A compilation of presentations made at the 7th Small Scale Irrigation Multi-Stakeholder Dialogue in Ghana
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• Bundling innovations for scaling farmer led irrigation in Ghana – by IWMI • Solar irrigation bundles: prospects and challenges – by PUMPTECH • GCAP’s Experience with Bundling Innovations and Services to Support Farmer-led Irrigation: A Case of the Peri-Urban Project: Michel Camp Irrigation Scheme – by Food Systems Resilience Project (FSRP)
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A compilation of presentations made at the 7th Small Scale Irrigation Multi-Stakeholder Dialogue in Ghana
- 1. The 7th Small Scale Irrigation Multi- Stakeholder Dialogue in Ghana Bundling innovations for scaling farmer-led irrigation in Ghana Accra, Ghana November 8th, 2022
- 2. Objectives - Share experience on the use of innovation bundles to catalyze FLID; - Identify the barriers and opportunities for farmers investing in innovation bundles; - Identify the roles that various value chain actors can play to support the adoption of innovation bundles for FLID; and - Identify the potential for public and private sector investment in innovation bundles to support of FLID. Today agenda and activity Registration IWMI Welcome by IWMI and ILSSI Nicole Lefore Bundling innovations as a pathway to catalyzing FLID Petra/Minh Solar irrigation bundles: prospects and challenges Moses Tampoe, Pumptech Experience with bundling innovations and services in ADVANCE Projects Cecil Osei The Ghana Commercial Agricultural Project: experience with bundling innovations and services. Galina Okartie- Akko Coffee Break Breakout discussion: Outlook to scaling innovation bundles for FLID All participants Reflection: Key messages from the meeting All participants Meeting closure USAID Lunch and networking All participants
- 3. Bundling innovations as a pathway to catalyzing farmer-led irrigation development International Water Management Institute
- 4. • Innovation bundle arrives when different technological, social, institutional, financial, business, and process innovations, and services are “bundled” together to achieve the desired goal • Bundling innovations is a process • Bundling innovation can be at multiple scales Technological innovation Social innovation Institutional innovation Financial innovation Business innovation Process innovation Goals and objectives What are innovation bundles?
- 5. Single technology or social/economic innovations are not applicable everywhere Why bundling innovations is necessary Different combinations must be developed for suitability to objectives and context Social and technical innovations are not stand- alone solutions Social and technical interact, one innovation may require or even catalyze another
- 6. Why bundling innovations is necessary? Relevant services and solutions exist everywhere that work and fit the context Bundling innovations with these existing services and solutions is de-risking investment Bundling helps to unite actors to address trade-offs Single technologies or innovations may bring trade-offs and opposition
- 7. Bundling solar irrigation for SSI: cross-country scale - Core partners’ investment of ̴US$ 1.5 million annually - Ghana and Mali: attract US$ 1 million impact investment from Shell foundation - Ghana: US$ 5 million grant funding from USAID Core partners Accelerators Oct 20 Jan 21 May 21 Aug 21 Jan 22 Mar 22 Oct 22 Ghana and Ethiopia - Value chain analysis - Solar innovation identified Ghana - Capitalize sale and service networks - De-risking investment Ghana - Expand demand- supply linkage to other regions - GIZ’s de- risking investment Ghana - Market segmentation in three new regions - Identify new partners Ghana - Private sector internships - Tailored business models Ghana - Establish partnership - Market segmentation - Solar bundle pay- go - Demand-supply linkage Mali - Value chain analysis - Private sector partners - Demand segmentation Ethiopia - Hackathon and internship - Digital pay-go credit and client fit assessment - Market segmentation - Demand-supply linkage Multi-stakeholder dialogues to facilitate scaling of farmer-led irrigation and water solutions Mali - Internships - Digital pay-go credit assessment - Multi-private partners - De-risking investment
- 8. Scaling solar irrigation bundles Solar pumps Pay-go/Pay-own Sale and service network Market segmentation Ghana • Tailored business model • Demand- supply linkage • Digital marketing • De-risking investment • Multi- stakeholder dialogues Mali • Digital pay- go credit assessment • Multi-private partners • Impact investment Ethiopia • Innovation hackathon • Private sector internship • Digital credit assessment Demand-supply linkage • Multi-stakeholder dialogues
- 9. Demand and supply linkage to catalyze solar irrigation bundle
- 10. Bundling solar irrigation for SSI: Water supply business
- 11. Bundling solar technologies and services for water supply
- 12. Thank you
- 13. Solar irrigation bundles: prospects and challenges Pick, plug, pump
