Co-identifying collective investment models for solar-based irrigation bundles in Northern Ghana

Collective action among smallholder farmers enhances resource mobilization and addresses challenges beyond individual capacity. In Northern Ghana, farmers collaborate in formal and informal groups to strengthen their farming activities. While collective investment in irrigation has improved yields, income, and nutrition, the solar-based irrigation supply chain often overlooks farmer groups and cooperatives. To address this gap, this study applies a mixed-method analysis of collective investment models in solar-based irrigation bundles (SBIBs). Collective irrigation investment (CI-in) is a form of collective action by farmer-based organizations, involving voluntary risk-taking to achieve shared irrigation goals. CI-in supports cost-sharing, commercialization of irrigated farming, and better access to resources, technical assistance, and market information (Filippi et al. 2022). SBIBs integrate core products (e.g., solar pumps, boreholes, water application equipment), financial services (e.g., pay-as-you-go/ pay-as-you-own: PAYGO and PAYOWN are financial services designed to reduce upfront investment costs for farmers. PAYOWN allows farmers to buy solar-powered irrigation pumps through flexible installment plans until full ownership is achieved, whereas PAYGO provides water access on credit, with the pump operating only when payments are made, digital payments, tailored business models, sales and service networks), complementary services (extension, capacity strengthening, market linkages, storage and processing facilities), and scaling actions to meet diverse farmer needs.

Findings identify two distinct investor groups. Male and mixed-gender groups (up to 50 members) use an ownership model, pooling moderate savings and labor. With limited access to markets and loans, they can partially invest in medium- to high-capacity solar pumps on a PAYOWN basis. Female groups (up to 60 members) can adopt a semi-service model, characterized by informal structures, low savings, and very limited access to markets and loans. They collectively invest in small- to medium-capacity solar pumps on a PAYGO basis. Barriers to collective SBIB investment include high upfront costs, limited finance and O&M services, weak supply chains concentrated in towns, poor linkages, supplier risks, lack of net metering, and reliance on subsidies. Farmer groups also face constraints in land, water, and group dynamics, with female groups particularly excluded. Nonetheless, opportunities exist: SBIBs are highly adaptable, distributors are piloting water-as-a-service models, and scaling collective investment yields strong development outcomes. The supply chain benefits from private sector participation and collaborations with NGOs, research, and government. Additional drivers of investment include rising fuel costs for motor pumps, high profits from dry-season farming, knowledge exchange, and cross-border trade with Burkina Faso. Pathways to scale include multi-actor partnerships, innovative financing, knowledge sharing, and capacity development.

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