National Survey and Segmentation of Smallholder Households in Côte D'ivoire

WORKING PAPER

National Survey and Segmentation of Smallholder Households in Côte d’Ivoire Understanding Their Demand for Financial, Agricultural, and Digital Solutions Corinne Riquet, David Musiime, and Collins Marita

March 2017

TABLE OF CONTENTS

A. INTRODUCTION AND KEY FINDINGS...... 1 Introduction...... 1 Key Findings...... 2

B. ABOUT THE PROJECT...... 6

C. FINDINGS: SMALLHOLDER HOUSEHOLD DYNAMICS IN CÔTE D’IVOIRE ��11 1. Who They Are...... 11 2. Income and Expenses...... 24 3. Risks and Mitigation...... 36 4. Mobile Phone Tools...... 47 5. Financial Inclusion...... 52 6. Market Segmentation...... 63 7. Desires and Aspirations...... 94 8. Concluding Observations...... 103

ANNEX 1: METHODOLOGY AND DESIGN...... 105

ANNEX 2: RANDOM FOREST...... 110

iii ACKNOWLEDGMENTS The authors extend sincere appreciation and gratitude to Jamie Anderson, Melanie Bernstein, Mary Ann Fitzgerald, Colleen Learch, Lucy Mukami, Denise O’Reilly, Mamadou Thiam, Charles Wanga, Xiaoyan Hu, and Loice Cherwon for their valuable contributions and feedback during the preparation of this paper. The authors also thank all the stakeholders in Côte d’Ivoire for their valuable comments on the questionnaires and/or this document, in particular the representatives of ADVANS, Agence Française de Développement (AFD), Barry Callebaut, World Bank, CARE, Delegation of the European Union in Côte d’Ivoire, Food and Agriculture Organization of the United Nations (FAO), International Fund for Agricultural Development (IFAD), Fonds Interprofessionnel pour la Recherche et le Conseil Agricole (FIRCA), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), International Finance Corporation (IFC), National Institut of Statistic (INS), Ministry of Agriculture, MTN,

MOOV, and Première Agence de Microfinance (PAMF). National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

A. INTRODUCTION AND KEY FINDINGS Introduction their services, and have more recently Côte d’Ivoire, a democratic republic beenaccess the formal target financial of initiatives institutions to break and of 24 million people, is an agricultural down barriers to access. For instance, Advans Côte d’Ivoire,6 in collaboration world’s largest producer and exporter of with CGAP and in partnership with MTN, cocoafixture beans in the and global cashew economy. nuts, and It isa top the 1 exporter of coffee and palm oil. Agricul- solutions for cocoa farmers, and offered ture supports almost 70 percent of the farmersan MNO, a identified remunerated branchless digital bankingsavings Ivoirian people and makes up 19 per- account using a USSD channel that is ac- cent of the country’s gross domestic cessible on all phones and easily usable product (GDP). Much of the agriculture by all farmers.7 sector contribution comes from smallholder farmers.2 Smallholder farmers are the lifeblood of Côte d’Ivoire, but they are largely ne- The country has had an average per capita real GDP growth of 6 percent in recent which are concentrated in urban areas. years (2012–2015), following a decade Thisglected situation by formal results financial in a institutions,rural econ- of political crisis.3 Agricultural exports omy based on cash transactions. Like and natural resources (gold) make the other Ivoirians, smallholder farmers country a regional economic power in sub-Saharan Africa.4 - culturalhave a wide activities range and of financial family life. needs, To bet in- tertheir understand specific case, them both and for their their needs, agri from the effects of the political crisis, CGAP conducted a nationally represen- andIts financialthe development sector is of still a performing recovering tative household study of smallholder households between February and a challenge for supporting a high GDP June 2016, in close collaboration with growthand inclusive in the long financial term. National sector remains survey local stakeholders. This study sought to map the many activities, interests, services. As of 2014, just over one-third barriers, and pressures facing small- data suggest limited access to financial- holder households. The questionnaire ly included; mobile money providers also explored nonagricultural house- (mobile(34 percent) network of adults operators were financial[MNOs]) were the largest providers of accounts interests, and the challenges and aspi- (19 percent out of 34 percent of adult rationshold activities, facing smallholderfinancial practices families and in 5 population with an account). Côte d’Ivoire. Smallholder farmers, even those in This comprehensive exploration of the structured value chains, struggle to lives of smallholder farming households

1 The World Factbook, Côte d’Ivoire, Central Intelligence Agency, and World Bank. 2 Côte d’Ivoire, Fostering Economic Growth, International Monetary Fund, May 2016. 3 Ibid. 4 Ibid. 5 Financial Inclusion Data/Global Findex. 6 Advans and their families, and small and medium enterprises. provides credit and savings products and a range of financial services tailored to entrepreneurs, traders, artisans 7 Digital Financial Services for Cocoa Farmers in Côte d’Ivoire. http://www.cgap.org/blog/digital- -services-cocoa- farmers-c%C3%B4te-d%E2%80%99ivoire. financial

1 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

sought to answer the following three known, reliable representative data questions: about the population.

■■ What does the community of practice ■■ Connect readers with the unique need to know or do to help small- realities of smallholder farmers in holder farmer households build Côte d’Ivoire that otherwise could resilient and productive livelihoods? erroneously generalized from other ■■ - smallholderbe overlooked, farmer oversimplified, markets. or spond to the relevant needs and de- siresHow of can smallholder financial mechanismshouseholds? re ■■ Catalyze conversations about “what’s next” for smallholder-centered strat- ■■ What types of market strategies and egies, products, and approaches that approaches can cultivate uptake and facilitate agricultural and household

use of financial mechanisms? - tions, and insights from the national sur- Keyfinance. Findings veyThis ofreport smallholder shares the households findings, observa in Côte d’Ivoire. It begins with an overview of Like smallholder farmers in many coun- the research approach, core program ob- tries, agriculture sustains the household jectives, research questions, preliminary as a source of income and subsistence phases of development, and topics in- and, therefore, dictates household pri- cluded in the questionnaire. The report orities. In Côte d’Ivoire, cocoa is the cash examines how households manage their income and expenses, and the issues that It is the leading source of income and a threaten their income and often lead to maincrop thatcash shapes crop for and many defines households. the sector. - nancial inclusion in the smallholder sec- Despite the risky nature of and low re- tor,financial exploring instability. household It then tools describes that are fi turns in agriculture, smallholder farm- - ers in Côte d’Ivoire are passionate about ing mobile phones and national identi- and committed to agriculture. They take essential for financial inclusion, includ pride in their work, want to continue of, awareness of, barriers to, and inter- in agriculture, and look for opportuni- fication documents, as well as adoption ties to advance their agricultural pur- sections that follow outline meaningful suits. The realities, however, may cause segmentsest in various of the financialsmallholder products. population The farmers to reassess their situation and in Côte d’Ivoire, mapping out groups consider diversifying, especially for the of smallholder farmers that matter for sake of their children. They may consider fostering greater product adoption, and steadier income streams if options ever - present themselves. However, transi- nancial mechanisms. A full explanation tioning away from agricultural activities ofdelving the research into their methodology demand for is various included fi is likely to be driven by need, and not by in Annex 1 and in the user guide that ac- a dislike for farming. Low levels of edu- companies the data set. to consider diversifying, and farmers are This report has three main goals: inclinedcation make to stay it more in agriculture. difficult for Low farmers levels of education also mean that farmers ■■ Build the evidence base for those may struggle to access information.

that assumptions and/or isolated Smallholder farming is fairly contained observationsworking in agriculturalcan be paired finance with so within the household itself. These

2 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

households engage in agriculture, relying in Côte d’Ivoire grow more than one mostly on their own resources, with lim- crop, be it for consumption, selling, ited outside help. What little support they or trading. Generally, most of them do solicit typically comes by way of fam- consume rice, but when asked which ily and friends, or other members of the crop they consider most important, community. More formal entities—such - provides a reliable income. puts providers, resellers, buyers, or other cocoa comes first, mainly because it ■■ Smallholder farmers operate in an entitiesas financial that are institutions, often a part agricultural of an agricul in- informal economy and have poor tural value chain—play only a small part access to information. Smallhold- in the Ivoirian smallholder ecosystem. ers operate in a cash-based, informal economy. They do not have formal Important factors contracts for the crops they are cul- Six fundamental characteristics of Ivo- tivating. Furthermore, they depend irian smallholder households that can mostly on each other for agricultural help the community of practice foster not turn to resources that offer con- and financial information. They do and lead to resiliency and better social temporary insights into agriculture well-beinggreater productivity are as follows: and profitability not connected to these channels. Few ■■ Women and younger generations smallholdersor finance mostly engage because in agricultural they are face major challenges. Men domi- organizations—mainly because of nate smallholder households and the perceived mismanagement and no decision-making process. Smallhold- perceived clear advantages. Very few er farmers are a tenured population; - the majority are age 40 or older and tions that could offer knowledge and have farmed for more than 10 years. advice.are connected This suggests to financial that reaching institu And those without any formal school- audiences with meaningful, useful ining lead more than half of the small- formation requires building channels holder households in the sample. and having a dissemination strategy.

■■ ■■ Smallholder have a common de- Risky practices run counter to fi- pendence on agriculture. Agricul- nancially sound desires. In prac- ture is the main income stream for tice, smallholder households have these households. A majority of fam- no plan to manage and cushion costs ilies consume what they grow, trade of risks and events. They do not have goods for other necessities, and sell savings, do not have access to emer- their crops for income. Although gency funds (including loans from one crop is used in a variety of ways, formal or informal sources and/or households often fall short of their monthly needs. Most smallholder ways to get money quickly), and do households in Côte d’Ivoire live at notgoods have to insurancesell for profit or any and/or other other way or below the poverty line; many live to mitigate risk. Their aspirations, in extreme poverty. They work hard, have big aspirations, and take pride responsible, and even prosperous in their accomplishments. mindset.however, reflectThey wanta financially to save, astute, they want to insure their activities, and ■■ Crop diversity exists, but there they want to have more options for is some level of dependence on - particular crops. Most smallholders nancial security has not diminished mitigating risk. The appetite for fi

3 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

because of a lack of access and a occur, but unexpected and emergency challenging context.

■■ Smallholder farmers are not a eventsThere areare difficultalso positive to manage. signs of digital monolithic group. Smallholder readiness among smallholder families. In addition to having access to mobile main personas, or segments, that phones, many have an acceptable form varyfarmers according in Côte to d’Ivoiredemographic have and five psychographic factors. These per- and know how to send an SMS. There sonas also vary in terms of the level areof identification emerging signs for openingof a digital an accountecosys- tem taking hold within the population. that represent 54 percent of small- More than one-quarter (27 percent) of holderof financial farmers inclusion. are largely Two segmentsexcluded, smallholder farmers have mobile money have less access to resources, and are accounts, and within that group, there more vulnerable. In addition, there are signs that users are engaging with is a discernable lack of young peo- accounts for beyond-basic purposes. ple across the population. Depen- dence on agriculture decreases as - one moves through the segments and holder farmers most want are those that The digital financial services that small - enable them to live the life they aspire to cially included, but the willingness have, that help them afford agricultural toas thework segments in agriculture become remains more finan high or household essentials, mitigate risk, across the segments. Three segments and plan. They want to be able to pur- have greater success in farming and chase inputs on credit, or have a savings greater access to agricultural infor- plan to attain them, even though they do mation and resources to support not currently have these mechanisms. their work, which increases their af- They want access to resources that help them better cultivate their land. They though they also have other nonagri- want to meet the requirements for and culturalfinity for forms staying of income.in agriculture even enter into a payment plan to afford school fees.

Relevant and desired financial Financial inclusion has yet to reach mechanisms the most vulnerable smallholders in any meaningful way. Some segments Smallholder farmers in Côte d’Ivoire continue to struggle day to day, rely have limited knowledge of and exposure on their agricultural outputs to get by,

agricultural activities. Only three in 10 (even informal products), and stand to to financial mechanisms related to their- have no other financial service options jority of these being included through mechanism. mobileare financially money. included,A majority with have the a mo ma- gain a great deal from a basic financial bile phone and can envision it as both a Strategies to increase financial well- banking and agricultural tool. However, being among smallholder households because they lack exposure to services available through mobile phones, farm- Four implications for cultivating uptake ers have mixed feelings about the capa- - bilities of a mobile phone. Smallholders nisms emerge: - and expanding relevant financial mecha tices in that they save what they can ■■ Empathize with life desires and andcurrently anticipate exhibit expenditures positive financial before prac they circumstances. Most smallholder

4 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

farmers do not want to leave farm- ■■ Pair immediate needs with long- ing: they want to take what they do term desires. Loans that include and do it better. They want to move insurance or banking or savings accounts and mobile money accounts that include savings and similarly greateraway from economic risky financialstability. Many, practices be- bundled products can go a long way causeand behaviors of circumstances, and find a waylack to access build in appealing to immediate needs and to mechanisms that can help them do conditioning a desirable long-term just that. More access points located practice. Further, farmers do not closer to the farmers are needed for want to see their hard labor go for - naught because of bad weather or nancial transactions. In addition to pests; they want access to insurance, theseboth mobiletangible money barriers, and smallhold general fi- social safety nets, and convenient ers feel that they do not have enough and reliable information to avoid money to open an account; some- those risks. times they are simply not aware of ■■ Target messaging and initiatives could be relevant to them. Solution based on where they are in the providershow these could financial inform mechanismsproduct de- path to financial inclusion. One’s sign and drive adoption by showing household economics, outlook on more empathy with the challenges life, and life experiences (includ- facing smallholder families and appealing to their priorities. thaning education) a third of influence smallholder the uptakehouse- ■■ Build on the inherent appeal of of financial mechanisms. With less and desire for financial mecha- groups that are ready for a more ad- nisms. Smallholder households are holds financially included, there are- keenly aware of the importance of tion, which is a worthwhile move for avanced farmer-led financial deepening services and proposi expan- saving, investing, staying on bud- get,positive and planning, financial practiceseven though such they as is a need to add active consumers to can barely do these. They try, within sion of a financial ecosystem. There their means and resources, to plan or women and those who are under save for the essentials in life and ag- agethe 30. financial ecosystem, especially riculture, even if circumstances limit their ability to save for unexpected Smallholder farmer households’ circum- events or emergencies. Financial stances and surrounding ecosystem lead services providers do not have to them to struggle day in and day out, live convince smallholder farmers that below the poverty line, and be tied to the they should plan, or save, or invest in most basic of systems. Improving their their future. They need to provide a current situation may involve providing realistic means for doing so and ed- teaching them a better strategy for going products that will serve them well. aboutthem with their facilitative life’s work. financial tools and ucate farmers about using financial

5 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

B. ABOUT THE PROJECT Working to build the evidence base on households in Côte d’Ivoire. The research smallholder farming households, CGAP consisted of a survey with an accompany- - ing household listing and a segmentation. cial and agricultural lives of smallholder It sought to answer three key questions. sought to explore in more detail the finan

What do we need to know or What type of market How can ﬁnancial mechanisms do to help smallholder farmer strategies and approaches can respond to the relevant needs households build resilient and culvate uptake and use of and desires of smallholders? producve livelihoods? ﬁnancial mechanisms?

Existing Research and Stakeholder - Discussions. Building on other household surveys in sub-Saharan Africa (e.g., otherfinancial channels side, what and serviceis the comfort providers? lev agricultural censuses, Living Standards el with digital financial services and Measurement Study [LSMS], FinScope, ■■ Opportunities to improve finan- AgFiMS) and the 2013 CGAP global cial inclusion for each segment segmentation,8 this methodology and of smallholder households. What survey instrument were designed to answer a number of questions about small- segment of smallholder households holder households in Côte d’Ivoire:9 demand,financial through mechanisms the lens does of eachcus- tomer needs (crop storage, transfer, ■■ Understanding and segmenting build, secure, etc.) and products (e.g., smallholder households. What are credit, deposit, insurance)? What in- the key characteristics of the smallholder sector at the national level mechanisms does each segment cur- (e.g., demographics, poverty status, rentlyformal use, and and formal where suite are ofopportuni financial- hectares, crops and livestock, level ties to add value with new services - and/or delivery channels? ships)? What segments of smallhold- erof households intensification, emerge? market relation a series of deep dives into existing re- ■■ Attitudes and perceptions of searchThe first in months the smallholder of the project space included to de- smallholder households. How do termine what questions have already smallholder households perceive their agricultural activities (e.g., a and determine how to drive our ob- subsistence activity, business), and jectivesbeen asked, to complement identify theirand expand findings, on do household members, especially them. Several sources were consulted youth, see a future in farming? On the in the process, including IFC, Dalberg,

8 See Christen, Robert Peck, and Jamie Anderson. 2013. “Segmentation of Smallholder Households: Meeting the Range of Financial Needs in Agricultural Families.” Focus Note 85. Washington, D.C.: CGAP, April. 9 CGAP retained the services of InterMedia to manage the survey in partnership with Ipsos Côte d’Ivoire. Additional national surveys and segmentations of the smallholder sector, led by CGAP, were also conducted in Mozambique, Uganda, Tanzania, Nigeria, and Bangladesh.

6 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

Finmark Trust, AgFiMS, FinScope, FAO, extensive desk research10 concluded that GIZ, IFAD, and the World Bank. The there is no clear agreement on the char- secondary research brought a series of questions that informed discussions in part to the heterogeneity of this client with stakeholders. group.acteristics A matrix that define was developeda smallholder, of each due of the key criteria that could be used Several stakeholders and organizations to distinguish smallholder households also contributed valuable insights and from other households (see Table 1). considerations into the design of the research project and the survey question- The desk research also found a range naire. Some of these key organizations - included AFD, IFC, AfDB, FAO, UE, GIZ, USAID, IFAD, the Ministry of Agriculture, variationsof definitions in their of a agricultural smallholder sectors. house ANADER, professional agricultural or- hold across countries, reflecting the- ers solely by their landholding size. The institutions, MNOs, World Bank Group rangeSome differed governments greatly define across smallholdAsian and colleagues,ganizations, and research the LSMS centers, team. financial African countries—from a maximum of 2.5 hectares in India up to a maximum Extensive secondary research and dis- 46 hectares in Malaysia. In Côte d’Ivoire, research showed that smallholder farm- information gap about the actual needs, ers dominate the agricultural sector, desires,cussions and with perceptions stakeholders of identifiedsmallholder an with average farm sizes between 1.5 and households. This research project sought 5.0 hectares.11 Smallholder farmers con- to connect the agricultural data to the tribute a majority of the country’s total agricultural outputs. and intersections between the two. financial data to dissect the interactions A high watermark was developed to Identifying Target Group of Small- identify smallholder households in a holder Households. Discussions with way that is as inclusive as possible, with- stakeholders in sub-Saharan Africa and out diluting or distorting the population

TABLE 1. Key criteria in defining smallholder households Key Criteria Considerations Market orientation Subsistence vs. market-oriented vs. hybrid Landholding size Threshold Labor input Family vs. hired Income Shared income from farming, multiple sources Farming system Technology, irrigation Farm management responsibility Owner, influence over how to farm Capacity Storage, management, administration Legal aspects Formal vs. informal Level of organization Member of group—producer, supply chain, service provider

2013. 10 Defining Smallholders: Suggestions for a RSB smallholder Definitions; Roundtable on Sustainable Biomaterials; October 11 Abbott, P. (2013), “Cocoa and Cotton Commodity Chains in West Africa: Policy and Institutional Roles for Smallholder Mar- ket Participation.” In Rebuilding West Africa’s Food Potential, A. Elbehri (ed.), FAO/IFAD.

7 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 1. Listing criteria to identify relevant smallholder households

Household with up to 5 hectares Agriculture provides a meaningful con- OR tribution to the household livelihood, income, or consumption (self-identified) Farmers who have fewer than: AND 50 heads of cattle; or 100 goats/sheep/pigs; or 1,000 chickens

- survey in the series, with other surveys in sure used two key criteria—landholding Mozambique, Uganda, Tanzania, Nigeria sizerepresentation. and livestock The count—as identification the startmea- and Bangladesh. Fieldwork had several ing point for identifying the target - group for sample selection. A series of ble households and household members self-identifying perception questions couldfailed not call-backs, be interviewed where identifiedduring the eligitime was asked to ensure that each smallholder household selected for the study viewed agriculture as a meaningful part shortallocated of tothe fieldwork target. For in eachthis country.reason, Asin of the household’s livelihood, income, Côtea result, d’Ivoire, the final the samplenumber size of householdsfell slightly and/or consumption. selected in each EA was increased from 15 to 17, following the household list- Before the survey, a household listing ing operation in all sample EAs. In total, exercise was conducted to identify po- 3,415 households were selected for the tential households to include in the sur- survey, of which 3,109 were found to be vey sample. The listing exercise targeted occupied during data collection. Of these, smallholder households with the crite- 3,019 were successfully interviewed. In the interviewed households, 6,659 riaMethodology. identified in Working Figure 1. closely with the eligible household members were iden- Côte d’Ivoire Institute of Statistics (Institut - National de la Statistique de Côte d’Ivoire), tionnaire. Interviews were completed InterMedia conducted a household listing withtified 5,706 for the eligible Multiple household Respondent members. ques operation in randomly selected enumer- Among the 3,019 eligible household ation areas (EAs) between 2 March 2016 members selected for the Single Respon- and 26 March 2016 to construct a reliable dent questionnaire, 2,949 were success- sampling frame. The listing operation was fully interviewed. implemented by Ipsos Côte d’Ivoire, Inter- The displayed sample (n) sizes in some

Media’s local field partner. - the analysis because of the question order 12 ple, - patternof the graphs (i.e. skips) and figures in the changed questionnaire, during banThen, and using rural a stratified,areas based multistage on the 2014 sam some new variables were created by com- population each regioncensus, was and classified the sample into was ur bining one or two variables, and in some selected independently in each urban instances those who did not respond to and rural stratum. The 212 EAs were ran- some of the questions were left out. domly selected as primary sampling units with probability proportional to the num- Questionnaire Design. The question- ber of households in the EAs. The Côte naire design process began by using the secondary research and stakeholder d’Ivoire12 The methodology smallholder and design survey are detailed was in Annex the fifth1.

8 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

discussions as core inputs into the Organization of the Survey. The ques- measurements to shape the survey in- tionnaire was divided into three parts strument. This process also involved (see Table 3) to capture the complexity of smallholder households, with certain doing the following: questions asked of all relevant individu- defining the end goal of the research by als in the household, not just one house- ■■ Drawing from existing survey hold member.13 The survey was designed instruments. in this way to capture the complete por- ■■ Considering the objectives and needs trait of the smallholder household, be- of the project. cause some members of a household may work on other agricultural activi- ■■ Accounting for stakeholder interests ties independently, without the full com- and feedback. prehension of their involvement and responsibilities by other members of These foundations led to a framework the household. for the survey instrument for sharing across stakeholders, and ensured the The questionnaire was translated into research captured all the necessary ele- French, then pretested and validated to ments of a smallholder household. The ensure the integrity of the questions and framework was built around the follow- to ensure they were in line with social ing sections (Table 2). and cultural customs.

TABLE 2. Framework for the smallholder questionnaire Household Agricultural Mobile Financial Section Demographics economics practices phones services Relationship Income Land Use (own or Formal ownership borrow) institutions Marital status Jobs Crops Types of Less than grown phones formal institutions Age Government Livestock Barriers Informal payments financial service providers Examples School attendance Saving Value chain Habits Importance of topics Income Investing Market Products Borrowing covered relationship Decision-making Emergency Water Products planning Financial situation Risk Labor mitigation Progress out of Inputs Poverty Index (PPI) Storage Coping

13 The three questionnaires are included in the user guide that accompanies the data set for this research.

9 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 3. Design of smallholder questionnaires Household Multiple Respondent Single Respondent questionnaire questionnaire questionnaire Target Head of household, All household members One randomly respondent(s) spouse, or a knowl- over 15 years old who selected adult in the edgeable adult contributed to the household household income or participated in its agricultural activities Topics • Basic information • Demographics • Agricultural covered on all household • Agricultural activities activities members • Household • Household • Information about economics economics household assets • Mobile phones and dwelling • Formal and informal characteristics financial tools

Data were collected from 15 April to 13 May 2016, using computer-assisted data The Côte d’Ivoire smallholder household collection tools that regularly yielded surveyprovide was timely implemented feedback by to Ipsos field staff.Côte data for analysis and quality control to

d’Ivoire, InterMedia’s local field partner.

10 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

C. FINDINGS14 1. SMALLHOLDER HOUSEHOLD DYNAMICS IN CÔTE D’IVOIRE: WHO THEY ARE Smallholder farmer households span Smallholder households are male- the country, are led mostly by men, dominated. A man is much more likely and reflect an aging population to be the head of a smallholder farming household in Côte d’Ivoire than a woman The Côte d’Ivoire census divided the is (90 percent men vs. 10 percent women) country into three major zones; each (Figure 3). Few women have important zone is then comprised of its associated decision-making roles in households’ ag- regions for purposes of this nationally ricultural activities. Most female-headed representative survey: households are led by widows. ■■ Forêt Est: Indenie-djuablin, Yamous- The Ivoirian smallholder population re- soukro, N’zi, Sud-comoé, Lôh-djiboua, Agneby-tiassa, Belier, Grands-ponts, (54 percent) of heads of households are Iffou, La mé, Moronou betweenflects a robust the ages aging of generation.30 and 49. Thirty-six Over half percent of smallholder heads of house- ■■ Forêt Ouest: Haut-sassandra, Tonkpi, holds are over the age of 50. With just San-pedro, Marahoue, Gôh, Cavally, over one-tenth of smallholders in Côte Gbokle, Guemon, Nawa, d’Ivoire under the age of 30 (Figure 4), ■■ Savane: Poro, Gbeke, Gontougo, Ka- there is a relatively small presence of - the “next generation” of farmers within goue, Bere, Bounkani, Folon, Hambol, the existing head-of-household popula- Tchologobadougou, Worodougou, Bafing, Ba on their own because they lack employ- Smallholder households span Côte menttion. Youth and resources. find it difficult Therefore, to branch farming out d’Ivoire’s three zones, with 50 percent remains the ideal option for current and residing in the Forêt Ouest zone, and the potential young smallholder farmers, other half split evenly between the Forêt but appealing incentives to stay in farm- Est and Savane zones (Figure 2). ing are necessary.

