Digital Innovation for Climate-Resilient Agriculture - Using rainfall data from mobile networks for localised and scalable services - GSMA
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Digital Innovation for Climate-Resilient Agriculture Using rainfall data from mobile networks for localised and scalable services
GSMA AgriTech The GSMA represents the interests of The GSMA AgriTech Programme works This material was funded by UK aid mobile operators worldwide, uniting towards equitable and sustainable food from the Foreign, Commonwealth & more than 750 operators with almost supply chains that empower farmers and Development Office. 400 companies in the broader mobile strengthen local economies. We bring The Foreign, Commonwealth & ecosystem, including handset and device together and support the mobile industry, Development Office pursues the UK’s makers, software companies, equipment agricultural sector stakeholders, innovators national interests and projects the UK as a providers and internet companies, as and investors in the agritech space to force for good in the world. It promotes the well as organisations in adjacent industry launch, improve and scale impactful and interests of British citizens, safeguards the sectors. The GSMA also produces the commercially viable digital solutions for UK’s security, defends its values, reduces industry-leading MWC events held annually smallholder farmers in the developing poverty and tackles global challenges with in Barcelona, Los Angeles and Shanghai, world. its international partners. as well as the Mobile 360 Series of regional Follow us on Twitter: @GSMAm4d conferences. The the views expressed do not necessarily Author reflect the UK government’s official policies. For more information, please visit Jan Priebe, Insights Manager the GSMA corporate website at www.gsma.com Published March 2021 Follow the GSMA on Twitter: @GSMA
Acknowledgements GSMA would like to acknowledge Patrick Sampao, ACRE Ali Tareque, Green Delta Insurance Samir Ibrahim, Sunculture the following individuals for their Farid Wangara, ACRE Israel Muchena, Hollard Insurance Peter Laderach, The Alliance of contribution and support during the Bioversity International and CIAT research for this publication Steven Crimp, Andreas Vallgren, Ignitia Australian National University Steven Prager, The Alliance of Christian Reichel, International Finance Bioversity International and CIAT David Bergvinson, aWhere Corporation Remko Uijlenhoet, TU Delft Lauren Allognon, aWhere Christian Chwala, Karlsruhe Institute of Technology Elizabeth Onyango, Ukulimatech Nathanial Peterson, Busara Center Chacko Jacob, Misteo Arjan Droste, Wageningen University Morgan Kabeer, Busara Center and Research Akinbulejo Onabolu, MTN Nigeria Brian King, CGIAR Stefan Ligtenberg, Weather Impact Simon Schwall, OKO Srinath Wijayakumara, Alice Soares, World Bank Dialog Axiata Sri Lanka Bojan Kolundzija, Oxfam Sri Lanka Ari Davidov, Earth Networks Kasis Inape, Papua New Guinea National Weather Service Steven Wonink, eLeaf Owen Barder, Precision Eleni Vakaki, eLeaf Agriculture for Development Daniel Paska, Ericsson Sam van Herwaarden, Precision Simone Fugar, Esoko Agriculture for Development Gordon Kotey Nikoi, Esoko Aart Overeem, Royal Dutch Meteorological Institute (KNMI) Angshujyoti Das, FarmNeed Arjen Vrielink, Satelligence Faisel Irshad, FarmNeed Abhishek Raju, SatSure Corjan Nolet, FutureWater
1 4 Digital climate resilience services: The need for climate resilience and where CML rainfall data and other closing the weather data gap MNO assets add value 2 5 Unlocking CML rainfall data: Digital services for smallholder opportunities for MNOs and climate resilience service providers 3 6 Measuring rainfall using mobile networks: commercial microwave Key findings and recommendations links (CML) data
Executive summary Executive summary 1 THE NEED FOR CLIMATE RESILIENCE 2 DIGITAL INNOVATION FOR SMALLHOLDER CLIMATE RESILIENCE 3 MEASURING RAINFALL USING MOBILE NETWORKS The increasing volatility of weather patterns caused Digital climate resilience services can directly impact Reliable ground-level weather observations are key by climate change is posing significant challenges for the resilience of smallholder farmers: inputs to digital climate resilience services, providing smallholder farmers around the world. Agriculture is more reliable data than remote sensing sources. This • Weather and climate services provide the an income source for an estimated two-thirds of adults data is lacking in LMICs, for example, weather station information farmers need to adapt their practices living in poverty, who typically lack the resources to coverage in Sub-Saharan Africa is eight times lower to anticipated conditions or respond to impending maximise yields and respond effectively to production than the WMO’s minimum recommended level, and extreme weather events. challenges, such as adverse weather conditions, crop six times lower in India. Mobile networks, currently pests and disease. There is a risk that growth in global • Data-driven agricultural services draw on a providing over 90% population coverage in most yields could decline by up to 30 per cent by 2050, multitude of data sources to support decision LMICs, can provide high-resolution rainfall data from pushing up food prices and leading more people to making at both the macro and grassroots level. commercial microwave links (CMLs), presenting become undernourished and food insecure. a significant opportunity for MNOs to close the • Agricultural financial services, such as credit, weather data gap. Climate resilience refers to the ability of farmers to enable farmers to access inputs and assets to adapt to long-term shifts in climatic conditions, and support climate-smart agricultural practices, while CMLs connect towers in a mobile network using close to anticipate and take steps to mitigate the effects agricultural index insurance provides a safety net for to the ground radio connections that are disrupted of extreme weather events exacerbated by climate those affected by adverse weather events. by rainfall. By capturing these disruptions, rainfall change. rates between connected towers can be calculated. Digital innovations, such as open satellite data, Recent studies in tropical markets have validated this low-cost sensors, big data and machine learning, approach, confirming the potential of CML data to have been key enablers of digital climate resilience enable, localise and scale climate resilience services. services. Mobile network operator (MNO) assets provide the basis for further innovation, facilitating localisation and scale-up of these services. MNO assets include network infrastructure, data from mobile networks and services, communications channels, digital services platforms, and agent networks. v