- 14. A Ghanaian water infrastructure development company founded in 2007 Market leader in the solar water pumping market in Ghana. Available across Ghana at the following locations: Spintex Accra, Tamale, Wa and Bolga Advanced in preparations for one in the middle belt. Focus on solar water pumping ▪ Community Water Supply ▪ Irrigation ▪ Industrial applications Distributor of LORENTZ PUMP SYSTEMS PUMPTECH The Trusted Solar Water Pumping Company 14 © LORENTZ 2020
- 15. 15 © LORENTZ 2020 Pumptech solar-based irrigation bundles Pay-as-you-own (PAY-OWN) All kinds of pumps and warranty Pre-and-post sale services Medium-to-large-scale solar irrigation bundles Smallholder solar irrigation bundles PAY-OWN subsidy for farmers’ SPIS investment from GIZ- GPE: 40% for men, 50% for women PS2 solar-powered irrigation system Pay-as-you-own (PAY-OWN) Pre-and-post sale services
- 16. PUMPTECH The Trusted Solar Water Pumping Company 16 © LORENTZ 2020 Medium-to-large-scale solar irrigation bundles Pay-as-you-own (PAY-OWN) All kinds of pumps and warranty Pre-and-post sale services PAY-OWN subsidy for farmers’ SPIS investment from GIZ- GPE: 40% for men, 50% for women
- 18. • Pumptech offers free training to end user or their appointee on basic operation and trouble shooting. • Pumptech is responsible for regular maintenance of the pump. • Free repairs and/or replacement of components for manufacturers defect 2 years after purchase of Lorentz pumps. • Dedicated professional services available to farmers everywhere due to Pumptech’s multiple branches. Pre-and-post sale services and warranty 18 © LORENTZ 2020
- 19. Two financing modalities PAY-GO • Make an agreement with Pumptech to provide a pump that is programmed to pump water as it is fed with credit • Credit purchase may be done through MoMo, bank account, or directly at the Pumptech office • A code is generated for the user to feed into the pump using a mobile phone via Bluetooth • Pump automatically switches off when credit paid for is used up. • Farmer only pays for water and does not own the pump PAY-OWN • A flexible credit system customized to each farmer’s capacity to pay, allowing farmers to use Pumptech’s solar pump while paying in installments to acquire it. • Involving the payment of an initial deposit equated to a water amount that is programmed into the chip of the pump; and a payment schedule as agreed with Pumptech which may be weekly, monthly, quarterly, or scheduled around the farmer’s harvest times or off-farm income streams. • The agreed payments must be made to continue using the pump after the initial deposit amount has been exhausted. • The pump becomes the farmer’s property after all installments have been paid
- 20. PAY-OWN subsidy for farmers investing in solar irrigation 20 © LORENTZ 2020 Investment from GIZ-GPE: 40% for men, 50% for women Process: 1 Farmer provides the details of his/her water source and daily water needs to pumptech. 2. Based on the data above, Pumptech does a sizing of the system (Lorentz Compass software), generates cost estimates shares with farmers 3. If farmer indicates preparedness, GIZ inspects and approves, farmer pays his quota and Pumptech installs
- 21. PUMPTECH The Trusted Solar Water Pumping Company 21 © LORENTZ 2020 Smallholder solar irrigation bundles PAY-OWN subsidy for farmers’ SPIS investment from GIZ-GPE: 40% for men, 50% for women PS2 solar-powered irrigation system Pay-as-you-own (PAY-OWN) Pre-and-post sale services
- 22. Smallholder farm irrigation Pump controller Water source Water delivery Solar pump 22 © LORENTZ 2020 Solar array
- 23. PUMPTECH The Trusted Solar Water Pumping Company 23 © LORENTZ 2020 Benefits, challenges, and prospects
- 24. • It gives farmers the opportunity to cultivate while paying towards owning the pump. • It gives farmers the opportunity to expand farms as it eliminates the drudgery of manual irrigation. • The technology gives mobile farmers the opportunity to move with their pump since they don’t own the land. • The bundle saves the farmer time and money associated with looking for suppliers of different components of irrigation setup. • Multiple Pumptech offices in the agricultural zone capable of attending to concerns in good time. Benefits PUMPTECH The Trusted Solar Water Pumping Company 24 © LORENTZ 2020
- 25. • It is dependent on trust of the end user. • Being an innovation, it is taking time for people to get used to it. • It is technology dependent and may be a bit sophisticated for some farmers. • Some farmers genuinely cannot afford the affront payment for pumps. • Currently payment is credited in days, but it would be ideal to credit in volume. Challenges PUMPTECH The Trusted Solar Water Pumping Company 25 © LORENTZ 2020
- 26. • Full activation of the Pay Go option will increase access to water for more small holder farmers. • meet the needs of some farmers who do not necessarily need pumps but rather need water pumped. • A more realistic business model since farmers only pay for what they need • The pump is smart, will be more appealing to young people thus will drive interest of a larger section of the population • It creates a business avenue for enthusiastic young people as distributors Prospects PUMPTECH The Trusted Solar Water Pumping Company 26 © LORENTZ 2020
- 27. Thank you!
