4 Keys to Make Your Project Handover Successful, No Matter the Circumstance

By Erica Bustinza, mSTAR Project Director

mSTAR/Liberia ended activities in May 2018 after enrolling 4,870 civil servants across Liberia into mobile salary payments and successfully handing the mobile salary payment program over to the government. Over the summer we will be posting a blog series on what went well and why, how we overcame challenges, and lessons for the future. We’ll be writing from a management angle, monitoring and evaluation angle, a communications angle and a digital financial services angle. 

Project closeout is a hectic time. There’s a list of detailed tasks to accomplish, from finalizing results and lessons learned to equipment disposition. But what if closeout plans are rocked by a natural disaster? Or a financial shock? Or a government transition?

For the first time in 12 years in Liberia, a new president was elected to power. It was a peaceful transition of power that the country celebrated, but it also coincided perfectly with mSTAR/Liberia’s scheduled closeout. Charged with supporting the government to offer mobile money salary payments to civil servants, mSTAR/Liberia’s planned closeout included a comprehensive handover of intricate tasks to government leaders. However, a new administration meant that many government colleagues who supported the project were being replaced. The mSTAR team couldn’t ask the government to reschedule the transition and it was unclear if there would be enough time to ensure the new administration would fully be able to take ownership. In the last few months of the project, navigating the transition appeared daunting.

From 2016 to 2018, mSTAR/Liberia supported the government in offering mobile money as a new payment option for civil servants. Before this payment option, the only way for civil servants to receive their salary was to travel down dangerous roads to banks in distant cities where low liquidity forced them to wait, often for days. Throughout this journey, civil servants spend huge sums of money on lodging and food, in addition to missing work. With the mobile money salary payment option, however, civil servants can receive their salary on their phones. This option has saved civil servants 12 hours at work and 979 LD on average, which is roughly 7 percent of the average salary.

For two years, mSTAR worked to make this payment option a success. mSTAR built consensus with government and private sector stakeholders to enroll civil servants in the program through over 60 local events across all 15 Liberian counties. Through this work, over 4,500 civil servants enrolled in the payment program and the country’s two mobile money providers signed on to offer their services.

Yet from June 2017 all the way to March 2018, elections and the change of administration caused an all-around distraction for both mSTAR and government staff, impeding progress during key months for implementation. Fortunately, several government counterparts felt the gains that had been made and were motivated to push for activities to continue, even if at a reduced pace.

In the last six months of mSTAR/Liberia’s activities, it became clear that mSTAR’s only option for a smooth handover was to begin project transition early and involve as many relevant stakeholders as possible. As election campaigns heated up, it took several months to hold initial transition meetings, but mSTAR remained persistent. Following the inauguration in January 2018, the new administration greenlighted select mSTAR activities and the mSTAR and GOL teams sprang into action. During the final months of the project, major sustainability activities were achieved including three large-scale regional trainings for district and county staff, a high-level stakeholder sustainability meeting and a final closeout event featuring public statements of support from each key stakeholder, many of whom were from the new administration. The project not only met, but surpassed expectations.

mSTAR’s Keys to Closeout Success:

  1. Build sustainability into project design. The project built government ownership into the design. Stakeholders knew from the onset that the government would own the initiative. From the start, the mSTAR team worked towards that goal. This understanding made the eventual government transition smooth.
  2. Involve local and technical staff in key parts of implementation. mSTAR worked with the GOL technical teams rather than focusing on politically-appointed decision makers. While senior staff were replaced in the new administration, the technical teams remained. The technical teams were proud advocates of the program and obtained critical buy-in from the new administration.
  3. Create collaborative and cost-effective mechanisms. At the project onset, mSTAR and the GOL knew the GOL would not be able to sustain the large-scale enrollment events that mSTAR was supporting, so they created a separate enrollment method called “individual enrollments.” This system utilizes processes that are already in place, eliminating the need for additional funding or time-consuming new functions for overstretched rural staff.
  4. Keep energy and momentum high. The government was energized to continue scaling up the project because they saw positive results. Benefits the government saw include:
  • Staff spend less time collecting salary
  • Staff have more time on duty at health facilities and schools
  • Staff reported fewer complaints pertaining to salary issues
  • Staff experienced financial savings due to reduced transportation and other related costs when collecting salary at the bank

In light of these four keys, the importance of building ownership into the project design remains paramount. It not only prepared the project and the GOL for the transition, but also helped mSTAR reach and exceed project goals and build civil servant trust in the system. County and district staff reported that they understand the importance of their duty and that they would continue to encourage civil servants to transition to mobile money salary payments. Leadership in Monrovia said the same. “We will run with this program,” said James M. Beyan, the Director of Human Resources at the Ministry of Health, at the closeout event. James Armah Massaquoi of the Ministry of Education echoed, “We will continue the effort of mobile money. We will not allow the dream to die though the challenges seem big.”

Erica Bustinza has worked in development for over 10 years in various geographic regions and sectors, primarily focused on access to finance, economic development and technology integration. She holds a MSc in International Development from Tulane University and a BSc from Bradley University.

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‘She doubled her production that year-‘ 2017 Digi Winner Impacts the Lives of Ethiopia’s Farmers

We’re taking a behind-the-scenes look at the 2017 Digi winners. Hear their take on what it means to be a Digi winner and the power of digital tools. This interview was conducted with Mekdes Girmaw, Project Director for the Digital Integration to Amplify Agricultural Extension Project. All USAID projects and activities are invited to apply for the 2018 Digi Awards here. 

Q: What’s the project?

