Posted on February, 21, 2025 at 08:48 am
Agricultural value chains, comprising dense networks of micro, small and medium enterprises (MSME), are crucial to East Africa’s economic growth and development, according to a report by Sauti East Africa, a women-led social enterprise based in Kenya. Recent initiatives have increasingly focused on empowering women and youth within these value chains.
The report’s data, collected from over 25,000 MSMEs across Kenya, Uganda, Rwanda and Tanzania, provides a comprehensive analysis of the agricultural sector and the broader MSME landscape.
A key finding was the strong presence of youth in agricultural value chains, with approximately 72 per cent of MSMEs led by individuals aged 18 to 35. However, older MSMEs were 41 per cent more likely to be led by women. This trend may be linked to younger women’s responsibilities in domestic and childcare duties, delaying their entry into entrepreneurship.
The report highlighted the role of education in shaping MSME operations. In East Africa, agricultural commodity value chains involve farmers and producers, aggregators and traders moving goods from rural to urban areas, transporters and retailers.
Age-related occupational trends were evident within the sector. Farming, fishing and animal husbandry were 22 per cent more likely to employ older MSME owners, while small-scale trade is 16 per cent more common among youth-led MSMEs.
The report suggested that modernising agriculture through technology and improved credit access could attract younger generations, ensuring more balanced participation across age groups.
Among the most prominent value chains, vegetable and animal products stood out, reflecting the diversity of agricultural activities. Approximately 50 per cent of MSMEs operated in the cereal value chain, underlining the importance of staple food crops in the region. Additionally, a third of MSMEs were involved in edible vegetables, roots and tubers, underscoring the significance of horticulture and root crops.
The report also highlighted the growing digitalisation of business operations within agricultural value chains. Around 44 per cent of MSMEs already owned smartphones, enabling access to mobile banking services, productivity apps and e-commerce platforms.
Digital technology has been transforming agricultural value chains by improving access to inputs, credit, and market information. Platforms like M-Kulima and M-Pesa are streamlining transactions and enhancing input distribution efficiency.
Source: Down to Earth