2KUZE
Description
2KUZE was first launched in partnership with Cafdirect Producers' Foundation, a non-profit organization working with 300,000 smallholder farmers globally. Currently, 2,000 small-scale farmers in Kenya use the solution to sell their produce and working with farmer-friendly agents to ensure they reach the right buyers for the best price.
Agriculture is fundamental to reducing poverty, driving economic transformation, and increasing food security and nutrition which represent many of the global goals identified by the UNs Sustainable Development Agenda. In addition, agriculture is the critical entry point for financial inclusion for the millions of farmers who drive food production for local and global markets. The mobile platform is one of the examples of how Mastercard is using its technology and expertise to help achieve the UNs Sustainable Development Goals (SDGs). <br />
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2KUZE makes transacting much safer and simpler for all stakeholders in the agricultural supply chain the farmer, the buyer and the agent. Farmers using 2KUZE can conduct the entire transaction of selling produce and receiving payments via their feature phones, without having to walk for hours to the markets. The platform enables farmers to capture a greater percentage of the wholesale value of their goods by providing price transparency, more direct access to buyers and empowerment of farmer-friendly agents.<br />
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The mobile platform is of value not only to farmers who use it but also local financial institutions and other government and non-government stakeholders. Farmers get faster payments via mobile money/ bank transfers, digital histories enabling access to credit, relevant savings products and better access to markets / information. For buyers, it means lower costs of sourcing from smallholders via bulk sourcing and payments.<br />
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Africa is home to 25% of the worlds farmland, yet it generates only 10% of all crops produced globally. Also, 80% of farmers classified as small-holder farmers having less than 1-2 acres of farming land. Crop production remains low in Africa because the majority of food producers are smallholder farmers who lack access to farming inputs such as improved seeds and fertilizers, agricultural training and fair crop markets to optimize their productivity and increase their earnings. Also, trapped in a cash economy, they lack the financial services to guard against risk, invest in their future and build better lives.<br />
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2KUZE is one of several broad-based collaborations on which the Mastercard Lab for Financial Inclusion is working. The Lab was established in Africa to contribute to the companys global commitment to connect 500 million people to formal financial services through the use of public-private partnerships with governments, the private sector and non-governmental organizations.
Eighty percent of farmers in Africa are classified as smallholder farmers having less than 1-2 acres of farming land, making it extremely difficult to drive growth and prosperity within this community. We believe that by using mobile, a technology that is so ubiquitous among farmers in Africa, we can improve financial access, bring in operational efficiency and facilitate faster payments. The collaboration between the Lab team and farmers in the market helped to deliver a solution that can be implemented and make an impact without any major changes to the day-to-day.<br />
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This solution in particular supports women farmers, who often have household duties that prevent them from leaving the farm gate and are more often subject to having to take whatever deal is given to them on the day. Digitizing these transactions in a trusted, auditable environment provides a legitimate financial footprint, opening up access to loans and other financial services, and also introducing a more efficient process that benefits the entire value chain, as well as the overall economy. Mastercard Lab is exploring the potential for 2KUZE to help farming communities receive the right level of investment and to encourage more efficient ways of doing business with smallholder farmers.<br />
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Small holder farmers will benefit the most from the solution, but the entire ecosystem will also benefit from the adoption and usage of the digital platform. Farmers are now able to conduct the entire transaction process of receiving payments and selling produce via a feature or smartphone, without having to walk hours to markets. This helps to ensure farmers benefit from the ability to capture a higher percentage of the wholesale value of their goods by providing price transparency and more direct access to buyers.<br />
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Mastercard is a key driver of the conversation and delivery of financial inclusion through the introduction of relevant products and partnerships. Our approach is driven by key learnings weve seen first-hand while developing and deploying financial inclusion solutions in markets around the world. Financial inclusion is a means to an end: eradicating hunger, ending poverty, empowering women. As the world around us becomes is becoming more digitally savvy, we know that the inclusion of Africans cannot simply be an end in itself, but rather a means to achieve something more - the foundation of economic growth thats more inclusive and sustainable. A continent less dependent on cash.
2KUZE was developed at the Mastercard Lab for Financial Inclusion in Nairobi, which was set up in 2015 to develop practical and cost-effective financial tools that expand access and help build stable futures for more than 100 million people globally. Through a grant from the Bill & Melinda Gates Foundation, the Lab is working with East African entrepreneurs, governments and other stakeholders to develop local products rooted in the companys global knowhow.<br />
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Farmers using either 2KUZE or eKilimo can conduct the entire transaction of selling produce and receiving payments via their feature phones. This enables farmers to capture a greater percentage of the wholesale value of their goods by providing price transparency, more direct access to buyers and empowerment of farmer-friendly agents. This solution supports women farmers, who often have household duties that prevent them from leaving the farm gate and are more often subject to having to take whatever deal is given to them on the day. Digitizing these transactions provides a legitimate financial footprint, opening up access to loans and other financial services, and also introducing a more efficient process that benefits the entire supply chain, as well as the overall economy.<br />
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In March, the National Microfinance Bank of Tanzania (NMB), confirmed that they had signed a strategic partnership agreement to pilot the same solution under the name, eKilimo which in Swahili means eAgriculture. In Tanzania, small holder farmers contribute USD 13.9bn to Tanzanias GDP (nearly 30 percent).The launch of 2KUZE in Kenya and eKilimo in Tanzania will help advance Goals #1 (No Poverty) and #2 (Zero Hunger), which speak directly to the needs of smallholder farmers and the immense impact they can have on the global supply chain and inclusive economic development. The solution also addresses Goal #5 (Gender Equality), by increasing economic empowerment to the estimated 43 percent of smallholder farmers who are women.
