KNOWLEDGE BASE RESOURCE

Solar-based irrigation bundle profile and scaling in Ghana

Published by: International Water Management Institute (IWMI)

Authored by: Minh, Thai Thi; Ofosu, A.

Publication Date: December 1, 2022

There are solutions to sustainable intensification, irrigation technologies, and water management under changing weather and climate conditions; they are just not available to smallholder farmers and vulnerable groups on a large scale. Scaling these solutions, therefore, needs to develop bundles of best- fit solutions to diversify farming and farmer conditions and adapt them to the context of irrigated farming. Throughout the action research process, solar-based irrigation bundle (SBIB) has been scaled in Upper East, Upper West, Northern, Northeast, and Savanah region, Ghana since January 2020. SBIB offers solar- powered irrigation pumps and pay-as-you-go and pay-as-you-own (PAYGO/PAYOWN) financing services to smallholder farmers in combination with tailoring their business models to different client segments (ability to pay, frequency, amount) to lower the barrier for upfront investment cost, enabling solar irrigation adoption and enhancing productivity and income throughout the year. This SBIB profile consists of three components: 1) bundle components and characteristics, 2) assessing the scalability and scaling potential of the bundle, and 3) developing scaling strategies

This bundle includes various innovations, services, and scaling actions:

- Core innovations: solar-powered irrigation pumps (SPIPs); PAYGO/PAYOWN financial services to lower the initial cost of the pump; And tailored business models to different client segments

- Services: Sale and service networks for market linkages; Digital financial payment (MoMo MTN); De-risk investment from development partners (e.g., GIZ with 40% for male farmers and 50% for female farmers) subsidy for the PAYGO/PAYOWN SPIPs investment; and Internship with and for filling in the private sector partners’ knowledge and human resource gaps

- Scaling actions: Market segmentation for the PAYGO/PAYOWN SPIPs; demand-supply linkage workshop and services; and multi-stakeholder dialogues on scaling small scale irrigation (SSI) to leverage the private sector engagement and multi-sector investment

To scale this bundle, a demand-supply linkage pathway was co-developed with actors in the irrigated vegetable value chain. The pathway consists of four components: 1) establish sales and service networks, 2) increase the private sector’s visibility and outreach in the regions, 3) capitalize on the sale of PAY-OWN PS2 solar-powered pumps, and 4) facilitate environmental and social sustainability and inclusivity of scaling solar-based irrigation in the region. A multi-actor partnership was established between private sector partners (Pumptech Ghana, Tech2 Ghana), research partners (International Water Management Institute – IWMI), Government Partners (Ministry of Food and Agriculture, Regional Agricultural Department –- MOFA; Rural Development Bank); and Development partners (Green Energy Project and Green People's Energy Project - GIZ).

The scaling readiness of SBIB is at level 9―Proven innovation bundle―because the bundle and its bundling process have proven certain impact indicators in Ghana and scaled to Ethiopia and Mali. One private sector partner in Ghana increased their sale of solar-powered irrigation pumps up to 80% in 2021. The estimated annual investment in 2022 from the private sector partners is US$500,000 of which to the smallholder farmer segment is US$250,000. Based on the outcome of the partnership, one million US$ for impact investment into smallholder solar-based irrigation has been mobilized jointly by the Shell and Lorentz foundations to target Lorentz's distributors in Sub-Sahara Africa.

Scaling of SBIB contributes to different development outcomes such as SDG 1 (e.g., eradicate extreme poverty); SDG 2 (e.g., end hunger and all forms of malnutrition, double agricultural productivity, and incomes of small-scale food producers, ensure sustainable food production systems and producer support); SDG 5 (e.g., give women equal rights to economic resources, enhance the use of ICTs to empower women); SDG8 (e.g., higher productivity through upgrading and innovation and higher value- added, support decent job creation and entrepreneurship, and enhance youth employment opportunities); SDG 10 (e.g., reduce inequality); SDG12 (e.g., reduce food loss and waste); and SDG (e.g., take urgent action to combat climate change).


Research Detail
Solar-based irrigation bundle profile and scaling in Ghana
Published by: International Water Management Institute (IWMI)
Authored by: Minh, Thai Thi; Ofosu, A.
Publication Date: Dec 1st, 2022