Mekdes Girmaw (MG): Digital Integration to Amplify Agricultural Extension harnesses locally-produced video, radio, interactive voice response and mobile data collection combined with traditional extension workers to spread information about best practices to smallholder farmers. One third of the farmers reached, 40 percent of whom are female farmers, have adopted at least one new practice.

Q: What’s the local impact?

MG: Take Ms. Jorge, a farmer in Becho district of Oromia region, Ethiopia. She participates regularly in her village farmer development group meetings. She watches localized videos featuring local farmers talking about best agricultural practices and discusses the practices with group members and the extension agent. She also is engaged with her local community listener group that comes together to regularly listen to participatory radio campaigns. The Aybar Broad Bed Maker (BBM) tool was introduced in a video as well as during radio segments.

Ms. Jorge listened to the radio program and watched videos that discussed the benefit of the tool – to create furrows and drain excess water from water-logged soils. Although extension agents had introduced the tool at a local demonstration plot during years past, many farmers including Ms. Jorge did not have the confidence to assemble and use it. After watching the videos and listening to the radio broadcasts, Ms. Jorge worked with extension agents and tested the Aybar BBM during her planting of one hectare of an improved variety of teff. By using the tool, and by changing her management practices of teff, she doubled her production that year.

Q: What surprised you when implementing this project?

MG: We work in very close collaboration with the Ministry of Agriculture in Ethiopia. Digital Green, a project implementing partner, aims to leverage pre-existing structures such as the farmer development groups and the country’s agricultural extension structure, and layer digital technology onto those structures to increase smallholder farmer incomes. The Ministry of Agriculture in Ethiopia is eager to maintain the momentum that the Digital Integration project has spurred; they have begun institutionalizing the end-to-end video-enabled extension approach and are eager to leverage IVR and radio to support smallholder farmers as well.

We also learned that adding more ICT channels do not always generate deeper impact. Mobiles are often useful for exchanging data or smaller information that fluctuates (such as market prices or weather); whereas video provides rich information and has the ability to motivate viewers. We know that ICT is not a substitute for face-to-face human interactions; the two need to be paired and work in complementary ways.

Q: What would you say to other projects to encourage them to use digital tools?

MG: The content of digitally-delivered messages within the agricultural space really needs to be tailored and contextualized for greater farmer uptake. If practices are broken down by tangible adoption points and modified for each target group, messages could be powerful for the farmers watching, and for those with whom they share information.

It would be great if projects that are using ICT mapped out their country’s ICT ecosystem to sustainably scale and drive impact from scale.

Q: What does it mean to be a Digi Award winner?

MG: We are excited that the consortium partners, Awaaz.de, Dimagi, Farm Radio EthiopiaFarmerInternational, and Digital Green, as well as all of the key partners of this project, the Ministry of Agriculture in Ethiopia, the Agricultural Transformation Agency, AGRA & their grantees, were recognized for the integrated work that took place to support smallholder farmers in Ethiopia. The project was an enriching, encouraging experience and we’ve learned from it. We look forward to continuing to bridge gaps and find solutions to continue supporting smallholder farmers to increase their incomes and leveraging the lessons learned from this project to do so efficiently and effectively.

mSTAR and USAID developed videos of each winner, viewable here. All USAID projects and activities are invited apply to the 2018 Digi Awards.  

The 2018 Digi Award Application is Now Live!

The second annual Digital Development Awards are now live! 

While the applications are open, we’d like to look back at the 2017 Digi winners. The 2017 winners represent exemplary uses of digital technology across sectors, regions and contexts. We’re excited to share some behind-the-scenes interviews with the Digi winners featuring what the Digi means to them and what it takes to implement digital technology successfully. In this interview, the B+WISER project gives us their inside take on being a Digi winner.

Q: What’s the project?

A: B+WISER from the Philippines. B+WISER teamed up with Department of Environment and Natural Resources (DENR) to develop the Lawin Forest and Biodiversity Protection System, which revolutionizes how the Philippines prevents forest destruction. Through Lawin, forest rangers digitally record observations about forest conditions, species and threats to provide geo-referenced, up-to-date information that informs DENR’s forest protection actions at all levels.

See B+WISER in action in the Filipino rainforest here.

bwiser3.jpg

Rex Telon uses Lawin.

Q: What’s Lawin’s impact on local communities?

A: Before the innovation, the DENR had only little information about the efforts of the forest rangers in the field. With Lawin, rangers like Rexmel Telon, who has always believed protecting the forest is a priority to safeguard the livelihood of future generations, are now being appreciated for their forest protection efforts. The digital innovation changed the way Rex and 3,000 other rangers approach forest protection. Their observations on the status of the forest and threats to the natural forest can now be easily shared to the local, regional and national level through the SMART Connect web platform, allowing DENR to do data-driven and transparent decision making for forest and biodiversity conservation. A comprehensive approach to forest protection is imperative in addressing the threats to forest and its biodiversity. The innovation provides the data needed for improving the design and implementation of the DENR community-based livelihood programs. Activities such as establishing agroforestry farms, energy crop plantations and the hiring of community members as forest guards, are being implemented in areas where data shows increased level of forest threats to engage the communities as part of the forest protection efforts, minimizing destructive anthropogenic threats. In addition, the innovation empowers local communities to take an active role in protecting their forest resources such as the case of Mount Kitanglad, an ASEAN Heritage natural park in Mindanao, where 320 indigenous people volunteer guards use the innovation to protect the park.

Q: What was most surprising throughout the process of creating and implementing the tool?

