Region
Sub-Saharan Africa

This content is also available in: Español, Português, Français

"Commercial agriculture in Mozambique remains underdeveloped and successful cases of smallholder inclusive business models are rare. In addition to “doing business” constraints at a macro level, smallholder inclusive business models – whether in “outgrower” schemes or other arrangements – pose additional challenges to competitiveness. Low-quality product, insufficient and inconsistent supply, mutual issues of mistrust and a post-war culture of hand-outs can make it more profitable for some companies to import primary produce or work with large-scale farmers. CB Farm Fresh is a smallholder-inclusive vegetable processor and distributor serving the extractives industry in Tete. This case study aims to understand how smallholder-inclusive business models can be successfully implemented by assessing CB Farm Fresh’s end-to-end model."

READ MORE

"This report provides an analysis of the impacts of COVID-19 on Nigeria by first providing an overview of the global situation and Nigerian context, including the response to-date, then by estimating and describing the potential economic impact of COVID-19 on the broader economy and by sector, with a focus on MSMEs. Finally, the report identifies four categories of actions to support the economic recovery: the usual suspects, the unusual suspects, short-term actions, and medium-term actions."

READ MORE

"In this report we study the impacts of giving cash grants of approximately $150 and basic business skills training to the very poorest and most excluded women in a war-affected region, northern Uganda. The program was designed and implemented by an Italian non-governmental organization (NGO), AVSI Uganda, with decades of experience serving this population."

READ MORE

"Market Systems Development (MSD) is an approach to poverty reduction that aims to create long-lasting and large-scale change by stimulating more inclusive growth. To achieve a systemic change vision, market systems programmes often partner with the private sector to introduce new or improved business practices, products and services. Understanding the mechanics of these business models is at the heart of programme success. This paper presents a framework for assessing the efficacy of business models. To help future practice be grounded in reality, we have included detailed business model cases studies from market systems programmes in Afghanistan, Zambia, Kosovo and Nigeria. The paper ends by extracting five key lessons for implementers to improve the way in which they engage with the private sector in building 'win-win' models."

READ MORE

"Management has a large effect on the productivity of medium and large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? We develop 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. We show that variation in business practices explains as much of the variation in outcomes-sales, profits, and labor productivity and total factor productivity-in microenterprises as in larger enterprises."

READ MORE

"While the world has made huge economic gains over the past 50 years, this progress has been highly uneven. This is particularly acute in the agriculture sector, with many of the 500 million smallholder farmers around the world living on meager incomes and facing high levels of economic insecurity.

Despite some recent innovations and advances in including smallholders as market players, there have been few cases where truly widespread, market-level, transformative change towards inclusion has been achieved.

In this report, we explore the role of different kinds of capital in bending the arc of agricultural market development towards inclusive growth. We pay particular attention to how impact-focused players deploying capital that is flexible in terms of risk-return expectations can best deploy it in order to catalyze large-scale transformations towards inclusion."

READ MORE

"The main focus of this study is to ascertain the impact of access to formal credit on enterprise performance. The study uses Nigerian Enterprise Surveys data for 2010 to construct a direct measure of credit constraint. From propensity score estimations, the results show that access to formal credit matters and has significant impact on enterprise performance indicators. Firms that are credit constrained have significantly lower output per worker, capital per worker, employment of labour and investment in fixed assets for expansion compared to firms that are not credit constrained. This is more pronounced for women-owned enterprises after adjusting for bias in the estimations and controlling for sampling weights. This suggests that one way to support the growth of enterprises in Nigeria is to make access to formal credit less stringent. Also, government and monetary authorities should support credit expansion policies for medium and small enterprises in Nigeria."

READ MORE

"Mercy Corps’ AgriFin Accelerate Program (AFA) is a $25 million, six-year initiative funded by the MasterCard Foundation to support private sector actors to develop, prototype and scale digitally-enabled services for smallholder farmers across Kenya, Tanzania and Zambia. AFA is intended to help partner banks, mobile network operators, agribusinesses and technology companies scale high impact services for at least one million farmers, driving 50% increases in smallholder income and productivity, while working to support all market actors to expand services to farmers through shared learning...In June 2018, AFA contracted the Dalberg Group to assess learnings across these engagements and conduct supplementary research on these youth pathways. The goal of this exercise was to support the development of AFA partners and to inform wider ecosystem growth through public learning."

READ MORE

"Globally, women's involvement in clean cooking value chains has been minimal. This is partly because of the multiple challenges faced by women that impede their capacity to effectively engage in the energy sector. To better discern gender-specific differences in involvement in the energy sector, the authors conducted a randomized trial in Kenya to compare sales performance of newly trained male and female improved cookstove entrepreneurs and to test the effects of an agency-based empowerment training on business activity. A total of 257 entrepreneurs completed either a 4-day entrepreneurial training (control) or a 4-day empowerment training (intervention) and were followed for nearly 8 months documenting business activity and sales. The empowerment training led to more than doubling of sales for both genders. In addition, participants in the intervention group were significantly more likely to demonstrate business commitment over time and nearly three times more likely to be higher sellers (relative risk = 2.7, 95% CI [1.4, 5.4]), controlling for gender and rural/urban locale. Women outsold men by a margin of nearly 3 to 1 and were more likely to continue to pursue leads despite limited sales. Nonactive participants (those selling 1 improved cookstove or less) were a larger percentage of the control group (72%) than the intervention group (50%), and more men were nonactive participants (65% of men) compared with women (56% of women).These data show that women can serve as active improved cookstove entrepreneurs in both urban and rural settings and that targeted agency-based empowerment training can significantly increase women's capacity to engage effectively within the improved cookstove value chain."

READ MORE

"Let’s be honest here: Entrepreneurs will need financing to get through this economic downturn. However, most of the investors that we’ve asked said that due diligence has been slowed either due to travel restrictions, their focus on supporting their existing portfolio of entrepreneurs, or those which already had term sheets in place. So where is this financing going to come from?

Our perspective for this article is the investor side of the conversation. What are angel investors thinking about during this global crisis: Is now the perfect opportunity to invest? Is it a time to hold on to your cash and hide it under the bed?It can make sense to halt making any investments all together – and focus on supporting the existing portfolio – given that most angels invest out of pocket. However, this could be an uncommon opportunity to make investments which could generate very good returns..."

READ MORE