Operations Academy - Pillar III - ICT4D in Agriculture: Digital Rural Finance

The goal of this course is to further build knowledge and capacity among IFAD staff and members of Project Management Units (PMUs) to accelerate the adoption of agricultural digital technologies. The Applications of ICT4D in Agriculture: Digital Rural Finance course builds on the Fundamentals of ICT4D in Agriculture course. This advanced course will further learners’ understanding of key principles and approaches that can be used to integrate digital solutions into IFAD’s work. 

By the end of this course, you will be able to:

1. Understand the concept of Digital Rural Finance in agriculture, as well as agricultural finance, digital financial services (DFS), fintech, and digital platforms.
2. Explain the business case for integrating ICT4D solutions into agricultural finance (including cost benefit for the supplier and the user).
3. Identify the trend towards the platformization of agricultural services, or the rollout of digital platforms to facilitate the coordination of producers, buyers, financial service providers, input providers, and digital extensions.
4. Examine what to consider when designing and implementing digital financial solutions for smallholder farmers (e.g. joint public/private partnership, challenge fund, existing infrastructure, etc.).     
5. Consider the key challenges in the design and implementation of digital financial services in rural contexts. 

The course is comprised of five modules: 

• Module 1: Introduction to Digital Rural Finance 

This module will discuss on how ICT4D is reshaping agricultural finance and how to leverage digital tools to access multiple services and strengthen smallholder farmers’ resilience and business activities. In particular, it will examine how digital finance is part of a broader strategy to facilitate access to markets for smallholder farmers. 

•  Module 2: Digital Payments for Smallholder Farmers 

This module explores the various digital payment infrastructures available to facilitate financial transactions for smallholder farmers. It delves into the different types of digital payment transactions relevant to smallholder farmers. It explains the concepts of Person-to-Person (P2P), Business-to-Person (B2P), and Person-to-Business (P2B) payments, and government-to-person (G2P) payments, highlighting their significance in the agricultural sector. Additionally, it focuses on the role of digital payments in facilitating remittances for smallholder farmers. 

• Module 3: Digital Savings, Credit, and Insurance Services 
   
  This module explores the use of digital credit services for smallholder farmers, focusing on the challenges and opportunities of leveraging alternative data to generate credit scores. It delves into the application of index insurance in the context of smallholder farmers. Additionally, it focuses on the integration of digital financial services within rotating savings and credit associations (ROSCAs) and Village Savings and Lending Associations (VSLAs).
   
• Module 4: Digital Platforms 

This module examines how digital platforms enable greater efficiency and coordination in the rural economy by connecting digital financial services to other services, including digital extensions, input provision and collection points. It discusses how these platforms connect farmers with financial institutions, input suppliers, and relevant stakeholders to streamline the process of accessing credit and purchasing inputs such as seeds, fertilisers, and equipment. Additionally, it delves into agriculture value chain finance, which provides a set of financial instruments that can be applied for agribusinesses at different stages; ultimately to help smallholders access the financing they need to expand. 

• Module 5: Crafting an Enabling Regulatory Framework for Agricultural Digital Finance

This module explores the significance of regulatory frameworks in enabling the successful integration of digital financial services in the rural economy. It focuses on the importance of integrating safeguards and consumer protection measures into the design of projects revolving around digital financial services for smallholder farmers. Additionally, it examines both regulatory, outreach, and cultural challenges that need to be considered when designing and implementing a project centred around digital financial services for smallholder farmers. 

• Module 6: Further Learnings: Emerging Technologies in Digital Finance

This module discusses the potential of blockchain-based smart contracts for reshaping the landscape of financial inclusion, facilitating secure, transparent, and automated financial transactions. It explores the transformative power of crowdfunding platforms, enabling smallholders to access much-needed financial support for their agricultural ventures. Additionally, it focuses on the significance of fintech solutions, providing access to off-grid solar energy to power agricultural devices like pumps and other utilities. 

Vendor

IFAD

Version

1.0

Available language(s)

English (UK)

Topic(s)

IFAD Operations Academy