Limitations to Small-scale Groundwater Irrigation and Forging a Path to the Future - Part Two: Money and Markets

Alas! Your patience is rewarded! Prepare yourself for "Part Two: Money and Markets".

This time, we will continue discussion on what factors are currently holding back the groundwater revolution, and how they can and should be addressed to improve access and applicability of groundwater irrigation for small-scale farmers across Africa. Last time we discussed pumps and power; this time we’re thinking about money and markets.

Access to Credit and Sources of Capital

The access to sources of capital, according to Villholth(2013), is currently one of the largest constraints faced by poor farmers in Sub-Saharan Africa. Whilst these farmers can draw from their own savings, borrow from family and community members, make use of remittances or generate income through farm proceeds, often many still fall short of the required amount to invest. This is an issue only made worse by the current exclusion of the rural poor from formal credit institutions and private money lenders. Rural farmers are isolated from such services both physically (due to their concentration in urban areas) and financially (due to high interest rates and a lack of collateral).

It can often be incredibly hard for farmers to get their hands on the money they need to kick-start irrigation

Micro-finance schemes (and the promotion of such) that are adapted to suit the needs of rural people are one way in which locals, governments and NGOs can increase rural access to the necessary capital to invest in groundwater irrigation. Subsidies can also play a huge role in increasing access and feasibility; Carter and Howsam (1994) observe that the widespread use of groundwater irrigation in Northern Nigeria in rural areas was only possible due to the government’s subsidized provision of wells and pumping technology, alongside focused subsidies that encouraged supply and fuel outlets to develop. Villholth (2013) concurs with the idea that subsidies can pay a huge role, however reminds us that these subsidies need to be focused and smart, “targeted to those who need them, limited in time and designed to enhance rather than supplant commercial production and distribution” in order to effectively promote industries and avoid dependency.

Market Infrastructures

As Carter and Howsam (1994) aptly put it, the “economic viability of small-scale irrigation” depends heavily on “price and access to markets”. Essentially, if farmers cannot sell the crops they grow, then they cannot afford to sustain groundwater irrigation practices. Villholth (2013) further supports this, noting how groundwater irrigation must be used to produce cash crops in order to be a profitable and viable agricultural technique.

If the distance to market is too great or the road too treacherous, then farmers can oftentimes find themselves cut off from the economy

Markets then are essential. But how do you create a market? Many factors need to come together in order to create viable, fair and supportive market systems. First, there needs to be demand for the crops being produced. By creating better links with cities, where Villholth (2013) observes there are far more instances of diversified diets (possibly due to the relatively progressive culture of cities), demand for a wide variety of crops and fruits can be created. On top of this, efficient road networks are required, in order to increase access to markets for both farmers and buyers. Generally, greater prevalent of storage facilities for crops as well as telecommunications can also make transactions fairer, as it becomes harder for small-scale farmers to become trapped into unfair deals.

Land Tenure and Insecurity

Frequently, small-scale farmers find themselves facing insecurity, due to land being rented or under communal tenure. This has been seen to hold back the expansion of groundwater irrigation, as investments can be too risky for small-scale farmers to dare make (Villholth 2013). In order to encourage the growth of irrigation, therefore, there needs to be greater understanding and security of ownership for rural farmers, who can then feel safe in expanding their agricultural capabilities through investments in groundwater irrigation.

Assured ownership of land goes a long way to encourgaing investment

Conclusions

So, just as the potential for groundwater irrigation seems huge, so do its limitations. Barriers to a small-scale groundwater revolution are significant, and range from issues of technology being sustainable to a lack of access to markets and insecure tenure. On a positive note, however, these are all issues that can be addressed. Through focused and appropriate government intervention, supply lines for technology can be created, markets and demand established, tenure security improved and financial gateways offered for the rural poor and small-scale farmers. That is, however, if governments  realise just how valuable small-scale irrigation can be, and finally get around to answering the call.

There is a whole other side to this argument however that I have been glossing over, and that is the issue of sustainability. The great question remains; just how far can groundwater go as a solution to food insecurity and rural poverty before the taps begin to run dry?

This is an incredibly complicated question. For some areas, where usage is low, this will never be a problem. For others, where usage soars, issues may arise down the line of a falling water table and insufficient recharge rates. What makes issues of sustainability even harder to address is the ambiguity that exists across Africa as to the real extent of groundwater resources. Hopefully, if you can stand the wait until next week, all of these questions will be answered.