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Needs Assessment Report - Women in Trade Information Platforms Requirements Assessment (Kenya)

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In Kenya, women in trade comprise a diverse group of business operators with varied and dynamic business and information needs. This assessment maps and segments women traders and carry out a thorough assessment of their information requirements, including identifying the formats in which information is most useful to them and the information channels that are best suited to their needs. This assessment will guide the development of information platforms that will add value to women’s trading activities and thereby improve the socio-economic conditions of women involved in trade in East Africa. This assessment focuses on four subsamples of women in trade: producers; cross-border traders; urban traders; and exporters/light processors. Sauti East Africa conducted a series of quantitative surveys, focus group discussions, and key informant interviews with each subsample, to identify these needs. The objective of this report is to summarize the needs of the different groups of women in trade in Kenya.
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Needs Assessment Report
Women in Trade Information Platforms Requirements Assessment
11 November 2018
Table of Contents
LIST OF ACRONYMS ................................................................................................................ 3
EXECUTIVE SUMMARY ........................................................................................................... 4
1. BACKGROUND AND OBJECTIVES .............................................................................. 6
2. METHOD NOTE ............................................................................................................. 6
3. INFORMATION NEEDS OF WOMEN IN TRADE ........................................................... 8
4. INFORMATION CHANNELS FOR WOMEN IN TRADE ................................................14
5. INFORMATION TECHNOLOGY CAPACITIES ..............................................................19
6. CONSIDERATIONS FOR FUTURE INFORMATION PLATFORMS ..............................21
7. AUTHOR CONTACT DETAILS......................................................................................22
3
LIST OF ACRONYMS
AFIPEK
Kenya Fish Processors and Exporters Association
AGMARK
Agricultural Market Development Trust
AWAN
African Women Agribusiness Network
AWEP
African Women's Entrepreneurship Program
CBT
Cross Border Trader
EAC
East African Community
EAGC
East African Grain Council
EATTA
East Africa Tea Trade Association
EAWiBP
East African Women in Business Platform
FGD
Focus Group Discussion
ICT
Information and Communications Technology
KAM
Kenya Association of Manufacturers
KAWBO
Kenya Association of Women Business Owners
KEBS
Kenya Bureau of Standards
KENASVIT
The Kenya National Alliance of Street Vendors and Informal Traders
KEPSA
Kenya Private Sector Alliance
KII
Key Informant Interview
KNCCI
Kenya National Chamber of Commerce and Industry
KTGA
Kenya Tea Growers Association
OWIT
Organization of Women in International Trade
SMS
Short Message Service
USSD
Unstructured Supplementary Service Data
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EXECUTIVE SUMMARY
In Kenya, women in trade comprise a diverse group of business operators with varied and
dynamic business and information needs. This assessment maps and segments women
traders and carry out a thorough assessment of their information requirements, including
identifying the formats in which information is most useful to them and the information
channels that are best suited to their needs. This assessment will guide the development of
information platforms that will add value to women’s trading activities and thereby improve the
socio-economic conditions of women involved in trade in East Africa.
This assessment focuses on four subsamples of women in trade: producers; cross-border traders;
urban traders; and exporters/light processors.
Sauti East Africa conducted a series of quantitative surveys, focus group discussions, and key
informant interviews with each subsample, to identify these needs. The objective of this report is
to summarize the needs of the different groups of women in trade in Kenya.
Information Needs
The current information content needs of the different groups of women in trade were assessed
in terms of existing levels of relevance and accessibility to women in trade. Common information
content needs across all groups of women in trade were market linkages and financing
opportunities, which were highlighted
Information Needs for Women in Trade
CBTs
Urban Traders
Exporters /
Light
Processors
In order of
need
(identified
by survey)
1. Market
Linkages
2. Financing
Opportunities
3. Border
Procedures
1. Financing
Opportunities
2. Market
Linkages
3. Market Prices
1. Market
linkages
2. Financing
opportunities
3. Taxes and
tariffs
Information Channels
Existing and potential information channels were assessed based on their usage ubiquity (the
extent to which the channel is commonly used to receive business information) and preferability
(the extent to which the channel is preferred) to women in trade.
There were commonalities between CBTs and urban traders, choosing mobile phones, one-on-
one conversations and radio as their three preferred information channels. Mobile phone and
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radio and sensitization workshops were preferred by producers. Conversely, Email and Social
Media / WhatsApp were identified as preferred channels for exporters/light processors.
This report is part of a series, which includes a stakeholder mapping, and a baseline statistics
report, conducted by Sauti in fulfillment of an assignment (Women in Trade Information Platforms
Requirements Assessment) for TMEA.
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1. BACKGROUND AND OBJECTIVES
The objective of this assignment is to map and segment women traders and carry out a
thorough assessment of their information requirements, including identifying the formats in
which information is most useful to them and the information channels that are best suited
to their needs. This assessment will guide the development of information platforms that will add
value to women’s trading activities and thereby improve the socio-economic conditions of women
involved in trade in East Africa.
This report is part of a series, which includes a stakeholder mapping, and a baseline statistics
report, conducted by Sauti in fulfillment of an assignment (Women in Trade Information Platforms
Requirements Assessment) for TMEA.
