Water Issue Brief - 22 Putting research knowledge into action Adaptive Innovation Scaling - Pathways from Small-scale Irrigation to Sustainable Development Scaling solar-based irrigation in Ghana’s Upper East Region: A demand- supply linkage approach The context Key issues Numerous innovative solutions exist The potential of solar-based irrigation to increase agricultural productivity and reduce poverty has long been recognized in countries with insufficient and to increase agricultural productivity, unreliable power grids, abundant sunshine, and scarce or unpredictable water enable irrigated farming and enhance resources. However, large-scale access to solar-based irrigation technologies by water management under changing smallholder farmers and vulnerable groups such as women and youth is often climatic conditions. However, most complicated by weak supply chains, high upfront investment costs, a lack of solutions are not available on a access to suitable financing and a poor understanding of local market needs. large scale to smallholder farmers Moreover, limited access to output markets for irrigated agricultural products and marginalized groups such as discourages farmers from investing in solar-based irrigation. women and youth. Scaling these solutions, such as solar-based In Ghana’s Upper East Region, the International Water Management Institute irrigation, requires co-identifying and (IWMI) worked with farmers, public and private sector actors, and other co-developing ‘best-fit’ innovation stakeholders in the irrigated vegetable value chain (IVVC) to co-identify a bundles that are affordable, ‘best-fit’ bundle of solar-based irrigation technologies and services (Minh et accessible and relevant to the local al. Forthcoming). The bundle addresses many of the current barriers to solar- based, farmer-led irrigation. A scaling pathway was then co-developed and context. It also requires co-developing operationalized to link demand and supply along the IVVC and thereby extend the and operationalizing a scaling reach of the bundle throughout the Upper East Region and beyond. pathway based on strong demand- supply linkages along agricultural value chains. Key messages ■ A best-fit bundle of solar-based irrigation technologies and services was co-identified that addresses many of the current barriers to solar-based, farmer-led irrigation. ■ A scaling pathway was then co- developed to link demand and supply for the bundle along the irrigated vegetable value chain. ■ Although specific to the Upper East Region, the bundle is adaptable and scalable to other regions in Ghana. Farmers attend a Pumptech field demonstration in Bawku, Ghana (photo: Thai Thi Minh/IWMI). Constraints to innovation adoption more chemical fertilizers, pesticides and insecticides in the dry season to enhance crop growth. Irrigated vegetables are commonly grown in the dry season (November to March), although market demand is always strong. Action research approach to scaling Depending on the income these crops generate, farmers regard them as high- or low-value vegetables. Low-value vegetables are Under the Innovation Lab for Small-Scale Irrigation (ILSSI) mainly leafy greens such as amaranth, bitter leaf and hibiscus. and Africa Research in Sustainable Intensification for the Next Women see these vegetables as ‘their crops’, which they grow Generation (Africa RISING) projects, and the CGIAR Research in small home gardens primarily for their own consumption. Program on Water, Land and Ecosystems (WLE), which ended Any surplus is sold at local markets. High-value vegetables in December 2021, IWMI used an action research approach include pepper, eggplant, onion, tomato, watermelon, okra and to co-develop the best-fit innovation bundle and scaling cabbage, which are considered cash crops in the dry season. Men pathway. The approach has four interrelated steps: analyze, typically grow high-value vegetables, which require a significant co-develop, engage and reflect (Minh and Schmitter 2020). investment throughout the cropping season in the form of inputs Together, the steps aim to provide a better understanding of (such as fertilizers and pesticides), irrigation and labor. the local context and engage stakeholders in co-developing solutions to the identified challenges. The engage and reflect Farmers use different water sources to cultivate irrigated steps are repeated throughout the process to ensure solutions vegetables, including dams, small reservoirs and wells or are relevant and continually improved. The following sections boreholes. They also use a variety of irrigation equipment such provide an overview of the best-fit innovation bundle identified as buckets and watering cans, treadle pumps, petrol or diesel and the demand-supply linkage pathway co-developed to scale pumps, solar-powered pumps, open gravity systems and drip the bundle. irrigation systems. Buckets, watering cans and treadle pumps are labor and time intensive and limit the area a farmer can irrigate. Scalable solar-based irrigation bundle Petrol and diesel pumps help reduce the labor and time needed for irrigation but come with a myriad of challenges. They include The analyze and co-develop steps of the action research noise and environmental pollution, high fuel