Kenya  Markets  Trust  2013  

 

   

MARKET  SYSTEM  DEVELOPMENT    FACILITATED  INTERVENTION  OPTIONS  

THAT  BUY-­‐DOWN  RISK  OF  MARKET  ACTORS  TAKING  ON  NEW  BEHAVIOURS  (Illustrative  list)  

 ______________________________________________________________________  Note:  It  is  important  to  align  interventions  to  the  behaviour  change  that  you  want  to  see  in  business,  which  are  in  turn  aligned  to  the  higher-­‐level  systemic  change  goal.  

   

CAPACITY-­‐BUILDING:  

• WHAT:  Facilitate  and  cost  share  capacity  building  on:    -­‐ New  business  models  (including  new  distribution  and  promotional  models)  

o promotional  tactics  that  drive  sales  and  loyalty  (for  input  firms)  o possible  dealer/distribution  models  (for  agro-­‐equipment  dealers)  o delivering  extension  messages  cost  effectively  to  farmer/suppliers/customers  (for  

input  firms,  agro-­‐equipment  dealers,  aggregators)  o sales  tactics  (for  ICT,  radio)  o shifting  to  service  platform  for  sales  (for  input  firms)  o shifting  to  broker-­‐based  business  model  (for  aggregators)    o building  alliances  for  content  that  is  relevant  to  agribusiness  segment  (for  ICT,  radio)  

-­‐ Effective  business  management  o basic  business  (for  local  service  providers)  o running  a  service  business  (for  local  service  providers)  o farming  training  and  information  (for  farmers)  

-­‐ Applying  performance  based  incentives  o for  farmer/suppliers  (for  aggregators)  o for  staff  (for  ICT,  radio,  agro-­‐equipment  dealers,  input  firms)  o for  distributors/dealers  (for  input  firms,  agro-­‐equipment  dealers)  

• HOW:  Facilitate  capacity  building  through:  -­‐ Cost  sharing  capacity  building  with  market  actors  -­‐  who  would  ultimately  recognize  the  

commercial  rationale  for  taking  on  this  function  themselves  (as  they  would  benefit  by  the  improved  operations  of  the  other  market  actors)  

o E.g.  aggregators,  transport,  nucleus  farmers  capacity  built  by  buyers,  financial  service  institutions  and  firms  -­‐  who  see  these  as  clients  

-­‐ Organizing  internships  to  support  capacity  building  of  mid-­‐level  management  (for  buyers,  aggregators,  ICT,  radio,  agro-­‐equipment  dealers,  input  firms)  

-­‐ Providing  one-­‐on-­‐one  consultative  support  and  training  to  support  upper  and  mid-­‐level  management    

-­‐ Local  training  services  supported  by  international  experts  (e.g.  for  agricultural  financial  service  staff)    

Kenya  Markets  Trust  2013  

-­‐ Link  to  national  and  international  expertise  via  volunteers  or  consultants  (for  buyers,  aggregators,  ICT,  radio,  financial  service  institutions  and  firms,  agro-­‐equipment  dealers,  input  firms)  

-­‐ Discounts  on  accessing  information  and  inputs  (for  local  service  providers)  -­‐ Cost  share  development  of  service  certification  to  secure  return  on  training  investments  (for  

input  firms)  

RESEARCH:  

• Cost  share  market  research  including  client  segmentation  and  prioritization  (for  financial  service  institutions  and  firms)  

• Production  zone  prioritization  and  research  (for  buyers)  

UPGRADING:  

• Facilitate  and  cost  share  access  to  communications  technology  for  financial  and  internal  management  upgrading,  including  information  flow,  supplier  payment,  and  inventory  management  (for  buyers,  aggregators,  agro-­‐equipment  dealers)    

• Cost  share  aggregator  upgrading  (for  buyers)  • Costs  share  access  to  communications  technology  for  marketing,  portfolio  management,  and  

customer  service  (for  input  firms,  financial  service  institutions  and  firms)  

DEVELOPING  NEW  BUSINESS  MODELS  &  PRODUCTS:  

• Cost  share  assistance  to  develop  dealer/distribution  networks  (for  agro-­‐equipment  dealers,  input  firms)  

• Cost  share  development  and  roll  out  of  new  products  (for  financial  service  institutions  and  firms)  • Technical  assistance  and  cost  share  assistance  to  develop  outreach  business  models  (for  ICT,  

radio)  • Cost  share  roll  out  of  mobile  money  services  (for  financial  service  institutions  and  firms)  • Costs  share  access  to  entrepreneurial  opportunities  on  the  input  and  services  side  (for  agro-­‐

equipment  dealers;  aggregators)  • Development  of  services  market  for  smallholders  (for  buyers)  

FACILITATING  LINKAGES:  

• Facilitate  links  to  or  alliances  with:  -­‐ services  relationships  (for  farmers)  -­‐ inputs  relationships  (for  farmers)  -­‐ buyer/market  relationships  (for  farmers)  -­‐ financial  services  (for  buyers,  aggregators,  ICT,  radio,  agro-­‐equipment  dealers,  input  firms,  

local  service  providers)  

SUPPORTING  PERFORMANCE-­‐BASED  INCENTIVES:  

• Cost  share  development  and  roll  out  of  performance-­‐based  incentives  at  multiple  levels  of  supply  chain  (for  buyers)  

FACILITATING  TRUST:  

• Facilitate  trust  on  purchases  and  contractual  agreements  (for  local  service  providers)