- 28. Photo Credit Goes Here GHANA MARKET SYSTEMS & RESILIENCE ACTIVITY Small Scale Irrigation Multi-Stakeholder Dialogues: Bundling innovations for scaling farmer-led irrigation in Ghana Mensvic Hotel, Accra Tuesday 8th November 2022 ACDI VOCA: Experience with bundling innovations and services in ADVANCE I & II Projects
- 29. • Traditional Extension systems evolving • ADVANCE II project overview • ADVANCE II Outgrower Business Model • Core actors and features • Type of bundled services • Project results • Other results • Proposed sustainable model • Lessons learned Outline
- 30. Extension Organizations Traditional Extension Services The transfer of knowledge generated by agricultural research. Reaching Smallholder farmers with Services • Public Extension Systems • Private Extension System • Profit oriented • Non-profit • Formal Room training • Field training and demonstrations • Advisory
- 31. Commercialization, Globalization and Climate Change Call for New Services • Markets and market information • Managing (commercial) relationships • Competitiveness • Managing Risks • Financial • market • Environmental • Climate
- 32. Agricultural Development and Value Chain Enhancement II ADVANCE II A Feed the Future Project • Promote adoption of Good Agricultural Practices (GAP) • Make production inputs (Seeds and Fert.) available to OGs. • Increase productivity (yield/area) for OBs and OGs • Build sustainable market relationship between buyers and farmers. ➢ Guarantee market for farmers ➢ Guarantee supply of raw materials for the processors • Build sustainable outgrower business for NF/OBs
- 33. ACTORS ROLE REMARKS Community-based individually-owned farm business(OB) Main financier if no buyer is involved. Owns farm equipment High level trust relations with SHFs or Lead farmers. Smallholder farmers Producers of maize or soybean per contract arrangement High level trust relations with Lead farmer and/or OB Lead farmers Mobilizes SHFs, distributes inputs. High level trust relations with OB and SHFs Field agents (OB) Conducts field supervision and support services for OB Normally has ad-hoc business relations with OB Buyer/processor Main offtaker and/or financier. Driver of innovations Trusted relations with OB, supported by OB network Buyer (Field agent)* Input distribution at OB level. Conducts field supervision and support services for buyer. Not a regular actor in the chain ADVANCE II OUTGROWER BUSINESS MODEL- CORE ACTORS
- 34. ADVANCE II OUTGROWER BUSINESS MODEL Features • Trust-based relations – mostly without written contracts • Tractor ploughing is a core service – mostly over subscribed • Bundled services • Credit based transaction • Barter trade (credit repayment by SHFs) • Direct or indirect service delivery
- 35. ADVANCE II OUTGROWER BUSINESS MODEL Type of Bundled services • Seedbed preparation/Tractor plough • Input credit – mainly seed and fertilizer • Crop insurance • Marketing/aggregation • Post-harvest threshing • Farm support/extension/information • Farm transport • Warehousing
- 36. ADVANCE II OUTGROWER BUSINESS MODEL Type of Innovations Introduced • Soil ripping • Hybrid seed • Hand-held planter, Mechanical Planter • Labour saving farm equipment for women • Digital finance • Digital Information on weather/GAP • Warehousing receipt system*
- 37. Outgrower Business Model Community-Based Outgrower Business Agro-input Company Processor/Buyer Firm Weather forecast ADVANCE Outgrower business dev’t & capacity building Thru GGC Fertilizer & Weedicides Inputs ( seed & fertilizer etc) Training on GAPs, PHH, etc Sales Sales Credit Investment Community Warehouse Business Development Warehouse receipts Storage Grants ADVANCE Collaboration Volunteers/Consultants Linking to VC actors Ag. Information (SMS & Voice mail) Radio Stations Ghana Agricultural Insurance Program Grants Grants Grants Crop insurance Info on prices, weather Information on GAPs Temporal storage Bank/FI Tractor services Threshing, Shelling & extension Contracts Warehouse Contract
