A Transparent, Easy Way for Smallholder Farmers to Save | Anushka Ratnayake | TED

Understanding the Challenges of Smallholder Farmers in West Africa

The Landscape of Smallholder Farming

• In West Africa, there are approximately 60 million smallholder farmers, who represent the largest demographic living on less than two dollars a day.

• Many smallholder farmers face hunger annually due to insufficient crop yields and inadequate government subsidies, which often favor larger farms and male farmers.

Financial Struggles and Misconceptions

• Despite significant investments, crop yields per hectare have not improved significantly over the past four decades.

• A common belief is that farmers require grants or credit; however, the real issue is their lack of cash at critical planting times.

• Farmers often express a desire to save money rather than borrow, indicating a need for better saving mechanisms.

Savings Challenges for Farmers

• Although farmers can accumulate small amounts of money through local sales (e.g., selling eggs or goats), they often lack safe storage options for their savings.

• Risks such as theft or natural disasters make it difficult for them to hold onto cash securely.

Innovative Solutions: myAgro's Approach

Empowering Farmers Through Savings

• myAgro assists farmers in Mali, Senegal, and Tanzania by enabling them to save incrementally for necessary agricultural inputs like seeds and fertilizer.

• The program utilizes local entrepreneurs equipped with smartphones to facilitate savings collection from farmers.

Simplified Payment System

• Farmers can pay slowly over nine months using a scratch card system similar to purchasing prepaid phone minutes.

• This method enhances transparency compared to traditional cash transactions where receipts are rarely provided.

Impact on Women and Community Growth

• The design of the savings plan particularly benefits women by providing equitable access to resources; 60% of myAgro participants are women despite only 20% bank account ownership in the region.

Results and Transformations

Increased Yields and Income

• In 2021, average myAgro farmers produced twice as much food as non-participants, resulting in an additional $200 net income—equivalent to a 35% increase for those living on $1.50 daily.

Entrepreneurial Success Stories

• Young entrepreneurs like Demba thrive under this model; he expanded his business significantly after joining myAgro.

Breaking Poverty Cycles

• By offering reliable saving methods directly linked to investment opportunities, myAgro helps families escape poverty cycles while fostering community growth.

Personal Transformation Case Study: Setou

Transformational Farming: A Vision for West Africa

Impact of Smart Farm Investments

• Setou's success story highlights the transformative power of smart farm investments, allowing her family to upgrade from a one-bedroom home to a more comfortable living situation.

• The initiative has positively impacted the next generation, showcasing the long-term benefits of investing in agricultural technology and data.

• Currently serving over 100,000 farmers, there is an ambitious goal to scale this model to reach one million farmers within five years.

• The approach emphasizes harnessing farmers' own savings as a means to significantly reduce poverty and hunger in West Africa.