Information Revolution Changing the Face of African Ag.

Photo Credit: ECX

A 2-day conference on African Commodity Exchanges has ended in the Ethiopian capital, Addis Ababa with the call for an Africa wide commodity exchange as well as more exchanges in African nations.

At the heart of this conference, even though not upfront, was the key role that information and communication technologies (ICTs) are playing in transforming businesses within the agricultural sector in Africa. The success stories surrounding the operation of the Ethiopian Commodity Exchange (ECX) system attest to the fact that ICTs can be enabling factors in almost every sector once the necessary steps are taken to integrate these technologies into the sector.

“A sleepy eyed farmer miles away from the nearest road braves the morning chill to load his donkeys with his lentil harvest. On his way to market he checks his mobile to see if the network is reaching him – because receiving a text message now from the Ethiopian Commodity Exchange (ECX) could save him hundreds of birr,” said the former World Bank economist Eleni Gabre-Madhin who is the CEO of the Ethiopia’s state-owned commodity exchange.

According to Dr. Gabre-Madhin, ECX is as much an ICT revolution as it is an economic transformation. The platform is a communications technology, from the real time price tickers found across the country to the Interactive Voice Recognition mobile telephony for rural farmers, that makes the exchange work. ICT applications currently being used to facilitate exchange of commodities and make information accessible to the users include over 100 price tickers, 20 trading centers, 50 warehouses, 2000 market information kiosks, and 50 data display boards.

Dr Gabre-Madhin stated that access to price information allows farmers to maximize profits and if farmers can get the same information about the national market trends that well-established and endowed exporters and processing firms have, that changes how the game is played. She concluded that with the ECX, the share of the final export price that now goes back to the farmer has gone up from something like 38% to close to 70%.

The conference which was co-organized by ECX and UNDP brought together participants from about 14 Africa countries including Ghana, Zambia, Rwanda, Nigeria, Zimbabwe and South Africa with market regulators, policy makers, national and international banks, the US securities and exchanges commission, development institutions, investors, farmer organizations and technology companies.

But while the ECX is being held up as a model, many other African countries disagree with the concept of states controlling the market. But the Ethiopia’s top government economist Newal Gabre Ab insisted that every country is different when it comes to economic policy and in Ethiopia, where farmers are among the poorest in Africa, the success of the ECX is the result of careful state planning.

November 15, 2011/by actualize

Agriculture, Originally posted on the GBI Portal

E-agriculture…Let’s look at projects in the Caribbean

Credit: Radio Toco

E-agriculture typifies the shift from struggling industrial economies to a knowledge-based entrepreneurial economic landscape driven by rapid technological innovation.

ICTs, which are increasingly viewed as tools that can enable farmers to work smarter and boost their returns, have functioned as a source of empowerment, boosting and building capacities, through highly efficient knowledge sharing processes.

Here are two ways in which e-agriculture is helping to transform the Caribbean’s agricultural sector.

AgriTalk: An initiative of the Caribbean Farmers Network (CaFAN)

Objective: To facilitate a community of knowledge network of practice for Small Farm Holders and Farm associations and stakeholders across 16 Caribbean Islands by probiding cheap network communications using innovative digital technologies (VOIP) to facilitate timely agriculture related information (market prices, information about fertilizers, crop varieties etc.)

Approach: Partner with Mobile Telecom & VOIP Providers to create a closed user group service at a low cost to members of the network.

Regional-CaFAN- VOIP (ATA Adapters)-Peer Network & Gateway-Pilot

Internet Access- Low cost Edge Service -(Data Cards) Modem and Router – US$20/month

Local Level- CUG with Local Mobile Network -(Digital or C&W) -US$5/month (Free SMS)

VOIP Gateway – At each Network Contact Point (using SMS or code)

Beneficiaries: Nearly 1 million farmers

Benefits to community: Better prices, reliable information, Ease in selling their products etc…

Driving Agency: CaFAN, Farmer Associations

Rural Radio-Radio Toco 106.7FM, in Trinidad and Tobago, South-Eastern Caribbean

Objective: Aimed at serving the community and broadcasting community programs to alleviate poverty through information and ICTs.

Radio Toco came on stream in November 1997, with UNESCO/UNDP assistance within the framework of UNESCO’s special program “Women Speaking to Women”, and has gone from strength to strength since then.

Approach: A radio station and multimedia center, offering training

Beneficiaries: Rural Community

Driving Agency: Toco Foundation with the help of volunteers

Key lessons from these two initiatives

Technology is secondary to preparing and aligning people and processes
Effective community participation is vital
Strong leadership from village up is essential for success of any ICT4D project (e.g Agri-Talk)
Leveraging ICTs is not necessarily about changing lifestyles in rural communities. In many instances, they will introduce new methods of doing the same old activities.
Agricultural information is a complex process (information infrastructure—access and costs)
Knowledge sharing and strategic content development will be vital

Find out more about e-agriculture projects around the globe here.

August 3, 2011/by actualize