2SCALE: The largest incubator for inclusive agribusiness in Africa


This project is active

2SCALE offers a range of support services to private partners – companies and farmer groups – enabling them to produce, transform and supply quality food products for local, national and regional end-user markets, including Base of the Pyramid consumers.

2SCALE recently entered its second phase. The project is implemented by IFDC, BoPInc and SNV. The programme is funded by the Netherlands Ministry of Foreign Affairs.

Incubating inclusive agribusiness

2SCALE is an incubator program that manages a portfolio of public-private partnerships (PPPs) for inclusive business in agri-food sectors and industries. 2SCALE offers a range of support services to its business champions (SMEs and farmer groups) and partners, enabling them to produce, transform and supply quality food products. These products go to local and regional markets, including to base of the pyramid consumers.

How the programme works

2SCALE focuses on establishing agribusiness clusters built around business champions. Champions are either entrepreneurial producer organizations or local SMEs that trade or process the produce of farmers. By providing support to these clusters, 2SCALE is developing products and markets for local consumer markets, preferably at the base of the pyramid.

2SCALE - phase II has the following targets:

  • Scale over 60 public-private partnerships
  • Improve the livelihoods of over 750,000 farmers (50% women, 40% youth)
  • Develop new business for more than 5,000 SME and producer organisations (2,500 female-headed, 1,000 young entrepreneurs)
  • Improve access to nutritious food for at least 1,000,000 BoP consumers
  • 375,000 hectares covered by eco-efficient agricultural practice
  • 20,000 new non-farming jobs (10,000 for women, 8,000 for youth)
  • € 50,000,000 co-investment from private sector

The project is active in 8 countries: Burkina Faso, Côte d'Ivoire, Ethiopia, Ghana, Kenya, Mali, Niger and Nigeria

Project in countries

Burkina Faso

In Burkina Faso, the following sub-sectors have been identified as most potential for 2SCALE: rice, maize, cowpeas, cassava, sweet potatoes (dark orange flesh), green beans, fonio, tomato, onion, Irish potato, banana, mango, soya, shea butter, groundnut, poultry meat, eggs from modern breeding, meat of small ruminants, milk and pork.

 

 

2SCALE will create value for agricultural products by actively participating in the building of Burkina Faso’s processing sector’s industrial structure. In fact, the processing level is around 3-10 %. By orienting its actions to improve this rate, the program can effectively impact the performance of these key value chains.

Ghana

Food systems are rapidly changing in Ghana. This is influenced by urbanization, rising incomes and population growth. Income increases also pose a new challenge to producers and processors in responding to the changes in food preferences. These shifts are expected to continue which should give rise to systems that can appropriately respond to these shifts in food needs.

The sub-sectors in staples (maize, rice, sorghum, cassava) and in oil seeds (soybean) have a significant potential to improve incomes and contribute to improved livelihoods and nutrition. Essentially, value chains linkages can be facilitated within a partnership to promote increased farmer access to productive resources to increase yield and income.

Overall, the sub-sectors are high in demand. However this demand is largely unfulfilled because production is not sufficient to keep pace with growing demand. This presents opportunities for farmers to adopt best production systems to increase production of various crops for a guaranteed income source. Further, non-farm opportunities in staples are high because of the wide farm input services market network which can provide additional opportunities for jobs and income.

The BoP potential in maize, soy, cassava and sorghum are high. They both provide opportunities for the production of products that meets the needs of people at the base of the pyramid. Soybeans are nutrient dense and can solely be used to develop BoP products.

A number of private sector businesses are available to drive partnerships. These businesses have potential to further unlock the potentials in the various sub-sectors by systematically addressing the bottlenecks that limit market responsiveness on the part of smallholder farmers in adapting to changes in the food system.

In Ghana, activities focus on the northern part of the country. Therefore the project office is based in Tamale.

Niger

There are various opportunities for impact in Niger. The value chains with high potential to achieve 2SCALE’s objectives are onion, potato, moringa, cassava, tomato, cow milk, camel milk, red goat, millet, sorghum, rice, corn, groundnut and sesame.

In contrast to natural hazards, the country’s topography and the local and regional market trends that affect food production and income generation activities in the country, the following positive factors were found to have the potential to support 2SCALE’s intervention in Niger.

  • The improvement of irrigation systems with the Kandadji dam that is currently in construction, and in irrigable valleys and basins in order to improve agricultural production in Niger (MAG, 2015).
  • The country could exploit more of its underground water resources to increase agro-pastoral production.
  • Livestock contributes to 25% of Niger’s population needs; which places it as the first activity contributing to the fight against poverty and food insecurity. This sector significantly improves Niger's agricultural trade balance (MAG, 2015).
  • The possibility to facilitate warrantage in these value chains.
  • Women make up half of Niger's population. Their inclusion in the selected sub-sectors will be an important factor of socio-economic growth.
  • The geopolitical position of Niger, between the Maghreb and Sub-Saharan Africa, gives it an important position in regional trade. Its membership in several sub-regional and international organizations (UEMOA, ECOWAS, CEN-SAD, AU, etc.) is also an asset. (MAG, 2015).Thus, sub-regional export opportunities towards other BoP markets is possible.

Ethiopia

Overall, teff, rice, sorghum, vegetables (onions and tomatoes) potatoes, fruits, spices, dairy, apiculture, poultry (eggs and meat) and goats and sheep, are the selected sub-sectors for 2SCALE’s intervention in Ethiopia.

The identified areas of involvement that will improve the most these value chains are the use of climate smart technologies, environment preservation (eco-efficient practices), small irrigation schemes, and technology aided practices in order to decrease cost of operations and therefore lower selling prices for the Base of the Pyramid (BoP) consumers.

Sector transformations are also expected in conjunction with other SNV-Ethiopia programs previously involved in some of the selected value chains.

Kenya

Overall, rice, sorghum, sweet potato, fresh vegetables (onions, tomatoes, chilies), African leafy vegetables (ALVs), groundnuts, soybeans, dairy, eggs (poultry) were the selected sub-sectors for 2SCALE’s intervention in Kenya.|

Improved feed quality for high quality dairy, climate smart farming technologies in the ASALs (Arid and Semi-Arid Land) innovations in pest’s management and farming methods, new product development (i.e affordable and nutritious), access to finance, last mile distributions to the BoP consumers and marketing practices are some of the key areas were 2SCALE’s intervention will create important impact for the selected Kenyan value chains.

Mali

In Mali, the modernisation of agriculture (mechanisation, diffusion of new agricultural technologies, access to agricultural inputs, training of producers, etc.) have resulted in an increase in crops, animals and fish production despite the few rainfalls and the country’s spatio-temporal distribution.

In view of the continuous increase in grain production and surpluses, more efforts are required to better identify and rectify agricultural products processing, marketing and overall management. For that, 2SCALE’s intervention in Mali will address climate smart solutions, access to market, processing SMEs and better interconnections between value chains stakeholders.

Within the selected values chains (maize, rice, wheat, vegetables, groundnut, soya, milk, poultry and cattle meat); there are several opportunities for the program to improve their capabilities to alleviate food and nutritional security, create more income options for women and the youth, improve crops resilience and to elongate their shelf life.

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