A: The Lawin digital innovation was designed to scale at the onset. It was surprising to see the overwhelming buy-in from DENR at all levels and the swift manner in which the DENR decision makers demonstrated commitment to scale-up the system. In less than two years, Lawin was transformed from a small-scale forest protection system in seven sites comprising a total 240,000 hectares of natural forest to a national system that will protect more than 7 million hectares of natural forest. The strong local ownership of the innovation is demonstrated by DENR’s significant investment of more than $20 million annually and the daily use of the innovation by more than 3,000 staff.

Lawin has been so successful that the DENR wants to expand it to cover all the environmental mandates of the Department including the monitoring and assessment of its flagship reforestation program, as well as the compliance of mining operations and the tourism and coastal management efforts, among others.

Q: What are the keys to successfully implementing digital technology?

A: Local ownership is paramount both to successful implementation and sustainability. Inclusive participation of partners and relevant stakeholders is bwiser5important in understanding the development challenge, defining workable solutions and agreeing on stakeholder roles to address the situation. In particular, you need to determine the data and information gaps that stakeholders and decision makers need to overcome. At this point, you can think of the value that digital innovations can bring to address these gaps. It is critical to work together with the counterpart in the development of the innovation, thinking of the users, the potential to scale, and the possibility for its sustained implementation even beyond the project. To the extent possible, work on a cost-sharing scheme for carrying out capacity-building activities and ensure a critical mass of users can be trained. Cost-sharing (having skin in the game) for capacity-building events will help increase local ownership of innovation. Finally, one cannot underestimate the contribution that simplicity and user friendliness can have at the moment of scaling up a digital development innovation – keep it simple!

Q: What does being a Digi winner mean to B+WISER?

A: The Digi Award brought a sense of accomplishment and recognition not only on bwiser4the part of the USAID project, but more importantly, on the part of the DENR. The award showed the government that their efforts in the development and implementation of the system in partnership with USAID represents best international practice. Their participation in the Digital Development Forum where the Digi winners were recognized, and the award itself, resulted in renewed commitment on the part of the authorities for the sustained implementation of the Lawin system in the Philippines.

mSTAR and USAID developed videos of each winner, viewable here. All USAID projects and activities are invited apply to the 2018 Digi Awards.  

Serving Smallholder Farmers in the Digital Age: Why it Requires Treating Data Like an Asset

The blog was originally posted on Next Billion. To read original, click here

By: Bobbi Gray, Research Director, Grameen Foundation and Ellen Galdava, Program Officer, mSTAR Project, FHI 360

Satellites. The Internet of Things. Big Data. Blockchain. These concepts, among others, can elicit images of a futuristic world for the agricultural sector—and one that is still years away. Then again, maybe not. GSMA estimates that by 2020 almost three-quarters of the world’s population will subscribe to mobile services and that the next wave of mobile connections will mostly come from rural areas, where smallholder farmers produce the majority of food, yet often live in poverty. The rise of mobile phones in rural regions has the potential to change the face of smallholder farming and help lift remote communities out of poverty.

The spread of mobile technology combined with remote-sensing data, distributed computing and storage capabilities are opening up new opportunities to integrate smallholder farm households into the broader agri-food system. This change begins with one basic activity: compiling farmer profiles. How farmer profiles are compiled, stored, analyzed and utilized using advanced digital technologies can drive whether, and how quickly, agricultural development is able to end poverty and hunger among rural populations.

So what are farmer profiles? Governments and their partners have collected data on and about farmers for decades. More recently, agribusinesses, mobile network operators, financial service providers and other companies have done the same. Typically, their data collection activities share a common goal: to understand farmer needs for products, information services, market linkages and finance. As a result, farmers often spend hours repeatedly answering analogous questions from service providers seeking to understand their customers. Yet the information gathered is often insufficient to fully inform the comprehensive solutions and partnerships needed to transform smallholder farming into viable, sustainable businesses.

As technology use increases and improves in rural areas, the paradigm for how smallholder farmers are profiled and defined is shifting. To help describe this shift, Grameen Foundation, supported by USAID’s Digital Development for Feed the Future (D2FTF) and FHI 360, conducted a landscape assessment that:

  • Documents the types of service providers that collect farmer profile data, how           data is collected, analyzed and used to support smallholders with products and services, and how this data is shared and managed.
  • Highlights innovative models of smallholder farmer data management and                 sharing in order to inspire new thinking among actors in this space, and
  • Outlines key considerations when assessing existing efforts, or investing in new        efforts, to develop and leverage farmer profile data.

The assessment reveals innovations in the use of digital technologies all along the smallholder farmer data value chain–from how farmers are identified to how data is shared and managed. For example, satellites, remote sensors and drones can be used to capture data on the farm—and on the plants and soil conditions, without the need for intensive field agent data collection processes. Social media data, like Facebook data, can be mined to develop chatbots that draw on cognitive analytics to immediately respond to farmer questions about livestock disease outbreaks, providing timely support to farmers at low cost. Open data sharing platforms, which draw on thousands of studies and research databases, can facilitate the creation of new data, allowing typically siloed data to be combined for new insights. Mobile phone usage data can be analyzed to predict a user’s occupation, and therefore what type of farming information might be most useful to him or her.

When smallholder farmer data is digital—and is combined with farm data (such as data on the plants grown or soil conditions) and other big data sources or complementary data sources, such as national identity registries—we can minimize the amount of time requested of farmers for their data. We can also build farmer profiles that are dynamic; that integrate comprehensive data on the farm and farmer; that can be leveraged for timely support to the farmer; and that the farmer her/himself could own and control.

