The challenge of innovation - Rural21
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R U R A L 21
The International Journal for Rural Development 1 | 2021
VOLUME 55
ISSN 1866-8011
D 20506 F
The challenge
of innovation
ZERO HUNGER ORGANIC AGRICULTURE DAIRY HUSBANDRY
Research points the way Long-term trials with Bridging smallholders’
promising results knowledge and skills gaps
rural21.com
2 EDITORIAL
Dear Reader,
“Innovate or die” is a known mantra in the business world. It has Our authors have gathered
already accompanied generations of entrepreneurs, reminding them many examples bearing the
that if they seek to survive on the market in the long run, “business potential to initiate such leaps.
as usual” cannot be an option. So innovations are a survival strategy. Frequently, they are based
However, this premise has long not applied solely to the business on digital solutions, which
world. For some time now, the stakeholders in development cooper- can act as game-changers in
ation have been aware that resorting to tried and tested insights and particular in remote rural
methods simply isn’t enough when it comes to coping with global areas, where access to infor-
challenges such as climate change and biodiversity loss, depletion of mation and services – be it in
natural resources and a growing number of conflicts. And, at the lat- the agricultural sector, be it
est, since the entire extent of harm done by the coronavirus pandem- in other important develop-
ic has been revealed, for our food systems too, it has become clear ment sectors like health or
that “business as usual” is no viable solution. education – is difficult. Here,
the emphasis is on “can”, for the examples show that an innovative
Now, it is not as if things had come to a halt over the past years. solution, regardless of how so smart, promising and easy to handle it
For example, CGIAR, the largest international agricultural research may be, need not turn into a sure-fire success.
network, has been undergoing a process of permanent reform for
two decades, seeking to adapt its organisational structure as well as its There are a multitude of reasons for this adoption gap, ranging
research agenda to changing global challenges. And in the scientific from inefficiencies in various markets (e.g. inputs and outputs, land,
community, just like among the development cooperation actors, labour, financing) and information through unforeseen spill-over
there is far-reaching agreement that progress in development in the effects to individual character traits.
rural regions of our world not being at the level desired cannot be
put down to a lack of knowledge. Rather, the problem is that of The successful implementation of sustainable innovations also
implementing this knowledge – and hence the question of how new requires breaking down traditional barriers between businesses and
ideas get “from the lab to the field”, how innovative solutions can be philanthropic projects. The growing significance of social businesses
taken to scale. And how the overall process can be speeded up. So shows just how sensible it can be to make the most of both worlds.
that we don’t have to keep repeating that we are not on track regard- Their recipe for success is a mix of agility and flexibility, custom-
ing the achievement of the transformational Agenda 2030, with its 17 er-oriented thinking and overcoming cultural orthodoxies. It is by
Sustainable Development Goals. no coincidence that development cooperation is also increasingly
forming alliances with these enterprises and is training young entre-
Leapfrogging could ensure that necessary developments are not only preneurs accordingly.
accelerated but are also sustainable. What this term, which comes
from economics, refers to is that certain steps in a development pro- Some time ago, Zia Khan, Senior Vice President Innovation of the
cess are intentionally omitted. Here, mobile telephones are frequently Rockefeller Foundation, said that innovations are important because
cited as an example. Thanks to this technology, many countries in “they solve problems today in a way that positions us to address the
Africa have simply leapfrogged the level of fixed-line phoning. Or unforeseen problems of tomorrow”. On this note, we wish you
the use of decentralised renewable energy supply solutions, which inspiring reading.
doesn’t require the extensive and time-consuming establishment of
fixed-line networks. In African agriculture, leapfrogging could con- On behalf of the editorial team,
tribute to avoiding harmful impacts such as those resulting from the
Green Revolution in India as well as the intensification of agriculture
in many industrialised countries.
You can find the latest information on COVID-19 at
www.rural21.com
Partner institutions of Rural 21
IN THIS ISSUE 3
Imprint
Rural 21 –
The International Journal for Rural Development
CONTENTS
Published by:
DLG-Verlag GmbH FOCU S
Frankfurt, Germany
Advisory council: 04 You can change the game
Boris Büchler, GIZ Why development cooperation must strengthen its innovative capabilities
Dr Reinhard Grandke, DLG
Martin Koppa, HELVETAS
08 More, but not of the same – new funding for a new type of AR4D needed
Ueli Mauderli, DEZA
Editorial committee: 11 Moving towards “One CGIAR”
Dr Michael Brüntrup, DIE
Dr Manfred Denich, ZEF
How the Consultative Group on International Agricultural Research is
Dorothea Hohengarten, GIZ responding to new challenges
Jürgen Maier, Forum Umwelt und Entwicklung
Prof Dr Matin Qaim, University of Göttingen 14 Leapfrogging for Africa’s agri-food sector
Editor in chief / Berlin office:
Silvia Richter, s.richter@dlg.org 18 Silicon Valley for Africa’s agricultural start-ups
Editorial staff / Frankfurt office:
Olive Bexten, o.bexten@dlg.org 20 Smallholders’ adoption of innovations – an agenda for learning
Ines Lechner, i.lechner@dlg.org
Angelika Wilcke, a.wilcke@dlg.org
23 A reality check for digital agricultural extension tool development and use
Editorial assistance: Lessons from a project in East Africa
Mike Gardner
Translated by: Using personal digital extension services to improve agriculture performance
26
Christopher Hay, Tazir International Services
An example from India
Cover photo:
Georgina Smith/ CIAT
28 Mobile-based solutions lagging behind their possibilities
Design & Layout: Mobile financial services for agricultural purposes in Kenya
Andrea Trapani, DLG-Verlag
Editorial office, distribution, advertising: 30 Returnee migrants as agricultural innovators in Nepal
DLG-Verlag GmbH
Eschborner Landstraße 122
60489 Frankfurt, Germany
OP IN ION
Printed by:
Brühlsche Universitätsdruckerei GmbH & Co KG
33 Towards a world without hunger: research points the way
35396 Gießen, Germany
Rural 21 is published four times a year.
