Private Rural Service Provision System

Transcription

1 Private Rural Service Provision System Face to Face Workshop on Rural Advisory Services (RAS) Hanoi, Vietnum 5 March 2015 Shamim Ahamed HELVETAS Swiss Intercooperation Bangladesh

2 SAMRIDDHI Local Private Service Provision Bangladesh History Project goal poor Total SDC fund (Samriddhi) Merger of LEAF and SAAKTI To contribute to sustainable well-being and resilience of and extreme poor households of Rajshahi Division and Sunamganj District through social and economic empowerment CHF 27.5 million (total) / CHF 8.4 million Total leverage fund ~ currently 50% - 80% of Value Chain activities Intervention area Reached Farmers Efficiency Northern Bangladesh, 4 Regions farmers (54% women farmers) CHF 37 / farmer

3 At a glance market system change in RAS areas Services & inputs LSPs (32% female) of 63 SPAs at sub-district level providing services and inputs to producers One million producers (55% female) have access to services & inputs Service centres have been established private companies are linked with SPAs & producers organisation 170+ Collection/production centers are functioning for bulk and collective selling Organisational capacity of producers producers groups (42% female lead, 48% female member) are linked with private sector company networks are in deal with higher market Financial service Increased functional linkages built for accessing various financial services & products

4 Context of Samriddhi intervention Ministry of Agriculture (MoA) Donors / Official Development Assistance Department of Agricultural Extension (DAE), Department of Fisheries (DoF) Department of Livestock Services (DoF) Agricultural Research / Universities Policies National Agricultural Extension Policy National Agricultural Policy Private sector agencies NGO and donor financed advocacy projects (e.g. SAAKTI) District Extension Agents Local communities, organised in Ward Platforms RAS Link Business Membership Organisations (BMO) and Public Private Initiatives (PPI) (Katalyst Project) Link NGO/donor financed RAS delivery e.g. LEAF project LSP Link Traders and Processors Input companies Famers Farmer groups Microfinance organisations Contract farming

5 Samriddhi Intervention Ministry of Agriculture (MoA) Donor finances / Official Development Assistance Department of Agricultural Extension (DAE), Department of Fisheries (DoF) Department of Livestock Services (DoF) Agricultural Research / Universities Service contracts Policies National Agricultural Extension Policy National Agricultural Policy Private sector agencies NGO and donor financed advocacy projects District Extension Agents Local communities, organised in Ward Platforms RAS BMO, PPI Service Providers Associations Local Service Providers SC Link Service contracts (SC) NGO/donor financed RAS delivery Traders and Processors Microfinance organisations Famers Farmer groups RAS Commission MSEs Produce / Money Input companies Contract farming

6 Samriddhi A project of Market Development Shifted from Livelihoods LEAF Project: (Producers Demand) SAAKTI Project (Involvement of public & private sector) The poor generate additional employment & income to overcome their poverty sustainably The poor improve their enterprise performance by increasing production & productivity The poor are aware & capacitated to access the services Affordable, accessible & quality private & public services are available Samriddhi Project: (Market Demand) Samriddhi Project: (Private Sector supplied)

7 Samriddhi project contribution to RAS system RAS design: development of RAS model Connecting all value chain actors; Service provision at doorstep of poor; reduce transaction cost Extension policies: focus on the implementation & use of the agricultural policy Rural advisory contents & methods - no direct subsidies paid, but facilitation & training costs of LSPs & SPAs. - phasing out of project support for SPAs (21/58-36%) Finances: innovation fund for capacity development of SPA Coordination and networking: Enabling linkages to VC actors and to finance institutions

8 Market system with RAS model of Samriddhi Line Department, Research Institute 63 Service Providers Association (SPA) & Local Service Providers (LSP) Service Centre MFI. Bank Input market actors Producers, producers group & networks Output market actors

9 Core principles of RAS: Services are driven by user/client demand Users pay the service charge to the service providers Service providers are accountable to users (clients) Users have a free choice of service providers Skilled service providers both in subject matters as well as in advisory methodology (business and adaptive finance) Capacity development for both the demand and supply side

