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• (Article) Building frontline market facilitators' capacity: the case of the ‘Integrating Very Poor Producers into Value Chains Field Guide’

  01.06.2014
  Utilizing the case of the Integrating Very Poor Producers into Value Chains Field Guide, the article provides its strengths (extensive tools and worksheets, case studies from recovery and development settings) and limitations (very brief overview of market systems, only focuses on the implementation phase of market development, only focuses on integrating the very poor into markets). The knowledge assessment results of two workshops lead the author to question how much is learned in workshop settings. The online survey showed that the most used section of the Field Guide was ‘Linking Very Poor Producers with Buyers & Suppliers’. The 70 per cent experiential, 20 per cent from others, and 10 per cent formal ratios regarding learning led the author to recommend more on-the-job learning. Extensive feedback from the users provided lessons on improved tool design and capacity building for tool users. The article concludes with a number of recommendations: frontline workers need written guides; translate guides; include a monitoring and evaluation system; get organizational commitment to build frontline market facilitators' capacity; more research into the different methods of building capacity (workshops; written guides; a monitoring and evaluation system; and online and in person training events are likely the most effective combination).

• (Article) Value chain development for rural poverty reduction: A reality check and a warning

  01.03.2012
  Over the past decade, the value chain development approach has increasingly been adopted by governments, donors, and NGOs to reduce rural poverty. The design of related interventions often assumes that poor households: 1) have sufficient resources to effectively participate in value chain development; 2) do not face substantial trade-offs when using these resources; and 3) are able to assume higher risks when reinvesting capital and labour. However, insights from our own experiences and the literature show that these assumptions often do not reflect the realities and the needs of the poor. We argue that value chain development with poor and vulnerable populations, particularly in rural areas, requires additional conceptual frameworks, analyses, and interventions. In particular, we encourage donor agencies and development practitioners to adopt an asset-based approach to the design, implementation, and assessment of target value chains and to identify the non-market interventions needed for enabling particularly disenfranchised groups to meet the minimum asset thresholds for their successful participation in value chain initiatives.

• (Article) Towards demand-driven services? The role of feedback mechanisms in agribusiness-based advisory services for smallholder farmers

  01.09.2019
  In many developing countries, agribusinesses are highly engaged in providing services to smallholder farmers, including agricultural advisory services or extension. As private service providers depend on farmers’ choice, eliciting farmer feedback and learning from farmers’ demands seem to become more important. However, the phenomenon of agribusiness-based advisory services has received relatively little attention in the study of advisory services. Little is known on whether and how agribusinesses operationalize the idea of demand-driven service provision. This is a critical oversight as agribusinesses are increasingly present as service providers and hence shape the prevailing service landscape for smallholder farmers. Based on a study of 29 agribusinesses providing advisory services to farmers in developing countries, this paper explores the extent to which agribusinesses provide demand-driven services based on farmer feedback and how they integrate and learn from such feedback.

• (Article) Better together: improving food security and nutrition by linking market and food systems

  01.09.2019
  Market-based approaches to food security often increase agricultural productivity and income yet sometimes fail to enhance nutrition. When food security programming combines market and food systems with a specific focus on women and girls, economic and nutrition outcomes benefit. We identify distinctive and shared elements from market and food systems and highlight how they enhance nutrition outcomes when they are combined. We describe food security programming by CARE and World Vision in Bangladesh, Ethiopia, Madagascar, Zambia, and Zimbabwe, demonstrating nutrition gains in food insecure households.

• (Article) Developing agro-pastoral entrepreneurship: bundling blended finance and technology

  01.06.2019
  Development of agro-pastoral and pastoral entrepreneurship in arid and semi-arid lands (ASAL) of East Africa is constrained by lack of access to financial services, limited technology, and low capacity to engage in high value crop production. This is exacerbated by high risks associated with providing these services to pastoralist communities in ASAL areas in Kenya. The communities’ preference for ethical financial products and services has exacerbated this exclusion. This article presents a new intervention area that addresses these challenges. It argues that bundling ethical financial services with agricultural technology and capacity building positively affects entrepreneurship and income generation among pastoral communities that are transitioning into crop production. This article is based on the Islamic Relief Kenya (IRK) project implementation experience and participatory action and quantitative research conducted with randomly selected members of 180 Alpha Group Savings and Loans Associations (AGSLAs).