Executive summary Executive summary 4 WHERE MNOS CAN ADD VALUE 5 OPPORTUNITIES FOR MNOS 6 RECOMMENDATIONS Three services that are enabled or significantly CML-derived rainfall observations can form the basis MNO involvement in climate resilience services enhanced by MNO assets are considered in more for data-as-a-service (DAAS) offerings to enterprises provision will depend on several considerations, depth in this report: in a variety of weather-sensitive sectors, including unique to their specific market and strategy: agriculture, utilities, extractive industries, public • Rainfall nowcasts1 draw on high resolution • Willingness to invest in CML data extraction and services and humanitarian response. The annual rainfall observations to provide hyper-local rainfall processing revenue opportunity from unprocessed CML data is forecasts up to six hours in advance. estimated at up to $3m in Nigeria, $1.2m in Kenya, • Existing strategy to provide direct-to-consumer • Climate-smart agri advisory (CSAA) provides advice and $2.6m in Indonesia. Providing higher value data services for the rural sector on agricultural activities tailored to the specific services such as rainfall observations and rainfall • Potential enterprise user base for weather services location and climatic conditions of its recipients. nowcasts will further increase this opportunity. in agriculture and other sectors • Weather index insurance (WII) uses weather MNOs can add significant value to consortia providing • Maturity of market and availability of potential observations to determine agricultural risk and data-driven agricultural services and agri digital partners for service creation provide pay-outs to affected policy holders. financial services. In doing so, MNOs benefit in the short term from shared revenues, higher ARPU CML data from mobile networks can enable rainfall and customer loyalty. In the long term, strategic nowcasts in markets lacking weather radar, forming relationships with agri intelligence- and/or financial the basis for weather data services and early warnings. services- providers can be leveraged to expand MNOs can improve the resolution and scalability service offerings. of CSAA and WII using weather observations from CML data or co-located automated weather stations (AWS), combined with farmer locations from caller- or registration- data. Existing value-added services (VAS) provide opportunities for bundling services to strengthen individual value propositions. Mobile money channels benefit WII by digitising transactions, reducing operating costs and increasing scalability. 1 Rainfall nowcasting provides rainfall forecasts up to six hours in advance using high-resolution rainfall observations (typically radar) that are spatially extrapolated into the future. vi
The need for climate resilience 1 The need for climate resilience and closing the weather data gap Smallholder farmers are facing a growing number of challenges due to climate change. This section outlines recommendations to address these challenges, and identifies areas in which digital services can play a key role. It highlights the gap in surface weather observations data common in low- and middle-income countries (LMICs), and how CML data from mobile networks provides a significant opportunity for MNOs to close this gap. 1
The need for climate resilience An increasingly volatile climate challenges smallholder farming systems Increasingly volatile weather patterns Increased food insecurity and caused by climate change are posing Vulnerable smallholder production Increasingly volatile climate livelihoods at risk significant challenges for smallholder farmers around the world. While • Globally, 500 million farms are two • Developing countries are • The number of people affected by agriculture is an income source for an hectares or less.4 experiencing 20 per cent hunger has been rising since 2014. estimated two-thirds of adults living more extreme heat now than In 2019, nearly one in ten people in • Two-thirds of adults living in poverty in poverty,5 they typically lack the in the late 1990s.1 the world were exposed to severe generate at least some of their resources to maximise yields and respond levels of food insecurity,9 in part income through agriculture.5 • Areas exposed to serious effectively to production challenges, due to climate shocks. drought and flooding are such as adverse weather conditions, crop • Smallholder agriculture in LMICs is expected to increase by up to • Researchers estimate that climate pests and disease. Financial services typically rainfed, including 90 per 44 percent by 2050.2 change will depress growth in that would support these investments, cent in sub-Saharan Africa.6 global yields by five to 30 percent such as agricultural credit, and formal • Higher temperatures reduce • Access to agricultural insurance or by 2050.10 safety nets like agricultural insurance, are the amount of water available other formal safety nets is limited. In also not available to most smallholders. for crops by drying out • In some African countries, yields Sub-Saharan Africa, it is estimated It is estimated that areas exposed to air and soils, put stress on from rainfed agriculture may have that less than three per cent of extreme weather will increase by up to livestock, reduce labour declined by as much as 50 per cent smallholder farmers are insured. In 44 per cent by 2050,2 with affected areas productivity and increase by 2020, with smallholder farmers Asia, 22 per cent have insurance.7 experiencing reduced soil fertility and pests and diseases for both hit hardest.11 increased pest and disease pressures. • Inputs such as improved seed and livestock and crops.3 • Climate change is likely to raise As a result, there is a risk that growth in fertiliser are not widely accessible, food prices by 20 per cent12 for global yields could decline by as much keeping adoption low. For example, billions of low-income people. as 30 per cent by 2050, driving up food the adoption rate of improved prices and exposing millions more to food maize across Africa is approximately insecurity and hunger. 28 per cent.8 2
The need for climate resilience Climate risk mitigation strategies must address smallholder production challenges and support climate adaptation To address climate change and achieve while also ensuring the most vulnerable Figure 1 Recommendations to support smallholder agriculture13 food security, systemic changes are groups are not left behind. needed in the global food system.13,14,15 1 Improve smallholder productivity Advances in digital technologies are Ensuring that smallholder farmers can • Boost research and development of good agricultural practices. addressing these challenges by making become resilient to climate change while digital services increasingly available • Expand extension services, including digital agricultural services, weather and also increasing productivity will require to smallholder farmers. Digital advisory seasonal forecasts.* action on several fronts (see Figure 1). services have thrived due to the rapid • Improve the availability of climate-adapted crop varieties. Climate resilience refers to the ability penetration of mobile phones in LMICs, of farmers to adapt to shifting climatic as well as weather and climate data conditions, and anticipate and take steps 2 Help farmers manage more variable weather and climate shocks that support tailored messaging to local to mitigate the effects of extreme weather conditions. Agricultural insurance services • Stimulate income diversification. events brought about by climate change. are reaching scale with a shift to index- • Strengthen social security systems. Recommendations to support smallholder based services that use data from remote agriculture address both existing sensors and other sources. Policy and • Provide crop and livestock insurance.