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 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

A Rapidly Growing DFS Market: What mSTAR Accomplished in Bangladesh

As mSTAR’s project in Bangladesh comes to a close this fall, mSTAR/Bangladesh staff write on their perspectives from four years of a successful project, where mSTAR/Bangladesh helped enroll over 25,000 individuals—most of whom are women—into digital financial service accounts and helped USAID IPs and beneficiaries transact around $2.2 million digitally. The activity brought two new financial products to market with Bank Asia and IFIC Bank, including micro-credit to farmers with lower interest rates and more favorable repayment terms than any other alternative on the market today. Through this effort, mSTAR/Bangladesh facilitated loan disbursements to more than 1,500 farmers to date, with more on the way.  Check out our four-year retrospective infographic here!

By Josh Woodard, Regional ICT & Digital Advisor

When mSTAR first started activities in Bangladesh in September 2013, the mobile financial services (MFS) market was still in its relative infancy, having only launched less than two years prior. At that time, it was very much a domestic remittance service with people using MFS to send money to friends and family elsewhere in the country, much of which was done through unofficial over-the-counter services rather than individual mobile wallets.

Between September 2013 and June 2017:

  • The number of registered mobile wallets grew more than five-fold
  • Active wallets increased more than seven times
  • Average daily MFS transactions grew by almost six-fold.

Source: Bangladesh Bank

Our initial mandate in Bangladesh was to help USAID’s implementing partners digitize their payments, so that implementing partners no longer needed to send people with backpacks full of cash from Dhaka to pay field expenses, such as training allowances. Bangladesh was in some ways an initial testing ground for USAID’s move away from cash in its programming, codified in its Procurement Executive’s Bulletin from August 2014, making electronic payments the new default for USAID awards.

We demonstrated success early on helping two USAID projects transition to mobile payments through a small grants program. The Aquaculture for Income and Nutrition project ended up saving the equivalent of around 600 person days per year in efficiency gains by eliminating cash for training allowances. Digitizing payments for Dnet’s Aponjon initiative reduced processing times to pay their health workers from 30 to 8 days, greatly increasing employee satisfaction.

These benefits inspired other USAID implementing partners to explore transitioning away from cash without grant support from mSTAR. Through a mix of technical assistance and trainings, mSTAR supported 40 USAID programs to better understand digital financial services (DFS), including MFS and agent banking. Through our awareness raising activities over the past four years, we developed more than 70 learning documents and trained close to 600 people on DFS. In total, USAID programs receiving mSTAR support transacted more than $2.2 million, including transactions made to and by their beneficiaries, which numbered more than 25,000 individuals, two-thirds of whom were female.


In 2014, to encourage greater focus on the needs of the financially excluded and underserved, we launched the Mobile Money Consultative Group (MMCG), which promotes dialogue and partnerships and was modeled on previous work done by FHI 360 in Malawi. Over the past three years, the MMCG grew to include dozens of members from the development, telecommunications and financial services sectors, eventually adopting the name Digital Finance Consultative Group to better capture its broader membership base. It was so valued that in anticipation of mSTAR’s closing, members transitioned the group to a new coordinator, UNCDF, which recently hosted the first meeting independently of mSTAR.

As the market grew, mSTAR played a crucial role in ensuring that DFS providers were considering the financial needs of Bangladesh’s millions of financially excluded individuals, many of whom are supported by USAID’s programming in country. We began conducting assessments looking at opportunities for digitizing transactions and expanding DFS offerings, including examinations of saving groups, agricultural value chains, and agricultural mechanization. These have already contributed to the deployment of two digitally-enabled micro-credit products for smallholder farmers, the first-of-their-kind in Bangladesh, as well as modifications to the pricing structure and product offerings of several other providers.

It is refreshing to see that the DFS sector in Bangladesh is finally moving past the pure domestic remittances model to a increasingly holistic one that more broadly meets the financial needs of Bangladeshis—although it still has a distance to travel. In some ways, it is bittersweet to have to end our work in Bangladesh right when the DFS market seems to be picking up momentum. However, I am proud of the contributions we have made to promote inclusive DFS growth in Bangladesh. I am hopeful that our objectives over the past four years will continue to be realized by other actors in the DFS ecosystem we played a small role in shaping.