34 Closing the adoption gap
The subscription rate is EUR 33.– (Germany), EUR
37.– (EU countries), EUR 51.– (non-EU countries) Implementation research can help bring innovations from the laboratory to
and EUR 8.30 per issue, plus postage. the field
All rights reserved. The contents may not be
translated, reproduced in whole or in part, nor may
information be passed on to third parties without
IN T E RN AT ION A L P LAT FORM
permission of the publisher. Please direct all
correspondence to the editor in chief.
36 Encouraging children’s love of trees
The opinions expressed by the authors are not
necessarily those of the publisher or the editor. The
editor retains the right to make editorial changes.
S C I E N T I F I C WO R L D
38 Organic agriculture – a viable solution to achieving the SDGs
Results from long-term experiments in Kenya, India and Bolivia
41 Bridging the knowledge and skills gap in dairy husbandry
Impact of a training programme for smallholder dairy farmers in Kenya
4 FOCUS
You can change the game
By Florian Landorff and Franziska Kerting
Photo: Jörg Böthling
RURAL 21 01/21 5
Over the last few years, a strong trend to set up incubators, accelerators and innovation platforms has become apparent.
Start-ups on digital technologies and social businesses are rapidly growing with the promise to reach those up to four
billion people at the Bottom of the Pyramid. Is this just another fashion? Our authors explain why development cooperation
must strengthen its innovative capabilities, and which experiences Welthungerhilfe has made in this respect.
E specially those actors in development co-
operation with a strong and impactful track
record will ask why they should change their
But innovation is not just an answer to a
changing framework and to a desire for greater
effectiveness. An increasing number of organ-
of themselves as potential entrepreneurs. But
lack of access to funding and technical support
often disempowers the local actors. Financing,
existing modes of operation. But many achieve- isations understand innovation inherently as but also expertise in methodologies, building
ments from the last decades are jeopardised.The an opportunity to transform themselves and digital ventures, IT-skills and business plan-
hunger curve is moving up again, environmental their working cultures. Looking at the lead- ning are needed.
degradation is getting out of control, while so- ing business companies from the 1970s, how
cial and economic inequalities and conflicts are many of them have prevailed? Only very few, However, the uncertain success of new ideas
increasing in many countries. Core framework and only those that have managed to reinvent often keeps supporters away. The formula-
conditions are changing rapidly, and traditional themselves permanently. And only those that tion of stage gates, clear milestones that must
methods and technologies to fight hunger and were ready to enter new fields of action at the be achieved for each step in the incubation
poverty are reaching their limits. right moment. process, can mitigate the risk. If an idea turns
out to fail, it must be adjusted or abandoned
Climate change poses an unprecedented chal- quickly. This is the case for the majority of
lenge to all humankind, affecting the most Boosting digital innovations ideas, and is nothing bad. On the contrary,
vulnerable first and hardest. It is a disruptor holding on to a weak idea would take resourc-
that requires disruptive reactions – faster and Providing digital solutions poses such a prom- es from a potentially stronger one.
more innovative. Globalisation in combina- ising innovative field of action in development
tion with a growing world population is put- cooperation. This can, for example, be prod- Finally, if a digital idea can be turned into a
ting resources under pressure. Armed conflicts ucts or services for market linkages, learning Minimum Viable Product (MVP), a very basic
and crises are becoming super-regional. Frag- and information sharing platforms, tools for version that possesses the most essential prod-
mented answers do not suffice anymore. And increased process efficiency or digital financial uct features, developing it further and scaling it
finally, digitalisation is triggering new dynam- services. Scaling digital products is relatively up can produce great impact. Digital solutions
ics incredibly fast. Concerns over data protec- easy, and transfer from one country to another can be easily equipped with additional func-
tion and a “digital divide” between North and is simple and considerably economical, if cul- tionalities and multiplied. Economic sustain-
South – and within the developing societies tural and geographic differences as well as the ability as well as the ownership and the use of
– are rising. On the other hand, digitalisa- context are understood. They can create good data are important questions. An open-source
tion provides opportunities such as access to value for the users through simpler, faster and policy should be a standard for greatest impact
markets and information, social mobilisation cheaper processes, new forms of social organ- while the protection of user data must be guar-
and transparency in the policy sector. Mech- isation and better access to networks, markets anteed according to the highest standards.
anisms of technical and financial assistance are and information.
not keeping the promise to create global jus-
tice. Communities in the Global South more While the opportunities for digital apps in the Working in business formats
than ever demand true eye-level cooperation Global North show signs of saturation, digi-
and empowerment. And, especially younger tal market gaps exist in the Global South. The Social businesses are another growing field of
generations in many countries of the Global Bottom of the Pyramid is either no interesting action. For many years, businesses and philan-
North share this perspective. customer group for big tech firms or entry in thropic projects have been perceived as con-
these new markets has been significantly more trary worlds. And still, merging the good parts
“Innovate or die” is a known mantra in the challenging to them than they expected. This of both bears new opportunities for much big-
business world. As it seems, it is becoming provides an opportunity for local tech start-ups ger and long-lasting impact. Social businesses
more and more relevant for development co- and entrepreneurs in the Global South who are rapidly gaining importance as a compli-
operation, too. The effectiveness of our sector are ready to catch up. ment for classic grant-based philanthropic
will depend on our ability to strengthen our projects. Although still not a very much tested
innovative capabilities. The present situation is: There are well proven concepts to identi- and established format, social businesses are
fy powerful and, at the same time, profitable more than a trend. They are an opportunity to
New opportunities for impact are not ideas. Take, for example, “innovation chal- give the content of development cooperation a
identified systematically. lenges” – a clear process to find new solutions fundamentally new standard format.
