EaseOnTrack Solution

The Drought Crisis in Zambia: Implications for Agriculture and Food Security

Agriculture, which sustains over 55% of Africa's labor force, has seen a 34% decline in productivity growth due to climate change. The United Nations Economic Commission for Africa's African Climate Policy Centre projects loss and damage costs in Africa due to climate change ranging between US$ 290 billion and US$ 440 billion (The Brookings Institution and United Nations).

Zambia, like many other African nations, grapples with the impacts of climate change—reduced rainfall, heightened temperatures, depleted water sources, diminished grazing land, and increased livestock diseases. According to the 2021 United Nations Common Country Analysis Report, Zambia anticipates a loss between $2.20 and $3.13 billion in agriculture over the next 10-20 years due to climate change.

Zambia is currently facing its historical worst drought, and a national emergency over drought has been declared. Over a million hectares of staple crops which is half the country’s crops under cultivation have been destroyed (UN RC Zambia/UNICEF and Times of Zambia). The drought has also affected the country’s electricity supply as Zambia depends heavily on hydroelectric power, leading to more frequent power outages. Excluding the preceding droughts, USD 900 million is needed to tackle just this year's drought (Bloomberg).

With reduced rainfall and crop failures, many households are struggling to produce or access adequate food, leading to widespread food shortages and increased vulnerability to malnutrition among the population, particularly in rural areas where agriculture is the primary livelihood source (Al Jazeera and Oxfam). This has increased food prices across all Zambian provinces and decreased the availability of affordable food items, worsening food insecurity for millions of people across the country (FEWS NET) including the region as Zambia normally exports food such as corn and soya beans.

Unfortunately, smallholder farmers are impacted the most, yet smallholder farmers cultivate 60% of staple crops nationwide. The following are the underlying causes:

• Firstly, most smallholder farmers do not use irrigation, and over 90% of them rely on rain-fed agriculture (Ngoma et al). Due to high poverty levels, the majority do not have adequate financial resources to afford irrigation water supply. Moreover, only four percent of the rural population is connected to the national electricity grid, and the alternatives, solar energy solutions, are expensive and sold on a cash basis.
• Secondly, there is a lack of knowledge about weather forecasts and climate adaptation measures among small-medium farmers, especially in rural areas. This makes it difficult for farmers to make data-driven decisions. Without access to accurate forecasts, farmers struggle to anticipate and mitigate the effects of weather-related risks such as droughts and extreme temperatures.
• Thirdly, most of the smallholder farmers do not have a traceable financial history or credit history and do not qualify to access climate finance facilities for purchasing climate-friendly agricultural equipment.

We develop and provide smart clean energy solutions on pay-as-you-go and credit to smallholder farmers with a specific focus on water-efficient irrigation. Our solution includes solar drip irrigation and water pumps. Farmers acquire smart clean energy solutions on pay-as-you-go/credit and make micro-repayments using mobile money or the local agent network. This provides accessibility to clean energy solutions for people who lack financial resources or access to loans for upfront solar energy purchases. With continuous monthly payments, customers will fully own the equipment in 12 to 20 months.

The smart clean energy solutions are connected to a digital platform, EaseOnTrack. Farmers can access performance data of the equipment and perform scheduling and automation tasks such as automated irrigation and switching it on/off. Additionally, farmers access advice and weather forecasts provided by the Zambia Meteorological Department on the platform to assist them in making data-driven decisions. EaseOnTrack is also used by farmers to keep proper financial and farm operation records transactions while directly receiving and making payments using mobile money since it is connected to mobile money.

After successful payments, farmers' payment performance is used as alternative data to build a personal credit score, enabling them to access additional climate finance from impact-oriented lending institutions. The good payment performance is also rewarded with loyalty coupon points we call 'carbon points'. The carbon points can be redeemed to get a discount on the next payment or donated to another farmer

Part of the solution delivery is the organization of farmers' community outreach programs for training and teaching communities about climate resilience, basic financial literacy, nutrition, and agriculture risks. This is to improve their knowledge of financial management, climate change, and its impact on agriculture. Improved knowledge plays a role in making decisions as they practice agriculture and become climate resilient. The community outreach programs are organized and delivered by local extension officers. The extension officers also help farmers understand climate financing opportunities and act as facilitators and communications for farmers. 

Below are the YouTube links to the product demo and impacted farms using our IoT clean energy solutions for irrigation

• Product Demonstration
• Impacted Farm

We are serving small and medium scale farmers in Zambia, particularly those who lack financial resources or access to loans for upfront solar energy solutions purchases. These farmers often face challenges related to drought, high temperatures, and expensive electricity tariffs, which significantly impact their agricultural productivity and livelihoods. By providing access to smart clean energy solutions such as smart solar drip irrigation and smart water pumps through a pay-as-you-go and credit-based model, we are empowering these farmers to become more climate-adaptive and increase their food production.

