Building digital bridges in African value chains: Exploring linkages between ICT use and social capital in agricultural marketing

Abstract

Intermediaries perform important functions in the African agriculture sector, such as linking producers to information, markets and finance. They often rely on their social network capital (SNC) to perform these functions. This study examines the relationship between the use of information and communication technologies (ICTs) by intermediaries, social network capital and the functioning of agricultural markets, with a focus on coordination and information exchange. To this end, 1571 extension agents, output dealers and input dealers were surveyed in Ghana, Kenya, Mali and Nigeria. The results show that all intermediaries use ICTs to facilitate networking, coordination and information exchanges, albeit to differing degrees. Dealers use ICTs primarily to facilitate bonding capital within their intermediary group, but also bridging capital with producers. Extension agents use ICTs most extensively to facilitate both bonding and bridging capital with the widest range of actors. Easier sharing of information, in particular about prices and to a lesser extent potential trading partners, is the main SNC-related benefit in marketing. Regarding coordination activities, ICTs are generally perceived to be more useful in facilitating existing rather than increasing marketing networks. The utility differs by dealer type, however. Output wholesalers benefit the most from increases in network size as a result of using ICTs, in particular to expand linkages with buyers. Digital marketing platforms should build on existing trading relationships and ICT use, and capitalize on intermediaries' digital skills, technological capacities and digitally enabled networks to improve service delivery and cover the last mile to producers.