2. METHOD NOTE
This needs assessment is informed by in-person surveys, focus group discussions, key informant
interviews, and mobile surveys. The table below presents the sample sizes, data collection
techniques, and locations of the data that inform this report. In total, 434 women in trade engaged
for the information used throughout this report. A full description of the data is available in the
assignment’s complementary baseline report.
Category
Direct Data Survey
Mobile/Online Data
Collection
FGDs
Women Cross-
Border Traders
52 at Busia
53 at Namanga
29 respondents via Sauti
mobile platform survey
(various locations)
1 FGD in Busia (6-8
women)
1 FGD in Namanga (6-8
women)
Women Urban
Traders/SMEs
35 at Port Victoria
37 at Bungoma
35 at Nairobi Marikiti
19 respondents via Sauti
mobile platform survey
(various locations)
1 FGD in Nairobi (6-8
women)
1 FGD in Bungoma (6-8
women)
Women Producers
57 at Bungoma
51 at Nairobi
1 FGD in Nairobi (6-8
women)
1 FGD in Bungoma (6-8
women)
Women Exporters/
Light Processors
- 24 respondents via
online survey
1 FGD in Nairobi (6-8
women)
Interviewed KIIs: MOA, KenTrade, EPC, County Gov (CoG), NAFIS (MOA), Sauti East Africa,
SheTrades, SokoPepe, Tulaa, AGMARK, WeFarm, EATTA, EAGC - RATIN, EAWiB (Min EAC),
JoyWo, AFIPEK, KEPSA, AWEP, OWIT.
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Descriptions of the subsamples are presented here:
Subsamples of Women in Trade
Women Cross Border
Traders
These are traders who source their wares from one country
and sell in another country within the East African community.
Cross border traders usually cross between countries on foot
and therefore interact with customs on regular basis. The
women traders under this category were derived from the
border crossings of Busia (KE/UG) and Namanga (KE/TZ).
Women Urban traders /
SMEs
These are traders that sell their wares in the urban settings,
usually at stalls or small/informal shops. The study areas for
this category of women were Bungoma, Budalangi and Nairobi
Women Producers
These are women farmers that are either involved in crop or
livestock production or both. In this category, the producers
were derived from Bungoma and Muranga
Women Exporters / Light
Processors)
These are international traders mostly targeting markets
outside of the EAC including Europe and the Americas.
Known limitations and mitigation techniques
While the methodology has been designed to minimize relevant limitations, we acknowledge the
following challenges
- Population representativeness is unclear. Women in trade typically represent a hidden
population: population estimates are often contentious given contextual considerations of
trader informality, multiple sources of income, the mobile nature of trade, etc. Due to these
contextual challenges, a probability sample based on randomized selection cannot be
accurately determined. Instead, we employed a nonprobability-based sampling method;
specifically, we employed a purposive sampling to guide our quantitative sample
selection.
1
- Longitudinal and spatial limits. Survey data collection and focus group discussions
focused on six locations throughout Kenya. While these locations were selected, with
guidance from TMEA, for their relevance to their assignment, the spatial distribution of the
target sample extends beyond these locations. As a result, the external validity of the
findings may be conditioned by unknown spatially determined variables. Similarly, the data
collection methodology focused primarily on collecting cross-sectional data, without any
temporally longitudinal variation. Given that our data provides a snapshot in time, external
validity may be conditioned by unobserved temporal variables.
- Potential selection bias. Given the context of the study, it was inevitable that certain
information channels would be engaged in order to mobilize data survey collection,
thereby introducing potential selection bias within our findings. For instance, our reliance
1
See the inception report for a more complete discussion of this methodology
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on cross-border trade associations may present an overrepresentation of trade networks
as a preferred channel.
Given these concerns, this study employed several methodological techniques to improve the
external and internal validity of our findings. The first technique was to exceed the minimum
sample size among each subsample of women in trade necessary for statistical comparison. The
second technique relates to data triangulation with different data collection methods. In this way,
data collected via one method can be validated against data from another method. Lastly,
interviews with focus group discussions, area specialists, and stakeholders validated our data
and consistently verified our internal logic as consistent with their experiences with the larger
target population.
3. INFORMATION NEEDS OF WOMEN IN TRADE
This section provides an analysis of current information content needs in terms of existing levels
of relevance and accessibility to women in trade.
Women in trade perceive two forms of information gaps between the content that is
relevant to operating their businesses and the content they can readily access.
The first information gap, unmet demand, is based on the size of the population with unmet
demand for a given type of content. For instance, the population size of CBTs with unmet demand
for market linkages was largest. The second information gap of accessibility is based on the
ratio of women in trade who do not have access to a given type of content. For example, the ratio
of CBTs who demanded business registration information but lacked access was highest. Table
1 below ranks, in descending order, the top three types of information content with information
gaps among CBTs.
In targeting unmet demand, information delivery can improve the availability of highly relevant
information to under-served groups in different categories of women in trade. In addressing
accessibility gaps, information dissemination can improve accessibility of relevant content which
is currently being under-delivered by information providers.
