Types of Research
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- (-) Remove Finance & Investment filter Finance & Investment
- (-) Remove Global & Regional Public Goods filter Global & Regional Public Goods
- (-) Remove Political Economy & Governance filter Political Economy & Governance
- (-) Remove Food Security & Nutrition filter Food Security & Nutrition
- (-) Remove Southern Africa Region and Selected Countries filter Southern Africa Region and Selected Countries
- (-) Remove Sub-Saharan Africa filter Sub-Saharan Africa
- (-) Remove Rural Populations filter Rural Populations
- (-) Remove Smallholder Farmers filter Smallholder Farmers
While literature on achieving Inclusive Agricultural Transformation (IAT) through input market policies is relatively robust, literature on the effect of output market policies on IAT is rarer. We conduct a selective literature review of output market policies in low- and middle-income countries to assess their influence on IAT and find that outcomes are mixed across all policy areas. We also review indicators used to measure successful IAT, typologies of market institutions involved in IAT, and agricultural policies and maize yield trends in East Africa. This report details our findings on these connected, yet somewhat disparate elements of IAT to shed more light on a topic that has not been the primary focus of the literature thus far.
Studies of improved seed adoption in developing countries almost always draw from household surveys and are premised on the assumption that farmers are able to self-report their use of improved seed varieties. However, recent studies suggest that farmers’ reports of the seed varieties planted, or even whether seed is local or improved, are sometimes inconsistent with the results of DNA fingerprinting of farmers' crops. We use household survey data from Tanzania to test the alignment between farmer-reported and DNA-identified maize seed types planted in fields. In the sample, 70% of maize seed observations are correctly reported as local or improved, while 16% are type I errors (falsely reported as improved) and 14% are type II errors (falsely reported as local). Type I errors are more likely to have been sourced from other farmers, rather than formal channels. An analysis of input use, including seed, fertilizer, and labor allocations, reveals that farmers tend to treat improved maize differently, depending on whether they correctly perceive it as improved. This suggests that errors in farmers' seed type awareness may translate into suboptimal management practices. In econometric analysis, the measured yield benefit of improved seed use is smaller in magnitude with a DNA-derived categorization, as compared with farmer reports. The greatest yield benefit is with correctly identified improved seed. This indicates that investments in farmers' access to information, seed labeling, and seed system oversight are needed to complement investments in seed variety development.
Many low- and middle-income countries remain challenged by a financial infrastructure gap, evidenced by very low numbers of bank branches and automated teller machines (ATMs) (e.g., 2.9 branches per 100,000 people in Ethiopia versus 13.5 in India and 32.9 in the United States (U.S.) and 0.5 ATMs per 100,000 people in Ethiopia versus 19.7 in India and 173 in the U.S.) (The World Bank 2015a; 2015b). Furthermore, only an estimated 62 percent of adults globally have a banking account through a formal financial institution, leaving over 2 billion adults unbanked (Demirgüç–Kunt et al., 2015). While conventional banks have struggled to extend their networks into low-income and rural communities, digital financial services (DFS) have the potential to extend financial opportunities to these groups (Radcliffe & Voorhies, 2012). In order to utilize DFS however, users must convert physical cash to electronic money which requires access to cash-in, cash-out (CICO) networks—physical access points including bank branches but also including “branchless banking" access points such as ATMs, point-of-sale (POS) terminals, agents, and cash merchants. As mobile money and branchless banking expand, countries are developing new regulations to govern their operations (Lyman, Ivatury, & Staschen, 2006; Lyman, Pickens, & Porteous, 2008; Ivatury & Mas, 2008), including regulations targeting aspects of the different CICO interfaces.
EPAR's work on CICO networks consists of five components. First, we summarize types of recent mobile money and branchless banking regulations related to CICO networks and review available evidence on the impacts these regulations may have on markets and consumers. In addition to this technical report we developed a short addendum (EPAR 355a) which includes a description of findings on patterns around CICO regulations over time. Another addendum (EPAR 355b) summarizes trends in exclusivity regulations including overall trends, country-specific approaches to exclusivity, and a table showing how available data on DFS adoption from FII and GSMA might relate to changes in exclusivity policies over time. A third addendum (EPAR 355c) explores trends in CICO network expansion with a focus on policies seeking to improve access among more remote or under-served populations. Lastly, we developed a database of CICO regulations, including a regulatory decision options table which outlines the key decisions that countries can make to regulate CICOs and a timeline of when specific regulations related to CICOs were introduced in eight focus countries, Bangladesh, India, Indonesia, Kenya, Nigeria, Pakistan, Tanzania, and Uganda.
This report reviews and summarizes the existing evidence on the impact of access to financial services/products on measures of production, income and wealth, consumption and food security, and resilience for smallholder farmers and other rural customers and their households in Sub-Saharan Africa. This study covers four main types of financial products/services: 1) credit; 2) savings; 3) insurance; 4) transactional products. We also review the very limited evidence on the effectiveness of bundling these products/services together and of combining them with other offerings such as trainings or support for access to markets, and of providing them via digital channels. We note when financial products/services have been specifically designed to serve the needs of rural customers or smallholder farmers, since the needs of these groups are often very different from those of other stakeholders.