The impact of our solution on farmers' lives is multifaceted. Firstly, it provides them with affordable access to smart clean energy solutions, which improve their agricultural productivity and crop yields. Smart solar drip irrigation, for example, helps farmers to efficiently water their crops, even in areas with limited access to water. This leads to increased crop yields and improved food security for farmers and their families.

Secondly, our solution enables farmers to build a credit history based on their payment performance. The alternative credit score helps them access additional climate finance from impact-oriented lending institutions, allowing them to further invest in their farms and livelihoods. Additionally, by providing farmers with access to weather forecasts through a digital platform, our solution empowers them to make more informed decisions about their farming practices, leading to more sustainable and resilient agricultural systems

Our solution is improving the lives of smallholder farmers in Zambia by increasing their agricultural productivity, improving their access to finance, and empowering them to adapt to climate change

Our team is diverse, with our offices located in peri-urban areas, placing us in close proximity to the target population. Our Team Lead and Founder grew up in rural Zambia and have firsthand experience with the challenges faced by small-medium holder farmers. The knowledge of the local context, coupled with an understanding of the cultural and socioeconomic factors at play, allows us to design and deliver value tailored to the needs and realities of the target population.

Our team also includes two agricultural experts who have hands-on experience working with farmers across different scales, from small-scale to large-scale operations.

Furthermore, our extension officers are fluent in the local language, making it easier to facilitate effective communication and feedback collection during regular outreach programs. This allows us to continuously receive feedback and gain insights into the specific needs and challenges of our target market.

Additionally, the involvement of the village council and headwoman in our community programs is crucial for receiving feedback from the community. With the endorsement from the village leadership, the locals easily accept us, which means we have established trust with the communities we serve.

We have successfully developed smart clean energy solutions and they are already on the market. We are currently working with more than 5000 farmers and working in three provinces of Zambia. In collaboration with impact-oriented lending institutions we have unlocked climate financing worth US $1 million and so far more than US $100,000 has been accessed by smallholder farmers

We are seeking support from MIT Solve to access technical expertise, media exposure, and business development assistance, that can help us scale our solution and make a greater impact. 

We hope to leverage international partnerships to expand our service to other markets. Often this comes with huge legal and advisory expenses. We hope through MIT Solve we will access the legal support that comes with being a Solver.

Finally, we face financial limitations that hinder our ability to scale, and we believe that access to additional funding opportunities through MIT Solve can help us achieve our goals.

Our solution introduces a different approach to delivering clean energy solutions to farmers. Traditionally, farmers are required to make upfront payments for solar energy solutions, which is prohibitive for marginalized communities and those with limited financial resources and lack of credit history. Our pay-as-you-go and credit-based model enables farmers to acquire the solutions on credit. This way makes clean energy solutions more accessible and affordable for smallholder farmers, opening up new opportunities for them to improve their agricultural practices and increase their productivity.

Additionally, our solution uses IoT technology and a digital platform to enhance the functionality and value of the business model. By connecting the clean energy solutions to the digital platform, farmers access real-time performance data of the equipment, receive weather forecasts, and access advice from agricultural experts. This additional functionality goes beyond traditional sales models and adds a new layer of value for farmers, helping them make more informed decisions about their farming practices. This paves the way for enhanced agricultural yields and mitigates the risks of poor harvests.

Our platform also has a USSD (Unstructured Supplementary Service Data)version to enable farmers without good internet connectivity or smartphones to use our products.

Integrating extension officers as part of our services is also an innovative approach that addresses the digital divide and provides localized assistance. These officers serve as knowledgeable resources, offering personalized support, collecting feedback, and building trust with farmers. 

Moreover, our solution uses farmers' payment performance as alternative data to build an alternative credit score. This innovative use of alternative data enables farmers to access climate finance and additional funding for agricultural investments, further enhancing their resilience and sustainability.

Our impact-driven theory of change is designed to promote food productivity and climate adaptation among small and medium farmers by providing them with affordable IoT-powered clean energy solutions for irrigation on pay-as-you-go and credit basis. By educating them about climate change, and agricultural risks, we equip farmers with the knowledge and skills to make informed decisions about their agricultural practices and become more resilient to the impacts of climate change. Our approach has yielded positive results, with over 5000 trained farmers, each supporting at least 2 dependants, benefiting from improved access to affordable clean energy solutions, knowledge, and climate finance inclusion. Our ultimate goal is to reduce the negative impacts of climate change on farmers, increase their climate resilience, and enhance food security and agricultural productivity in the long run.