FIGURE 2. Regional Zone FIGURE 3. Gender of head of household

Female Savane Fôret Est 10% 25% 25%

Fôret Ouest Male 50% 90%

Sample: Smallholder households, n53,019 Sample: Smallholder households, n53,019

14 Graphs and tables in the main body of the report include references to the unweighted base size, and therefore, at times, they will not look proportional to graphs that show subsets of other graphs. Due to rounding, not all percentages in charts total 100. Due to rounding, percentages in the text that combine two or more categories represented in the subsequent graph may vary by a percentage point.

11 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 4. Age of head of household FIGURE 5. Highest education attended by head of household

15-29 11% 58%

30-39 27%

25% 40-49 27% 15%

0% 1% 50-59 17% Never Pre-primaryPrimary SecondaryHigher aended educaon 60+ 19% school

Sample: Smallholder households, n53,019 Sample: Smallholder households, n53,019

Most heads of household have limited ed- (Figure 7). Male heads of households ucation. A majority of heads of households are overwhelmingly likely to be married (58 percent) have never attended school or cohabiting, while over half of female (Figure 5), and education beyond primary heads of household are divorced, sepa- school is rare among smallholder heads rated, or widowed (Figure 8). of households. Only 15 percent advanced through secondary school, and 1 percent Household size tends to be large for received a higher education. There is a smallholder households in Côte d’Ivoire. large gender difference in education levels (Figure 6); three-fourths of female heads people; close to a quarter have eight of household never attended school. orSix morein 10 people. households Four havein 10 five households or more have four or fewer people. Just 14 per- Most smallholder household heads in cent are very small, with just one to two Côte d’Ivoire are married or cohabit- members (Figure 9).15 ing (84 percent), and about one-tenth are divorced, separated, or widowed

FIGURE 7. Marital status of head of household FIGURE 6. Highest education attended Divorced/ Single/ by gender of head of household separated/ never widowed married 9% 7%

56% 76% 0%

43% 1% 23% Married/ Male Female cohabing 84% Primary or higher Pre-primary Never aended school

Sample: Smallholder households, n53,019 Sample: Smallholder households, n53,019

same dwelling unit, eat together from the same pot, and share most household expenses. Visiting relatives and domestic 15 workersFor the purposes are not considered of this survey, members “household” of a household is defined and, as a therefore, group of relatedare not orbe unrelated included inpersons this study. who Note,live together however, in that the domestic servants and other workers living and eating in the same household should be included as household members.

12 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 8. Marital status by gender of FIGURE 9. Number of people in head of household household

3% One 6% 56% Two 8% 90% Three 12% 31% Four 15% Five 16% 7% 13% Six 11% Male head of householdFemale head of household Divorced/separated/widowed Seven 10% Married/cohabing Eight or more 22% Single/never married

Sample: Smallholder households, n53,019 Sample: Smallholder households, n53,019

- Smallholder farmers’ outlook on life cause a majority of households fall be- and their agricultural work is in stark lowA large the householdpoverty line, size meaning is significant there isbe a contrast to their household circum- strain on minimal resources16 stances. Despite limited means and and 11). Smallholder farming house- economic vulnerability, almost all re- holds live without much of a (figurescushion 10to port they work hard to do their best to absorb additional expenses. cope (98 percent) and are looking for opportunities to improve their current Almost half of all smallholder households situation (97 percent) (Figure 13). This typically do not have enough money for suggests a proactive rather than a reac- food, and 40 percent have money only tive approach to their lives. In fact, the for food and clothes (Figure 12). This is majority reject the notion that it is not mainly because smallholder households wise to plan too far ahead because their farm for subsistence, and the little mon- luck might factor more heavily into fu- ey earned from selling what they grow ture outcomes than their own planning goes to buying food that is not available (50 percent). through their farming activities, as well as other basic needs and, in some cases, There is also lack of impulsivity. Fewer luxuries. than two in 10 (16 percent) self-identify

FIGURE 10. Poverty status of household FIGURE 11. Extreme poverty status of household

Above Above Extreme poor: poverty line: poverty line: <$1.25/day >$2.50/day >$2.50/day 34% 28% 28%

Below poverty line: Poor: <$2.50/day 72% $1.25-$2.50/day 39%

Sample: Smallholder households, n53,019 Sample: Smallholder households, n53,019

16 From Progress out of Poverty Index 2013, Grameen Foundation, http://www.progressoutofpoverty.org/.

13 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 12. Household’s current financial situation (self-assessed)

44% 40%

11% 4% 1%

Not enough money for Enough money for food Enough money for food Aﬀord to buy certain Don’t know/refused food and clothes only and clothes and can save expensive goods a bit, but not enough to buy expensive goods

Sample: Smallholder households, n53,019 with the statement “I am impulsive,” and ary law (64 percent), with the remain- 15 percent feel they say things without thinking them through. Instead, we see Those in the latter group makes good a deliberate, thoughtful population that der by certificate or lease (18 percent).- carefully considers their lives, actions, cially loans, because they have docu- and livelihoods. mentationcandidates of for assets financial with services, which to espe borrow against. Of the two-thirds who own Farm as income, a source for farms under customary law, most prob- subsistence, sale, and trade of ownership, which means maintaining Smallholder farmers in Côte d’Ivoire ownershipably do not ofhave their official property documentation is possibly typically own their plots of land, indi- at risk. vidually, either through a lease or cer- Owned land tends to be in medium 4). The majority own through custom- to large plots.17 Just over a quarter of tificate, or under customary law (Table

FIGURE 13. Do you agree or disagree with the following statements?

I always work hard to be the best at what I can do 98% 1% 1%

I always look for opportunies for improving 97% 2% 1% my situaon I have many aspiraons 93% 2% 5%

I do things a er giving them much thought 91% 9% 0% It is not always wise for me to plan too far ahead because many things turn out to be a maer of 38% 50% 12% good or bad fortune I am impulsive 16% 76% 8%

I say things before I think them through 15% 81% 4%

Agree Disagree Don’t know

Sample: Smallholder farmers, n52,949

- timates of land size usually leads to errors. Carletto, Gourlay, Winters. World Bank. “From Guesstimates to GPSstimates,” 17 JulyLand 2013.size is ahttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/07/30/000158349 difficult to measure accurately. Many recent examinations of land measurement say that using farmer es_ 20130730084245/Rendered/PDF/WPS6550.pdf perceive to be their own land sizes to better understand their way of thinking about and processing agricultural and household decision-making. . The goal in this body of work was to rely specifically on what farmers

14 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 4. What is the form of ownership of your land? Total Fôret Est Fôret Savane (%) (%) Ouest (%) (%) Individual ownership with lease or 8 5 6 13 certificate Individual ownership under customary law 64 70 61 67 Communal (resources are shared) 2 2 1 2 State ownership 0 0 0 0 Plant-sharing/Sharecropping 4 8 4 1 Individual property with certificate 10 9 15 1 Other 11 5 12 13 Don’t know 2 1 1 3

Sample: Smallholder farmers who participate in agricultural activities by regional zone, n55,354

owned farms are more than 4 hectares lies in Côte d’Ivoire typically grow both (approximately 9.88 acres), and a third food and staple crops and cash crops are between 2 and 4 hectares. Rented (89 percent); the types of crops in each land skews slightly smaller; more than category vary. Very few grow only one a quarter of these plots are less than a or the other; 8 percent grow only sta- hectare in size, yet another quarter of ple crops, and 7 percent grow only cash rented plots are more than 4 hectares crops. (Figure 14). The mean size of owned land (81 percent) is 3.97 hectares and Maize, cassava, and rice are the most that of rented land (35 percent) is commonly grown staple crops, followed 3.92 hectares. by okra, eggplant, plantains, tomatoes, and onions (Figure 15). About half of Diversity and abundance of crop type best characterize what smallholder a cash crop because they are processed farmers in Côte d’Ivoire typically grow. forsmallholders sale) and growcocoa, chilies and a(classified third grow as The vast majority of smallholder fami- peanuts (Figure 16).

FIGURE 14. How many hectares (ha) of agricultural land do you own?

above 4 ha 26% 27%

3 to 4 ha 12% 15%

2 to 3 ha 16% 17%

1 to 2 ha 18% 21%

0 to 1 ha 28% 20%

Rented (1,909) Owned (n=4,246)

15 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 15. Which of the following crops do you grow? Food and staple crops

Maize 56% Cassava 55% Rice 52% Okra 48% Brinjal Eggplant 46% Plantain 35% Tomatoes 32% Onions 10% Bananas 9% Pineapple 8% Mango 8% Orange 7% Papaya 6% Yams 6% Guava 4% Millet 4% Cabbage 3% Cucumber 2% Salad 1%

Sample: Smallholder farmers who participate in agricultural activities, n55,354

There are some gender variations in Cocoa, a key crop for this country, is also crops grown. For instance, men are regional. Cocoa is grown the least in more likely to grow cocoa, while wom- the Savane zone, with only 4 percent of en put their time into chilies. Sixty per- smallholder farmers growing this crop, cent of male farmers grow cocoa, versus and it is grown the most in Fôret Ouest only 28 percent of female smallholder (66 percent of farmers). farmers. In contrast, only 38 percent of male farmers grow chilies as opposed Most households use their crops in to 62 percent of female smallholder multiple ways, including consumption. farmers. Consuming crops rates the highest of the three main uses (consuming, selling, or trading with other individuals/ families), for food and staple crops, and FIGURE 16. Which of the following crops do you grow? Cash crops and 18). even among some cash crops (figures 17 Chilies 49% Despite the fact that the number and type of crops grown are both diverse Cocoa 46% and abundant, most smallholders de- Peanut 33% pend on rice for consumption and Cashew nut 19% on cocoa for income. This heavy de- Coﬀee 19% pendence exposes them to great risk Hevea 11% should these two crops be affected by Palm oil 9% households will be impacted by the Coon 5% lossa negative of one particularnatural or cropfinancial because event— they Coconut 3% don’t have others they can depend on Sugar cane 1% Sesame 1% (figuresHouseholds 19, 20,also and engage 21). in some combi- Sample: Smallholder farmers who participate in agricul- nation of selling, consuming, or trading tural activities, n55,354 (barter trade) their crops, with selling

16 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 17. Food and stable crop by percentage of consumption, sale, or trade

Rice (n=2,562) 95% 7% 47% Millet (n=277) 91% 1% 36% Cassava (n=2,806) 89% 5% 62% Plantain (n=1,912) 87% 4% 53% Maize (n=3,007) 85% 4% 54% Brinjal Eggplant 84% (n=2,356) 3% 54% Guava (n=165) 84% 0% 39% Okra (n=2,435) 83% 2% 49% 83% Bananas (n=433) 41% 1% Cucumber (n=99) 83% 1% 67% Pineapple (n=365) 82% 1% 34% Papaya (n=268) 82% 1% 34% Orange (n=296) 81% 2% 34% 81% Tomatoes (n=1,786) 2% 50% Mango (n=336) 80% 1% 35% 74% Cabbage (n=164) 64% 1% 74% Onions (n=573) 46% 2% Yams (n=329) 71% 2% 35% 68% Salad (n=64) 2% 69%

Consume Sell Trade

Sample: Smallholder farmers, Multiple responses allowed (% of people who grow each crop)

and consuming being the most common versus consumption, are static across combination: gender.

■■ 84 percent of smallholders grow Cocoa and rice are of greater importance crops to sell and consume to smallholder farmers than other crops. Cocoa stands out as the crop that is most ■■ 8 percent grow crops to sell, trade, important to smallholders (Figure 22) and consume because it is a revenue source (Table 5). ■■ 8 percent grow crops to trade and Rice is also important because it is the consume most consumed crop (Table 5).

■■ 8 percent of smallholders grow crops There are regional variations in crops to trade and sell grown. Farmers in the Savane zone mostly grow maize, cashew nuts, rice, The tendencies to grow and sell, as well and peanuts. Those in the Fôret Ouest as the types of crops grown for sale region grow cocoa, cassava, rice, and

17 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 18. Cash-crop type by percent- FIGURE 19. Number of crops grown age of consumption, sale, or trade for consumption

Chilies 82% 49% (n=2,523) 2% More than 1, Peanut 80% 77% 70% (n=1,752) 3%

Coconut 78% 52% (n=131) 1%

78% Sesame (n=23) 79% 0% Do not consume 1 crop, Sugar cane 75% what they grow, 31% 17% (n=66) 3% 5% Palm oil 67% 64% Sample: Smallholder farmers who grow crops, n55,202 (n=464) 5%

Cocoa 3% 91% (n=2,178) 3%

3% Hevea (n=591) 62% any kind (Figure 23). Chicken (broilers) 2% are the most commonly reared livestock, Cashew nut 2% 87% followed by sheep and goats (Table 6). (n=1,234) 2%

2% Livestock rearing is also regional. Chick- Coﬀee (n=800) 87% 1% en (broilers), goats (meat), cattle (beef), 1% and sheep are mostly reared in the Sa- Coon (n=301) 95% 0% vane region, while, in the Fôret Ouest and Fôret Est regions, chicken (broilers Consume Sell Trade and layers), sheep, and goat (meat) are Sample: Smallholder farmers, Multiple responses allowed reared the most. (% of people who grow each crop) Like crops, livestock are reared for both okra, while those in the Fôret Est region consumption and sale. Twenty-two per- grow mostly cassava, cocoa, maize, and cent of smallholder households rear chilies. and consume livestock, nearly as many (18 percent) rear livestock for income. Three in 10 (31 percent) smallholder While it is common for any one type of farmers in Côte d’Ivoire raise livestock of livestock to serve both purposes, some

FIGURE 20. Number of crops grown FIGURE 21. Number of crops grown for selling for trading

More than 1, 1 crop 75% 3% More than 1 5%

Do not trade what Do not sell they grow, 1 crop what they grow, 91% 20% 5%

Sample: Smallholder farmers who grow crops, n55,202 Sample: Smallholder farmers who grow crops, n55,202

18 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 22. Which of the following Women do not have a significant crops that you grow is the most import- role in decision-making ant to you and your family? A great majority of smallholder house- Cocoa 36% holds in Côte d’Ivoire are headed Rice 14% by men (Figure 3), and men control agricultural decisions. In every ag- Cashew Nut 9% ricultural decision-making category, Cassava 9% decisions are likely made by the husband or boyfriend alone (Figure 25). Maize 5% Women are likely to have input on any Peanut 4% given agricultural decision less than 20 Hevea 3% percent of the time.

Coﬀee 2% Dedicated to agriculture and

Sample: Smallholder farmers participating in agriculture looking to expand their activities who grow at least one crop, n55,202 Farming experience and a tenure of farming are fundamental features of smallholder households in Côte d’Ivoire. types are used more for one purpose Close to two-thirds (62 percent) of smallholder farmers have been farming goats are commonly kept for consump- for more than 10 years (Figure 26). Rela- tionthan and another. sale. Sheep For instance, and cattle fish can and be tively few (2 percent) have been farming close to two times as likely to be reared less than two years and 16 percent for for income (sale) than consumption. And chicken, duck, and pigeon are much more likely to be reared for consump- twoIn terms to five of years.the length of time smallhold- tion (Figure 24). ers have been farming, the youngest

TABLE 5. Which of the following crops that you grow do you consume the most/get the most money from selling? Consumption (n54,882)* Selling (n54,948) Rice 37 6 Maize 15 3 Cassava 14 11 Plantain 6 1 Peanut 3 6 Brinjal/Eggplant 2 2 Cocoa 0 40 Cashew nut 0 13 Hevea 0 3 Coffee 0 3 Cotton 0 2

Sample: Smallholder farmers who grow crops (% of smallholder farmers participating in agriculture who grow and consume/sell at least one crop) *Responses ranked by consumption and later by sales Table shows the frequently mentioned crops

19 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 23. Do you have any livestock, TABLE 6. Which of the following do herds, other farm animals, or poultry? you rear? Chickens (broilers) 63% Sheep 33% Yes Goats (meat) 33% 31% Chickens (layers) 20% Cattle (beef) 16% Goats (dairy) 4% No 69% Duck 3% Cattle (dairy) 3% Pigeon 2% Sample: Smallholder farmers who participate in agricultural activities, n55,354 Fish (number of ponds) 1% Bees (number of hives or 0% boxes) generation (29 years old and under) is Sample: Smallholder farmers who have any live- newest to farming. Relatively few indi- stock, herds, other farm animals or poultry, n51,623 viduals adopted farming as a livelihood Multiple responses allowed later in life (Figure 27). Consistent across households, farming emerges as a life choice and as part of an identity, even if this is a default choice of smallholder farmers intend to keep due to a lack of other options. This offers workingfinancial incircumstances. agriculture (Figure Ninety 28). percent This insights into the motivations of this pop- intent is consistent across tenure in ulation, given its generally challenging farming, although slightly fewer of the

FIGURE 24. Which of the following do you rear and get income/consume?

Fish (number of ponds) (n=15) 80% 83% Sheep (n=551) 39% 67% Chickens –layers (n=351) 87% 65% Goats –meat (n=517) 51% 61% Chickens –broilers (n=1,000) 92% 58% Cale –beef (n=296) 34% 55% Cale –dairy (n=58) 21% 45% Goats –dairy (n=67) 39% 42% Duck (n=59) 64% 37% Pigeon (n=29) 61% 16%

Rear to consume Rear to get income

Sample: Smallholder farmers who have any livestock, herds, other farm animals or poultry, n51,623 Multiple responses allowed

20 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 25. Generally, who makes decisions on the following agricultural activities?

When to harvest 17% 9% 65% 3% 2%

What to plant 17% 8% 64% 3% 4%

Quanty of crops to sell 16% 9% 65% 3% 3% Both

When and where to sell crops 16% 9% 66% 3% 3% Wife/girlfriend Husband/boyfriend Purchase of farm inputs 13% 7% 65% 3% 9% Another family member Not applicable/Don't know Where to borrow money 13% 8% 63% 2% 10%

When to sell livestock 6% 4% 38% 1% 47%

Quanty of livestock to sell 6% 4% 38% 1% 48%

Sample: Smallholder households, n53,019

newest smallholder farmers (farming for - tinue farming (Figure 29). Regardless of FIGURE 26. How many years have you five years or less) believe they will con been farming? - ication to agriculture is high (Figure 30). 2% Ninetythe household’s percent of financial those who situation, self-report ded Less than two that they “don’t have enough money for 16% years food” (even though it might be the farm Two to ﬁve years that feeds the family) want to continue Six to 10 years to work in agriculture. 20% 62% More than 10 years Agriculture is not only what feeds Don’t know the household, it is a livelihood that smallholders enjoy. Nearly all agree Sample: Smallholder farmers who participate in house- with the statement, “I enjoy agriculture” hold’s agricultural activities, n52,751 (96 percent). Large majorities of smallholders want to expand their agricultural activities (94 percent), and

FIGURE 27. How many years have you been farming? By age of respondent

28% 55% 76% 32% 84% 88% 25% 39% 20% 15% 8% 7% 9% 7% 3% Aged 15-29 Aged 30-39 Aged 40-49 Aged 50-59 Aged 60+ (n=556) (n=794) (n=646) (n=403) (n=352) Five or less years Six to 10 years More than 10 years

Sample: Smallholder farmers (% of smallholder farmers who participate in household’s agricultural activities and in each age category)

21 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 28. Do you intend to keep the work, and want to expand their working in agriculture? agricultural activities. At the same time, Don’t know more than half would take full-time No employment if available (Figure 31). 6% 4% They might not want to leave agriculture, but they recognize the opportunities and tradeoffs that come with other ways of making a living. The youngest generation of smallholder Yes 90% households in Côte d’Ivoire (ages 15–29) shows even more interest in full- Sample: Smallholder farmers who participate in house- time employment outside of farming. hold’s agricultural activities, n52,751 Sixty-one percent would take full-time employment if offered (Figure 32). Just under four in 10 feel they would not want to do any other type of work but what they have achieved with their farming. agriculturalmany (51 percent)activities are (Figure satisfied 31). Four with Smallholder farmers want to remain in they want to leave their family. However, farming, but the stark realities of their lessin five than think half of agriculturewant their as children the legacy to limited resources and agriculture’s continue in agriculture (46 percent) abundant risks force some of them to (Figure 31). think about life outside of farming, even if they have no other skills. Farming realities introduce a three-way conflict for Côte d’Ivoire’s smallholder farming smallholders: dedication and population is older (above 40), and its commitment meet high-risk, current dynamics may pose challenges difficult financial circumstances, for the future of the agricultural sector. prompting openness to alternative The relatively small number of young livelihoods. farmers (11 percent), coupled with the fact that most Ivoirian smallholder Smallholders have mixed feelings about farmers do not have a primary school their future aspirations. They profess a education, could adversely affect the strong commitment to agriculture, enjoy success of the next generation of farmers.

FIGURE 29. Do you intend to keep working in agriculture? By number of years in farming

3% 4% 8% 6% 6% 4% 10% 14%

92% 92% 81% 81%

More than 10 years Six to 10 years Two to ﬁve years Less than two years (n=1,670) (n=561) (n=432) (n=61) Yes No Don't Know

Sample: Smallholder farmers who participate in household’s agricultural activities

22 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 30. Do you intend to keep working in agriculture? By household’s current financial situation (self-assessed)

90% 90% 88% 92%

We have enough money for We don't have enough We have enough money for food We can aﬀord to buy food and clothes only money for food and clothes and can save a bit, but certain expensive goods (n=1,158) (n=1,129) not enough to buy expensive goods (n=119) (n=330) Yes, intend to connue working in farming

Sample: Smallholder farmers who participate in household’s agricultural activities

FIGURE 31. Do you agree or disagree with the following statements?

I enjoy agriculture 96% 3% 0%

I want to expand my agricultural acvies by 95% 3% 1% looking at new products and/or markets I regard my agricultural acvies as the legacy I 81% 12% 7% want to leave for my family I just work to make ends meet 55% 39% 5%

I would take full me employment if I were oﬀered a job 52% 37% 12% I am sasﬁed with what my agricultural acvies 51% 45% 4% have achieved I want my children to connue in agriculture 46% 40% 14%

I would not want to do any other work 42% 52% 6%

Agree Disagree Don't Know

Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751

FIGURE 32. Do you agree or disagree with the following statements?

I would take full-me employment if I were 61% 27% 12% oﬀered a job

I am sasﬁed with what my agricultural acvies 49% 45% 6% have achieved

I would not want to do any other kind of work 36% 59% 5%

Agree Disagree Don’t know

Sample: Smallholder farmers aged 15-29 who participate in household’s agricultural activities, n5556

23 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

2. SMALLHOLDER HOUSEHOLD DYNAMICS IN CÔTE D’IVOIRE: INCOME AND EXPENSES Farming activities determine Smallholders in Côte d’Ivoire consistent- household income ly shared that growing and selling crops is their most important, most reliable, More than eight in 10 smallholder farm- and most enjoyable income-generating ers in Côte d’Ivoire say that farming is activity (Table 7). In comparing these their primary job (i.e., where they spend three perspectives, data show that a the most of their time) (Figure 33). large portion of smallholders equate the Looking more closely at their sources most important income source with the of income, a vast majority of smallhold- one they like getting the most and with er households (90 percent) report they the one that is the most reliable. Very generate their incomes from growing and selling crops. Thirteen percent gen- of income. erate income from rearing and selling few report any other significant sources livestock (Figure 34). Besides crop production, very few smallholder households earn income from Relatively few smallholder households other agricultural activities or sources say they undertake other activities to sup- (Figure 35). Five percent process crops plement their incomes. Small percentages from other farmers into other products of smallholder households in Côte d’Ivo- ire generate additional income by managing their own retail or manufacturing forApart sale; from other what activities smallholders are insignificant. consider business, earning wages from occasional to be income-generating sources, there jobs, or providing services of some kind. can be other streams of income into a Less than one in 10 smallholders in Côte household. For instance, 8 percent say d’Ivoire receive remittances from family they generate income from family or and friends (Figure 34). friends giving them money (Figure 34). However, a greater number, 14 percent, FIGURE 33. What is your primary job? say they get money from remittances, including family and friends (Figure 36). 1% 0% The latter can include one-off contribu- 1% tions and help in time of need, versus a 11% 2% steady stream contributing to monthly income. Only 1 percent of smallholder households receive payments from the gov- 84% ernment (e.g., pension, disability, welfare) (Figure 36). This low level of government transfers to smallholders may indicate that most of them have not had formal employment and would not Farmer have been contributing to the Côte d’Ivo- Laborer ire National Social Security Fund (Caisse Business owner Nationale de Prévoyance Sociale). Of the Professional (e.g., doctor, teacher) Shop owner few smallholders who do receive these Other payments, most receive it through direct Sample: Smallholder farmers, n55,706 deposit to a bank account (Figure 37).

24 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 34. Do you generate income from any of the following sources?

Growing something and selling it, such as crops, fruits, or vegetables 90% Rearing livestock, poultry, ﬁsh, or bees and selling it or its by products 13%

Geng money from family or friends 8%

Earning wages from occasional job 8%

Earning wages or salary from 6% regular job

Running own business in retail or 5% manufacturing

Running own business by providing 1% services Geng a grant, pension, or subsidy of some sort 1%

Other 8%

Sample: Smallholder farmers, n55,706 Multiple responses allowed

Self-reported expenses are often earning under $2.50 a day, with 34 percent within income parameters, but living in extreme poverty, earning under smallholders still struggle to get by. asked how much money they need to More than 70 percent of smallholder survive,$1.25 a day16 percent(figures of10 households and 11). When said households live below the poverty line, their expenses are 25,000 CFA ($42)

TABLE 7. Which of the following income sources is. . . ? Most Like getting Most important the most reliable Income sources (%) (%) (%) Growing something and selling it, such as 84 84 82 crops, fruits, or vegetables Running own business in retail or 3 3 3 manufacturing (selling or making goods) Earning wages or salary from regular job 3 3 3 Getting money from family or friends 2 2 2 Earning wages from occasional job 2 1 2 Rearing livestock, poultry, fish, or bees 1 2 2 and selling Running own business by providing services 1 0 0 Getting a grant, pension, or subsidy of 0 0 0 some sort Other 4 4 4 Don’t know 1 1 2

Sample: Smallholder farmers, n55,706 (highlighted rows are agricultural-related income streams)

25 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 35. Are there any other ways that you get income?

