Using a novel enterprise survey from Kenya (FinAccess Business), we document a strong positive association between the use of mobile money as a method to pay su

We use experimental data to investigate whether a decentralised approach to promoting innovation in central African agriculture outperforms conventional extension approaches. Our main result is that this decentralised approach, based on so-called innovation platforms, is effective in reducing poverty – more effective than conventional extension approaches. However, we also document considerable heterogeneity in terms of platform performance.

This study investigates the diversity in impact of innovation platforms (IPs) on agricultural networks and technology adoption among 1200 households in nine sub-Saharan Africa countries. We explore the extent to which the 32 IPs implemented adopted the Integrated Agricultural Research for Development Approach (IAR4D). We find that IPs implemented according to the IAR4Dness principles are better at promoting networks of households with other farmers within villages. We find that IPs with more active members were more successful in promoting agricultural technologies, while IPs with many different stakeholders were less successful in promoting agricultural technologies.

Purpose: Institutional structures of rural savings and loan associations influence their performances. One of the guiding principles for defining clear group membership boundaries is by setting rules on who has access. Social ties is a prominent requirement for membership. The objective of the current study is to provide quantitative evidence on the role of social ties membership criteria for the performance of saving and loan associations.Design/methodology/approach: A cross-sectional survey was conducted in July–August 2019 comprising 48 associations in 13 villages in the Iringa District of Tanzania. In the current study, the authors use two indicators to measure the social ties between members, namely social closed association (the association applies criteria to accept only members who are relatives, friends or from the same hamlet) and physical distance (the fraction of members from other villages).Findings: The authors find that associations are diverse both in terms of social ties, physical distance and performance, even in a small homogeneous region like Iringa District. Providing loans more easily to members with social ties has a negative relationship with loan repayment rates. Associations applying the social closeness criteria experience higher default rates than those not applying. The default rates become even worse when the fraction of member members from other villages increases in the socially tied associations.Practical implications: Physically distant members are more likely to default as they perceive less social pressure in an association with socially tied members. Development practitioners and policy makers should integrate the potential implications.Originality/value: The authors provide empirical evidence on the relevance of social ties on credit access and repayment in savings and loan associations, using a novel multi-level data on financial performance in the context of community-based finance organizations in rural areas.

We assess the impact of community-based approaches to promote adoption of integrated climate smart agriculture (CSA) practices based on soybean cultivation combined with mulching, intercropping, crop rotation, manure application and rhizobium inoculation methods. We use quasi-experimental data of farmers participating in Farmer Field Business Schools (FFBS) and Village Savings and Loan Associations (VSLAs) in Iringa region of Tanzania. Farmers received technical training and financial support for the initial adoption of soybean production, and women's empowerment supported household's continuous involvement in CSA practices. We find a positive effect for farmers participating in the trainings provided by the FFBSs and receiving microfinance services from VLSA members on the adoption rates of several CSA practices, and this effect became more pronounced for households with higher scores on women empowerment. Farm-level improvement in soybean production and market-level incentives for soybean sales should also strengthen household income, consumption and nutrition levels to maintain CSA practices. Community-based platforms create critical external conditions for introducing CSA practices, but women's empowerment is indispensable for intrinsic incentives for anchoring their adoption.