* productivity challenges and new donor decisions can now be informed by challenges presented by climate change. macroagricultural intelligence services 3 Address the challenges of the most affected and vulnerable farmers Productivity challenges need to be met that draw on big data and use machine with better knowledge of climate‑smart learning to identify vulnerable areas and • Improve rights and access to resources for women farmers. practices, relevant agricultural advisory model the outcomes of interventions. • Support pastoralists with climate adaptation. and greater availability of more • Provide transition funds for the most-affected populations.* productive, climate-adapted crop varieties. The resilience of smallholder farmers will depend on their ability 4 Make climate-smart agricultural interventions to diversify their income streams and • Facilitate climate-smart decision making.* access safety nets, such as social security systems and agricultural insurance. • Support synergies between climate adaptation and mitigation. Agricultural interventions should take the • Adopt measures to conserve land and water resources reality of a changing climate into account * Recommendation can be directly addressed through digital services 3
The need for climate resilience A key MNO asset, CML data from mobile networks can help close the weather observation gap in LMICs While innovations in digital technologies where extensive data sets for validating Figure 2 Distribution of surface weather observations16 have helped advance digital climate rainfall data from CML are available. resilience services, they have not yet Recognising the potential of this reached their potential or achieved approach in LMICs, a number of studies scale. There are several obstacles. Since followed that demonstrated the validity weather observations are a vital part of and potential of the technique in tropical climate-resilience services, the lack of markets, the first of which was in Burkina surface weather (Figure 2) and radar Faso.20 observations in many LMICs hinder the Commercial applications of CML-based creation of accurate, localised forecasts rainfall observation remain limited. and derivative services. US-based ClimaCell is one of the CML data from mobile networks has few organisations to use CML data in the potential to narrow the weather weather services. Ericsson is working observations gap. CML data provides in collaboration with the Swedish information on the signal strength Meteorological and Hydrological of microwave links that transfer data Institute (SMHI) to develop CML-based between mobile base stations. As it rains, services through its Ericsson One this signal weakens, and these variations Weather Data Initiative. The GSMA is in signal strength can be used to calculate working with Wageningen University & the intensity of rainfall. Research (WUR), the Royal Netherlands Meteorological Institute (KNMI) and Delft This report examines how digital services can support climate resilience for Early CML research focused on the University of Technology (TU Delft) to smallholder farmers, and how these services are created and delivered. It outlines underlying principles of rainfall estimation develop CML-based rainfall data services the opportunity for MNOs to employ mobile networks as rain sensors through and establishing a proof of principle.17,18 in collaboration with MNOs that can the use of CML data. Use cases likely to benefit most from MNO involvement are Once established, numerous studies be used in the development of climate highlighted, as well as business models that could support mutually beneficial applied this principle to larger CML resilience services. partnerships to develop climate resilience services. data sets from high-income temperate countries, such as the Netherlands,19 4
The need for climate resilience Methodology: This study combines insights from key informant interviews and secondary research with experience from GSMA-supported pilots This report combines Secondary research Primary research findings from secondary • The GSMA maintains a tracker of active digital • Semi-structured key informant interviews climate resilience services. The GSMA’s research (literature agricultural climate resilience services. These services (KIIs) were conducted by telephone current engagements in these markets review) with key are defined as those that have scaled beyond the throughout 2020 with 33 organisations, cover the technical work to create data informant interviews pilot stage and have been active for over a year (this including private and public weather services using CML data for rainfall (KIIs) and experience currently includes over 140 organisations). The tracker service providers, agricultural intelligence estimation, and piloting the use of this from GSMA-supported is a subset of the GSMA’s AgriTech Services Tracker1 and advisory providers, agricultural data in climate resilience services. These pilots. (covering over 700 services as of January 2021) and insurance providers, agritechs, academia, projects will run from 2020 to 2022, is kept up to date with ongoing secondary research international agencies and multilateral funded by the UK’s FCDO (Nigeria, Sri that draws on industry publications (e.g. The Technical organisations. Interviewees were Lanka) and Australia’s DFAT (Papua Centre for Agricultural and Rural Cooperation identified from GSMA AgriTech’s climate New Guinea), with WUR, KNMI and TU (CTA), Global Commission on Adaptation (GCA), services tracker and other secondary Delft as the main technical partners. World Bank, World Meteorological Organization), research sources for individuals from • In Sri Lanka, the GSMA, in partnership donor and international NGO websites (CCAFs, non-service organisations. For service with Dialog Axiata Sri Lanka (Dialog), CGAP, MercyCorps, UK Foreign, Commonwealth & providers, the goal of the interviews WUR and KNMI, collected and analysed Development Office), as well as snowball sampling was to understand the scope of 3.5 months of CML data to demonstrate from informant interviews. Additional sources include services offered, how the services were the potential of CMLs for real-time service provider websites, relevant case studies and developed (especially data sources and tropical rainfall monitoring. This semi-structured interviews (see Primary research). analysis), the underlying business model study represents the most extensive Geographically, the research focused on markets and their roadmap for the future. evaluation of CML data in tropical where the GSMA AgriTech programme has a presence: • Lessons from the GSMA’s engagements markets in terms of spatial and temporal Sub-Saharan Africa, South Asia and Southeast Asia. with MNOs in Nigeria, Sri Lanka and coverage. The findings inform the • Academic research was used where relevant, Papua New Guinea inform section 2 assessment of CML data in section 2.21 primarily to capture developments in rainfall on the use of CML data for rainfall estimation from CML, and included journal articles estimation, as well as section 4, which from Science, Atmospheric Measurement Techniques outlines potential business models and and Geoscientific Model Development. partnerships to integrate MNO assets in 5