Sometimes ideas for great solutions are to problems. It starts with the step of wide ide-
found, but they cannot grow for lack ation, leading to a selection of the best ideas, Being businesses, they must be needs-orient-
of support – financial resources, exper- testing them in simple prototypes and finally ed by nature, offering products or services
tise and partnerships are not available. selecting and supporting the most promising that meet sufficient demand from their target
If a great solution for impact is devel- concepts in order to turn them into a func- groups. If they grow to a self-sustaining matu-
oped, it often does not unfold the im- tioning product version. This process can be rity level with the right governance structure
pact it could have as it is not scaled for an inclusive and open invitation for grassroot in place, they can be both profitable and im-
maximum impact. innovators who might not even have thought pactful.
6 FOCUS
Social businesses are not limited in terms of Put the customer in the focus: Participa- and value for customers, and not only profit
time and will adjust their offerings permanent- tion of target groups is a prerequisite for sus- and shareholder value. However, the only way
ly to changing customer demand. Ideally, the tainability. It is an additional step to perceive to make this evident will be through providing
businesses expand over time, scale and mul- the people we work with as self-determined concrete proof.
tiply their impact. They create local jobs and “customers” and not as “beneficiaries”. This
can have strong positive effects on local val- has a truly liberating and empowering effect. Have courage: Change is the objective of
ue chain creation. To survive, their offerings Co-designing together with and for these cus- Development Cooperation, but stability is a
must stay relevant and qualitatively so good tomers creates real value. They have the free- dominant feature of its culture. Its eco-system
that they can compete with others. But these dom to demand and choose the best offerings. is built on carefulness and caution and tends to
advantages must be weighed against the risks. Proximity to customers is a decisive advantage replicate proven solutions – for good reasons.
in idea generation. User-centric design of apps As a result, the courage to try out new things,
Obviously, establish a business is a complex or sales channels for impact products are good including the possibility to fail, is not strong-
challenge which is full of uncertainties. Many examples. ly incentivised. Creating room to experiment
businesses fail in the first years, and invested and a culture where failure is not punished but
money and work is lost. Certain prerequisites Act in partnerships: Multi-sector partner- learnt from will be a core task for the leaders
must be in place to create a successful social ships are crucial to scale social innovation. in charge.
business. Amongst others, a good business Innovative projects and social businesses are a
case, sufficient start-up funding, access to mar- perfect platform to bring diverse partners to- It takes courage to invest sweat and tears,
kets, the right business partners and, most of gether from science, the private sector and im- money and other resources into something
all, a strong entrepreneurial business team are pact-driven organisations. Each can contribute without knowing whether it will work. But
crucial factors for success. with its own set of resources and networks. In- it can change the world if even one out of a
novation is an opportunity to overcome tradi- dozen experiments succeeds. Using our in-
tional silos, to share insights and to join forces novative potentials for maximum impact is a
What does it take? to achieve common goals. challenging and yet promising call to all of us.
Ultimately, innovation is much bigger than Overcome cultural orthodoxies: Business
digital solutions and social businesses. It com- approaches and even businesses terminolo-
prises physical innovations and non-for-profit gies have left a bitter taste among many im- Florian Landorff is Head of Innovation at the
solutions as well as a set of methodologies, and pact driven agencies. Neo-capitalistic excesses German NGO Welthungerhilfe in Bonn, Germany.
finally, it is a mind-set, too. Digital products have manifested a perception that “social” and Franziska Kerting is Head of Project for Digital
and social businesses are just two examples of “business” are contrary poles. But businesses Innovations at Welthungerhilfe.
new ways to fight hunger and poverty. Some hold the power to create sustainable impact Contact: florian.landorff@welthungerhilfe.de
key ingredients can help to enter these fields:
Be agile: Using agile principles and meth- SOCIAL BUSINESSES AT WELTHUNGERHILFE
odologies can make our work more effective,
interactive and creative. Many agile methods The German NGO Welthungerhilfe started to engage in social businesses in 2017. Today,
come from the IT and business world but can the organisation is financially and operationally involved in five different purpose-driven
easily be adapted to classic project management. companies in Africa which provide products and services that are designed and directed to
Transparent and flexible collaboration helps vulnerable customer groups. Partly, these businesses have developed from own successful
to adjust actions flexibly, instead of pulling not-for-profit projects. In other cases, Welthungerhilfe is joining forces with already existing
through plans. The Scrum Methodology for social businesses and supporting them with its operative structures, expertise in the rural
product and project management is a good ex- context and markets. Also, most of its own digital products are meant to be managed in social
ample of an excellent format that allows people businesses to guarantee their economic sustainability. All businesses have their own local
from various parts of an organisation and exter- executive management, while Welthungerhilfe is engaged in the Supervisory Boards.
nal participants to work and co-create together.
AGRISHARE – BRIDGING A MARKET GAP IN AGRI TOOLS ACCESS
In many African countries, smallholder farmers lack access to necessary
productive and transport machinery. Together with local partners in Zimbabwe,
Welthungerhilfe has developed AgriShare, a digital platform for agricultural
machinery. Bigger farms can rent out their tractors, lorries or other equipment
to smallholder farmers or farmer groups. Food production and supply in the
region have improved, and both sides benefit economically. The app was tested
in Zimbabwe and is currently rolled-out to Uganda. It will be managed in local
social businesses to guarantee economic sustainability.
https://www.agrishare.app
RURAL 21 01/21 7
CHILD GROWTH MONITOR – A DIGITAL GAME-CHANGER IN
THE DETECTION OF UNDERNUTRITION AND MALNUTRITION
Measuring children in order to detect malnutrition in all its forms is a phys-
ically difficult and costly process that involves scales, measuring boards
and, often, middle upper arm circumference (MUAC) tapes. The results
of the manual measuring processes are often inaccurate, and millions
of children are never measured. Children often do not get the health and
life-saving treatment they need.
