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Photo: Steve McCurrach/IW

MI

AWM Solutions: Unlocking the potential for

smallholder agriculture in sub-Saharan Africa and

South AsiaMeredith Giordano

Principal Researcher International Water Management Institute

Washington, DC

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Presentation Summary

1. Background

2. Key Messages

3. Investment Opportunities

4. Concluding Remarks

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Presentation Summary

1. Background

2. Key Messages

3. Investment Opportunities

4. Concluding Remarks

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Identifying AWM Solutions:Water within the larger context of rural livelihoods

• Contributes to smallholder livelihoods

• Benefits women and men• Cost-effective• Suitable for out-scaling• Addresses resource sustainability

AWM solution: technology, practice, institution, policy that…

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Presentation Summary

1. Background

2. Key Messages

3. Investment Opportunities

4. Concluding Remarks

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India > 50% of the irrigated area watered by smallholder pumps.

Africa - Smallholder AWM reaches more farmers than public irrigation.

1. Smallholder AWM: A vibrant and growing sector

Agricultural Water Management in Ghana

No. of farmers Irrigated area (ha.)0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Public irrigation schemes Small reservoirs Motorized pumpsBuckets, watering cans Treadle pumps

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2. Provides incomes when farmers need it most

Madhya Pradesh - rainwater harvesting - dry season cropping and livestock - incomes up >70%.Burkina Faso: small reservoirs - vegetable and rice production – dry season incomes up by US$200-600.

Tanzania: community managed river diversions (CMRD) increase yields and incomes.

Mkindo Hembeti Dakawa0

100

200

300

400

500

600

700

800

Irrigated Non irrigated

Inco

me(

US$

/ha.

/sea

son)

Estimated income in CMRDs in Mvomero, Tanzania

Improved Traditional Scheme

Unimproved traditionalscheme

Formal Scheme

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3. Leverages an existing farmer-driven trend

• Farmers increasingly initiate and finance.

• Technologies exist and adoption rates are increasing.

• Investment costs typically low and profit margins high.

Madhya Pradesh, India: Farmer investment in individual rainwater harvesting

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4. Potential to impact millions

SSA: motor pumps • 185 million potential rural beneficiaries• Net revenues up to US$22 billion/yr.

Tanzania: motor pumps could benefit 2-4 million people (8-12% of rural households).

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BUT…

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5. Risks from unchecked spread of the sector

Challenges – equity, efficiency and sustainability

Access: women and resource poor farmers face challenges accessing affordable AWM.

Market Inefficiencies: negatively affect farmer decision-making and technology access.

Sustainability: uncontrolled spread of small-scale AWM can lead to environmental damage.

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6. Lacks supportive institutional structures

Smallholder AWM lacks an institutional ‘home’.

Nariarlé Basin, Burkina Faso: Local informal actors fragmented, preventing collective bargaining.

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7. Targeted investments can help address AWM constraints and enhance the agricultural sector's potential

Improved livelihoods of smallholder farmers

Increase access to water

Rainwater harvesting• Create suitability maps• Show farmers the benefits• Garner local support• Offer smart subsidies• Provide technical support

Shallow groundwater• Map groundwater resources• Develop affordable drilling• Raise awareness and create

demand• Monitor environmental risks

Small reservoirs• Reduce investment costs• Pilot new management

approaches• Acknowledge multiple uses

Catalyze smallholder value chains

Innovative financing mechanisms• Pilot financial instruments• Support rental markets• Explore irrigation service

providers’ model• Link specialist financing to

existing programmes• Encourage women to own

equipment

Helping farmers buy equipment and become profitable• Provide better information• Educate about marketing• Provide crop storage

facilities• Promote ‘try-before-you-buy

scheme’• Use networks to disseminate

information

Create policy synergies between sectors

Addressing the influence of external sector policies• Align energy, import and

water policies• Develop alternative energy

sources• Privatize procurement and

marketing of irrigation equipment

• Review tax policies and import duties

Take a watershed perspective

Managing social and environmental impacts• Consider multiple AWM

investments• Develop systems to promote

cooperation• Improve evaluation of

investments• View impacts in broad

context

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Presentation Summary

1. Background

2. Key Messages

3. Investment Opportunities

4. Concluding Remarks

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Invest in water storage: increase dry season production

High demand, increases resilience and opens opportunities.

Individual rainwater harvesting• Wet and dry season farming• Cropping intensity increased

(122% to 198%).• Increased incomes (>70%)• Multiple use options. • Reduced groundwater/ electricity

use.

• Payback period: 3 years• Financial B/C ratio: 1.5-1.9

Changes in crop production in the dry seasonMadhya Pradesh, India

Wheat Gram0

2000

4000

6000

8000

10000

12000

Prod_before Prod_after

Qui

ntal

s

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Invest in value chain improvements: increase access

Costs and financing constrain farmers; Extension services limited

The Irrigation Service Provider Model – Pump Rental Plus

• Local entrepreneur owns 1+ pumps.

• Paid per hour for irrigation.

Benefits: • Incomes for entrepreneurs.

• Income from dry season crops for farmers.

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Invest to create policy synergies

AWM solutions can often be found through linkages with other sectors

Smart Solar Power Promotion Program

• Solar power as cash crop with a guaranteed market at attractive price.

• Reduce financial cost of subsidies

• Incentives to sell back solar power rather than pump groundwater

• Reduce the carbon footprint

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Invest in a watershed perspective

Examining the range of impacts and the institutional capacity to manage trade-offs could help improve the benefits from future AWM investments.

Mkindo Watershed, Tanzania: Participatory impact assessment of AWM solutions

Social Impacts Environmental Impacts

Technology Equity Gender Poverty Reduction

Water Quality

Water Quantity

Natural Resources

Gravity based furrow system for paddy rice production

+/- - + - - -

Diesel pumps – irrigating from rivers +/- + + - - -

Livestock watering ponds + + + NA + +Livestock watering canal - + + NA NA -Large scale irrigation for cash crop production - NA Unclear - - -

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Presentation Summary

1. Background

2. Key Messages

3. Investment Opportunities

4. Concluding Remarks

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• Supporting smallholder AWM makes economic sense and leverages farmers’ initiatives and own investments.

• The scale of current trend is astonishing but the potential is even greater.

• Range of opportunities exist (technical, policy and institutional) that can: o leverage the investments already made to unlock this

potential;o safeguard the sector’s proven benefits on food

security and poverty alleviation; o extend the benefits to broader groups of

smallholders; ando address potential adverse effects.

Significant opportunity, great potential

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Thank you

For more information, please visit: http://awm-solutions.iwmi.org/