This is a summary of a paper by Nicholas Wasunna and Willie Gichora Ngumi, published by GSMA (Groupe Speciale Mobile Association), March 2019, 32 pages, available at: https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/03/Mobile-enabled-economic-identities-for-smallholder-farmers-in-Ghana.pdf
The authors report that 20 percent of the 1.7 billion adults worldwide who do not use banking services cannot open a financial account because they lack documents to prove their identity (ID). This lack of documentation limits access to financial as well as informational services, both of which can assist with improving livelihoods such as farming.
The authors describe two forms of ID, “foundational” and “functional.” Foundational ID documents are broadly applicable and are generally issued by governments. In contrast, functional IDs can be issued by a wider range of organizations, generally for a narrow purpose.
The standard forms of ID in Ghana are: voter ID cards, driver’s licenses, passports, National Health Insurance Scheme (NHIS) cards, birth certificates and “Ghana Cards.” The Ghana Card is a national ID document that has been offered by the National Identity Authority of Ghana since 2017, and is meant to “provide an integrated and multipurpose identity system that cuts across all sectors.” However, as of the date of the study, less than 100,000 people have these cards.
The authors suggest that existing electronic records of economic activity be used to create digital profiles of farmers that they can use as functional IDs for economic purposes. Mobile network operators (MNOs) could participate in the creation of these IDs based on data from financial transactions and other services in which smallholder farmers engage via mobile phone. The protections that MNOs already have in place to counter fraud and other crimes can ensure relatively secure and reliable IDs. MNOs also have existing relationships with financial services providers to which they would relay the ID information upon customer request.
By Tiannah Steele, Research Associate
Sources and Additional Resources
GSMA publication
https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/03/Mobile-enabled-economic-identities-for-smallholder-farmers-in-Ghana.pdf
GSMA homepage
https://www.gsma.com/
National Identity Authority homepage
https://nia.gov.gh/
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