Purpose and Orientation of Study

1. Rwanda eSoko Review of Market Information Systems and Related ICT Applications in Sub-Saharan AfricaRwanda eSoko ProjectJanuary 2009Dan ClayVOXIVA

2. Purpose and Orientation of Study • Review market information systems in African countries that are especially relevant to the Rwanda/Africa smallholder and small trader context in terms of: • Data needs • Field constraints • Overall level of development • Countries reviewed include: Uganda, Kenya (multiple systems), Senegal, West Africa Regional, and Mali. • These systems are recognized for their success and sustainability (for most) and for the breadth of MIS technology applications, especially mobile phone based, currently employed • Draw lessons learned for potential application in Rwanda

3. Uganda FOODNET • Uganda FOODNET system is perhaps the most relevant MIS of all to the Rwanda context. • Active and successful in neighboring Uganda and has expanded to include price and other market information for Kenya, Tanzania and even Rwanda. • Primarily a post-harvest and market research program established in 1999. • Scope of the FOODNET: 28 commodities from 19 major regional markets across Uganda. • Data collected at retail level on a weekly basis. Expanded price for 32 commodities in four main markets in Kampala on a daily basis. • System also provides useful links and information for agro-enterprises and related business development services (BDS). Use of market surveys to identify market opportunities for business development. • Government of Uganda has more recently established a supplemental program in 6 districts for “grassroots” users: producers and small-scale traders.

4. FOODNET (continued) • Data Dissemination/User Access. Data centrally processed and disseminated through multiple media channels. • Radio broadcasts and national printed news media are used to reach large numbers of stakeholders in the system. • E-mail and fax are also used to connect major trading companies, government agencies, agricultural development organizations and famine early warning (FEWS) programs. • Service linked to regional/international market information networks • ICT Enhancements. • Nowincludes instant price data and reports via SMS messaging. • Based on a computerized central processing facility that fully integrates user demand for selected market information. • Data are made available in local languages via FM radio. • Both National and local market data are integrated through the same central processing facility in Kampala.

5. Senegal MANOBI • Senegal’s MANOBI Market Information System has received considerable attention for its innovativeness and impact. • Overall purpose: Wireless e-services in support of Senegal’s rural and agribusiness sector, especially horticulture and fishing industry. • Works with two local telecommunications companies (Alcatel and Sonatel). • Information transferred to and stored in a central database, analyzed and transmitted to users via a unique ‘multi-modal’ data platform. • MANOBI platform offers value-added services at lower cost than the standard first-generation voice networks of mobile phone operators. • Primary data in the system include: real time data on market prices and deliveries and availability of fruit, vegetables, meat, poultry, and other products at Senegal’s major markets. • Product price and volumes on the markets collected twice daily. These data (45,000/day) are sent/stored on centralized base, analyzed in real time before they are made available through a multi-channel platform known for it’s wireless application protocol (WAP) and SMS systems.

6. Kenya SMS Sokoni • Kenya SMS Sokoni is one of the more successful and sustainable Market Information Systems in East Africa • System is run through the Kenya Agricultural Commodity Exchange (KACE) • In close partnership with Safaricom Limited, one of the leading mobile phone service providers in Kenya • MIS collects daily price and other information on 41 products at Kenya’s 10 major agricultural markets. • Multiple dissemination channels: • SMS is preferred medium for most users. • Market data are also available over the internet and by Interactive Voice Response (IVR), and at market-based kiosks. Also uses FM radio stations to broadcast commodity market prices • Users also receive market information on who is selling what, who is buying, as well as extension messages for producers. • The system also allows users to post offers to buy and sell commodities. • The cost of the system is primarily met through standard SMS charges paid to Safaricom. Charges are the cost of the phone call paid to phone service provider (US$ 0.27); KACE has negotiated for percentage of these fees to cover the cost of collecting and entering the data into the system.

7. Kenya DrumNet • DrumNet is a project of a private sector company, Pride Africa, and was established in 2002 with the goal of providing African smallholder producers with a broad mix of business support services. • Its focus is on marketing and financial information, production methods, agricultural commodity transaction services and microfinancing. • DrumNet platform links large-scale buyers, small holder producers, transporters, and field agents through an integrated marketing and payment system using internet and mobile phone technologies. • DrumNet negotiates contractual arrangements between buyers and farmers, and at harvest time coordinates product aggregation at DrumNet collection points and organizes grading and transportation through established agreements with local field agents and transporters. • DrumNet acts only as an “honest broker” for many commodity transactions between producers and buyers.