Table 1: Information Gaps of CBTs
Gap
Rank
Unmet Demand
Information Gap #1
Accessibility Gap
Information Gap #2
1
Market Linkages
Business Registration
2
Financing Opportunities
Financing Opportunities
3
Border Procedures
Product Quality and Standards
Table 2: Information Gaps of Urban Traders
Gap
Rank
Unmet Demand
Information Gap #1
Accessibility Gap
Information Gap #2
1
Financing Opportunities
Financing Opportunities
9
2
Market Linkages
Product Quality and Standards
3
Product Quality and
Standards
Market Prices
Business Registration
Table 3: Information Gaps of Producers
Gap
Rank
Unmet Demand
Information Gap #1
Accessibility Gap
Information Gap #2
1
Pest and Disease Control Measures
Financing Opportunities
2
Financing Opportunities
Market Linkages
3
Market Linkages
Post-Harvest Handling and Availability
Table 4: Information Gaps of Exporters/Light Processors
Gap
Rank
Unmet Demand
Information Gap #1
Accessibility Gap
Information Gap #2
1
Financing Opportunities
Financing Opportunities
2
Market Linkages
Market Linkages
3
Taxes and Tariffs
Taxes and Tariffs
Market prices information and market linkages information is highly relevant for women in
trade.
Our baseline survey results showed that market prices were the most important type of
information for all surveyed women in trade. 90.5% of urban traders, 78.1% of CBTs, 61.2% of
producers viewed market prices as the most important to operating their businesses. Further
focus group discussions specified that CBTs, urban traders, producers would use market prices
information to determine the most profitable commodities and competitive markets from which to
source or sell goods. With this information, women traders and producers would compare the
profitability of different commodities across marketplaces, calculate their market value given
related taxes/tariffs, and make informed decisions to maximise profit potential based on total likely
costs. Reliable market prices information would reduce the risks of product diversification and
enhance growth planning.
All categories of women in trade perceived high unmet demand in the process of seeking
information on market linkages. Further, 69.5% of urban traders and 63.8% of CBTs identified
market linkages, connecting sellers and buyers, as the most important type of business
information that they needed, but could not find. Producers specifically described challenges in
finding adequate buyers to directly deal with or identifying reputable brokers to arrange profitable
business transactions, resulting in either low business activity or high middlemen commission
fees. Lack of producer access to information about relevant market linkages and fees charged by
comparable intermediaries also weakened their bargaining power when negotiating for fair
commission rates with brokers.
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For exporters / light processors, market linkages information were indicated as the most important
(for 40.9% of exporters / light processors) and most relevant information type (for 82.6% of
exporters / light processors), despite few exporters / light processors indicating that they had
access to relevant market linkages information. Trader focus groups discussed that market
linkages information would increase sales, resulting in higher inventory turnover and improved
cash flow. More direct trade relationships between women traders and producers would also
reduce costs related to utilising brokers and other middlemen when sourcing goods.
Exporters/Light Processors information needs are significantly different from CBTs, urban
traders or producers.
Exporters / light processors had very different preferences compared to the other categories.
Their ordered their preference of the most important information to their business, in descending
order, as market linkages (selected by 40.9% of exporters / light processors), financing
opportunities (22.7%), and information on product quality standards (13.6%). FDGs with
exporters/ light processors suggested that few were concerned with market prices, like other
categories, which can source or sell their goods in domestic substitutable markets, but instead
preferred information on establishing linkages in new markets. Many exporters / light processors
indicated that they used trusted on-the-ground middlemen to source goods, which often provided
them with fixed market prices, which exporters / light processors used to evaluate whether they
could fill their orders from customers in markets abroad. Instead, exporters / light processors
suggested that establishing linkages in markets abroad was more challenging. Exporters / light
processors described that they often find customers in markets via social media (Facebook,
Instagram) from customers they haven’t met in person: either by using established middle-men
or international brokers for retailers.
Like other categories of women in trade, exporters/light processors indicated that information on
financing opportunities were limited. However, concerns were often derivative of other factors.
For instance, understanding the size of the market a necessary consideration for financing
was dependant on estimating foreign market size, already complicated with challenges to finding
market linkages. Further, information on product quality standards was often also difficult to find,
as exporters / light processor often found it challenging navigating the regulatory environments of
foreign markets.
Cross-border traders and producers and have distinct sector-specific information needs.
Cross-border traders and producers also indicated distinct sector-specific information needs
relative to the other categories. 42.9% of cross-border traders suggested that border procedures,
for instance was important to their businesses. Contrast this with less than 1% of urban traders
indicated that information about border procedures was important to their business. In FGDs,
CBTs indicated that not knowing the border procedures wasted time and created issues with
clearing their goods. Knowing this information, they said, helps them to get to the market on time
and begin selling their goods.
Producers report an unmet demand when seeking information on pest and disease control
measures for crops and animals. Baseline survey results show that 45.4% of producers view pest
and disease control as the most important information for business operations. Focus group
discussions further suggest that producers who lack information on suitable pest and disease
control methods face difficulties in fulfilling new and existing orders or meeting certain product
quality standards. This information gap can result in profits and damaged customer relationships.
