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Agriculture and Rural Development

Does the digital economy provide tourism opportunities for local communities in Africa?

Hermione Nevill's picture
tribe-traditional
The authentic travel experience should be a boon for Africa, but its missing the mark.

Since 2016, tourism market trends have shifted away from “get-a-way” travel to traveling for ‘authentic’ experiences.  This transformation is driven by the world’s largest consumer group—millennials—and amplified by digital platforms and social media but is also echoed across other segments. Destinations and entrepreneurs are catching on and developing ‘off-the-beaten-path’ products that provide travelers greater interaction with local people.

African countries, with their abundant wealth of natural and cultural assets, are perfectly positioned to capitalize on this shift, just as the rise of digital platforms are reducing market access barriers for such products. However, in our new World Bank Group report, we found that while demand for experiencing ‘life like a local’ in Africa is set to outpace growth of arrivals, there are still many supply-side challenges that need to be addressed.
  • Standards: Africa’s market share lags other regions, and many products are not of sufficient standard. 
  • Exclusion and the digital divide: Marginalized groups, often best placed to deliver the product, are at risk of further exclusion. 
  • Community Impact: Bringing tourism into communities also brings other risks which need to be managed. 

Can Social Enterprises improve the agriculture value chain for farmers

Elaine Tinsley's picture
E-soko provides mobile farming tips, pricing and weather alerts to subscribers at a low monthly fee. The photo captures the crop performance difference between an E-soko user (left) and non- E-soko farmer (right) in Kenya. 
Photographer: Elaine Tinsley, World Bank


What are the key pain points smallholder farmers face? Gaps across the agriculture value chain—lack of access to affordable financial products, limited knowledge of high-quality inputs, low usage of technology and market data, and poor market links. Social enterprises (SEs) in the agriculture sector are successfully closing these gaps, believing that the cost of their services or products will be recuperated by the benefits and income gains that smallholders will achieve.
 
For example, SEs implement innovative solutions through information and communications technology (ICT) platforms. Esoko’s text alerts on weather conditions and crop market prices saves smallholders in Ghana both time and money. Shamba Shape Up is a “makeover” style farming reality show that gives advice on improving farms and increasing yields to Kenyan farmers. Digital Green recruits local, established farmers to share their farming techniques—from pest-control to seed treatment—in over 3,500 videos for peer smallholders in Africa and India.

Incentivizing Bangladesh’s shoemakers to be greener

Nadia Sharmin's picture


“200 pieces of Selfie are ready, please call them to collect,” Nurjahan, an entrepreneur selling a local brand “Selfie” shoes, tells her husband to call a local shop owner to pick up his order.

We recently visited Bhairab to get a first-hand look at one of the important industrial clusters in Bangladesh, where Nurjahan’s shoe microenterprise is located.

Bhairab is about 85-kilometer from the capital Dhaka, and its shoe cluster is well organized into around 7,000 factories of which 40 percent are micro factories (employing between two to seven workers). They are mostly family-run, producing low-cost shoes, mostly for the local market at prices as low as just Tk100 – or around $1.25 a pair. Virtually none of these factories have access to bank financing, although some access credit from NGOs. In Nurjahan’s shoe factory, about 45 women and 12 men work in five sheds. Over the last 30 years, her micro business has grown into a small enterprise.

Jobs in Africa: Designing better policies tailored to countries’ circumstances

Klaus Tilmes's picture

Dar es Salaam, Tanzania – one of the many cities in Africa that is expected to see sharp population increases – will need rapid job creation to keep pace with its swift population growth. The city’s new bus transit system – completed in 2015, with a $290 million credit from the International Development Association, the World Bank’s fund for the poorest countries – is now reducing transportation costs, easing traffic and promoting private sector development.
Photo: Hendri Lombard / World Bank


Africa’s working-age population is expected to grow by close to 70 percent, or by approximately 450 million people, between 2015 and 2035. Countries that are able to enact policies conducive to job creation are likely to reap significant benefits from this rapid population growth, according to the Africa Competitiveness Report 2017, co-produced by the World Bank Group, the African Development Bank, and the World Economic Forum. The report also warns that countries which fail to implement such policies are likely to suffer demographic vulnerabilities resulting from large numbers of unemployed and underemployed youth.

Making climate finance work in agriculture

Alberto Millan's picture

Farmers, like these women in Nepal, are eager to help the agriculture sector become part of the solution to climate change. / Photo: Neil Palmer/CIAT
 

It’s widely recognized that agriculture can be part of the solution to climate change. The worldwide agriculture sector currently accounts for between 19 percent and 29 percent of total greenhouse gas (GHG) emissions. A combination of policies, investments and targeted action is critical to achieve a low-carbon and climate-resilient agriculture sector.
 
But the question arises: Where will the money to fund this transition come from? Can farmers alone finance the productivity and climate change adaptation and mitigation changes that are needed?
 
The vast majority of climate finance has traditionally flowed to other sectors, accentuating even more the shortfall in finance for agriculture.
 
Due to perceptions of low profitability, along with high actual and perceived risks, lenders often severely limit the flows of finance directed to smallholder farmers and small and medium-sized enterprises (SMEs) in agriculture. Without access to capital, farmers cannot invest in raising their productivity and incomes, becoming more resilient to climate change and mitigating their farms’ negative impact on climate.
 
But untapped sources of capital exist for making agriculture more climate-smart — namely, in climate finance. A recent World Bank discussion paper, Making Climate Finance Work in Agriculture, explores ways to use climate finance to dramatically increase the flows of capital directed to smallholder farmers and agricultural SMEs, aiming to deliver positive climate outcomes.

Rabobank Foundation and the World Bank team up to strengthen financial cooperatives for agrifinance

Juan Buchenau's picture

The World Bank and Rabobank Foundation are teaming up to strengthen financial cooperatives in rural areas to improve financial services for smallholder farmers and agricultural SMEs.
 
