1. NGO-PRIVATE SECTOR PARTNERSHIPS IN AGRICULTURE
Lessons learnt by Farm Africa and Self Help Africa
Geoffrey Nyamota

2. CONTEXT WE ARE SPECIALISTS IN Agriculture Natural Resource Management
Market Engagement
WE HAVE A STRONG FOOTPRINT
across Africa, with projects
in ten different countries.
WE ACHIEVE IMPACT
Reach over 3.3 million farmers
Over 1000 enterprises

3. OUR THREE TAKE-HOME MESSAGES1
Private sector means many things
Local: bottom up building of agribusinesses, access to finance
International: trade and market linkages with national and international firms 2
Build TRUST – across value chain and between NGO, producer, trader, financier, …
NGO’s are not normally seen as an agent in this space 3
There is still a role for the public sector
enabling environment (infrastructure, regulatory framework, …)
address market failures – risk, capacity, ...

4. The First Mile

5. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets
‘The missing middle’

6. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets
Access
to finance

7. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets
Access
to finance
High
quality inputs

8. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets
Access
to finance
High
quality inputs
Business development

9. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets
Access
to finance
High
quality inputs
Business development
Marketing

10. Regional, national and international markets
Local market
‘First-mile’ 
businesses
Regional, national and international markets

11. Keringet Dairy Bulking Project
EXAMPLE 1
Keringet Dairy Bulking Project
Context 1
Community development programme identified the dairy sector as a high-potential value chain
Farmer-owned dairy set up – phased expansion
2,000 farmers are producing 15,000 litres/day.
Turnover: $1 million+ 2 3

12. Keringet Dairy Bulking Project
EXAMPLE 1
Keringet Dairy Bulking Project
Learning 1
Build local institutions - VSLAs 2
Contractual arrangements to manage risks between buyers, input providers
and producers 3
Focus on systemic impacts on the market - through fostering competition

13. Maendeleo Agricultural Enterprise Fund (MAEF)
EXAMPLE 2
Maendeleo Agricultural Enterprise Fund (MAEF)
Market Failures
Context 1
We are working with 12 SMEs in Kenya, Tanzania and Uganda x 2
Company profile: potential for scale x 3
Average turnover:
$50,000 – $150,000

14. Maendeleo Agricultural Enterprise Fund (MAEF)
EXAMPLE 2
Maendeleo Agricultural Enterprise Fund (MAEF)
Learning 1
Focus on organisational capacity of target businesses 2
Prepare for financial sustainability - grant, loan and capex 3
Necessity of integration
in the wider value chain context

15. MAIN LESSONS

16. 1 2 3 THINK AND BEHAVE LIKE THE PRIVATE SECTOR
Know and focus on the value chain
Focus on commercial viability  financial sustainability
Flexible, adaptable, agile 2
DON’T FORGET DEVELOPMENT OUTCOMES - don’t get stuck with one player only - aim to achieve systemic impacts across the value chain - be aware of new risks and mitigate them 3
THERE IS A ROLE FOR THE PUBLIC SECTOR - enabling environment must be right – infrastructure, regulations, … - market failures – capacity, risk, …
- Blended finance (private and public)  SIDAI