In focus group discussions, producers specified the need for information on organic ways to
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control pests and disease without overreliance on synthetic pesticides and chemical fertilizers.
With greater access to such information, producers can improve pest and disease control
measures, including through the use of organic pesticides that only affect intended pests and
reduce the chance of pest resistance to conventional pesticides.
Producers also experience an accessibility gap in the process of accessing information on post-
harvest handling practices. Baseline survey results show that 7.4% of producers view post-
harvest handling practices as the most important information for business operations. However,
25% of producers who valued this information did not have access to it.
Information regarding financing opportunities was lacking and poor quality across
categories of women in trade.
All categories of women in trade experience unmet demand and accessibility gaps in the course
of seeking information about financing opportunities. Baseline survey data show that 33.3% of
CBTs, 36.2% of urban traders, and 20.4% of producers viewed information about financing
opportunities, including relative advantages of traditional debt finance, alternative microfinance
and microcredit, table banking, and cooperative banking solutions, as important to overcoming
financial capital limitations. However, a significant number of CBTs, urban traders, and producers
have unmet demand when seeking to access information about different financing opportunities.
Women traders identified capital limitations as a major business growth constraint when incurring
upfront costs to source goods. Undercapitalised producers also faced cash flow challenges in
purchasing quality agricultural inputs and equipment to enhance farm growth, scale, and
diversification. However, women producers, traders, and exporters / light processors facing
capital limitations often lacked knowledge of how to apply for, or obtain, business financing, as
well as what different types of borrowing may entail. As a result, women in trade tend to overly
rely on traditional debt finance, for which their typically small-scale enterprises are poorly suited
to accessing, due in part to limited credit history, under-collateralisation, or lack of comprehensive
financial records. CBTs and exporters / light processors also perceived that lending institutions
failed to provide all of the information required to successfully apply for, and obtain, business
loans due to their focus on identifying eligible borrowers over disseminating information to
potential applicants. Without access to financing information, exporters / light processors can
seldom afford to travel abroad to attend export trade and business events, which provide crucial
opportunities for foreign customer base expansion.
In focus group discussions, CBTs and producers specified lacking information concerning interest
rates, processing fees, length of loan repayment period, and other financing terms and conditions,
including what each party must provide, grace periods, and what happens if the borrower defaults
on the loan. With this information, women in trade could better compare opportunities to determine
the most suitable financing instruments for their current and future business needs.
Information about relevant financing opportunities for women in trade is also currently under-
delivered by information providers. During key informant interviews (KIIs) with civil society
organisations and existing solution providers, stakeholders acknowledged the need for women in
trade to access information to identify and obtain affordable financing opportunities. However, the
inability of many women in trade to demonstrate eligibility for traditional financing opportunities,
such as ‘bankable’ assets/collateral or meeting minimum ratio requirements (e.g. current ratio,
fixed charge coverage, cash flow coverage, leverage ratios), pose challenges to providing
relevant content. For example, women traders and producers with limited business expertise may
factor sales and cost of goods sold in their income statement but mistakenly omit taxes or
insurance from net profit calculations. For those that are able to meet the minimum requirements,
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such as women exporters / light processors, the lengthy due diligence processes required by
traditional debt financing instruments also makes much of the available information irrelevant.
Such delays also prohibited women traders and producers from engaging in the scale of business
for which they initially needed external financing. Therefore, stakeholders struggle to deliver
information that women in trade would perceive as meaningfully expanding accessible financing
opportunities.
Other accessibility gaps stem from practical challenges with disseminating information when
sources of financing opportunities are disaggregated, and circulation efforts are duplicated,
across organisations. Existing information providers suggested a one stop shop’ information
platform to promote financing opportunities for women in trade.
KII participants discussed several existing solutions addressing accessibility gaps in financing
information for women in trade.
The East African Community (EAC) Secretariat has developed a Regional Strategy for
Promoting Women in Business for Socio-Economic Development. The regional strategy
seeks to address challenges faced by women in trade, including access to suitable
financing and legal title to land/property which could be used as loan collateral.
The African Women's Entrepreneurship Program (AWEP) links women in trade to more
accessible and affordable financing opportunities through its partnership with Project
Capital, a firm “leveraging seed capital and unique expertise to develop large-scale,
private sector, greenfield projects […] that become ‘magnets’ for investment, and attract
financing at the best possible terms.”
The Organization of Women in International Trade (OWIT), in partnership with the Kenya
Private Sector Alliance (KEPSA), work with a private development finance institution,
GroFin, to disseminate information on medium-term loans suitable for financing small and
medium-sized enterprises (SMEs).
Tulaa provides affordable short-term credit to women producers in the form of tailored
agricultural inputs to be paid back through mobile money payments (M-PESA PayBill) over
a 6-month lending period. Tulaa employs Account Managers to conduct in-person
consultations with producers and record their agricultural input preferences. For example,
a producer may request ten bags of fertilizer on credit. Tulaa Loan Officers will return to
the producer to assess the credit request. If approved, producers begin paying interest on
their loan after the first month of the lending period and the two months thereafter. The
loan enters repayment from months four through six. Tulaa’s financing currently targets
rural farmers producing potatoes and tomatoes in the counties of Nakuru, Narok, and
Machakos. Women producers in these counties who grow fast-growing crops, such as
potatoes, can sell their products before their loan enters repayment.
