Location
Africa, specifically Kenya, Tanzania, Uganda, Rwanda and Ethiopia
Stakeholders involved
Micro-, small and medium-sized enterprises (MSMEs) – offtakers, aggregators, input suppliers – matching grant facility, smallholder farmers, logistics providers
Lead organization
Scale
The COMESA EAC Horticulture Accelerator aims to transform agrifood systems in COMESA and EAC by enhancing coordination, market access and trade in the horticulture sector. With targets like 30,000 jobs, 20% trade growth and USD $1 million in grants, it promotes inclusive, sustainable and market-driven agrifood systems. The accelerator's USD $5.6 million anchor grant aims to influence over USD $200 million in public, private and donor horticulture-related investments, enable the clustering of investments to reduce duplication, and increase synergy and improve cost-effectiveness. The return on investment (ROI) horizon is 5–10 years.
jobs
trade growth
million (USD) in grants
million anchor grant
Co-investment model
The accelerator leverages blended finance, combining development partner grants (e.g., Bill and Melinda Gates Foundation for USD $5 million and the UK Foreign, Commonwealth and Development Office for USD $600,000) with concessional loans and private equity. The model aims to influence and coordinate over USD $200 million in public and private sector investments from development finance institutions (e.g., African Development Bank (AfDB), World Bank) and philanthropists. The financing structure aims to de-risk early-stage investments in horticulture and agro-processing clusters, especially those with high potential. Structured offtake agreements, improved policy environments and access to aggregated farmer networks attract private investors. The accelerator requires catalytic capital to unlock private sector participation, particularly in storage, cold chain and logistics infrastructure.
Impact
million through the matching grants facility
people with inclusive job opportunities
The amount invested so far is USD $66.5 million through the matching grants facility. The initiative’s beneficiaries are 100 MSMEs through improved farmer profitability (+25%), reduced cashflow volatility (-50%) and better access to finance. Other beneficiaries include 10 business development support providers and 30,000 people with inclusive job opportunities, especially for women and youth. The use of climate-smart practices and resilient crop varieties has contributed to growth in areas under fruit (5%, from 9.5 to 10 million ha) and vegetable production (also 5%, from 33 to 45 million ha). Such practices have also led to increases in yields (fruit by 4% and vegetables by 3%) and labor productivity (25%). Post-harvest losses have been reduced (from 40% to 20%) while small-scale drip irrigation has increased from 5% to 9%.
Levers and enablers
By providing USD $1 million in matching grants, the accelerator lowers the cost of capital for smallholder farmers, MSMEs and aggregators – enabling investments in productivity-enhancing tools and infrastructure. On the market side, the accelerator addresses rising regional and international demand for horticultural products by securing offtake agreements with exporters and processors – reducing market risk and ensuring stable income streams. To address policy, governance and regulatory binding constraints, the initiative promotes public policy measures and instruments aimed at improving the enabling environment for horticultural trade and investment across COMESA and EAC countries. Specifically, it engages in policy advocacy through the development of knowledge pieces and the organization of public-private dialogue forums. Lastly, the accelerator builds the capacity of national regulatory institutions to implement and enforce harmonized standards effectively.
By providing
in matching grants, the accelerator lowers the cost of capital for smallholder farmers, MSMEs and aggregators
Barriers
Power imbalances, limited representation of grassroots actors and varying levels of capacity are among the challenges encountered that risk hindering effective engagement. In addition, market and context risks and uncertainties add to the barriers - including fluctuations in local and international prices for horticultural products affecting profitability and investment decisions, changes in consumer preferences, trade policies and global market access, risks of contract breaches or delayed payments from offtakers. Lastly, many smallholder farmers and MSMEs struggle to meet co-investment requirements, which limits their ability to fully leverage financial support.
While an estimated USD $635 in support often aims to assure producer livelihoods, enable price stability, lower costs to consumers to safeguard food and nutrition security, foster innovation and improve environmental outcomes, it often finances practices that lead to social, economic and environmental harm. Redirecting this agricultural support to climate-smart practices and mechanisms that ensure the sustainability of agrifood systems is a significant and impactful opportunity for governments across geographies.3
Lessons for scaling
- Overcome limited innovative financing mechanisms by building capacity – particularly technical expertise and business acumen – to ensure beneficiaries optimize their investments;
- Recognize that local ownership and coordination matters, that de-risking is essential and that data drives decisions if done and shared on time for decision-making;
- Use grants and concessional finance to crowd in private investment, not replace it;
3 Organisation for Economic Co-operation and Development (OECD) (2023). Agricultural Policy Monitoring and Evaluation 2023: Reforming Agricultural Support for Improved Outcomes. Retrieved from: https://www.oecd.org/agriculture/topics/agricultural-policy-monitoring-and-evaluation/.
Food and Agriculture Organization (FAO) of the United Nations, United Nations Development Programme (UNDP), United Nations Environment Programme (UNEP) (2021). A Multi-Billion-Dollar Opportunity: Repurposing Agricultural Support to Transform Food Systems. Retrieved from: https://www.fao.org/documents/card/en/c/CB6562EN.
World Bank (2023). Repurposing agricultural subsidies: What, why, and how? Retrieved from: https://www.worldbank.org/en/news/feature/2023/05/25/repurposing-agricultural-subsidies-what-why-and-how.
- Invest in systems that will outlast individual interventions rather than simply projects;
- Blend finances strategically to share risk and align incentives across the value chain.
