1. Indaba Agricultural Policy Research Institute
Assessment of the FISP e-VOUCHER model:
What future for input subsidy programmes in Zambia? By
Auckland Kuteya
Presented at the Zambia 2017 Social Protection Week,
New Government Complex, Lusaka, 27th Nov – 1st Dec 2017
Indaba Agricultural Policy Research Institute

2. Farmer Input Support Programme
Traditional system
E-voucher
(E-FISP)
Delivery Mechanism
Fertilizer and seed
Flexible – various inputs to cover crops and livestock

3. About FISP Electronic Voucher
Zambia has reformed FISP to implement it through a flexible electronic voucher system
MoA launched the e-voucher program as a pilot in 13 districts during the 2015/2016 agricultural season, targeting 241,000 smallholder farmers
During 2016/17 farming season, MoA expanded the pilot to include all ten provinces covering 39 districts with a target of beneficiaries
During the 2017/2018 farming season, MoA has rolled out e-FISP nationwide to slightly over 1 million farmers
The system allows farmers to redeem various inputs like seeds, fertilizers, insecticides, herbicides, live animals, livestock feed, veterinary drugs and sprayers

4. Some issues with E-voucher Pilot:
E-FISP Objectives and Issues
Some issues with E-voucher Pilot:
Promote agricultural diversification
Provide small-scale farmers a wider choice of inputs
Greater economic multiplier effect
Delayed Funding
Inadequate input supply
Inadequate sensitisation
Poor targeting
Delayed printing of cards
Limited # of inputs
Some Coops limiting farmer’s choice –fertilizer & maize seed only
Input pricing
General operational challenges
FISP
E-VOUCHER OBJECTIVES
Increased private sector participation in input market
Timely supply of agricultural inputs
Savings on implementation costs

5. Market-Smart Subsidies
Subsidies should be part of a wider strategy
Support market development / private sector investment
Promote competition
Pay attention to farmer demand
Insist on economic efficiency
Put farmers in the driver’s seat
Have an exit strategy
Pursue regional integration
Ensure sustainability
Promote pro-poor growth

6. Comparison of T-FISP & E-Voucher – Cost Savings
Activity
Traditional FISP
E-FISP
Government
Private
Pre-planning
Tendering
Procurement
Distributing to districts
Distributing to satellite depots
Selecting beneficiaries (meetings)
Facilitating collection of moneys
Storage of inputs
Distribution of inputs

7. Data and Methods
IAPRI in collaboration with MoA monitored the implementation of the e-voucher pilot programs
Monitoring activities involved interviews and discussions with officers from MoA (PACOs, DACOs, DMDOs, and Agriculture Assistants), farmers and approved agro-dealers
Focus Group Discussions with smallholder farmers were conducted during e-voucher baseline and follow-up survey data collection

8. FINDINGS
9/18/2018

9. Adoption of improved technology by HHs in 2015/16 season
Improved technology type
E-voucher
Non E-voucher
All
Fertilizer use (%)
77.2
74.4
76.5
Herbicides use (%)
14.8
12.6
14.2
Lime use (%)
1.7
1.3
1.6
Animal/chicken/compost/green manure use (%)
18.0
17.1
17.7
Mechanical Power (%)
2.6
2.2
2.5
Animal Draft Power (%)
79.5
83.8
80.7
Land cultivated that is fertilized (%)
77.0
73.9
76.1
Fertilizer (Kg/ha)
314
279
304
Source: FISP E-voucher baseline survey, 2016

10. Number of agro-dealers in nearest Boma
Season
Average Number by Participation
Participating
Non-participating
2014/15
3.76
2.63
2015/16
7.06
3.20
2016/17
5.70
3.80
%Change 2014/15 to 2015/16
87.9
21.7
%Change 2014/15 to 2016/17
51.6
44.8
Source: E-FISP Household Survey, 2016 and 2017

11. Distance to nearest fertilizer seller and agro-dealer
Distance (Km) to Nearest
Average Value by Participation Category and Season
Pilot e-FISP
Control
2015/16
2016/17
%Change
Fertiliser dealer in-season
18.30
14.93
-18.4
26.12
42.56
62.9
Agro-dealer
16.71
14.08
-15.7
32.14
52.30
62.7
Source: E-FISP Household Survey, 2016 and 2017