The Child Growth Monitor was born as idea in Welthungerhilfe's first
innovation challenge to find new approaches in the fight for zero hunger
in 2017. It is an app that turns mobile phones into child scanning devices
by using artificial intelligence and virtual reality. A 15-person tech team
has been formed and is currently preparing the release of the first product
version. Many partners from science, the non-profit world, tech companies
and other private sector partners have joined this quest.
The first product version of the app is designed for use by health care
workers. It will enable them to detect the nutrition problems of millions of
children to safeguard their health and save lives.
https://childgrowthmonitor.org
SPOUTS OF WATER – JOINING FORCES FOR GREATER REACH
Unsafe drinking water has major negative health, economic and social
effects for Ugandans. The Ugandan company Spouts of Water (founded
2014) is responding to these problems with the production of a locally
manufactured Purifayaa ceramic water filter, which effectively takes out
99.99 per cent of bacteria. Since inception, Spouts of Water has distributed
over 62,000 Purifaaya filters providing more than 375,000 end-users with
long-term access to safe and clean drinking water. Welthungerhilfe started
to cooperate with the business in 2019 to bring the product to new rural
customer groups and support it on its path to broad impact creation.
https://spouts.org
WASAP – FROM PROJECT TO BUSINESS
Hygiene facilities such as showers, sinks, toilets or wells are unafford-
able for many people in Sierra Leone, causing strong negative health and
economic effects for the populations. Together with Emas International,
a German-based association that promotes simple technologies for safe
drinking water access, and a local entrepreneur, Welthungerhilfe has
turned a former NGO project on affordable low-tech WASH (Water, Sanita-
tion & Hygiene) solutions into a local low-tech start-up.
The Water Sanitation Promotion Company Limited (Wasap) was estab-
Photos: Welthungerhilfe
lished in February 2020 and is now selling affordable products to poor
customer segments in the country, including DIY (Do It Yourself) instruc-
tions and maintenance support.
www.wasap.life
8 FOCUS
Climate change and its impact urge stepping up innovation efforts. Kenya farmer
Mercy Wambui measuring rain water on her farm. Photo: Georgina Smith/ CIAT
More, but not of the same –
new funding for a new type of AR4D needed
Given the ambitious targets we need to meet to transform food systems under climate change, innovation efforts need to
be significantly stepped up – both in terms of innovation practice and investment volumes. New approaches to financing
action in food systems are there, but they have to be linked to innovation to drive rapid transformation.
By Ana Maria Loboguerrero Rodriguez, Bruce Campbell and Alberto Millan
The 2030 Agenda for Sustainable Develop- some examples, we are not reducing child un- riculture and food systems on a pathway that
ment sets out an extremely ambitious and dernourishment fast enough, we are heading is more sustainable, inclusive, healthy and cli-
transformational vision, with a world free of for a 3-4 °C warmer world, which would be mate-resilient. However, these actions have to
poverty, hunger, disease and want. The Agen- a disaster for food production, especially for enable innovation across all food systems ac-
da emphasises the importance of structural the over 500,000 smallholder farmers in the tors – that is all 7.7 billion of us. Agricultural
transformation to strengthen the productive world. Furthermore, two billion people are research for development (AR4D) is a major
capacities of least developed countries in all overweight, and whereas 650 million people part of the innovation system, but it cannot be
sectors and urges the world to take the trans- are obese, 690 million went hungry in 2019 business as usual AR4D.
formative steps needed to shift itself onto a sus- (more than in 2018).
tainable and resilient path. Current AR4D and innovation systems are of-
ten fragmented, inefficient, overly supply-based
In this regard the 17 Sustainable Development A new approach in agricultural and siloed. Innovation can be hampered by fear
Goals (SDGs) with their 169 associated targets research for development is needed of failure, perverse incentives that may result in
were announced with the purpose of defining duplication and redundancy, short-term ori-
a framework to transform the world. We are At the heart of this transformation is innova- entations and a focus on “publish or perish”.
not on track to achieve the targets. To provide tion. Many actions can be taken to align ag- In such circumstances, it is difficult to deliver
RURAL 21 01/21 9
end-to-end, sustainable solutions to problems.
By end-to-end, we refer to approaches that
work across the innovation system for agricul-
ture (from early-stage development to product
development to large-scale deployment), where
research efforts are targeted towards end-user
needs and underpinned by robust partnerships
with private, public and civil society actors to
ensure adoption and societal outcomes. The ap-
proach also implies working on the institutions
and incentives that ensure uptake and scaling. Felistus Chipungu, orange-fleshed sweet potato Farmer Sita Kumari uses mobile phone apps to
breeder and scientist with the International Potato enhance her yields and get access to market and
One of the eleven actions for transforming Center (CIP), working at a CIP facility in Blantyre, labour. Here she is with scientist Pratima Baral and
Malawi. her friend Nilam (r).
food systems proposed by the CGIAR Re-
Photo: Chris de Bode/ CGIAR Photo: Georgina Smith/ CIAT
search Program on Climate Change, Agricul-
ture and Food Security (CCAFS) is to signifi-
cantly change the approach of public AR4D Another example is CGIAR – the Consultative these opportunities is approximately 320 bil-
by 2025, with at least 50 per cent of public Group on International Agricultural Research lion USD per year. Innovations in how pub-
investment in AR4D providing end-to-end – which although relatively well funded, has an lic sector funding is used can pave the way
solutions. We will also need to offer research- AR4D budget which is less than that of some to unlock the billions needed to realise these
ers the right incentives so that they can embark of the large agricultural companies (also see ar- business opportunities. But what could these
on this new way of doing AR4D, where, for ticle on pages 11-13). To date, most finance investments look like?
