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Nairobi, 14th July, 2014. Presentation by Wisdom Alorwuse (RIMFIN) at the "Plug and Play" day, Fin4Ag conference.

Nairobi, 14th July, 2014. Presentation by Wisdom Alorwuse (RIMFIN) at the "Plug and Play" day, Fin4Ag conference.

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RiMFin RiMFin Presentation Transcript

  • RimFin Project Sept. 2013 to May 2014
  • Overview  Project Overview  Execution, Insights and Lessons  Conclusion  Q&A 2
  • 3 Project Overview
  • 4  RIMFin refers to Rice Mobile Finance, an initiative led by ASI  VISA Foundation approved a grant of USD100K for the project
  •  VISA Foundation - Fund Provider  Millicom (Ghana) / Tigo Cash – Training, Execution and Payment platform provider Key Participants
  •  Agribusiness Systems International (ASI) - Facilitating, Training and Organizing farmers  Global Agric Development Company(GADCO) – Rice Buyer, Collaboration and Payment
  • AGRA – Funding the Ghana Commercialization of Rice Program implemented by ASI
  • Key Issues 8 Delayed payments to rice farmers (Side Selling; No loyalty to single Buyer) Lack of Privacy with Payments (Community and social pressure to give loans and gifts) Cash-in-Transit Risk (Cash handling risk / safety) Administrative and Financial burden (Rice buyer)
  • 9 Project Execution, Insights and Lessons
  • Execution: critical success factors are proximity of Tigo Cash agents and availability of liquidity… 10 • Ambassadors • Education • Support • Trust • Coverage • Agents • Liquidity Availability Farmer Buy-in • Trial • Pre-warning • Confirmation Payment • Savings • Buy Airtime • Send Cash (P2P) • Withdrawal Usage • Pay for goods • Send to others • Receive e-cash • Educate others Ecosystem 1 2 34 5
  • Farmer buy-in & gaining their trust was an involving 3-month process, resulting in ~720 farmers educated 11 1 • Farmers are located in 14 communities • Rain-fed (12) • Irrigated (2) • In total, 800 farmers were educated • Rain-fed (420) • Irrigated (380) • This process lasted 3 months from Sept. through Nov. • Building trust with the farmers was critical to the success of project Farm visits - familiarization Broadening buy-in process Ambassador buy-in Extensive farmer education
  • Network, Agent and Liquidity availability: critical for delivering on our promise of speed and reliability 12 2 No MajorTowns Longitude/W Latitude/N Region NetworkAvailability High/Low/Medium AgentAvailability (Yes/No) Ifyes,#of Agents Ifno,closest agent Deg.Min.Sec. Deg.Min.Sec. 1 Town1 05643.301 52138.047 Volta High Yes 4 2 Town2 04911.11 53140.557 Volta Low Yes 2 TownA 3 Town3 2 1 36.541 4551.24 Volta Low no TownA 4 Town4 1 2538.138 51058.572 Volta High Yes 1 5 Town5 1 58 5.671 45338.613 Volta High Yes 2 6 Town6 2 27 56.702 5234.534 Volta High Yes 2 7 Town7 2 19 35.152 54240.589 Volta None no TownB 8 Town8 2 13 52.041 45451.782 Volta None no TownB 9 Town9 1 58 43.182 45458.198 Volta High Yes 2 10 Town10 2 2617.757 54831.796 Volta High Yes 3 11 Town11 05946.889 53446.609 Volta High Yes 4 12 Town12 11633.537 54131.979 Volta High Yes 3 13 Town13 05544.159 5236.76 Volta Medium Yes 2 14 Town14 2 5 29.916 45550.248 Volta Low no TownC 15 Town15 1 41 28.109 53342.538 Volta High Yes 2 Step 1: Location, Network Coverage and Agent Mapping Step 2: Agent solution, fixed, mobile and transit Step 3: Liquidity mgmt. option selection grid
  • The success of the first few payments was critical to send a message to other farmers that it really works 13 3 300 38 52 60 130 215 Trial MayApr.Mar.Feb.Jan. 1,500 18,925 13,601 55,370 138,512 100,000 Feb. Apr.Mar. MayJan.Trial • So far, ~793 farmers have received payment through Tigo Cash • 12 Agents have been involved in supporting farmers with payment • Average amt. paid per farmer is ~USD900 to USD1,000 # of farmers paid per month (2014) (Units) Total amount paid per month (2014) (USD)
  • Prior to the project, only 10% had bank accounts ,~30% had ever used SMS and ~3% had ever used MM 14 4 90.0% 74.0% 60.0% 68.0% 97.0% 97.0% 10.0% 26.0% 30.0% 32.0% 10.0% 3.0% 200180 3.0% 200200 100200 Have ever sent an SMS Bank Accounts Household Expenditure Informal Financial Channels Have ever used Mobile Money Have a Tigo SIM currently (No Bank Account) (“Susu”) (Home) (Farm inputs) (Sch. Fees) (No) (Yes) (No) Farmer behavior survey at early stage of project (Oct. 2013) (N=200) (No)
  • Over 80% of farmers opted to be on Tigo Cash to receive payments for quicker payments and savings 15 4 82.0% 71.0% 85.0% 18.0% 29.0% 10.0% 81 5.0% Immediate action after 1st payment 277 Farmer Payment Network 339 Wallet usage (Tigo) (Withdrew ALL) (Savings ONLY) Buy Airtime Farmer behavior after payments – excl. trial (Apr. 2014) (N=339) Send (P2P) • Significant handholding employed to support farmers on first payment • Continuous education in farmer community to support wallet usage
  • While ecosystem development in the farmer communities is a logical next step… 16 5 …limited amount of effort was put into this for several reasons Significant effort required to support farmers to use Tigo Cash Agent monitoring to ensure readiness was involving Working with banks and super agents to ensure liquidity demanded a lot Resolving farmer issues such as pin resets, process to send cash etc.
  • 17 Conclusion
  • Conclusion: It’s a journey and an evolution, focus on the fundamentals to build trust before anything else... 18 It is critical to deliver on the fundamental promise… (80% signed up for Tigo Cash) Farmers can be moved along the transaction chain if managed closely (30% used the wallet after 1st payment) In my opinion, too many projects try to get to the end goal too quickly and miss the fundamentals…. It’s a journey and an evolution!!!
  • 19 Q&A