8. Kenya RATIN • The Regional Agricultural Trade Intelligence Network (RATIN) purpose is to provide small and medium regional commodity traders with improved early warning marketing and trade information aimed at more efficient and competitive food trade between surplus and deficit regions in East Africa. • Supplement to the larger Kenya SMS Sokoni system and is designed principally for traders, mostly for cross-border movement of product. • Scope of the system is narrow: maize, beans and rice, the main commodities traded in the partner East African countries of Kenya, Rwanda, Tanzania and Uganda. • Distribution of RATIN data through multiple channels, targets “loose associations” of approximately 30 traders. • Monthly bulletins are disseminated to member groups but RATIN also makes use of TV and radio broadcasts (Uganda and Kenya through partners), telephone systems (East Africa), newspapers and the internet (www.ratin.net website).

9. TradeNet (recently renamed to “eSoko”) • Based in Ghana, TradeNet system (recently renamed eSoko) is most comprehensive in Africa in terms of number of countries and extent of commodity coverage. • Product of a private sector company, TradeNet.biz, now functioning in 29 countries, mostly in Africa (including Rwanda) but more recently in Latin America and Asia. Claims more than 800,000 prices (current and historical) from hundreds of markets. • Internet based system designed for mobile phones and an SMS platform. • Provides a potential platform for groups of users of all types interested in providing MIS data to their members. TradeNet services are offered for free, except for the SMS charges by individual country level mobile phone service providers.

10. TradeNet (continued) • Quality and timeliness of TradeNet data varies a great deal from country to country. • There is flexibility to add the markets, commodities and other information that the individual countries define as their priority needs. • Price data for target markets and commodities are collected mainly through existing MIS programs in each country. • Unclear how the data are managed and updated. Each country is responsible for its own information. • TradeNet simply provides a platform for storing/accessing data. • Data for Rwanda available only for limited number of markets and products. Most recent Rwanda price data are for May, 2007, making the current information of extremely limited use for Rwanda users.

11. Mali OMA • Mali Observatoire du Marché Agricole (OMA) is most “tried and true” market information systems in Africa. • In place since 1989, highly participatory and innovative. Initially developed and implemented with USAID fundin and technical support from Michigan State University. • Recently, with funding from Hewlett Foundation, market agents are equipped with cell phones and computers, both of which are used for SMS data transmission from markets to the hub. • Hub is maintained through a data base and team in Bamako. • Price data updated weekly. • Mali OMA is now 100% owned and operated by the producers, a consequence of the participatory nature of its development. • In 1998 Gov’t of Mali engaged the primary stakeholders of the system, including farmers, traders, processors and consumers. The MIS team conducted extensive surveys to identify the priority market information needs of each user group.

12. Lessons Learned • Mobile phone access in Rwanda and throughout Africa continues to grow exponentially. Enormous opportunities for applying this new wave of access to domains never before imagined. • Market information to producers and traders is one of these opportunities. • Systems reviewed in this study are a resounding confirmation of this development. • Provision of relevant and timely market information through SMS and affordable mobile phone systems can significantly improve the competitiveness of smallholder producers in the marketplace and the prices they receive for their product.

13. Structural Constraints • Much Rwanda eSoko can learn from other MIS activities and applications in Africa • Potential for an enhanced MIS in Rwanda to have a positive impact on market efficiency and equity is both high and expanding as ICT becomes more innovative and more affordable. • There are major structural constraints: • First, cost is still too high for most potential users in the sites reviewed • Sometimes due to the lack of competition in telecommunications • Also because the cost of mobile phone ownership and use is beyond the means of smallholders in sub-Saharan Africa. • For some time to come countries can expect to have to subsidize some parts of the system, until the numbers grow and costs can be reasonably diffused.

14. Constraints (continued) • A second almost universal constraint, particularly for internet based systems: • Low bandwidth. Not necessarily a problem for the dissemination of basic price and product flow data, but for many expanded services reviewed in this study it will be. • Improving this infrastructure needs to be a priority for Rwanda and countries interested in expanding ICT applications to markets and other domains. • An expanded eSoko initiative (Phase 2) will help to demonstrate how increased bandwidth can lead to more efficient and accessible markets.

15. Constraints (continued) • Third constraint is low level of basic education and literacy in Rwanda and in countries reviewed. • E.g., in Kenya, though mobile phones are more widely available than ever before, relatively few of mobile phone users (9% in rural areas) know how to send a text message. • Training in the use of SMS, internet and other ICTs not especially difficult to deliver, but must be planned and included in any program using these technologies • Needs special consideration in Rwanda, where literacy and basic education levels are especially low.

16. Providing Real Solutions to Real Problems • Key overarching conclusion of review: Market information systems designers and developers must first and foremost provide real solutions to real problems. • This means investing in understanding farmers, traders, processors and consumers needs for information and making sure that the priority needs are addressed by the system. • Without this investment, the system will have limited impact and little chance for long-term sustainability. • Also means understanding that different users have different priorities in the information and services they require. • This is the role of good market research. E-Soko Phase 1 review of literature and “rapid appraisal” in the field are highly beneficial to orienting Phase 1 of eSoko. • More critical: Expanded Phase 2 research effort targeting the design and implementation of the expanded system in the future.