- 38. LEGEND FBOs - Farmer Base Organizations FI – Financial Institutions GAPs – Good Agricultural Practices OBs - Outgrower Business PHH – Post Harvest Handling VC – Value Chain VSLA – Village Savings and Loans Association 31 Radio Stations Information on GAPs Training on GAPs, PHH, etc 36 Banks or FI disbursed $ 4,895,023 loans 89 Agro- input Companies Rain forecast Feed The Future Agricultural Development and Value Chain Enhancement Project Feed The Future Agricultural Development and Value Chain Enhancement Project Outgrower business dev’t & capacity building Fertilizer & Weedicides Business Development Collaboration Volunteers/Consultants Ag. Information thru’ SMS & Voice mail Ghana Agricultural Insurance Program Grants Grants Crop insurance Info on prices, weather 1,122 VSLA groups saved $1,716,890 Purchase Inputs Linking to VC Credit actors 424 OBs & 651 FBOs provided $ 6,287,869 worth of inputs 158 Processor/Buyer Firms 143,817 OGs. 1,049,794 MT produce sold worth $ 184,577,631 Sales Contract Tractor services Inputs ( seed & fertilizer etc) Threshing, Shelling & extension Sales Contracts $38,577,902 Investment $ 8,113,842 PROJECT RESULTS (AS AT April 2021)
- 39. OTHER RESULTS • Agribusinesses see opportunity to invest/do business in northern Ghana • Increase in amount and quality of information between market actors • Increased flow of resources • Smallholder farmers seen as viable suppliers of quality produce • Some crops (soybean) gain industrial status
- 40. LEGEND FBOs - Farmer Base Organizations FI – Financial Institutions GAPs – Good Agricultural Practices OBs - Outgrower Business PHH – Post Harvest Handling VC – Value Chain VSLA – Village Savings and Loans Association 31 Radio Stations Information on GAPs Training on GAPs, PHH, etc 36 Banks or FI disbursed $ 4,895,023 loans 89 Agro- input Companies Rain forecast OUTGROWER BUSINESS NETWORKS OUTGROWER BUSINESS NETWORK Outgrower business dev’t & capacity building Fertilizer & Weedicides Business Development Collaboration Volunteers/Consultants Ag. Information thru’ SMS & Voice mail Ghana Agricultural Insurance Program Grants Grants Crop insurance Info on prices, weather 1,122 VSLA groups saved $1,716,890 Purchase Inputs Linking to VC Credit actors 424 OBs & 651 FBOs provided $ 6,287,869 worth of inputs 158 Processor/Buyer Firms 143,817 OGs. 1,049,794 MT produce sold worth $ 184,577,631 Sales Contract Tractor services Inputs ( seed & fertilizer etc) Threshing, Shelling & extension Sales Contracts $38,577,902 Investment $ 8,113,842 SUSTAINABILITY MODEL
- 41. Lessons learned • Trust is the bedrock • Community and social relations improves trust • Credit is important but repayment default rate can be high without effective supervision • Field Supervision costs can increase overheads but manageable. OBs reluctant to invest and relies more on trust. • Introduction of imported hybrid varieties was a game changer • Increased productivity • Spurred local development of hybrids
- 43. GCAP’s EXPERIENCE WITH BUNDLING INNOVATIONS AND SERVICES TO SUPPORT FARMER-LED IRRIGATION A CASE OF THE PERI-URBAN PROJECT: MICHEL CAMP IRRIGATION SCHEME BY FOOD SYSTEMS RESILIENCE PROJECT (FSRP) (November 8, 2022)
- 44. OUTLINE Introduction • Objectives of the Ghana Commercial Agriculture Project (GCAP) • A holistic intervention Innovations introduced at Michel Camp Scheme • Solar Pumped System Irrigation • Guaranteed input supply using the Revolving Fund • Improved post-harvest and sanitation • Access to high-end markets Challenges and lessons learned
- 45. INTRODUCTION • The Ghana Commercial Agriculture Project (GCAP) commenced in 2013 and ended in 2021 • GCAP also managed the Ghana Peri-urban Vegetable Value Chain Project (GPVVCP) from 2018-2021 • The Project Development Objective (PDO) was ‘to improve the productivity and access to markets by beneficiary vegetable farmers in selected peri-urban communities in Ghana’.
