Farm Africa calls for support for ‘first mile’ agribusinesses

A new report published by Farm Africa today highlights how support to small and medium agriculture businesses is key to driving rural economic development in East Africa.

These ‘first mile’ businesses play a vital role in connecting small-scale farming to wider markets by buying their produce or supplying goods to them. However, the first mile market is failing due to a lack of appropriate financial products for agricultural small and medium-sized enterprises (SMEs).

Without the finance they need to invest, professionalise or develop, the growth of agricultural SMEs is being stifled, as is the productivity and profitability of smallholders who depend on their services.

The report sets out the business case for Farm Africa’s Maendeleo Agricultural Enterprise Fund (MAEF), a venture philanthropy programme that addresses this critical financing gap. MAEF provides working capital and support in agronomy, business and marketing to first mile rural enterprises that in turn enable African smallholders to lift themselves out of poverty.

The report, Strengthening the first mile: Enabling small and medium agribusinesses to unlock development in Tanzania, Uganda and Kenya, (PDF 2.6MB) was launched at a symposium held in Nairobi celebrating Farm Africa’s 30th anniversary.

The symposium brought together representatives from businesses and NGOs across Kenya to discuss how to strengthen markets for rural smallholders in eastern Africa.

To learn more about MAEF, visit its dedicated website.