AGRIFIN ACCELERATE Rural Connectivity Ideation Workshop Introduction Leesa Shrader & Andrew Karlyn AgriFin Accelerate Program April 2018 Nairobi
UBACCA Regional Meeting RURAL CONNECTIVITY IDEATION WORKSHOP AFA Program Objectives With h outrea each ch to 50% % women en & youth uth focus cus
RURAL CONNECTIVITY IDEATION WORKSHOP Approach: Innovation Focus Products & Services for SHF Last Mile Distribution Farmer Capability Tools Technology Start Up Acceleration Alternative Data & Credit Scoring
RURAL CONNECTIVITY IDEATION WORKSHOP Models to a Million Digital mass market Digital Learning & Managed Digital Digital VSLAs TELCO & MFI Bank platform Engagement Platform partnership ZOONA Safaricom Farmer Halotel E-Learning registers Payments MFI Bank Halopesa Savings Loans Loans Savings Inputs VSLA Logistics Credits Mobile FTMA Services Contract Payments Insurance Platform buying Bank Digital Inputs Platform Insurance Credit Payment Market Haloyako Engagement Access Business Loans Intelligence Digital VSLA Training savings E-Learning Coordinators Insurance Insurance Platform & Agents E-Learning Mass Famer Market Groups Users 660K VSLA 1 Linkages Million Learning Groups Users 3-5 Million 1 Million 1.5 Million 1 Million Farmers Customers Users Customers AFAs roles include; AFAs roles include; AFAs roles include; AFAs roles include; AFAs roles include; - Product development - HCD research - Technology build - User experience testing - Product development - Business model - Benchmarking - Data analytics - Data analysis - Business model - Partnerships development - Bank partnerships - Human core design prod. dev. - Content development - Partnerships development - Credit scoring - Product development - Digital client engagement - Partnerships - Strategy development - User experience testing - User experience testing
RURAL CONNECTIVITY IDEATION WORKSHOP Connected Rural Hub Concept WELCOME Transport Plug-In Stations Reliable Services Connectivity Welcome & Help Desk Try Things Out Client Acquisition Health & Rural Solar & Energy Research & Data Collection Nutrition Kiosk Provider Bank Agent/ Mobile Agricultural Money/ Insurance Extension Services Buyers & AgroDealer & FMCG Aggregators AgroVet Cold storage Warehousing STORE Ag & Other Min-Warehousing with Digital Inventory and E-Receipting
RURAL CONNECTIVITY IDEATION WORKSHOP AGENDA Activity Time Opening & Rural Connectivity Overview 8:30 to 9:00 Explore Models of Rural Connectivity Hubs + Lessons Learned 9:00 to 10:00 Coffee Break 10:00 to 10:30 Explore Use Cases for Rural Connectivity 10:30 to 12:00 Lunch 12:00 to 12:45 Ideate Around Rural Connectivity Hubs & Partnerships for Kenya 12:45 to 2:15 Coffee Break 2:15 to 2:45 Synthesize Findings 2:45 to 3:45 Next Steps and Closing 3:45 to 4:00
RURAL CONNECTIVITY IDEATION WORKSHOP Infrastructure Options Rural Broadband Connectivity Infrastructure Varies by Costs (Capex/Opex) | Technical Deployment | Partner Description Organizations • High capital construction by mobile network operators $250K Tower • Mobile phones connect to a cell tower which reaches the internet cloud and fetches data • Low-cost tower solution Cost of building and operating • Reduces the total cost of building and running a $100K Tower mobile network site by up to 70% • Reduces RoI to less than 5 years • Internet signals are sent and received by orbiting satellites • $100k – $200k Satellite Lower cost compared to cables or setting up a tower in remote areas • More efficient than dial-up • Tower rental, equipment placement $50K Fixed Wireless • Point to Point microwave • Microwave Virtual networks • Resells internet from a backhaul system, e.g. fibre $500 - $1000 Hotspot cable or cell towers, to multiple users • Can be managed remotely through hotspot software NB: While the cost implication for different towers are different there exists interdependencies between some of the smaller, lower- cost infrastructure and the large infrastructure e.g. Wi-Fi hotspots depend on the cell towers