The need for climate resilience Endnotes 1 FAO et al. (2018). The State of Food Security and Nutrition in the World 2018. 13 GCA. (2019). Adapt Now: A Global Call for Leadership on Climate Resilience. 2 World Bank. (2014). Turn Down the Heat: Confronting a New Climate Normal. 14 WRI. (2018). Creating a Sustainable Food Future. 3 Global Commission on Adaptation (GCA). (2019). Adapt Now: A Global Call for 15 FAO. (2019). Agroecological and other innovative approaches for Leadership on Climate Resilience. sustainable agriculture and food systems that enhance food security and nutrition. HLPE Report 14. 4 Lowder, S., Skoet, J., and Raney, T. (November 2016). “The Number, Size, and Distribution of Farms, Smallholder Farms, and Family Farms Worldwide”, World Development, 87, pp.16–29. 16 NOAA, Integrated Surface Dataset: https://data.noaa.gov/dataset/dataset/ 5 Castañeda, A. et al. (2018). “A New Profile of the Global Poor”, World integrated-surface-dataset-global Development, 101, pp. 250–267. 17 Leijnse, H., Uijlenhoet, R. and Stricker, J.N.M. (2007). “Hydrometeorological 6 Cooper, P. and Coe, R. (2011). “Assessing and Addressing Climate-induced application of a microwave link: 2. Precipitation”, Water Resources Research. Risk in Sub-Saharan Rainfed Agriculture”, Experimental Agriculture. 18 Messer, H., Zinevich, A. and Alpert, P. (2006). “Environmental monitoring by 7 Shakhovskoy, M. and Mehta, R. (17 September 2018). “Protecting growing wireless communication networks”, Science, 312(5774), p. 713. prosperity: Agricultural insurance in the developing world”, Rural and 19 Overeem, A., Leijnse, H. and Uijlenhoet, R. (2013). “Country-wide rainfall Agricultural Finance Learning Lab. maps from cellular communication networks”. Proceedings of the National 8 Langyintuo, A.S. et al. (2010). “Challenges of the maize seed industry in Academy of Sciences U.S.A. eastern and southern Africa: A compelling case for private–public intervention 20 Doumounia, A. et al. (2014). “Rainfall monitoring based on microwave links to promote growth”, Food Policy 35(4), 323–331. from cellular telecommunication networks: First results from a West African 9 FAO et al. (2020). The State of Food Security and Nutrition in the World 2020. test bed”, Geophysical Research Letters. 10 World Bank. (2013). Turn Down the Heat: Climate Extremes, Regional Impacts, and the Case for Resilience. 21 Overeem, A. et al. (2021). “Tropical rainfall monitoring with commercial 11 IPCC. (2007). AR4 Climate Change 2007: Synthesis Report. Contribution microwave links”. Forthcoming publication of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. 12 Nelson, C.C., et al. (2014). “Climate Change Effects on Agriculture: Economic Responses to Biophysical Shocks.” Proceedings of the National Academy of Sciences of the United States of America 6
Digital services for smallholder climate resilience 2 Digital services for smallholder climate resilience This section highlights the range of digital services that can have a direct impact on the climate resilience of smallholder farmers. It introduces three categories of use cases that will be the focus of this report: weather and climate information services, data-driven agricultural services and agri digital financial services. Finally, it identifies the unique assets that MNOs could use to develop and deliver these services in innovative and efficient ways. 7
Digital services for smallholder climate resilience Weather and climate services, data-driven agriculture and agri digital financial services have the greatest potential to positively impact smallholder climate resilience Digital technologies enable a range of services Data-driven agriculture services (DDAS) use Figure 3 Digital agriculture use cases and sub-use cases1 that can mitigate the challenges smallholder localised and timely data to create information farmers face, and help agricultural value chains and advisory services for agricultural value Access to services Access to markets Access to assets function better, especially in the last mile.1 The chain actors. Agricultural intelligence services GSMA has grouped digital agricultural solutions monitor and predict agricultural activities Agri digital into three broad categories of access and five to support decision making for a variety of Digital Digital Agri financial Smart farming advisory procurement e-commerce categories of use cases2 (see Figure 3). organisations. Climate-smart agri advisory services builds on traditional agricultural advisory This report focuses on three categories of services by incorporating local and timely data services that allow farmers to directly mitigate to tailor advisory messages to farmers’ current the impacts of long-term climate change, farm conditions. Precision agriculture uses short-term climate shocks and extreme hyperlocal data sources, such as sensors and weather events: 1) weather and climate UAV imagery, to optimise on-farm activities, services (WACS), 2) data-driven agriculture and may involve elements of mechanisation, services (DDAS) and 3) agri digital financial such as solar irrigation. services (agri DFS). These services fall under the use cases of digital advisory and agri Agri digital financial services (Agri DFS) digital financial services. include agricultural credit and agricultural Weather and Climate Data-driven agriculture Agri digital financial insurance that can help smallholder farmers Services (WACS) services (DDAS) services (Agri DFS) Weather and climate services (WACS) are become more resilient to climate change. advisory services that provide valuable and Weather nowcasts Agricultural intelligence Agricultural credit Agricultural credit includes digitally enabled actionable information to smallholder farmers credit products that smallholders can use Climate-smart agri on changing weather conditions. The three Weather forecasts Agricultural insurance to access agricultural assets, inputs and advisory (CSAA) sub-use cases of weather nowcasting, weather services. Index insurance refers to insurance forecasts and climate prediction represent Climate prediction Precision agriculture that relies on the modelling and monitoring services that extend further into the future, of observable phenomena (such as rainfall) to and therefore require different data sources Early warnings Early warnings determine insurance costs and pay‑outs. and modelling approaches. 8