SDGS & Targets
Goal 2
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
2.1
By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round
2.1.1
Prevalence of undernourishment
2.1.2
Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)
2.2
By 2030, end all forms of malnutrition, including achieving, by 2025, the internationally agreed targets on stunting and wasting in children under 5 years of age, and address the nutritional needs of adolescent girls, pregnant and lactating women and older persons
2.2.1
Prevalence of stunting (height for age <-2 standard deviation from the median of the World Health Organization (WHO) Child Growth Standards) among children under 5 years of age
2.2.2
Prevalence of malnutrition (weight for height >+2 or <-2 standard deviation from the median of the WHO Child Growth Standards) among children under 5 years of age, by type (wasting and overweight)
2.2.3
Prevalence of anaemia in women aged 15 to 49 years, by pregnancy status (percentage)
2.3
2.3.1
Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
2.3.2
Average income of small-scale food producers, by sex and indigenous status
2.4
By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality
2.4.1
Proportion of agricultural area under productive and sustainable agriculture
2.5
By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and domesticated animals and their related wild species, including through soundly managed and diversified seed and plant banks at the national, regional and international levels, and promote access to and fair and equitable sharing of benefits arising from the utilization of genetic resources and associated traditional knowledge, as internationally agreed
2.5.1
Number of (a) plant and (b) animal genetic resources for food and agriculture secured in either medium- or long-term conservation facilities
2.5.2
Proportion of local breeds classified as being at risk of extinction
2.a
2.a.1
The agriculture orientation index for government expenditures
2.a.2
Total official flows (official development assistance plus other official flows) to the agriculture sector
2.b
Correct and prevent trade restrictions and distortions in world agricultural markets, including through the parallel elimination of all forms of agricultural export subsidies and all export measures with equivalent effect, in accordance with the mandate of the Doha Development Round
2.b.1
Agricultural export subsidies
2.c
Adopt measures to ensure the proper functioning of food commodity markets and their derivatives and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility
2.c.1
Indicator of food price anomalies
Goal 5
Achieve gender equality and empower all women and girls
5.1
End all forms of discrimination against all women and girls everywhere
5.1.1
Whether or not legal frameworks are in place to promote, enforce and monitor equality and non‑discrimination on the basis of sex
5.2
5.2.1
Proportion of ever-partnered women and girls aged 15 years and older subjected to physical, sexual or psychological violence by a current or former intimate partner in the previous 12 months, by form of violence and by age
5.2.2
Proportion of women and girls aged 15 years and older subjected to sexual violence by persons other than an intimate partner in the previous 12 months, by age and place of occurrence
5.3
5.3.1
Proportion of women aged 20-24 years who were married or in a union before age 15 and before age 18
5.3.2
Proportion of girls and women aged 15-49 years who have undergone female genital mutilation/cutting, by age
5.4
Recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate
5.4.1
Proportion of time spent on unpaid domestic and care work, by sex, age and location
5.5
Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
5.5.1
Proportion of seats held by women in (a) national parliaments and (b) local governments
5.5.2
Proportion of women in managerial positions
5.6
Ensure universal access to sexual and reproductive health and reproductive rights as agreed in accordance with the Programme of Action of the International Conference on Population and Development and the Beijing Platform for Action and the outcome documents of their review conferences
5.6.1
Proportion of women aged 15-49 years who make their own informed decisions regarding sexual relations, contraceptive use and reproductive health care
5.6.2
Number of countries with laws and regulations that guarantee full and equal access to women and men aged 15 years and older to sexual and reproductive health care, information and education
5.a
Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws
5.a.1
(a) Proportion of total agricultural population with ownership or secure rights over agricultural land, by sex; and (b) share of women among owners or rights-bearers of agricultural land, by type of tenure
5.a.2
Proportion of countries where the legal framework (including customary law) guarantees women’s equal rights to land ownership and/or control
5.b
5.b.1
Proportion of individuals who own a mobile telephone, by sex
5.c
Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels
5.c.1
Proportion of countries with systems to track and make public allocations for gender equality and women’s empowerment
Goal 1
End poverty in all its forms everywhere
1.1
By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
1.1.1
Proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
1.2
By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
1.2.1
Proportion of population living below the national poverty line, by sex and age
1.2.2
Proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
1.3
Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
1.3.1
Proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and the vulnerable
1.4
By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
1.4.1
Proportion of population living in households with access to basic services
1.4.2
Proportion of total adult population with secure tenure rights to land, (a) with legally recognized documentation, and (b) who perceive their rights to land as secure, by sex and by type of tenure
1.5
By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
1.5.1
Number of deaths, missing persons and directly affected persons attributed to disasters per 100,000 population
1.5.2
Direct economic loss attributed to disasters in relation to global gross domestic product (GDP)
1.5.3
Number of countries that adopt and implement national disaster risk reduction strategies in line with the Sendai Framework for Disaster Risk Reduction 2015-2030
1.5.4
Proportion of local governments that adopt and implement local disaster risk reduction strategies in line with national disaster risk reduction strategies
1.a
Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions
1.a.1
Total official development assistance grants from all donors that focus on poverty reduction as a share of the recipient country's gross national income
1.a.2
Proportion of total government spending on essential services (education, health and social protection)
1.b
Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions
1.b.1
Pro-poor public social spending
SDG 14 targets covered
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Contact Information
Daniel Schwartz, Director, Community Relations