- 46. INTRODUCTION • Based on lessons learned implementing GCAP and other Agric Projects the need to provide holistic support was key in designing the Peri-urban Project • The following interventions were implemented under the GPVVCP (aka Peri-Urban Project) • Rehabilitation of the Michel Camp Irrigation Scheme • Rehabilitation of the Angorsikope Irrigation Scheme • Provision of Packhouses for Michel Camp, Angorsikope, and Asokwa Schemes • Capacity building for farmers on improved agronomic practices • Linking of farmers with high-end markets through Productive Partnership Enterprises (PPEs) • Introduction of a Business Manager to provide business and operational support
- 47. INNOVATIONS INTRODUCED Solar Pumped System Irrigation • Reduce the cost of production arising from high fuel and pump maintenance costs. • Facilitate efficient water management practices since farmers now irrigate their fields from a centralized and controlled reservoir. Guaranteed input supply using the Revolving Fund • The project established a Revolving Fund where subsidized starter kits were supplied to farmers for repayment after harvest. • The repayment was lodged into a bank account managed by the farmers association and District Assembly to facilitate the continuous supply of inputs.
- 48. INNOVATIONS INTRODUCED Establishment of Water User Association (WUA) • Farmers were organized into a formidable WUA according to the WUA law (L.I. 2230, May 2016) to facilitate the effective operation and maintenance of the irrigation scheme. • The WUA was trained by GIDA in topics like farmer organization, effective water management, irrigation operation, and maintenance, improved agronomic practices, financial management, marketing, and negotiation skills.
- 49. INNOVATIONS INTRODUCED Improved post-harvest and sanitation • In order to promote post-harvest processing and increase value, the project constructed a state-of-the-art vegetable packhouse for the scheme. The packhouse consists of cleaning sheds, sorting and washing facilities, change rooms, and washrooms. • In collaboration with the District Assembly, the project constructed toilet facilities at strategic locations on farm sites to improve sanitation and wholesomeness of vegetables produced.
- 50. INNOVATIONS INTRODUCED Access to high-end markets • To enhance farm incomes and improve farmers’ livelihoods, the Peri-urban Project established linkages between farmers and seven (7) entrepreneurs in the vegetable market value chain also known as the Productive Partnership Entrepreneurs (PPEs). • These PPEs were supported to provide a ready market for farmers’ produce for sale at high-end markets like shopping malls, hotels, and export market. • Farmers were trained in Green Label Certification and subsequently certified to produce high-quality vegetables to meet high-end market quality demands • Multi-year supply agreements were signed between farmers and PPEs for the specific vegetable supply to specific markets. • The project provided capacity building to farmers on compliance with MOUs and price negotiation skills.
- 51. CHALLENGES and LESSONS LEARNT • The WUA concept is new and for a scheme that is not managed by GIDA, farmers require more time and continuous capacity building to adapt and grow. • The MOUs signed between PPEs and farmers have not been fully complied with by both parties. ✓Farmers have been hesitant to diversify to meet PPEs demand for exotic vegetables ✓PPEs have also failed to offtake the few quantities because it was not adequate and expensive to meet economies of scale.
- 52. GCAP is expected to meet outcomes in year 5 At least 30% improvement in the yield levels of vegetable crops cultivated by small-holder farmers At least a 20% increase in marketed sales through improved access to high-value markets At least 20% reduction of vegetable post- harvest losses (over current levels) among the participating farmers At least a 20% increment in the income levels of farmers cultivating vegetables under the project Nine hundred (900) direct beneficiary vegetable producers and other value chain actors (at least 40% of which are women)
- 54. Breakout group discussion (30 minutes) Group 1 (Farmers and agric extension agents) 1. What new and existing innovations may be bundled to support small scale irrigation in Ghana? 2. What are the barriers and opportunities for farmers investing in these innovation bundle(s)? Group 2 (Private sector companies) 1. What new and existing innovations may be bundled to support small scale irrigation in Ghana? 2. What are the major bottlenecks for private sector interest and investment in innovation bundles? Group 3 (Development partners and NGOs) 1. What new and existing innovations may be bundled to support small scale irrigation in Ghana? 2. Who are the value chain actors that can support the bundling and scaling process? What are the roles that they can play? Group 4 (Research organizations and universities) 1. What new and existing innovations may be bundled to support small scale irrigation in Ghana? 2. How can innovation bundles be applied to support scaling small scale irrigation in Ghana?
- 55. Abena Ofosu Tel: 0244205273 Email: a.ofosu@cgiar.org