Connected Farmer Alliance: M-Pawa Field Research Findings

Connected Farmer AllianceM-Pawa Field Research Findings

July 2015

Contact:Adelyn Zhou ([email protected])Drew Johnson ([email protected])

Business Solutions to Poverty

Overview

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1. Executive summary2. Research methodology3. Findings4. Farmer profiles5. Appendix


Executive Summary

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• TechnoServe, supported by Vodacom and Commercial Bank of Africa (CBA), conducted field research on rural M-Pawa awareness and usage as part of the Connected Farmers Alliance (CFA) program. More than 400 rural Tanzanians (30% female) were interviewed, and their input informs the recommendations of this presentation.

• Through our research, we found positive perceptions of M-Pawa and Vodacom mobile money services as a whole. More than 75% of the M-Pawa users surveyed have recommended M-Pawa to others, 54% have recommended it to 4 or more people.

• The vast majority of M-Pawa users signed up in order to store money securely. Others were motivated by the savings interest rate and the potential to receive instant loans (36% surveyed had requested a loan).

• While overall M-Pawa reception is positive, there are a few challenges and opportunities for wider adoption, namely:

1. Limited understanding of M-Pawa product and general finance2. Changes to existing features such as longer loan length, password protection, etc.3. Requests for new features including group savings, fixed rate savings, etc.

• M-Pawa can overcome these issues to become the “Banking system I hold in my hand1” for even more Tanzanians.

1. Description of M-Pawa from Tukuyu Farmer


Overview

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Research represents views of 400+ farmers

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• Quantitiative data for analysis

• 63 question survey

• 339 respondents (93 women, 246 men)

• Qualitiative data and examples

• 20 FGs and interviews

• 70 participants (32 women, 38 men)

Screening Critieria

Focus groups / interviews

409 total respondents, of which 30% are female

Enumerator Surveys

• Selected from Vodacom customer list and TechnoServe Farmer Trainer conversion lists

• Screened for Vodacom SIM and M-Pawa account ownership

• Focused on achieving gender and age diversity


Kilimanjaro

Mara

Mwanza

Shinyanga

SimiyuKagera

Kigoma

Tabora

Rukwa

Tanga

Manyara

Dodoma

Singida

Mtwara

Lindi

Pwani

Morogoro

Iringa

Geita

Katavi

Mbeya

Ruvuma

Njombe

Arusha

Surveyed Tanzanians from multiple rural areas

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• Focus of study in the Mbeya region (Kyela and Mbozi)

• Additional interviews in Korogwe / Tanga and in Dar es Salaam

• Participants represent 52 different villages

Geographies covered


Overview

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Overall positive feedback on M-Pawa features

M-Pawa perceived as safe, private and easy to use

At least 90% of respondents responded “Good” or “Excellent” to each area

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Safe money storage strongest signup motivator

Potentially driven by initial marketing focus on savings

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For loan requesters, trust of Vodacom brand key

Vodacom has reputation for best customer

service for fraud and money

related issues

Variety of reasons for selecting an M-Pawa loan

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Most loans for investment purposes

Investments include farm inputs such as seed, livestock, equipment and business investments such as goods for

resell, store space, etc.

Business investments, rather than emergencies,most common reason for loan requests

Note: Other includes medical expenses, home construction, loan repayments, etc. Each with less than 5% of responses.

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Repayment periods too short for farmers

Current loan length problematic for farmers who are dependent on

harvest cycles. Many farmers did not take out loans because knew

they could not repay within 30 days. They would be even comfortable with a slightly higher loan interest rate if the loan period is extended.

Farmers need repayment periods greater than 30 days

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Users recommend M-Pawa to their friends

Word of mouth potentially important channel for adoption

Women significantly more likely then men to recommend M-Pawa to 2 or

more people

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Success stories of those who use M-Pawa inspire others. In Ngana Kasumulu, 3 farmers who received M-Pawa loans for their farms are motivating the rest of the

villagers to use M-Pawa.


Gender specific findings

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• Among married couples, 50% are aware that their spouse is saving in M-Pawa. 33% don’t know share any information about their savings.

• Before M-Pawa, women either hid their money or brought all of it with them into the field each day. Even if a woman had a bank account, she had to hide the bank account card. M-Pawa is a new solution for that enables her to freely and privately store money.

• Women have found M-Pawa empowering. One woman noted, “It’s helpful because I can now access my own money for family issues without asking my husband for money.”

M-Pawa offers private way to save

Among married couples, 1/3 keep M-Pawa savings behaviors private

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Loan decisions typically without spousal input

Virtually all M-Pawa loan decisions made individually

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Overview

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Farmer Profile: Lucy Gambi

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• Region: Mbozi, Itumbe

• Occupation: Farmer

• How heard: TNS Trainer

• Story: Lucy Gambi, a widowed farmer, tried countless savings methods:

L̶ Lucy initially saved in a bank, but nearest bank was very far away and charged hefty fees.

