5 reasons why Farm Africa supports agricultural SMEs

Reason 1: 80% of the population in eastern Africa depends on agriculture.

Reason 2: For smallholdings to grow, farmers need to be linked up to national and international markets.

Reason 3: ‘First mile’ services not only act as wholesalers but also supply farmers with tools and equipment to grow.

Reason 4: SMEs are undercapitalised. They often struggle to get loans and fail to develop as needed.

Reason 5: We estimate that from every $1 invested in small and medium-sized enterprises (SMEs), nearly $3 of income is generated.

Farm Africa’s new report Strengthening the first mile: Enabling small and medium agribusinesses to unlock development in Tanzania, Uganda and Kenya, (PDF 2.6MB) highlights how the first mile market is failing due to a lack of appropriate financial products for agricultural SMEs.

Farm Africa’s Maendeleo Agricultural Enterprise Fund (MAEF) addresses this critical financing gap.