12. Proportion of HHs using promoted CSA practices
Input Use
Percent Households by Participation Category and Season
Pilot e-FISP
Control
2015/16
2016/17
%Change
Herbicides
14.8
17.8
19.8
12.6
11.2
-10.7
Animal manure
16.9
16.1
-4.8
16.3
9.3
-43.0
Source: E-FISP Household Survey, 2016 and 2017

13. Household crop productivity - 2015/16 farming season
Crops
E-voucher
(kg/ha)
Non E-voucher
All
Maize
3,271
2,837
3,145
Sorghum
1,296
901
1,119
Millet
1,028
797
822
Sunflower
687
761
724
G/nuts
1,076
873
1,003
Mixed beans
593
660
627
Cowpeas
1,005
623
952
Sweet potato
3,525
3,422
3,470
Source: FISP E-voucher baseline survey, 2016

14. Farm income by e-FISP participation and season
Gross Income Type
Average Value (ZMW) by Participation and Season
Participating
Non-participating
2015/16
2016/17
%Change
Field crop production
10,117
23,959
137
7,944
20,428
157
Horticultural income
3,416
48,888
1,331
4,974
1,447
-71
Livestock income
765
2,812
268
980
3,420
249
Farm income
14,298
75,659
429
13,897
25,295 82
Source: E-FISP Household Survey, 2016 and 2017

15. E-voucher stimulating agricultural diversification
Type of agro-inputs redeemed
% households redeeming inputs
Total
Central
Lusaka
Southern
Fertilizer
60.7
56.6
72.5
62.4
Maize Seeds
24.3
36.4
27.5
14.8
Cowpeas
0.6
0.0
1.1
Common Beans seeds
1.0
0.3
Insecticides
1.6
2.6
Herbicides
2.0
2.9
Agricultural Lime
0.1
Horticultural Inputs
0.7
Veterinary Drugs
3.8
1.4
6.1
Dip Chemicals
4.0
Sprayers
1.3
2.1
Others
100
As expected from an initial pilot majority of HHs (85%) redeemed their e-cards for maize seed and fertilizer
Other 15% redeemed other inputs including livestock inputs
In Southern Province, about 10% of HHs purchased veterinary drugs and dip chemicals
Purchase of other inputs is likely to increase during second phase of pilot
It is highly likely e-voucher will continue to help unlock the potential for agricultural diversification
Source: FISP E-voucher baseline survey, 2016

16. Household Crop diversification - Simpson Index
Pilot E-FISP
Control
2015/16
2016/17
%Change
Simpson
0.230
0.257
11.7
0.352
0.349
-0.8
Source: E-FISP Household Survey, 2016 and 2017

17. Other successes of the e-voucher pilot
Increased Private Sector Participation in Inputs Distribution
Approx. 230 new Agro-dealers came on board in 2015/16 season
In 2016/17, number of Agro-dealers/input suppliers rose to 422
Some agro-dealers transported inputs to various agric camps to provide inputs closer to farmers and this helped to cut down farmers’ transport costs
In 2017/18, number of Agro-dealers/input suppliers has risen to over 1,000
Promoted agricultural diversification
Some farmers purchased other inputs apart from maize seed and fertilizer, e.g. Veterinary drugs, herbicides, etc.
E-voucher pilot demonstrated how Government can save resources

18. Conclusions
E-voucher pilot crowded in more private sector participation in agro-input distribution
E-voucher pilot allowed farmers to redeem inputs of their choice thereby promoting agricultural diversification
The pilot demonstrated how Government can save a lot of money that was being used in fertilizer procurement and distribution of limited inputs
Once e-voucher implementation challenges are addressed, the system proves to be the best avenue to implement input subsidy program

19. Options for a successful e-voucher implementation
Need timely funding
Pre-planning done on time
Timely releases of operational funds at district level
Sensitization of stakeholders
Awareness and sensitization of the program to farmers, agro dealers, political leaders and DCs need serious attention
Timely availability of inputs in agro dealer shops
Effective monitoring system
Limited human elements in system operations

20. Thank you