17. Looking to Future of Rwanda eSoko • Most crucial will be for the Rwanda eSoko team to: • Develop an in-depth understanding of: • User priorities of each user group • Actual use patterns for each group (currently we only have rapid appraisal and hypothetical data) • Potential expansion to a larger number of potential users in light of affordability and other factors. • Take an in-depth look at some of the more relevant MISs in the region, e.g.,: • Uganda’s FOODNET • Kenya’s SMS Sokoni • Mali’s OMA

18. These systems now have 5-10 years of experience with various technologies and services. • Rwanda eSoko must invest in learning: • Precisely what works in these systems and what does not work • How they achieve sustainability and affordability • Experiences of users in accessing these systems • How systems have evolved to become more responsive the users • How they have integrated with systems in neighboring countries to become even more effective (e.g., Uganda/FOODNET and Kenya/SMS-Sokoni).

19. Key question: Will an integrated approach with neighboring systems will be both more responsive to user needs and lower in cost? • Recommend in Phase 2 that Rwanda eSoko technical staff spend 3-4 days in each of the relevant country locations to engage with their counterparts and to participate in small group discussions with the major user groups in these countries. • Need for a National stakeholder workshop to frame out the expanded future system. • Include knowledgeable leaders of the Uganda, Kenya, Mali, and other highly relevant and innovative systems. • Many lessons learned from experiences elsewhere and stakeholder workshop would be a good forum to develop a roadmap for the future. • “Getting it right” from the start will have a significant payoff in terms of cost/benefit and resulting sustainability. • Establishing partnerships with private sector mobile phone service providers are key. The more sustainable systems are those in which there are incentives for service providers to be engaged and to provide services at a cost, even if at a discounted cost.

20. Questions for the Rwanda eSoko team to consider in planning for Phase 2: • Subsector Coverage? Currently mosly retail price information on 22 different products and in 41 markets. There is room for expanding the number of products to be covered. More importantly, the possibility of adding wholesale prices to the system will undoubtedly be welcomed by traders. • Data Collection Procedures? Few observations that are made per market raise questions of reliability (sampling) and collection on a once weekly is limiting, given the rapid fluctuation in product volume and price. Other countries collect priority data daily and lower priority data weekly. Will this be feasible in Rwanda? • Range of Services? Common denominator of most Market Information Services around the world: collection and reporting of price information for major commodities traded in major markets on a weekly or more frequent basis. The more advanced programs offer an impressive array of expanded services, in terms of what they provide and how they provide them. Some of these may figure into the priority list of Rwanda’s users in the future.

21. SMS text messages Automatic SMS alerts (triggered by price points or other values) SMS codes Customized market reports and comparisons Posting buy/sell offers Contract negotiation services Completion of sales transactions Market volumes and flow data Filtering for specific markets and commodities Food aid amounts available in markets Prices and availability of agricultural inputs, supplies and tools Micro-finance information (availability and rates) Price data from neighboring countries (for cross-border trade) Dissemination of data via radio, TV, newspapers, fax, and internet (websites and e-mail) Real time price and transaction data Satellite linking of radio stations Wireless Application Protocol (WAP) for dissemination Interactive Voice Response (IVR) Market-based kiosks. Scheduling departures and returns (alert system for fishing boats) Linkages to Famine Early Warning Systems (FEWS) Identification of market opportunities Extension services (production techniques, inputs use, etc.) Services linking buyers, small holder producers and transporters Forecasting weather Providing foreign exchange rates and conversion Reporting market news (events affecting prices and volumes, etc.) Graphical comparisons (of markets, commodities, time periods, etc.) Integration with Google Maps Other miscellaneous business development services (BDS). Potential Market Information Services

22. Rwanda eSoko as Global Platform for Global Sales? • Phase 2 consideration for higher level services in support of other agricultural sub-sectors/value chains not currently supported by the Rwanda MIS. • Most important is the coffee subsector. • Coffee is Rwanda’s most important export crop • Enormous need for establishing improved market access, particularly for specialty coffee markets. • Global buyers need to know what coffee stocks are available, by grade, and by washing station. • Rwanda eSoko can have a significant impact in coffee marketing if it can provide a platform for the country’s 115 coffee washing stations. • A second stage consideration is an online marketing system for posting buy/sell offers and transacting deals. • Additional information on transportation and other logistics options will help to solve the coffee subsector’s most difficult challenge and the number one reason for buyer dissatisfaction today.

23. Thank You!