The East Africa Tea Trade Association (EATTA) hosts educational forums and meetings
for its membership to target the financing information needs of women tea producers,
exporters, and brokers.
Urban traders and CBTs also experience unmet demand and accessibility gaps when seeking to
obtain product quality and standards information. Baseline survey data show that 22.9% of urban
traders and 18.1% of CBTs viewed product quality, packaging, and safety standards information
as the most important content to business operations. A significant number of urban traders are
under-served when seeking to obtain information about product quality, packaging, and safety
standards. Focus group discussions with urban traders described the importance of information
to understand customer expectations of product standards and identify quality goods. KII
participants emphasised that foreign export buyers, such as multinational retailers, demand goods
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which meet stringent international product quality, packaging, and safety standards. For example,
traceability and sustainability commitments in fish and seafood processing are increasingly
essential demands of many foreign buyers. However, many women traders lack information on
product standards across different markets, as well as how and where to profitably source the
appropriate quality goods. Product certification is also insufficiently widespread to be useful to
urban traders and CBTs when sourcing quality goods. Although existing information providers,
including AWEP, the Kenya Plant Health Inspectorate Service (KEPHIS), and the Kenya Fish
Processors and Exporters Association (AFIPEK), are addressing the need for product quality,
packaging, and safety standards information among producers and exporters / light processors
(for whom the information is actually less prioritised), many urban traders and CBTs still lack
access.
While not many women in trade seek business registration information, those that do
suffer from accessibility gaps
CBTs and urban traders experience accessibility gaps in the process of acquiring information
about business registration requirements and procedures. 11.4% of surveyed CBTs and 7.6% of
urban traders viewed business registration requirements and procedures as the most important
content for business operations. However, information for CBTs and urban traders about business
registration procedures and requirements is being under-delivered relative to other content: about
half of those who said it was important to their business could not find the relevant information.
Focus group discussions with CBTs and urban traders indicate that improved access to business
registration information would enhance women traders’ understanding of their legal rights and
obligations as business operators. With this information, some women traders may also be able
to purchase business insurance. Existing information providers, such as KEPSA, are working to
increase accessibility of huduma centres for women traders to enhance familiarity with business
registration requirements and procedures.
Inadequate information on border-crossing procedures and requirements hurts CBTs and
exporters/light processors.
CBTs experience an accessibility gap when seeking information on official border-crossing
procedures and requirements. Baseline survey results indicate that 42.9% of CBTs viewed
border procedures as the most important content for operating their businesses. Despite this
demand, CBTs specified in focus group discussions limited access to border-crossing information
on official border procedures, relevant taxes and tariffs, prohibited and restricted goods, and
changes in health and security conditions. A mapping of stakeholders associated with women in
trade Kenya also confirmed that few operational information providers delivery border-crossing
procedures to CBTs. KII responses suggested that traditional mainstream media channels, such
as radio, television, and newspapers, have been relatively absent from efforts to provide
information on cross-border trade, particularly in relation to the EAC Treaty and Common Market
Protocol.
Without adequate access to such information, CBTs cannot benefit from regional trade integration
initiatives across the East African Community (EAC), including preferential tariffs and simplified
customs procedures. CBTs who are unfamiliar with official border procedures and requirements
often have few means to independently confirm the validity of demands made on them at the
border by different agencies and officials. The resulting uncertainty leaves traders vulnerable to
costly import/export mistakes or exploitation by dishonest intermediaries, such as middlemen and
clearing agents. Uninformed traders are also more likely to mistakenly violate requirements or
14
pay informal fees to mitigate the risk of having their goods seized. These challenges can result in
lost profits, wasted time, corruption, and harassment.
In focus group discussions, exporters / light processors highlighted the need for greater
accessibility to information on trading procedures and requirements with other African countries,
including relevant taxes and tariffs, sanitary and phytosanitary requirements, and potential
implications of newly signed trade agreements for different women in trade. CBTs and exporters
/ light processors especially sought border security and safety updates, and information about
sources of support on both sides of the border in case of emergency, harassment or corruption.
Equipped with this information, CBTs and exporters / light processors could better exercise their
rights and obligations as citizens of the EAC. KIIs with regional organisations also suggested that
more accessible border-crossing procedures will enhance compliance with customs procedures
and reduce time spent at the border.
4. INFORMATION CHANNELS FOR WOMEN IN TRADE
This section evaluates the suitability of existing and potential information channels based on their
usage ubiquity (the extent to which the channel is commonly used to receive business
information) and preferability (the extent to which the channel is preferred) to women in trade.
