Transcript Mark Davies
Washington DC, May 15th, 2008 Mark Davies Challenges well known... No market choice Low prices Price Instability No credit Poor quality Small volumes A failing of relevant information market information systems are not new.... But have rarely worked for the people A powerful tool to help disrupt the status quo And bring computing to rural communities What’s different: 1. Data gets cheaper 2. Data gets more accurate 3. Data gets more relevant The game has changed everywhere: Networks of information have changed our lives Why can’t we extend it to African Agric? information (MIS) consists of three elements To be successful: 1 2 technology deployment 3 biz model technology Traditional MIS of prices, news, offers, on WEB Powerful Price analysis tools... Linking 533 markets in WA Maps showing prices, offers, users... SMS Automatic SMS Alerts... GROUPS providing powerful tools to private and public groups is how the platform grows GroupWare can reduce their costs and improve their services to members... Paid members can advertise their goods… Offers, products & services, address... Voacanga africana Impacts of using realtime/SMS based communications George Boateng, Exporter ROLES collector Subagent agent broker exporter PRICES/kg $1.5 $2 $4 $6 $7 61 DAYS 4-7 7-12 12-15 15-20 4-7 PROFIT 21% 7% 21% 29% 21% ROLES collector agent exporter PRICES/kg $2 $4 $7 29 DAYS 4-7 12-15 4-7 PROFIT 29% 29% 43% These groups will allow members to submit more than just prices or offers.... Farm Tracking Harvest Tracking Inventory tracking Pest Tracking Disease Tracking Transport Alerts Imagine the value to credit bureaus... the model deployment We target the bottom half of the pyramid large exporters p Issues: Poverty Literacy Culture Access Trust medium business Small traders & producers Good coverage trust mediation tradepoint franchises commission-based selling & supporting subscriptions 100% Public > 80% Private private ngos MIS 1.0 gov Private ngos government MIS 5.0 5 years? Use the platform as a cost reduction strategy & toolset to private sector And leverage their data as MIS Distribution Channel Issa Keita in Mali exporting shea to France “Madam Cassava” from Kano putting here kids through college Results so far • • • • • 600 markets 900,000 prices 15 countries +$1m deals 12,000 trained • 150 ABIPs • Powerful platform • Strong PPP A big challenge • • • • • • • Hard to attribute Traders only Inconsistent data Opportunistic deals No revenues Disappointing usage No marketing! the model How to generate revenues to pay for the services: 1 2 3 Group Subscriptions Indiv Subscriptions Sponsorships & ads Basic Free Gold $800 Platinum $2,600 Requests 3 cents Basic Gold $20/pa $60/pa Direct Marketing SMS branding Data Mining 50,000 traders signup for gold = $3m/year Is it sustainable? $500,000/year in expenses… 50 gold groups 500 regular groups 40,000 regular subscribers 5,000 gold subscribers = 130,000 = 400,000 = 800,000 = 300,000 = $1,630,000 TradeNet in 2008 expenses revenues $700,000 $350,000 Afghanistan Pakistan Vietnam Honduras Tanzania Uganda Mozambique Madagascar Sri Lanka Ghana Nigeria Cameroon Niger Mali Burkina Faso Cote D’Ivoire My business innovation comes from Education Experience Capital How can the Bank create the enabling Environment for many more TradeNets? Thank you! Mark Davies [email protected] Rice price over last 10 years 1000 900 800 700 600 500 400 300 200 100 0 Agronet, May 2008 Thai long grain rice, Bangkok