Business Transactions for Smallholder Farmers and Entrepreneurs via DRUMNET

As information and communications technology (ICT) makes new forays in the field of microfinance, this document explores the operations of a financial and information services network (DRUMNET) initiated by PRIDE AFRICA. The network seeks to provide a package of value added services that address the grassroots needs of farmers, from financing to information, and from marketing to savings. All the information is sourced from one platform/ info-kiosk located in close proximity to farms and markets.

The document informs about the unique features of Drumnet:

• Has wide outreach to dispersed rural clientele through cooperatives and informal self-help groups;
• Provides improved access to new agricultural technology, financial and non-financial information to poor farmers;
• Facilitates information flow between farmers and formal financial system, thereby supporting income-generation, business growth and diversification;
• Helps in appraisal and recovery of loans and mobilizes savings linked with participating financial institutions.

The paper also provides information on:

• Delivery technology and network mechanism;
• Information and financial services offered by Drumnet;
• Social impacts of Drumnet on the targeted population;
• Sustainability issues of the Drumnet enterprise.

Finally, the document lays down the lessons learnt and the challenges present:

• Necessity of a commercially sustainable information exchange to an economically diverse and geographically dispersed population;
• Need of better financial and market information to help farmers earn better profits;
• Improvement of key constraints such as low tele-density, collapsing infrastructure and high operational costs.