The following channels were evaluated:
Business/trade networks
Email
Information Offices
Internet (Webpages)
Mobile Phone
One-on-One Conversations
Print Media
Radio
Sensitization Workshops & Trade
Fairs
Social Media / WhatsApp
Trade Fairs
TV
Ultimately, Mobile Phones were found to the most suitable business information channel for
CBTs, urban traders and producers due to its ubiquity of use and high preferability. Conversely,
Email and Social Media / WhatsApp were identified as ideal channels for exporters/light
processors.
Ubiquity of Usage
Mobile phones were the most ubiquitous channel to receive business information for 90.4% of
CBTs, 94.2% of urban traders, and 83.3% of producers. Out of these categories of traders and
producers, urban traders are the most likely to be familiar with receiving phone calls to obtain
business information. 76.2% of urban traders, 55.2% of CBTs, and 50% of producers mainly
receive business information through their mobile phones in the form of phone calls. CBTs enjoy
the flexibility of phone calls, which allow them to inquire about a range of topics in the same
session. CBTs cited a similar advantage in reference to USSD messages. Producers report that
phone calls are often the easiest format to receive information from county agricultural extension
officers with limited availability.
Producers and CBTs are more likely to be familiar with receiving business information through
SMS or USSD messages. FGDs indicate that producers often use phone calls to consult with
other farmers on specific queries. 45.4% of producers, 41% of CBTs, and 29.1% of urban traders
mainly receive information as SMS and USSD messages. CBTs prefer SMS and USSD formats
for the option to read the information at their own convenience and save SMS exchanges for
future reference. Phone calls must be answered immediately and cannot offer a record of the
exchange.
Although Kenya’s telecommunications operators have integrated WhatsApp and other social
media platforms into many of its data bundles,
2
baseline survey findings show that they are
rarely used as a primary format to receive business information. Only 3.7% of producers, 2.9% of
CBTs, and 2.9% of urban traders mainly receive business information as WhatsApp and other
social media messages. Producers specified that they use WhatsApp to obtain additional
information after an initial interaction by other means. Although some CBTs promoted their goods
or made specific inquiries through WhatsApp messages, few CBTs were members of WhatsApp
groups specifically intended for disseminating business information.
Preferability
The following chart presents the results of a survey question which asked each category of women
in trade to indicate their most preferred channel to receive business information.
2
Safaricom, Choosing Your Bundle, https://www.safaricom.co.ke/personal/internet/getting-connected/choosing-your-
bundle (accessed October 22, 2018); Airtel, New Amazing Data Bundles,
http://africa.airtel.com/wps/wcm/connect/africarevamp/kenya/home/personal/internet/internet-services/data-bundles
(accessed October 22, 2018);
16
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A few important points stand out:
1. CBTs, urban traders, and producers predominantly selected phone calls and SMS as
their preferred information format relative to the other channels presented.
2. Urban trader channel preferences largely followed suit with CBTs except with regards to
sensitization workshops. Very few urban traders indicated that they preferred
sensitization workshops compared to other categories
3. While radio was an important preference for CBTs, urban traders, and producers, no
exporters selected radio as their most preferred channel to receive business information.
4. Exporters have very different channel preferences compared to other categories of
women in trade: they much prefer Email, Business and Trade Networks, and WhatsApp
and Social Media, relative to other categories, which indicated lesser preference for those
channels.
Channels were also evaluated with categories of women in trade across several dimensions of
preferability: Ease of Accessibility When Needed; Ease of Information Sharing; Level of Detailed
Information; Cost Effectiveness v. Expensiveness; Records for Future Reference v. Lack of
Records; Perceived Untrustworthiness. This section concludes with a discussion of channels that
were commonly identified as unsuitable by categories of women in trade.
Ease of Accessibility When Needed
All categories of women in trade exceedingly preferred mobile phones over other channels for
their ease of accessibility. Focus group discussions indicate that the near ubiquity of mobile
phones usage among women in trade enhanced information accessibility through mobile
channels. Women traders highlighted that the functionality of tailored mobile-enabled ‘push’ and
‘pull’ messages,’ either initiated by users or delivered by providers, could disseminate relevant
content whenever and wherever it was required. In contrast, CBTs suggested that reliance on
radio and television channels to provide valuable information when required can be time-
consuming and ultimately fruitless.
Despite these advantages, women in trade also noted mobile network problems, complex
procedures, low phone battery, unreliable electricity access, and limited digital skills as
challenges to mobile-enabled business information access. Mobile network coverage is not
continuously available to some women traders and producers, particularly once traders cross the
border into neighbouring countries. If required USSD code(s) or phone number(s) are not saved
on the mobile phone upon initial use, women in trade can forget the codes required to access
information. Limited phone battery can be a challenge, particularly for those with smartphones
that run out of power relatively quickly. Further, women in trade, particularly in rural areas, may
not have consistent access to electricity, and so it becomes difficult to charge and use their mobile
phones. Producers, in particular, may lack the digital skills to access information through their
mobile phones, such as using the internet, SMS or USSD.
Ease of Information Sharing
Urban traders particularly liked the functionality of mobile phones to easily share business
information with others. CBTs preferred the ease of sharing through face-to-face conversations
and mobile phones in equal measure. Women traders and exporters / light processors digitally
shared and received photographs of transportation vehicle options and product samples instead
of traveling in person to inspect.