L̶ She invested her money into livestock, but the animals required care, and were risk to death, injury and theft.

L̶ Lucy began saving in cash in her home. Unfortunately, a thief found it and stole of all her savings.

L̶ Next, she buried her savings. However, when she retrieved the money a year later, it had disintegrated and stores refused to accept it.

After trying out every savings method possible, Lucy finally found M-Pawa, a safer and more secure way.


Farmer Profile: Debora Mwasumbi

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• Region: Tukuyu

• Occupation: Farmer, Business owner

• How heard: TNS Trained

• Story: Debora Mwasumbi runs a small business selling excess maize stock as animal feed. While traveling for work one day, she was was 50,000 Tshs short for transport costs. She checked her M-Pesa account, but didn’t have enough money there either. That’s when she recalled the training on M-Pawa loans from her Technoserve trainers. She requested and instantly received a 50,000 Tshs loan that she used to pay to transport her maize home.


Farmer Profile: Daudi Mwasaga

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• Region: Tukuyu

• Occupation: Farmer, Pastor, Local government leader


• Story: Daudi is a farmer and active leader in his community. Previously, Daudi stored all the church and government donations as cash in his home. Because the collected amounts were small (a few thousand Tshs), it was not feasible to deposit them in a bank every day. However, leaving the money at home was unsafe. After learning about M-Pawa, he started saving all his personal money and the church and government contributions in it. The money is now not only safer, but he also earns interest on it, which he keeps as a bonus for his community work.


Farmer Profile: Grace Mwakanyamale

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• Region: Tukuyu, Rungwe

• Occupation: Seamstress


• Story: Grace Mwakanyamale is a seamstress in Tukuyu. Previously, she saved all her money in her husband's bank account under his name. After learning about M-Pawa from a TechnoServe trainer, she opened her own M-pawa account and started saving money she earned from her seamestress work there. In the few months that she has been using M-Pawa, she has already taken and repaid 3 loans (10,000 Tshs, 10,000 Tshs and 12,000 Tshs each) for household and business expenses.


Farmer Profile: Furaha Mwankemwa

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• Region: Kyela, Mkawale – Ngeleka

• Occupation: Farmer

• How heard: Vodacom SMS

• Story: Furaha Mwankemwa is an early adopter in his village. He first learned about M-Pawa through a Vodacom SMS and decided to go online to research more about it. After reading the positive reviews, he started using M-Pawa for the savings interest. When he needed money for his children’s school fees, he requested and received a 20,000 Tshs loan. After his successful experiences with M-Pawa, he has trained the rest of his village on the benefits of M-Pawa.


Overview

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Age distribution

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Majority of respondents 18 to 45 years old


Occupation

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Farming and small businesses ownershipmost common “main” source of income

51% of men and 26% of women selected farming as main income source. Whereas 29% of men and 44% of women selected small business as main income source.


SIM Ownership

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Most own two SIM cards, with Vodacom as the primary line


M-Pawa usage time

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50% have been using M-Pawa for 6 months or less

Usage behaviorSurveyed those who made at least one deposit

Of those, 36% requested a loan and 25% received one

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Widespread confusion about loan amounts

• “I took three loans but my loan limit remained at 2,000 Tshs. I don’t understand why it isn’t increasing.” – Farmer

• “They should increase the loan amount because it's too small” – Multiple Farmers

• “M-pawa should inform its user things to consider for the one to get a bigger loan.” – Farmer

• “They should approve loan to the people who qualify as they look on how long a person have been using Vodacom and some other characteristics.” – Farmer (Ironic feedback illustrating lack of knowledge because these are factors that determine loan amounts)

A lot of confusion around the loans. Research team either explained or clarified the loan system in virtually every focus group and interview.

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Business Solutions to Poverty TechnoServe | 30

Thank you!


Appendix

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Connected Farmer Alliance 2012-2015:PPP with Vodafone, USAID and TechnoServePilot markets: Kenya, Tanzania, and Mozambique

TechnoServe | 32Business Solutions to Poverty

Goals• Increase productivity, revenue and resilience for 500,000 smallholder

farmers• Improve agribusiness income and efficiencies

Outcomes• Improved efficiency of participating businesses and farmers• Increased adoption of mobile financial services by smallholders• New mobile solutions targeting smallholders

Products / Services

Mobile supply chain management (SCM)

solution for agribusiness (B2B)

Mobile financial services targeted at smallholder farmers

New mAgri Accelerator with an

existing VAS Incubator

In development, launch in Q4 2014 Commence Q4 2014Pilots complete, commercializing

Economy & Finance

Connected Farmer Alliance: M-Pawa Field Research Findings