costs, substantial approach determined the best-fit solar-based irrigation bundle maintenance and repair costs, and the need for replacements for the IVVC (Figure 1). Although specific to the Upper East after three to five years of continuous use. Region, the bundle is adaptable and scalable to other regions in Ghana. It comprises solar-powered irrigation pumps, a pay-as- Another challenge for irrigated vegetable production is water you-own (PAY-OWN) flexible financing modality, and pre- and availability. By February, dams and other surface water reservoirs after-sales services. have dried up. Although groundwater resources are abundant, the cost of drilling a borehole and buying a motorized pump Solar-powered irrigation pumps of varying capacity and is too high for many farmers. As a result, vegetable cultivation price are imported from Germany and distributed in Ghana by beyond February is rare. In addition, the high cost of inputs is a Pumptech, a private irrigation equipment supplier. The pumps constraint to irrigated vegetable production. Farmers often use are designed specifically for off-grid water pumping and sold as Flexible financing modality based on farmer segmentation Solar-powered irrigation pumps of varying capacity Pre-sales After-sales services services Figure 1. Elements of the solar-based irrigation bundle. IWMI • 2 Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach a package, which includes the pump, motor and solar panels. capital. These services for individual farmers or groups include The pumps can be linked to an interactive app to collect data a field investigation to identify the land size and irrigated crops, on pump use. This allows farmers to monitor water usage and water source, existing irrigation investment and irrigation plan. reduce waste. In addition, the ability to operate the pumps remotely using a mobile device gives farmers flexibility and After-sales services cover various activities such as pump saves time for other activities. installation, training on pump operation and maintenance, and remote monitoring of pump performance. The PAY-OWN flexible financing modality allows farmers to use the irrigation equipment while making small, regular Farmer segments for the irrigation bundle payments until the total cost of the pump is paid off. The modality allows more farmers to overcome the initial capital The analyze and co-develop steps also identified four different barrier to acquire solar technology. All pumps can be sold farmer segments who stand to benefit from the solar-based under a PAY-OWN arrangement and connected to the interactive irrigation bundle. The segments are resource-rich farmers, app, which also tracks payments. mobile farmers, resource-limited farmers and farmer groups (Table 1). Capturing farmer segments is critical for pump Pre-sales services help customize the type of pump and suppliers to diversify their supply models and to target specific accessories to fit a farmer’s land size, water access and financial segments with the most suitable pumps. Table 1. Farmer segments and their characteristics. Characteristics Resource-rich farmers Mobile farmers Resource-limited farmers Farmer groups Land and water • Own a relatively large • No ownership of • Permanent access to • Individual ownership access land area irrigated land cultivated land of cultivated land • Able to control water • Access mainly to • Access mainly to with possible access sources surface water  groundwater to common land for collective production • Access mainly to groundwater Irrigation and • Advanced irrigation • Individual or informal • Individual/group • Individual or collective production system managed by group management management management arrangement individual farmer • Potential to expand production Irrigated • Focus on high-value • Flexible in terms of • Mainly cultivate leafy • Mainly cultivate leafy vegetable value vegetables irrigation and irrigated green vegetables green vegetables for chain  crops regular cash income Marketing  • Diverse marketing • Direct sale at farm gate • Direct sale at markets • Direct sale at markets and and access to market and farm gate farm gate information to manage price-related risk Financial capital • High potential to invest • Relatively high • Very limited financial • Limited financial capacity and potential in solar-powered potential to invest capital, especially to invest in solar-powered irrigation as an in solar-powered women farmers irrigation pumps individual irrigation pumps • Limited potential to • Potential to invest • Individual or group invest in solar-powered collectively in relatively investment  irrigation pumps high-capacity solar- powered irrigation pumps Pump • High-capacity pump • Low-capacity and • Low-/medium-capacity • Medium-/high-capacity preferences with payment schedule movable pump pump and multiple uses pump • Pump with or without • Multiple uses depending payment schedule on collective financial management and mobilization Source: Ofosu and Minh 2021. Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach IWMI • 3 Co-designing the scaling pathway innovative farmers and output offtake companies. In the ideal scenario, nongovernmental organizations and government- Based on the results of the co-develop step, IWMI partnered funded projects complement the activities of these actors. with Pumptech and the Regional Agricultural Department of the Ministry of Food and Agriculture (MoFA) to co-design a demand- IWMI co-organized demand-supply linkage workshops in the supply linkage scaling pathway to scale the solar-based towns of Navrongo, Bawku and Bolgatanga to bring these irrigation bundle (Figure 2) and operationalize the pathway with actors together and establish stronger network linkages. In other partners. total, workshop participants suggested 144 individual farmers and 15 farmer groups as potential customers for Pumptech. As a private sector partner, Pumptech supplies PAY-OWN Several participants also expressed an interest in becoming pumps to farmers and establishes sales and service networks to sales and service agents for the company. Three WhatsApp expand its market in the Upper East Region. As a public sector groups were set up to sustain and expand these networks. In partner, the Regional Agricultural Department helps increase addition, Pumptech introduced a commission scheme as an Pumptech’s visibility by mobilizing other actors in the IVVC. As incentive to increase sales through both existing and newly the research partner, IWMI provides knowledge, expertise, tools established networks. Moreover, Pumptech and MoFA are and services to de-risk investment for Pumptech, and develops collaborating to lead the future organization of district-level inclusive business models for solar-based irrigation that target workshops. marginalized market segments and boost sustainable market development for solar-based irrigation. The demand-supply 2. Increase visibility and outreach linkage scaling pathway consists of four components, as described below. This component aims to promote solar-based irrigation products and services in the region as well as tailor pump 1. Establish sales and service networks supply models to specific market segments. To achieve this, Pumptech organized a series of field demonstrations and is This is a core component of the scaling pathway and aims to building awareness of its pumps through farmer meetings, upgrade the existing network of actors involved in supplying WhatsApp groups and extension delivery, among other solar-powered irrigation pumps. In the current network, channels. In collaboration with MoFA, Pumptech also opened linkages between different actors are weak and fragmented. a new regional branch office in September 2021. Overall, these The ideal network involves the active participation of all actors efforts helped Pumptech to achieve an 80% increase in pump such as pump distributors, borehole drillers, input dealers, sales in 2021 compared to 2020 (WLE 2021). 1 Establish sales and service networks • Organize a series of demand-supply linkage workshops • Set up WhatsApp groups to engage partners • Capitalize on existing networks by offering commissions 2 Increase visibility and 3 Capitalize on sales and outreach contracts • Create awareness • Identify and engage with • Establish new Pumptech potential new clients for the office in Upper East Region irrigation bundle • Demonstrate pumps • Establish user accounts to • Increase outreach manage payments • Increase sales of PAY-OWN Demand pumps • Resource-rich Supply of farmers solar-powered irrigation • Mobile farmers pumps • Resource-limited 4 Facilitate sustainability and inclusivity farmers • Co-develop data-driven tools to enable • Farmer groups inclusive business • Facilitate systemic changes in scaling solar-based irrigation in Ghana Figure 2. Demand-supply linkage scaling pathway for solar-based irrigation. IWMI • 4 Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach Participants in the demand-supply linkage workshop in Bolgatanga, Ghana (photo: Thai Thi Minh/IWMI). 3. Capitalize on sales and contracts PAY-OWN flexible financing modality is especially beneficial for resource-limited farmers, many of whom are women, who lack This component aims to increase pump sales in the Upper East the collateral or credit history usually required to obtain a loan. Region and Ghana, in general. The opening of the new branch office allows further tailoring of the solar-based irrigation A digital marketing and data management system aims to bundle to diverse farmer segments and closer engagement improve business management and the efficiency of marketing with high-potential individuals and groups identified during efforts, especially those targeting the more challenging but the demand-supply linkage workshops and elsewhere. In promising small-scale irrigation market. The system also addition, Pumptech partnered with Deutsche Gesellschaft reduces errors in capturing customer information, improves für Internationale Zusammenarbeit (GIZ) to de-risk its own information retrieval time and allows for comparative analysis investment in PAY-OWN pumps. Specifically, GIZ subsidizes across products, market segments and businesses. 