Zittnet - harnessing information to make rural markets work better
Summary and Needs Assessment
Rural market places in southern Kaduna, Nigeria generate only marginal returns for all market actors which constrains the effectiveness of local markets, the principal theatre for business and trade, to stimulate wider economic development and fight poverty. The lack of access to information about demand and supply makes it difficult for both suppliers and traders to plan, drive out waste from the value chain, improve their activities and thereby increase margins.
By making information available on-site and in real-time in remote markets, Zittnet aims to make rural markets work more efficiently, driving greater economic value from agricultural activities benefitting the economic and social livelihoods of the poor farming communities which dominate the local economy.
Zittnet aims to establish Agricultural Network Centres (ANC) in local villages connected to ANCs in local and regional markets. An ANC manager will monitor activity on an electronic farm register so that both farmers and traders can find real-time prices and levels of supply and demand and complete transactions before incurring travel and related expenses. The financial risk associated with bulk supply and purchase will be reduced as information provides greater certainty, allowing businesses to exploit economies of scale more effectively. The ANCs will also publish market information regularly to assist rural businesses to plan more effectively.
Communication will be through internet or mobile telephony as appropriate and each ANC will have its own (solar) power supply and network connection to prevent the service being disrupted by infrastructure failings (power and mobile networks). Information will be posted at the ANCs so that clients will not need their own ICT hardware to access information, although it is intended that this will be available as demanded by the community.
By charging affordable prices for market information it is also intended that the ANCs themselves will become profitable and viable businesses and use the existing capital investment in power supply and network link to expand ICT services throughout their communities including ICT training and internet access.
Required Resources and Business Case
Income for the ANCs is earned by charging a 10% commission on products sold through the farm register (5% to buyers and 5% to sellers). The centre will advertise prevailing market prices to remote sellers who will then confirm what they will bring to market at the price, which will be entered on the register. Payment will be made at point of delivery/collection ofgoods. Economies of scale will prevail to drive up profitability as traded volumes increase.
We estimate that following an initial capital injection of N700,000 (approximately $4,579), the first two ANCs will break-even in nine months, returning 7% net profit year one subject to a conservative 45% growth in traded volumes from month two. Monthly operating profit in month 12 will be 20%.
Plan and Execution
Zittnet will use it relationship with Fantsuam Foundation to raise awareness of the project and market the service. Zittnet is part of Fantsuam Foundation which works with local communities to fight poverty and disadvantage through integrated development programmes. By adopting an integrated rural development model, Fantsuam is capable of achieving a deep level of influence in its local communities by interlinking its service provision. This depth of engagement, coupled with the breadth of its microfinance activities, which currently provides micro-loan and savings facilities to over 1,000 almost exclusively agricultural clients, give Fantsuam a unique and wide base from which to launch its Agricultural Network Centres.
The proposal is to launch the service in a particular community 20km from Kafanchan, Ungwa Rimi, where Fantsuam has over 100 active microfinance clients, a Positive Concern Support Group for people living with HIV/AIDS and support from the local community for an agricultural facility on its 'permanent site'.
Investment in marketing will be focused on training community members in how to use the centres complemented by local marketing activities (handbills, posters etc.) in Kafanchan and Ungwa Rimi. All Fantsuam employees (approximately 50 staff and volunteers) will be encouraged to promote the service.
As well as having a ready-made market place in the communities and clients that Fantsuam Foundation currently works with, Zittnet has also received support from the Nigerian Communications Commission to establish a Community Communications Centre in Ungwa Rimi where the first ANC is planned. The complementary network centre will be in Kafanchan market, the region's main market, within range of Fantsuam's existing communications mast. Fantsuam's reputation and relationship with the local community is very good and political problems with implementation are not anticipated.
Zittnet is already well established as a local internet service provider in Kafanchan with 63% of the computer-literate local population familiar with its services. Approximately 90 people outside of Fantsuam Foundation use its internet services daily. Over 3,300 students have passed through Fantsuam's ICT training facility.
Fantsuam conservatively estimates that over 100,000 local individuals have been positively impacted by elements of its integrated service provision, outlined above since the Foundation was established in 1996. The microfinance department has seen the majority of its 12,500 clients to date progress through the loan cycle as their businesses improve, and daily we hear of students of our ICT facility who have secured jobs.
Real World Impact
Information is a critical success factor in the efficient operations of markets. This project aims to fast-track relevant information delivery through appropriate ICT to fast-track market development in rural areas. As has already been shown by the phenomenal success of platforms such as eBay and Amazon, the internet is a powerful and effective tool for linking markets and customers.
