a pilot project, intended to demonstrate the efficacy, sustainability and potential for
impact at scale of this approach.
Objective: To increase income and employment of 2,032 rural smallholder farmers in Guruve
district by June 2011 by facilitating improvements in agricultural production and improved
relations between market actors.
The problems:
• Despite agriculture being the major livelihood activity in the area, limited supply
of agricultural inputs such as improved seed varieties, fertilizers and agro-
chemicals, adversely affected agricultural productivity.
• The introduction of the multiple currencies in 2009 resulted in improvements in
supply of agricultural commodities but smallholder farmers in the communal areas
still faced the challenge of accessing critical agricultural inputs.
• Because agricultural inputs were not easily available in local ward shops,
smallholder farmers in Guruve resorted to travelling large distances to access
inputs at Guruve Centre.
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2. • Whilst the larger commercial seed suppliers were busy concentrating on their
distribution centres around Harare, the local agro-dealers were constrained by a
lack of cash and credit to ensure the availability of seed.
What we did:
Agro-dealership voucher scheme
The project used an agro-dealership voucher scheme between 2009 and 2011 to resuscitate
working relationships between commercial agricultural input suppliers, wholesalers, local
agro-dealers and the small-scale producers to increase access to inputs.
As a result, commercial agricultural input suppliers are now subcontracting wholesalers and
some of the local agro-dealers to continue supplying inputs to smallholder farmers in Guruve
District even beyond the project cycle.
Though the agro-dealership voucher scheme benefited only 2,032 smallholder farmers,
23,306 smallholder farmers are now benefiting indirectly through access to a wide range of
locally available agricultural inputs. This has also benefited the commercial agro-input
suppliers reach out to more farmers.
Financing and training
The agro-dealership voucher scheme also provided the local agro-dealer network with start-up
capital to restock their shops with agricultural inputs. Local agro-dealers received
commissions ranging from 5% to 8% by the commercial agricultural input suppliers and 70%
of the local agro-dealers have restocked their shops with various grocery items and
agricultural inputs to sell locally.
The commercial input suppliers also delivered training to the agro-dealers on fertilizer, seed
storage and voucher redemption.
Micro-Financing
Access to finance at the lower levels was critical to ensure long term sustainability.
Established Micro-Finance Institutions (MFIs), affected like everyone by the economic crises,
were undercapitalized and thus had no funds that could support the smallholder farmers with
whom the project was working. Practical Action partnered with an established MFI, Zambuko
Trust, to train smallholders on establishing saving and lending schemes from their own
resources. As a result farmer groups are now able to save money from the previous crop sales
for use next season and are venturing into a number of interventions.
Collaboration with Public-Private Partnerships (PPP)
Practical Action partnered with private sector companies and government line agencies such
as Department of Agricultural Extension (Agritex) to provide agricultural advice and support to
smallholder farmers on issues of utilization of inputs, field preparation, planting and crop
management. First the private companies trained Agritex officers in Guruve, and these then
trained lead farmers who in turn trained all the other farmers in the targeted wards. Each
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3. Agritex officer covered more than 500 smallholder farmers, so through these lead farmers,
new skills and knowledge have the potential to reach thousands of beneficiaries.
Lessons Learnt
Timeliness and transparency
• Timely and transparent selection of agro-dealers was critical. This needed to be
done six months before the actual inputs are distributed.
• Timely and transparent registration of targeted smallholder farmers was also
necessary.
• Timely access of appropriate agricultural inputs to smallholder farmers in Guruve
before the onset of the agricultural season (August to September 2010) is critical.
Voucher scheme and sustainability
• Vouchers are not intended to be sustainable; they are a tool that pro-poor market
facilitators like us can use to build healthy, trusted and sustainable business
relationships between the smallholder farmers and the commercial agricultural
input markets.
• If voucher schemes are not designed and used properly they can undermine
sustainability. Guaranteeing demand to agro-dealers without a proper exit strategy
can present problems as the demand may not be maintained without external
assistance.
• In this context, where farmers are struggling with hyperinflation and thus
extremely low investment capacity, voucher schemes proved to be an appropriate
solution for smallholder farmers and local input providers.
Cost efficiency
• Vouchers can be a relationship and linkage builder. The approach also reduces
transaction costs for the implementing organization when compared to direct
distribution and it allows the private sector to play their role in making markets
work better for marginalized producers.
• This approach also fosters agricultural productivity in general as it reduces
dependence on the donor.
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