5% 2% 2% 1%

Buy/get agricultural Rent land to farmers Buy/get agricultural Provide a service to products from farmers and for farming purposes products from farmers/ farmers or processors of process it/change it to processors and sell it farming products another form (e.g., renng ploughs, (e.g., maize to ﬂour) tractors,other equipment) Sample: Smallholder farmers, n55,706 Multiple responses allowed or less each month. Thirty-two percent said they need between 25,001 and smallholder households in Côte d’Ivoire 50,000 CFA ($42 and $84), and 19 per- usuallyflow problem, surpasses household expenses, income leaving among a cent of smallholder households require majority of farming households with 100,001 CFA ($168) or more per month a slight surplus from month to month. to manage their households (Figure 38). This phenomenon is not the same across Half of smallholder households need countries. For example, the National Sur- less than $100 a month to survive, which vey of Smallholder Households in Mo- means either they are focused on acquir- zambique shows a different tendency, ing only basic needs or it is much less ex- where smallholder families barely break pensive to live in rural areas where you even each month and typically have to grow what you eat and do not pay rent. spend more than what they earn.18 Despite the seasonality of crops some- Those who have lower monthly needs times leading to an impending cash tend to bring in a surplus. They are

FIGURE 36. Do you receive income FIGURE 37. How do you usually get this from any of the following? government payment?

Direct deposit to a bank Remiances/monetary 71% or other help from 14% account family or friends Personal pick-up in cash 28% Deposit to your mobile Occasional sale of my 8% money account belongings 11% Courier delivery 0% Occasional paid assignments, labor for 99%% Digital card 0% hire Deposit to another person’s 0% Government beneﬁts mobile money account (pension, disability, 1% Western Union/MoneyGram 0% welfare, etc.) Personal pick-up in check 0% Other donor/NGO 1% Deposit to an agent’s beneﬁts 0% mobile money account

Sample: Smallholder farmers, n55,706 Sample: Smallholder farmers who receive income from Multiple responses allowed government benefits, n540 Multiple responses allowed

18 CGAP National Surveys & Segmentation of Smallholder Households in Mozambique, 2015-2016; http://www.cgap.org/ publications/national-survey-segmentation-smallholder-households-mozambique.

26 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 38. What is the minimum amount your household needs to households are less likely to have a sur- survive per month (for personal plushave insufficient(45 percent) income. than Female-headed male-headed expenses)? Quintile households (50 percent).

Below 25,000 CFA 16% The greater a household’s needs, how- (US$42.00 or less) ever, the more vulnerable a household is

25,001 - 50,000 CFA to falling short each month. (US$42.00 - US$84.00) 32% Eight in 10 households that require 50,001 - 75,000 CFA 100,001 CFA or more per month fall 13% (US$84.00 - US$126.00) short, far more than among small

75,001 - 100,000 CFA holder households with lower minimum (US$126.00 - 20% monthly expenses (Figure 39). US$168.00) - Above 100,001 CFA (US$168.00 +) 19% holds are vulnerable, they report more budgetingWhile lower-income within means smallholder and a houselower Sample: Smallholder households who gave a minimum incidence of falling short. Self-reported amount for households’ survival n52,864 data also suggest that lower-income households have a little bit of extra able to cover monthly expenses, and money each month that can be redirect- still have some left over. This is especially true for those needing less than increasing this group’s attractiveness as 50,000 CFA. Here, upwards of six in 10 aed consumer into a financial segment. account, potentially usually end the month with a surplus. Data also indicate that the higher the Traditional spending framework and household size, the higher the risk that prudent spending showed that over 50 percent of house- Expenses for smallholder households holdsincome with will more be insufficient. than 10 members Analysis -

reflect a conventional spending frame FIGURE 39. What is the minimum amount your household needs to survive per month (for personal expenses) and is your income sufficient?

Below 25,000 CFA (US$42.00 or less) 17% 4% 79% n=586 25,001 - 50,000 CFA (US$42.00 - US$84.00) 33% 6% 61 % n=557 50,001 - 75,000 CFA (US$84.00 - US$126.00) 46% 2% 52 % n=359 75,001 - 100,000 CFA (US$126.00 - US$168.00) 61% 4% 34% n=846 Above 100,001 CFA (US$168.00 +) 80% 2% 18% n=403

Don’t make enough Breaking even Surplus Sample: Smallholder houdeholds who gave amount of survival & income in each category

27 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

work, where smaller expenses are more likely to spend on a weekly basis incurred more regularly than larger for groceries, while men have a greater expenses (Figure 40).19 Grocery ex- tendency to pay for transportation and penses are the most common frequent bills (Table 8). Differences also exist on expense for smallholders. Grocery ex- a rural versus urban basis, with urban penditures could potentially serve as households spending more frequently a merchant channel for expanding the on groceries and transportation. much of the population this touches. Transactions typically made with some digital financial ecosystem, given how regularity, such as paying utility bills, Apart from grocery expenses, bills (in- were not made in the recent past. Just cluding utilities, rent, or airtime) and under one-quarter of smallholder transportation costs are incurred more households had paid utility bills in the often. Other larger expenses, such as in- 90 days before the survey. In the past 90 vestments, educational expenses, home - repairs, or large purchases, are incurred ited money or withdrawn money, only infrequently, if at all. 15days, percent only as had much received as a fifth money had depos from family or friends, and a quarter had sent The presence of a traditional spending money to family members or friends framework among smallholder farmers (Figure 41). is a characterizing factor. This framework is not always present in other Smallholder households have few re- countries to the extent it is in Côte d’Ivo- sources, typically bring in limited funds, ire. In Mozambique, for example, small- and are still obligated to pay school fees holder households do not have smaller, and household costs. Yet there was not regular expenses; instead they have a high frequency of transactions in the larger, infrequent expenditures.20 three months before this national survey of smallholder households. This sug- Male and female smallholders spend at a gests that the period for paying school fees was over at the time of the survey, slightly different frequency. Women are FIGURE 40. How often do you make each of the following expenses?

Grocery purchases 66% 27% 11% Transportaon 29% 68% 3% Bills: ulity bills, airme, rent, etc. 13% 41% 46% Emergency expenses 2% 83% 25% Medicine, medical payments, hospital charges 1% 89% 10% Investment in business, farm or future 1% 64% 35% Home repairs 1% 52% 47% Educaonal expenses, school fees 1% 57% 41% Make a large purchase, such as TV, house, etc. 0% 44% 56%

At least once a weekLess o en Never Sample: Smallholder households, n55,706 Ranking by once a week

19 Expense question displayed in Figure 40 did not include agricultural inputs, such as seed and fertilizer, specifically, and 20 Ibid. instead focused on broad-based household needs. Farming was only specific as a part of investments.

28 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 8. Expenses by demographics 1st column (At least once a week ) 2nd Column (Less often ) 3rd Column ( Never) Gender Setting Expense Male (%) Female (%) Rural (%) Urban (%) Groceries 56 23 17 77 17 5 65 21 12 75 16 8 Transportation 34 61 3 24 72 2 28 68 3 52 43 3 Bills (utilities, mobile, rent, 16 43 36 9 27 58 13 34 48 18 59 19 taxes, etc.) Emergencies 2 45 18 3 29 34 2 38 26 3 33 15 Medical/health/hospital 1 82 6 1 71 16 1 77 11 2 82 5 Investments in business, farm or 1 58 26 1 36 46 1 48 35 1 47 31 future Education/school fees 0 57 37 1 32 59 1 45 48 1 59 33 Home repairs 0 57 26 1 23 60 1 42 41 0 41 38 Large purchases (TV, moto, 0 37 46 0 17 68 0 27 57 0 33 46 house, etc.)

Sample: Smallholder households, n55,706 Note: Due to rounding, percentages within demographic may not equal 100 percent. and since smallholder households are and desires. They recognize the impor- predominantly located in rural areas, they most likely live in their own hous- as saving money and preparing for un- es, do not have electricity, and therefore expectedtance of sound events, financial but despite behaviors, their suchbest may not have monthly bills to pay. efforts, some have debts and/or expenses greater than their savings and income. Risky money management practices leave few options to mitigate an Twenty-four percent of smallholders emergency. feel they always/most of the time spend less than they make. They also report they often cannot pay their bills on time, situations despite their best intentions although 44 percent report that they do Smallholders find themselves in at-risk

FIGURE 41. Did you do the following activities AT LEAST ONCE in the past 30/90 days?

66% 69%

27% 21% 24% 22% 19% 19% 16% 18% 16% 14% 11% 15%

Pay a school feeDeposit moneyReceive money Withdraw moneySend money to Pay ulity bills Buy airme top- from family family members (electricity, solar ups members or or friends lantern, water, friends TV) Past 30 days Past 90 days Sample: Smallholder farmers, n52,949

29 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 42. How often does the following apply to you?

5% 3% 2% 13% 19% 31% 44% 24% 25% 14% 26% 3% 36% 13% 29% 27% 24% 24% 17% 10% I pay my bills on me My savings are larger I have an emergency fund to I spend less money than than my debts cover for unplanned expenses I make each month

Always/most of the me Somemes Rarely Never Not applicable Sample: Smallholder farmers, n52,949 not have bills to pay (Figure 42). This The most common plans are geared to- could support the theory that they make ward coping with a major medical emer- tough decisions about what to pay and gency, followed by a death in the family. what not to pay each month to be able to Still only a third of smallholder families live within their monthly incomes. maintain an emergency plan for these events (Figure 43). Few have a plan for Few smallholders have a consistent the loss of harvest or livestock due to weather or disease, and loss of a house frequently, the amount saved is mini- - malemergency (Figure 42). fund. Their While inability saving to occursaccess sasters. Very few have plans for how to resources and invest limits the options facedue bankruptcy. to fire, floods, or other natural di available to get out of poverty.

Less than half of smallholder households explicit plans to manage a variety of plan to manage unexpected expenses. unexpectedWhile most expenses, smallholders they do do notexercise have

FIGURE 43. Does your family have a plan to manage these unexpected expenses, which might result from the following?

Major medical emergency, including illness, injury and childbirth 32%

Death in the family 28%

An extended period of me without your own food supply 19% Loss of harvest or livestock due to weather condions or a disease 9%

Loss of property due to the or burglary 9%

Loss of a house due to ﬁre, ﬂood or another natural disaster 8%

Bankruptcy/loss of a job or a business 3%

“Yes” answers Sample: Smallholder farmers, n52,949

30 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

Table 9. Saving methods, by demographics Gender (%) Education (%)* Number of savings Men Women Attended at least Did not attend methods Total (%) n51,858 n51,091 some school n51,195 school n51,754 0 16 15 17 15 16 1 48 46 50 41 52 2 26 26 25 28 24 3 8 9 6 10 6 4 3 3 2 5 1 5 1 1 1 1 1 6 0 0 0 0 0 7 0 0 0 0 0

Sample: Smallholder farmers, n52,949

The savings channels that smallhold- past year, most saved money (Table 9): ers tend to use are informal, and within general financial preparedness. In the the home (74 percent saved at home) ■■ 84 percent of smallholders report (Figure 44). Only 5 percent used a forsaving money through at least one mal banking service. mechanism There are some demographic differences ■■ 11 percent report saving through in tendency to save, most substantive- three or more mechanisms ly by education level. Close to eight in ■■ There is a small difference in savings 10 (79 percent) smallholders who did across men and women not attend any school saved through at least one channel in the past 12 months, ■■ The average number of savings chan- compared with 86 percent of smallhold- nels used among smallholders is 1.37 ers who did attend school. This disparity

FIGURE 44. In the past 12 months, have you saved money with any of the following groups?

Home 74%

Other 40%

Mobile phone 23%

Friends and family 9%

Savings and credit group 5%

Bank 4%

Cooperave 4%

Microﬁnance instuon 3%

Collector 3%

“Yes” answers Sample: Smallholder farmers, n52,949

31 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 45. In the event of an think they could get extra money to emergency, could you get extra money cope with an emergency by asking rel- through relatives sending money or by atives to send money or by selling as- selling assets? sets (Figure 45). Still, the possibility of coming up with a modest amount of Don’t know money—44,000 CFA (about US$75)21— 6% in the next month gave some pause. Just over one-quarter said it was very possible (Figure 46). More than a third said it was not possible to come up with this No Yes amount of money in a month. For those 41% 53% who said it would be possible (61 percent said “very” or “somewhat” possible), they would most likely go to family or friends for the money (42 percent) or draw it from their limited savings Sample: Smallholder farmers, n52,949 (28 percent).

Unable to cope with negative increases when considering the diversity events that affect them of savings channels: 8 percent of smallholders who did not attend school used More than seven in 10 smallholders three or more savings channels, compared - to 16 percent who did attend school, and jor events in the year before the sur- they used three or more channels. experience financial shocks and ma of smallholders experienced multiple Even with savings, options for liquidity vey (Figure 47). A significant number are limited. Just over half of smallholders most frequently reported event was a financial shocks over the past year. The

FIGURE 46. Imagine that you have an emergency and you need to pay 44,000 CFA. How possible is it that you could come up with 44,000 CFA within FIGURE 47. In the past 12 months, the next month? have you experienced any events?

Don’t know No, have not 3% experienced an event Very 24% possible Not 28% possible 36%

Yes, Somewhat experienced possible an event 33% 74% Sample: Smallholder farmers, n52,949 Sample: Smallholder farmers, n52,949

up with a nominal amount, set at 1/20th GNI per capita in local currency. Source: http://bit.ly/1QqNaHl. 21 This amount was derived from the World Bank Global Findex question series, which tests whether respondents could come

32 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 48. In the past 12 months, have you experienced any of these events?

Medical emergencies 47% Birth of a family member 30% Death of a family member 29% Housing repair or construcon 13% Wedding or marriage 9% Income lost due to the 5% Relocaon 2% Crop failure 1% Loss of wage labor 1% Loss of job 1%

Sample: Smallholder farmers, n52,949 Multiple responses allowed medical emergency, followed by a birth Ouest and Fôret Est regions. Unexpected or death in the family (Figure 48). issue across the regions (Figure 51). Smallholders feel weather poses the great- market price fluctuation was not a major est risk to their household agricultural Smallholders tend to do one of two activities (Figure 49). In the past three things when they experience loss or years, almost 70 percent had their agri- shocks: they use any savings that they cultural activities seriously affected by a have to address the problem, or they do weather-related event; pests or diseases nothing. A smaller number will take out affected just over a third (Figure 50). a loan to get them through the shock or loss. Over half (52 percent) of those who The three major regions of Côte d’Ivo- say they would do nothing, also say they ire generally face the same types of un- do not have a savings account. Further- expected events, but there are some more, the younger and less educated regional nuances. Problems with pests or farmers are, the more likely they will do diseases are more prevalent in the Fôret nothing.

FIGURE 49. What poses the most significant risk to your agricultural activities?

Weather-related event 62% Pests / diseases 17% Health 6% Accidents 6% Don’t know 4% Market prices 3% Other 1% Input prices 0% Input quality 0% Breakdown of equipment 0% Land being taken away 0% Power failure/shortage 0% Fuel prices/availability 0% Contracts not being honored 0% Crops/livestock not being sold 0% Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751

33 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 50. Have your agricultural activities been seriously affected by any of the following events in the past three years?

Weather-related event 69% Pests/diseases 37% Health-related event 14% Don’t know 12% Accident or the 11% Death in family 8% Unexpected price ﬂuctuaon in the market 3% Polical unrest or war 3% Unexpected price ﬂuctuaon of inputs 2% Market downturn / crops or livestock not able to be sold 2% Breakdown of equipment 1% Contracts not honored 0%

Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751

A health issue is most likely to prompt are affected by intermittent water sup- using savings or loans, more so than plies. Close to two in 10 (19 percent) have damage to the farm by way of pests and intermittent access to a water supply disease. In fact, farmers mostly do noth- that does not affect their agricultural ac- ing when weather causes a loss on their tivities. About one-quarter (23 percent) farm (Figure 52). report always having enough water for their agricultural activities and another Minimal water supply quarter have enough water, but also report that more water would allow them One-third of smallholder farmers indicate to expand their agricultural activities that their households’ farming activities (Figure 53).

FIGURE 51. Have your agricultural activities been seriously affected by any of the following events in the past three years?

Savane 67% 24% 5% (n=828) Fôret Ouest 68% 40% 3% (n=1,088) Fôret Est 72% 46% 3% (n=835) Total 69% 37% 3% (n=2,751)

Weather-related event Pests/diseases Unexpected market price ﬂuctuaon Sample: Smallholder farmers who participate in household’s agricultural activities in each region

34 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 52. How did you mainly cope when this happened?

42% 37% 32% 28% 29% 21% 13% 14% 11% 10%11%11% 6% 7% 6% 4% 4% 3% 2% 2% 2% 0% 1% 1%

Temporary jobTook a loan Borrowed from Sold livestock Sold assetUsed savingsDid not need to Did not do family and do anything anything friends special

Evénement climaque Pests/diseases Santé (n=348) (n=1,875) (n=997) Sample: Smallholder farmers who say their agricultural activities have been seriously affected by each category

FIGURE 53. Which of the following best describes your water situation?

I have I have I always have water I always have enough intermient intermient available, and it is water available, but if I water supply, water supply, enough for the had more water, I which does but this does needs of my would be able to grow aﬀect my not aﬀect my agricultural acvies. my agricultural agricultural agricultural acvies faster. acvies. acvies.

33% 19% 23% 25%

Sample: Smallholder farmers who participate in household’s agricultural activities, n55,354

35 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

3. RISKS AND MITIGATION

Tools for agricultural risk mitigation ■■ being able to store and sell goods. Known importance, desire for risk Monetization of crops, in the form of mitigation ■■

Smallholder farmers face numerous Maintenance of land, by being able risks common to agriculture. Weather to manage the land (e.g., weeding, ■■ planting). formation channels related to shocks like droughts and flood, pests agriculture.Knowledge, by way of having in- and diseases, lower-than-expected yields, and insufficient crop storage Preparedness: Importance are known concerns. The household and ability to save for needs depends heavily on its own agricultural output—consuming, trading, and A majority of smallholders see the im selling its crops and livestock. Risk mitigation, using whatever means at - hand, is therefore critical; smallholder portance of keeping money aside for households want to mitigate against risk key agricultural expenses, most notably even more than current circumstances seeds, fertilizer, pesticides, and equip- allow. ment (Figure 54). There is less perceived relevance in keeping money aside for Working to mitigate risks often involves fuel, irrigation, or crop storage. planning and accessing resources, such as savings mechanisms, that often may There is a large disparity between what be outside the reach of smallholders. To smallholders want to do and what they gauge their ability to mitigate risk, the actually practice when it comes to agri- National Survey of Smallholder Farmers erscultural want savings (Figure 55). In addition to in Côte d’Ivoire assessed various tools considering it important, most smallhold- ■that■ help foster: to be able to keep money aside for their agricultural expenses, particularly Preparedness, in the form of savings for those activities most closely connected FIGUREfor known 54. How agricultural important expenses. is it to keep moneywith plantingaside for crops. the following agricultural needs?

Ferlizer 90% 6% 4% Pescides 88% 8% 3% Seeds 88% 9% 3% Equipment 83% 13% 4% For future investment opportunies 78% 14% 6% Transportaon 73% 20% 6% Security 73% 14% 11% Hiring staﬀ/workers 67% 16% 15% For agricultural machinery 65% 17% 13% Crop storage a er harvest 62% 19% 17% Irrigaon 59% 19% 18% Fuel 56% 19% 20%

Very Important Somewhat Important Not important

Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751 Ranking by very important

36 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 55. Do you want to keep money aside for any of the following agricultural needs? vs. Do you currently keep money aside for any of the following agricultural needs?

92% Pescides 31% 91% Seeds 28% 90% Ferlizer 26% 87% Equipment 24% 87% For future investment opportunies 22% 84% Transportaon 27% 79% Security 13% 78% Hiring staﬀ/workers 22% 72% For agriculture machinery 8% 71% Crop storage a er harvest 14% 68% Irrigaon 9% 67% Fuel 14%

Want to keep money aside Currently keep money aside

Sample: Smallholder farmers who participate in household agricultural activities, n52,751

The desire of smallholder households save for and what they actually save for to save surpasses their actual practice, could reflect a prioritization of limited sometimes by 2 to 1. The gap between resources. They save what they can, aspirations and actual savings might when they can, and put those savings inadvertently suggest that there is where it will help them most. less saving within the population than actually occurs. Smallholders, in fact, save Smallholder households present them- for a number of purposes (Figure 55). selves as less engaged savers. But they holders set aside money for at least one also recognize the necessity of savings Overall, about half (49 percent) of small- and are doing what they can to plan mitigatefor needs risks. or anticipate unfortunate agricultural expense over the course of circumstances, both of which can help a season, whether it is for harvesting, equipment, staffing, transportation, or future investment opportunities. On av- Significant differences in number of erage, the Ivoirian smallholder farmer expenses saved for do not emerge by is saving for just under three different genderOpportunities or education for broadening (Table 10). agricultural expenses or pursuits (2.37), savings as a risk mitigation tool such as pesticides, seeds, or fertilizer. Close to one-quarter of smallholders keep money aside for five or more of these expenses (Table 10). Figure 56 combines all three dimensions of agricultural expenses: (1) importance The need for savings crosses over a num- of saving for them, (2) desire to save ber of items, and smallholders have to for them, and (3) current practices. The make potentially tough choices on which importance of the item is equivalent items need savings the most. Therefore, to the size of the bubble on a 10-point the gap between what farmers want to index, with the largest bubbles 37 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 10. Keeping aside money for agricultural expenses or pursuits, by demographics Education Gender (%) (primary or higher)(%)* Number of Did not expenses Total (%) Male Female Attended attend None 51 49 55 47 54 Net (11) 49 51 45 53 46 1 8 9 7 8 8 2 7 7 6 7 7 3 5 5 6 5 5 4 5 5 4 6 4 5 5 6 5 5 5 6 4 6 4 5 3 7 4 4 3 6 3 8 3 5 2 3 2 9 2 3 2 3 2 10 2 2 2 2 2 11 2 2 2 2 1 12 2 2 1 2 2

Sample: Smallholder farmers who participate in household agricultural activities, n52,751

FIGURE 56. Perceptual map: Importance, desires and possession of agricultural expense

100% Ferlizer Seeds Pescides Equipment 95% Investments 90% Ag machinery 85%

80% Security Transportaon 75% Staﬀ/workers 70% Crop storage 65% Fuel 60% Irrigaon aside for each item or expense 55% 50%

Percentage of respondents that want to keep money 45% 5% 10% 15%20% 25%30% 35%40% 45%50% Percentage of respondents that keep money aside for each expense Bubble size corresponds to perceived importance of expense

Sample: Smallholder farmers who participate in Agricultural activities, n52,751

38 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 57. Who do you normally purchase your agricultural and livestock inputs from?

58%

31%

8% 6% 4% 2% 1% 1%

Retailer Wholesaler Middleman/trading Cooperave Other ProcessorGovernment Do not buy inputs company agency

Sample: Smallholder farmers who participate in household’s agricultural activities, n55,354 Multiple responses allowed

perceived as the most important. risk management would have to include The percentage of respondents who a more robust value proposition to currently save is shown as a percentage Preparedness:generate more widespread Purchasing interest. inputs on the X (horizontal) axis, and the desire and contracts to keep money aside for that purpose is represented as a percentage on the Y (vertical) axis. About two-thirds of smallholders pur- Pesticides, equipment, fertilizer, and chase inputs such as seeds, fertilizers, andseeds, the takenones a together, farmer most are commonly the most or pesticides, and they buy them important and most desired expenses, largely from retailers. Small portions of smallholders buy from wholesalers, saves toward. This suggests that savings middlemen, or cooperatives (Figure 57). and layaway products or, in some cases, Transactions across all sources tend to be credit mechanisms for pesticides, equip- in cash and paid at the point of purchase smallholders.ment, and seeds could be good options (Figure 58). Few smallholders have an for bundled products that appeal to option to pay later (Figure 59). This can strain their budgets and explains their emphasis on saving for inputs. Investments and transportation earn Monetization: Storing and selling almost as much importance and goods interest as pesticides, equipment, and seed, yet similarly, smallholders also save for these. This suggests some opportunity and potential appeal in Though they may not be keeping cash financial mechanisms to put more aside for their agricultural needs, not all farmers within reach of investment and smallholder farmers are storing crops as transportation options. a form of savings either. About half of all smallholders currently store crops after Saving for other agricultural interests the harvest (Figure 60). The most com- tosuch smaller as security, majorities irrigation, of smallholders. fuel, and monly stored crop is rice (Figure 61), agricultural machinery are relevant because most smallholder farmers grow this crop. Storage focuses almost ex- Fewer find these as relatively important clusively on food or staple crops. The or want to save for them, and fewer are storage location is frequently in a currently saving for them. Expanding the granary or warehouse (49 percent) or at use of these mechanisms for proactive home (34 percent) (Figure 62). 39 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 58. How do you usually pay your suppliers of inputs?

Cash 93% Cooperave/exporter 2% Payment in-kind 0% Prepaid debit card 0% Mobile money 0% Pay cash into bank 0% Electronic funds transfer 0%

Sample: Smallholder farmers who purchase main agricultural and livestock inputs, n53,795 Multiple responses allowed

FIGURE 59. Do your suppliers give you FIGURE 60. Do you currently store any the option to pay them later or do you of your crops after the harvest? have to pay immediately?

Pay immediately 84% Yes, 46% No, Pay later 54% 16%

Sample: Smallholder farmers who pay suppliers for Sample: Smallholder farmers who participate in house- inputs, n53,681 hold’s agricultural activities, n52,751

FIGURE 61. Which crops do you normally store?

