The long-term sustainability for this model hinges on the expanded network of customer base (i.e. a critical mass of customers). Through the intervention, the AEs would have provided quality services to farmers. This will lead to increased income as a result of increased use of inputs and technological solutions. The demand for inputs and technological solutions will therefore increase. There are three (3) possible scenarios to increase farmers’ income under this model: (i) reduced cost of cultivation as a result of affordable inputs and access to credit; (ii) increased revenue/profit as a result of better market prices/markets; and (iii) increased cropping intensity through enhanced access to irrigation technologies. As the market expands, the income for AEs will also increase because input and technology solution suppliers will have an incentive to pay the AEs through proceeds from increased sales. In this way, they can cater for the cost of transportation for EAs to visit farmers and provide extension services. The fact that AEs are paid on commissions of sales presents further an incentive for them to provide quality services to farmers, which will subsequently trigger increased use of inputs and technological solutions. On their part, youth entrepreneurs will have created a sustainable stream of income to cater for their needs. The model will complement the existing government extension services. The government extension officers will play a critical role in identifying the AEs in collaboration with village organizations and Self-Help Groups (SHGs) operating in the PSSA Zone of Influence. The specific partners PSSA should seek collaboration with include: (i) large input suppliers, e.g ETG Inputs, Syngenta, Minjingu Fertiliser Ltd, Yara International etc.; (ii) technology solution providers (e.g Davis & Shirtliff, Balton Irrigation Systems, A2Z Company, Tata Africa Holdings (TZ) Ltd; Holland Greetech etc); (iii) Government extension services, Ministry of Agriculture, in particular, the Building a Better Tomorrow - Youth Initiative for Agribusiness (BBT – YIA); and (iv) Village Organizations and Self-Help Group (SHGs) operating in the KTA Zone of Influence. This business model has been successfully used in India. The Syngenta Foundation India (SFI) has been following this approach since 2009, and the main reason for its success has been its focus on developing and anchoring local rural youth as Field Extension Workers or Agri- entrepreneurs who provide all agricultural services to small farmers. A major reason behind the success of this programme is the range of partnerships the [97]
SFI/AEGF developed with several organisations to support, strengthen and expand this model. To create transformational impact at scale, it created an Agri Entrepreneur Growth Foundation (AEGF) in collaboration with Tata Trusts as an independent, not- for-profit organization (Box 1). 3.10. INTERVENTIONS TO ADDRESS THE EFFECTS OF CLIMATE CHANGE AND ENVIRONMENTAL SUSTAINABILITY
3.10.1. Promote improved access to efficient irrigation technologies
PSSA should consider promoting youth access to solar- powered irrigation pumps. Improving access to mechanized irrigation technologies bears the potential to increase youth farmer profits by enabling increased and more stable production levels as well as potential cost- savings on labour. Considering the current high prices, PSSA interventions might, for instance, support drip- irrigation technology providers to attach ‘pay as you go’ financing solutions to their products, as is the case for various small “Pico solar” photovoltaic systems in Tanzania. There are environmental benefits attached to renewable irrigation systems as clean methods for promoting agricultural productivity. The systems promote the growth of low-carbon irrigated agriculture and decrease the carbon footprint of the sector. Efficient and modernized solar-powered irrigation systems will decrease the pressure and exhaustion of agriculture on limited water resources. Youth farmers who are dependent on rainwater harvesting and limited farming methods will benefit from increased agricultural productivity. Furthermore, investments in irrigated horticulture supply chains in Tanzania have the potential to positively contribute to raising household incomes and improving food and nutrition. Solar Water Pumps
(SWPs) can increase the productivity of the agriculture sector hence reducing food imports, which take the largest share (80 percent) of total merchandise imports.
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Solar Water Pumps (SWPs) are reliable irrigation systems in remote areas, particularly when grid power is erratic or not available or during periods of fuel scarcity or price volatility. Low rural household electrification rates in Tanzania (16.9%) also present a strong value proposition for SWPs.Tanzania is naturally suited for using solar power to generate high amounts of electricity, which could be tapped and used for irrigation purposes. PSSA could also work with the government to develop targeted incentives to encourage climate-smart agriculture. In particular, solar irrigation systems should be encouraged.
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Youth Enterprise Policy Analysis Report
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