Data-driven agriculture is already creating a new economy, one where data itself is currency. Data is being monetized and sold—whether to provide crucial information to financial services providers to develop appropriate agricultural finance products, or to support input suppliers trying to serve their target markets. Who controls that data, and how it is used, will determine the success of service providers and farmers alike. Data is no longer just a resource, but an asset.

In summary, the data and the technology (hardware and software) exist to solve many constraints that farmers face. But these resources are still fragmented, and not all service providers—let alone farmers—have equal opportunities to access them. Data science—some might say “Big Data analytics”—promises to bring fragmented data, resources and service providers together to support the farmer ecosystem.

The farmer profile landscape assessment itself will be published later this year. It represents a starting point for further discussion on how we can develop and leverage smallholder farmer profile data.

Photo Credit: LWR / Jake Lyell

An Interview with Jim Forster of INI Holdings: Increasing Access to Affordable Communications

This blog is the first in a series of interviews focusing on last-mile innovation.

Mobile internet access is available to over two-thirds of the world via 3G coverage, yet significant populations within low- and middle-income countries still cannot connect to the internet because of availability and affordability issues. Ensuring equitable access in these frontier markets poses complex challenges but also a dynamic set of opportunities. A growing number of innovative enterprises and community networks are seizing these opportunities to meet the demand for access among rural and low-income urban consumers. They are employing novel business models and technologies to profitably and sustainably serve markets where mobile network operators and fixed-line internet service providers cannot make their traditional operating models work. The diversified models and ingenuity of these connectivity enterprises are causing investors to pay attention. With funding from USAID under the Last-Mile Connectivity Initiative, mSTAR recently completed a landscaping of over 50 last-mile connectivity enterprises offering services and 50 investors channeling capital into these solutions. jim5.png

Jim Forster is one investor who has taken notice. Jim is a connectivity veteran who spent 20 years at Cisco, founded NetworktheWorld.org, and currently serves as Chairman of Mawingu and AirJaldi Networks. In response to the growing opportunity for investment, Jim recently launched INI Holdings with partner Ben Matranga to manage a portfolio of investments in affordable, reliable, and high-speed connectivity.

Hannah Skelly, mSTAR Technical Advisor, interviewed Jim in March 2018 to learn more about INI Holdings.

What new trends get you excited about the last-mile connectivity space?

JF: In 2018, much of the world is connected, but many people still don’t have connectivity. The first wave of extending communications technologies prioritized access, with the benchmark being number of total users. It is a binary measurement that rightfully prioritized expanding coverage to more people. We believe the next wave is beginning to prioritize consumption and providing communications at a price and quality that nearly all can afford.  Our ultimate goal is not just for people to have communications tools in their hands, but be able to use them because the cost and quality is no longer a barrier.

What motivated you to start INI Holdings?

JF: I spent 20 years at Cisco Systems. It was fascinating to build products that are key parts of the internet as it grew so rapidly. The last several years at Cisco I spent time looking at how to spread the internet into more places, especially rural areas of Africa and Asia. I saw there was a need for financing of early stage companies. At Cisco I was a Senior Engineer but when I left in 2008 I became an angel investor, learning by doing. Recently I wanted to accelerate and do more, so I asked Ben to get involved. He’s got lots of great experience that complements mine, including working with entrepreneurs to rebuild infrastructure in Africa and Latin America. I knew his passion for restoring communities and supporting new ideas and experience in finance and infrastructure in remote areas would help push our investments forward.

The INI investment portfolio includes internet service providers (ISPs) that have developed operating models that can profitably provide service where none currently exists as well as offer service affordably to low-income consumers. What are the main characteristics of these companies’ approaches that enable them to operate profitably in areas that the traditional mobile network operators have passed over?

JF: Traditional mobile operators have a cost structure that requires certain corresponding revenue. While mobile networks are great, they are not the only structure that can deliver internet content and services. In particular, in the US, Europe and Eastern Asia there are very large and successful networks, such as the cable company networks, or the various DSL/FTTx/Fixed Wireless networks that everyone uses at home and in the office. Besides connecting desktop, laptops and over-the-top (OTT) video and music systems, these networks carry more data to mobile phones than the mobile operators carry. But in Africa and South and Central Asia, these networks almost don’t exist. By dropping the requirement that connectivity should work even while moving and have a phone number, it’s possible to use other technology that is faster and cheaper than the mobile infrastructure.

INI describes itself as a double-bottom line investor, both venture capitalists focused on financial returns and impact investors focused on socio-economic outcomes. What are the most important social returns you anticipate from your investments?

JF: We expect our portfolio of ISPs to focus on access at an affordable price. We know that communications is one of the primary discretionary expenses for our customers – if our companies can provide better quality at a lower price – that puts more money in our customers pockets.  In South Africa for example, our customers currently spend up to 20 percent of their income on data from mobile telecommunication operators: we offer 20 times more bandwidth value. That’s more bandwidth at a lower cost.

In terms of geography, your investments span many interesting frontier markets —Mawingu in Kenya, Habari in Tanzania, AirJaldi in India and TooMuchWiFi in South Africa. What has your experience been in these markets – have you noticed any major similarities or differences?

JF: Each market has its own particular set of challenges. There are some clear similarities in hardware technology, building out revenue models, or sales strategy. We are hands-on investors that provide financial capital alongside technical and strategic expertise. But ultimately, it’s about finding great local entrepreneurs and building exceptional teams that know their communities far better than we do.

What do you anticipate your portfolio will look like in 3-5 years?