Rice 46% Crop storage also emerges as a tool Maize 32% for risk mitigation. The main reason Peanut 18% Yam 16% for storing crops is so the family Cocoa 12% can consume them later, further Chilies 11% Cashew nut 9% emphasizing the dependence on their Okra 8% agricultural outputs for subsistence Cassava 7% Brinjal/Eggplant 4% in(Figure the short 63). term Smallholders or long term. also Close use Coﬀee 3% crop storage as a form of monetization Plantain 3% Mil 3% Coon 1% to a third (31 percent) store their Onions 1% Tomato 1% crops until they get the market price Oil 1% they want, indicating their willingness Hevea 1% Bananas 1% to wait to maximize the returns from their crop. Almost one-quarter Sample: Smallholder farmers who currently store any (22 percent) of smallholder farmers crops after harvest, n51,204 Multiple responses were allowed unforeseenview crop storagehazard. explicitly as a risk mitigation strategy in the event of an

40 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 62. Where do you store your crops?

In a granary, barn, or warehouse 49%

In the home 34%

In sacks or bags 3%

Somewhere else 1%

Sample: Smallholder farmers who currently store any crops after harvest, n51,204 Multiple responses allowed

FIGURE 63. Why do you currently store any of your crops?

So we can consume it later 73%

I am waing for the price to get beer 31% Storage is a good way to minimize hazards 22% or risks So my family can have extra money a er 17% harvest For another major expense 16%

Other 11%

So I can pay for school fees 4%

Sample: Smallholder farmers who currently store any crops after harvest, n51,204 Multiple responses allowed

The reasons half of smallholders do FIGURE 64. Do you currently store any not store their crops after the harvest of your crops after the harvest? an(Figure immediate 64) are need mainly for money because after there the are no leftover crops or because there is

harvestMost smallholders (Figure 65). sell to a retailer Yes, 46% No, (Figure 66), usually in the village, 54% sometimes at a local market (Figure 67). outletsA few sellinclude their regional crops at themarkets farm or gate a neighboring(16 percent). farm. Other less common sales

A majority of smallholder farmers Sample: Smallholder farmers who participate in house- choose their market based on factors hold’s agricultural activities, n52,751

41 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 65. Why do you not currently store any of your crops?

There is no le over crops to store 47% I need to use my money a er the harvest 39% There is no available storage place nearby 12% Other 8%

Don’t know 8%

It is not a good idea to store crops 5%

Storage is too expensive 4%

Sample: Smallholder farmers who currently do not store any crops after harvest, n51,547 Multiple responses allowed

related to price. Some are motivated price is that they are taken advantage of by the perceived competitiveness of by their customers, but a few say they the prices at their market (52 percent), do not have the ability to transport their 27 percent report they do not think it crops to a better market (Figure 69). is worth transporting their crops to a holders bring their goods to sell bigger market, and a quarter do not In addition to capturing where small- have access to transport to get to other circumstances surrounding the selling marketsA majority (Table of smallholders11). think they (Figure 67), the survey also asked about

of goods. Nearly all sales happen outside commonare getting reason the currentthat smallholders market price re of a formal agreement (Figure 70), and for their goods (Figure 68). The most transactions are almost exclusively - done in cash. No other form of payment port they do not get the current market surpasses 2 percent (Figure 71).

FIGURE 66. Who do you sell your FIGURE 67. Where do you normally crops and livestock to? sell your crops and livestock?

Retailer 56% In village 83% Direct to the public 38% Wholesaler 23% Local market 32% Cooperave 15% Field edge 16% Middleman/trading company 9% Regional market 6% Other 5% At a farm to neighbor or Agribusiness company 3% 3% travelling merchant Processor 2% Other 2% Government agency 1%

Sample: Smallholder farmers who grow and sell crops, Sample: Smallholder farmers who grow and sell crops, n54,948 n54,948 Multiple responses allowed Multiple responses allowed

42 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 11. Why do you sell your crops and livestock at this location? I get the best price at this market 52 Do not produce enough to transport to bigger market 27 I do not have access to transport to other markets 25 Poor road conditions to other markets 11 Cooperative organization 8 Other reason 7 I am not aware of prices at other markets 5

Sample: Smallholder farmers who know where crops and livestock were sold, n54,917 Multiple responses allowed (%)

FIGURE 68. When you sell your crops and livestock, do you get the current market price? Less than a quarter of smallholders have made this type of investment, but a large portion of those who currently have Yes livestock view it as a form of investment 70% Land(Figure maintenance: 72). Resources

No Don’t 15% know Smallholders view their family’s agricul- 15% tural activities as a household business.

Sample: Smallholder farmers who grow and sell crops, They tend to rely primarily on them- n54,948 selves and their families for labor to needsupport it. Most their smallholdersagricultural activities. use some They sort turn first to family for help when they Monetization: Livestock as investments of labor; only 11 percent report using none (Figure 73). Of those who do use labor, labor is throughout all phases of means of risk mitigation for smallholders. the crop cycle, from planting to harvest Investing in livestock is not a significant (Figure 74). Much smaller numbers of farmers use labor for selling crops. FIGURE 69. Why do you not get the current market price?

My customers take advantage of me 48%

No access to transport to other markets 18%

I have to pay high commission rates to middlemen 12%

Too few customers 11%

Other 7%

Corrupon 2%

I do not know why 2%

Poor crop quality 0%

Sample: Smallholder farmers who do not get current market price for crops and livestock sold, n5727 Multiple responses allowed

43 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 70. Do you have a contract to sell any of your crops or livestock? for information on agricultural activities, Don't know All other sources are used much less 3% followed by cell phone/SMS (Table 12). Yes 10% often, with some getting only single digits for frequent use. Friends and family, including the No respondents’ spouses, are primary 87% sources of financial advice. Fifty-seven percent of smallholders first go to their families, and just under half confer with Sample: Smallholder farmers who grow and sell crops, n54,948 their spouses. No other source rates above 6 percent (Figure 75). Some smallholders (both men and women) membersturn to groups of an or agricultural associations association related to Knowledge gathering: Information farming, saving, or credit; a quarter are sources and a few women have access to women’s only organizations (Figure 76). Smallholders most frequently turn to This indicates an opportunity for more their families, friends, and community natural aggregation points.

FIGURE 71. How do you usually get paid for what you sell?

Cash 98% Other 2% Bank or MFI account 1% Check 1% Payment in-kind 0% Prepaid debit card 0% Mobile money 0%

Sample: Smallholder farmers who grow and sell crops, n54,948 Multiple responses allowed

FIGURE 72. Have you ever purchased livestock as an investment?

Yes, 21% 69% of those who have purchased livestock as an investment currently have livestock that are investments (n=559) No, 79%

Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751

44 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 73. For managing the land and FIGURE 74. What do you use the livestock, what types of labor do you labor for? use? Weeding 95% Land plowing and Family labor 64% preparaon 85% Daily rate for agricultural labor 43% Planng 80% Friends or neighbors labor, on a 25% reciprocity basis Harvesng 75% None 11% Selling crops 21% Hire labor for extended period 9% Livestock care 3% Other 1% Livestock sale 2%

Sample: Smallholder farmers who participate in house- Sample: Smallholder farmers who use labor for managing hold’s agricultural activities, n55,354 land and livestock n54,737 Multiple responses allowed Multiple responses allowed

TABLE 12. How often do you use each of the following sources of information for agricultural activities? More than Daily Weekly Monthly monthly (%) (%) (%) (%) Never (%) Friends or family members 43 12 10 18 13 Cell phone/SMS 27 5 2 4 55 Radio 19 11 5 8 49 Community members 17 10 7 11 45 Television 9 6 3 7 66 Religious leaders 5 12 3 5 66 Merchants 3 3 5 8 70 Cooperative 2 5 9 6 66 Input suppliers 2 4 9 10 65 Intermediaries/middlemen 1 1 2 5 77 Newspapers/magazines 1 1 2 2 88 Internet 1 1 1 1 93 School teachers 1 1 3 4 83 Government officials 0 1 4 6 75 Rural development 0 1 5 5 76 agents/NGOs Government extension 0 0 2 4 79 workers

Note: Table shows rated sources of information only Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751

45 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 75. When it comes to financial or income-related advice, who do you regularly talk to?

Friends and family 57% Spouse 46% Don’t ask for advice 14% Farmers’ associaon or cooperave 6% Lead farmer 4% Don’t have anyone to go to 3% Chief or village leader 2% Other community group 2% Other community leader 2% Don’t know who to go to 2% Middlemen 1% Savings and credit group 1% Extension agents 1% Financial instuon like a bank or microﬁnance 1%

Sample: Smallholder farmers, n52,949 Multiple responses allowed

It also identifies a need for more mechanismschannels for into bringing smallholder new, current,farming information about financial- and and relevant news about financial concentrationincome-related on topics,family and especially friends as they pertain to risk mitigation. The couldcommunities. be circulating It also suggests information that family,based friends, and community members a source of financial advice, combined with the very limited exposure to other on their own experiences, but not outside sources, suggests that there necessarily from a position of financial could be a lack of existing information expertise. FIGURE 76. Are you a member of any of the following groups or associations?

A planng, weeding, and harvesng group 26%

Cooperave/producers’ group 12%

Women’s group or associaon 12%

Saving and credit group 5%

An exporng group or associaon 2%

Trade union 1%

Other 1%

Water users’ group 1%

Farm implement group 0%

Processors’ group 0%

Livestock group 0%

Sample: Smallholder farmers who participate in household’s agricultural activities, n52,751 Multiple responses allowed

46 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

4. MOBILE PHONE TOOLS Mobile phones: A critical tool for importance transfers almost fully to a households and agriculture in Côte phone as a household tool (93 percent d’Ivoire deem it “very important”) or an agricultural tool (85 percent deem it “very Mobile phones are critical for smallhold- important”) (Figure 77). Widespread ers, and farmers recognize them as such. recognized importance means that A vast majority (86 percent) of Ivoir- smallholder farmers do not need to be ian smallholder farmers have their own convinced that a mobile phone can help mobile phone. In contrast, 69 percent of their home or their farm. They have al- 22 smallholder farmers in Uganda and 46 ready made that connection. percent of smallholder farmers in Mozam- bique have their own mobile phones.23 Limited knowledge There is widespread importance placed on owning a mobile phone among small- While mobile phones are important to holders in Côte d’Ivoire. They also recog- the household and agricultural activi- nize the relevance of mobile phones to ties, smallholders see a mobile phone’s their agricultural activities. Conversely, main purpose to be communicating in Mozambique and Uganda there is less with friends and family. Running their of a connection between mobile phones businesses and accessing a mobile mon- and meeting agricultural needs. having a mobile phone (Figure 78). The Perceived high importance, ey account are second-tier benefits to relevance to farming transactions on a mobile phone is com- parativelyperceived utilitylow. It ofis thereforeconducting imperative financial The mobile phone itself is considered to sensitize farmers to the connection a very important device (98 percent of between their mobile phones or SIM smallholders say that a mobile phone is “very” or “somewhat” important). That agricultural activities. cards and financial transactions and

FIGURE 77. Regardless of the phone you have, how important is it to your household/agricultural activities to have a mobile phone?

95% To household 4% (n=3,019) 1% 0.1%

85% To agricultural acvies 10% (n=2,949) 4% 1.0%

Very important Somewhat important Not important Don’t know

Sample: Smallholder households, n53,019; Smallholder farmers, n52,949

22 CGAP National Surveys and Segmentation of Smallholder Households in Uganda, 2015–2016; http://www.cgap.org/ publications/national-survey-and-segmentation-smallholder-households-uganda. 23 CGAP National Surveys and Segmentation of Smallholder Households in Mozambique, 2015–2016; http://www.cgap.org/ publications/national-survey-segmentation-smallholder-households-mozambique.

47 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 78. What are the benefits to having your own mobile phone or SIM card?

98%

34% 32% 23% 11%

Talking to friends and family Running your business Having a mobile money account Conducng ﬁnancial transaconsDownloading/watching/listening to music/games/videos/ringtones

Sample: Smallholder farmers who have ever used a mobile phone, n52,564 Multiple responses allowed

Widespread phone ownership, Phone ownership is inclusive of both and use genders. A vast majority of both men and women (89 percent and 80 percent, Eighty-six percent of smallholder respectively) have their own mobile farmers have used a mobile phone phone. That said, phone ownership still (Figure 79), and of those who have used incurs a 9-point gap by gender, indicating a mobile phone, an equal percentage that women are still less likely to own a (86 percent) have their own mobile phone, even though many women have phone. Most have used a basic phone, a handset. without internet capability (Figure 80). Feature and smartphone use is low Urban smallholders who used a mo- (21 and 5 percent, respectively) among bile phone are only 10 points more smallholders. likely to have a cell phone than rural smallholders (95 percent versus There can be multiple handsets in the 85 percent).24 household (Figure 81). This suggests that, with exposure, household mem- Ivoirian smallholder farmers with mo- bers recognize the device’s utility, even bile phones typically use them to make though that perceived utility does not and receive calls or to send and re- yet extend beyond a communications ceive texts (Figure 82). Among farm- tool. ers, phones are used less frequently for

FIGURE 79. Have you ever used a FIGURE 80. What type of phone have mobile phone? you used?

No 14% Basic phone 81%

Feature phone 21%

Smartphone 5%

Yes 86% Sample: Smallholder farmers who have ever used a mo- Sample: Smallholder farmers, n52,949 bile phone, n52,564

24 Urban/rural distinction information.

48 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 81. How many mobile phones do you own?

88%

11% 1% 1%

One Two ThreeFour or more

Sample: Smallholder farmers, who currently own a personal mobile phone, n52,246

- Interest in phone ownership nancial transactions were made in the pastmaking 30 days financial or more transactions. before the Most survey, fi Smallholders who have not used a mo- versus calls and texts, which were made bile phone (only 14 percent) show in the past day or week. strong interest in using a handset. Over four in 10 (45 percent) are “very inter- Data further show that men and wom- ested,” and 28 percent are “somewhat” en are equally as likely to have made 83 and 84). phone (47 percent and 48 percent, re- interested in mobile phone use (figures spectively)financial transactions and with the same with frequency. a mobile The main reason for not owning a mo- This suggests that gender is not a barri- bile phone is the perceived cost of obtaining the phone. Nearly one-half of mobile phone for those who currently smallholders (44 percent) feel they do haveer to aaccessing handset. a financial account via a not have the means to purchase a handset (Table 13). There is no other barrier

FIGURE 82. Apart from today, when was the last time you performed the following activities on the mobile phone you use?

69% Yesterday 55% In the past 7 days

34% 33% In the past 30 days 27%

20% More than 30 days ago 13% 9% 6% 4% 3% 4% 3% Never 1% 0%

Made/received calls Sent/received text messages or Made a ﬁnancial transacon photos

Sample: Smallholder farmers who currently own a phone or borrow or pay to use a mobile phone, n52,392

49 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 83. Have you ever used a FIGURE 84. How interested would you mobile phone? be in using a mobile phone?

Yes 86% Very interested 45%

Somewhat interested 28%

Not interested 22%

Don't know 6% No 14% Sample: Smallholder farmers who have never used a mobile phone, n5385

Sample: Smallholder farmers, n52,949

device in the next 12 months (Figure 85). that is as pervasive as the perceived cost More than one third of smallholders are of obtaining a handset. The limited net- “not likely” to purchase a mobile phone work and challenges of illiteracy are the in the next year. second and third barriers to ownership (each at 6 percent). This is static across demographic groups, including gender Smallholders have the necessary and age. IDs to open an account In addition to self-professed interest in - using a phone, close to one-quarter of cation documents needed to open a those who do not currently have a phone Most smallholders have the identifi say they are “very likely” to purchase the - tionfinancial had been account a common at a formal barrier financial to hav- institution; lack of qualifying identifica TABLE 13. What is the main reason (93 percent) of smallholders have birth you do not have a mobile phone? ing a financial account. Over nine in 10- I don’t have money to buy 44% certificates, and over eight in 10 (82 per phone arecent) less have common an official (57government-issued percent), and There is no network where I 6% evenidentification fewer have document. bank/MFI Voters’ passbooks cards live/work and drivers’ licenses (5 percent each) Not able to read/write 6% (Figure 86). No specific reason 5% I am not allowed to use a phone 4% by my spouse or family FIGURE 85. How likely are you to I don’t have a need to use a 4% purchase a mobile phone in the next phone 12 months?

I don’t have money to pay for 1% Very likely 24% airtime Somewhat likely 24% There is no place to charge a 1% phone Not likely 36% Other 26% Don't know 16%

Sample: Smallholder farmers who currently do not Sample: Smallholder farmers who currently do not own a own a phone but have used a phone, n5318 phone but have used a phone, n5318

50 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 86. Do you have any of the following types of an official identification?

Birth cerﬁcate 93%

Government-issued ID 82%

Voter's card 57%

Bank/MFI passbook 5%

Driver’s license 5%

Employee ID 1%

School-issued ID 1%

Passport 1%

Military ID 1%

Raon card 1%

Sample: Smallholder farmers, n55,706 Multiple responses allowed

51 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

5. FINANCIAL INCLUSION AMONG SMALLHOLDER HOUSEHOLDS IN CÔTE D’IVOIRE Nearly three in 10 smallholders (29 per- -

frombenefits, what challenges, they see or andgeneral hear percep from theircent) own are financiallyname. Some included, even have meaning more tions pertaining to banks are drawn they have a formal financial account in others, and not from their own firsthand than one formal account. Mobile money- exposure to or experiences with these accounts are the most common among institutions. smallholders (27 percent), followed dis - each).tantly by accounts at banks and nonbank Banks are highly thought of for their financial institutions (NBFIs) (5 percent ability to offer savings in a secure loca Bank exposure and use tion (63 percent) and enable someone- to save (54 percent). The benefits of banks are less associated with provid toing send individuals or receive the money ability (12 to percent). do more More than three-quarters of smallholder business (17 percent), or enabling them farmers have never been inside a bank (Figure 87). Therefore, any perceived Twenty percent of Ivoirian smallholders FIGURE 87. Have you ever been inside did not know of any benefits to having a bank? an account (Figure 88).

Yes Only 5 percent of smallholder farmers 21% have a bank account registered in their names (Figure 89), with over nine in 10- mostly using over-the-counter services- and rarely using it for business transac tions. The numbers of smallholder farm ers having a bank account remain low compared with other African countries No where this study has been conducted. 79%

Sample: Smallholder farmers, n52,949 Among the 95 percent who do not have a bank account, just over half (53 percent) think they do not have enough money FIGURE 88. What are the benefits to having a bank account?

Saving money in a secure locaon 63%

Ability to save money 54%

Ability to do more business 17% Ability to send or receive money 12% to/from family or friends Avoid lengthy wait mes for bill 9% payments Ability to send or receive payments 9%

Don’t know 20%

Sample: Smallholder farmers, n52,949 Multiple responses allowed

52 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 89. Do you personally have a bank account that is registered in your name? lack of knowledge about a bank account Yes (15 percent of women “do not know 5% what one is” versus 7 percent of men) (Figure 92). This implies that women- lag partly because they lack knowledge theirof what lives. a bank account is or does, mak ing it difficult to judge its relevance to

Bank account ownership is also greater for those 40 and older. A mere 2 percent No of youth (15–29) have a bank account, 95% but incidence tends to rise for those Sample: Smallholder farmers, n52,949 over 30 (Figure 93). NBFI use contributes little to financial inclusion

to qualify for or sustain an account. Overall, only 5 percent recall having Other barriers include lack of interest- (“I never thought about using a bank”), used an NBFI. The highest use is among unfamiliarity with the products or pro MFIs (6 percent); account ownership is cesses associated with banks (“I do not lower at 4 percent (Figure 94). Very few know how to open” an account), and have used or have an account with the- limited access (“there are no banks close tivitypost office. with limitedThe majority loans ofand transactions payments to where I live”) (Figure 90). in NBFIs include cash-in/cash-out ac (Figure 95). Men are more than twice as likely as- Informal financial services women to have a bank account (7 percent men versus 3 percent women), and bar riers to bank accounts differ slightly for men and women (Figure 91). While Overall, 23 percent of smallholders have perceived lack of money to justify an used informal financial services, with account is a barrier for men and women, ROSCAs being the most commonly used women are even more encumbered by (Figure 96). FIGURE 90. What is the main reason you do not have a bank account?

I do not have money/I do not have 53% enough money to make transacons I never thought about using a bank 11%

I do not know how to open one 11%

I do not know what it is 10%

There are no banks close to where I live 6% I do not need one, I do not make any 4% transacons Registraon fee is too high/fees for using 1% a bank account are too high Banks do not oﬀer the services I need 1%

Sample: Smallholder farmers who don’t have a bank account, n52,746

53 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 91. Do you personally have a bank account that is registered - in your name? Smallholders who use VSLAs, ROSCAs, money guards, or someone in the workplace or neighborhood, who collects and keeps saving deposits, do so on a some what irregular basis. In the week before 95% 93% 97% the survey, most of the smallholders had used a money guard (almost three in 10), 21 percent had used a ROSCA, and fewer (7 percent) had used a VSLA (Figure 97). 5% 7% 3% - TotalMen Women The main reason smallholders are not members of any informal financial ser Yes No moneyvices provider to participate. groups is Almost mostly one-third financial. They do not think they have enough Sample: Smallholder farmers, n52,949 do not trust the groups, and 18 percent FIGURE 92. What is the main reason you do not have a bank account?

I do not have money/I do not have 49% 55% enough money to make transacons 53% 12% I never thought about using a bank 10% 11% 11% I do not know how to open one 10% 11% 15% I do not know what it is 7% 10% 4% There are no banks close to where I live 8% 6% I do not need one, I do not make any 4% 3% transacons 4% Women Registraon fee is too high/fees for using 1% Men 2% a bank account are too high 1% Total 0% Banks do not oﬀer the services I need 1% 1%

Sample: Smallholder farmers who don’t have a bank account, n52,746

FIGURE 93. Do you personally have a bank account that is registered in your name?

8% 7%

5% 5%

15-2930-39 40-4950-59 60+

Percentage of those who have a bank account

Sample: Smallholder farmers, n52,949

54 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 94. Have you ever used any of the following? Do you have an account/ FIGURE 95. Uses of NBFIs membership in your name with any of the following? Deposited 4%

4% Post Oﬃce Withdraw 4% 1% Have used

Have account Received a loan 1%

6% MFI/Cooperave 4% Received payment 1%

Sample: Smallholder farmers who don’t have a bank Sample: Smallholder farmers, n52,949 account, n52,949

report they do not need the services the

three-quarters of Ivoirian smallholder Mobilegroups offer money (Figure awareness 98). and use farmers say they have heard of mobile- money (Figure 99), and a majority of those who have heard of mobile mon - ey also see benefits to having such an- Mobile money was introduced in Côte- account (94 percent) (Figure 100). This d’Ivoire in 2008. Currently five rec suggests that mobile money is a con ognized mobile money services op cept that has some initial meaning and erate in the country: Orange Almost Money, relevance to a smallholder, which is a MTN Mobile Money, Flooz,25 Celpaid, positive for building greater access to FIGUREand Qash 96. MobileHave you Banking. ever used any of the digitalfollowing? financial services.

ROSCA 15%

VSLA - Village savings and loan associaon 9%

A money guard/ someone in workplace or neighborhood that collects 3% and keeps savings deposits

Savings collectors 1%

A digital card or recharge card that is not aached 0% to a bank or MFI account

Sample: Smallholder farmers, n52,949

25 http://www.gsma.com/mobilefordevelopment/wpcontent/uploads/2014/05/MMU_Cote_dIvoire_Turnaround_Story.pdf

55 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 97. Apart from today, when was the last time you used these services or service providers for any financial activity?

7% 21% 29% Past 7 days 38% 23% Past 30 days 26% More than 30 days ago

28% 29% Stopped using 20%

22% 23% 20%

VSLA - village savings and loan ROSCA A money guard/ someone in workplace associaon (n=392) or neighborhood that collects and (n=235) keeps savings deposits (n=80)

FIGURE 98. Why do you not have a membership with any of these groups?

47%

30%

18% 17% 11% 7% 3% 2%

I don’t have any I don’t trust I don’t need I don’t know People steal Another You have an Groups require money them any service about them your reason account in too much me from them money a bank or MFI in meengs

Sample: Smallholder farmers who do not have any membership with an informal financial service provider, n52,346 Multiple responses allowed

FIGURE 99. Have you ever heard of FIGURE 100. Are there benefits to something called mobile money? having a mobile money account? No 6% No 27%

Yes 73% Yes 94%

Sample: Smallholder farmers who are aware of mobile Sample: Smallholder farmers, n52,949 money concept, n52,189

56 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 101. What are the benefits to having a mobile money account?

72% 62% 53%

21% 21% 16% 15%

Ability to save Saving money Ability to send Ability to see Avoid lengthy Ability to send Ability to do money in a secure or receive money balance wait mes for or receive more business locaon to/from family bill payments payments or friends

Sample: Smallholder farmers who believe there are benefits to having a mobile money account, n52,043 Multiple responses allowed

Smallholders see the ability to save heard of mobile money were most confi money and make person-to-person- dent that it lets users deposit/withdraw transfers (i.e., sending and receiving funds and transfer money. Some know- remittances) (Figure 101) as core ben that mobile money also enables bill-pay,- efits of mobile money. Saving money has air-time, school fees, and long-term sav particular traction as a benefit, which ings. While saving is a big perceived ben is highly desirable given smallholder efit of mobile money, there is less actual asidefarmers’ money. predisposition to wanting to recognition for the service’s ability to have savings, and their tendency to set support more advanced uses, including long-term savings (Figure 102).

Conducting business via a mobile money providersLike awareness is widespread of mobile for money, the two the account does not seem to register overall awareness of mobile money highly as a benefit, as it was one of the lowest-scoring applications for this main providers: Orange Money and- financial mechanism. MTN Mobile Money. Over four in 10 lower(44 percent) awareness are aware scores of Flooz.compara Cel- Separate from perceived benefits, the Paid and Qash Mobile Banking had money.survey alsoSmallholder explored farmersthe types who of tasks had that one thinks one can do with mobile tively, coming in at 10 percent or less (Figure 103).

FIGURE 102. To the best of your knowledge, for what types of financial activities can you use mobile money?

