2. GSMA mAgri Programme
The mAgri Programme works with mobile operators, the development
community and agricultural organisations to enhance the livelihoods of
smallholder farmers in emerging markets by improving their access to
information, financial services and supply chain solutions, delivered via mobile
through sustainable business models.
www.gsma.com/magri
@GSMAmAgri
3. Mobile Financial Services:
Opportunity for MNOs
• Cash payments mobile payments
• Bundling mobile information & financial
services
• Rural subscriber data tailored
products
1. Cash to mobile payments:
Reduce transaction costs for agribusinesses who work with thousands of farmers, govts etc while increasing mobile money wallets in rural areas, getting rural sector increasing P2P transfers
Payments are the low hanging fruit for MNOs– but even this requires investment for many MNOs – agent network and liquidity in rural areas to cope with seasonal payments etc
For MNOs to launch savings and credit products- need strong partnerships with banks etc, significant investment in time and resources (expensive to develop and run)
Insurance products have been tried and tested and the loyalty model seems to be taking off now
Once customers are familiar with mobile money & the infrastructure is in place- move to developing additional services – credit,
Merchant payments are a growing area for mobile money industry- big opportunity for rural supply chains (think how often you pay for something vs. send money)
2. Bundled info & financial services:
Worked with 4 services under mFarmer Initiative on info services- new Challenge Fund seeing interest from MNOs in bundled offering
Offer info + finance increase yields/ reduce risk of weather/pests etc, earn more income, receive financial literacy training or info on where they can access loans etc higher chance of re-paying loans.
Build up profile and credit history for farmers – able to receive loans
Innovative ways to increase adoption of mobile money in rural areas-
Vouchers (loyalty model similar to MicroEnsure - farmers are rewarded for using the info service, receive vouchers for inputs via mobile money)
Savings: agribusinesses can pay farmers partly in cash and partly in vouchers for inputs
Credit linked to products- eg. M-Kopa
Subscriber data -> tailored products:
Why are MNOs in a strong position to do this? They have data that banks don’t have
MNOs with Agri VAS products collect data on farmers- crop, location, input requests, transaction history etc.
MNOs realising they can monetise their data
Also use top up transaction history and mobile money history to build tailored products and