Digital services for smallholder climate resilience Digital agriculture plays an important role in climate resilience, from long-term adaptation to short-term responses Adaptation to climate change can take place when Throughout the cropping season, weather forecasts, Agriculture contributes to climate change by producing farmers are aware of the longer term shifts in climate nowcasts and early warnings provide advance warning of greenhouse gas (GHG) emissions, primarily through affecting them, and have the resources to adopt adverse events, allowing farmers to respond to changing livestock production and deforestation.3 Agri-intelligence practices that will maximise their productivity in this meteorological conditions where possible. services can monitor land use changes, alert relevant new context. Climate prediction and climate-smart authorities to deforestation activities4 and allow In the case of adverse weather events, such as droughts agri advisory provide the information farmers need to agribusinesses to identify risk in their supply chains. or heavy rainfall, insurance provides a safety net for understand climate change and the implications for Together, these services can reduce the net carbon famers to recover some of their production costs or lost local agriculture. In the medium term, seasonal weather emissions of agriculture and contribute to climate change income. Similarly, agricultural credit can be a catalyst for forecasts allow farmers to select appropriate climate- mitigation. Meanwhile, agricultural credit can enable recovery, allowing farmers to invest in agricultural inputs adapted crops and varieties, and plan their agricultural smallholder farmers to shift to more sustainable farming for the next season after suffering losses in the last. activities. practices through increased access to inputs and assets, and therefore reduce the need to expand their cultivated land. Figure 4 The role of digital services in managing climate change Approaches to managing Weather and climate services Data-driven agriculture services Agri digital financial services climate change (WACS) (DDAS) (Agri DFS) LONG TERM Mitigation Agricultural intelligence Agricultural credit Agricultural intelligence Climate prediction Adaptation Climate-smart agri advisory Agricultural credit Weather forecasts Precision agriculture Weather nowcasts Early warnings Response Early warnings (weather) (crop pests and disease) Agricultural insurance SHORT Recovery Agricultural credit TERM 9
Digital services for smallholder climate resilience Weather and climate services allow smallholders to anticipate and respond to climate events and can enable adaptation to long-term climate change Meteorological services, which include WACS, provide WACS are typically considered public goods and are the general public and weather-dependent sectors. The information and advice on the past, present and future provided by National Meteorological and Hydrological increased availability of openly available satellite weather state of the atmosphere. This includes information Services (NMHSs). The role of NHMSs has typically data has also fostered innovation in the private weather on temperature, rainfall, wind, cloudiness and other been to operate a network of weather stations, produce sector. For example, innovative forecasting techniques atmospheric variables and their influence on weather- and weather forecasts for the general public and specialised and delivery models are used to provide end-user services climate-sensitive activities and communities.5 Depending forecasts for relevant sectors. As satellite and private (e.g. Ignitia), and proprietary technologies are used to on the timescale, different services can be used to support weather data have become more available, and global collect local weather data to refine forecasts (e.g. Earth smallholder climate resilience. These are outlined in forecasting models can be used as the basis for regional Networks, ClimaCell). Figure 5 below. and local forecasts, NHMSs are slowly shifting to focus on the localisation and dissemination of forecasts for Figure 5 Temporal coverage of weather and climate services5 PAST -1 year Now +6 hours +1 month +1 year FUTURE Historical observations Recent observations Nowcasting Weather forecasting Seasonal forecasting Climate prediction Weather observations Weather nowcasting Weather forecasts Climate predictions Weather observations include data from Weather nowcasting provides high-resolution Weather forecasts use numerical models that Climate predictions provide an estimate of numerous sources of key atmospheric variables, rainfall forecasts up to six hours in advance forecast the behaviour of atmospheric processes climate more than one month into the future, at such as temperature, humidity, wind speed and based on radar observations that are spatially based on initial conditions up to one month into seasonal, interannual or long-term timescales. direction and atmospheric pressure at various extrapolated into the future.6 the future. Predictions enable seasonal planning by altitudes. This data is captured by remote Nowcasts enable short-term responses that Forecasts enable short-term planning by smallholder farmers, including which crops to sensing, weather balloon and land and marine reduce the impact of climate events, such as agricultural value-chain actors to optimise input grow and planting/harvesting dates. Macro-level weather stations. storms and heavy rainfall. use and timing of agricultural activities, and to actors can identify potential issues and take Historical weather observations enable analysis anticipate pest and disease outbreaks. mitigating measures. of long-term weather trends, and are key inputs for financial services, such as weather index insurance actuarial models and agricultural credit Early warnings risk assessments. Early warnings are predictions or forecasts of hazardous or dangerous weather Early warnings enable short-term responses to reduce the impact of climate conditions, such as flooding, droughts, high winds, extreme heat and cold, that events, both by micro-level actors, such as smallholder farmers, as well as public pose an immediate or serious threat to life, property or livelihoods. Creating institutions and NGOs. early warnings may require additional information on underlying factors (e.g. soil saturation, water levels). 10
