This archive report was first published on 12 September 2019.
According to a 2019 report by the Alliance for a Green Revolution in Africa (Agra), small and medium-sized enterprises (SMEs) play a significant role in Africa's agriculture, controlling 64% of the food consumed across the continent.
This has led to the creation of vast opportunities for smallholder farmers, who are increasingly being connected to markets through the activities of SMEs.
The report notes that SMEs, which are often women-led, include food processors, wholesalers, and retailers, and provide a range of services, from transport and logistics to the sale of inputs such as fertiliser, farm machinery, pesticides, and seeds to farmers.
Dr. Thomas Reardon, a lead author of the report and a professor at Michigan State University, said, "This represents a shift from just decades ago. There has been a 'quiet revolution' in the agri-food private sector value chains, linking smallholder farmers to mushrooming urban markets. This has spurred farmers' participation in food and farm input markets."
Dr. Agnes Kalibata, the president of Agra, added that SMEs are the biggest investors in building markets for farmers today and will likely remain so for the next 10-20 years.
"They are not a 'missing middle', as is thought, but the 'hidden middle', ready for support and investment to thrive further," she said.
Published on September 12, 2019, the report highlights the importance of SMEs in Africa's agriculture and food security.