The project will improve the ability of rural entrepreneurs to build better and more sustainable businesses. By increasing information, risk will be lower and business opportunities increased, thereby injecting real value into the supply chain and releasing potential for farmers, wholesalers and network centre operators to increase the profitability of their businesses and the size of their operations.
More effective markets will release greater levels of profitability for all economic actors in the value chain and therefore generate wealth across the economy with improvements in education, health and business. Greater wealth and access to information will also drive adoption of improved agricultural practices across the area.
The area is rich with agricultural resources however the reliance on traditional farming methods, local markets only to support what is predominantly a subsistence economy, is stifling economic progress. The objective of the ANCs is to help release greater returns into the value chain and unleash the agricultural and commercial potential of Nigeria's Middle Belt within five years.
Abena Asare said 7 months ago
Hi Cicely,
I think this is a great idea with a well-presented business plan. Share this great idea with your network and encourage them to endorse you!
Laurie Ellis said 7 months ago
Great project. This has the potential to have an amazing impact on so many people's lives.
marcus@ecoshelter.org said 7 months ago
This is an excellent proposal! I am familiar with Fantsuam Foundation's strong track record and values, and feel sure this would make a significant impact for good in Nigeria.
Pamela McLean said 7 months ago
I also know Fantsuam's track record and want to emphasise the fact that this project is sure to interconnect with other Fantsuam Foundation projects. This means it already has all the people-to-people networks on the ground that are needed to make things really happen in ICT enabled projects. This is very different from the "top down" projects which try to bring technology to some hypothetical group of farmers. This project is rooted in the local area, it is designed to serve communities who are well known to the organisers, who are spread over a wide rural area, and who would genuinely be empowered by this project.
Karam Adamu said 7 months ago
Fantsuam Foundation has the First Rural ISP in Nigeria, that's no small feat and alot of sustainable businesses can be built on it, this idea inclusive.
Go Fantsuam Foundation, go ZittNet, go Cicely....
yinka talabi said 7 months ago
Great idea! I endorse it.
edijrry said 6 months ago
Great project, with incredible potential to create jobs and to structure and strengthen the rather loose/fragmented trade system/sructures in rural Africa. Its success will mean a huge leap towards securing sustainable livelihoods for rural dwellers. Project should be embraced by all. I give double endorsement!
gdodge said 6 months ago
This is a great concept that has been developed into a carefully considered plan. Having worked with Fantsuam in the past, I can vouch for their commitment to their community and their capability to deliver results, so I'm happy to endorse this plan.
said 6 months ago
Projects like these are so important. The imbalance of who has and who needs in the modern world is shocking, so I intend to make contacts and raise awareness on this subject, centred around what I already know about this fantastic project. March on.
MrJohn said 6 months ago
I have family and friends involved in this project and fully endorse their work and commitment.
donaldt said 6 months ago
John circulated the link to all of his contacts and without question we will all support this
conceptcrtn said 6 months ago
this is great.
kelechimicheals said 6 months ago
great project. Let us all join hands and ensure its success.
azeezlabi said 6 months ago
Great project fully endorsed by me.
saidu1229 said 6 months ago
Good projectand fully endorse saidu
saidu1229 said 6 months ago
Good projectand fully endorse saidu
saidu1229 said 6 months ago
Good project and i fully endorsed it
i am saidu
T-J said 6 months ago
People are looking for your type in the community ever since and here you are. just go ahead with your project please. long life Fantsuam foundation, long life ZittNett and long life Cicely Gooooooo
Romeo said 6 months ago
Such a great project with incredible potential to create a job and have an amazing impact on so many poeple lives.
Atom130 said 6 months ago
In a logical sequence, i want to say categorically that i'm strongly in suport of the project by sharing my enthusiasm for the idea that: this will bring a greater developmental process thereby enhancing the level of productivity in terms of market situation or agriculture within the local communities and Nigeria as a whole. It will also stimulate economic development & fight against poverty.I give triple endorsement, keep on marching it. Zittnet for life, Fantsuam foundation for real,By Atom.
1chance said 6 months ago
great idea, lots of upside here. i wish you much luck.
Richie said 6 months ago
great idea for zittnet,endues by me.
patisiukwu said 6 months ago
Friends at Zittnet, this great. I wish you success with your project, I'm looking forward to seeing many ANC's at most rural communities. I'm glad we have people who have a vision for a better Nigeria.
Gabtechnics said 6 months ago
A welcome idea fully endorsed by me carry go!!!!!