18
Level of Detailed Information
Producers strongly preferred sensitisation workshops for the level of detailed information they
provided, but urban traders more preferred face-to-face interactions for the same reason.
In focus group discussions, CBTs agreed that sensitisation workshops can provide detailed
information from dedicated experts, but participation can be overly time-consuming.
Cost Effectiveness v. Expensiveness
All categories of women in trade viewed mobile phones to be the most expensive channel to
receive business information due to the costs of airtime and data services. However, producers
and CBTs also preferred the cost effectiveness of mobile phones over other channels. For
instance, CBTs noted the higher direct costs (meals, accommodation, transport) and indirect
costs (wasted time, opportunity costs) of personally traveling to different markets in order gauge
the price, quality, and demand or availability of goods.
Baseline survey results show that most producers (82.9%) typically incurred financial costs to
access business information, as compared to only 32.9% of CBTs and 31% of urban traders. In
a typical seven-day period, surveyed CBTs spent an average of KSh 863 (USD $8.56) while urban
traders spent KSh 466 (USD $4.62). Producers spent an average of KSh 566 ($5.60) in the same
period (41.6% less) than CBTs.
However, consensus among focus group and KII participants suggested that women in trade
could be incentivised to pay for business information if providers offered an affordable rate and
demonstrated their service’s value. Focus groups with CBTs discussed information value in terms
of content relevance and accessibility when needed.
KII participants emphasised that a paid-for information services must fill a distinct gap in
information needs among women in trade and justify the cost with a clear value add to business
growth, efficiency, or profits. Business operators must not be able to obtain similar information
elsewhere for free. For example, fish and seafood producers lack access to any information
channels that deliver reliable market linkages information in real-time to connect producers with
direct customers and traders in different markets. Reliance on middlemen to broker profitable
transactions can generate unnecessary delays, product spoilage, and lost profits. Regarding
affordability, existing service providers suggested the flexibility of a monthly rate rather than
annual fee.
Records for Future Reference v. Lack of Records
Baseline survey results suggest that CBTs, urban traders, and producers most lacked the ability
to generate records for future use or reference when using their mobile phones to access
business information, followed by face-to-face conversations. However, the perceived lack of
records may primarily refer to the limitations of phone calls, as specified by urban traders and
producers in focus group discussions. In fact, urban traders and producers indicate that mobile-
enabled SMS was better than other channels as a record of business information for future
reference.
Perceived Untrustworthiness
CBTs noted the perceived untrustworthiness of ‘faceless’ communication as a key challenge to
using their mobile phones to access business information.
19
However, focus group discussions with CBTs indicated that face-to-face interaction can also be
an untrustworthy channel to obtain information. CBTs suggested that peers and brokers can
deliberately or accidentally provide inaccurate information that is difficult to verify.
Producers noted that one on one information channel is preferred, which is in part due to the
specific nature of the information they mostly require, for example advice on producing a better
harvest will depend on their crops and land. For this information producers rely on one on one
conversations with experts, for example with Agronomists that can advise them accurately on
what they see. However, since such advice often requires producers to pay, there are sometimes
questions of reliability. Furthermore, in the absence of such experts they are sometimes forced to
rely on information from others such as brokers whose information they noted cannot always be
trusted, in particular in relation to market prices.
Less Suitable Channels
Our research also explored channels that were ultimately considered less suitable for women in
trade. Universally less preferred channels across categories included print media, webpages,
visits to the office, trade fairs, and TV all of which where preferred by less than 10% of the
surveyed subsamples.
Business/trade networks are preferred by exporters / light processors who obtain much of their
information in this way, however this channel is less suitable for CBTs, urban traders and
producers. For these categories, information obtained through business and trade networks often
comes at a price, such as a membership fee to join an association that might open up
opportunities to obtain information, which prevents these categories from accessing it.
Email and internet pages are not suitable channels for reaching CBTs, urban traders and
producers due to the lack of internet access among those groups. This prevents them from
seeking out and receiving information via these channels. Even if they have the necessary skills
to access the internet and utilise email, they often do not have the technology nor are they willing
to spend the funds on data to access the internet on a daily basis.
Similarly, exporters / light processors rated social media and WhatsApp as one of their most
preferred information channels, while the cost of internet access and a lack of relevant technology
contribute to their ineffectiveness as information channels for CBTs, urban traders and producers.
It should be noted that within those categories who were receiving information via WhatsApp and
Social media, it was often their most preferred information channel. This indicates that Whatsapp
is a highly effective information channel if it can be accessed.