JF: INI is focused on building a portfolio of ISPs that serve millions of clients. That takes time, but we know great companies are built one happy customer at a time.

What advice would you give to other investors looking to enter this space?

JF: Find other investors who shares your values and complements your knowledge base. There are many investors who are happy to have new investors participate in deals. Always focus on the people – the customers, the entrepreneurs, the line managers – they are ultimately what you are investing in.

mSTAR is supporting the USAID Digital Inclusion team’s Last-Mile Connectivity Initiative to connect investors, such as Jim and Ben, with the growing number of connectivity enterprises. Stay tuned via the mSTAR blog and the Digital Inclusion website to hear more from investors who see huge commercial and social potential in the connectivity space and the enterprises developing and deploying solutions.

AMA Innovation Lab and D2FTF Use Digital Tools to Break Down Barriers to Agricultural Insurance

This blog was originally posted on Agrilinks. To read the original, click here

By: Tara Chui, Assistant Director, AMA Innovation Lab, UC Davis

In the developing world, there is little agriculturalists can do to protect themselves and their families from weather volatility. When shocks occur, many families have to resort to defaulting on loans, selling assets, reducing their meals or pulling children out of school. Because of this, even before disaster strikes, many farmers pass on high reward, but potentially risky, opportunities. Even though additional investments in farm productivity could help the household get out of poverty, these investments could also increase the household exposure to risk. This means many families don’t take the growth opportunities available to them. In this way, risk exposure both makes families poor and keeps families poor.

At the Feed the Future Innovation Lab for Assets and Market Access (AMA Innovation Lab), we’ve found that agricultural index insurance, by transferring these risks away from farmers, can increase household resilience and enable smallholder farmers to take advantage of productive opportunities that are available to them. By avoiding costly coping mechanisms and taking advantage of growth opportunities, households and communities can make productive investments and can set themselves on a growth trajectory.

Many agricultural insurance pilots, despite indications of positive welfare impacts, have not been taken to scale. Many of the challenges they face are things like consumer education, sales and distribution in remote locations and small sales at a time.

One of the most successful index insurance projects – Index-Based Livestock Insurance (IBLI) in East Africa – was met with a series of barriers in making the product accessible to those who stood the most to benefit from the product. For example, pastoralists, by definition, are often not in their homes. This makes it exceedingly difficult to get the payouts to the insured pastoralists when payouts are triggered. If it takes too long for insured agriculturalists to receive their payouts, then they are forced to resort to the same costly coping strategies that they bought the insurance to avoid. This can also severely inhibit, or entirely demolish, an intervention. In the case of IBLI, the payout problems meant that the costs of distributing payouts were actually higher than the value of the payouts themselves.

Now, as part of the Kenya Livestock Insurance Program, the next stage of the ILBI intervention, insurers are moving to mobile phones to make sure payments get to the insured quickly. Because of the huge advances made in digital innovations, interventions can be made more feasible, and more of the value can be passed on to the pastoralists themselves.

At the AMA Innovation Lab, we see on the horizon many more opportunities for digital innovations to increase access to insurance through improved consumer education, sales platforms, insurance purchase aggregation and payout distribution platforms mechanisms. Moreover, digital innovations such as remote sensing and drones have high potential to make the indices used to trigger payouts better at seeing the reality of situations on the ground and making the contract much more valuable to farmers than was possible in the past.

As the AMA Innovation Lab continues to work with pilot studies and implementation partners – in both public and private sectors – digital innovations can make what once was infeasible now feasible. And Feed the Future’s new guide, Using Digital Tools to Expand Access To Agricultural Insurance, will provide implementation partners with an important resource to address these barriers that stand behind this important innovation and rural communities.

When used in concert with some of the tools being developed by the AMA Innovation Lab to promote the responsible and effective development of agricultural insurance, this guide can help to get high-quality, well-designed agricultural insurance products to those who stand to benefit the most, increasing the resilience of vulnerable populations. The framework it provides can help to identify both challenges and opportunities before beginning an intervention and to take advantage of the rapidly increasing number of technological advances that can make agricultural insurance work.

To learn more about agricultural insurance, the Digital Development for Feed the Future created Using Digital Tools to Expand Access to Agricultural Insurance. This resource shows USAID missions and implementing partners how to leverage the use of digital tools to expand the use agricultural insurance. 

Photo Credit: International Livestock Research Institute 

Playing The Right Role In Haiti’s Growing Mobile Sector: 4 Key Principles

Digital financial services have been a robust part of the development sector for over a decade and their impact continues to grow. This blog is part of a series that focuses on successful DFS projects that achieve results-driven impact in people’s lives.

By: John Jepsen, Project Director and Senior Advisor, Haiti Finance Inclusive, DAI

It’s an exciting time for mobile money expansion in Haiti. Digicel’s MonCash – Haiti’s largest mobile money deployment – has reached nearly 1 million customers and $400 million in yearly transacted value in 2017. This customer base represents a +1500 percent increase from 2015, the same year Digicel rebooted its strategy, marketing approach, product offering, and sales and training force.

Digicel has achieved these impressive results despite a generally unfavorable enabling environment for mobile money. The digital financial service sector, including mobile money, still operates under the original e-money policy that was drafted in 2010 in response to interest and significant donor investment, particularly by the Bill & Melinda Gates Foundation-funded Haiti Mobile Money Initiative and the USAID/Haiti HIFIVE project. There also have not been partnerships or active dialogue to further develop interoperable systems, shared or common agent networks, or opening of APIs to encourage fintech innovation. These results also came at a time where there was no broad digital financial services donor support or programming in Haiti. Thus, Digicel’s recent results are largely attributable to its own internal, sustained effort.