Digital services for smallholder climate resilience Case studies: Weather and climate services Ignitia Earth Networks Ignitia is a specialist tropical weather forecaster based in Sweden Earth Networks is a US-based private weather forecaster with offices in Ghana and Nigeria. iska™, the company’s flagship that provides cloud-based weather data services to a range service, provides localised daily, monthly and seasonal weather of enterprise customers around the world, including national forecasts via SMS to smallholder farmers in Ghana, Nigeria, Burkina meteorological and hydrological services. Services include weather Faso, Mali and Ivory Coast. data APIs and dashboards, as well as decision-making support systems. The service relies on an advanced tropical numerical weather prediction model developed by Ignitia that draws on various Earth Networks integrates data from global numerical weather data sources, including satellite data, global numerical weather prediction models, their own global network of weather sensors prediction models and lightning detection to provide more accurate and weather observations from other sources to provide and higher resolution forecasts. localised forecasts. Machine learning processes use local weather observations to fine-tune forecasting models to specific locations, Ignitia markets their services under a subscription model. They enabling accurate local forecasting. Earth Networks partners with partner with local MNOs under revenue-sharing arrangements to mobile networks to co-locate weather sensors with mobile base distribute their messages and rely on them to provide subscriber stations to expand their observations network. location from call detail records. Ignitia has partnered with MTN in Ghana and Ivory Coast, 9Mobile in Nigeria, and Orange in Mali In LMICs, Earth Networks works across the public, private and and Burkina Faso. Alternatively, Ignitia works with NGOs that cover civil sectors. For example, they have a partnership with Viamo, a subscription costs and provide the farmer registration data they provider of digital advisory services, to include weather forecasts need to deliver the service. through its 3-2-1 platform in 11 countries in Africa and Asia. In the Philippines, Earth Networks has partnered with PAGASA, the public weather service provider, to install and run a nationwide weather monitoring network. 11
Digital services for smallholder climate resilience Data-driven agricultural services provide evidence-based decision-making support to agricultural stakeholders Data-driven agricultural services (DDAS) use near real- Figure 6 DDAS use cases time data sources to make predictions and provide MACRO Agricultural intelligence advice on agricultural activities. These services build on conventional advisory services by considering a user’s Agricultural intelligence services are data analytics Long-term trend analysis is used to assess value location and current local agrometeorological conditions solutions that integrate satellite, agronomic, chain risk and identify longer term adaptation to tailor models and advice. weather and climate and market data, and convert strategies. Agricultural intelligence services also this information into useful country- and value contribute valuable inputs to financial services, As satellite observations, Internet of Things (IoT) chain-level insights for government policymakers, including risk assessments for agricultural credit networks and low-cost sensors have become more agribusinesses and financial actors. and actuarial modelling and index monitoring for available, and machine learning and computing agricultural insurance. Services include monitoring agricultural activity, technology more advanced, there has been a including land use, growth assessments, yield proliferation of data-driven agricultural service providers forecasting and pest and disease early warnings. around the world. Climate-smart Digital climate agri advisory advisory services DDAS use the same approach to provide solutions to a variety of end users. By integrating data from CSAA provide information on agronomic best These services enable smallholder farmers to diverse sources, from satellite imagery to soil sensors, practices, pests and diseases and weather and maximise their agricultural production and revenues market prices to smallholder farmers through by selecting the most appropriate inputs, optimising DDAS create models of current and future agricultural digital channels. They draw on weather and climate agricultural practices, and responding to crop pests, activity. These models can be used for various use cases forecasts, as well as spatial agronomic data such as disease and extreme weather events in a timely and depending on the end user and available data sources soil maps, to tailor advisory messages to local and effective manner. (see Figure 6). seasonal conditions. As use cases move from the macro- to micro-level, data demands increase. This is because localised sources of Precision agriculture data, such as ground-level sensors, are needed to create Precision agriculture services bring intelligence and This shift from general to more specific data enables farm-specific models, and farm-level data on agricultural advisory services to the farm level by utilising farm- more tailored recommendations to optimise crop practices is needed to tailor advisory messages. specific agronomic data, such as on-farm sensors, choices, input use and good agricultural practices, soil analysis and high-resolution remote sensing data and ultimately maximise agricultural productivity. from unmanned aerial vehicles (UAVs) or private satellite providers. MICRO 12
Digital services for smallholder climate resilience Case studies: Data-driven agriculture services aWhere SunCulture aWhere is an agricultural intelligence provider based in the US, but SunCulture provides solar-powered irrigation solutions to farmers in operating globally. They offer a range of solutions that enable data- Africa from their base in Kenya. The company combines innovative driven decisions on adapting to changing weather conditions on a hardware with Pay-As-You-Go (PAYG) financing models to make local and global scale. Data APIs and an online platform are their core irrigation accessible to smallholder farmers. Their equipment is services, which provide agriculturally relevant weather conditions, bundled with tailored advice and generates intelligence around historical trends, crop models and pest and disease predictions, customer usage through integrated IoT devices. Installation, training, among other information. and after sales support is included with their products. aWhere’s weather and agronomic data can integrate with other They are currently building their IoT capacity to provide precision geospatial data such as soil maps, watersheds, and livelihood advisory services. Using Microsoft’s Azure platform, they integrate zones as well as population data to provide additional insight. With usage data collected from their devices with complementary data, historical observed data going back to 2006, aWhere’s customers such as weather observations and forecasts to model how particular can analyse historical weather trends and develop crop models. usage patterns result in better yields. These models will enable the provision of tailored advisory messages to customers via SMS. The Services are provided through a freemium subscription model, addition of customer payment behaviour to this dataset enables the allowing free access to basic data points and tiered access to the creation of repayment profiles, which represents highly valuable data complete dataset. aWhere has subscribers in public agencies in to lenders and insurers, and allows SunCulture to develop a range Kenya, Uganda and Zambia that use their platforms for weather of higher value productive appliances for more affluent customer forecasting and decision making. In Kenya, they have worked with segments. Safaricom and MercyCorp’s AgriFin programme to develop a bespoke agronomic advisory service for smallholder farmers delivered as SunCulture irrigation systems are marketed directly to customers part of the DigiFarm platform. In Ghana, Esoko uses the aWhere through phone sales channels, regional sales and support centers, API to access the weather data they need to provide climate-smart and a network of field sales agents in Kenya. agronomic advice. 13