example, publications are not the dominant for adaptation to climate change and other ac-
metric of success. Mechanisms such as out- tions for small-scale farmers comes from public
come-based budgeting – where resources are sources, such as development finance institu- Innovations in sustainable finance
allocated based on demonstrated ability of sci- tions, bilateral donors and climate funds. A key
ence groups to generate outcomes – should be question is whether such funds could be used Blended finance – the use of catalytic cap-
considered as enablers of change. to leverage manifold more private capital. Tra- ital from public or philanthropic sources to
ditionally, a number of barriers such as lack of increase private sector investment – is an in-
pipeline/investable projects, high investment novation that is moving rapidly forward. It al-
Fostering new types of investment in risk and lack of primary data and information lows different types of organisations to invest
food systems as well as lack of intermediation to efficient- together in a structured way such that each
ly connect different pools of capital to invest- accomplishes their own financial return and/
The days when the unique challenge was to ments has prevented private finance from flow- or development impact objectives. To date,
increase agricultural productivity are long ing to food systems initiatives at scale. Public approximately 140 billion USD in capital for
gone. The challenge now is different and more finance can help reduce the bottlenecks so that sustainable development in developing econ-
complex. We need to satisfy increasing food private finance flows. omies has been mobilised through blended
demand while dealing with climate change finance, with agriculture representing approx-
impacts, increase incomes for farmers while Some current trends provide hope. Food and imately 16 per cent of this. One nice example
reducing the ecological footprint from food agriculture companies, investors and financial in relation to this innovation is The Global In-
systems, reduce inequality, enhance animal institutions are increasingly realising the cli- novation Lab for Climate Finance that brings
welfare and ensure better diets. Moreover, the mate-related risks they face, as climate change public and private actors together to turn in-
challenges are magnified when dealing with affects markets, assets, infrastructure, invest- novative ideas into investable mechanisms for
small- and medium-sized farming enterprises, ments, workforce, etc. They are also being put climate adaptation and mitigation. The Lab’s
where finance, resources and information are under growing pressure from their customers, over 60 members provide expertise as well as
often lacking, where poverty, vulnerability to shareholders and the public at large to rise to capital for its instruments. They comprise both
climate change and food insecurity intersect, the new challenges. Many have already started public-sector institutions such as the Nether-
and where transaction costs are extremely high assessing their exposure and risk/return pro- lands Ministry of Foreign Affairs or KfW De-
to reach millions of small farms. files, designing strategies to capitalise on new velopment Bank and private-sector actors like
business and sustainable finance opportunities, BlackRock, Allianz or the Rockefeller Foun-
Traditional sources of funding for AR4D have and they have been shaping their business to dation. The Lab has launched 35 innovative fi-
often not been sufficient; and are definitely improve their social and environmental stand- nancing instruments to date, enabling a mobil-
insufficient for the new agenda. For example, ing. Thus, the time is ripe for new approaches isation of 1.5 billion USD. Several instruments
in the 2014 Malabo Declaration on Accelerat- to financing food systems innovations. have focused on smallholders, including the
ed Agricultural Growth, African governments Climate-Smart Lending Platform by F3 Life
committed to allocate at least ten per cent of According to the Business and Sustainable De- and the Smallholder Forestry Vehicle.
public spending to agriculture, but few coun- velopment Commission, business opportuni-
tries have met that target. According to the ties in the implementation of the SDGs related Considering the massive challenges that soci-
Biennial Review published recently, ‘’the con- to food could be worth over 2.3 trillion US ety faces, impact investing is a growing mar-
tinent as a whole is not on track to meet the dollars (USD) annually for the private sector ket. Many investors are incorporating measur-
goals and targets of the Malabo Declaration...’’. by 2030. The investment required to realise able social and environmental impact targets
10 FOCUS
alongside their financial return targets in their VALUE CHAIN FINANCE
investment portfolio. This growing market
provides resources to address the world’s most Value Chain Finance (VCF) refers to financial measures to grow the crop. In Nigeria, a VCF
urgent challenges as demonstrated by the case products and services that flow to or through approach could unlock plantain production,
of Netherlands-based Actiam Impact Invest- any point in a value chain enabling investments improving the livelihoods of many small-scale
ing, who decided to invest in Pro Mujer Bo- that aim at increasing actors' returns and farmers. Considering four phases for the
livia (a microfinance institution) in an effort facilitating the growth and competitiveness of implementation of the approach (identification
to provide them with the additional working the chain. It is an approach that fosters under- and evaluation of potential value chains, facil-
capital needed to expand their client base to standing of the financing opportunities within itation and leveraging of market linkages, de-
provide access to financial services for impov- a value chain and the way in which finance signing of financial products and evaluation of
erished women in Bolivia. One fundamental should be tailored to a specific value chain. As capacity to pay, and granting, monitoring, and
aspect of impact investment is the commit- an example, the VCF approach was used in a collection of loan), analyses show that invest-
ment of the investor to measure and report simulation for plantain production in Nigeria, ment in VCF for plantain in Nigeria could start
the social and environmental performance and covering the period from 2016 to 2040. Plantain yielding benefits in the third year, with benefits
progress of the investments, ensuring transpar- is considered a “high-value crop”. Neverthe- equalling the cost of investment in the ninth
ency and accountability. less, given a variable and low production, farm- year and a total economic surplus of 2,173,900
ers usually lack access to reliable financing USD at the end of the 25-year period.
Tech-enabled finance also provides an op-
portunity to develop innovative financial and
market delivery channels. Digital technology sis for lending. Empowered local organisations private capital at scale in low-carbon and cli-
reduces transaction costs and creates econo- as platforms for increased access to finance mate resilient food systems. Under this mecha-
mies of scale, supports transparency and risk through initiatives such as revolving credit, nism, CGIAR/CCAFS works with an impact
management, and speeds and smoothes cash collective savings and finance mobilisation are investor to develop its investment strategy,
flows. Examples such as Hello Tractor, a US- a crucial part of the ecosystem if scale is to be identify and assess key risks and investment
and Nigeria-based agtech social enterprise achieved. Bundling financial services with in- opportunities and provide pre-investment and
which, through digital tools, connects tractor puts, training, knowledge-sharing, climate-in- post-investment technical assistance. AR4D
owners with farmers in need of tractor services, formed advisory services, etc. can be an im- can play a profound role in terms of advanc-
demonstrate the case of this innovation as a portant mechanism to leverage economies of ing the science towards accurately measuring
way to reach many smallholder farmers that scale, minimise cost of delivery, and maximise the social and environmental performance of
lack the capital to purchase machinery. The accessibility for the most vulnerable groups, in- these investments. AR4D could also engage
emerging data economy and big data analytics cluding women, youth and the impoverished. in developing guidance to rigorously assess
offer the opportunity to analyse, understand and prioritise the major risks affecting actors
and address the underlying risks of market fail- Examples where financial systems have gone along agricultural value chains and identifying
ures. In the same manner, big data analytics the last mile include mobile money in Ken- actionable components of an integrated risk
can be used to more accurately evaluate farmer ya, which has given women more control management strategy for the value chain.
