The Smart Kungahara System (SKS) which was developed to digitise the value chains of cash crops and horticulture has started to bear fruits.
Developed in 2019 under a public-private partnership between BK Techouse and the National Agricultural Export Development Board (NAEB), the system benefits cash crops such as coffee, tea and horticulture.
With the system, all transactions and farm activities, including inputs and production are recorded digitally.
Every farmer is given a registration number and an account through SKS where information about their farm—from inputs received and applied to the quantities of production— is stored.
Smart Kungahara phases out analogue or paper-based transactions in the supply and value chain of the mentioned agriculture crops.
The system also calculates the quantity of required fertilisers, while a farmer can use it to approve the delivery of inputs.
Jean Claude Munyangabo, the CEO of BK TecHouse, said that the pilot phase, which began with recording agro-inputs and cherries collection in the coffee industry, has been successful.
So far, he said, over 340,000 coffee farmers and 300 coffee washing stations have signed up for SKS.
He added that over 5,000 metric tonnes of coffee cherries were collected in agric Season 22 A and B, while over 2,400 metric tonnes of agro-inputs have been distributed every year.
Chief Operation Officer at NAEB, Sandrine Urujeni, delivers remarks during the session.
The system has a database of all coffee farmers, which is integrated with the National Identification Agency (NIDA) and the land system.
The integration helps to capture the number of farmers and the size of their arable land, effectively facilitating the government in its planning process.
"When farmers take cherries to the coffee washing station, the quantities are recorded in the system on the farmer’s account,” Munyangabo said.
The coffee washing station records the quantity of produce supplied, he added, and pays the farmer through a mobile money system.
This promotes cashless payments, he explained.
The second part of the system records information from coffee washing stations to coffee dry mills.
"The process to transport parchment coffee to dry mills has to be recorded to ensure information traceability. All these provide real-time information to stakeholders, NAEB and government for planning and decision making,” he said.
Enhancing access to agriculture loans
Munyangabo said that with information traceability, coffee farmers and processors will easily have access to loans from different banks to increase their production.
Over 70 per cent of the farmers are not known by banks, Munyangabo disclosed, adding that a traceable history of payment will raise the banks’ confidence in the agriculture sector.
"With data on cashless payments, coffee washing stations can also access loans from banks to run their operations in case they do not have cash flow every season,” he explained.
He said the three-year partnership for piloting the system since 2019, has been renewed to elaborate the system and build the capacity of the beneficiaries.
"The implementation was disrupted by Covid-19 when we didn’t get time to train users as we had planned. On May 31, we discussed the progress, achievements and how we can collaborate so that users start using the system at 100 per cent starting with next season. NAEB is going to put in more efforts to train many users,” he said.
During the discussions, it was concluded that NAEB will issue guidelines on how the system will be used and also mobilise funds to increase capacity building for coffee washing stations.
Munyangabo said that the digitization will follow with other cash crops value chains such as tea and horticulture.
According to Sandrine Urujeni, the Chief Operation Officer at NAEB, the system will provide real-time information about the status of coffee production in the country from village to national level.
"We have to digitise services from farming to exporting crops. The system will help us to know the number of cash crop farmers and what they need to help us in planning. We continue to raise awareness about the system to increase the uptake,” she said.
Farmers and coffee washing stations have commended the system but said that there are still challenges that need to be addressed.
"Some farmers are illiterate; others have no mobile phones while others have not yet gained skills to use the system. More training is needed,” said Clement Nizeyiman, the Owner and Manager of Mpanga Coffee Washing Station in Ruhango district.
He said the main benefit is the expected enhanced access to finance from banks.
Jean Marie Vianney Ntirenganya, a coffee farmer from Byimana sector is optimistic about access to agriculture loans thanks to the system.
"I can expand coffee production if I get access to more financing. There is also a need for training more coffee farmers. Some farmers have gaps in digital literacy,” he added.
The system can be accessed by downloading an application through play store or through a feature phone by simply dialling *774#, choosing NAEB and following guidelines.
Group Photo of an officials from Bktechouse and NAEB, Coffee farmers during the session on Tuesday 5, 2022.
Planning Division Manager at NAEB, Corneille Ntakirutimana explained how the system of smartkunga has benefited the coffee and tea farmers during the session on Tuesday 5, 2022.
Smart Kungahara is a digitized system that value chains such as coffee, tea, and horticulture under a Public-Private Partnership between BK Techouse and the national agricultural export development board. / NAEB Photo