Digital services for smallholder climate resilience Agri digital financial services provide a safety net following adverse weather events and stimulate adoption of climate-smart inputs and assets The traditional hurdles to financial services for smallholder farmers, mainly the high costs of assessing Agricultural credit Agricultural insurance individual farm risk and creditworthiness, are slowly being removed as digital data sources are used to The increasing availability of digital data on Agricultural index insurance uses digital data replace or approximate individual farm assessments. farmers’ economic and agronomic activity, sources, such as automated weather stations combined with the growth of digital service and remote sensing data, as the basis for In the insurance industry, index or parametric insurance delivery channels, are making formal agricultural risk and claims assessment. This makes them is increasingly replacing indemnity models as they credit services increasingly scalable to cheaper and more scalable than traditional are proving to be more cost-effective and scalable. smallholder farmers. insurance that requires farm visits to assess By relying on secondary data sources, such as weather premiums and claims. observations for actuarial modelling, claims assessment Farmer credit scores and risk assessments costs are greatly reduced. can now be created using data on farm size, Digital data sources typically include farmer assets and income streams, reducing agriculture-related data, such as rainfall, Similarly, with the increasing digitisation of payments or eliminating the need for face-to-face evapotranspiration9 or NDVI.10 Historical indices and transactions in agricultural value chains, smallholder assessments (e.g. FarmDrive). Approved credit are calculated to determine normal conditions, farmers are building financial histories that can be can be paid and repaid using digital vouchers or and pay-outs are based on deviations from used for loan risk assessments and credit scoring. This mobile money transfers, further reducing costs. those conditions. significantly reduces the manual due diligence required by financial service providers to provide agricultural Short-term credit products give smallholder In the face of adverse weather events, weather credit services. farmers access to improved inputs, such index insurance can make the difference as high-yielding or drought-resistant crop between being able to replant a crop that Digital communication channels and mobile money varieties. Long-term loans, with payment terms did not germinate (e.g. due to a lack of early services have also played a key role in facilitating built around a farmer’s cash flow, can enable rains) or replace lost income at the end of an financial services. As mobile phone ownership increases investment in assets that enhance productivity, unproductive season. With insurance, farmers among smallholder farmers, mobiles can serve as both such as irrigation. are able to cover their expenses and invest in a marketing platform and payment/pay-out channel for the next season’s crop. digital financial products. 14
Digital services for smallholder climate resilience Case studies: Agri digital financial services FarmDrive Oko FarmDrive is a Kenyan tech start-up that specialises in credit scoring Oko is a weather index insurance provider operating in Mali and for smallholder farmers. Their services bridge the gap between Uganda. Specialising in the development of index insurance using smallholder farmers and financial institutions, making agricultural remote sensing data, they partner with local insurance providers for financing available to groups that have traditionally been excluded underwriting. Oko markets their products directly to smallholder from the formal financial system. farmers or through other players in the agricultural value chain. FarmDrive collects information directly from farmers and combines it Oko uses publicly available data from the geostationary MeteoSat with relevant agronomic data, such as satellite imaging, soil analysis satellites via TAMSAT on cumulative rainfall, as well as NDVI and and weather forecasts, to assess credit risk. Credit providers can evapotranspiration, combined with historical yield data, where use the information provided by these models to make informed available, to create actuarial models and monitor insured risks. This lending decisions, and use FarmDrive’s digital platform to reach rural provides a scalable quantification of risk and automated verification customers directly. of claims and pay-outs. Insurance products are made available through apps and USSD, allowing them to be distributed to remote FarmDrive partners with financial service providers to make locations. innovative agricultural credit products available to smallholder farmers. In Kenya, they work with Safaricom to launch DigiFarm In Mali, Oko has partnered with MNO Orange to offer weather index Loans through Safaricom’s mobile value-added services platform for insurance through Orange’s USSD menu. This has created a fully rural customers. digital insurance service that farmers can access and pay for using their mobile phone. 15
Digital services for smallholder climate resilience MNOs have a range of assets that enable localised and scalable climate resilience services Digital technologies have been key enablers of innovation Existing mobile network infrastructure can support the Mobile money channels enable innovative payment and service development in all three categories of climate collection of local, ground-level weather observations models, such as micropayments for asset financing (e.g. resilience services (weather and climate services, data- through the use of CML data (section 2 takes an in-depth M-Kopa, SunCulture), which allow farmers to access credit driven agriculture services, and digital agricultural financial look at CML data) or by co-locating automated weather products and services that were previously unattainable. services). MNO assets, from technical infrastructure stations with mobile base stations. These observations fill For insurance, mobile money enables digital marketing to communications channels, existing customer bases a crucial gap in LMICs where weather radar and weather and repayment of insurance policies, eliminating the need and agent networks, have the potential to support even station networks are typically lacking. This data can be for face-to-face and cash transactions. MNOs can also greater innovation and scale climate resilience services. used by weather forecasters to localise global models, by help alleviate bottlenecks in user registration. Collecting DDAS providers to improve agronomic models and by Know Your Customer (KYC) and