Josh Woodard is a Regional ICT & Digital Advisor for FHI 360, based out of its regional office in Bangkok, Thailand. He has provided technical oversight to the mSTAR team in Bangladesh since the beginning of implementation in 2013. In addition to the mSTAR blog, he occasionally shares his perspectives on digital technology and development on LinkedIn.

From Farm to Phone to Table: A Case Study Series Explores the Impact of Digital Tools on Agriculture

This post is excerpted from a monthly theme series from NextBillion focusing on agriculture during the month of September. It was authored by Cristina Manfre, senior associate with Cultural Practice LLC, and Christopher Burns, senior coordinator, digital development for Feed the Future at USAID.

Over the past 10 years, and particularly over the past five, the use of mobile phones and internet-enabled, digital tools in farming activities has skyrocketed. Today, the smartphone or tablet is no longer seen just in the developed world; at least one mobile phone now sits in the pockets or hands of over 60 percent of the population in the developing world. Coupled with the increased spread of 3G and 4G connectivity, and the growing presence of mobile money products, low-cost sensors, geospatial visualization and machine learning, what has emerged is a broad set of digitally based applications that have driven greater financial inclusion, more precision agriculture, better data collection and analytics, and more effective information dissemination. Agricultural organizations are increasingly embracing these tools to better provide for the welfare of the communities they serve.

The U.S. Agency for International Development, through the U.S. Global Development Lab and the Bureau for Food Security, is working to demonstrate that digital tools and approaches can improve cost-effectiveness and better development outcomes in food security and nutrition programs. As part of this effort, USAID is launching a case study series to highlight different approaches to digital tool adoption and how these tools are impacting organizational culture, operations and programming.

The series profiles different organizations, from social enterprises to non-governmental organizations and traditional private businesses across a number of regions, from sub-Saharan Africa to Latin America to South and Southeast Asia. Greater attention is being given to Feed the Future (the U.S. government’s global hunger and food security initiative) countries and the newly released target countries under the Global Food Security Strategy. Most organizations and projects being showcased have received some form of USAID assistance.

Read the full blog here and learn how digital tools are being used to enhance development outcomes in food security & nutrition programs.  

Photo Credit: Morgana Wingard for USAID


Want DFS Uptake? Do Feasibility Assessments – PERSPECTIVES FROM MSTAR/BANGLADESH

As mSTAR’s project in Bangladesh comes to a close this fall, mSTAR/Bangladesh staff write on their perspectives from four years of a successful project, where mSTAR/Bangladesh helped enroll over 24,000 individuals—most of whom are women—into digital financial service accounts and helped USAID IPs and beneficiaries transact around $1.83 million digitally. The activity brought two new financial products to market with Bank Asia and IFIC Bank, including micro-credit to farmers with lower interest rates and more favorable repayment terms than any other alternative on the market today. Through this effort, mSTAR/Bangladesh facilitated loan disbursement to 795 farmers. Both banks are interested in scaling up these efforts.  

By Tajmary Akter, mSTAR/Bangladesh Technical Specialist

At mSTAR/Bangladesh, we have found that digital financial service (DFS) feasibility assessments are an excellent method to accelerate DFS uptake. When determining digital financial service feasibility, assessments are integral to understanding and analyzing context. They provide insights to understanding community needs, challenges, opportunities and potential action and are proven to be an effective method for learning and evaluation.

In the Bangladesh context, the DFS market is dominated by mobile financial services, especially person-to-person money transfers; other usage options have not yet reached a significant portion of the unbanked, low income and rural communities. mSTAR/Bangladesh has conducted several assessments since 2013 to understand this and explore opportunities for DFS integration in development working areas, especially health and agriculture.

As a member of the mSTAR/Bangladesh team, I was able to take part in several assessments addressing some of the following objectives:

  • Mapping the existing transaction patterns among key actors of relevant value chains and analyzing existing rules and regulation (e.g. government regulation for mobile money).
  • Identifying the constraints or root causes that explain why DFS is currently not being adopted among unbanked, rural and low-income populations.
  • Identifying opportunities based on assessment findings to troubleshoot existing challenges and accelerate DFS in the broader context.

