Kickstart
Kickstart produces, distributes, and sells irrigation equipment to smallhold farmers in Africa. These pumps are marketed and sold to farmers, allowing them to irrigate their crops and increase yields. On average, farmers who purchase the pumps increase their income 400-500%, according to the organization, in addition to having a more stable source of sustenance food. Although, the irrigation equipment is very useful to farmers, there is little pre-existing demand due to the lack of irrigation in the African culture and lack of knowledge of the benefits. Thus, education and marketing to farmers forms a large part of Kickstart’s mission.
Presently only 7% of African farmland is irrigated. Kickstart estimates that they sell a treadle pump for every $330 donated. With increased take-up, there will be less outreach involved to sell the pumps and the cost of both manufacture and distribution should go down, lowering the per-unit subsidy required. On a macro level, increased irrigation in Africa decreases risk of famine and increases resilience to climate change. Distributing and selling Kickstart’s irrigation products also provides employment for the extreme poor.
Replaceability of Donations and Room for More Funding
Subsidized markets for smallhold farm irrigation receives little attention and funding, so it is unlikely that greatly increased funding in this area will discourage other funders. With 80% of the extreme poor in Africa being smallhold farmers and only 7% of farmland irrigated, there is major room for growth of the sector. Kickstart has an annual revenue of approximately $8 million, so they can easily absorb over $10 million/year in increased funding. CEAS believes it is important to take the long view. African farms desperately need irrigation to feed the continent and make a livable income for the farmers. Kickstart’s model of providing irrigation equipment even the poorest can afford and developing demand for these essential products is possibly the most feasible way to make progress in Africa’s agricultural sector.
As with most products, giving them away for free often has negative effects, as people won’t use them or don’t maintain them, resulting in them breaking down quickly, not to be repaired or replaced. Kickstart estimates 99% of clients who buy their treadle pumps use them. Also, a partial cost recovery means a lower per-unit cost to the NGO, permitting them to distribute more of the product.
How Does the Cost-Effectiveness of Micro Irrigation Compare to Major Irrigation Infrastructure?
With little farmland irrigated, it is natural to presume that major infrastructure would be the solution. Sub-Saharan Africa has had many such projects built in the past 50 years, with rather disappointing results. Many of the irrigation projects have failed or under-performed to the point where aid donors are reluctant to invest further in this area. Reasons for poor performance include poor design and institutional mismanagement, both probably stemming from corruption. Institutions have generally not found the micro-irrigation space attractive enough to enter. As Meredith Giordano, principal researcher at the International Water Management Institute puts it, micro-irrigation “falls between the institutional cracks.”
The International Food Policy Research Institute (IFPRI) estimates the the return on investment for micro-irrigation is 28%, compared to 7% for major irrigation infrastructure.
“A lot of government agencies and even donor communities like big projects, but if you look at the returns, small-scale actually gives higher returns, and from my own research I think small scale irrigation is the future in the African context.”
Is Microfinancing a Better Solution to Smallholder Irrigation?
Financing for base of pyramid is an important part of micro-irrigation uptake. Kickstart is presently looking into financing options for its customers, although it has not yet implemented a financing program. The problem with microfinance as the only driver to increase micro-irrigation use in Africa is that, as is typical with market-based solutions in sub-Saharan Africa, there is presently little demand for these products. Kickstart, International Development Enterprises, and other organizations that promote treadle pumps and other micro-irrigation for smallholders need to invest in advertising and education to create demand.
Even though micro-irrigation increases yields, irrigation is not part of the African culture and it is difficult to change cultural attitudes. Also, word-of-mouth promotion of these products has an paradoxical barrier: farmers are often reluctant to let their neighbors know they use irrigation equipment because they know people who have been nuisanced by requests for money from others once they found out they use this equipment. Their neighbors have heard that farmers who use irrigation equipment have a lot more money and try to get them to share that money with them!