EPAR’s Political Economy of Fertilizer Policy series provides a history of government intervention in the fertilizer markets of eight Sub-Saharan African countries: Côte d’Ivoire, Ghana, Kenya, Malawi, Mozambique, Nigeria, Senegal, and Tanzania. The briefs focus on details of present and past voucher programs, input subsidies, tariffs in the fertilizer sector, and the political context of these policies. The briefs illustrate these policies’ effect on key domestic crops and focus on the strengths and weaknesses of current market structure. Fertilizer policy in SSA has been extremely dynamic over the last fifty years, swinging from enormous levels of intervention in the 1960s and 70s to liberalization of markets of the 1980s and 1990s. More recently, intervention has become more moderate, focusing on “market smart” subsidies and support. This executive summary highlights key findings and common themes from the series.
In Mozambique, the legacies of colonial rule, socialism and civil war continue to constrain economic growth and agricultural production. Eighty percent of Mozambique’s labor force derives its livelihood from agriculture, but the nation remains a net food importer. The majority of all farmland is cultivated by smallholders whose fertilizer usage and crop yields are among the lowest in Africa. While Mozambique has experienced reasonable economic growth since the end of its civil war in 1992, it remains poor by almost any measure. In this literature review, we examine the state of agriculture in Mozambique, the country’s political history and post-war recovery, and the current fertilizer market. We find evidence that smallholder access to fertilizer in Mozambique is limited by lack of information, affordability, access to credit, a poor business environment, and limited infrastructure. The data demonstrate that increased investment in infrastructure is an important step to improve input and output market access for smallholders. The main government intervention currently impacting smallholder fertilizer use is the Agricultural Sector Public Expenditure Program (PROAGRI) initiative, however, more data is necessary to assess the impact of its policies and programs.
The Government of Kenya (GoK) has historically encouraged its farmers to use fertilizer by financing infrastructure and supporting fertilizer markets. From 1974 to 1984, the GoK provided a fertilizer importation monopoly to one firm, the Kenya Farmers Association. However, the GoK saw that this monopoly impeded fertilizer market development by prohibiting competing firms from entering the market and, in the latter half of the 1980s, encouraged other firms to enter the highly regulated fertilizer market. This report examines the state of fertilizer use in Kenya by reviewing and summarizing literature on recent fertilizer price increases, Kenya’s fertilizer usage trends and approaches, market forces, and the impact of government and non-government programs. We find that most studies of Kenya’s fertilizer market find it to be well functioning and generally competitive, and conclude that market reform has stimulated fertilizer use mainly by improving farmers’ access to the input through the expansion of private retail networks. Overall fertilizer consumption in Kenya has increased steadily since 1980, and fertilizer use among smallholders is among the highest in Sub-Saharan Africa. Yet fertilizer consumption is still limited, especially on cereal crops, and in areas where agroecological conditions create greater risks and lower returns to fertilizer use.
Farmers in Sub-Saharan Africa (SSA) use less fertilizer than farmers in any other region in the world. Low fertilizer use is one factor explaining the lag in agricultural productivity growth in Africa. A variety of market interventions to increase fertilizer use have been attempted over the years, with limited success. In the past several decades, Malawi has tried to alter that trend through a variety of innovative programs aimed at achieving national food security through targeted input subsidy programs. The best known of these programs is Malawi’s Starter Pack Programme. The Starter Pack Programme was amended twice into the Targeted Inputs Programme (TIP) and Expanded Targeted Inputs Programme (ETIP), and eventually replaced with the Agricultural Input Subsidy Programme (AISP). The efficiency and equity of the Starter Pack Programme and its successors have been the subject of debate. This report reviews the history, implementation, and perceived effectiveness of the various input subsidy schemes in the context of Malawi’s political economy. We find that AISP is credited with significantly increasing maize yields in Malawi. However, we also find that there are serious challenges facing the most recent input subsidy program, ranging from the rising cost of the subsidy to ongoing implementation struggles related to increased bureaucracy and corruption.
Special Economic Zones (SEZs) are generally defined as geographically delimited areas administered by a single body, offering certain incentives (duty-free importing and streamlined customs procedures, for instance) to businesses that physically locate within the zone. This literature review provides a baseline analysis of SEZs and their potential impacts on smallholder farmers in SSA. Criticism on SEZs is distinctly divided between those who criticize on social or environmental grounds versus those who question the economic impact of SEZs. SEZs are often criticized based on perceived negative socio-economic impacts—particularly their negative impact on women, labor, and working conditions. This review includes several country-specific studies that find evidence that SEZs actually have higher environmental standards and higher worker satisfaction than outside the SEZ. Most responses to criticisms do note, however, that the case studies’ results are not necessarily generalizable to SEZs throughout the world. The literature review includes key elements of successes and failures pulled from the case studies of SEZs in SSA. Though the evidence is insufficient to conclusively determine if smallholder farmers receive direct benefits from SEZs and their associated agroindustrial contracts, this review finds that resources provided to farmers (credit at rates lower than bank rates, technical or managerial assistance, pesticides, seeds, and fertilizer on credit) tend to be concentrated among larger farmers. The report concludes with a note on donor involvement as well as recommendations for further research.