Young said 6 months ago
Zittnet have sincerely used their networking programmes to enhance peoples lives through Fantsuam Foundation.Right now in the rural communities in the southern Kaduna Nigeria,each man,childern, and women expecially could have loans,and some business plans and start up strategics for a comfortable life in the rural areas.Thanks to God for having organisation such as fantsuam foundations who have took on them selves to encourage agricultural productivities in the rural areas.I hereby wish to say that fantsuam foundation via zittnet have great featurastic plans for:southern Kaduna,Nigeria and the world at large.
nehemiahtauna said 6 months ago
We highly congratulate zittnet for its onselfless effort, to enpowering the rural area infomation market.The future of the southern kaduna information market is enhance by zittnet.
Richeee said 6 months ago
The is prettygood and great idea
Richeee said 6 months ago
mean that is pretty good and a great idea
garnetconsulting said 6 months ago
Hello guys at Zittnet, We congratulate you on this initiative. We at Garnet Consulting gladly endorse your initiative. Keep it coming.
scandy4real said 6 months ago
I fully endorse nice idea great!
adamich said 6 months ago
This is great idea. Dear Zittnet team I'm wondering how easy this would be to replicate accross Nigeria. Also as I am aware this will help Businesses in the south, east where I live. At Umuahia for instance I do know a lot of traders would want to know how to get certain crops and at what prices.
How readily will people adopt these new services? Considering cost of operation, don't you think the rural farmers will have overhead costs on mobile phone recharge.
balingo said 6 months ago
Because culture, which includes our norms and values, resides in our communities, a peace culture should therefore, be an integral part of the culture of our communities, if we are to make it a way of life. Our communities need to endure that people adhere to the universal values of honesty, patience, compassions, tolerance and transparency.
cicelybrown said 6 months ago
Dear Ada
Thank you for your support!
There’s no doubt that mobilising rural communities to adopt ICT to solve their daily needs and problems will be a challenge. Zittnet’s advantage comes from the foundations in local ICT that have been built by Fantsuam, by delivering ICT training to almost 3,500 individuals in rural communities since its Computer Learning Centre was established in 2002. Zittnet estimates that, since it was established in March 2008, around 100 individuals access the internet daily through its ISP service clients. The support from local individuals that have registered to endorse our idea has given us even more confidence.
Is there similar service provision in the area around Umuahia that you would be able to build upon?
We aim to minimise the cost of operations for the farmers and traders by ‘broadcasting’ the market information using traditional channels including SMS/local radio. This will prompt suppliers and customers to attend the ANCs to place their orders. There will be a cost of transport involved, however that cost will be incurred anyway. ANCs aim to ensure that the costs are incurred for maximum benefit i.e. that the prices are favourable for those journeys to be made, and that there is greater economic benefit for all involved.
nanbal said 6 months ago
i see this as a brilliant idea that can be replicated in any part of rural africa.
My only question is how sustainable is this?
debull said 6 months ago
a wonderful idea to to lift the rural people above poverty let keep it up and sustain it
cicelybrown said 6 months ago
Thanks for the question Nanbal.
ZittNet has a long term strategy to improve rural ICT and connectivity in Kaduna State, and the ANC is one part of a wider plan to establish businesses and livelihoods both based upon (e.g. cyber cafes etc.) and enhanced by (e.g. market trading) increased use of ICT.
Initially the ANCs will generate income through commission on transactions conducted on behalf of buyers and sellers. In the longer term it is envisaged that the centres will become Community Communications Centres offering a wider range of services including browsing, online registration etc., VOIP calling provision etc.
Significantly increasing rural connectivity and use of ICTs is key to achieving this objective. With its integrated and multi-pronged strategy, ZittNet and Fantsuam are well on the way to making this change.
patty said 6 months ago
Dear Zittnet people,
am particularly interested in this project. I run two farms and I really want to know how I can benefit from this project.
To be specific, do we need to register for this service?
cicelybrown said 6 months ago
Hi Patty,
At the moment the idea is at concept stage - the great thing is that with this funding we will be able to develop it further. Please bear in mind that the ANCs will initially be established in our local area (Kafanchan and environs in the south of Kaduna State, Nigeria). Are you based in this area?
Cicely
cicelybrown said 6 months ago
Hi Patty,
At the moment the idea is at concept stage - the great thing is that with this funding we will be able to develop it further. Please bear in mind that the ANCs will initially be established in our local area (Kafanchan and environs in the south of Kaduna State, Nigeria). Are you based in this area?
Cicely