December 2011 – Mobile Applications for Agriculture and Rural Development (m-ARD)

Intelecon Research & Consultancy has just completed a project on Mobile Applications for Agriculture and Rural Development (m-ARD apps) for the World Bank. The full report (http://tiny.cc/pf4f6) provides policy-makers and development practitioners insight into the impact of this sector as well as mechanisms to support sustainable innovation.

The project included an analysis of the innovative business and operating models that are used by mobile applications in the field of agriculture and rural development (ARD). The study covered three countries in-depth – Kenya, Philippines and Sri Lanka – and 15 applications. In addition, a survey of 92 applications worldwide was conducted in order to establish common business models as well as common success factors. Brief analyses of each of the 92 mobile applications that are being used for across the world are available on the World Bank’s website at www.worldbank.org/ict/m-ard.

One of the main findings of the report is that an enabling platform is probably the most important factor for m-ARD apps. Such platforms could facilitate interactions amongst ecosystem players, provide access to more users, offer technical standards, and incorporate payment mechanisms.

The hyperlocal nature of m-ARD apps makes scaling up challenging for providers. It is crucial for providers to leverage existing information resources, and providers who can aggregate and customize content from different sources will have an advantage. Governments and donors can play a crucial role by opening up access to publicly available data and ensuring that this data is accurate and as granular as possible.

The report found that some m-ARD apps are achieving sustainability, scalability, and replicability despite various challenges. Governments and donors play a critical role in transitioning m-ARD apps towards sustainability by covering initial capital costs. Those m-ARD apps that are able to achieve low operating costs are also more likely to be sustainable.

One of the main obstacles facing m-ARD apps in the progression towards sustainability from the pilot phase, is the lack of appropriate funding. The report recommends that development practitioners and donors consider using a variety of financing methods such as special purpose donor funds, apex funds, USFs and PPPs. Working with the private sector, specifically the Venture Capital/Private Equity market is vital because of the transfer of business skills to providers.

In order to achieve sustainability, m-ARD apps are utilizing a diversity of nonchargeable, transactional, embedded services or freemium pricing models. Some of these, such as the embedded services model, are very innovative and create previously unexplored (or even new) markets in addition to the primary market. Innovative models such as these are going to be key determinants of success in low-income markets, particularly in rural areas.

To download the full report, click here http://tiny.cc/pf4f6