Ukama Ustawi: Strengthening the resilience of agrifoods systems in East and Southern Africa

Bridging the Gap: Insights from the CGIAR Food Systems Accelerator Bootcamp for East and Southern Africa

Small and medium sized enterprises (SMEs) contribute significantly to agricultural value chains from production to food processing and distribution across East and Southern Africa (ESA). Echoing the need for a business-driven approach to support the transformation of the agri-sector SMEs enable the integration of research, innovation, technology, public and private investment, private sector engagement, inclusivity, market access and entrepreneurship.

In light of evolving climate constraints and population growth threatening food security and production in the region, the CGIAR Initiative on Diversification in East and Southern Africa, commonly referred to as Ukama Ustawi (UU), aims to address food and nutrition security risks in the region arising from an over-reliance on maize through a climate-resilient, water-secure, and socially inclusive approach. By adopting forward-looking methods, the aim is to drive meaningful change and build sustainable agrifood systems that effectively support and contribute to resilient futures within the region.

In a collective effort towards transforming agrifood systems in ESA region, the Alliance of Bioversity International & CIAT (ABC) and the International Water Management Institute (IWMI) supported by the Ukama Ustawi Initiative, brought together 40 agribusinesses as well as a diverse group of ecosystem supporters – through a three-day food systems accelerator bootcamp, in Nairobi, Kenya.

This bootcamp was premised on establishing connections between researchers and agribusinesses ultimately  bridging the gap between research, agricultural innovation and enterprise development through science-based technical assistance. The support to SMEs has contributed to strengthening the appeal of agricultural innovation’s to impact investors and unlocking funding by fast-tracking investment readiness, and equipping agribusinesses with the skills to design market-driven products that can successfully commercialize their innovations.

The bootcamp emphasized the growing importance of impact measurement in the agribusiness sector, where demonstrating social, environmental, and economic impacts can attract and engage investors more effectively. With climate-smart agriculture (CSA) as a thematic focus, the bootcamp highlighted its alignment with the Sustainable Development Goals (SDGs), showcasing essential practices like intercropping and adaptable climate-smart outcomes. Although over 600 indicators are used to assess the agricultural sector outcomes, measuring CSA’s effects remains complex yet vital for understanding productivity, adaptation, and mitigation efforts. The impact pathway approach shed light on the intricate dynamics of CSA, underscoring the need for both quantitative and qualitative measurements to address adaptation and build resilience across social, economic, and institutional dimensions.

The insights gained from the bootcamp also provide a framework to boost investor readiness in agrifood systems. Agribusinesses learned to align with sector priorities, show both financial and non-financial performance, and craft a business model that demonstrates scalability, competitive advantage, and team expertise. Additionally, sessions emphasized internal controls, proactive risk mitigation, and highlighting positive impacts on smallholder farmers and communities. Essential documentation and a strong grasp of the investment processes were identified as crucial for effectively illustrating how investments today can generate meaningful outcomes and manage risks.

IFDC’s Product-Market Fit session further supported SMEs by strengthening their capacity to define target markets, understand customer challenges, and develop a compelling value proposition. This structured approach empowered agribusinesses to identify critical customer pain points, such as low yields and insufficient irrigation, and align their unique value proposition with market demands. By analysing competitors and refining market positioning, SMEs gained tools for stronger market alignment and risk mitigation. A session on competitive unit economics enabled SMEs to assess costs, revenue, profit margins, and pricing strategies, giving them a clearer understanding of break-even points and strategies for profit optimization. Through these integrated insights, agribusinesses are now better equipped to attract investment and drive sustainable growth.

The bootcamp highlighted the need for designing inclusive business models that address social and cultural barriers, understanding gender dynamics in agribusinesses value chains and defining the role of women and youth in agricultural production and processing. Moreover, the importance of demonstrating impact to support fundraising efforts, and the need to prioritize meeting local market demand before considering scaling and expansion were emphasized.

Key outputs and outcomes

1. Enhanced connections: Valuable links were successfully established through an alumni network that will foster collaboration between agribusinesses, researchers and investors.
2. Enhanced investor readiness: Agribusinesses aligned with sector priorities, showcasing financial and non-financial performance.
3. Enhanced understanding of Climate-Smart Agriculture (CSA): Participants acquired a deeper understanding of CSA and its integration with SDGs. This knowledge will enable them to apply the best practices in enhancing productivity and adaptation.
4. Smallholder farmers support: Strategies emphasized strengthening impact on SMEs and local communities, highlighting the need for effective business strategies and proactive risk mitigation.
5. Informed decision-making: Emphasizing transparency, SMEs are now better positioned to provide investors with critical data on crop yields and resource efficiency, enabling informed investment decisions.
6. Gender and Social Inclusion (GESI): The bootcamp prioritized gender and social inclusion, providing participants with a structured framework for fostering a sustainable, inclusive, and equitable agri-business’. This enabled them to integrate inclusive strategies into their business activities, promote women’s empowerment, and the need to address gender disparities.

Looking forward

The insights gained from the bootcamp signify a crucial step in showcasing the state of food systems, and exploring how today’s investments and interventions can promote positive future outcomes and reduce risks. By bridging the gap between agricultural innovation and research development, improving investor readiness, and promoting nutrition-sensitive practices, this initiative is paving the way towards a sustainable future. Albeit, navigating the complexities of agribusiness, collaboration and informed decision-making continue to play an important role in unlocking the potential of the regions food systems. Together, we can foster a successful ecosystem that benefits all stakeholders, from smallholder farmers to investors.

Featured image: Regional experts from East and Southern Africa (ESA) at the CGIAR Food Systems Accelerator Bootcamp held in Nairobi, Kenya, from October 1 – 4, 2024. Credit: Owen Kimani, Alliance Bioversity and CIAT (ABC) 

Authors:

• Thato Mabele, Consultant, International Water Management Institute (IWMI)
• Mahlatse Nkosi, Research Officer – Inclusive Agricultural Finance, IWMI

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