RURAL CONNECTIVITY IDEATION WORKSHOP Case Study 1 E-choupal (India) – Off-taker-led ICT-enabled agricultural trade OVERVIEW Core offering: Information system, evolving into services and FMCG retail points and market hub for agricultural trade, extension Choupal Sagar ITC Procurement Hub services, and rural retail E-choupal (sales) points. Target users: Farmers Led by: ITC Limited (an Indian Conglomerate) Services offered Services offered Services offered • Web-based market information, incl. • One-stop retail supermarket – • Purchase produce at pre- Launched in: 2000 price at various procurement hubs agricultural inputs, FMCG, and negotiated price via e- Reach: • Secure a floor price with a specific hub financial product Choupal’s internet, or • 6,000+ hubs, 4 mil. • Training opportunities • Additional training and higher. farmers in total (as of • FMCG products for purchase, and Link healthcare services 2011) • Service as doubled-up hub with to Choupal Sagar for greater services • Each e-Choupal serves • Order system for ag inputs electronic weighbridge, etc. ~600 farmers in 5km Site set-up radius • Sanchalak’s (entrepreneur) house used as kiosk Infrastructure: • Computer and Internet • Phone line or VSAT BUSINESS MODEL SUCCESS FACTORS connection, powered by • Anchors on existing village institutions Some soft finance from ITC to cover costs, while entrepreneurs solar • Tries to understand the communities’ needs (Sanchalak) also bear costs and raise revenue from e-Choupal. • Installed at Sanchalak’s CapEx: (borne by ITC) using ex-middlemen to conduct surveys in house ~$800 to establish an e-choupal with dial-up connectivity and ~ setting up new e-choupals Key partners: • Provides support to Sanchalak, incl. ICT and $2,000 if a VSAT has to be mounted N/A management training, and encourages them OpEx: (borne by Sanchalak) Electricity and internet – ~ $60 to ~ $160 p.a. to offer other services • Partnerships with academic institutions and Support and maintenance – ~ US$100 p.a. Revenue: NGOs to provide appropriate info • Sanchalak earns income from commission on processed • Trades a wide varieties of produce, including soybeans, coffee and oil seeds limiting product seasonality of transaction volume Sources:World Bank, “E - choupal: ITC’s Rural Networking Project”; IT for Change; “e -Choupal – An Initiative of ITC”, 2008
Source: Borgen Magazine
RURAL CONNECTIVITY IDEATION WORKSHOP Case Study 2 VANU (Rwanda) – Low-energy, solar-power cellular network OVERVIEW Core offering: Provides voice and data connectivity, as well as mobile money in VANU Mobile Service Provider Rural Population areas which previously had limited to no coverage. Target users: Rural population Founded by : Vanu Bose Services offered Services offered Uses Launched in: 2016 (in • Low energy cellular network • Regular voice and data • Payment for Rwanda) that can be used across connectivity as well as alternative energy mobile service providers mobile money (Use cases are still in Reach: • 31 cell sites as reaching their early days and are projected to expand) 100,000 people • Plan to reach 1 million people in Rwanda once Site set-up agreements with MNOs Low power technical innovation (50W-90W of power) transmitting 2GSM carriers have been firmed up Infrastructure: BUSINESS MODEL SUCCESS FACTORS • A mini-server contained in • Reduce the power usage of their sites VANU provides coverage as a business – they don’t have any a water proof case, subscribers but work with carriers to extend their networks to which results reduction in power needed powered by solar the rural areas for these networks i.e. they can use solar • Masts cover the road and • Works as a wholesale mobile network; CapEx: 2km on each side of it ~$27,000/site initial set up they don’t have subscribers each carrier OpEx: use the network and pays VANU when Key partners: ~$8,400/year their subscribers use it MTN • Government support in adopting a Revenue: Airtel • ARPU - $1/ month paid by the users solution relevant to the Rwandan BRCK • It is market driven and therefore sustainable w/o subsidies market Facebook • There is a 70:30 revenue share between VANU and the MNOs Sources: Interviews with organization’s management; The NewTimes, “How US firm plans to extend wireless connectivity across rural Rwanda”, 2016; The New Times, “MTN, Vanu deal to increase connectivity in rural areas – officials”, 2018; Forbes, “How Vanu Can Make Rural Cell phone Networks Profitable On $1 A Month And Connect Rural Africa”, 2017
Source: CISION
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