The idea:
Customized company MM wallet for farmers
A MM product that allows farmer to ‘commit’ to a certain product/sale, to an agricultural buyer /company [company X.] Company X establishes a ‘wallet’ with MTN; When Company X makes agreement with farmer on amount of produce, known quality – and price of sale - farmers sign up for a Company X wallet. The sale amount is put or posted in the wallet; this can be the choice of the company: Ex] • the amount can be ‘pending’ – it should give the farmer the feelin that the $$ is there in the account, they just can’t access it /withdraw it. o Function: keeps farmer thinking about this amount and may prevent farmer from sideselling for easy cash • company X can advance some portion of the $$ o Function: like fwd contract , and receiving % of payment at start of work but before delivery o Unfulfillment of contracts would mean no further contract from Company X o Being registered as an MM user allows company to track this
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Questions:
- Please describe your idea in further detail. What is the customer need it addresses? What is the benefit it will deliver to the poor?
- Integration along Ag value chains is very weak in Uganda; meanwhile ag is probably the single greatest livelihood and income driver for the poorest and the marginalized poor in Uganda. A product such as this would allow better integration, with easier access to financing and pre-financing which is often the reason farmers side-sell.
- Though at this stage we are more focused on finding ideas that are novel and appropriate for the end-consumer, any idea we test will need to be sustainable. How would this idea appeal to our commercial partners?
- 2 key Challenges for private companies are (a) getting enough product/produce, and (b) enough quality produce. Sourcing from farmers and farmer groups is a challenge, and when they do sideselling is yet another prevalent and major dis-incentivizer for working and investing in ag to both the key major challenges in ag value chains cited above in Idea Summary; (a) and (b).
Jill Shemin April 9, 2012
Other functions:
• building good performance/delivery /credit history
• companies can make bonus payments; offer incentives; etc, and drive more production, better deliveries, etc.