92% 73%

27% 24% 19% 15% 13% 3%

Deposit Person-to-person Bill pay Buy airme Pay school Save or store Make business Connect and/or money transfers fees money for a transacons bank/MFI withdrawal long-term purpose mobile wallet

Sample: Smallholder farmers who are aware of mobile money concept, n52,189 Multiple responses allowed

57 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 103. Please tell me the names of any mobile money providers that you are aware of?

Orange 99% Money

MTN Mobile 88% Money

Flooz 44%

CelPaid 10%

Qash 6%

By overall awareness and awareness of mobile money concept Sample: Smallholder farmers who are aware of mobile money, n52,189 Multiple responses allowed

Mobile money use

- The main reasons smallholders start to touse receive mobile money money from is to anothersend money person to Nearly four in 10 (36 percent) small another person, followed by the need holder farmers have used mobile money in the past for a financial activity (Figure 106). Using mobile money for (Figure 104). Access to mobile money saving (“I wanted to start saving money is mostly among men in urban areas. with a mobile money account”) or Women and those in rural areas show because “somebody requested I open relatively less use of mobile money for the account” are secondary reasons for financial services. Smallholders between starting to use mobile money. the ages of 30 and 49 are most likely to have used mobile money for a financial Perceived lack of money, followed by lack activity (Figure 105). awareness)of substantive are knowledge the primary about reasons mobile money (beyond concept and provider FIGURE 104. Have you ever used a mobile money provider for any financial (11for neverpercent) having indicate used they mobile do not money need activity? (Figure 107). One in 10 smallholders

an account, which points to the need for increased awareness and education about the benefits of mobile money. - No Advanced use among mobile money us 64% Yes 36% ers is minimal among smallholders. Less- than one in 10 are paying school fees, and even fewer are paying business ex penses, receiving payments, or getting loans (Figure 108). - Sample: Smallholder farmers, n52,949 Most of those who have used mo bile money ultimately get a registered 58 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 105. Have you ever used a mobile money provider for any financial activity?

59%

42% 40% 39% 34% 35% 31% 33% 26%

Male Female RuralUrban 15-29 30-39 40-49 50-59 60+ Yes

By gender, region and age Sample: Smallholder farmers, n52,949

There is traction for financial planning products 27account, percent considering of smallholder that farmers 36 percent re- Rental property and investment plans of adults have used mobile money and -

port having a registered account with a are common among smallholder farm mobile money provider (Figure 109). As ers, with about 19 percent claiming- with those smallholders who have used ownership of a rental property. The use mobile money, the ones in urban areas of savings plans, living wills, and insur are more likely to have a registered ance is less common (Figure 111). - mobile money account (53 percent) - compared to those in rural areas Even though only 3 percent of small (25 percent) (Figure 110). There is a holders have insurance, a majority be 16-point gap between male and female lieve their household needs insurance. smallholders when it comes to mobile Medical, life, agricultural, house, and money account ownership (33 percent property insurance are the most desired and 17 percent, respectively). (Figure 112). FIGURE 106. What is the main reason you started using mobile money?

I had to send money to another person 41%

I had to receive money from another person 28%

I wanted to start saving money with a mobile money account 9%

Somebody/a person requested I open an account 8%

A friend or family member recommended it 3%

I wanted a safe place to store my money 3%

An agent or sales person convinced me 2%

I saw posters/billboards/radio/TV adversing that convinced 2%

I saw other people using it and wanted to try by myself 1%

Sample: Smallholder farmers who have ever used mobile money, n51,124 Ranking by mostly mentioned

59 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 107. What is the main reason you have never used mobile money services?

I never have money to make transacons with this service 24%

I do not know how to open one 22%

I do not need one, I do not make any transacons 11%

There is no point-of-service/agent close to where I live 10%

I do not know what it is 6%

Using such account is diﬃcult 4%

I do not have a state ID or other required documents 4% I do not have the permission of my spouse or other family 1% member I do not trust that my money is safe on a mobile money 1% account

Sample: Smallholder farmers who have ever heard of mobile money but never used, n51,065 Ranking by mostly mentioned

FIGURE 108. Have you ever used mobile money to:

Withdraw money 82% Deposit money 74% Receive money from family members or friends 55% Pay ulity bills (electricity, solar lantern, water, TV, cable) 39% Send money to family members or friends 11% Pay a school fee 9% Pay business associated expenses, including rent, taxes, ulies 6% Receive payments from customers 4% Receive a loan 3% Pay for agricultural inputs (seeds, pescides, ferlizers) 3% Make investment (e.g., buy new equipment or expand the oﬃce) 2% Receive payments from suppliers 2% Pay employees 1% 5 Sample: Smallholder farmers who have ever used mobilePay money,supplier ns 1,1241% Multiple responses allowed

FIGURE 109. Do you have a registered account with a mobile money provider?

Yes No 27% 73%

Sample: Smallholder farmers, n52,949

60 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 110. Do you have a registered account with a mobile money provider?

53%

33% 30% 29% 28% 25% 24% 21% 17%

Male Female Rural Urban 15-29 30-39 40-49 50-59 60+ (n=1,858) (n=1,091) (n=2,510) (n=439) (n=586) (n=847) (n=680) (n=434) (n=402) Yes

By gender, region and age

FIGURE 111. Do you have any of the following?

Rental property/house 19%

An investment plan 14%

A savings plan 5%

An insurance plan 3% A living will; I know what will happen to my money if I die unexpectedly 1% A rerement plan that will help me live comfortably a er I stop working 0% None of the above 66%

Sample: Smallholder farmers, n52,949

FIGURE 112. Which of the following types of insurance do you feel your household needs the most?

64%

14% 14%

4% 3% 1% 0%

MedicalLifeAgriculture Other and don’t House/property CarUnemployment know

Sample: Smallholder farmers, n52,949

61 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

High trust in banks, mobile money, and MFIs highlights an opportunity for smallholders be trusted than informal sources. Trust is much lower for savings groups and family and friends. While some of this - is just a lack of intensity around trust Seven in 10 smallholders “fully trust”- (“somewhat trust” vs. “fully trust”), banks. Mobile money providers (44 per both of these entities have three times cent) and MFIs (42 percent) also re the distrust of formal institutions ceive relatively high levels of trust- (Figure 113). (Figure 113). This solid level of trust in financial institutions is a strong foun However, institutions are more trusted dation for building financial inclusion than their agents—the individuals who among smallholder farmers. interact with account holders regularly.- Bank agents, in particular, are twice as What’s more, formal institutions are likely to be distrusted than banks them more than two to three times as likely to selves (Figure 113). FIGURE 113. How much do you trust each of the following as financial sources?

Banks 70% 9% 6% 4% 4% 7%

Mobile money providers 44% 24% 11% 5% 2% 14%

Microﬁnance instuons 42% 26% 12% 6% 4% 11%

Mobile money agents 39% 24% 14% 6% 3% 14%

Bank agents 27% 25% 14% 9% 9% 15%

Savings groups 18% 29% 16% 11% 10% 16%

Friends, family who borrow 14% from/save money 39% 17% 11% 13% 6%

Fully trust Somewhat trust Neither trust nor distrust Somewhat distrust Fully distrust Don’t know

Sample: Smallholder farmers, n52,949

62 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

6. MARKET SEGMENTATION Tools and financial inclusion: Côte are similar to each other and how they d’Ivoire’s five unique smallholder differ from each other. household segments Truly effective segmentation analyses The segmentation technique are rooted in dimensions that lead to a common, desired, and shared goal for A collection of demographic, psycho- the population overall. This allows a seg- graphic, behavioral, and attitudinal di- mentation analysis to be more germane mensions often characterizes unique and better targeted and, ultimately, groups within an overall population, more useful to interested parties. In the more so than any single factor or vari- case of smallholder households in Côte able. The CGAP National Survey and Seg- d’Ivoire, the common shared goal is mentation of Smallholder Households in building strategies that lead to more use- Côte d’Ivoire anticipated the complexity ful, reliable, trusted, consumer-focused of smallholder households, expecting that there would be unique personas informal, including solutions connected 26 within the broader population. To that tofinancial agriculture services and solutions,those that formalmeet the or end, it sought to explore the key dimen- wide range of other household needs. sions that underlie different groups of This segmentation, therefore, is rooted smallholder households using a segmentation analysis. Segmentation is a form of statistical in defining elements that correlate with Looking beyond the initial analysis, multivariate analysis that groups people greater formal financial inclusion. this segmentation can be replicated in based on their psychographics,27 atti- follow-up or tangential studies, where tudes, expectations, or behaviors with re- spect to their own household dynamics. unique segments are included to create The groups, also referred to as clusters, the discerningsame groups indicators within the that target define audi the- that emerge from the analysis ultimately ence. For instance, an organization bring- allow a deeper understanding of how use these segments to do the following: inclusion. Classifying smallholder house- ing a financial mechanism to market can holdsvarious by characteristicskey attitudinal driveand behavioral financial ■■ Identify which segment has the most characteristics provided a better under- potential for the organization and its standing of the population and its chal- intentions.

■■ Customize the type of mechanism The segmentation process uncovered lenges to achieving financial inclusion. based on the needs of a desired various underlying structures that delin- segment. eated groups of smallholders. This clustering technique looked for homogenous ■■ Fine-tune application and go-to- groups within the population sample. It market strategy based on market did not create these groups. Rather, the readiness of the segment.

analysis of the responses given by each ■■ Optimize market positioning of the respondenttechnique identifiedto various questions, groups through exam- ining how respondents in the sample segment of the population. mechanism to capture a specific

27 “Psychographics” refers to behaviors, interests, activities, and acquisitions of a population, together with demographics and 26 Personas as profiles that create reliable and realistic representations of key audience segments for reference. other attitudinal factors.

63 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

■■ Level-set expectations for uptake assessed the individual factors that best and use based on the size of the correlate with the ownership of a formal desired segment. bank, NBFI). The four most predictable ■■ Track impact of a mechanism with- financial account (e.g., mobile money,- in the most relevant and intended count ownership among smallholders in segment. Côteand discerning d’Ivoire are measures as follows: of financial ac

Additional segmentations can be made ■■ Educational attainment of the head using data from the National Survey of of household - mentation of the population focused on ■■ Socioeconomic status or PPI of head Smallholder Households. This first seg- of household nancial inclusion among smallholder families.identifying Other the keyapproaches factors that could drive seg fi- ■■ Access to emergency funds ment the population by those living above the poverty line, or purchase of ■■ Mobile phone ownership inputs, or use of mobile money as the These measures emerged as the most dependent variable. discerning after extensive tests and mod- eling that took into consideration more Phases of the smallholder household than 30 demographic, psychographic, segmentation28 Predicting corollary values land, type of crops, value chains, inputs used)and agricultural collected by variables the survey. (e.g., The sizemodel of showed that listed variables correlated analysis involved a machine-learning the most with the tendency to have a for- algorithmThe first called phase Random of the segmentationForest29 that

FIGURE 114. Cote d’Ivoire smallholder farmersmal financial account (Figure 114). None

Educaon Socio-economic status (PPI) (n=2,949) (n=2,949) $2.50+, 60% Secondary 25% 15% 21% none or more

Below up to $2.50, primary 79%

Access to emergency funds Mobile phone ownership (n=2,949) (n=2,949) 28% Very possible 94% 33% Somewhat have at least 36% Not possible one mobile phone 3% Unsure in their household Sample: All smallholder farmers

28 The segmentation analysis is based on a three-part survey that gathered information from all aspects of the smallholder farmer—the household, all household members who contribute to the income of the household, and a randomly selected household member. The term “smallholder household” is used throughout this report to refer to the sampled population, which draws information from the head of household or a randomly selected household member. 29 See Annex 2 and http://www.statsoft.com/Textbook/Random-Forest for documentation on the Random Forest Algorithm.

64 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

- which these factors together explained - the variation within the population and of the agricultural or land-specific ques formed meaningful cleavages within it, NBFI)tions correlated with enough with relative formal financialstrength ac to carving out distinct personas. Individ- becount considered ownership part (mobile of the model. money, bank, ually, these measures are the strongest

- useful in helping to determine the like- ing that agriculture is central to small- predictors of financial inclusion and are holderAt first, households. this seemed Further perplexing, exploration know fold. Compiled together in a segmentation suggested that the relative homogene- model,lihood ofthese becoming factors partelicit ofmeaningful the financial di- ity of smallholder farming activities in visions that enable greater understanding Côte d’Ivoire and the predominance of of the population and can facilitate tar- cash-based transactions were in fact geted strategies for moving the group to manifesting itself in the model. For instance, the number of crops or tendency to sell them are not the factors that drive theUsing end the goal—being most predictive financially variables included. iden- 30 the salessmallholders relationships to have aexist financial with account. formal tifiedsegments in the of Random smallholder Forest households: exercise, contracts,In a different payments financial are ecosystem, digital, or where loans clustering analysis delineated five unique are more formal, there may be more di- ■■ Farming for Sustenance rect correlations between agricultural ■■ Battling the Elements d’Ivoire, however, correlations manifest ■■ themselvesactivities and through financial socioeconomic inclusion. In Côte elements such as educational attainment, ■■ DiversifiedOptions for andGrowth Pragmatic PPI, access to emergency funds, and mo- ■■ Strategic Agricultural Entrepreneurship bile phone ownership. Since the sample was randomly selected Forming segments and represents the population of smallholder farmers and households across The second phase of the segmentation Côte d’Ivoire, we can reasonably assert analysis was to explore the degree to

that the five segments represent natural FIGURE 115. Côte d’Ivoire smallholder household segments

Strategic Farming for Baling the Diversiﬁed Opons for agricultural sustenance elements and pragmac growth entrepreneurship

Every day, Persevered The realies would Stable, opmisc Acvely engaged in quintessenal through harsh lead them to for the future and agriculture, and farming household agricultural diversify out of have opons for growing their that struggles to challenges and something they the future within agricultural support its needs remain opmisc enjoy if given and outside of acvies toward farming the choice farming

Stands to gain Financial Embody the Could pivot into Model or “use the most from mechanisms realism and inner or out of farming case” for inspiring ﬁnancial and have enabled conﬂict that can depending on growth in other agricultural some of their characterize opportunies segments mechanisms perseverance households

30 See Annex 2 and http://www.statsoft.com/Textbook/Random-Forest for documentation on the Random Forest Algorithm.

65 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

groups in the population as a whole. We tural activities. Challenges have not also expect that similar groups exist in dampened their future aspirations or smallholder farming populations out- dissuaded them from working hard. side of Côte d’Ivoire, though the descrip- This group has persevered through tion and the incidence of each reported those challenges, sometimes with the herein is unique to Côte d’Ivoire. -

makesupport them of financial the group tools. that This best expo un- clusters or segments of smallholder derstandssure to financial the value mechanisms of having mightsome householdsBy segmentation in Côte variables d’Ivoire are only, as follows:the five form of safety nets like insurance. Farming for Sustenance. The Farm- 3. Diversified and Pragmatic. The Di- ing for Sustenance group represents 1. the largest segment in Côte d’Ivoire includes young adults who are less tenuredversified in agriculture and Pragmatic and more segment likely is the most vulnerable farming household(38 percent has a veryof smallholder low PPI, farmers).and shows It than either the Farming for Sustenance a high number of years in farming. to find opportunities to leave the sector Smallholders in this segment gener- percent of smallholder farmers). Their ally want their children to continue in experienceor Battling thehas Elements conditioned segments them (26 to agriculture, though they themselves take a more pragmatic approach to could be interested in full-time em- farming. They tend to diversify income ployment outside of agriculture. This sources and plan for the unexpect- segment truly does live off what the ed. Though they enjoy and take pride farm produces, consuming, selling, or in farming, they would also consider trading their agricultural outputs, with full-time employment outside of agri- little else to sustain their households. culture if the opportunity presented it- This is a highly vulnerable group, and self. More than a third of this segment perhaps, the one that stands to gain - has already opened accounts and is al- cultural mechanisms that can facilitate readyis financially using them,included. which This suggests population an itsthe members’ most from daily the laborfinancial and and mitigate agri opportunity to foster more advanced the range of risks they face. use of mobile money. 2. Battling the Elements. The Battling Options for Growth. The Options for the Elements segment is also a vul- Growth segment stands out because of - 4. holder farmers). A greater portion of because it is dominated by more ten- thisnerable segment group generates (16 percent income of small from its high level of financial inclusion and agriculture, and a greater portion of of smallholder farmers). Those in this these households has multiple in- groupured smallholder see their futuresfarmers in (5 farming,percent come sources than the Farming for are more empowered, derive enjoy- Sustenance group. This segment has ment from agriculture, and are keen better access to emergency funds, but to expand their agricultural activi- is challenged by unexpected life or ties. A majority of households in this farm-related events. The smallhold- segment have had their agricultural ers in this group are proactive, and activities seriously affected by an un- more of them take action to alleviate expected event, though they are posi- the losses resulting from unexpected tioned as the most enabled by savings events. They also perceive insur- when disasters do strike. They have ance as very important to agricul-

greater access to financial tools and 66 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

external support. With close to two- - - zation of these segments when we explore cluded, members of this group show moreThere deeply is greater how definition they behave, and characteri what they thatthirds smallholder of this segment households financially can put in believe, and where their interests lie. their livelihoods on a path toward greater stability and growth. - holder households behaviorally char- Strategic Agricultural Entrepre acterizeAs a whole, smallholder these five householdssegments of acrosssmall neurship. This segment is keen on Côte d’Ivoire. The Farming for Sustenance 5. building their agricultural activities, segment dominates the landscape in this with some indications of success or - holder farmers). They are more en- percent,country (38 respectively). percent), as In this Côte segment d’Ivoire, does as abledat least than progress the other(15 percent segments of small and wellin Uganda as Uganda and Mozambiqueand Mozambique, (54 and move 77- have a higher income, more education, ment in the marketplace will require tran- greater access to emergency funds, sitioning portions of this massive group - - anisms. They have been affected by zanian smallholder households are more theand realities access toof farming, more financial but have mech been evenlyinto the distributed financial fold. across Comparatively, the segments. Tan able to rely on their savings or other resources to get through tough times. They enjoy agriculture and want to variables:Table 14 shows educational each segmentattainment, and socio how expand their agricultural activities. economicit fares by status, each ofaccess the cluster-defining to emergency Most smallholders in this segment funds, mobile phone ownership, attitude - toward the future, and experience with cultural work has achieved, reporting unexpected events. theare mostnot satisfied dissatisfaction with what among their all agri the segments. They have big aspirations that include a future in agriculture. detail the dynamics of each segment, The profiles in figures 120 and 121 FIGURE 116. Côte d’Ivoire smallholder FIGURE 117. Uganda smallholder household segments household segments31

4% 15% 16% 5% 38%

4% 54%

26% 21%

16%

Farming for sustenance Baling the elements Farming for sustenance Baling the elements Diversiﬁed and pragmac Opons for growth Diversiﬁed and pragmac Opons for growth Strategic agricultural entrepreneurship Strategic agricultural entrepreneurship Sample: All smallholder farmers Sample: All smallholder farmers

http://www.cgap.org/ publications/national-survey-and-segmentation-smallholder-households-uganda. 31 CGAP National Surveys and Segmentation of Smallholder Households in Uganda, 2015–2016;

67 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 118. Mozambique smallholder FIGURE 119. Tanzania smallholder household segments32 household segments33

2% 1% 15% 18% 4%

15%

15% 22%

77% 29%

Sample: All smallholder farmers Sample: All smallholder farmers

bringing character and depth to each of Segment 1: Farming for Sustenance: them. Perhaps the best illustration of the Dependent on the farm for day-to- differences in the segments, however, is day survival

where the Farming for Sustenance The Farming for Sustenance segment the linear progression of the five groups,- includes 38 percent of smallholder erished and in need, and the Strategic households in Côte d’Ivoire. It is the Agricultural(the largest group)Entrepreneurship is the most segment impov most dominant segment of the popula- is at the opposite end showing models of tion among Ivoirian smallholders, and progress within the population. the most vulnerable.

SEGMENT SYNOPSIS

As in Mozambique, Tanzania, and Uganda, the Farming for Sustenance segment in Côte d’Ivoire represents the most vulnerable farming households, indexes very low on the PPI, shows a high number of years in farming, and its members generally want their children to continue in agriculture, though they themselves could be interested in full-time, off-farm employment.

Members of this segment truly do survive on what the farm produces, consuming, selling, or trading their agricultural outputs without much else to sustain their households.

This is a highly vulnerable group, and perhaps, the one that stands to gain the most from financial and agricultural mechanisms that can facilitate its smallholders’ daily labor and mitigate the range of risks they face.

http://www.cgap.org/ publications/national-survey-segmentation-smallholder-households-mozambique. 32 CGAP National Surveys and Segmentation of Smallholder Households in Mozambique, 2015–2016; http://www.cgap.org/ publications/national-survey-segmentation-smallholder-household tanzania 33 CGAP National Surveys and Segmentation of Smallholder Households in Tanzania, 2015–2016;

68 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire 9 0 40 45 5 48 52 64 22 13 1 0 100 42 46 12 20 80 n 5 539 Entrepreneurship Strategic Agricultural 0 23 0 16 60 1 100 40 31 22 8 0 100 47 38 15 22 78 n 5 100 Growth Options for 53 0 39 7 1 32 68 23 53 23 2 0 100 47 44 9 24 76 n 5 858 Diversified and Pragmatic 84 0 7 9 0 17 83 33 45 20 2 3 97 43 44 13 27 73 n 5 474 Elements Battling the 78 0 18 4 0 8 92 13 18 63 5 15 85 45 37 18 29 71 n 5 978 Sustenance Farming for Côte d’Ivoire smallholder household segments, by clustering criteria Côte d’Ivoire Segment n 5 2,949 Educational attainment of household head (%) Never attended school Preprimary Primary Secondary Higher education Socioeconomic status (%) Above the poverty line Below the poverty line Access to emergency funds: Can come up with 44,000 francs within the next month (%) Access to emergency possible Very Somewhat possible Not possible Don’t know Don’t Mobile phone ownership—at least one in the household (%) No Yes Attitude: The future will take care of itself (%) will take care Attitude: The future Agree Disagree Don’t know Don’t In the past 12 months, experienced unexpected events (including, but not limited to death, illness, accidents, etc.) (%) No, I didn’t Yes, I did Yes, TABLE 14. TABLE Sample: All smallholder farmers

69 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 120. Côte d’Ivoire smallholder household segment mindset

Côte d’Ivoire 38% 16% 26% 5% 15%

Strategic Mindsets Farming for Baling the Diversiﬁed Opons for agricultural (% agree) sustenance elements and pragmac growth entrepreneurship My life is determined by 91%94% 90%95% 90% my own acons I can determine what will happen 19% 18%20% 33% 20% in my life I can only focus 22%20% 19%22% 17% on the short term I live more for the present than 22%25% 24%13% 21% tomorrow What is going to happen will 54%63% 57%63% 60% happen

Sample: All smallholder farmers

Demographics: Most households in this

is age 40 or over, with a large portion percent),segment liveand inare poverty headed (56by older percent farmers. earn areover over 50. Almost60. The twoadults in 10in this(17 percent)segment $1.25 a day or less), live in rural areas (97 wantare 50–59, their andchildren a quarter to continue (26 percent) farm- Relative to other segments, the Farm- ing, which could encourage and support ing for Sustenance segment skews young farmers in Côte d’Ivoire, and sus- older. Two-thirds of the population tain the agricultural sector.

FIGURE 121. Smallholder farmers in Côte d’Ivoire, financial inclusion* by segment

66% 68%

Total: 29% 36%

24%

6% Farming for Baling the Diversiﬁed and Opons for growth Strategic agricultural sustenance elements pragmac entrepreneurship

Côte d’Ivoire: Financially included

Sample: All smallholder farmers *Financial inclusion defined as having a full-service bank, mobile money or nonbank financial institution account with access in one’s own name.

70 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 122. Age distribution (head of household)

26% 23% 26% 17% 8%

15-2930-39 40-4950-59 over 60

Farming for sustenance (n=978)

Sample: Smallholder farmers by segment

Smallholder households in this seg- other segments, fewer of the Farming ment are concentrated in the Tonkpi for Sustenance households would be interested in taking up full-time employ-

theregion Haut-Sassandra (15 percent), and the Poro Hambol regions and Marahoue regions (8 percent each), and ment if offered a job (49 percent). - holders in this segment are satis- (7Farming: percent Experienced,each). and dependent Less than half (47 percent) of small on crops for income suggestfied with a large their portion agricultural of smallholder work Most of the Farming for Sustenance householdsachievements are (Figure critical 123). of themselves This may households in Côte d’Ivoire have been and, perhaps, wanted better outcomes working in agriculture for more than than their circumstances could sup- - port. The lack of satisfaction may also tively higher level of experience in the - sector.10 years (61 percent), showing a rela lenges, educational opportunities, and limitedreflect infrastructure. frustration with health chal These households intend to continue Farming for Sustenance households are also disadvantaged by extreme andworking want into agricultureexpand their (88 agricultural percent). They also enjoy agriculture (96 percent) more years old), and lack of resources. poverty, age, (the majority are 40 or activities (93 percent). Compared to the FIGURE 123. View of success in agriculture vs. willingness to continue working in it

Total 51% 90% Farming for sustenance 47% 88% Baling the elements 57% 90% Diversiﬁed and pragmac 51% 91% Opons for growth 45% 90% Strategic ag entrepreneurship 54% 91%

Sasﬁed with agricultural achievements Plan to keep working in agriculture

Sample: All smallholder households who participate in agricultural activities, by segment

71 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

This can translate into feeling trapped is, on average, 3.2 hectares for house- by their circumstances and less capa- holds in this segment. ble of changing the course of their lives. 34 While they might intend to keep work- On average, the smallholder households ing in agriculture, and also agree they regard their agricultural activities as the each year on their land. They tend to legacy they want to leave for their fami- in this segment grow seven crops (7.4) with the statement, “I would not want sell, on average, five of the seven (4.7) tolies be (78 doing percent), any onlyother 47 type percent of work.” agree crops they grow. Maize (71 percent), rice- This suggests that their trajectory might (66 percent), cassava (59 percent), okra be more predetermined based on their areand the chilies most (58 commonly percent each), grown brinjal/egg crops. skills, abilities, and access to other in- plant (55 percent), and cocoa (52 percent) come streams rather than a true choice. Vulnerable to outside elements Farming for Sustenance households the smallholders in this segment had to depend almost exclusively on their theirNearly agricultural seven in 10activities (67 percent) seriously of ownlack incomeagricultural diversification. outputs. Considering They tend affected by weather-related events, in- sources of income, on average, these households have 2.3 income sources, with the top two income sources related pestscluding and droughts, diseases. floods, This segmentand late rains.expe- to agriculture. Ninety-seven percent Thirty-five percent were affected by of Farming for Sustenance households generate income from growing some- rienced unexpected price fluctuation in thing and selling it, such as crops, fruits, the market (3 percent), accidents and - othertheft (9segments. percent), and farmers’ health come from livestock. Crops tend to be issues (15 percent) relatively less than Thirty-seven percent were affected by thisor vegetables; segment’s 25single percent biggest generate source in more than one unexpected event in the past three years, such as a death in the single source of income reported as a of income (97 percent), with no other family. Thirty-seven percent of smallholders in When the unexpected does happen thissignificant segment contributor report only to one households. source of and agriculture activities are impacted, income, and just over a third report two Farming for Sustenance households again the most common. Thirty-two per- - cent(31 percent);have three cropsor more and income livestock sources. are ingare outweighs likely to have any nosingle specific action response that a farmer(52 percent). could take:The tendency to do noth Collective reporting from all household members active in agriculture ■■ 20 percent turned to their savings shows the average size of land owned is 3.7 hectares, and the size of land rented ■■

19 percent took a loan

up their recollection of various dynamics so as to capture full dynamics instead of relying on just one member’s knowledge 34 ofThe the land household. size measurement An aggregate comes estimate from the of householdthis measure survey was where then created multiple and members appended of the to agriculturalthe segmentation, household which offer is

based on participant responses to the individual questionnaire (asked of just one randomly selected household member). These data are weighted accordingly, and land size numbers are calculated using combined data (own land and rent land are calculated by choosing the largest land size among all members in each household); the base is the household. The data excluded those who had responded with more than 10 hectares, as these respondents were treated as outliers that are part of the sample because the listing phase otherwise deemed them qualified.