50-60% of the pumps sold under the PAY-OWN scheme to reduce Pumptech’s risk in the event that a farmer defaults on Customization of solar suitability mapping. An interactive payments. online solar suitability mapping tool, developed by IWMI, helps users identify suitable areas for solar-based irrigation 4. Facilitate sustainability and inclusivity depending on water sources and pump characteristics. The tool has been updated for Ghana to include distribution centers and This component aims to ensure the sustainable and inclusive enabling actors in the IVVC, with the aim of targeting marketing scaling of solar-based irrigation. A key aspect of the component initiatives and interactions more effectively. is the co-development of data-driven tools that enable private sector partners to target their products and services Facilitating systemic changes to the right people in the right way. These tools include client segmentation, digital marketing and data management, and At a broader level, IWMI undertook additional activities that customization of solar suitability mapping. focus on facilitating systemic changes in scaling solar-based irrigation. Targeting is particularly relevant when it comes to reaching women farmers, who are more likely to face difficulties Facilitating the local scaling ecosystem aims to enhance accessing resources such as land, credit and information that the demand-supply linkage scaling pathway by engaging would enable them to invest in irrigation. Furthermore, the actors within the ecosystem, such as community leaders, local Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach IWMI • 5 technologies may fail to consider the social and economic dynamics of the target group as well as the lack of an established rural distribution network for these technologies. Moreover, government agencies and public service providers emphasize supply-side approaches while neglecting the demand side. As a result, the development of solar-based irrigation markets is limited to the wealthy market segments such as resource-rich farmers. Among the enabling factors is the advantage that the solar- based irrigation bundle addresses both the high fuel costs of diesel and petrol pumps and the high initial investment that farmers often face in acquiring the solar-based irrigation technology. In addition, there is the significant degree of engagement of IVVC actors, especially irrigation equipment suppliers. Other key actors include extension agents, seed and fertilizer providers, microfinance groups, borehole drillers, and chiefs and traditional authorities. Multi-stakeholder dialogues aim to bring actors together and facilitate change (photo: Maxwell Twumasi/IWMI). The way forward The potential of solar-based irrigation to increase agricultural authorities and microfinance institutions, in co-developing productivity and reduce poverty is substantial. To maximize this and scaling bundles of solutions that strengthen the adoption potential, the following activities are recommended to further of PAY-OWN pumps. Facilitation also includes scaling these strengthen the solar irrigation scaling pathway described in this bundles to other regions in Ghana. brief. Facilitating multi-stakeholder dialogues aims to create • Investing capital to sustain sales and service networks and open organizational and institutional spaces that bring actors enable private sector companies to expand in Ghana’s Upper together and offer opportunities for learning, innovation, action East Region and beyond. Attracting investment to de-risk the and change while stimulating private sector investments and PAY-OWN flexible financing modality is essential for managing partnerships (Minh et al. 2020). the risk of customers who are unable to fulfill their payment obligations as well as potential failures in technology supply Institutional capacity building aims to build greater trust chains. These measures will ensure that companies can tailor and enable knowledge sharing and collaboration between the their business and financing models to their target market private sector, public sector and research institutions, thereby segments in the most effective way. contributing to an enabling environment for scaling solar-based irrigation in an economically and environmentally sustainable • Strengthening farmers’ collective action is key to improving way. their access to and benefits from input and output markets as well as mobilizing financial capital for investments in Factors influencing the scaling pathway solar-based irrigation. The government’s focus on supply-side approaches to irrigation development has made the promotion Several factors potentially hinder or enable the demand-supply of collective action in farmer groups a challenge. linkage scaling pathway. Hindering factors include solar panel maintenance and gender considerations along the IVVC. There is • Engaging actors along the IVVC is crucial for the widespread also the issue of limited financial and human capital. adoption of solar-based irrigation by farmers. By engaging these actors, existing interventions supporting farmers’ Group dynamics such as leadership style, transparency, and adoption of irrigation technologies and agronomic practices can social and cultural norms may also influence the effective be leveraged in the scaling pathway. Regional departments of management of group-acquired solar-based technology. MoFA can act as operational hubs connecting farmers with most Farmers’ poor bargaining power may lead to low selling prices services and resources required for irrigated agriculture as well for irrigated vegetables and limited access to agricultural inputs as pump distributors’ products and services. and services. • Establishing multi-stakeholder dialogues and cooperation In addition, government subsidies and uncoordinated on scaling solar-based irrigation can bring actors together to interventions for value chain development have led to the stimulate private sector investments and partnerships, inform duplication of efforts and a reduction in the benefits that public policies and programs, and trigger transformation at farmers may have accrued. The introduction of solar-based the system level. IWMI • 6 Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach A farmer with her irrigated vegetables in Ghana (photo: Nana Kofi Acquah). Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach IWMI • 7 References Minh, T.; Schmitter, P. 2020. Co-identification of value chain-based pathway for scaling of irrigation technologies and services: Cases in Basona Worana and Lemo woredas in Ethiopia. Nairobi, Kenya: International Livestock Research Institute (ILRI). https://hdl.handle.net/10568/110592 Minh, T.T.; Cofie, O.; Lefore, N.; Schmitter, P. 2020. Multi-stakeholder dialogue space on farmer-led irrigation development in Ghana: An instrument driving systemic change with private sector initiatives. Knowledge Management for Development Journal 15(2): 98–118. (Special issue: The Unusual Suspect? The Private Sector in Knowledge Partnerships for Agricultural and Rural Development). https://hdl.handle.net/10568/109855 Minh, T.T.; Ofosu, A.; Dickson, D. Forthcoming. Demand-supply linkage pathway to scale solar-based irrigation along irrigated vegetable value chains in Upper East Region, Ghana. Ibadan, Nigeria: International Institute of Tropical Agriculture (IITA). Ofosu, A.; Minh, T.T. 2021. Small-scale irrigation dialogue space: Understanding the scalability of solar-powered irrigation in Ghana: Market segmentation and mapping pump suitability. Colombo, Sri Lanka: International Water Management Institute (IWMI). Available at https://ilssi.tamu.edu/files/2021/08/20210816-MSD-Ghana-Report-Submitted-Revised-AK.pdf (accessed on October 31, 2022). WLE (CGIAR Research Program on Water, Land and Ecosystems). 2021. Data-driven tools enable solar irrigation companies in three sub-Saharan African countries to target their products and services to the right farmers in the right way, boosting technology uptake and promoting gender equality. Reported in Water, Land and Ecosystems Annual Report 2021. Outcome Impact Case Report. https://hdl.handle.net/10568/121751 For more information, or to request the full report on which this brief is based, contact: Thai Thi Minh (t.minh@cgiar.org) IWMI West Africa Regional Office CSIR Campus, Agostinho Neto Road, Council Close, Airport Residential Area, Accra, Ghana Mailing address: PMB CT 112 Cantonments, Accra, Ghana Citation International Water Management Institute (IWMI). 2023. Scaling solar-based irrigation in Ghana’s Upper East Region: a demand-supply linkage approach. Adaptive Innovation Scaling - Pathways from Small-scale Irrigation to Sustainable Development. Colombo, Sri Lanka: International Water Management Institute (IWMI). 8p. (IWMI Water Issue Brief 22). doi: https://doi.org/10.5337/2023.201 / solar powered irrigation systems / innovation scaling / supply and demand / innovation adoption / small-scale irrigation / sustainable development / smallholders / farmer-led irrigation / technology / pumps / agricultural productivity / irrigated farming / vegetables / agricultural value chains / financing / business models / market segmentation / marketing / multi-stakeholder processes / women / youth / private sector / investment / inclusion / groundwater / water management / climate change / poverty reduction / collective action / outreach / Ghana / Copyright © 2023, by IWMI. All rights reserved. IWMI encourages the use of its material provided that the organization is acknowledged and kept informed in all such instances. Please send inquiries and comments to IWMI-Publications@cgiar.org For access to all IWMI publications, visit www.iwmi.org/publications/ The International Water Management Institute (IWMI) is an International Water international, research-for-development organization that works Management Institute (IWMI) with governments, civil society and the private sector to solve water problems in developing countries and scale up solutions. Through Headquarters partnership, IWMI combines research on the sustainable use of water 127 Sunil Mawatha, Pelawatte, and land resources, knowledge services and products with capacity Battaramulla, Sri Lanka strengthening, dialogue and policy analysis to support implementation Mailing address: of water management solutions for agriculture, ecosystems, climate P. O. Box 2075, Colombo, Sri Lanka change and inclusive economic growth. Headquartered in Colombo, Tel: +94 11 2880000 Sri Lanka, IWMI is a CGIAR Research Center with offices in 14 countries Fax: +94 11 2786854 IWMI is a CGIAR Research Center and a global network of scientists operating in more than 30 countries. Email: iwmi@cgiar.org www.iwmi.org IWMI • 8 Water Issue Brief 22 • Scaling solar-based irrigation in Ghana’s Upper East Region: A demand-supply linkage approach