‘Role of ICTs for Effective Knowledge Exchange in Market Oriented Extension

across Value Chains’

A Case Study of Radio Market Place Approach in Malawi

By Rex Chapota

#AAEW2015 –ADDIS ABABA13 October 2015

INTRODUCTION

•Agriculture is a crucial sector in Sub Saharan Africa▫Malawi: 39 % of the Gross Domestic Product (GDP), 80 % of the foreign exchange earnings, and 80 % of the total workforce.

•Traditional Ag. extension services are inadequate and mostly inefficient ▫1:3000 extension/farmer ratio for public face to face extension systems.

•Lack of access to critical information, market facilitation and effective knowledge management across actors leads to low yields and low income returns (World Bank 2010).•Alternative pathways for knowledge exchange are a must and more especially ‘up’ the value chain functions e.g. marketing.•ICTs such as Interactive radio enhanced by mobile platforms is one of the solutions.

WHY ICTs IN KNOWLEDGE EXCHANGE ACROSS VALUE CHAIN ACTORS?

•Continued growth in ICT services and uptake worldwide. ▫75% of the world’s population had mobile phones; from 1 billion subscribers in 2000 to 6 billion subscribers in 2012 of which 5 billion is in developing countries (World Bank Press Release for July 2012)▫In Malawi, mobile subscription at 6 million (GSMA intelligence 2015). ▫Radio remains a universal medium of access to information: Used by 95% of the world’s population; and 75% of households in developing countries own at least a radio (UNESCO PRESS 2014).

•Convergence of ICTs such as radio and mobile platforms increases the reach, interactivity and impact (FRI, 2011)•ICTs such as mobile phones integrated in Interactive radio programming offer farmers the voice to access better markets, negotiate for better prices and advocate for favorable market environment (Chapota, R. 2014).

WHAT IS THE RADIO MARKET PLACE?

• A tailor made participatory radio series that focus on addressing market

information services related to specific value chains through use of

innovative radio formats and ICTs for increased interactivity, near to real time

feedback and expanded reach.

▫ Goes beyond sharing of commodity prices RATHER a platform for comprehensive

engagement and knowledge exchange among value chain actors

▫ Was Based on the '4Ps' of marketing: 1. Product 2. Place 3. Price 4. Profit

▫ Implemented under the Radio for Farmer Value Chain Development supported by CIDA

through Farm Radio International , the project focused on the groundnut value chain and

worked with 4 radio stations

▫ The project won 2015 WSIS prize for helping improve production and marketing for

farmers in need” : Malawi and Tanzania

RMP ICT Enhanced Programming 

What ICT Platforms were used in the RMP?

•Interactive radio programming

•Use of Interactive Voice response: Farmers calling into an IVR

line to get the latest market prices and leave a question on

marketing for the broadcasters to handle in consultation with

experts.

•Sometimes farmers could Beep/flash a given number and

received an auto reply SMS on current groundnut prices

•SMS Pull/Push - marketing tips, program alerts, current

market price updates

WHAT WERE THE RESULTS?

1. The ICTs empowered the farmers to have a voice and to fully participate in market related discourse with other market actors.

2. Increased awareness of available markets among farmers, hence, a wider choice of market for their produce.

3. Farmers adopted good strategies for better markets and price negotiation skills for good return on their agricultural investment (collective selling)

4. Knowledge exchange between, among and across actors was enhanced on the 4Ps of marketing (farmers, private sector, buyers, NGOs, government, vendors).

5. Engagement and dialogue of farmers with private sector services at the high end of the value chain increased accountability. E.g minimized cases of cheating and discrepancies on prices among big buyers vs local markets

Conclusion

•The significance of ICTs is not in the technologies as such, but in the possibilities they open up for access to knowledge, information and communications, which are crucial elements in market oriented extension services.

•The benefits include: better, faster and easier access to information, improved interaction and two-way/multi directional communication, cost efficiency and lower transaction costs, automation and standardization, economic and other opportunities, and improved data visibility or transparency.