Ever Upwardly Mobile: How do Cell Phones Benefit Vulnerable People? - Lessons From Farming Cooperatives in Lesotho

This report, published by the Regional Hunger and Vulnerability Programme (RHVP), chronicles the findings of a 2006 RHVP pilot project that distributed 10 cell phones to three women's farming cooperatives in Lesotho and sought to understand how cell phones could benefit vulnerable populations. The women chosen for the project were demographically similar to those often selected to receive cash transfers; however, in this project, women received ZAR500 (approximately US$50) in airtime, three quarters of which was designated for sale to other members of the community. Despite existing arguments against using cell phones to distribute cash transfers, researchers found the phones were effective in reducing economic vulnerability in two main areas - 1) improving communications between members, as well as between cooperatives and agricultural bodies while decreasing transport costs, and 2) generating extra income.

The report shows that the primary benefit to the cooperatives was improved communications at a decreased cost. Prior to the introduction of cell phones, women reported having to, for example, travel 200 kms to meet with each other, often at a cost of ZAR230 (US$13) excluding accommodation. Women also reported that the phones helped them be better informed of market prices of goods and facilitated bartering in certain staple goods, such as wheat and maize, between cooperatives. Researchers also indicate that the cell phones helped increase the public profile of some cooperatives (i.e., they had regular contact details), and that because of this, women have been able to participate in agricultural shows, trainings, and conferences through national programmes designed to encourage small-scale farmers.

Secondly, the report shows that distributing cell phones among these rural women provided an effective tool for income generation. Cell phone users in Lesotho are able to transfer airtime from one phone to another, and women were able to capitalise on this service, buying airtime at discounted prices and selling to the community. The business was so lucrative that, with the first US$100 a lowlands cooperative made, they purchased four more phones to distribute to their members. Perhaps most importantly, this pattern of reinvestment continued and allowed many cooperatives to branch out into new businesses such as cattle farming or tourism. Meanwhile, researchers add that many chieftains in the area reported that cell phones had an additional spin-off benefit in that they improved basic literacy and maths skills among users.

The report concludes by recommending that government and non-governmental organisations begin to question notions about who can and cannot utilise existing cell phone technology to uplift their communities. Furthermore, authors argue that, judging by the willingness of one of Lesotho's primary telecommunications firms to support this project, there may be untapped potential in terms of public-private partnerships in this area. Such partnerships may be a way of overcoming the main deterrent for many of adopting cell phones as tools for development - the initial costs. Researchers admit that governments are likely to remain hesitant to fund such projects until costs such as these are overcome and until more research is produced that, like this one, points to the real benefits of cell phone use.