2 Enabling environment: Recommendations
To better understand the enabling environment capital providers should:
2.1 Consider the broader business ecosystem, as much as the specific target business for their investment, to understand the real challenges facing enterprises and how to address them.
Read the report
The underserved middle: Defining excluded enterprises in agricultural value chains [15 pages]
clarifies the concepts of the ‘missing middle’ in terms of access to finance and the ‘hidden middle’ in terms of access to regulatory authorities. The report also identifies the key roles in the broader enabling environment that are essential for addressing the challenges facing agri-SMEs.
2.2 Be aware that deal sizes will remain small and limited in number due to the fragmented state of the sector; investors’ expectations and financing instruments should be aligned accordingly.
2.3 Develop specific investment tools and approaches for agri-SMEs to increase their willingness to take on third-party debt or equity.
Read the report
Bridging demand and supply of private investment capital for small and medium sized enterprises [56 pages]
breaks down the market in a comprehensive and holistic way to show where finance is specifically flowing and recommends ways for addressing the current agri-SME finance gap.
Watch the video
Understanding the ‘Underserved Middle’ [60 minutes]
The presenters reflect on financing gaps and needs, with the discussion drawing on published data and market analysis to provide clarity to the investor community on opportunities for investing in SME agribusinesses sourcing from smallholder farmers.
Or read: the one-page summary of the video
Updated March 2023
Summary of recommendations for capital providers