الأدوات والإرشادات

Advances in digital technology and telecommunications are presenting new financial inclusion opportunities for smallholder farmers in rural areas.1 A growing number of payments, savings, credit and insurance products can be delivered digitally to address the financial needs of smallholder households. Smallholders
can especially benefit from mobile phone platforms, which offer immediate, safe access to government subsidies, cash transfers and remittances. The messaging features of mobile phones can complement digital financial services (DFSs) by offering timely information on weather conditions, farming tips, market
prices and potential buyers, which can help increase farming yields and profitability.

Recent advances in technology and increasing penetration of telecommunication systems into rural areas have the potential to make financial services more accessible to smallholder households. Mobile telephony and data networks, coupled with agent networks, can enable the use of digital payments and savings and
provide a platform for credit and insurance, without smallholders having to visit a bank branch. Mobile phones can also bridge information asymmetries by offering weather forecasts and real-time market prices, which can improve the ability of farmers to prepare and respond to inclement weather and price fluctuations.

 This note helps IFAD design and supervision teams to improve the M&Eindicators of VC projects