A summer in Arusha

Through my academic work in Development Economics in the past year, I learned that boosting smallholder agriculture is a crucial aspect of achieving food security, creating lasting wealth, and improving livelihoods in low-income and middle-income countries. In East Africa, where agriculture is the mainstay and food security is an issue, it becomes doubly important to focus on agricultural productivity, technology adoption, market access and bridging yield gaps. I decided to actively build my knowledge base and gain experience in the field by working with an organization that is on the frontlines of boosting smallholder farmer productivity. Thus, I came across an opportunity with MIT D-Lab to work with Practical Impact Alliance member, Snow International, in the Arusha office of their local company in Tanzania called Positive International.

Positive International is a well-established agricultural inputs dealer in this part of the continent, with country-wide operations in Tanzania, in addition to Kenya, Malawi and Zambia. As a private sector enterprise, Positive distributes agricultural inputs (seeds, chemicals, fertilizers, etc) under the popular local brand, Snow. They distribute their products directly to farmers, as well as through a network of agro-dealers, who perform the crucial function of connecting the farmers with the agricultural input companies. These agro-dealers serve as the first information point for farmers on questions about crop health, harvest, and which technologies to adopt; they are trusted bearers of knowledge.

A compelling MIT J-PAL study, “Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya,” conducted by Professors Duflo, Kremer and Robinson, uses a Randomized Control Trial to study smallholder farmers’ use of agricultural inputs and saliently concludes that time sensitive discounts can help farmers commit to input use for the future (thus compounding farmer incomes through better yields). A novel program designed by Positive International aims to build on the evidence from this study; by providing a planned and budgeted way to access agricultural inputs with advance purchase discounts.

Understanding the needs of smallholder farmers

I am conducting a feasibility study for this new program that Positive International is launching with the support of Alliance for a Green Revolution in Africa (AGRA) and Grameen Foundation. Currently, many smallholder farmers don’t think they can afford agricultural inputs, and sometimes don’t have the right training on what to use to improve their yields. This program offers these farmers a way to purchase inputs at affordable prices through a mass campaign, and aims to leverage the use of mobile money (M-PESA) for ensuring budgetary planning and access to inputs. 

Arusha has lush green and well-hydrated land. Streams of water flow down the Mount Meru in the vicinity, and hydrate all farms and lands in the Tengeru area, where I visited several farmers. The soil is fertile; maize and sunflowers line the roads we cross for our field visits. Farmers here mostly rent farms, ranging between 0.5 acres – 3 acres. But yield gaps persist for many reasons. Firstly, farmers may or may not have sufficient financial resources to invest in the land, leaving harvest less than satisfactory. Secondly, farmers have a present-bias, which means they value their planting for the current season more than planning for the future. Thirdly, farmers may not possess the right information on inputs and technologies. Lastly, even if the farmers produce more, markets cannot always absorb the harvest – they end up losing money to exploitative middlemen. This leaves much to be desired in the space of agricultural interventions.

My typical work day here involves visits to farms in Arusha and its surrounding areas and villages of Tengeru, Usa River, Rundungai, and Ngarenanyuki. Thus far, I have interviewed over 50 farmers and 20 agro-dealers about their needs for such a program, their perceptions of using technology and mobile money, and their local conditions that influence the uptake and impact of such a program. Every day is an immense learning opportunity – whether it is about agriculture, technologies (mobile money or others), or microfinance. I don’t speak enough Swahili, but with the help of patient colleagues and a pocket dictionary, I have begun picking up the language pole pole.

Perhaps the most inspiring visit was to a farm in Tengeru, headed by Mama Elinora who leads a female group of farmers, while teaching them farming and encouraging them to adopt simple technologies that can improve their returns. While her farm size itself was small, she was able to tell me the benefits of each leaf, root and fruit in her garden. Women farmers were rare to come by, and meeting with her was an important step in understanding the agricultural issues from a gendered perspective.

The program that is being implemented by Positive International aims to solve a significant development challenge for smallholder farmers through a market-driven solution, while incorporating a variety of stakeholders in its execution. It is also an interesting experiment to test the potential of mobile money in a country where the expansion has surely been slower than its neighbor, and the world’s early and successful entrant into the mobile money market, Kenya.

On Arusha: town of cultural confluence

On the northern border of Tanzania, four hours from the hustle and bustle of Nairobi, with views of the majestic peak of Mount Meru and a pleasant climate, Arusha is a sanctuary from the hectic urban jungle I am used to.  Swahili itself is a delightful amalgamation of a language and to me, represents the cultural confluence that is Tanzania, in microcosm. It might also be the key to the inherently multicultural nature of the town, reflected in its food, people, art and its myriad places and ways of worship.

Through D-Lab, the International Development Innovation Network (IDIN), and the larger PIA network, I have also had the chance to meet organizations with interesting missions and dedicated staff. I had a chance to visit Twende, a local innovation center where I saw the prototype of a computer being built in a fuel can, and a recycled molten plastic tile. I also had a chance to meet with the East Africa office of Florida-based IDIN partner, ECHO International, and witness their work on conservation agriculture, and sustainable organic farming techniques.

(First published in MIT Practical Impact Alliance's blog, here)