location data remains insurance providers to provide agricultural insurance to problematic for service providers, but MNOs may already previously unserved areas. have this data for their existing customers. Data collection Analysis Service design Service delivery Digital technology service enablers • Automated weather stations (AWS) • Artificial intelligence approaches • Geographic information systems (GIS) platforms • Mobile aggregators (SMS/IVR) • Internet of things (IoT) enabled sensors • Open-source analysis software and libraries • Data-as-a-service (DaaS) • Smartphone apps • Remote sensing imagery and data (satellite, drone) (e.g. Python, R) • Software-as-a-service (SaaS) • Online platforms and services • Open data sources (e.g. Africasoils.net, APHLIS.net) • Global numerical weather models (e.g. GFS, ECMWF) • Social media and chat • Mobile data collection (e.g. ODK) • Serverless computing (e.g. Azure, AWS) • Application programming interfaces (APIs) • Cloud data analysis platforms (e.g. Azure FarmBeats) MNO value-add • CML data for rainfall observations • Bundling of complementary services • Digital services platforms • Siting AWS with mobile base stations • Mobile money enabled payments and payment • Agent networks • Connectivity (data, IoT) models (e.g. pay-as-you-go) • Mobile delivery channels: SMS, USSD, IVR • Registration data (location, KYC) • Disbursement of credit via mobile money or • Cell broadcast digital vouchers • Mobile (money) usage data Legend: Data sources Technical infrastructure Marketing and distribution assets 16
Digital services for smallholder climate resilience Endnotes 1 In agricultural value chains, the “last mile” is the web of relationships and transactions between buyers of crops, such as agribusinesses, cooperatives and intermediaries, and the farmers who produce and sell the crops. 2 GSMA (2020). Digital Agricultural Maps. 3 WRI. (2018). Creating a Sustainable Food Future. 4 GSMA (2020). Digital Dividends in Natural Resource Management. 5 WMO. (2015). Valuing Weather and Climate: Economic Assessment of Meteorological and Hydrological Services. 6 Wang, Y. et al. (2017). Guidelines for Nowcasting Techniques. WMO 7 Tsan, M. (2019). The Digitalisation of African Agriculture 2018–2019. CTA. 8 GSMA (2020). Agricultural insurance for smallholder farmers: Digital innovations for scale. 9 Evapotranspiration measures water loss through leaves, which is proportional to plant growth and crop yield. Evapotranspiration monitoring is done by modelling remote sensing data. 10 Normalised difference vegetation index (NDVI) quantifies the density of plant growth in a given area by measuring the reflectivity of the surface using remote sensing imagery. 11 Alley, R., Emanuel, K.A. and Zhang, F. (25 January 2019). ”Advances in weather prediction”, Science 363(6425), pp. 342–344. 17
Measuring rainfall using mobile networks 3 Measuring rainfall using mobile networks: commercial microwave links (CML) data Existing mobile network infrastructure presents a unique opportunity to gather data that can support near real-time rainfall observations in countries with limited ground-level weather observations. This section describes the principles and potential of CML-based rainfall observation, and compares CML rainfall estimation to other precipitation data sources. It concludes by outlining the opportunity for MNOs to develop CML rainfall services through the addition of software to their network hardware. 18
Measuring rainfall using mobile networks Existing mobile communications networks can be used to observe rainfall events at high resolution by monitoring fluctuations in signal strength Given the lack of reliable ground-level Along microwave links, radio signals measurements, there is an opportunity for propagate from a transmitting antenna MNOs to add significant value to a range at one mobile base station to a receiving CML rainfall observation of weather monitoring and forecasting antenna at another base station. When it services. Recently, MNOs have begun rains, water absorbs and scatters these Principles using CMLs as virtual weather sensors to microwave signals, reducing the signal • M obile backhaul networks use microwave signals (CMLs) to monitor and map rainfall measurements. strength between the transmitting cell connect base stations CMLs are close-to-the ground radio phone towers. By comparing signal connections used worldwide in cellular levels to those representative of dry • R ainfall reduces microwave signal strength between stations, telecommunication backhaul networks. In weather, CML data can be analysed and reductions are captured in CML data telecommunications, backhauling refers converted into highly accurate rainfall • CML data is collected by MNOs to monitor service quality to the connections and links between the measurements, effectively turning the core or backbone network and the small mobile network into a virtual network sub-networks at the edge of the network. of rain gauges. Commercial weather Process companies such as ClimaCell,1 and 1 2 3 technology companies such as Ericsson and its Weather Data Initiative,2 have developed their own proprietary algorithms to analyse this data and develop weather-related services. An open source algorithm, known as CML data is Algorithms Rainfall intensity RAINLINK, has also been developed as extracted from the calculate rainfall is interpolated part of a joint initiative between WUR mobile network, intensity from signal onto a spatial grid, and KNMI.3 typically every strength reductions typically 1 km2 15 minutes 19
Measuring rainfall using mobile networks Mobile networks cover over 90 per cent of the population in most LMICs, with less coverage in rural areas Most countries in Sub-Saharan Africa, South Asia and In rural areas, network coverage is more limited as data quality because rainfall calculation algorithms use Southeast Asia have mobile networks that cover over population density decreases. This is illustrated by the interpolation techniques that take density into account.5 86 per cent of the population (Figure 7), indicating example of MNO Tigo in Tanzania (see Figure 8). While For agricultural use cases, this coverage is a significant extensive national backhaul coverage. It is estimated that 95 per cent of the population in Tanzania is covered by improvement and indicates that significant agricultural by 2023, around 65 per cent of radio sites in the world a mobile signal, large uninhabited parts of the country areas in LMICs are covered by CML links. will be connected by microwave (excluding Northeast are not. In rural areas, backhaul networks also typically Asia).4 This means there is a significant opportunity to become less dense and link lengths longer as fewer use CML as virtual weather sensors to monitor and map connections need to be served. However, studies have rainfall measurements. shown that lower link densities do not necessarily lower Figure 7 Percentage of population covered by mobile signal6 Figure 8 Mobile network coverage of Tigo in Tanzania4 30–40 40–50 50–60 60–70 70–80 80–90 90–100 20
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