• (Article) What is cocoa sustainability? Mapping stakeholders’ socio-economic, environmental, and commercial constellations of priorities

  01.09.2017
  Given growing concerns regarding the chocolate sector’s long-term future, more private-sector, public-sector, and civil-society stakeholders have become involved in initiatives seeking to make cocoa more ‘sustainable’. However, the commercial, socio-economic, and environmental priorities they associate with the omnipresent, yet polysemic term diverge considerably: while transforming the crop into a more viable livelihood for growers is essential for some, others prioritize the crop’s links to global environmental challenges through agroforestry. A third dimension encompasses commercial concerns related to securing supply. The article explores how tensions and synergies manifest in these divergent understandings of what cocoa sustainability is and is to entail, which diverse civil-society, public-sector, and private-sector stakeholders bring to the table. It argues that priorities associated with ‘cocoa sustainability’ diverge, yielding synergies, tensions, and trade-offs. This article draws on the author’s in-depth doctoral fieldwork in cocoa sustainability initiatives incorporating environmental measures, which encompassed semi-structured interviews, focus-group discussions, documentary analysis, and participant observation in Latin America and Europe. It proposes the ‘constellations of priorities’ model as an instrument to capture how the priorities driving cocoa stakeholders variously dovetail, intersect, and collide. Particularly against the backdrop of the sector’s brewing crisis, the paper suggests that stakeholders systematically assess their and other actors’ socio-economic, environmental, and commercial priorities as part of the equitable engagement required to transform the sector and attain genuine cocoa sustainability.

• (Article) Value chain development in Nicaragua: prevailing approaches and tools used for design and implementation

  01.03.2017
  This article draws on four contrasting cases of value chain development (VCD) in Nicaragua to assess approaches and tools used in design and implementation. We interviewed 28 representatives from the international NGOs leading the interventions, the local NGOs that participated in implementation, principal buyers, and cooperatives. Despite the complexity of market systems, results showed a relatively basic approach to VCD, reflected in: 1) reliance on a single tool for design and implementation; 2) expected outcomes based on technical assistance and training for smallholders and cooperatives; 3) local NGOs and cooperatives with key roles in implementation; and 4) limited engagement with other chain actors, service providers, and researchers. We conclude with a call for a broader approach to VCD, based on a combination of tools to account for multiple, context-specific needs of diverse stakeholders, deeper collaboration between key actors within and outside the value chain, and evidence-based reflection and learning.

• (Article) Development impact bonds: learning from the Asháninka cocoa and coffee case in Peru

  01.03.2017
  Impact bonds effectively allow the risk of implementing social development activities to be shared with private sector investors. Social or development impact bonds replace the upfront financing of charitable activities with a pay-for-success contract. Four actors together agree upon the outcomes and their indicators: outcome sponsor, investor, project implementers, and verifier. Under such a contract, a charitable donor or government (‘outcome sponsor’) takes the obligation to pay the ‘investor’ an amount determined by a set of objective indicators reflecting the outcome desired by the donor. The investor, expecting contract-based future payout, can recruit and pre-finance project implementers (‘service provider’) to achieve the agreed results. The achievements of the outcome indicators are assessed by an independent verifier to conclude the payout from donor to investor according to the contract. The structure allows charitable donors to transfer a significant share of risk to investors and/or financial markets. The Common Fund for Commodities (CFC), the Schmidt Family Foundation (SFF), Rainforest Foundation UK (RFUK), and the Royal Tropical Institute (KIT) were the first to apply the model in the agricultural sector in an emerging economy. The main objective of the impact bond was to increase productivity and market sales of cocoa and coffee produced by the Asháninka people, an indigenous community living in the Peruvian Amazon. This pilot provides valuable lessons learned to contribute to the development of the mechanism.

• (Article) Value chain financing: evidence from Zambia on smallholder access to finance for mechanization

  01.03.2017
  Smallholder farmers in Zambia comprise 85 per cent of the farmers’ population. Such farmers are regarded as not creditworthy and furthermore their agricultural productivity could be improved. The aim of this paper is to present recent evidence on value chain financing (VCF) as a framework to increase access to agricultural finance for Zambian smallholder farmers. Such financing will act as an enabler to mechanize and, in turn, might improve productivity. Qualitative data collection techniques were followed to provide the results as presented in three illustrative case studies. Each case study highlights the benefits of financing, using the value chain framework, but also emphasizes certain challenges and risks associated with the approach. The Zambian case is not perfect, but provides recent evidence of how various roleplayers in Zambia’s agricultural sector have applied the VCF framework to coordinate the actions of various chain actors, and by doing so allow smallholders access to finance within the local and country-specific context. Although two of the three VCF programmes have been discontinued, they still provide useful learning points: for instance, commercial banks should assign more resources to manage the VCF products; and the risk should be shared between all the VCF participants.