The assessment findings significantly contribute to troubleshooting challenges by identifying community needs. For example, from learnings identified in assessments, our team was able to contribute to the design and execution of two DFS innovations targeting smallholder farmers and businessmen in rural communities:

  1. A card-based micro-credit facility through agent banking with Bank Asia, in partnership with the USAID Agricultural Extension Support Activity.
  2. An agri-credit facility through mobile bank accounts with the IFIC Bank, in partnership with the USAID Rice Value Chain activity.

Assessments have the potential to help drive DFS innovation by analyzing opportunities in existing transaction channels like our team did in an agriculture value chain assessment in February 2017. This kind of assessment not only explores opportunities at the local community level but also at the organizational level. The assessment showed that adopting DFS in a suitable way could offer an organization’s increased operational efficiency by saving time, resources and costs. Another recently published assessment conducted by the mSTAR/Bangladesh team determines DFS feasibility in agricultural mechanization value chains.

Through different assessments, our team has been able to provide insights and recommendations for why, what and how DFS may integrate efficiently into different sectors. Through these efforts, we have been able to support our overall goal of supporting, building and accelerating the DFS ecosystem in an effective manner in Bangladesh.

For the full list of assessments completed under mSTAR/Bangladesh, see the Technical Reports section on this webpage.

Tajmary Akter has been a technical specialist with mSTAR/Bangladesh since September 2016. She has experience working with agriculture, nutrition, livelihoods and market development programs with an expertise on gender issues. She completed her Masters in Anthropology and has worked as a development professional for more than eight years.

Digital Development for Feed the Future: Building an Innovative Community of Practice to Respond to Smallholder Farmers’ Needs

This post is excerpted from the first blog post in a two-part Agrilinks series focusing on data-driven agricultural development. It was authored by Karina Lundahl, Facilitator for USAID’s Innovation for Data-Driven Agriculture Convening on April 27–28, 2017.

With the continued global proliferation of smartphones, sensors and advanced analytics, opportunities and challenges relevant to smallholder agriculture in emerging economies are increasing. In the focus countries of the U.S. Government’s Feed the Future initiative, smartphone adoption increased an incredible 800 percent between 2010–2015 according to data from GSMA Intelligence. And in 2017, the combined processing power of global smartphones will surpass the processing capacity of all servers worldwide. To create an agile and informed response to technological opportunities addressing the context-specific problems faced in developing regions, a diverse group of thinkers and innovators is required.

Addressing this, USAID, in collaboration with the Sustainability Innovation Lab at the University of Colorado, Boulder (SILC), hosted its second convening focused on building a cross-industry community of practice in data-driven agricultural development. Representatives from the U.S. Global Development Lab and Bureau for Food Security at USAID joined a group of researchers, tech innovators, funders and development practitioners to discuss the state of the industry as well as paths forward for data-driven approaches to agricultural development. Through a series of presentations, panels and workshop activities, three major themes emerged:

1. Opportunities and challenges in the data landscape: collection, analysis, open sharing and distribution

2. How to better incorporate smallholder farmer concerns during design and implementation

3. Engaging a diverse community of practice

Convening facilitator Karina Lundahl unpacks these themes with proven examples in the full Agrilinks blog. Read the post to see case examples of how these themes respond to smallholder farmers’ needs.

Digital Development for Feed the Future is a collaboration between USAID’s Global Development Lab and the Bureau for Food Security and is focused on integrating a suite of coordinated digital tools and technologies into Feed the Future activities to accelerate agriculture-led economic growth and improved nutrition.  

For more information on Digital Development for Feed the Future’s work on data-driven agricultural development, please read the Key Findings Report from the Innovation for Data-Driven Agriculture convening in April 2017. 

Photo credit: Tanya Martineau, Prospect Arts, Food for the Hungry

How Start-ups, Microsoft, Facebook, and Wikipedia are connecting Kenyans to the Internet: New Podcast

“The poorest people don’t have access to media. So to speak, they are in the dark. The only way to enable them to move out of poverty is if we enable them with information and show them the potential of what they can do.”

Evah Kimani on connectivity in Kenya.

A country of 40 million, 15 million Kenyans regularly access the Internet.