72 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

■■ 7 percent took a temporary job sighted was that they do not know how

■■ 3 percent sold livestock haveto open enough an account money (20 to percent).make transac One-- tionsthird (33with percent) the service. mention A sustained they do notef- fort to sensitize these smallholders to reportReflecting they lack would of not access be able to savings to come and up credit, close to two-thirds (63 percent) the concept of mobile money and how 35 to open an account, with appropriate with 44,000 CFA within the next month. awareness-building initiatives, could Financial attitudes lead to uptake among this segment.

The segmentation model is built on pre- Most of the Farming for Sustenance seg- - - bile phone in their homes, indicating that ingdictors a full-service of financial bank, inclusion, mobile whichmoney, are or ment (85 percent) have at least one mo NBFIdefined account here as in those their smallholdersnames. It follows, hav who do not have a phone in their then, that ordering segments from more homes,access is access not an to issue. mobile For money the 15 will percent be a vulnerable Farming for Sustenance and Battling the Elements groups to Sustenance smallholders have an NBFI Strategic Agricultural Entrepreneurship account,challenge. and Just no 1 usepercent is reported of Farming for thefor shows a somewhat linear relationship past 90 days for such an account. Less

in this segment report having or using a with financial inclusion. Extremely limited access to financial services than 1 percent of smallholder farmers

Overall, 29 percent of Ivoirian small- bank account (Table 15). - - theWhile Farming more prevalentfor Sustenance than formal segment finan has holder households are financially in cial services, one quarter (25 percent) of- accountscluded; mobileheld by money smallholders. accounts The are nism such as a savings or loan association, Farmingthe most for common Sustenance financial segment services is the moneylender,access to an informalor money financialguard. mecha

most have a mobile money account - least included, at 6 percent; of those, tenance households managed to save Close to eight in 10 of Farming for Sus (5Most percent). smallholders in the Farming for trailing the overall population of Sustenance segment have never used smallholders,money in the but past only year by (78 a small percent), gap mobile money services. The main reason

(84 percent all smallholders saved). TABLE 15. Informal and formal financial mechanisms Own mobile Access to Financially Own bank money Own NBFI informal included (%) account (%) account (%) account (%) savings (%) Farming for 6 0.28 5 1 25 Sustenance

Sample: Smallholder farmers by segment

35 Smallholders were asked if they could produce 44,000 CFA (US$75) within a month, in case of emergency.

73 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 124. View saving money through different mediums as “very important”

Financial instuon 75%

At home 60%

On a mobile phone 56%

With an informal group 35%

Sample: “Farming for sustenance” households, n5978

FIGURE 125. Perceived importance of savings channels

52% 30%

9% 4%

Save money at a Save money at home Save money on a mobile Save money with an ﬁnancial instuon phone informal group

Farming for sustenance

Sample: Smallholder farmers by segment

High perceived importance of financial Segment 2: Battling the Elements: practices Challenged, with limited resources, but persevering Though Farming for Sustenance house- - The third largest segment, the Battling nisms, formal or informal, they do have the Elements - aholds strong might sense be ofwithout the importance financial mecha of sav- cent of smallholder farming households in Côte d’Ivoire. group, These makes households up 16 perface institutions. many of the same limiting circumstances ing, investing, and using formal financial as those in the Farming for Sustenance This segment of smallholder households

- somegroup (e.g.,resources low education, for addressing high poverty, their ingfinds at ithome “very also important” earns high to saveimportance with a needs.limited They financial are aging, resources), but its butmembers have financial institution (75 percent). Sav are not as old as those in the Farming for Sustenance group. They are optimistic (60 percent) (Figure 124). Saving money and committed to farming and taking bet- alsoat a financialperceived institution as important (52 savingspercent) chan and- saving money at home (30 percent) are facing the daunting realities of farming. ter financial steps in their lives, despite nels for smallholder farmers (Figure 125). Demographics: Majorities of house- it more important to save on a mobile holds live in poverty and are concen- phoneThe Farming than tofor saveSustenance with an group informal finds - regions.trated in the Poro (10 percent), Guemon group (9 percent and 4 percent, respec (9 percent), and Tonkpi (9 percent) tively) (Figure 125). 74 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

SEGMENT SYNOPSIS

The Battling the Elements segment is also a vulnerable group, but as a group, does not face as many of the limitations faced by the Farming for Sustenance segment. The vast majority of this group generates income from agriculture, but also has multiple income sources in addition to agriculture. This segment has better access to emergency funds, but is challenged by the incidence of unexpected life or farm-related events.

The Battling the Elements segment, unlike the Farming for Sustenance group, is proactive. More of the smallholders in this group take action to alleviate the losses resulting from unexpected events. They also perceive insurance as very important to agricultural activities. Challenges have not dampened their future aspirations or dissuaded them from working hard. This group has persevered through those challenges, sometimes with the support of financial tools, which might make them the group that best under- stands the value of having some form of a financial safety net like insurance.

Battling the Elements smallholder house and newer, younger farmers. They holds represent a more mature, aging group of farmers, much like the Farming - for Sustenance segment. A majority are ingare experience, the most experiencedand 20 percent segment; have 67 percent have over 10 years of farm currently in their 60s versus those in theover Farming 40, though for Sustenance a smaller group. portion One- are beenEnjoyment farming of farmingfor six to 10 years. Households in this segment intend to third (33 percent) are under 40 years - oldThey (Figure live largely126). in the rural areas - - continue working in agriculture (90 per tocent) expand (Figure their 127). agricultural They generally activities en (96 percent), and a majority (66 per joy it (97 percent), and many would like Farmingcent) live for in Sustenance extreme poverty group. (earning $1.25 a day or less) just like those in the (96 percent). Fifty-seven percent of these Farming: Experienced farmers who en- isfarmers worth are noting satisfied that withfull-time their employfarming- joy their work, though they contemplate mentachievements also could (Figure be attractive 127). That to said,half ofit life outside of farming.

Battling the Elements households in- dothese not households want to do any(50 otherpercent) kind and of work only clude a mix of mature, tenured farmers outsideabout four of agriculture. in 10 (44 percent) say they

FIGURE 126. Age distribution 28% 26% 26% 23% 26% 17% 20% 18% 8% 7%

15-2930-39 40-4950-59 over 60

Farming for sustenance Baling the elements

Sample: Smallholder heads of household by segment

75 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 127. View of success in agriculture vs. willingness to continue working in it

Total 51% 90% Farming for sustenance 47% 88% Baling the elements 57% 90% Diversiﬁed and pragmac 51% 91% Opons for growth 59% 90% Strategic ag entrepreneurship 54% 91%

Sasﬁed with agricultural achievements Plan to keep working in agriculture

Sample: All smallholder households who participate in agricultural activities, by segment

Most Battling the Elements households growing eight crops each year on their generate income from agriculture, either the crops they grow. Commonly grown - cropsland. They include tend the to following:sell, on average, five of ment’sselling cropslargest (98reported percent) income or livestock source (27 percent). Agriculture is still this seg ■■ though they have other income sources ■■ that(88 percent,offer their crops; households 2 percent, some livestock), options Maize (78 percent) for meeting expenses. Over two-thirds ■■ Rice (71 percent)

or more sources for generating income ■■ Chilies (67 percent) (37 percent) of this group have three- tenance group), including the following: ■■ Okra (65 percent) (versus 32 percent for the Farming for Sus ■■ VulnerableBrinjal/eggplant to weather (64 percent) ■■ AnRunning occasional a retail job (8or percent)manufacturing

anNearly unexpected eight in 10event Battling in the the past Elements three ■■ businessRunning another(11 percent) type of business by households (84 percent) experienced- cluding weather, pests, illness, loss, ac- ■■ providingRemittances services from family (4 percent) and friends cidents)years in theirthat causedagricultural a loss activities of income. (in The most common of these are weather-

On (11average, percent) smallholder households in the Battling the Elements segment related events (69 percent) and pests have 3.9 hectares of owned land and (34 percent). 3.3 hectares of rented land36 and are so than the Farming for Sustenance Price fluctuations hurt this group more

36 The land size measurement comes from the household survey where multiple members of the agricultural household offer up their recollection of various dynamics so as to capture full dynamics instead of relying on just one member’s knowledge of the household. An aggregate estimate of this measure was then created and appended to the segmentation, which is

arebased calculated on participant by choosing responses the largest to the land individual size among questionnaire all members (asked in each of just household), one randomly the base selected is the household household. member). The data These data are weighted accordingly and land size numbers are calculated using combined data (own land and rent land

excluded those who had responded with more than 10 hectares, as they were treated as outliers that are part of the sample because the listing phase otherwise deemed them qualified.

76 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

segment. Five percent were impact- 3 percent have an NBFI account in ad- when it came to selling their crops, and ditionaccount to (21 their percent). mobile Among money this account group, ed by market-driven price fluctuations

a4 percentmarket downturnwere impacted during by whichchanges they in (Table 16). Only 3 percent have a bank- couldthe cost not of sell inputs. their Onlycrops 1 or percent livestock. faced nancialaccount, inclusion. and 5 percent have access to a bank service. Mobile money is driving fi Among those who were seriously affect- Battling for Elements smallholder house- ed by agricultural and household shocks, holds in Côte d’Ivoire are more equipped - for mobile money account than Farm- ing for Sustenance households. Ninety- inclose response. to one-half Others (45 turned percent) to what of small they seven percent have at least one mobile had,holder including households savings, did nothingor options specific they phone in their homes, 76 percent are - aware of mobile money, and 32 percent porary job, borrowing, selling): have tried mobile money. had to bring in more money (e.g., tem ■■ 32 percent used savings Mobile money awareness is far greater than use. The actual conversion rate, ■■ comparing awareness of mobile money - ■■ 13 percent took a loan thatto use, there is 0.42 are stillto 1, some and awarenessbarriers to entry.to ac ■■ 5 percent took a temporary job they knew Incount this ownership case, the barriers is 0.28 areto 1, more indicating about 5 percent borrowed from someone perceived eligibility and ability to access Financial attitudes mobile money providers, which suggests a need for building meaningful aware- Compared with the other groups, the - Battling the Elements segment comes uct and services available) that goes be- in with the second lowest percentage of ness (awareness of how to use the prod of just the product). There is a general - senseyond conceptualamong this awareness segment that (awareness it is im- those who are financially included. Only portant to save money on a mobile phone compared24 percent toof 29this percent segment of of smallholder smallhold householdser households overall. are financially included, informal channel. This segment has yet to(64 feel percent), that this more is a soservice than they through can af an- Some formal financial accounts

ford and that fits their needs. in this segment have a mobile money among the Battling the Elements Nearly all of the financially included Access to informal financial accounts TABLE 16. Informal and formal financial mechanisms Own mobile Access to Financially Own bank money Own NBFI informal included (%) account (%) account (%) account (%) savings (%) Farming for 6 0 5 1 25 Sustenance Battling the 24 3 21 3 23 Elements Sample: Smallholder farmers by segment

77 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 128. View saving money through different mediums as very important

Financial instuon 81%

On a mobile phone 64%

At home 62%

With an informal group 36%

Sample: “Battling the elements” households, n5474 segment is 23 percent. Use of other That investing in household-related informal saving networks or ROS- items is nearly as important as investing in farming items indicates that there could be multiple ways to appeal moneyCAs is 15guards percent, is 3 percent for village within savings this to this segment, and outreach does not segment.and loans groups is 10 percent, and of have to be limited to agriculture. Overall, 87 percent of smallhold- Saving on a mobile phone has the ers in the Battling the Elements seg- same level of importance as saving ment have saved money in the past year. Like the Farming for Sustenance group, the Battling the Elements seg- Battlingat home the (64 Elements percent and segment 62 percent, place ment thinks it is very important to respectively) (Figure 128). Those in the- - - greater importance on saving with fi save for future purchases (93 per nancial institutions (55 percent) than percent).cent), unexpected Paying school events fees (82 is peralso they do on saving at home (29 percent) cent), or even regular purchases (83 orof Battling with informal the Elements groups (4households percent) proportion find it important to invest (Figuremanaged 129).to save Eighty-seven money in the percent past important (78 percent). A significant year. This is more than those who saved in the overall population of smallhold- money in the farm (95 percent), home improvements (77 percent), and an margin. educational opportunity (which could ers (84 percent), but only by a small include school fees) (74 percent). FIGURE 129. Perceived most important savings medium

52% 55% 30% 29% 4% 4% 9% 10%

Save money at a Save money with an Save money at home Save money on a mobile ﬁnancial instuon informal group phone

Farming for sustenance Baling the elements

Sample: Smallholder farmers by segment

78 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

SEGMENT SYNOPSIS

The Diversified and Pragmatic segment reflects the realism and inner conflict that can characterize smallholder farming households. In Côte d’Ivoire they tend to be tenured in agriculture and more likely to find more opportunities to leave agriculture than either the Farming for Sustenance or Battling the Elements segments.

Their experience has conditioned them to take a more pragmatic approach to agriculture. They tend to diversify income sources and plan for the unexpected. Though they enjoy and take pride in farming, they would consider full-time employment outside of agriculture if the opportunity presented itself.

With more than a third of this segment financially included, it suggests an opportunity to foster advanced use of mobile money accounts, as these individuals already have accounts and are using them.

Segment 3: Diversified and older. This segment is relatively evenly Pragmatic: Realistic, grounded, distributed throughout the country and planning for the realities of when considering the regions, with the agricultural life highest concentration in the Marahoue The Diversified and Pragmatic segment includes 26 percent of Côte (12 percent) region. d’Ivoire smallholder households. This tends to be more mature. The major- segment is moving away from vulner- The Diversified and Pragmatic group ability and onto a path of stability. Per- haps what is most important about this ity are over 40 (67 percent), with a group is its large size, suggesting plenty plurality (29 percent) being squarely of use cases and models in the market- “middle-aged” between 40 and 49 place for emerging from vulnerability. (Figure 130). One-third (34 percent) are Its size is also important in level-setting under 40. - divided among the regions of Marahoue, ricultural mechanisms mean for a less- Tonkpi,The Diversified Lôh-djiboua, and Pragmatic Haut-Sassandra, group is entrenchedexpectations household. as to what financial and ag Guemon, Cavally, and Nawa, with all

Demographics: A majority of these of smallholders in this segment. The households live in poverty and are highestregions concentration having more of than this 5 segment percent headed by farmers who are 40 and is in Marahoue (12 percent), followed FIGURE 130. Age distribution of household head

28%29% 26%26%24% 23% 26% 17%20%17% 18%21% 8% 7% 10%

15-2930-39 40-4950-59 Over 60

Farming for sustenance Baling the elements Diversiﬁed and pragmac

Sample: Smallholder farmers by segment

79 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

It is critical to point out that full-time employment is attractive to this seg- by Tonkpi (9 percent), and Lôh-djiboua (8 percent). The majority of this group are pragmatic, and are more likely to (68 percent) lives below the poverty line ment (51 percent). Those in this group (earningFarming :less Experience, than $2.50 income, a day). and crops than those in either the Farming for Sus- tenancefind opportunities or Battling to the leave Elements agriculture seg- households are the most experienced ments. Their income streams are more Diversified and Pragmatic smallholder diverse, opening up more possibilities - that could be developed into full-time incent), farming. and 38Three percent out ofhave five been have farmbeen- employment. farming for more than 10 years (61 per Battling the Elements group, fewer peo- More sources of income ing for 10 years or less. Compared to the- ment are more tenured in agriculture, - havingple in the worked Diversified in the and sector Pragmatic for more seg householdsMore than ninegenerate in 10 (95income percent) from Di of the Battling the Elements group). versified and Pragmatic smallholder than 10 years (compared to 67 percent from livestock. Other sources of income Enjoyment of farming crops; 22 percent generate income- holds can include the following: for the Diversified and Pragmatic house of smallholder households in Côte d’Ivo- ■■ Money from family and friends ireThe intend Diversified to continue and Pragmatic working segment in agri-

■■ intentions as other segments. They en- (13Wages percent) or salary from a regular job culture (91 percent), showing similar to expand their agricultural activities ■■ Wages from occasional jobs joy it (97 percent), and many would like (12 percent)

(96 percent). Farmers in this segment ■■ (12Running percent) own business in retail or suggestingfeel only somewhat they may satisfied have wanted with theirbet- manufacturing, selling or making teragricultural outcomes achievements than their circumstances (51 percent), is their largest source of income goods, (8 percent); 2 percent say this could support (Figure 131). FIGURE 131. View of success in agriculture vs. willingness to continue working in it

Total 51% 90% Farming for sustenance 47% 88% Baling the elements 57% 90% Diversiﬁed and pragmac 51% 91% Opons for growth 45% 90% Strategic ag entrepreneurship 54% 91%

Sasﬁed with agricultural achievements Plan to keep working in agriculture

Sample: All smallholder households who participate in agricultural activities by segment

80 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

segment was more likely to have done and Pragmatic smallholders is 3.6 hect- nothing to address the problems than aresOn average,for owned land land size and for 3.2 Diversified hectares they were to have used their savings to for rented.37 They typically grow seven recover. Borrowing is more commonly a crops each year on their land. They tend method for coping among this segment, to sell, on average, four crops that they versus Farming for Sustenance or Bat- grow. Commonly grown crops include tling the Elements segments: the following: ■■ ■■ ■■ Do nothing (42 percent) ■■ Cassava (68 percent) ■■ Use savings (33 percent) - ■■ Cocoa (67 percent) Take a loan from a financial institu ■■ Maize (64 percent) ■■ tion (14 percent) ■■ Okra (63 percent) ■■ Work a temporary job (6 percent) ■■ Chilies (63 percent) ■■ Borrow from someone (4 percent)

■■ Eggplant (61 percent) FinancialSell livestock/crop attitudes (3 percent)

■■ Rice (58 percent The segmentation model itself is built

AffectedPlantain by outside (50 percent) elements from predictors of financial inclusion. More than a third (36 percent) of the- have experienced unexpected events cialDiversified inclusion and among Pragmatic this segment segment sur is- Nine in 10 smallholders in this group financially included. The level of finan- likely to have experienced two or more clusion among smallholder families in unexpected(91 percent). events However, in the they past are three less passes the overall level of financial in

This segment offers hope that farming ■■ Côte d’Ivoire (29 percent). years (40 percent). households can put their livelihoods were affected by weather alone. on a path toward greater stability. With More than two-thirds (68 percent) ■■ - - ble challenges with pests and disease. cially included, it suggests an opportuni- Two in five (41 percent) faced nota tymore to foster than amore third advanced of this segment use of mobile finan Health-related issues and accidents, money accounts because these individ- - uals already have accounts and are using them. Their audience size and digital such as fire and theft, are also a chal capabilities might help fuel expansion inlenge this forsegment this group cope with (15 these percent events and of merchant payments, digital savings, in12 a percent, number respectively).of ways. Most Smallholders notably, this and/or bill pay. Moreover, the segments’

37 The land size measurement comes from the household survey where multiple members of the agricultural household offer up their recollection of various dynamics so as to capture full dynamics instead of relying on just one member’s knowledge of the household. An aggregate estimate of this measure was then created and appended to the segmentation, which is

based on participant responses to the individual questionnaire (asked of just one randomly selected household member). These data are weighted accordingly, and land size numbers are calculated using combined data (own land and rent land are calculated by choosing the largest land size among all members in each household); the base is the household. The data excluded those who had responded with more than 10 hectares; they were treated as outliers that are part of the sample because the listing phase otherwise deemed them qualified.

81 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 17. Informal and formal financial mechanisms Own Access to Financially bank Own mobile Own NBFI informal included account money account savings (%) (%) account (%) (%) Groups (%) Farming for 6 0 5 1 25 Sustenance Battling the 24 3 21 3 23 Elements Diversified 36 5 34 6 24 and Pragmatic Sample: Smallholder farmers by segment use of mobile money accounts could set moneylender, merry-go-round, VSLA, or examples for other farmers. Therefore, the collective reach of efforts to engage these smallholders in more advanced savings collector (Table 17). mobile money use might extend far be- saved money for something in the past yond the people within the segment. More than eight in 10 (87 percent) have have two or more savings channels. A pragmatic approach to finances 12 months; 43 percent of the segment - - penses)A majority is very believe important. saving forSaving specific to ment, all households have access to a copepurposes with (e.g.,a death school in fees,the family regular was ex In the Diversified and Pragmatic seg - cent), below marriage/dowry payments Itmobile then follows phone (100that mobile percent) money and areac- ranked the least important (44 per aware of mobile money (83 percent).- nancial mechanisms in this segment. segment(57 percent). also seesSaving the for need future for the expenses house- counts are the most popular formal fi holdwas mostto invest important in the farm, (94 home percent). improve This- Six percent of smallholders in this segment, education, business, and health. have bank accounts. Only 7 percent Similar to all other groups, those in the havement ever have used NBFI a bank. accounts; Similarly, 5 percent 9 percent have ever used an NBFI. More than - Diversified and Pragmatic segment find formal savings mechanisms such as a Thissaving is at followed a financial by institution saving on toa bemobile very one in five (24 percent) have used in important (84 percent) (Figure 132). FIGURE 132. View saving money through different mediums as very important

Financial instuon 84%

On a mobile phone 68%

At home 55%

With an informal group 36%

Sample: “Diverse and pragmatic” households, n5858

82 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 133. Perceived most important medium for saving money

52% 55% 57% 30% 29% 22% 18% 9% 10% 4% 4% 2%

Save money at a Save money with an Save money at home Save money on a mobile ﬁnancial instuon informal group phone

Farming for sustenance Baling the elements Diversiﬁed and pragmac

Sample: Smallholder farmers by segment

home is a distant third. characterizing elements are a higher phone (68 percent); saving money at group. This segment’s most significant toward older heads of household, which, - takenlevel oftogether, financial distinguishes inclusion and them a skewfrom antA plurality savings (57medium percent) for their say savinghousehold, at a the other segments. They have access to financial institution is the most import - secure. A notable portion chose “saving hood opportunities. They feel more em- moneyreflecting at home”the need or to“on keep a mobile their phone”money poweredfinancial toolsthan do and members to a range of the of liveliother over saving with an informal group groups. Though they are optimistic, there still Segment(figures 132 4: andOptions 133). for Growth: is room for growth. Their optimism Stable, optimistic, and building conveys that they have improved their various paths for the future current situations largely because of their net incomes. Furthermore, it may Smallholder households in the Options not be farming income alone that helps stabilize their households—agriculture of the smallholder population in Côte is only one of these households’ diverse for Growth segment make up 5 percent revenue streams.

d’Ivoire; this segment is the smallest

SEGMENT SYNOPSIS

Smallholders in the Options for Growth segment stand out because they have high level of financial inclusion and they skew toward older heads of household. They are comparatively newer to farming, see their future in farming, derive enjoyment from it, and are keen to expand their agricultural activities. A majority of households in the Options for Growth segment have had their agricultural activities seriously affected by unexpected events, though they were resilient, thanks to their savings, when disaster struck. The Options for Growth segment has greater access to financial tools and external support. With two-thirds of this segment financially included, this group offers hope that smallholder households can put their livelihoods on a path toward greater stability and growth.