Yet despite the 1500 percent increase in MonCash clients, Haiti still has the highest un-banked population in the Latin America and Caribbean region. Even if doubling the findings from the 2014 Global Findex, Haiti would still exhibit some of the lowest financial inclusion not just in the Latin American and Caribbean region, but globally. There’s no doubt that there is still a lot of work to do in Haiti. Issues such as diversity of products that focus on including the poor, women, and marginalized populations, financial education, consumer protection and product cost and quality are not well understood. Efforts to promote DFS in Haiti and broader financial inclusion must lead to the safe delivery of a variety of financial services at affordable costs to sections of disadvantaged and low-income segments of society.

The USAID/Haiti Finance Inclusive project, which started in April 2017, is designed to promote broad-based financial inclusion, including the expansion of digital financial services in Haiti. Finance Inclusive’s activities began amidst MonCash’s rapid growth. Thus, the key question for a project like Finance Inclusive is what is the right role for it to play that does not get in the way of natural market growth. Below, I explore four key principles that drive Finance Inclusive’s strategy and specific portfolio of activities to ensure that DFS market growth actually contributes to pro-poor, inclusive economic growth objectives. Taken together, our approach mixed data-driven, evidence-based methodologies with people-based co-creation and behavior change tactics.

  1. Start with an arms-length, neutral mapping and gap analysis of the market

At the heart of Finance Inclusive’s project design is the market systems approach, which relies on contributions from the totality of the digital financial service sector’s players. A tenet of the market systems approach is to develop a deep and nuanced understanding of the macro-, meso-, and micro-levels within the DFS market. The myriad markets that affect digital financial services— commercial banking, microfinance, insurance, and mobile money all have supervisory structures, financial infrastructure, and demand and supply dynamics. As a first project activity, Finance Inclusive undertook a market system mapping to gain insights into how various market players provide, interact or view DFS offerings to gauge current trends and potential developments in the sector. This activity looked at how market players contribute to an understanding of the current DFS sector and relevant perspectives, constraints and incentives associated with sector expansion and the extent to which growth in this sector might strengthen or compliment financial inclusion efforts. From this effort, market players, functions, and regulations were clearly articulated and recommendations were defined to ensure DFS market development considers pro-poor growth dynamics. A sustained understanding of these dynamics throughout project lifetime remains critical.

  1. Develop data in partnership with market players to ensure utilization and uptake

The Finance Inclusive program seeks to develop, share, and encourage utilization of new data and insights, particularly for the demand for DFS. Demand-side interrogation is critical to developing new products and marketing, and it also supports advocacy, behavior-change communications, and financial literacy campaigns and facilitates partnering. The process to develop the data products as well as to encourage utilization of the data is equally critical. Finance Inclusive’s data development approach ensures that local stakeholders are part and parcel of the data collection efforts. Our approach also mixes a variety of data products to contribute to a more comprehensive understanding of the financial sector including through nationally-representative demand-side research such as FinScope Consumer,  consumer-centric data such as from DAI’s Frontier Insights product, gathering ethnographic insights about technology usage among target client groups; and data mapping and analytics in partnership with MixMarket through the production of a finclusion map data analytics platform designed to help users make sense of financial inclusion data.

  1. Ensure policy and regulation support takes an ‘all of government’ approach

Financial inclusion is not the purview of a single government unit. While Haiti’s Central Bank (the BRH) is responsible for the country’s National Financial Inclusion Strategy (NFIS), and it has a distinct financial inclusion unit, its mandate is cross-cutting. It works closely with several other key ministries on issues of education, identification, and sector specific investment strategies. Keeping abreast of policy and political economy issues requires engaging key government champions, maintaining positive momentum, and leveraging local, regional, and international networks and forums such as the Alliance for Financial Inclusion, of which Haiti is a member. Finance Inclusive built its project support strategy directly with the BRH NFIS team; signing a letter of cooperation within the first month of project operations. This not only allowed us to clarify our implementation plan, but it built huge credibility with the BRH NFIS team and avoids duplication of existing efforts and other donor initiatives. Finance Inclusive’s work with the BRH focuses on donor coordination, data and information, and consumer protection, all key issues to support the further development and expansion of DFS and which link to other government objectives such as shared data and education.

  1. Use co-creation with local stakeholders to achieve buy-in for change

Sustainable changes requires building the capacity of and linkages between local market actors and encouraging local ownership of interventions. Market systems approaches stimulate the conditions in which local market actors can collaborate, innovate, and adapt. Finance Inclusive uses co-creation models, creative problem solving techniques, and cross-sector collaboration activities to ensure local knowledge and capacity is not only leveraged but merging toward common vision and purpose. One of the project’s strategic initiatives was a cross-cutting co-creation event with representatives of the financial sector (banks, MFIs, credit unions, insurance companies, and mobile money providers), non-governmental organizations, and community-based organizations. The group worked together to define synthesized market constraints and targeted strategies to tackle them, which included specific recommendations and next steps for work around interoperability and shared DFS infrastructure. Together, the participants also developed a common vision and joint purpose statement to “work together to improve people’s lives and stimulate wealth creation for all through access and use of financial services by all, especially based on technology.”

Photo credit: David Rochkind, USAID

How Bundled Services Are Impacting Over A Million Smallholder Farmers

Digital financial services have been a robust part of the development sector for over a decade and their impact continues to grow. This blog is part of a series that focuses on successful DFS projects that achieve results-driven impact in people’s lives.

