Digitization As a Key Driver For Rural Economies

The global ecosystem is experiencing unprecedented growth, driven largely by the rapid adoption of digital technologies. According to the GSMA 's State of Mobile Internet Connectivity Report 2023, 57% of the global population is using mobile internet. In 2022 alone, 200 million people started using the mobile internet. Despite this progress, significant disparities remain, influenced by gender, location, affordability, and access in general. The global digitization gap is an industry valued at $200 billion, but attempts to close this gap are rather slow.

The adoption of mobile internet in Sub-Saharan Africa is growing. Nearly 30 million new users joined the mobile internet community in 2022. Mobile internet offers a lot of opportunities for rural communities, especially for smallholder farmers who can benefit from the data and information online in their activities.? More efforts are needed to bridge the remaining digital divide, particularly among rural smallholder farmers. The major inhibitors to the adoption of mobile internet are digital literacy, especially among rural communities, and the affordability of mobile devices and data packages.

The advent of technology is often heralded as a revolution transforming the world into a global village. However, this revolution risks leaving behind those who might just be in most need of these services—rural smallholder farmers. Digital technologies can profoundly impact these farmers by providing access to essential information and resources that can enhance productivity and economic stability.

Being digitally empowered can provide for rural smallholder farmers:

Access to Market Information

Mobile internet can provide farmers with real-time data on market prices, weather forecasts, and best farming practices. This information empowers farmers to make informed decisions, potentially increasing their income and sustainability.

Financial Inclusion

Digital financial services, such as mobile money, have revolutionized financial transactions in many developing countries. For rural communities, this means convenient access to banking services, enabling secure transactions, savings, and even microloans. Without access to mobile devices, these benefits remain out of reach.

Enhanced Agricultural Practices

Digital platforms can offer educational content on advanced farming techniques, pest control, and crop management. This knowledge transfer is crucial for improving crop yields and reducing losses due to pests and diseases.

Supply Chain Integration

Digitization can streamline supply chains, ensuring that farmers get timely access to inputs like seeds and fertilizers. It also helps in creating a digital creditworthiness profile for farmers, facilitating access to credit and investment opportunities.

Supply Chain Traceability

A digitized value chain is the cornerstone of achieving traceability. Ensuring traceability promotes transparency, accountability, and ethical practices, guaranteeing premium prices for commodities. This system verifies ethical sourcing, eliminating harmful practices like child labor and modern slavery. By digitization, we ensure a fair, sustainable, and traceable ecosystem for the agricultural value chain.?

The need for digitization among rural smallholder farmers is more pressing than ever. Digital solutions are being developed at an accelerated pace, but those who need them most may remain unaware or unable to access them due to the lack of mobile devices. Bridging this gap requires concerted efforts from governments, private sector players, and non-governmental organizations. We can build a more inclusive digital ecosystem by granting access to digital devices and encouraging a culture of digital literacy. This will enhance the livelihoods of farmers and contribute to the overall economic growth and sustainability of rural communities. It is time to drive this change, ensuring that no one is left behind in the digital revolution.