• (Article) Value chain development with the extremely poor: evidence and lessons from CARE, Save the Children, and World Vision

  01.03.2017
  CARE, Save the Children, and World Vision are combining value chain development (VCD) with gender and nutrition programming to alleviate poverty and food insecurity among the extremely poor. We explore what is unique about VCD with the extremely poor and how specific levers enhance productivity and profitability, equity, and empowerment. We offer evidence to date and lessons learned.

• (Article) Impact assessment of commodity standards: towards inclusive value chains

  01.03.2017
  Voluntary commodity standards are widely used to enhance the performance of tropical agro-food chains and to support the welfare and sustainability of smallholder farmers. Different methods and approaches are used to assess the effectiveness and impact of these certification schemes at farm-household, village, cooperative, and regional level. We provide an overview of the results from robust impact studies on coffee, tea, banana, cocoa, and cotton certification programmes. Overall outcomes show rather modest net revenue effects for farmers, small direct income effect for wage workers, and contested sustainability effects. Most impact studies focus on primary sourcing, but devote less attention to changes in trust and governance throughout the value chain. Moreover, implications for gender issues and supply chain trust are not always fully addressed. In order to better understand these somewhat disappointing effects, we discuss different fallacies and drawbacks that affect impact studies concerning commodity certification programmes. Main attention is given to perverse incentives for intensification and specialization that arise from certification. Moreover, spillovers to other (non-certified) farmers and spatial externalities at landscape level may reduce net effects. Important secondary effects related to behavioural change (risk, trust) and local innovation dynamics are usually overlooked. Current practices in value chain development programmes should focus increasingly on dynamic effects of upgrading and improved market integration. New interactive impact assessment approaches (gaming, multi-agency simulation) that address integrated value chain relationships offer promising perspectives for real-time and systematic analysis of alternatives for smallholder value chain inclusion beyond certification.

• (Article) Trade-off between outreach and sustainability of microfinance institutions: evidence from sub-Saharan Africa

  01.09.2017
  The changing landscape of the microfinance industry, which is characterized by a decline in donor funding, has reignited debates regarding the ability of microfinance institutions to serve the poor while remaining sustainable. In this study, we examined the relationship between outreach and sustainability in the context of sub-Saharan Africa (SSA) and analysed the determinants of sustainability using data from 71 microfinance institutions (MFIs) across 10 countries. By applying correlation analysis and fixed effects regression, we found mixed evidence of a trade-off between the depth of outreach and operational self-sustainability. Furthermore, the results show that interest rate is a major determinant for MFI sustainability, which is consistent with the institutionalist view. Factors that significantly influence the sustainability of MFIs in SSA are the average loan size as a percentage of gross national income, gross loan portfolio, portfolio at risk, operating expenses to assets ratio, governance effectiveness, and the interest rate on loans granted to clients. The study recommends that managers of MFIs and decision makers in the region closely monitor their cost-side variables and improve productivity by adopting measures such as information communication techniques that enhance outreach at low cost. In addition, stepping up monitoring and incentivizing hard working staff could help improve both deposit mobilization and loan recovery.

• (Article) Youth savings groups in Africa: they’re a family affair

  01.09.2017
  Based on fieldwork in Tanzania, Zambia, Uganda, and Ghana, in the paper we provide new evidence that young people’s engagement with savings groups in Africa is deeply embedded in networks of family and social relations. Savings group members rely on money that is given to them by partners and family members to make savings contributions to the groups, while they also transfer some of their share-outs and loans to family members and friends. This is particularly true for younger members. As such we argue that the socially embedded nature of young people's engagement with savings group needs to be taken into account. The tension between the primary focus on the individual within youth saving programming, and the socially embedded nature of their engagement, has important implications for programme design, implementation and evaluation.

• (Article) Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact

  01.12.2017
  Value chain development (VCD) with smallholders forms a central element of the poverty reduction strategies of governments and NGOs in developing countries. Nevertheless, too little is known about how VCD interventions are designed and implemented, the approaches and tools used, and the challenges faced in the process. This paper helps to fill this gap with evidence from six cases in Uganda. For each case, data was collected from interviews with NGOs, government organizations, buyers, and smallholder business organizations. Results indicate that use of available VCD guides and tools facilitated productive partnerships among chain actors, engagement with support organizations, and feedback mechanisms on intervention processes. Results also challenge NGOs, government agencies, and researchers to better understand the circumstances of resource-poor chain actors, the implications of VCD on gender relations, and the cultural and business context when designing and implementing VCD. This calls for stakeholders to employ a broader approach to VCD, using a combination of available and new tools, and to seek out deeper collaboration with key actors within and outside the value chain.