Our impact goals for our solution align with Sustainable Development Goals (SDGs) 7, 9, and 13, focusing on providing affordable and clean energy access, promoting innovation in energy infrastructure, and contributing to climate change mitigation and adaptation efforts. To measure our progress towards these goals, we track four key impact indicators:

Farmer Reach: We measure the number of farmers adopting our climate-smart products, embracing sustainable practices, and engaging with our platforms. This indicator helps us understand the extent to which our solution is reaching and benefiting smallholder farmers.

Income Per Farmer: We evaluate the increase in income and agricultural productivity among our farmers. This indicator helps us assess the economic impact of our solution on farmers' livelihoods and well-being.

Gender Inclusivity: We monitor the number of women beneficiaries and track the growth in the number of assets registered in their names. This indicator helps us ensure that our solution is inclusive and equitable, benefiting both men and women farmers.

Climate Finance Commitment: We closely monitor the climate finance we mobilize for our beneficiaries. This involves tracking funding commitments through partnerships, grants, and other financing mechanisms. We maintain detailed records of the financial support provided to farmers and its impact on enhancing their climate resilience.

The core technology that powers our solution is the Internet of Things (IoT). IoT refers to the network of interconnected devices embedded with sensors, software, and other technologies that enable them to collect and exchange data. In our case, we use IoT technology to connect our clean energy solutions, such as solar drip irrigation systems and water pumps, to a digital web app.

Through this IoT network, the clean energy solutions collect data on their performance, such as water usage, and system efficiency. This data is then transmitted to the digital platform, where it can be accessed by farmers through a user-friendly interface or USSD. Farmers can use this data to monitor the performance of their equipment, identify any issues or inefficiencies, and make informed decisions about their farming practices.
The app and USSD technology are also used to facilitate mobile money repayments.

Complementing our core technologies is SMS technology, which plays a vital role in communication. We utilize SMS capabilities to send important information, updates, and notifications to users. This ensures that users stay informed, empowered, and connected.

We have 9 full time staff

We have been working on our solutions since March, 2022

We embrace the principles of diversity, equity, and inclusivity as core values that shape our culture and policies. We believe that everyone deserves equal access to resources and opportunities, regardless of factors such as race, sexual orientation, gender, or background.

Diversity, equity, and inclusivity are part of our company policies and we consider any violation of these principles as a dismissible offense.

In our recruitment process, diversity is actively and intentionally considered a crucial factor. A diverse team brings together unique perspectives, experiences, and talents, fostering innovation and ensuring that our solutions cater to the needs of a broad range of individuals and communities. 

 Furthermore, our approach to diversity, equity, and inclusivity extends beyond recruitment. We foster an inclusive work environment where individuals are valued and respected, and their voices are heard. We actively promote open dialogue, collaboration, and a culture of respect and empathy. Through providing equal opportunities for growth, professional development, and advancement, we create a level playing field where everyone can thrive and contribute their best.

We understand that true diversity and inclusion require ongoing efforts and continuous learning. We encourage ongoing education and awareness of diversity, equity, and inclusivity among our team members. 

Our business model aims to provide both social impact and financial sustainability, ensuring that we can continue to serve our customers and achieve our mission in the long term.

Our customers, primarily smallholder farmers in Zambia, benefit from our products and services by gaining access to affordable and clean energy solutions that improve their agricultural productivity and climate resilience. They want or need these solutions to overcome the challenges posed by climate change, such as drought and high temperatures, and to improve their livelihoods and food security.

Our revenue model is based on the sale of our clean energy solutions and the provision of related services, such as maintenance and support. We also generate revenue through partnerships, grants, and other financing mechanisms that support our climate finance access initiatives.  

We are focused on optimizing our revenue generation by managing our operating costs efficiently to maintain a balanced financial structure that sustains our operations.

We generate revenue through the sale of our clean energy solutions and the provision of related services, such as maintenance and support. Additionally, we receive commissions from financiers when farmers secure financing through our financier's portal. With internally generated revenue, we have effectively sustained our operations.

One of our future revenue streams involves licensing the use of our IoT technology to other companies and gaining a per-transaction fee. This strategy aims to enable other ventures to replicate our successful model, ultimately expanding the number of farmers served in Zambia and other African countries.

Our plan to achieve financial sustainability has already yielded promising results, as evidenced by the following successful milestones:

Seed Fund and Prize Money: We secured additional seed funding from the United Nations Development Programme (UNDP) through the UNDP Accelerator Lab. This initial funding injection validated our concept and provided us with the necessary resources to kickstart our operations. Additionally, receiving prize money from the MTN Momo Financial Inclusion Hackathon further demonstrated the value and potential of our solution.

Partnership and Collaboration: We have secured three partnerships with two lending institutions to provide additional climate finance to our farmers. This has unlocked climate financing worth $1 million.