5. INFORMATION TECHNOLOGY CAPACITIES
The types of information technology that women in trade are familiar with has a large impact on
the information channels they have access to and prefer. Simple feature phones have limited
functionalities (Phone Calls, SMS, and USSD
3
) - compared to Smartphones (Phone Calls, SMS,
and USSD, WhatsApp, Internet, and Apps (which can include Radio and TV)). Given the
limitations of feature phones, Sauti mapped the prevalence of feature phones among each
subgroup. This is presented below:
3
Some hybrid phones have WhatsApp functionality
20
For CBTs, urban traders, and producers, smartphone prevalence varied between 64% and 32%
among those sampled. For exporters, all those surveyed and interviewed had smartphones. This
was echoed in the preference for information channels, where CBTs, urban traders, and
producers indicated preferences for Phone Calls, SMS, and USSD. Comparatively, exporters
preferred channels that corresponded with their information technology: WhatsApp and Email for
instance. This was echoed when women were surveyed regarding the main ways they used their
phone to access business information:
Access to the internet also dictates the potential channels women in trade may access
information. The chart below presents comparisons of internet access between categories of
women in trade.
21
6. CONSIDERATIONS FOR FUTURE INFORMATION PLATFORMS
Categories of women in trade were engaged in focus group discussions and key informant
interviews to identify considerations for an improved information environment. The following
considerations are the results of this engagement.
Multiple information provision solutions exist, but women in trade are not using them
Stakeholder mapping (outlined in a previous report in this series) and focus group discussions
with women in trade highlighted the vast number of possible information providers that crowd the
information space. At last count, categories of women in trade had, through one channel or
another 23 possible information providers that they could access relevant business information
from. Focus group discussions also identified that women were generally aware of the main
sources of information, however several challenges created barriers to effective access.
One of these challenges related to the channels by which this information was provided. Given
the large digital divide for women in trade, many women indicated that services that required
internet access, apps, were beyond their technical knowledge and information technology
capacity. Limited smartphone prevalence among CBTs, urban traders, and producers, in addition
to limited digital literacy, provided significant barriers for women to access digital channels of
information.
An additional issue was the quality of information available that addressed women in trade’s
specific contexts. Women often indicated that the information they required, specific to the size of
their business, or the specifics of their location was often unavailable from existing sources.
Instead this information was learned through trial and error and doing, and ultimately shared via
conversations with other similar-context practitioners.
Little appetite for another platform
Given the constellation of information platforms already available to women in trade, few
interviewees suggested the need for another platform. The challenges stemmed not from the
provision of platforms, but instead from more structural issues related to service delivery such as
digital gaps, information quality, or inaccessible channels. While an additional information platform
would add to an already dense network of information providers, significant value-add lies in the
tailoring of specific information channels to women in trade’s accessibility needs. As highlighted
22
by the analysis in the previous section, complementing existing information service delivery with
a mobile delivery channel for instance has significant potential to enhance women in trade’s
access to information.
Traditional non-digital channels hold relevance and potential for women in trade
While digital channels have advantages for reach, scale, and delivery, the prevalence of simple
feature phones, and costly access to the internet limit the potential impact of these channels. At
the same time, CBTs, urban traders, and producers indicated secondary preferences for non-
digital channels such as radio and sensitization workshops. Considering this, these traditional
channels have potential to to complement any ICT-based solutions.
Low willingness to pay is a challenge to sustainability
A number of issues suggest that implementing an information platform will face sustainability
challenges. Few traders indicated that they had previously paid for an information service, and
while they generally acknowledged they would pay for information that would improve their
business, it was unclear how they would evaluate the potential of an information platform. Further,
traders indicated that the generally spent between 5 and 8 USD weekly on accessing all their
business information, suggesting a limited budget for information. Interviewing information
providers, Sauti also learned that many commercial enterprises had limited lifespans and were
unable to achieve financial viability. In the few examples that had, these services had large user
bases (typically in agriculture), suggesting a significant network scale necessary for sustainability.
Given these channels, commercial information platform will likely require innovative business
models to achieve sustainability.
7. AUTHOR CONTACT DETAILS
Sauti East Africa would be pleased to answer any questions about this report. Find our contact
details below:
Sauti East Africa Limited
The Mint Hub
Western Heights (11th floor)
Nairobi, Kenya
info@sautiafrica.org
www.sautiafrica.org
Tel: +254 736 484 190
... Research in Kenya's agricultural value chains finds that women-led MSMEs are likely to have different information requirements and information accessibility dynamics compared to men (Sauti Trade Insights 2023; Hadley and Aoko 2022;Hadley et al. 2018;Hadley and Lipoweicka 2017). In particular, the gender digital divide, which describes the gendered inequities in digital literacy and technology adoption, is a significant barrier to providing women farmers with timely climate information (Partey et al. 2020). ...
Research
Full-text available
Climate change poses significant challenges for development programmes that target gender inequalities in areas of agricultural productivity, farm incomes, and food security. Considering that four out of five women report agriculture as their primary economic activity in East Africa, the consequential effects of increasing climate volatility is likely to have a disproportionate impact on women. One proposed solution strategy to mitigate the impact of climate change volatility is to improve the planning and decision-making process of farmers by supplying ICT-enabled weather and climate information resources. Meaningfully implementing these ICT-based solutions for women farmers in developing countries, however, requires solution designers to pay careful attention to the gender dynamics of information accessibility, digital literacy, and capacity. This report assesses the climate-related information needs of Kenya's women smallholder farmers with the objective to inform meaningfully relevant and accessible information solutions in the region.
ResearchGate has not been able to resolve any references for this publication.