10 Role of different stakeholders in the RAS system LSPs/SPAs Provide services to producer s group, public & private sector agencies; Operate service centres in market places; Facilitate linkages with private sector & govt. agencies Producer groups & their networks Private sector agencies (input) Private sector (output) / traders Receive services from LSPs / SPAs. Networks combine approx. 20 groups. Sell quality inputs (e.g. vaccine, seed etc.) to producer groups through SPA Provide trainings to LSP on the required produce Organise bulk procurement through LSP

11 Role of different stakeholders in the RAS system Private financial service providers Orient/offer trainings to LSPs on financial product Offer financial product & services to producers Government Line Agencies (GLA) Provide RAS by themselves Support SPAs/LSPs to provide RAS Participate in PPI to know farmers need Universities Strong linked with GLA Weakly linked with private RAS providers Samriddhi Facilitate, capacity building, coaching etc. to SPA (trigger)

12 Technical Service delivery mechanisms by LSPs & SPAs LSPs provide technical, business and finance services to producer groups LSPs & SPAs organise demonstrations on quality inputs, new technologies & practices LSPs/SPAs facilitate access to financial products & services SPAs operate service centres SPAs establish business contracts with producer groups & networks, inputs & output market SPAs coordinate & monitor the services of LSPs

13 Business model for financial services 63 Service Providers Association (SPA) & Local MFI. Bank Service Providers (LSP) Training, financial product information etc. Service Providers Association (SPA) & LSP Producers, producers group & networks

14 Business model for financial Services - Producer has trouble in accessing adaptive financial products in terms of loan amount, collaterals and repayment schedules. - Samriddhi supported SPAs in developing advisory services on financial literacy and business planning, and created linkages between MFIs, SPAs and LSPs. -MFIs trained SPAs on financial products and SPAs access these products to producer s group as a part of holistic services of SPA.

15 Capacity building of SPA Government Line Department Hiring resource person to trained LSP Private companies Service Providers Association (SPA) & LSP

16 Capacity building of SPA (Contd.) - Project scaled down it s support for capacity building of SPAs - SPAs are linked with public and private sector entities for capacity building - SPAs develop plans with public and private sector entities and organise the capacity building events - Government Line Agencies train LSPs via SPAs on specific subject matter (e.g. vaccination) & support SPAs to deliver the services to producers - Private sector companies train LSPs via SPA and sell inputs to producers via LSPs.

17 Sustainability of SPA: Income of LSPs derived from service fee paid by producers & commissions on sales inputs & products Line Agencies & Non-Governmental organisations use SPAs as resource persons SPAs save their income for training of LSPs & buying farm implements Producers groups are formed by SPAs for acquiring future clients High outreach with large number of poor & extreme poor women & men producers Holistic services by SPAs for business expansion & ensuring high transaction Private companies & Line Agencies provide technical training to LSPs & SPAs, as RAS system offers good opportunities (low transaction costs, improvement of extension services).

18 Innovation in RAS First, testing the hypothesis, then promote the system The business case RAS benefitting to all stakeholders Local and relatively cheap service provision Holistic services and diverse roles of LSPs Fully phasing out support during the time or the project Inclusion of RAS users in RAS planning

19 Challenges: Continuous upgrade of know-how and skills to fight against new problem (e.g. diseases, pest) Ensuring women LSPs income comparable to men LSPs Certification of LSPs services by Government Line Agency Learning and exchange among service providers Measuring equitable shares & benefits of poor producers

20 Lesson learnt: Holistic (technical, business and financial) services increase the income of LSPs/SPAs Private sector engagement is essential for expansion of SPA s service market Lobbying and advocacy is needed at national level for certification/recognition of LSP s services

21 Case : Yasmin is now an empowered woman LSP's Name: Mosa. Yasmin Akter Vill.- Chandpur, Upazila-Mohonpur Dist. Rajshahi, Bangladesh Basic Education: S.S.C (Ten Class) LSP Training received: 2008 Engaged in : Vaccination, castration, advice, cattle management and farming Socio-econ. change: Well known in the locality. living standard improved Additional Income: USD per month. Previous position: Housewife no cash income scope

22 Activities of LSP Yasmin Conducting vac. program Conducting awareness session Castrating the goat kids Castrating of goat kids

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