Regarding financing of SPIS

[zelalem]

financing of SPIS is the big challenge for small holder farmers and in sub Sara Africa the developmental organizations and donors use result based financing(RBF) to push the market of SPIS by Subsidizing the capital cost for SPIS distributers. However ,Still there is no financing means for end user small holder farmer and that still hinders the acquisition of the SPIS. Is there any experience somewhere to solve the aforementioned problems?

[Rashid.khan]

Dear Zelalem,
Ideally each SPIS scheme (no matter small or large) should have finance strategy. Normally the financial sources are three in numbers called 3Ts (Tax/public, Tariff and Transfer/grants). To me Transfer or grants shall be diverted to capital expenditure, public sector investment to purchasing equipment/consumable and tariff to OM. Hence, SPIS might require little or no OM and require no additional purchasing, therefore these resources could be used as an assistance. Nonetheless SPIS or any other water schemes are not for free and the users/govt. have to pay tariff for various operations.

Best,
Rashid

[abeddoughan]

In lebanon we have alot of donors or organizations providinf help such as USAID, UNICEF and UNDP

[santa.akanyo@giz.de]

Another financing scheme that can promote sustainability is cost-sharing between the farmers and the funding agency.
In our approach, GBE Uganda is making a 70% contribution to farmers tending to acquire the SPI system after being trained on the operation and maintenance.
The farmer's fields were verified by SPI experts and a bill of quantity for the SPIS suitable for their farms was quoted. Many farmers committed to funding the water need sector (tanks and pipes) while GBE funded the energy sector (pump and panel)

[MOHAMMED OMAR]

Here in Yemen, somehow we suffer from the same problem as there is no finance means for smallholder farmers. However, there are some Non-Profit Organizations ,which are funded by external sources, provide the required finance to install the SPIS for smallholder farmers. Therefore, this way of financing means helps lots of farmers since they do not have to pay anything (The system is brought to them for free).

[khaled]

there is a big problem facing financing of SPIS that many farmers has not Ownership documents for the desert lands they reclaim which obstruct financing of spis

[xayne]

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[xayne]

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