IICD supported project: Business Intelligence Trade Points

Countries: Burkina Faso [BF]

Summary

This project will collect and disseminate, by means of ICT, up-to-date national market and price information as well as other relevant information for local producers of agricultural products. Because of their increased knowledge, these producers will be able to become more competitive players on the market.

Introduction

In Burkina Faso, small-scale agricultural producers and exporters do not have access to national and international information on agricultural products, prices and trade. Nor do such producers have available to them the tools for product promotion and the necessary training capacity to make optimal use of such information. Rather, such information is controlled and monopolised by intermediaries and large traders at the central market in the capital city of Ouagadougou. The Business Intelligence Trade Point for the agro-business sector is a project designed to address the socio-economic exclusion of small-scale farmers in Burkina Faso.

Objectives

The Project is expected to:

strengthen the competitiveness of the small agro-business producers and traders through an effective and efficient agro-business information facility

This can be achieved for example, by helping local agriculturalists be more proactive in the face of changing market conditions. Trade Points was deemed a viable and relevant project during the IICD ICT Roundtable in Burkina in January 1998.

Planned outputs

The Business Intelligence Trade Points will provide both the access to market information - via the Internet - and the training in capacity building required for information retrieval and analysis - via computer software applications. The Business Intelligence Trade Point will be run from a national information centre in Ouagadougou. The national centre will feature a customised hybrid media information service comprised of a database with searchable market information, Internet and more traditional sources of market information. This central site will be connected to four regional centres, each situated in a different agricultural area in Burkina. Well-trained regional staff or information officers, will assist agricultural producers to access, retrieve, analyse and disseminate market information. The complete service package offered by the custom-made local centres will include: 1) Information Services (market information); 2) Business Services (company start-up and legal advice); 3) Product Promotion; and 4) ICT Supported Training (in agro-business marketing).

Development Impacts

The Project seeks to improve the economic position of small-scale agricultural producers and exporters by enabling a more competitive market positioning relative to the large producers. Strengthening their market position empowers their overall business position and consequently, will contribute to alleviating rural poverty. The immediate projected implications are a reduction in information and communication costs and an improvement in income through the delivery of agro-business services. The Project's beneficiaries are the member organisations of the FIAB (Féderation Nationale des Industries de l'Agro-Alimentaire du Burkina Faso) and other interested agro-businesses in the region. These include small and medium-sized producers and exporters as well as several West-African agro-business federations. There are 60 small-scale producers and exporters directly linked to the FIAB. It is estimated that another 500 producers and exporters will be reached outside of this link. Being that facilities are wholly accessible, the Project can serve as a generic solution to problems in the provision of rural access to market information. Therefore, the Project is pioneering and has the potential to serve as a model for similar information services in both other sectors and countries. In addition to the end-user benefits, the Project will transfer technology and knowledge through the training of rural site staff including information officers. The Project will also contribute, albeit modestly, to employment levels through direct hires

Market and finance

There is no universally accessible service for market information; rather, information is restricted to a small group of large producers. Given that interest in the Project's output and awareness of the Project's objectives is already well-established, it is expected that demand for the Project's services will match full production capacity by Year 2. Output during the Project's start-up year is expected to reach 68% of full sales/operating capacity.

Given the projected market demand, the Project will become a self-sustaining information service. Information will be made available to all interested parties in exchange for a fee deemed reasonable per a market survey. Sales of information and advisory services are billed on a price per printed page and hourly basis. Total revenues for all services - information services, business services, product promotion, ICT supported training and communication services - are projected at USD 35,500.00 during Year 2. Revenues are expected to increase per a 10% increase in service prices, while sales/operating capacity is held constant through the remaining project life. The operation is projected to become profitable in its 6th year of operations.

Project is built on modern but locally sustainable ICTs and related skills that allow for cost savings on information and communication infrastructure.

Project Owner : Federation Nationale des Industries de l'Agro-Alimentaire du Burkina Faso (FIAB)

Project Partners : IICD, UNDP

Contact Organisation :