Evah Kimani, a Kenyan ICT4D expert, has spent her career making this possible. Trained in computer science, Evah advised mSTAR and SSG Advisors on the popular report, Business Models for the Last Billion. She has 13 years of experience developing Internet products in Kenya, and she has seen how the Internet transforms lives.

Evah spoke to mSTAR on our podcast, mSTAR Presents: Digital Development Leaders, last year. She discussed how the growing digital divide further handicaps an already disadvantaged population and how private sector, non-profits, and the government are innovating to connect rural Kenyans to the Internet.

Take a listen.

Submit Session Ideas for ICTforAg 2017

This blog is modified from the originally published blog on ICTworks.

ICTforAg is a one-day conference which builds on ICTforAg 2015 and 2016, bringing together 300 thought leaders and decision-makers in agriculture and technology from the international development community and the private sector. Community-driven sessions examine how new innovations can empower smallholder farmers, and the communities that support them, through information and communication technologies (ICT).

We are looking for the ICT4D community to sign up to present or register to attend ICTforAg 2017 and examine these trends with an exciting mix of educational keynotes, lightning talks, and group breakouts. An evening reception will be held to foster networking across sectors. Session submission ideas are due April 14!

While this year’s conference takes a particular interest in new ICT solutions that can boost the productivity of both smallholder farmers and agricultural value chains, all possible ICTs, including traditional media platforms, agribusiness IT systems, and existing government support systems, will be discussed.

To answer the real challenges smallholder farmers and agriculture value chain stakeholders face, the conference will have four focus areas:

  1. Where are Digital Financial Services improving farmer finances?
  2. How can Digital Extension Services succeed where analog versions have failed?
  3. What does Private Sector Partnerships – Version 2.0 look like?
  4. Where is Climate Smart Agriculture having impact in mitigating increased variability?

Like previous conferences, ICTforAg 2017 will be a community-driven event. Please submit your ideas for presentations and session topics in one of the four areas listed above. Our aim is to create a day of intense exploration of the already possible and soon-to-be potential of tools like blockchain, drones, sensors, augmented reality, predictive analytics, big data, gamification, and automation, that will move us from talk to ICTforAg action.

Presenters and session leads will play a central role in developing the event and have their ticket costs refunded. Session ideas that also include voices from the field and these cross-cutting themes will be at an advantage:

  • Gender equity
  • Youth engagement
  • Private sector engagement
  • Climate change resilience
  • Fragile and conflict environments
  • Monitoring, evaluation, research and learning

Submit session ideas, register, and read more about the event here.

Empowering Technologies for the Field: Josh Woodard Presents mSTAR’s Fintech Innovations in Bangkok

By Paul Gostomski

The “Financial Technology for Development Workshop” recently took place in Bangkok, Thailand. The workshop is part of RDMA’s Frontier Learning Series, a set of events focused on exploring emerging opportunities at the intersection of science, technology, innovation, partnerships, and international development. The goal of the workshop was to help sort out fiction from reality and offer practical advice to the development community interested in leveraging digital development.

Among other top fintech experts presenting at the workshop, mSTAR’s Josh Woodard, Regional ICT & Digital Finance Advisor, presented on “Tools of the Trade: Empowering Technologies and Methodologies for the Field.” Josh’s presentation focused on digitally-enabled alternatives to informal credit options for farmers in Bangladesh, where 47 percent of the labor force is employed in agriculture. Access to formal credit options in Bangladesh is highly limited, forcing many farmers to choose informal credit options with interest rates as high as 25-31 percent. Moreover, repayment of these informal credit options is due weekly, which is challenging for farmers with limited income generating activities outside of farming, which doesn’t tend to generate income on a weekly basis. The challenging repayment terms and high interest rates lead farmers to rush to sell their harvests. In a rush to sell their goods, farmers do not get their harvests’ full market value.

Josh’s presentation demonstrated the alternative mSTAR has created with two different banks in Bangladesh, Bank Asia and IFIC Bank Limited. mSTAR partnered with both banks to launch two new digitally-enabled micro-credit products for farmers. One uses NFC-enabled debit cards, and the other uses mobile wallets. At 10 percent APR, both of these products have much lower interest rates than alternative options offered by microfinance institutions, as well as much more attractive repayment terms—a single repayment after six months, instead of weekly installments. With these products, farmers can pay after harvest. No longer in a rush to see their produce, they are more likely to receive a better price. In a country where most people work in agriculture, these new products could be critical to stemming poverty and breaking a cycle of debt.

