We propose an integrated holistic system linking various existing ICT applications/ platforms within the existing extension and rural development services networks.This will reduce transactions costs for small holder farmers to help bridge the economic divide of dualistic agriculture characteristic of South African agriculture.
121002 aeasa best posterpresentation magri mmarkets jackarmour
VIRTUAL mMARKET SYSTEM
REDUCING TRANSACTIONS COSTS TO
BRIDGE THE ECONOMIC DIVIDE
• Dualistic Agricultural sector in South Africa
• Factors affecting Markets Access:
– Transactions costs
– Economies of scale
– Gap between the formal and the informal markets
30 000 Commercial farmers
National food security &
International Trade (forex)
Small Scale farmers
mostly former homelands
Local food security?
3 000 000
Household and backyard
Household Food Security?
/ Food Sovereignty?
-Access to Markets
-Access to Finances
-Access to Information
• Groenewald (2003) Conditions for successful Land Reform:
“Complementary services and infrastructure are needed in the form
of improved access to financial services, markets and inputs and also
improved transport, health, communications and other
• Dr E. Gabre-Madhin (2006) AEASA Simon Brand Memorial Address,
then Program Leader for Ethiopia’s Development Strategy and Governance,
now CEO of Ethiopian Commodity Exchange, stated :
“the 2nd revolution will be in markets:
– “New exchanges” (self regulated)
– “086 Ag-trade network”,
– low cost V-SAT technology making rural entrepreneurs into
– A warehouse / silo = a potential bank!”
“Mobile communications can help to meet the challenge of feeding an estimated 9.2 billion people by 2050.
The 12 specific opportunities explored in this study could increase agricultural income by around US$138
billion across 26 of Vodafone’s Markets in 2020.” - Sept 2011
ICT / services Gap
• Grameen Foundation AppLab MTM Uganda case:
– Google Earth has the GIS positioning Technology
– Google Trader has the virtual trade platform
– Google sms provides the extension platform
– Grameen Bank - micro-finance (MPESA in Kenya)
– Integrated solution with central database,
– Incentivizing NARYSEC & extension officers
– Corporate social responsibility,
– Targeted GeoTag Advertising
This paper is a plea to bridge the industry and
•Between farmers, agricultural & social development
researchers, extension officers, Government officials
and agri-business practitioners and the often very
distant ICT applications programmers and developers.
NAMC, the Meraka institute mLab and Mobile operators are
key stakeholders in SA.
Working together as an integrated team and with the
correct structures and systems in place, we could do far
more toward achieving Improved Livelihoods and Food
Security in South Africa and beyond.
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