Strengthening the capacities of small-scale producers and MSMEs by upgrading their business models to supply nutritious food to local markets

The initiative addressed key challenges faced by micro, small and medium-sized enterprises (MSMEs) in the agri-food sector, particularly in low- and middle-income countries (LICs and LMICs). These MSMEs, which account for 95-97 percent of private sector enterprises, often face institutional weaknesses, limited access to resources, and barriers to their transition to sustainable enterprises. Specific constraints such as inadequate technical assistance, finance and infrastructure,  hindered their ability to meet quality and safety standards and integrate into profitable agrifood chains for the provision of nutritious food. The policy and institutional environment further limited their competitiveness and growth potential.

The programme adopted a multi-stakeholder approach, involving collaboration with public and private sectors, academia, and research institutions to tackle challenges encountered by agrifood MSMEs. Strategic partnerships were established with organizations including the University of Ghana, University of Viet Nam, Jomo Kenyatta University, IFPRI Ghana, Alliance Bioversity and CIAT, Association of Ghana Industries, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) GAIN, SBN, and CENPROMYPE.

The initiative targeted agrifood MSMEs, particularly those led by women and youth, in LIC and LMIC.

• Targeting and prioritizing MSMEs: Focus on disadvantaged enterprises, especially those owned by women and youth, and prioritizing nutrition-sensitive value chains and post-harvest activities to supply nutritious food in the poorest areas.
• Profiling and needs assessment: Conducted detailed profiling of MSMEs based on products type, business activity (production, packaging, labeling, processing and distribution), and market dynamics. Assessed capacity gaps and the needs of MSMEs in terms of managerial and technical skills, particularly for those involved in the post-production and distribution of nutritious foods to communities affected by food insecurity and malnutrition.
• Multi-stakeholder engagement: Facilitated multi-stakeholder platforms and coalitions involving the public and private sectors, civil society, academia and research to address institutional and policy challenges faced by agri-food MSMEs.

In Ghana, Kenya and Viet Nam, capacity needs assessments were conducted for 115 agrifood MSMEs (55% women-led), which led to the production of training materials, the delivery of training sessions, as well as mentoring and coaching programmes for 60 SMEs. Over 80% of these enterprises upgraded their business plans, incorporating investments in product formulation, food safety, and quality management to promote nutrition-sensitive value chains.

In Central America, business roundtables were organized, with participation of 213 previously profiled and trained agrifood MSMEs from target countries, which facilitated linkages and business arrangements between MSMEs and buyers. At the completion of the initiative, 91 business agreements were signed for an estimated yearly total value of nearly USD 890 000.

The increased entrepreneurial and technical capacity of MSMEs is expected to generate increased local incomes and employment, thereby improving household access to diversified and nutritious food. In Ghana, a collaboration agreement with the University of Ghana has contributed to a discussion on and formulation of national strategies for MSME development. Enhanced university curricula in Kenya, Ghana and Viet Nam will ensure a lasting impact on future professionals and entrepreneurs. Ongoing projects in Kenya and Malawi are demonstrating diversified production, reduced food losses and increased income for MSMEs which contribute to improved food security and nutrition while enhancing local economies. Established business agreements in Central America signify broader and sustainable economic linkages, demonstrating the initiative's impact on market and MSMEs’ growth.