To date, around 700 farmers have already received loans through the two products, with plans to reach at least 10,000 farmers by next year.

To learn more about additional opportunities for digitizing financial services in the agriculture sector in Bangladesh, take a look at the infographic, Digital Financial Services for Agriculture: Opportunities in Bangladesh, and for additional resources on this topic check out our other publications on the mSTAR Bangladesh Microlinks page.

Paul Gostomski is a Program Assistant for FHI 360’s Mobile Solutions Technical Assistance and Research (mSTAR) project. Paul is a recent graduate from the College of William and Mary, where he studied economics. His work at FHI 360 supports mSTAR’s initiative to foster the rapid adoption and scale-up of digital finance, digital inclusion and mobile data in developing countries. 

Mobile Money Solves Risky Cash and Lack of Loans for Farmers in Ghana: New Video

This is the last of a three-week blog series on digital financial services for agriculture. This series showcases mSTAR and the Digital Development for Feed the Future team’s recently released interactive online resource and instructional videos, made to complement The Guide to the Use of Digital Financial Services in Agriculture. The online resource breaks down the steps of how to use digital financial services in agriculture. To view the other blogs, visit the home page of our blog.

Like in many developing countries, agriculture is the mainstay of the Ghanaian economy. 62 percent of Ghanaians are employed in the sector, says Doris Amponsaa Owusu, Business Services Specialist for USAID’s ADVANCE II Project (Agricultural Development and Value Chain Enhancement). ADVANCE II, implemented by ACDI/VOCA, supports the scaling up of agricultural investments to improve the competitiveness of important value chains in Ghana, and is supported by Feed the Future, the U.S. Government’s global huger and food security initiative.

In Ghana, buyers drive from the south to buy food from the rural, agricultural north. But due to a lack of banks in the north, buyers must carry huge sums of money as they travel across the country. Dealing with this amount of cash is risky and cumbersome for buyers and farmers alike.

Doris explains how her ADVANCE II team sat down to think about how they could eliminate the risk of carrying large amounts of cash. Mobile money provided a perfect solution: it diminishes the threat of theft and ensures buyers are able to pay farmers efficiently and smoothly. Plus, mobile money is simple to use and offers the ability to access additional financial services such as savings, insurance, and credit.

To implement the mobile money solution, ADVANCE II partnered with MTN, one of the largest mobile network providers in Ghana. MTN piloted the mobile banking service with a farm in northern Ghana. They first trained a group of nucleus farmers, farmers who contract and provide support to smallholder farmers, in the mobile money service. After being trained by ADVANCE II, the nucleus farmers subsequently trained 1,072 smallholder farmers. Farmers enjoyed the service Doris says, and approached ADVANCE II asking to scale up the project. So ADVANCE II trained input dealers and out grower businesses.

After success with the farmers, out growers, and input dealers, ADVANCE II saw more benefits mobile money could offer. The farming communities Doris and her team work with have savings and loan associations, where each farmer contributes weekly towards production for the next season. “The women still have to keep these moneys in metal boxes kept under the beds,” says Doris. So her team partnered with MTN and Fidelity, a banking firm, to digitize the savings and loan associations.

ADVANCE II and the farmers they work with are excited about the results of mobile money, and plan to scale up the program to 10,000 smallholder farmers. “I would recommend it to any project that would want to implement mobile money or digital finance as part of their project approach,” says Francis Ussuman, Regional Coordinator on the ADVANCE II team.

In the video below, Doris, Francis, and local farmers show how ADVANCE II implemented mobile money in Ghana and impacted the agricultural sector.

As the video shows, digital financial services have the potential to strengthen Feed the Future projects around the globe. USAID is here to help missions and partners identify specific challenges in value chains and integrate digital financial services into those corresponding challenges.

To learn more about how to implement digital financial services in Feed the Future projects, read the Guide to the Use of Digital Financial Services in Agriculture. If you have specific questions or feedback, contact