The need to provide agricultural information to farmers has led to emergence of numerous ICTbased MIS projects in developing country. These projects aim at promoting commercialization of smallholder agriculture and subsequently their welfare. This study examines the how the environment in which such ICT-based MIS affect their performance. It specifically uses the DrumNet project, an ICT-based MIS, to assess how the socio-economic, physical, political and physical environment in the project areas affected its performance. The study finds that those transaction-related problems, especially strategic default, deriving from these environmental factors greatly undermined the performance of DrumNet forcing it to relocate severally. It discusses policy implications of these findings.