risk profiles. Blockchain technology can im- over their finances, and has supported 194,000
prove the credit system and the information households in leaving poverty, the majority of The Agenda in food systems has to be ambi-
asymmetry, build a smooth information trans- which are female-headed. Value Chain Fi- tious, and we have argued that the funding for
mission channel, improve the transaction reli- nance constitutes another mechanism to pro- AR4D is insufficient and that AR4D cannot
ability, and reduce the cost of the traditional mote financial inclusion (see Box). be business as usual. Innovations in finance to
agricultural financing. It is also consolidating transform food systems can be the cornerstone
as an innovation for product tracing, emissions for new ways of funding a new type of AR4D.
monitoring and carbon market finance. As AR4D empowering and leveraging
these technologies continue to advance, policy sustainable finance
protecting data privacy and incentivising data Ana Maria Loboguerrero Rodriguez is Research
usage will be necessary to prevent misuse and The ultimate innovation is embedding AR4D Director of Climate Action at the Alliance of
lack of use of data. in sustainable finance for food systems transfor- Bioversity International and the International
mation. The vision is reorienting and leverag- Center for Tropical Agriculture (CIAT) in Cali,
Promoting financial inclusion. Whereas in- ing large volumes of capital into food systems Colombia. She is also Head of Global Policy
vestors may deal in hundreds of millions of dol- that drive transformation. As indicated above, Research at the CGIAR Research Program on
lars, an individual small-scale farmer may only investors and food companies are looking for Climate Change, Agriculture and Food Security
be looking for a few hundred dollars in a par- innovative solutions, thus embedding research (CCAFS).
ticular season. Channelling large investments into sustainable finance initiatives is key. Bruce Campbell is Director at the CGIAR Research
into small amounts for millions of small-scale Program on Climate Change, Agriculture and Food
farmers is challenging, but digital approaches – We see this starting to happen. For example, a Security (CCAFS) and based in Denmark.
as mentioned above – will help bridge the di- new impact investment fund for climate-smart Alberto Millan is Global Lead, Sustainable Finance
vide. Financial inclusion is essential and can be food systems is being established, where at CCAFS and is based in Spain.
targeted via the metrics developed for impact CGIAR/CCAFS partners with the Swiss en- Contact: a.m.loboguerrero@cgiar.org
investing. It will also be crucial to create and terprise responsAbility Investments AG to
implement innovative approaches to finance design a structure and innovative investment
For more information: www.rural21.com
that move beyond private collateral as the ba- solution that can help leverage and deployRURAL 21 01/21 11
Moving towards “One CGIAR”
When the Consultative Group on International Agricultural Research was founded in 1971, its most urgent task was
to raise agricultural production to feed the world’s rapidly growing population. While this task has not lost its urgency
since then, global challenges today are significantly more complex. This has also had an impact on the organisational
structure and the research agenda of the Group. Here, our author gives an account of how CGIAR developed and the
process of reform which it has been undergoing since the beginning of the millennium.
By Uma Lele
Today, finding climate-smart solutions for agriculture is right at the top of the CGIAR research agenda. Photo: Georgina Smith/ CIAT
CGIAR, the largest international agricultural established respectively in 1960 and 1963 to (FAO) and the United Nations Development
research network, was once seen as the heart develop high-yielding, disease-resistant vari- Programme (UNDP), CGIAR was established
of the global food system. It still remains im- eties, and both supported by the Rockefeller to coordinate international agricultural research
portant particularly for the poorest people in and Ford Foundations. Their work dramati- efforts aimed at reducing poverty and achieving
the world, although its relative significance has cally increased production of staple cereals, and food security in developing countries. Implicit
declined. Other research systems have grown, turned countries like India, perpetually facing in the CGIAR model, rarely well-articulated
and support for the CGIAR has stagnated, food shortage in the 1960s, into a net exporter but practised with conviction in Asia by the
while the challenges it is expected to address of cereals by the late 1970s. But these invest- likes of Norman Borlaug and Sir John Craw-
of environmentally sustainable, healthy food ments were not enough to feed the world's ford, was that CGIAR would produce inter-
systems have multiplied and become more rapidly growing population. national and regional public goods, with large
complex. spill-overs and calling for considerable state-
of-the-art scientific expertise and resources,
Originally, the Consultative Group on Inter- A world-wide network of agricultural whereas developing countries would invest to
national Agricultural Research, now simply research centres strengthen their own research systems to “bor-
known as CGIAR, was established in 1971, row” new knowledge from CGIAR. As shown
around the time of the first world food crisis. It So, in 1970, the Rockefeller Foundation pro- below, regrettably, that model has been prac-
was based on the work of two iconic interna- posed a worldwide network of agricultural re- tised by only a few developing countries.
tional centres, the International Rice Research search centres under a permanent secretariat.