83 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 134. Age distribution of household head

31% 26%26% 28%29% 29% 26% 24% 23% 20% 21% 15% 17% 17% 17% 18% 8% 7% 10% 8%

15-2930-39 40-4950-59 over 60

Farming for sustenance Baling the elements Diversiﬁed and pragmac Opons for growth

Sample: Smallholder farmers by segment

Demographics: A majority of these Farming: Experience, income, and crops households are headed by farmers who are older and mostly poor. The Options for Growth segment is com- More than three-quarters of the heads of household in the Options for Growth seg- Thisparatively segment newer of to smallholderfarming: 41 percenthouse- holdshave been sees farmingfarming foras their10 years future, or less.and - - ment are over 40 years old (77 percent) ue working in agriculture. They derive with(Figure smaller 134). portions They are having more concentrat a presence nine in 10 (90 percent) intend to contin ined the in theTonkpi, Gbokle Lôh-djiboua, region (29 Marahouse, percent), and almost all would like to expand their and Guemon regions. great enjoyment from it (90 percent),

Sixty-three percent live in extreme pov- Haveagricultural a desire activities to expand (99 their percent). agricultural activities counterintuitive that a portion of a seg- menterty (below called Options $1.25 a for day). Growth It may falls seem be- That said, full-time employment could low the poverty line. However, the drive also be very attractive. While a vast ma- for individual upward mobility and, with jority say they want to expand their ag- segmentation model was built), can crossthat, financial the poverty services line. (off This of whichresults the in ricultural activities (99 percent), close lower-income groups with tendencies to six in 10 say they would welcome and attitudes similar to those of higher full-time employment (57 percent). Less- income groups. than half (45 percent) of this segment are satisfied with what their agricul FIGURE 135. View of success in agriculturetural vs. willingness work has to achieved continue (Figure working 135), in it

Total 51% 90% Farming for sustenance 47% 88% Baling the elements 57% 90% Diversiﬁed and pragmac 51% 91% Opons for growth 45% 90% Strategic ag entrepreneurship 54% 91%

Sasﬁed with agricultural achievements Plan to keep working in agriculture

Sample: All smallholder households who participate in agricultural activities by segment (n52,949)

84 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

exacerbating this contradiction. This is can also be interpreted as a potential experienced two or more unexpect- call to action. If this segment cannot be edby anevents unexpected in the three event, years and 44before percent the successful in agriculture and discovers survey. Moreover, this group experi- other options, then they may change di- ences both environmental events and rection. The question becomes, “What human/manmade issues: do they need to stay in farming?” ■■ The mean land size38 for Options for related event - 81 percent experienced a weather- ares for owned land and 2.6 hectares for ■■ 32 percent were affected by pests or rentedGrowth land. farming On householdsaverage, these is 5.0 farmers hect disease

■■ they grow to sell. member’s or family worker’s health- grow 11 crops each year, eight of which Options for Growth households tend to related17 percent issues were affected by a family

- ■■ cent have three or more), and can there- havefore rely more on sources more than of income just agriculture (52 per 21 percent were affected by theft for revenue: Theand Options accidents for suchGrowth as fire segment is also one of the most enabled by savings ■■ - when disaster strikes. Forty-seven per- ate income from earning wages from cent turned to their savings. Close to occasionalNearly one-third jobs (31 percent) gener

■■ response to the shock. This group also hadone-third other (32resources percent) during had no times specific of goods)15 percent run a business in retail disaster: or manufacturing (selling or making ■■ 9 percent have salary or wages from ■■ a regular job ■■ 13 percent took a loan Agriculture still generates income for - Financial4 percent attitudes took a temporary job ing crops, 29 percent from livestock), andmost it (97 tends percent to be get the income largest from reported sell Much higher financial inclusion source of income. It is also the source of income most vulnerable to unexpected events. for Growth segment of smallholder Two-thirds (66 percent) of the Options which is 30 percent higher than the Di- smallholder households in the Options households are financially included, forMore Growth than ninesegment in 10have (93 had percent) their this segment is a small portion of the agricultural activities seriously affected overallversified population, and Pragmatic it is segment. also one While that

38 The land size measurement comes from the household survey where multiple members of the agricultural household offer up their recollection of various dynamics so as to capture full dynamics instead of relying on just one member’s knowledge of the household. An aggregate estimate of this measure was then created and appended to the segmentation, which is

excluded those who had responded with more than 10 hectares, as they were treated as outliers that are part of the sample because the listing phase otherwise deemed them qualified.

85 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 18. Informal and formal financial mechanisms Financially Own bank Own mobile Own NBFI Access to included account money account informal (%) (%) account (%) (%) savings (%) Farming for 6 0 5 1 25 sustenance Battling the 24 3 21 3 23 Elements Diversified 36 5 34 6 24 and Pragmatic Options for 66 13 63 13 21 Growth Sample: Smallholder farmers by segment

- Nearly all smallholders in this group cluded and are better educated. offers hope as they more financially in save for future purchases and for unex- Mobile money accounts are the most (99 percent) feel it is very important to

among those in the Options for Growth pected events (92 percent). Many also common formal financial mechanism- tendencyfind it very to important experience to saveshocks, for school most cent) of smallholder farmers have a fees (92 percent). Perhaps due to their segment. Nearly two-thirds (63 per can access mobile money either through also is find a strong it very belief important in the importance to save for theirmobile own money or throughaccount, someoneand 71 percent else’s ofregular investing purchases in the farm—98 (92 percent). percent There of account. Ninety-two percent of small- smallholders in this segment consider it holders in the Options for Growth seg- very important. ment had heard of mobile money before the survey. A vast majority of smallholder households in the Options for Growth segment Equal proportions of smallholders in the Options for Growth segment have either or on a mobile phone “very important.” an NBFI account or a bank account at consider saving at a financial institution- cial institution or on a mobile phone “veryIn fact, important” more consider than savingsaving atat home a finan or been13 percent inside each a bank, (Table eight 18). times Nearly more half with an informal group. When asked to thanof these have smallholders those in (47the percent)Farming have for choose which is most important, small- Sustenance segment. - - institution.holders mostly Saving choose on a a mobile formal phone finan One-fifth (21 percent) have used an in camecial channel, in second. and This primarily suggests a financialthat the formal financial institution. - segment sees the value proposition in nisms, there is deep acknowledgment in the formal sources that other segments thisApart segment from access of the toimportance financial of mecha vari-

have not yet discovered (figures 136 ous financial behaviors, such as saving. and 137).

39 Caution: Small segment size limits analysis. Proceed with caution in extrapolating findings.

86 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 136. View saving money through different mediums as “very important”

Financial instuon 96%

On a mobile phone 73%

At home 41%

With an informal group 34%

Sample: “Options for growth” households, n5100

FIGURE 137. Most important medium for saving money

75% 52% 55% 57% 30% 29% 22% 18% 16% 9% 10% 4% 4% 2% 2% 6%

Save money at a ﬁnancial Save money with an Save money at home Save money on a mobile instuon informal group phone

Sample: Smallholder farmers by segment

SEGMENT SYNOPSIS

The Strategic Agricultural Entrepreneurship segment includes households that ap- pear to be actively engaged in building their agricultural work, with some indications of success or at least progress. The segment is more enabled than the others and has a higher income, more education, greater access to emergency funds, and more financial mechanisms at their disposal. They have been impacted by the realities of farming, and have been able to rely on their savings or other resources to get through tough times.

They have big aspirations that include a future in agriculture. They enjoy agriculture and want to expand their agricultural activities. That said, full-time employment could also be attractive to most in this segment. Despite intending to continue working in agriculture, most smallholders in this segment are not satisfied with what their agricultural work has achieved; this is the most unsatisfied among all the segments.

This group can be a model, or a use-case, for carrying meaningful messages or examples for growth to other smallholder segments.

87 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

Segment 5: Strategic Agricultural the poverty line. Few smallholder house- Entrepreneurship: Actively engaged, holds in this segment live in extreme empowered, and expanding their agricultural activities39 povertyFarming (earning: Experience, under income, $1.25 anda day). crops The Strategic Agricultural Entrepreneur The Strategic Agricultural Entrepreneur- ship segment is the least experienced of smallholder households in Côte d’Ivo- - ire.ship They segment have makesemerged up from only life’s 15 percent events empowered, enabled, and perhaps even among the five segments. Only 59 per succeeding, and they have a distinct cent have more than 10 years of farming experience. Most (20 percent) of these- activities. households have two to five years of profile as it relates to their agricultural experience. Nine in 10 intend to contin Demographics: This is the most af- asue other working segments. in agriculture Nearly (91all enjoy percent) ag- (Figure 139), showing similar intentions fluent group among the five segments. - riculture (97 percent), and many would TheAt the segment same time,comprises 11 percent relatively are fewerliving cent), like the other segments. That said, like to expand their capabilities (97 per farmersin extreme over poverty 60 years (below old compared $1.25/day). to full-time employment would be attrac- the other segments, and these house- tive to almost two-thirds of this segment holds are found mostly in the Marahoue - and Lôh-djiboua regions. (62 percent). More than half of small The heads of household in the Strategic holders (54 percent) in this segment Agricultural Entrepreneurship segment are satisfied with what their agricultural are evenly distributed across two age workMost smallholdershas achieved in(Figure this segment 139). want to expand their agricultural activities but - groups: 30–39 years old and 40–49 years consider alternatives outside of farming. old (27 percent and 29 percent, respec Thisfind themsuggests unsatisfying, entrepreneurial and would tenden also- tively) (Figure 138). Only 13 percent are cies. The question becomes, “What can be over 60 years old. More than four in 10 done to feed the entrepreneurial spirit of sizable(38 percent) youth headspopulation. of household in this this segment, and expand their reach and segment are under age 40, which is a The segment is mainly distributed across the two regions, Marahoue at Moreinfluence sources in agriculture of income in Côte d’Ivoire?” - cent. This is also the least impoverished Compared to the other segments, a small- 12 percent, and Lôh-djiboua at 11 per er portion of the Strategic Agricultural

segment, with 52 percent living below FIGURE 138. Age distribution

28%29% 29% 29% 31% 26%26%24% 27% 23% 26% 17% 17%20%17% 20% 18%21% 12% 15% 13% 8% 7%10%8%

15-2930-39 40-4950-59 over 60

Farming for sustenance Baling the elements Diversiﬁed and pragmac Opons for growth Strategic ag entepreneurship

Sample: Smallholder farmers by segment

88 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 139. View of success in agriculture vs. willingness to continue working in it

Total 51% 90% Farming for sustenance 47% 88% Baling the elements 57% 90% Diversiﬁed and pragmac 51% 91% Opons for growth 45% 90% Strategic ag entrepreneurship 54% 91%

Sasﬁed with agricultural achievements Plan to keep working in agriculture

Sample: All smallholder households who participate in agricultural activities by segment

Entrepreneurship segment generates Pests and disease and accidents or theft and growing crops, fruits, or vegetables floods, late rains) in the past three years. income from livestock (15 percent)- as much as weather. Other outside ele- erate income from earning wages from a also affected them (39 percent), but not (93 percent). Larger portions also gen political unrest, their own health issues, orments, a death, such were as market barely price mentioned. fluctuations, More runningregular job a business (21 percent), in retail earning or manufac wages- from an occasional job (15 percent), and range of coping mechanisms and op- agricultural pursuits are key compo- than a third (36 percent) show a wider- turing (13 percent). This suggests that strategy. thesetions atevents. their disposal; they have no spe nents of a larger and diversified income cific response as to how they coped with On average, those in the Strategic Ag- ricultural Entrepreneurship segment Financial attitudes grow the fewest types of crops each year Overall, 29 percent of smallholder house-

(7.29) compared to the other groups. They tend to sell on average five of the smallholderholds in Côte households d’Ivoire arein the financially Strate- seven crops they grow (4.84). They also gicincluded. Agricultural The majority Entrepreneurship (68 percent) seg of- own (average of 3.5 hectares)40 or rent land (average of 2.2 hectares). two-thirds of the smallholders in this Agricultural Entrepreneurship small- ment are financially included. Nearly holdersNearly seven have inbeen 10 (70 seriously percent) affected Strategic by segments.group (64 percent) have mobile money accounts, the highest of all the five a weather-related event (e.g., drought,

up their recollection of various dynamics so as to capture full dynamics instead of relying on just one member’s knowledge 40 ofThe the land household. size measurement An aggregate comes estimate from the of householdthis measure survey was where then created multiple and members appended of the to agriculturalthe segmentation, household which offer is

arebased calculated on participant by choosing responses the largest to the land individual size among questionnaire all members (asked in each of just household), one randomly the base selected is the household household. member). The data These data are weighted accordingly, and land size numbers are calculated using combined data (own land and rent land

excluded those who had responded with more than 10 hectares, as they were treated as outliers that are part of the sample because the listing phase otherwise deemed them qualified.

89 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

Seventy-three percent have access to - a mobile money service, and nearly portant to save for future purchases, Most (94 percent) feel it is very im money. Bank account and NBFI account all (94 percent) have heard of mobile- alsounexpected emphasis expenses on investing (87 in percent),the farm and school fees (86 percent). There is- percentownership have are usedat 18 percentan informal and 11 group per atcent, some respectively point in their (Table lives. 19). Experience Fifteen institution(93 percent). and Smallholders on a mobile phone in this to seg be - muchment considermore important saving withthan a saving financial at ied, but, overall, use is relatively low for home or through an informal channel thiswith segment: informal financial mechanisms var values the functions of a formal account. ■■ VSLA, 8 percent (Figure 140). This shows that the group Market Implications ■■ Other informal saving network or ROSCA, 8 percent Smallholder farming in Côte d’Ivoire is - ■■ havioral, and circumstantial factors. This segmentationdefined by a collection model shows of attitudinal, the unique be ImportanceMoney guard, of saving 1 percent points within each segment through a dynamically nuanced perspective that Smallholder households in the Strategic can be leveraged for positive market Agricultural Entrepreneurship segment interventions. consider saving to be important. Nine in - holder households behaviorally charac- are10 householdsusing more (91 than percent) one savings have savedchan- terizeAs a whole, smallholder the five householdssegments of acrosssmall money in the past 12 months, and most Côte d’Ivoire. The Farming for Suste- two or more savings channels at their nance segment dominates the landscape disposal.nel. More than half (58 percent) have

(38 percent), showing that movement in TABLE 19. Informal and formal financial mechanisms Own Own Access to Financially bank Own mobile NBFI informal included account money account savings (%) (%) account (%) (%) (%) Farming for 6 0 5 1 25 Sustenance Battling the 24 3 21 3 23 Elements Diversified and 36 5 34 6 24 Pragmatic Options for 66 13 63 13 21 Growth Strategic 68 18 64 11 15 Agricultural Entrepreneurship Sample: Smallholder farmers by segment

90 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 140. View saving money through different mediums as very important

Financial instuon 90%

On a mobile phone 76%

At home 49%

With an informal group 31%

Sample: “Strategic agricultural entrepreneurship” households, n5359

the marketplace really must be through This segment is moving away from advancing portions of this massive vulnerability and toward a path of stability. Perhaps what is most important about this group is its large ■■ groupThe into Farming the financial for Sustenance fold. group size, which suggests plenty of use is the most dominant segment and cases and models in the marketplace the most vulnerable farming house- for emerging from vulnerability. Its hold. Smallholders in this segment size is also important in level-setting show a high number of years in farming. They want their children agricultural mechanisms mean for a less-entrenchedexpectations as to household. what financial and they themselves could be interested into continuefull-time, in off-farm agriculture; employment. however, ■■ The Options for Growth segment They live off what their farm pro- - duces, and because they are highly holder population in Côte d’Ivoire. vulnerable, they stand to gain the comprises 5 percent of the small- ing elements are their higher level mechanisms that can facilitate their Their most significant characteriz dailymost laborfrom financialand mitigate and theagricultural range of toward the older age group of house- risks they face. holdof financial head, inclusionwhich together and their distin skew- guish them from the other segments. ■■ The Battling the Elements seg- and a range of livelihood opportunities,They and have they access feel more to financial empowered tools farmingment is thehouseholds third largest in Côte segment; d’Ivoire. it than the other groups. Thesemakes householdsup 16 percent face of manysmallholder of the same limiting circumstances as those ■■ The Strategic Agricultural Entre in the Farming for Sustenance group, preneurship segment makes up but this segment includes much of - the younger generation—the future holds in Côte d’Ivoire. These house- of farming. They are optimistic and holds15 percent are keen of smallholderon building house their committed to farming, have better agricultural activities, with some in- access to emergency funds and are dications of success or at least prog- active savers. ress. They are more enabled than the other segments, have a higher ■■ The Diversified and Pragmatic income, more education, greater ac- segment makes up 26 percent of Côte cess to emergency funds, and access d’Ivoire smallholder households.

to more financial mechanisms. 91 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

- open up agricultural activities to con- ricultural stability and growth, and over- temporary farming methods in the fu- allTo fostereconomic greater well-being, financial there inclusion, needs ag to ture. This fuels their desire to continue in farming. This segmentation highlights several ag- be a specific approach to each segment.- tions stakeholders should consider. and Pragmatic, and Strategic Agricul- ricultural and digital financial implica turalThe BattlingEntrepreneurship the Elements, segments Diversified intend to continue working in agriculture, Agricultural Implications generally enjoy it, and would like to ex- Implication 1: The future of farming pand their agricultural activities, which lies within the younger generation, makes them an appropriate target for who will not prosper by perpetuating the limitations that their parents The Options for Growth segment experienced. agricultural finance. is comparatively newer to farming. Smallholders in this group see their and Pragmatic, and Strategic Agricul- future in farming and intend to contin- turalThe BattlingEntrepreneurship the Elements, segments Diversified hold ue working in agriculture. They derive some lifetime value. The relatively small great enjoyment from it, and almost all proportion of young smallholders tend would like to expand their agricultural to fall within these three segments. Old- activities. er farmers in the other two segments Being able to remain in farming and Growth) want their children to continue advanced thinking around methods for in(Farming farming. for Sustenance and Options for diversifyingflourish, however, income willsources require to include more Central to perpetuating youth in farm- nonagricultural income and/or income ing is putting them within reach of there is a market value. loans) and agricultural mechanisms from a specific collection of crops where What people grow, when, and how much financial services (savings accounts, will need to be proportional so that the chains, contracts) to help them cultivate effort and the costs of growing justify their(insurance, land in paymenta way that options, sustains valuetheir the yield. households. Digital Finance Implications Implication 2: Smallholders’ desire to remain in farming might require Implication 1: High mobile phone strategic resourcing and planning ownership among smallholders to get the most out of their farming means mobile money can drive activities financial inclusion among small holders in Côte d’Ivoire The Farming for Sustenance households Across the segments, there is high ac- being their single biggest source of in- cess to and ownership of mobile phones come.lack income They tend diversification, to depend withalmost crops ex- in the households. Overall, 29 percent clusively on their own agricultural out- of Ivoirian smallholder households are puts. Given that smallholder household - heads in this segment are older, they see ey accounts are the most commonly the continuity of their efforts through heldfinancially accounts included, among and smallholders. mobile mon their children, who would potentially This suggests an opportunity to foster

92 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

more advanced use of mobile money Implication 3: Saving channels can among smallholders who already have be digitized accounts and are using them. The audience size and digital capabilities of the The propensity to save is high across all smallholder household segments in Côte Growth, and Strategic Agricultural En- - trepreneurshipDiversified and Pragmatic,segments might Options help for ing to save in formal institutions and on fuel expansion of merchant payments, theird’Ivoire. mobile These phones. households Saving find also it tends appeal to digital savings, and/or bill pay, setting be through more than one channel and an example for the other segments. It also suggests there are use cases for regular expenses, the future, etc.). This - providesfor specific smallholder purposes households (e.g., school an fees, op- cluded. Mobile money can be leverage portunity for digitization and innovation. asfarmers a method who areto address not yet afinancially household’s in Cultivating the segments financial needs. Implication 2: Perceived eligibility show that there is a need for more tailored and ability to access mobile money approachesThe agricultural to supporting and financial the implicationssmallholder providers is still a barrier farming population in Côte d’Ivoire. This will require tending to the segments that Across the segments, mobile money struggle and cultivating those that are awareness is greater than its use, indi- - cating that there are still some barriers cluded—keeping smallholders, especially to entry. In this case, the barriers are more stable and already financially in more about perceived eligibility and the agricultural sector. ability to access mobile money pro- youth, satisfied and a productive part of viders, which suggests a need to build In Côte d’Ivoire, multiple strategies that how to use the product and services and agricultural mechanisms for mean- available)meaningful that awareness goes beyond (awareness conceptu of- ingfulare combined uptake andto best use positionwithin a financial popula- - tion will be required. Ultimately, this will uct). Awareness and knowledge is an give providers the opportunity to better initialal awareness step, and (only one aware that ofshould the prod not calculate their approaches and potential be overlooked, to getting more small- returns, and will give stakeholders who holders financially included, particu- are shaping this sector the knowledge larly from the Farming for Sustenance necessary to better direct resources to segment. their targeted needs.

93 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

7. DESIRES AND ASPIRATIONS: SMALLHOLDER HOUSEHOLDS SEE THE IMPORTANCE OF SAVING AND INVESTING IN FINANCIAL INSTITUTIONS The National Survey of Smallholder Farm- ers in Côte d’Ivoire included a series of - moneyMore than account eight inare 10 “very say insurance,important.” a tural tools farmers consider relevant in Loansbank account and credit (nonsavings), are comparatively and a mobile less questions on what financial and agricul 41 fromtheir whatagricultural they have and now. financial This sectionlives, what an- important, but still highly appealing to alyzesthey want the desires and need, and and aspirations how that of differssmall- the majority (Figure 141). The findings holder households across the country as are similar when you ask smallholder- farmers about the perceived relevance - of these financial products to their agri a tool for identifying where financial and cultural activities (Figure 142). (oragricultural need) the mechanisms most. This can analysis be most of relthe tools for either their households or their smallholderevant, and what population farmers inthink Côte they d’Ivoire want This perceived relevance of financial

agricultural activities carries through- presents the overall picture, as opposed to to the importance of saving. When aspirationsfocusing on span any onethe population.behavioral segment, asked where they should save, a ma largely because many of these desires and jority of smallholder farmers believe it Smallholder households know the is very important to save at a financial- importance of saving, investing in nityinstitution here as and the even inherent on a importancemobile phone of financial institutions (Figure 143). There is a great opportu-

- savings is already present for Côte d’Ivo receivedire smallholder the lowest farmers. level ofSaving importance. with an There is a relatively high level of per- informal group and savings collector ceived relevance among all smallholder A majority of smallholder farmers feel households in Côte d’Ivoire of all finan it is very important to save for future cial products, most notably insurance and bank and mobile money accounts. FIGURE 141. Regardless of what you have, how important is it to your household to have the following?

Insurance 85% 9% 4% 2%

Bank account (non-savings) 82% 8% 8% 2%

Mobile money account 80% 11% 5% 3%

Savings account 76% 15% 7% 2%

Loan 63% 21% 12% 4%

Credit 60% 21% 14% 5%

Very importantSomewhat importantNot importantDon’t know

Sample: Smallholder households, n53,019

41 A loan is what is received directly in the form of cash from informal and formal financial services; credit is not in the form of cash (e.g., a farmer may go to an agriculture vet and receive inputs to pay for them later, after harvest).

94 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 142. How important is it to your agricultural activities to have the following?

Mobile money account 72% 15% 8% 5%

Insurance 80% 14% 4% 3%

Bank account (non-savings) 76% 12% 9% 3%

Savings account 69% 20% 7% 4%

Loan 58% 26% 12% 5%

Credit 55% 24% 16% 3%

Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

- purchases, an unexpected event, regu account, it is working for them. In fact, lar purchases, and school fees, in that smallholder22 percent disagreefarmers withare somewhat that concept, di- fororder a planned (Figure 144).future Lookingpurchase. at They the and 24 percent aren’t sure. Additionally, trend, smallholder farmers tend to save - vided on whether saving money in an also recognize that having a safety net account is easier than storing it some for unexpected events, such as illness, whereThese desires else (Figure do not 146). always translate into is important. When asked what they need to save for the most, they chose a it offers an opportunity to appeal to what planned future purchase as it may be ispractice; important however, to the if consumer. the desire is present, just out of reach at the time, followed by unexpectedSmallholder events farmers (Figure demonstrate 145). that Smallholder farmers in Côte d’Ivoire important factors to consider while sav- - trust, purpose, and ease of access are tentplace with the highestother countries level of importance where small on- investing in their farms, which is consis ing. Storing money in a place they trust, majority feel it is very important to invest iswhich important can be to easily them. accessed Not all smallholder in case of inholder a futurefarmers educational were surveyed. opportunity A strong an emergency with minimal risk of loss, farmers agree that when money is in an (Figure 147). When it comes to what they FIGURE 143. How important is it for your household to save at each of the following?

2% 6% 0% 3% 7% 14% 11% 9% 10% 37% 19% 29% 56% 26% 82% 64% 57% 17% 35% 16% Save money at Save money on Save money at home Save money with Save money with a ﬁnancial instuon a mobile phone an informal group a collector Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

95 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 144. How important is it for your household to save for each of the following?

Save money for a future purchase 93% 6% 1%

Save money for an unexpected event 82% 14%4%

Save money for regular purchases 80% 16% 3%

Save money for school fees 79% 10% 9%

Save money for ceremony/ dowry 55% 25% 18%

Save money for funeral 43% 26% 25%

0% 20% 40% 60% 80% 100% Very important Somewhat important Not important

Sample: Smallholder farmers, n52,949

FIGURE 145. Which of the following - do you feel your household needs to jority of smallholder farmers said their save for the most? need to invest in the most, a clear ma

A ceremony/ Funerals farms, indicating the importance of the dowry 1% 1% farm to their livelihoods, which has an Desiresimmediate and effect Aspirations: on them Smallholder(Figure 148). households prefer to borrow from School fees 24% A future banks, but lack critical enabling factors purchase 37% Smallholder farmers in Côte d’Ivoire Regular purchases 13% An - unexpected event recognize the importance of borrowing 23% from formal institutions like banks ver sus borrowing from family and friends- Sample: Smallholder farmers, n52,949 (Figure 149), which come in third as the most important source for borrow ing money. MFIs/cooperatives come in FIGURE 146. Do you agree or disagree with the following statements?

I like to store my money somewhere I trust 97% 2% 1% I like to store money somewhere for a speciﬁc purpose 94% 4% 2%

I need to be able to access my money immediately 92% 5% 3% I like to save my money in case of an emergency 90% 8% 3% I like to save my money in an account because it is safer 83% 7% 9% When my money is in an account, it is constantly working for me 54% 22% 24%

Storing my money somewhere is easier than saving in an account 41% 50% 10%

Agree Disagree Don’t know

Sample: Smallholder farmers, n52,949

96 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 147. How important is it for your household to invest in each of the following?

