Research on World Agricultural Economy

An Analysis of Agribusiness Digitalisation Transformation of the Sub-Saharan African Countries Small-Scale Farmers' Production Distribution

Professor

Faculty of Business and Management Sciences, Ruaha Catholic University, Box 774, Mkimbizi D Street, Iringa, Tanzania;  

Elizeus Kalugendo

Ministry of Finance and Planning, 57MW+97J, Madaraka St, Dar es Salaam,  Tanzania,  

Kiran Sood

Chitkara Business School, Chitkara University, Rajpura 140401, Punjab, India  

Simon Grima

Department of Insurance and Risk Management, Faculty of Economics, Management and Accountancy, University of Malta, Msida, MSD2080

DOI: https://doi.org/10.36956/rwae.v4i3.897

Received: 12 July 2023; Published: 6 September 2023

Abstract

The article aims to analyse how digitalisation transforms the marketing and distribution of produce by small-scale sub-Saharan African agribusiness. Small-scale farmers reside in remote areas where market information is limited. This tendency has led them to underperform and meant that a significant portion of their produce would be shared amongst the few traders in their remote small market. This underperformance tendency of small-scale farmers tends to affect achieving sustainable development goals. To obtain the data, the author administered a structured survey to small-scale farmers carrying out agribusiness in the sub-Saharan African countries. This survey was divided into two sections: The demographics section and eleven statements, six relating to digitalisation and five to Agribusiness transformation, to which the participants had to answer in accordance with a 5-point Likert scale. Simple random probability sampling was used to draw a valid sample of 383 from the population of small-scale farmers. PLS structural equation modelling (SEM) using SmartPLS 4 was used to analyse the data and test the hypothesis. Results revealed a significant contribution of digitalisation of agribusiness on the market transformation of small-scale farmers' products in sub-Saharan Africa, particularly in Tanzania. This market transformation resulted from the ability of digitalisation to offer a reduced role of intermediaries, provide opportunities for farmers to expand their markets, and improve the linkage between farmers and the market through customer engagement and interaction. It was further found that digitalisation transforms agribusiness by enhancing digital advertisement, communication, and promotion and allowing easy payment methods.

Keywords: Agribusiness, Digitalisation, Small-scale farmer, Digital marketing

References