Institute (IRRI) and the International Maize Supported and developed by the World Bank, The System grew from the original four cen-
and Wheat Improvement Center (CIMMYT), the UN Food and Agriculture Organization tres, besides CIMMYT and IRRI the Interna-12 FOCUS
tional Center for Tropical Agriculture (CIAT) took initial steps to formalise governance and give the strategic direction for the centres and
and the International Institute of Tropical Ag- management, adopting a movement towards a CGIAR Research Programs, ensuring that
riculture (IITA), to include many other cen- centralised model as well as large system-wide they focus on delivering measurable results
tres. The research scope also expanded – from challenge programmes. which contribute to achieving CGIAR ob-
rice, wheat and maize to cover cassava, chick- jectives. However, the research programmes
pea, sorghum, potato, millet and other food From 2008 to June 2015, it adopted trans- were designed prior to the Framework being
crops, and encompassed livestock, farming formational changes in governance and man- ready, so now some retrofitting had to take
systems, the conservation of genetic resourc- agement. The CGIAR Consortium of In- place to get the programmes in line with it.
es, plant nutrition, water management, policy ternational Agricultural Research Centers A biennial Global Conference on Agricultural
research, and services to national agricultur- was established in April 2010 to coordinate Research for Development (GCARD) pro-
al research centres in developing countries. and support the work of the 15 internation- vides a forum for closer engagement of devel-
By 1983, 13 research centres were operating al agricultural research centres. The CGIAR oping countries and partners in developing and
under its umbrella around the world, and by Strategy and Results Framework (SRF) was guiding the research and development agenda
the 1990s, the number of CGIAR centres had established to guide the work of CGIAR-sup- of the CGIAR Consortium and the CGIAR
grown to 18. Mergers between the two live- ported centres. The work of the CGIAR Fund. The first GCARD was held in Mont-
stock centres (the International Laboratory for Consortium was governed by the Consortium pellier, France, in March 2010.
Research on Animal Diseases (ILRAD) and Board, a ten-member panel that has fiduciary
the International Livestock Centre for Africa responsibility for CGIAR Research Programs,
(ILCA)) and the absorption of work on banan- including monitoring and evaluation and re- Developing an integrated System-level
as and plantains into the programme of the In- porting progress to donors. CGIAR Research research programme
ternational Plant Genetic Resources Institute Programs are approved and funded by the
(IPGRI; later called Bioversity International) CGIAR Fund on a contractual basis through From June 2015 to July 2016, and from then
reduced the number of centres to 16. Later, performance agreements. on to the present, further changes to gover-
another centre, the International Service for nance and management have been in progress,
National Agricultural Research (ISNAR), was including the 2019 (November-December)
absorbed into the policy research, reducing the Avoiding fragmentation and One CGIAR concept – a unified governance
total number of supported centres to 15. duplication of effort and management approach incorporating a re-
constituted System Management Board and a
This consolidation was not enough to address In 2008, CGIAR embarked on a change new Executive Management Team. These var-
system-level problems, which consisted of a process to improve engagement between all ious organisational changes have been intended
large number of centres, the increasingly com- stakeholders in international agricultural re- to develop an integrated System-level research
plex research agenda, often short-term funding search for development – donors, researchers programme across the System’s 15 independent
to carry out long-term research, funding tied and beneficiaries – and to refocus the efforts of research centres, challenged by centre auton-
to numerous small individual research proj- the centres on major global development chal- omy and donor sovereignty, with different
ects, and the growing demand from donors to lenges. A key objective was to integrate the research mandates, and accountable to its 15
“show impacts on the ground”, despite little work of the centres and their partners, avoid- independents boards with multiple, fragment-
or slow growth in funding. At the same time, ing fragmentation and duplication of effort. ed sources of funding for research programmes.
in large emerging countries like China, India, At the time of writing this paper three of the
and Brazil, major research systems had evolved Thus the CGIAR components included the 15 centres were in two minds about whether
with formidable cadres of agricultural scientists, CGIAR Consortium of International Agricul- to join the reformed One CGIAR. Second,
while small, low-income countries faced weak tural Research Centers, the CGIAR Fund, the CGIAR has sought to promote research in-
national systems with diseconomies of scale. CGIAR Independent Science and Partner- novations that transform food, land, and water
ship Council (ISPC) and partners. Research is systems, in the context of climate change, to
Public sector research in industrial countries guided by the CGIAR Strategy and Results ensure a scientifically sound programme under
was stagnating as private sector research was Framework. The CGIAR Consortium unites circumstances in which the role of an inde-
increasingly taking up the space, so that the the centres supported by CGIAR; it coordi- pendent scientific advisor has inadvertently be-
share of developing countries’ public research nates limited research activities of about 15 come secondary to donors’ desire for choice of
expenditures in global research had increased research projects among the centres and pro- projects which would promise short-term im-
with increasing differentiation of research sys- vides donors with a single contact point to pacts. Third, by linking research to the realisa-
tems within them – a few large national ag- them. The CGIAR Fund aims to harmonise tion of SDG 2 (zero hunger), CGIAR has been
ricultural research systems (Nars) in emerging the efforts of donors to contribute to agricul- working to reduce hunger and foster diet di-
countries, and a large number of small, weak tural research for development, increase avail- versification by addressing issues of micronutri-
Nars. able funding and promote financial stability. ent deficiencies. The increasingly complex re-
The CGIAR ISPC, appointed by the CGIAR search agenda has had to be undertaken under
Fund Council, provides expert advice to the conditions of uncertain financial resources tied
The reform process funders of CGIAR, particularly in ensuring to numerous small projects. Finally, CGIAR
that CGIAR's research programs are aligned has faced the challenge of reducing the con-
In response to the changes in the external with the Strategy and Results Framework. It sumers’ growing reliance on basic staple crops
environment, CGIAR has been in an almost provides a bridge between the funders and and livestock (wheat, rice, maize, beans and
perpetual state of reforms from the start of the CGIAR Consortium. The hope was that root crops) for food security, since, historically,
the new millennium. From 2001 to 2007, it the Strategy and Results Framework would CGIAR’s main research thrust has been thatRURAL 21 01/21 13
The CGIAR System Organization headquarters in Montpellier, France. Photo: CGIAR
of meeting the calorie gap. This has implied of a unified and integrated “One CGIAR”, accountable for institutional performance to
incorporating biodiversity into the farming sys- to adapt to the rapidly changing global con- the System Board.
