Unlocking Agricultural Financial Resources with Big Data: A Game-Changer for Small Farmers and Women in Agriculture |
The agricultural landscape is undergoing rapid changes, particularly as small farmers grapple with the challenges posed by climate change.
Among those most affected are women, who often find themselves at the lowest end of the agricultural value chain. They are frequently confined to low-paying, labor-intensive seasonal jobs, making them especially vulnerable to long-term debt cycles. In an effort to address these critical issues, the UNDP Accelerator Exploration team has turned to big data as a powerful tool to better understand agricultural financial resources and improve access to financing, especially for women in agriculture. |
Harnessing Big Data for Agricultural Insights |
In collaboration with Big Brother Analytics, the team employed advanced data analytics techniques to gather and analyze a wide range of data.
Software robots mimicked human behavior, crawling through text, audio, and video data related to agricultural finance from various digital channels such as Facebook, YouTube, and TV programs. This comprehensive data collection spanned from January to September over the years 2021 and 2022, resulting in a dataset comprising 12,823 conversations in 2021 and 11,632 in 2022. The data was segmented by factors such as farmer size, gender, age, location, and seasonality, with a special focus on incorporating different Egyptian dialects, as well as English and Franko (Arabic words written in English letters). |
Key Findings: Challenges and Opportunities in Agricultural Finance |
The analysis identified a variety of agricultural finance providers, including banks, initiatives, associations, and governmental entities. It also examined the range of services offered by each entity and how farmers engaged with them on digital platforms. One key area of focus was the analysis of different types of agricultural loans available during the study period.
The insights revealed significant challenges, such as the complexity and lack of clarity in loan terms, which often vary from one governorate to another and even from village to village. Many farmers felt unsupported, as bank employees often lacked knowledge of the services or offers available. This resulted in a loss of confidence among farmers, who found the terms and interest rates confusing and inconsistent. |
Engaging Farmers for Tailored Solutions |
The analysis also highlighted the importance of engaging farmers to understand their specific needs and suggestions. Many farmers expressed a desire for banks to expand their role beyond just providing loans. They suggested that the banks should also offer services related to seeds, pesticides, and agricultural product marketing, and talk more with farmers associations.
Specific feedback on livestock loans included a request for clear terms, such as whether the banks would provide the livestock or simply the funds for purchase. There were also calls for more information on dairy cattle specifications, genetic traits, and country of origin. Women farmers, in particular, faced unique challenges, including financial liability policies tied to their husbands. Their needs ranged from loans for sheep and livestock to support for mini-markets, sewing businesses, and other home-run projects. |
Moving Forward: Innovating Agricultural Financial Solutions |
The insights gained from big data analysis were further validated during the COP27 conference and through workshops with local stakeholders, including key ministries, civil society, and academia. The pivotal findings underscored the need for financial solutions tailored to the specific needs and aspirations of farmers, especially women.
To truly empower women in agriculture and support innovative ventures like agritourism and climate-smart crops, an innovative financing model is essential. This model should include less bureaucratic processes, needs-oriented rates, climate insurance schemes, and financial capacity-building programs. Moreover, banks, as the main finance providers for small farmers, must innovate their financial products to support smart agriculture, new technologies, and green practices. These new avenues are particularly important for women, who require financial products tailored to their unique circumstances and challenges. By leveraging big data, stakeholders can develop centric solutions that address the real needs of agricultural actors. This approach not only helps in understanding and overcoming existing challenges but also paves the way for future innovations and system transformations that are crucial for a sustainable agricultural sector. |
UNDB |
Author
Engy Abdel Wahab, Head of Exploration at UNDP Egypt Accelerator Lab Maryam Shalaby, Future Thinking Fellow and UNV at UNDP Egypt Accelerator Lab |
