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Digitizing Value Chain Payments — A digital solution from Ghana

In Ghana, Tanager has been complementing the development of agribusiness markets by linking agribusinesses with ecosystems for cashless banking as a bridge between rural communities and brick-and-mortar banking services. In order to roll out mobile payment platforms across supply chains, and provide last-mile financial services to rural farmers, Tanager partners with agribusinesses, producers, and mobile network operators to streamline procurement processes. Mobile money platforms reduce the risks associated with agricultural value chain payments and offer an opportunity to extend other (financial) services. Tanager works with financial providers to adapt their services to the needs of agricultural buyers and suppliers, and supports producers to build their financial acumen, establish credit histories, and develop relationships with financial service providers.

This work was initially operationalized with one agribusiness (GADCO) in the rice value chain. With proof of concept, the technology now extends to three different crops (paddy rice, maize, soya beans) and seeds such as maize, millets, groundnut and cowpeas among five agribusiness partners. With financial support from AGRA, Tanager builds partnerships between smallholder farmers, financial institutions and value chain actors through the use of mobile wallets to access payments, credit and saving services. This initiative is a partnership between Tanager and AGRA through the Financial Inclusion for Smallholder Farmers in Africa (FISFAP) program. The key mobile network operator (MNO) partners are Vodafone and AirtelTigo, while the main banking partner was Premium Bank, after DALEX Bank and Capital Bank withdrew from the partnership.

This learning brief gives an overview of how the expansion of digital payments and financial services in Ghana has been promoted, even as the partnership role transitions to a local partner, Farmerline.