ProjectAgribusiness Supplier Development Programme (ASDP)
Agriculture is one of Sub-Saharan Africa’s most important sectors: it contributes over 60% towards regional employment and accounts for over 25% of the region’s GDP. Africa remains a strategic continent for the world’s agro-food industry as it holds 60% of the world’s uncultivated land.
However, investing in the agricultural sector in Africa can be a risky business. Smallholders run 80% of all farms in Sub-Saharan Africa, with these farms supplying up to 90% of the food production in some countries. Smallholder farmers are poor and face many challenges in accessing higher value markets. Companies looking to tap into the opportunities while mitigating risk can do so through sustainable local sourcing, creating sustainable business practices, and working with local suppliers.
To support this end, the UNDP African Factility for Inclusive Markets has developed the African Agribusiness Supplier Development Program (ASDP). The program intends to improve the productivity of smallholder farmers and SME agribusinesses by facilitating support (training, advice, access to inputs, organization, standardization etc.) and linking up with off-taker companies.
Endeva has been commissioned to conduct feasibility studies and develop ASDP project proposals in Angola, Côte d’Ivoire, the Democratic Republic of Congo (DRC), Kenya, Nigeria, and Rwanda.
In each country the project specifically aims to:
- Assess the current state of smallholders’ commodity production and competitiveness as well as identify stakeholders in the supply chain.
- Assess the availability of potential off-takers and develop concrete business ideas with them to involve smallholders.
- Develop a model to increase competitiveness and access to viable markets by linking smallholders and off-takers.
- Establish and strengthen the relationships with potential UNDP partners, including off-takes and funders
In each of the six countries, the project identified crops and value chains with high market potential as well as interested off-taker firms. Project documents were developed to specify the support required to link smallholders with off-takers. Main gaps across countries include the lack of good agricultural practices, access to finance and inputs, and warehousing capacity. Workshops hosted by the local UNDP Country Office or Ministry of Agriculture reviewed the findings and mobilized for action. In a next step, plans shall be concretized with off-taker companies.
To watch the video (in French) on UNDP's agribusiness supply work in DRC, please click here.