By: Trey Waters, Agri-Fin Mobile Director, Mercy Corps

Globally, there are an estimated 500 million farmers who earn their primary living from farming less than five acres of land. Even when these smallholder farmers grow cash crops, they often rely on subsistence production for their families, and many underproduce due to lack of access to markets, technology and financial products.

Mercy Corps’ Agri-Fin Mobile program, supported by the Swiss Agency for Development and Cooperation (SDC), partners with influential private sector actors to develop business models in Zimbabwe, Uganda and Indonesia. These business models provide farmers with financial and rural advisory services to help them increase their production and income. Agri-Fin Mobile worked with partners such as Econet, the largest mobile network operator in Zimbabwe, and TruTrade, a small startup in Uganda, to develop bundled, products that are distributed through digital platforms and at scale. Agri-Fin Mobile’s bundled approach means that all solutions include both rural advisory and financial services. Building off Mercy Corps’ deep understanding of the local agriculture sector, we facilitated partnerships between traditional agriculture stakeholders, such as farmers unions and cooperatives, and non-traditional actors such as banks and mobile network operators. To date, Agri-Fin Mobile worked with its partners to reach over 1.2 million smallholder farmers. Currently, over 225,000 farmers are actively using products and services developed by Agri-Fin partners.Mercy Corps

When testing business models, Agri-Fin Mobile was responsive to the local environment, such as the regulatory landscape and current market conditions, resulting in a variety of partnerships reflecting the appropriate local context. In Zimbabwe, the program partnered with Econet to test a mobile network operator approach, developing a platform, EcoFarmer, to reach farmers with agricultural tips, weather index insurance, and a digital savings product. This model proved to be a huge success reaching over 300,000 farmers. In Uganda, Agri-Fin Mobile worked with smaller startups, such as TruTrade and Ensibuuko, to grow and scale their businesses and is currently running an extended hackathon to develop agriculture technology solutions for refugees in northern Uganda. Finally, in Indonesia we tested a bank-led model working with Bank Mandiri, the largest commercial bank in Indonesia, to expand its agent banking network to farmers and a consortium of partners to develop an agricultural financing scheme that provides access to credit for inputs. Combined, the two models in Indonesia have reached over 160,000 farmers.

While the context for all three countries varied, the program has learned there are key factors that lend to successfully developing, piloting and then finally rolling out these models. First, when finding and establishing partnerships, they should have similar values and goals. By working through existing farmer group unions in Indonesia, we were able to introduce agent banking to group members and build off existing relationships. Second, when working with partners to create a product, you need to put the farmer first. In Zimbabwe, we worked with CGAP and IDEO.org to develop a school savings product using human-centered design, complimenting the existing EcoFarmer offerings. Finally, when introducing a digital solution, the model should include a human interface. Whether they are leaders of a local farmer cooperative, loan officers, or extension agents, these points of contact can act as your on the ground support, and help to increase uptake.

Agri-Fin Mobile began piloting the concept of bringing together different actors to develop solutions and go to scale, and many of the learnings have been adopted by our sister program AgriFin Accelerate. As Agri-Fin Mobile comes to an end in August; Mercy Corps plans to continue exploring how we can develop new business models that engage private sector to reach more smallholder farmers in new regions, countries and contexts.

To learn more about Mercy Corp’s work, visit their YouTube channel here. 

Photo Credits: Mercy Corps

Is Digitizing the Answer to Scaling Youth Financial Services?

Digital financial services have been a robust part of the development sector for over a decade and their impact continues to grow. This blog is part of a series that focuses on successful DFS projects that achieve results-driven impact in people’s lives.

By Sonali Rohatgi, Technical Advisor, Digital Solutions

Youth are often not seen as viable customers by financial institutions given the high dormancy rates and low balances that plague youth savings accounts. Can banks rely on digital channels to attract and retain youth savers more cost-effectively? FHI 360 is partnering with Ecobank to test a digital outreach strategy for youth in Ghana.

Advertised as “a truly mobile account for the mobile generation,” Ecobank recently launched “Ecobank Xpress Account” in Ghana. An entirely digital interest-bearing savings account, the Xpress Account can be opened and operated without a visit to a bank branch. This digital account is driven by the Ecobank mobile banking application, and can be accessed via smart phone or a feature phone. Deposits and withdrawals from the account can be made at any Ecobank Xpress Agent point, bank branch or at the ATM. Alternatively, one can transact through the mobile money agent network, as the account allows customers to push money from their mobile money account to their Xpress Account, and vice versa. With the introduction of this product, Ecobank can extend savings opportunities to unbanked populations such as youth who need to make small and frequent deposits but cannot readily take on the time and cost to visit a bank branch. If successful, Ecobank can scale a youth product offering across Ghana, and eventually across the 30+ countries in Africa where it operates.

How could Ecobank use its new Xpress Account product to reach youth and convert them into active savers? Building upon learnings from other initiatives indicating that SMS reminders can boost savings, FHI 360 and Ecobank set out to determine if pairing the Xpress Account with digitally-delivered financial education could encourage youth to improve their savings and financial management skills. Digital channels used could include SMS, mobile applications, or social media.

To develop an approach, FHI 360 commissioned a phone-based survey with over 800 predominantly urban youth aged 18-24 to understand their access to financial services, goals and priorities, and use of mobile applications. Evenly split between men and women, 25 percent of respondents had a primary education or less, and 23 percent had completed junior high school. The remaining had senior high school or tertiary-level education. The goal of the survey was not to conduct a statistically rigorous study, but to inform a digital engagement strategy for a pilot in Accra.

