AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by John Kihia)


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Microcredit and Crop Agriculture: New Technologies and Other Innovations to Address Food Insecurity among the Poor
ROOM: Tsavo B
Chair: Mr. Shadreck Mapfumo, Vice President, MicroEnsure, South Africa
Panelist: Mr. John Kihia, Country Director – Kenya, KickStart International, Kenya
Panelist: Mr. Michael Njuguna, Director Finance & Business Development, Africa Harvest Biotech Foundation International (AHBFI), Kenya

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AMERMS Workshop 7: Microcredit and Crop Agriculture to Address Food Insecurity (PPT by John Kihia)

  1. 1. Agriculture Water Management: An Essential Solution to Poverty in Africa John Kihia, Country Director, Kenya 8th April 2010
  2. 2. True Nature of Agriculture in Africa • 70% of the population live in rural areas as small scale farmers • ½ to 5 acres per family is common • Struggling in cash/market economies • Not enough food to feed family • Other sources of income scarce • Perceived as a problem • Are they really a problem?
  3. 3. Smallholder Farmers • Have access to land • Have basic skills and labour available • Industrious and Innovative • Entrepreneurial, willing to invest time and energy • Motivation to succeed, ready to use whatever they have to look after their families • In aggregate: There is massive reservoir of unrecognized, unexploited capital in form of social/human (not financial) waiting for a practical opportunity – A Sleeping Giant
  4. 4. Closer look at Africa • Costs? Risk? Returns? Facts • Huge Agricultural potential But • Terrible Food Shortage Famine / Malnutrition Yet • 40% produce wasted So What is Wrong?
  5. 5. A List of things has been identified •Seeds •Post harvest storage •Soil fertility •Local Value adding •Knowledge/Skills •Finance / Credit •Information about Markets •Regulations •Access to Markets •Cooperatives/Associations •Infrastructure
  6. 6. Fact •Only 4.9% of Agriculture in Africa is irrigated, the rest is rainfed •Some parts – 2 rainy cycles/year •Most parts – 1 rainy cycle/year
  7. 7. Feast & Famine Cycle: Supply Curve Feast Food Production Famine Time
  8. 8. Feast & Famine Cycle: Demand Feast Food Production Demand Famine Time
  9. 9. Effect of Increasing Rainfed Production! Feast Food Production Demand Famine Time
  10. 10. Need to AddWater!! If Water is Available all year: • Supply and demand is aligned • 3 – 5 crops per year • Can plant high value vs. drought resistant - more produce all the time
  11. 11. Irrigated Production Aligns Supply & Demand Food Production Supply Demand Time
  12. 12. KickStart International Inc. KickStart International is a social enterprise developing small scale businesses in Africa Mission Economic Growth . Employment . Wealth Creation Operates Country programs: Kenya, Tanzania, Mali & Burkina Faso B2B: 18 Sub Saharan Countries
  13. 13. KickStart’s Strategy Work like a business, not like a charity 1) Identify Profitable Business Opportunities 2) Design the Required Capital Equipment 3) Establish Supply Chain: manufacture, distribute and work with dealer network 4) Develop the Market: advertise, promote 5) Impact Assessment 6) Exit Marketing Support & Continuous Impact Monitoring
  14. 14. MoneyMaker Irrigation Pump Super MoneyMaker Pump • Manually operated • Two-cylinder • Foot operated • High performance MoneyMaker Hip Pump • Manually operated • Low-cost • Light weight • Portable
  15. 15. Felix • Was earning US $40/month • Bought a pump and returned to his village • Now making US $ 1,000/month • Felix and his wife employ 3 people full-time & 10 during harvest • Now spends 10 times as much as he did before on: – Seeds – Fertilizers – Agro-chemicals
  16. 16. Felix: Not an isolated case By end February 2010: • Over 144,000 pumps out there • At least 88,600 “Felixes” using them • Over 443,000 people out of poverty • Together they are generating over US$ 88.6 Million annually
  17. 17. Africa’s Potential Africa •The Challenge is tough but it can 13 -15 Million be met! • Africa’s population is growing (1.5 billion by 2050) • Need more and more food, all the time! Irrigation is essential •Potential users for MoneyMaker pumps estimated to be 13 - 15 million families in SSA
  18. 18. THANK YOU