Dissemination of Agricultural Innovations Between Information and Financial Incentives. Insights from Randomised Controlled Trials in Three African Countries

In Africa, technology uptake by smallholder farmers is key to achieving food security. However, smallholders have limited financial resources, are averse to small risks, and focus on short-term outcomes. We implement randomised controlled trials to test the effectiveness of information- or incentive-based strategies in promoting agricultural innovations among this group. Case studies include a phone app for precision irrigation in Morocco, nutrient-rich bean varieties in Tanzania, the integration of aquaculture and vegetable farming in Uganda. We recruit 300 participants per country, assigning them to three treatment groups. Our information nudges focus on the local impact of climate change (Morocco) and health benefits of zinc and iron (Tanzania). Financial incentivisation schemes include small upfront payments, small discounts, payments by result, and individual payments based on a collective threshold. Information provision proves less effective than financial incentives; small financial incentives are effective with low-cost innovations; conditional payments increase adoption, thus representing promising instruments.