AAA Overview
- 2. Context Agriculture enterprise development: a dynamic space but with critical gaps and limited connectivity. Key challenges No ‘Go to’ place for local entrepreneurs/farmer organisations Limited farmer organisation Unorganised staple food markets Smallholder access to finance a sticking point. Lack of support to small-scale farmer enterprises at a pre-competitive stage Lack of trust – perceptions of smallholder behaviour and corporate exploitation
- 3. The Opportunities Making links from small farms to markets in Africa: • Drivers of change often private & internal – local agency • Process – an enabling & facilitative approach - more important than any specific form or model Rapidly expanding domestic markets as well as increasing interest in sourcing from smallholders in export markets. Interesting innovations in commercialisation of advisory and capacity building services Recognition of gap and potential for solutions from the convergence of development and business thinking
- 4. African Agriculture Alliance A brokerage, facilitation and knowledge service Enabling small-scale producers and processors in Africa to engage technical and business service providers and to access markets and investment. A social enterprise, using a franchise business model to develop a sustainable and scalable way of supporting agricultural enterprise development.
- 5. Bringing together a multi-sector alliance to: Share knowledge Make connections Build capacity Responsive to the priorities of farmer organisations & entrepreneurs and local, regional & global market opportunities. Learn & build evidence of impact Influence to reshape how system works
- 6. Aim - Impact Wellbeing - Increase productivity and incomes of rural smallholders Resilience - more resilient farming systems and value chains Empowerment - Transforming the position and negotiating power of small-scale producers and processors
- 7. Values Integrity Innovation Inspiration
- 8. Principles Accessibilit Sustainability y
- 9. AAA Value Proposition Current challenge Nowhere to go to get support to Producer & develop own ideas, specific to their local context and capacity Processor Clients Producer organisations AAA will provide an Farmer associations Accessible facilitator and mentoring service • Help to think through ideas and understand Cooperatives different options. • Support in developing organisation and/or Small/medium agro- enterprise plans processing enterprises • Link to relevant service providers, help develop ToRs, engage services and provide feedback. Local NGOs & CBOs • Support to access markets and investment opportunities Entrepreneurs • Flexible service from one off engagement to longer-term mentoring relationship
- 10. Current challenge Sourcing the quantity and quality required of a Market Clients commodity, including timeliness and regularity of supply. Concern over resilience of value chains and Local, regional, global commitments to source from smallholders but limited markets capacity to identify/engage suppliers. Private sector companies AAA will provide a Entrepreneurs Market Brokerage function • Provide a screening service to help identify potential suppliers • Introduce potential clients, providing a record of engagement with AAA and capability assessment
- 11. Current challenge Lack of investor ready initiatives. Hard to invest lower down the value Investors chain & increase poverty impact whilst Grants & loans maintaining balance of risk. Capacity to support pre-competitive stage Impact investors Banks AAA will provide a MFIs Investor Brokerage function Foundations • Increase the number and scope of investor ready enterprises • Refer potential clients who match investor’s profile, providing record of engagement with AAA and capability assessment
- 12. Service providers in building: Current challenge Technical capacity: More likely to be driven by donors (or • Agricultural production & corporates) than respond to demand processing from ground. No mechanism for small- • Value chain development/ scale producers/processors to commodity platforms proactively access their services • Certification, auditing, quality assurance AAA will provide an • Logistics and technology Information platform and service market place Business capacity: • Link AAA clients to service providers • Business strategy resources, skills and services • Organisation development • Share knowledge products – help dissemination • Financial planning & control & uptake of high quality materials. • Management skills • Enable transparent client feedback • Farmer record management • Bring together with other service • Funding proposal development providers, markets and investors in building • Legal assistance diverse support packages to meet clients specific needs • Communication
- 13. Potential core components Technical Facilitator support/capacity Franchise building Investment/Grant Knowledge Bank s Communication tools Strategic Fund
- 14. Facilitator Franchisee Raise awareness of AAA and build client base A hub & spoke model Develop information platform of local service providers, resources and knowledge base Manage facilitation & mentoring service – farmer organisation and individual AAA Central hub entrepreneurs Build alliance strategic partnerships Provide market & investor brokerage Guidelines for facilitation service, market and function investment brokerages Engage in learning hub, franchise CoP and Quality control, monitoring & evaluation local learning networks Mentoring support to franchisees Manage records of engagement and Manage learning hub including franchise outcomes CoP, documentation and dissemination of impact and learning – within AAA & externally Support franchises in branding, IT, communication, Refine business model Secure investment for scaling up
- 16. Key Features A demand driven facilitation and mentoring service for small-scale producers and processors A brokerage function for businesses and investors in agri-enterprises in Africa. An accessible information platform linking rural users with the most relevant knowledge resources and services. A learning hub enabling the sharing of experiences internally, engagement in relevant national/global learning networks and evaluating the impact of the AAA model and different products and processes. Quality assurance of knowledge, services and products.
- 17. AAA in Practice – case examples Nyimba District Farmers Association – Zambia
- 18. Meki Batu Cooperative – Ethiopia
- 19. Next Steps & Critical Questions • Complete research phase – Produce scoping document and research report including stakeholder mapping. Client survey • Develop business model – look at revenue streams and pathways to sustainability • Pilot in 2 countries - where to start? • Secure investment
- 20. Text here AAA is being established by Self Help Africa with strategic partners