Invest money in a farm 95% 4% 1%

Invest money in a home/home improvement 79% 17% 4%

Invest money in a future educaonal opportunity 76% 15% 8%

Invest in a business 67% 19% 10%

Very important Somewhat important Not important

Sample: Smallholder farmers, n52,949

FIGURE 148. Which of the following do you feel your household needs to do the most? second, and savings collectors and VSLAs comeThese in stated fourth preferences and fifth, respectively.do not translate Invest money in a business - 7% into habit, because most smallholders go Invest money in to friends and family first when attempt a home/home improvement ing to borrow (Figure 150). Moreover, 14% they would prefer to go to friends and- family in the future, if they had a need to Invest borrow, with more than eight in 10 small money in Invest money a farm holder farmers saying they would go to in a future - 62% educaonal friends and family first, when the need opportunity arose. It is also notable that close to sev 16% en in 10 would go to a bank (Figure 151). VSLAs are also avenues for smallholder Sample: Smallholder farmers, n52,949 farmers’ recent borrowing activities, but in terms of future borrowing, they come in second to last, which could mean that FIGURE 149. For your agricultural activities, how important to you is it to borrow from each of the following?

Bank 75% 11% 9% 5%

Microﬁnance 57% 25% 11% 6% instuon/cooperave

Friends and family 40% 41% 16% 3%

Savings collector 26% 23% 43% 9%

VSLA 25% 26% 42% 7%

Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

97 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 150. In the past 12 months, FIGURE 151. If the need arose, would have you attempted to borrow from any you attempt to borrow from any of the of the following? following?

Friends and family 31% Friends and family 83%

VSLA 5% Bank 68%

Microﬁnance instuon/ Microﬁnance 60% Cooperave 1% instuon/cooperave

Bank 1% VSLA 38%

Savings collector 0% Savings collector 29%

“Yes” answers “Yes” answers Sample: Smallholder farmers, n52,949 Sample: Smallholder farmers, n52,949

- of smallholders who currently have a the experience was not satisfactory. Con (Figure 152). Given the small percentage versely, only 1 percent have borrowed - from banks recently (coinciding with the loan (4 percent), these criteria may not- 5 percent of smallholder farmers who have been met (Figure 153). The top rea own a bank account). Nevertheless, most sons for borrowing money focus on farm would like to borrow from banks in the- isers’ in business the case orwhere agricultural they need activities, to pay for in future. This also may highlight the lack of that order; the only other major reason physical presence of formal financial in stitutions and the barriers of conditions Desiresemergency and expenses Aspirations: (Figure There 154). is imposed for accessing to a loan. - high interest in plans for inputs and - school fees Smallholder farmers consider quick ac cess, convenience, repayment terms, in terest rates, and the amount of money that can be borrowed to be important Smallholder farmers consider savings, factors when they need to borrow money credit, and payment plans for inputs FIGURE 152. What factors would you consider when you want to borrow money?

Quickest access to money 65% Most convenient to get to 57% Best repayment terms 37% Best interest rates 35% Loan size 27% Trust in a ﬁnancial instuon 23% Easiest to use 22% Met minimum requirements 21% Have borrowed from them before 12% Recommended by a friend 9% Don't know 7% Was desperate / no other opons 6% Other 1%

Sample: Smallholder farmers, n52,949 Multiple responses allowed

98 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 153. Do you currently have any loans? currently have these products, but want Yes 4% howthem, important the highest these demand are to is smallholders’ for payment and savings plans for inputs, highlighting

agricultural activities. School fees present- an important opportunity; slightly more themthan two-thirdsa credit plan (68 to address percent) school of small fees. holder farmers want a product that gives the smallholders’ economic cycle. Income No 96% This comports with what we know about

Sample: Smallholder farmers, n52,949 ebbs and flows with the agricultural cycle, and payments can be due regardless of whether or not any crops are producing and/or generating income at that time. and school fees to be important to their importance on loans that come with a Smallholders place moderate to high agricultural activities (Figure 155). particular service or accounts. Close to Comparatively, prepaid cards and mobile andmoney top accounts interests have orient less smallholder recognized insuranceseven in 10 plan report is the that, most compared important with to importance. While financial practices- other products, a loan that came with an- productsfarmers toward resonate informal as important financial for mech this their agricultural activities. This is fol anisms, a number of formal financial lowed closely by a loan that comes with a bank or MFI account, a loan that can be group. This presents an opportunity to - accessed through a bank or MFI account, build meaning and relevance for more - one that can be accessed through a mo formal financial mechanisms. bile money account, one that can be ac Very few smallholder farmers have- cessed through a mobile money account any of these products currently, with but linked to a bank or MFI account, the highest percentages at 3 and 4 per and a loan that came with a mobile mo cent (Figure 156). For those who do not ney account, respectively (Figure 157). FIGURE 154. What would be the main reasons for borrowing money?

65% 61%

42%

27% 24% 20% 12% 9% 3% 2%

To start To improve For other For To buy To make big To pay To cover Don't Other a new the cash agricultural emergency inputs purchases for daily know business or ﬂow acvies expenses such as land school expenses expand my situaon of or modern fees business my business equipment

Sample: Smallholder farmers, n52,949 Multiple responses allowed

99 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 155. How important is each of the following products to your agricultural activities?

A savings plan for inputs 66% 20% 9% 4%

A payment plan for inputs 65% 20% 10% 5%

A credit plan for school fees 64% 16% 16% 4% A goal savings plan or contractual savings plan for school fees 63% 18% 14% 4% A mobile money account that came with 46% 20% 22% 13% a smartphone A pre-paid card to make payments 41% 20% 28% 12%

A pre-paid card for receiving income 40% 20% 28% 12%

Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

FIGURE 156. Do you currently have any of the following products for your agricultural activities? Do you want to have any of the following products for your agricultural activities?

76% 77% 68% 71% 54%54% 56%

4% 3% 1% 1% 2% 3% 3%

Pre-paid card for Pre-paid card to Mobile money Credit plan for Goal savings or Savings plan for Payment plan for receiving income make payments account that came school fees contractual savings inputs inputs with a smartphone plan for school fees

Currently have Want

Sample: Smallholder farmers, n52,949

FIGURE 157. How important is each of the following products to your agricultural activities

A loan that came with an insurance plan 73% 14% 9% 4%

A loan that came with a bank or MFI account 69% 14% 11% 6%

A loan that is accessed directly through a bank or MFI account 65% 19% 9% 7%

A loan that is accessed through a mobile money account 59% 23% 10% 8% A loan that is accessed through a mobile money account and 58% 22% 11% 9% linked to a bank or MFI account

A loan that came with a mobile money account 57% 22% 12% 8%

Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

100 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

FIGURE 158. Do you currently have any of the following products for your agricultural activities? Do you want to have any of the following products for your agricultural activities? 81% 75% 77% 76% 72% 73%

2% 2% 2% 2% 2% 3%

Loan that is accessed Loan that came with a Loan that is accessed Loan that is accessed Loan that came with a Loan that came with through a mobile mobile money account through a mobile directly through a bank or MFI account an insurance plan money account and money account bank or MFI account linked to a bank or MFI account Currently have Want Sample: Smallholder farmers, n52,949

- - cultural activities. Close to seven in Only single digits of smallholder farm their mobile phone as a tool for agri ers currently have any of these loans, yet- large numbers say they want them even 10 say the ability to access weather- though they do not currently have an ac information would be very important. Desirescount. (Figure and Aspirations: 158). Mobile More than six in 10 say access to mar products conjure interest ket pricing and farming information would be very important. Close to six Smallholder farmers in Côte d’Ivoire in 10 say access to financial services- and agriculture and financial training are important (Figure 159). The low can see the importance of leveraging est ranked activity is the ability to buy Figure 159. How important is each of the following abilities to your household’s agricultural activities?

Ability to access weather informaon on a mobile 67% 12% 15% 6% phone Ability to access market pricing informaon on a mobile 64% 15% 15% 6% phone Ability to access farming informaon on a mobile phone 63% 16% 15% 6% Ability to access ﬁnancial services on a mobile phone 59% 18% 15% 7% Ability to access agricultural training on a mobile phone 57% 18% 18% 7% Ability to access ﬁnancial training on a mobile phone 55% 17% 20% 8% Ability to charge my phone at a central locaon 54% 17% 22% 6% Ability to track transportaon on a mobile phone 54% 18% 21% 7% Ability to buy and sell on a mobile phone 52% 15% 24% 9%

Very important Somewhat important Not important Don’t know

Sample: Smallholder farmers, n52,949

101 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

thisand sellprocess. on a mobile phone; this may be these services, including the ability because it may be difficult to visualize to charge their phones at a central location (Figure 160). Generally, up- to seven in 10 stated that they would In Côte d’Ivoire, most smallholders want to have these abilities on a mo lack the ability to access most of bile phone.

Figure 160. Do you currently have any of the following abilities for your agricultural activities? Do you want to have any of the following abilities for your agricultural activities?

72% 73%73% 67% 69% 70% 62% 65% 57%

10% 2% 1% 2% 2% 4% 2% 2% 2%

Ability to buy Ability to charge Ability to track Ability to access Ability to access Ability to access Ability to access Ability to access Ability to access and sell on a my phone at a transportaon ﬁnancial training agricultural ﬁnancial services weather farming market pricing mobile phone central locaon on a mobile on a mobile training on a on a mobile informaon on ainformaon on ainformaon on a phone phone mobile phone phone mobile phone mobile phone mobile phone

Currently have Want

Sample: Smallholder farmers, n52,949

102 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

8. CONCLUDING OBSERVATIONS Côte d’Ivoire holds one of the strongest

of smallholders have a mobile digital finance markets among WAEMU phone, access to a quality network countries, and this strength can bode- seems to be a factor for those who well for bringing more smallholder- do not own a mobile phone and for farmers within reach of financial ser those who do not use mobile money vices that can facilitate their agricul services. This contributes to the fact- tural activities and household living that those in rural areas show low conditions. numbers of access and use of finan ■■ cial services. The purpose of this working paper was to provide a foundational assessment Most smallholders depend on rice- of the core findings of this study, which for consumption and on cocoa for included a deep and robust nationally- income. This heavy dependence ex representative survey and segmentation poses them to great risk in the event of smallholders. The data from the sur that these two crops are affected by vey build on existing information from a negative natural or financial event. a national perspective by addressing a- This vulnerability is compounded by number of inquiries and explorations- the fact that many do not store these pertaining to the agricultural and fi crops because they barely have any- nancial landscape of smallholder farm left over; they consume or sell the- ers in the country. This includes, but is- crops they harvest. Only small por not limited to, market size, value chain tions of the population have multi assessments, product positioning, tar ple income streams, and even then, get audience profiling and recruitment, farming is still the largest source of marketing strategy and messaging, and ■■ income. benchmarking and tracking for future growth. Financial inclusion reaches only a small portion of the population, CôteSix critical d’Ivoire: challenges were identified despite the fact that nearly all of- within the smallholder population in the adult population own a mobile ■■ phone, which therefore enables mo bile money. Phone use is still basic,- An examination of the demographics and awareness of mobile money is of smallholder households in Côte contained, both of which are bar d’Ivoire shows that the households riers that need to be minimized to are led by men, are older, and lack ■■ increase access to DFS. ■■ formal education. Formal channels to communicate Their relationships with other value new and relevant information to chain actors are predominantly cash smallholder farmers are lacking.- based and do not seem to cultivate Access to formal channels, such as trust since all purchases are paid newspapers and agricultural ex ■■ immediately. - tension workers, has never been - experienced by the majority of Infrastructure is poor in terms of ac smallholder farmers. They mostly cess to markets and in terms of net rely on word-of-mouth and previous work services. Although a majority experience.

103 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

With those challenges, there are also Combined, the challenges and oppor ■opportunities:■ - tunities point to three big-picture implications:■■ Smallholder farmers trust formal fi- - nancial institutions, and they show Mobile money has the potential to- some level of demand for formal finan drive financial inclusion with bet cial services. This is hampered by the ter infrastructure and increased ac fact that they have limited exposure cess to information. Because most- and access to these services. The most smallholders believe they do not desired products are either payment have enough money to enjoy finan plans or credit plans for inputs and cial services, implementing better- school fees. These two desires can be financial education will contribute a catalyst to provide tailored financial to increased use of financial ser services and act as a point of entry to vices and an increase in the financial ■■ ■■ increase levels of financial inclusion. well-being of smallholder farmers. Smallholders are ready for financial The observed lack of youth and inclusion, especially through mobile women could influence the future money. A majority have the necessary of farming in the country. Retention identification documents and have a and even recruitment of youth and mobile phone. Mobile-phone-driven women is a critical imperative for products already hold some appeal sustaining the country’s smallholder because smallholders see a phone as- agricultural sector. The ability to be a communications tool, and want to- able to farm, and farm well, benefits- do more with it to foster their finan youth and women, the family, and cial and agricultural lives. A prom- the community, given the heavy de inent deterring factor is the low pendence on agriculture. Increased levels of education, which can be ad access to formal education for youth dressed by appropriate and tailored and women will also deepen the ■■ financial education. type of information channels and tools that can be used to convey the With better infrastructure, meaning knowledge needed to not only to better access to network services and- improve agricultural practices but other utilities, some of the fears noted to develop good financial behaviors as the main reasons for not using mo- ■■ and a positive culture. - bile money and having a mobile phone can be addressed. In addition, in- Smallholder households need ap- creased connectivity with a high level propriate mechanisms to access of security will build trust and accep information and services for plan tance of financial services transactions ning their farming and financial ■■ as a relevant resource for farmers. activities. There is a need to design and develop specific products or a- All providers (mobile money, bank,- bundle of products. Insurance and NBFI) can look at this market as one- savings mechanisms need to be pro- that holds opportunity because small vided to guard smallholders from holder farmers desire financial mech catastrophic events that most ex anisms that help them save and obtain perience and to help them to cover lines of credit, tend to prefer formal expenditures such as school fees. entities over informal, and also trust It is especially important for those formal entities, even though most have households where much of their not had direct experience with them. income depends on few crops.

104 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

ANNEX 1: METHODOLOGY AND DESIGN The smallholder household survey in selected in each EA, a total number of Côte d’Ivoire is a nationally represen- 223 EAs were selected (Table 3). tative survey with a target sample size of 3,000 smallholder households. The The sample for the smallholder survey sample was designed to provide reliable - survey estimates at the national level cation was achieved by separating each is a stratified multistage sample. Stratifi and for three zones (East Forest, West zone into urban and rural areas. The Forest, and Savane). 2014 population census. Therefore, six urban/rural classification is based on the A. Sampling Frame strata were created, and the sample was selected independently in each stratum. In preparation for the 2014 population census, the country was divided into primary sampling units with probabil- 22,600 census enumeration areas (EAs). ityIn theproportional first stage, to EAs size, were the selectedsize being as For the 2015 agricultural census, the the number of households in the EAs. - A household listing operation was conducted in all selected EAs to identify households.National Statistical The sampling Office frame (INS) for identi the smallholder households according to smallholderfied 18,321 EAs survey that containis the list agricultural of these EAs containing agricultural households. to provide a frame for the selection of The distribution of the population in smallholderthe definition households used in the to be survey, included and these EAs is shown in Table 1. in the sample. In the second stage, 15 smallholder households were to be B. Sample Allocation and Selection selected in each EA with equal proba- To take nonresponse into account, the bility. However, there was a deviation target sample size was increased to during the sample implementation. 3,333 households, assuming a nonresponse rate of 10 percent. C. Household Listing The household listing operation was to the zones based on their popula- conducted in all selected EAs during tionThe totalcounts sample using size the was power first allocation allocated 3–26 March 2016. For this purpose, In- method. Within each zone, the resulting termedia developed a manual describ- sample was then distributed to urban ing the listing and mapping procedures. and rural areas in proportion to their The manual included listing forms and population (Table 2). screening questions used to identify smallholder households according to Given that EAs were the primary sampling units and 15 households were This manual was used to train 32 listing the agreed definition for the survey. TABLE 1. Population in agricultural EAs Urban Rural Total East Forest 175,754 737,410 913,164 West Forest 297,050 1,392,640 1,689,690 Savane 133,301 710,023 843,324 Total 606,105 2,840,073 3,446,178

Source: INS

105 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 2. Sample allocation TABLE 3. Number of EAs to select Urban Rural Total (after rounding) Urban Rural Total East 192 808 1,000 Forest East 13 54 67 West 234 1,099 1,333 Forest Forest West 16 73 89 Savane 158 842 1,000 Forest Total 584 2,749 3,333 Savane 11 56 67 Total 40 183 223 teams in Abidjan. Each listing team from 15 to 17 following the household consisted of one supervisor, one lister, listing operation in the 212 EAs retained and one mapper recruited from Ipsos’s in the sample. enumerators. The training involved both D. Sampling Weights (InterMedia’s local field partner) pool of The sample for the smallholder house- classroomThe household sessions listing and fieldwas practice. done on hold survey is not self-weighting, there- smartphones, which required Ipsos to fore sampling weights were calculated. develop a script in Dooblo SurveyToGo software for the listing forms. The script the design weight based on the prob- abilityThe first of componentselection for of each the stage. weights The is was used for the listing operation. second component is the response rate was field tested and validated before it at both household and individual levels. Deviations in the Sample Implementation The design weights for households were adjusted for nonresponse at the house- After the EAs were selected and the EA hold level to produce adjusted house- maps were printed, it was necessary to hold weights. Sampling weights for the reduce the number of EAs to be listed - to 212 for budgetary reasons. There- rived from adjusted household weights fore, 212 EAs were randomly selected byMultiple applying Respondent nonresponse data filerates were at thede among the previously 223 sampled EAs individual level to them. For the Single sample. was applied after taking into account the and were finally included in the survey subsamplingRespondent data done file, within the the same household. process The smallholder survey in Côte d’Ivoire is part of the series in Mozambique, Finally, household and individual sam- Uganda, Tanzania, Nigeria and Ban- pling weights were normalized separately gladesh. Fieldwork in other countries at the national level so the weighted experienced a large number of failed number of cases equaled the total sample size. The normalized sampling weights households and household members couldcall-backs not be where interviewed identified during eligible the and used during analysis. - were attached to the different data files E. Sampling Error slightlytime allocated short of to thefieldwork target. inFor each this coun reason,try. As the a result,number the of final households sample sizesselected fell The sample design for the smallholder in each EA in Côte d’Ivoire was increased household survey is a complex sample

106 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

- the Multiple Respondent questionnaire, tion, and equal probabilities of selec- and the Single Respondent question- tion.design For featuring key survey clustering, estimates, stratificasampling naire (see Table 4). errors taking into account the design features were produced using statisti- In each selected household, the House- cal packages such as the SPSS Complex hold questionnaire was administered to Sample module or STATA based on the the head of the household, the spouse, Taylor series approximation method. or any knowledgeable adult household member, to collect information about Questionnaire implementation. To household characteristics. Basic infor- capture the complexity of smallholder mation, such as age, gender, education households, the survey used three ques- attainment, schooling status, and rela- tionnaires: the Household questionnaire, tionship with the household head, was

Table 4. Smallholder survey in Côte d’Ivoire: Questionnaire, respondents, and content Household Sample Questionnaire respondent(s) size Content 1. Household Head of the n53,415 • Basic information on all house- household, hold members (e.g., age, spouse, or a gender, education attainment, knowledgeable schooling status) adult • Information about household assets and dwelling characteristics to derive poverty status 2. Multiple All household n56,659 • Demographics (e.g., land Respondent members over size, crop and livestock, 15 years old who decision-making, associations contributed to and markets, financial behaviors) the household • Agricultural activities (e.g., income or selling, trading, consuming participated in crops, livestock, suppliers) its agricultural • Household economics (e.g., activities employment, income sources, expenses, shocks, borrowing, saving habits, investments) 3. Single One randomly n53,019 • Agricultural activities Respondent selected adult in (e.g., market relationships, the household storage, risk mitigation) • Household economics (e.g., expense prioritization, insurance, financial outlook) • Mobile phones (e.g., use, access, ownership, desire, and importance) • Formal and informal financial tools (e.g., ownership, use, access, importance, attitudes toward financial service providers)

107 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

collected on all household members. The questionnaires, mock interviews be- Household questionnaire also collected tween participants in the classroom, and information on whether each household member contributes to the household in- in the areas outside the sampled EAs. come or participates in the household’s a field practice with actual respondents agricultural activities. This information staff (QC team), hired by InterMedia, was later used to identify all household alsoFive participated independent, in field the training quality-control and in members eligible for the other two questionnaires. Information on household assets and dwelling characteristics was also theTwenty-one field practice. interviewing teams collec collected to derive the socioeconomic/ ted data for the survey on smartphones poverty status of households. between 15 April and 13 May 2016. Each team consisted of one supervisor The Multiple Respondent questionnaire and three to four interviewers. Three was administered to all adult members staff members from InterMedia’s local in each selected household to collect - information on their agricultural activ- thefield QC partner team. The coordinated QC team stayed and super with money use. In addition, in each selected vised fieldwork activities in addition to household,ities, financial only behaviors,one household and member mobile closely monitor them. During data col- was selected using the Kish grid and was lection,the survey InterMedia teams during received fieldwork interim to administered the Single Respondent questionnaire. for quality control and used to provide data from the field, which were analyzed The questionnaire was administered in - tenciestimely feedback and errors, to fieldand correctionsstaff. InterMedia were three questionnaires were pretested in madechecked as necessarythe final data and filewhere for possible.inconsis FrenchFrench. toBefore make the sure start that of thefieldwork, questions all were clear and could be understood by Response Rates. Tables 5 through 7 the respondents. At the end of the pre- show household and household member response rates for the Côte d’Ivoire - smallholder household survey. test, debriefing sessions were held with- A total of 3,415 households was selec servationsthe pretest fromfield staff,the pretest. and the Followingquestion ted for the survey, of which 3,109 were naires were modified based on the ob found to be occupied during data collec- a script was developed to support data tion. Of these, 3,019 were successfully collectionthe finalization on smartphones. of the questionnaires, The script interviewed, yielding a household re- was tested and validated before it was sponse rate of 97.1 percent. part of the user guide that accompanies In the interviewed households, 6,659 theused data in the set field. for this The household questionnaires survey. are eligible household members were iden- - Main Training, Fieldwork, Data Pro- tionnaire. Interviews were completed cessing. - withtified 5,706 for the eligible Multiple household Respondent members, ques ner recruited the interviewers and supervisors InterMedia’s for data collection. local field Then, part a centralized training was conducted in yieldingAmong athe response 3,019 rateeligible of 85.7 household percent. Abidjan from 31 March to 7 April 2016. members selected for the Single- This training included instructions on Respondent questionnaire, 2,949 were - successfully interviewed yielding a dures, a detailed review of the survey response rate of 97.7 percent. interview techniques and field proce

108 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

TABLE 5. Response rate for the household questionnaire East Forest West Forest Savane Rural Urban Total Households selected 1,041 1,332 1,042 2,886 529 3,415 Households occupied 962 1,217 930 2,641 468 3,109 Households interviewed 932 1,180 907 2,574 445 3,019 Household response 96.9% 97.0% 97.5% 97.5% 95.1% 97.1% rate

TABLE 6. Response rate for the multiple respondent questionnaire East Forest West Forest Savane Rural Urban Total Eligible household 1,750 2,695 2,214 5,795 864 6,659 members Eligible household 1,604 2,196 1,906 4,948 758 5,706 members interviewed Response rate 91.7% 81.5% 86.1% 85.4% 87.7% 85.7%

TABLE 7. Response rate for the single respondent questionnaire East Forest West Forest Savane Rural Urban Total Eligible household 932 1,180 907 2,574 445 3,019 members Eligible household 910 1,149 890 2,510 439 2,949 members interviewed Response rate 97.6% 97.4% 98.1% 97.5% 98.7% 97.7%

109 National Survey and Segmentation of Smallholder Households in Côte d’Ivoire

ANNEX 2: RANDOM FOREST exceeds the average vote for any other class present in the dependent variable. A Random Forest consists of a collection This measure provides us not only with or ensemble of simple tree predictors, a convenient way of making predictions, each capable of producing a response but also with a way of associating a con- when presented with a set of predictor values.40 response takes the form of a class mem- fidenceFor regression measure problems, with those Random predictions. For- For classification problems, this ests are formed by growing simple trees, a set of independent predictor values each capable of producing a numerical withbership, one whichof the categories associates, present or classifies, in the response value. Here, too, the predictor dependent variable. Alternatively, for set is randomly selected from the same regression problems, the tree response distribution and for all trees. Given is an estimate of the dependent variable the above, the mean-square error for a given the predictors. The Random Forest Random Forest is given by: algorithm was developed by Breiman. mean error 5 (observed 5 tree response)2 A Random Forest consists of an arbi- trary number of simple trees, which are The predictions of the Random Forest are taken to be the average of the predictions of the trees: simpleused to treesdetermine vote thefor finalthe most outcome. popular For class.classification In the problems,regression the problem, ensemble their of Random Forest 1 K 5 _ ∑ Kth tree response responses are averaged to obtain an es- Predictions K K 5 1 timate of the dependent variable. Using where the index k runs over the individ- improvement in prediction accuracy ual trees in the forest. (i.e.,tree ensemblesbetter ability can to leadpredict to significantnew data cases). incorporate missing data in the predic- torTypically, variables. Random When Forestsmissing candata flexiblyare en- Technical Details countered for a particular observation The response of each tree depends on (case) during model building, the pre- a set of predictor values chosen inde- diction made for that case is based on pendently (with replacement) and with the last preceding (nonterminal) node the same distribution for all trees in the in the respective tree. So, for example, forest, which is a subset of the predictor if at a particular point in the sequence values of the original data set. The opti- of trees a predictor variable is selected mal size of the subset of predictor vari- at the root (or other nonterminal) node for which some cases have no valid data, ables is given by log2 M11, where M is the number of inputs. then the prediction for those cases is simply based on the overall mean at the root (or other nonterminal) node. set of simple trees and a set of random Hence, there is no need to eliminate predictorFor classification variables, problems,the Random given Forest a cases from the analysis if they have missing data for some of the predictors, measures the extent to which the aver- nor is it necessary to compute surrogate methodage number defines of votes a margin for the function correct class that split statistics.

40 See documentation on Random Forest Algorithm at http://www.statsoft.com/Textbook/Random-Forest.

110