tems to increase resilience to climate change ditions, while also making the CGIAR system
and resource pressures and promote dietary di- more relevant and effective. The fragmented The ‘Research Delivery and Impact’ Division
versity, as opposed to the previous practice of nature of CGIAR’s governance and institu- (‘RD&I’) will consolidate research capabilities
monocropping of high yielding varieties. tions had limited the System’s ability to both into three global ‘Science Groups’ with five
respond to increasingly interconnected chal- cross-cutting ‘Impact Area Platforms’. Science
lenges and to consistently deliver best practice Groups will be the primary operational units
Responding to funding and and effectively scaled, research solutions need- of CGIAR research, managing and delivering
management challenges ed to maximise impact. The expectation is that the CGIAR portfolio of research and innova-
by integrating and improving, CGIAR can tion, designing research initiatives and bilater-
In the light of these strategic imperatives, further leverage its role as the leading research al projects, allocating research staff and assets,
CGIAR has responded to its funding and and technology partner in agricultural research balancing research budgets, supporting global
management challenges creatively. In funding for development. The process of moving and local research engagement and fundrais-
programmes, it has attempted to create “Win- to “One CGIAR” was agreed to at the Ex- ing, and providing global scientific leadership
dows” of completely unrestricted funding (via traordinary General Assembly of the Centers to all staff.
Window 1), funding directed to centres and (Rome, December 2019). It includes a unified
programmes (via Window 2) and completely governance and management through a recon- The results of this latest ambitious restructur-
restricted funding (via Window 3). The vari- stituted System Management Board and a new ing will take time to materialise. Meanwhile,
ous reforms were intended to both increase the Executive Management Team. An established CGIAR rests on its laurels of well-demon-
level of overall funding and the level of unre- unifying mission of “Ending hunger by 2030 strated widespread impacts of its past research,
stricted funding. However, CGIAR has been – through science to transform food, land, and mostly in the areas of germplasm improve-
only partially successful in mobilising increased water systems in a climate crisis,” is focused on ment, and some policy research.
and unrestricted funding, which increased un- five impact areas: nutrition, poverty, gender,
til about 2014, after which it has declined. climate, and environment in support of the
SDGs (CGIAR 2019e, 2020). Uma Lele is a Visiting Scholar at the Institute of
The 2018 CGIAR Annual Performance Re- Economic Growth, Delhi, India, and President Elect
port noted that 105 policies, legal instruments The new management structure of the “One of the International Association of Agricultural
and investments were modified in their de- CGIAR” is now in place, with three quali- Economics. This article draws on the research
sign or implementation, informed by CGIAR fied managing directors. Additionally, the new conducted for the book "Food for All, International
research which involved 1,003 partnerships structure is formed of three divisions, sub-di- Organizations and the Transformation of
(CGIAR 2018b, 10). vided into ten global groups and six Regional Agriculture", written by Uma Lele, Manmohan
Groups, with the Global and Regional Direc- Agarwal, Brian Baldwin and Sambuddha Goswami
The 9th Systems Council (November 2019) tors reporting directly to the One CGIAR Ex- (Oxford University Press, 2021).
approved yet another institutional innovation ecutive Management Team, who in turn are Contact: umalele1@gmail.com14 FOCUS
Leapfrogging for Africa’s agri-food sector
Affordable and effective solutions are being applied in a wide range of areas in which Africa has been lagging behind
in terms of key development indicators. Development leaps are above all crucial in the fields of health, education, and
agriculture and food, our author argues, concentrating on the two latter items.
By Sabine Sütterlin
Sacks made of three layers of polyethylene and store them safely so that they can later be simply leapfrogged the landline era. Today 477
with an airtight closure can trigger a great processed into durable products and transport- million people in sub-Saharan Africa – 43 per
leap in development. Purdue Improved Crop ed to consumers. cent of the population – have a mobile phone,
Storage bags, or PICS bags, were originally in- while 272 million use mobile Internet. Mobile
vented to tackle the problem of seed beetles Leapfrogging is the term used to describe the phones are used not just to make phone calls
that were ravaging the stored cowpea harvest bypassing of inefficient, environmentally dam- but also to make cashless purchases and to take
in Cameroon; they work by depriving the in- aging and expensive steps in the development out loans and insurance policies.
sects of air. PICS bags and similar containers of achievements that improve and simplify
are now available in most African countries, people’s lives. Leapfrogging is not confined to technical and
enabling grains, legumes and other crops to scientific breakthroughs; it also applies to ap-
be stored without risk of damage by pest or Africa supplies some impressive examples of parently simple inventions and social innova-
mould and without the use of pesticides until leapfrogging. For example, just 20 years ago tions. Africa needs leaps of all sorts, because
the farmers are able to market their produce at telephoning was still impossible for the ma- it lags behind almost every other part of the
a good price. jority of Africans. Laying cables everywhere world on virtually all development indicators.
would have been technically too demanding. At the same time, its rapid population growth
This is leapfrogging for Africa: a technically In addition, the investment costs could not often frustrates or even reverses economic de-
simple, affordable, direct and permanently ef- be justified given the limited number of users velopment. On top of this there now comes
fective solution to a problem which, according who could afford to pay. When cheaper mo- the global health and economic crisis caused
to conventional understanding, requires signif- bile phone technology arrived, the continent by the novel coronavirus. This could hit Africa
icant investment and wide-ranging measures. hardest of all: the impacts are already notice-
The fact is that up to one-fifth of the food able.
produced by farmers in sub-Saharan Africa is
lost before it can fill hungry stomachs. One of Development leaps in Africa are particularly
the reasons for this is the absence of the tech- crucial in three key areas: health, education,
nology and infrastructure needed to dry crops and the agriculture and food sector.
Today, 43 per cent of the population in sub-
Saharan Africa have a mobile phone.
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