Financial services in rural areas are scarce and expensive. Servicing smallholder farmers spread across wide geographical areas isn’t attractive to mainstream financial institutions as their transactions are small, their cash flows seasonal and returns on investments can be risky due to potential crop failures or weather calamities.

To get access to savings and credit, rural households and farms often establish cooperative financial institutions (CFIs). While CFIs have a strong local presence and knowledge, they often have weak institutional capacity and governance, lack access to information technology, and suffer from political interference. Also, the laws regulating CFIs are often inadequate and supervision is weak, all of which hampers CFIs’ ability to deliver financial services. Often, CFIs don’t fall under the purview of the main financial sector regulator and supervisor, but of other entities that don’t always have the required capacity and expertise.

Why Juba?

Jean Lubega-Kyazze's picture
Construction in Juba
 
The World Bank Group continues to engage in South Sudan despite the odds, and for good reason

Tell people you work in Juba – capital of South Sudan and now the newest member of the East African Community – and more often than not they won’t know where to find it on a map. Those of us who know are often met with doubtful stares when we talk about enhancing trade and competitiveness in a country that is struggling to emerge from decades of grueling civil war, not to mention a 98 percent illiteracy rate, inadequate capacity, a maternal mortality rate of 254 for every 100,000 births and a 250 out of 1,000 infant mortality rate.

Fact is, Juba is situated in the heart of Africa, where such challenges, and the daunting figures that go along with them, exist. But look deeper and you see commitment, potential, and signs of the World Bank Group’s positive impact. In short, you see opportunity.

'If I knew that avocados had value, I would plant more of them'

Cecile Fruman's picture



Emilienne Isenady poses while showing off the crops on her land in Lascahobas, Central Plateau, Haiti.

“If I knew that avocados had value, I would plant more of them,” says Emilienne Isenady, a single mother of six in Lascahobas, in the Central Plateau of Haiti.

Emilienne grows and sells avocados to Dominican buyers and to “Madan Saras” (the local name for women brokers who buy and re-sell products in other cities), who will buy the avocados and transport them using the perilous local “tap taps” – trucks converted into public transportation. She will also sell them in the local market in Lascahobas.

Emilienne is a smallholder farmer, but little does she know that she is already part of an avocado local value chain, nor that there is a better avocado Global Value Chain (GVC) out there facing a global shortage.

Emilienne’s is guiding us to see her avocado trees. As we push aside branches, we do not see neatly planted rows of avocado trees but rather a wild two hectares of scattered mango trees, avocado trees, malanga, sweet peas and pineapples. We are accompanied by Marc André Volcy, Farah Edmond and Jean-Berlin Bernard, three “mobile agents” of the Business Support Service team for the Central Plateau Department.

The team is part of a program that the Haitian Ministry of Commerce and Industry has put in place to support entrepreneurs in micro, small and medium-sized enterprises across the country. The program is supported by the World Bank Group’s Business Development and Investment Project (BDI). There are nine other teams just like them in the nine other departments of the country, all working simultaneously on different value-chain reinforcement initiatives (in such sectors as coffee, cocoa, mango, vetiver, honey and apparel).

Marc, Farah and Jean-Berlin live in the Central Plateau, enabling them to support the avocado producers directly, visiting them often and understanding the local political economy. The team has visited about 80 other smallholder farmers like Emilienne in their department, and has invited them to two public meetings and strategic working groups to present key challenges and opportunities for their avocado cluster. The Central Plateau team has carried out the competitive reinforcement initiative of the avocado cluster in their department with training and coaching financed by a grant from the Competitive Industries and Innovation Program (CIIP), through which they have received in-class training and coaching on how to carry out their field projects. 
 

Trade competitiveness in Uruguay

Gonzalo Varela's picture
For a small economy like Uruguay, integration into the global marketplace is one of the most powerful vehicles for growth and development. Participating actively in international trade allows Uruguayan firms to become more productive, by achieving economies of scale and by learning through exposure to international technologies, know-how and ideas. 

How did Uruguayan firms perform, over the last 15 years, in the global marketplace?


Using the Trade Competitiveness Diagnostic Framework – which we presented today to the Uruguayan public and private sector – a World Bank team examined the performance of Uruguayan firms in global markets in terms of export growth, diversification, quality upgrading and survival;. The team presented a number of recommendations to increase integration and to gain from it.

The main findings of
the report reveal the following:

  • Exports have grown fast thanks to favorable external conditions, but also due to the dynamism of the private sector, as well as to sound trade and investment policies.
  • Tailwinds due to high commodity prices helped export growth. Exports in gross and in value-added terms expanded at double-digit rates, and they expanded even faster among primary and resource-based products. The emblematic example is that of soybean exports, which stood at US$1.5 million in 2001 and which climbed to US$1.6 billion in 2014, making Uruguay an increasingly important player in the world market with a share of 3 percent of total exports.
  • But it wasn’t just tailwinds. The private sector was dynamic enough to seize the opportunity of favorable conditions and penetrate 46 new markets between 2000 and 2013. In just one product, beef, exporters gained access to 30 new destinations, and they secured higher prices in top-quality markets on the back of smart entrepreneurship, quality upgrading and a longstanding government strategy of negotiating market access for the sector. In services, for example, modern, knowledge-intensive sectors such as ICT and other business services also grew at double-digit rates, increasing the knowledge content of the export bundle.

Should governments support the development of agricultural insurance markets?

Daniel Clarke's picture



How governments can ensure that low-income farmers are financially protected against natural disasters, such as droughts, was at the heart of a panel discussion at the “Global Index Insurance Conference,” which concluded earlier this week in Paris.
 

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