The survey results surprised us in many ways:

Mobile application use is more limited than expected for urban youth with relatively high educational levels. 45 percent reported that they do not use a computer, and almost 40 percent reported that they do not use any apps on their phone. Almost one-third used their phone to access only Facebook daily, 18 percent accessed only WhatsApp daily, and 16 percent accessed Instagram or multiple apps.

Almost half of all respondents said they do not earn enough to save. 22 percent save in a mobile money account — indicating that many youth are already using digital accounts. 16 percent save in a bank or microfinance institution, signaling engagement with the formal financial system. Less than 15 percent used informal savings groups known as “susus,” and other unregulated methods. Those with higher levels of education were more likely to use bank, microfinance institution and mobile money accounts.

Education, business startup and supporting dependents are priorities. When asked about savings goals, education came out on top, driven mainly by those who had completed at least senior high school and were perhaps looking to save for tertiary education. Business startup was a high priority that cut across all levels of education, followed by supporting dependents. The least popular response was saving to get a loan, followed by saving for consumer purchases such as a phone or motorbike.

Youth don’t use formal credit. While 38 percent of youth reported saving in a financial institution or via mobile money, 60 percent do not borrow at all and 30 percent borrow informally from family and friends. A savings-led value proposition seems to be a more promising way to engage this youth segment in financial services.

When asked about financial education needs, 42 percent prioritized learning how to manage spending, and 26 percent wanted to learn how to build their savings. Accessing and evaluating loans (7 percent) and deciding where to save (8 percent) were less popular. These results suggest that digital tools that allow youth to track and manage their spending and savings can potentially be extended as value-added services to attract and engage them.

FHI 360 and Ecobank used these results to form the approach. We developed a multi-channel outreach strategy, relying on SMS, IVR, in-person financial literacy training and peer education rather than social media channels that had more limited reach. Because youth feel they do not earn enough to save, we focused on demystifying savings. Our financial education emphasized that even small bits of savings can add up quickly, and provided rules of thumb on managing spending. We also encouraged youth to set savings goals, followed up by weekly reminders on progress against those goals to keep them motivated over an extended period of six months.

As our pilot unfolds, we plan to monitor and iterate our approach with constant feedback from youth clients from formal and informal sectors, so we can use the results of our prototype to build a truly customer-centered and scalable youth financial services product.

Photo Credit: Neil Brandvold

How Interoperability Can Strengthen Agriculture and Nutrition

This blog was originally posted on Development Gateway’s blog.  To read the original, click here. 

By Paige Kirby

Food security, or people’s access to “sufficient, safe, and nutritious food,” remains a global challenge.

Lack of access to nutritious food is not only more likely to affect those already facing difficulties such as poverty, economic shock and public health crises; when communities do not have adequate access to nutrition, they have a harder time fighting back against these challenges. As a result, ensuring adequate food security ultimately helps build resilient communities, breaking the cycle of poverty and creating economic growth, greater equality and better development outcomes.

We are proud to announce that Development Gateway (DG) has been working to support FHI 360’s Mobile Solutions Technical Assistance and Research (mSTAR) project to increase food security. Funded by USAID, mSTAR seeks to increase access to, and use of, digital technologies in development.

In our goal of increasing food security, DG and our partner Athena Infonomics (AI) are supporting researchers, program implementers and development partners engaged in Feed the Future programming across Cambodia and Nepal. We aim to identify opportunities for strengthening data and digital interoperability across Feed the Future agriculture and nutrition portfolios to support better-informed decision making.

To strengthen interoperability, DG, AI, and mSTAR have been tackling the challenge of data sharing, accessibility, and use: seeking to understand what data producers and users need and how to support sustainable data usage. Over the past month, DG and AI have conducted a series of key informant interviews with partners and research hubs. While both Nepal and Cambodia offer unique challenges and opportunities, the researchers found commonalities across contexts.

Data Collection: The majority of interviewees (60%) reported using only paper-based data collection tools. Reasons for this preference varied from limited internet connection, to limited program budgets – and most acknowledged that the use of pen and paper makes transforming data into electronic formats time and labor intensive. Interviewees’ preference for either electronic or paper-based data collection – and the various reasons behind this preference – will inform how DG, AI, and mSTAR develop tools and processes to support greater data interoperability and knowledge sharing.

Data Sharing: As in other contexts, most data sharing amongst USAID-supported research labs and implementing partners occurs on an ad hoc or as needed basis. Professional networks – and in some cases thematic convenings – help facilitate this information sharing. Interviewees did express interest in having an ability to access data in a more centralized and standardized way. Particular use cases for this type of open data repository include the ability to reduce duplication of primary data collection and to facilitate resource pooling amongst organizations working in the same catchment area.

Data Use: All interviewees reported using a combination of internal and external datasets to satisfy analytical and reporting requirements. Generally, interviewees also expressed a high level of comfort using data analysis tools. Some expressed interest in learning more about how to incorporate geospatial data into analyses, while others expressed interest in learning new data science software packages. As a key takeaway, in order to facilitate data sharing across partners, we will need to facilitate the sharing of standardized data with detailed methodology notes, in order to ensure partners have confidence in the data quality. We look forward to developing and rolling out tools and processes to help address the challenges and opportunities above. By facilitating greater data and digital interoperability, DG, AI, and mSTAR aim to strengthen knowledge sharing and – ultimately – support better food security outcomes. Stay tuned for updates as our work progresses.

To read the original blog, click here. Photo credit: USAID/Cambodia and Fintract, Inc.