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Digital finance and inclusion in the time of COVID-19

Lessons, experiences and proposals














Benni, N. 2021. Digital finance and inclusion in the time of COVID-19: Lessons, experiences and proposals. Rome, FAO.





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    Digital agricultural extension and advisory services (AEAS) have a great potential to enhance accessibility, delivery, transparency, scope and impacts of information and services for smallholder farmers. However, this potential is often unfully harnessed and the benefits of digital AEAS unequally distributed due to an evident, widening digital divide between rural and urban areas, gender, and different social groups both within and among regions. Due to low-level e-literacy and digital skills, particularly smallholder farmers in rural areas in developing countries have limited access to and utilization of digital AEAS. Considering the above-mentioned benefits of digital AEAS, their poor uptake by smallholder farmers, and the importance of digital empowerment of smallholder farmers in particular, this guide, targeting smallholder farmers in need of digital AEAS as its principal users, provides a set of tools to enhance their digital skills in terms of basic knowledge and skills on using digital tools, methods of access to digital AEAS, methods of access to e-commerce, and capacity building.
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    Agriculture is becoming more knowledge-intensive. Access to timely, accurate information tailored to specific locations and conditions is critical to helping farmers make the most of their resources in changing circumstances. Digital technologies help overcome these challenges by bridging the information gap, improving access to market information, enhancing access to micro-finance, providing actionable advisories on managing pest and disease as well as improving agriculture human capital. However, sustaining digital interventions needs a holistic approach that includes the right policies, frameworks, ecosystem and capacities. This publication highlights some successful initiatives in leveraging digital technologies, improving value-chain processes and building capacity to bring about positive change among agriculture stakeholders and improve livelihoods. This publication is part of the Country Investment Highlights series under the FAO Investment Centre's Knowledge for Investment (K4I) programme.
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    The COVID-19 pandemic and the measures taken by governments on social distancing and mobility restrictions have contributed to boosting the use of digital technology to bridge some of the physical access gaps. An increasing number of services and extension/information activities are delivered through digital tools and applications. E-commerce has also flourished. As a result, the potential of digital technologies has gained prominence in immediate response and recovery strategies and programmes.

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