WHAT IS 2SCALE?
The Dutch-funded project titled “Toward Sustainable Clusters in Agribusiness through Learning in Entrepreneurship” (2SCALE) started in June 2012. The program manages a portfolio of public-private partnerships (PPPs) that accelerate inclusive business in target agri-food sectors and industries. 2SCALE offers a range of support services to private partners – companies and farmer groups – enabling them to produce, transform and supply quality food products to local, national and regional end-user markets, including Base of the Pyramid (low-income) consumers. 2SCALE strengthens the capacity of smallholder farmers and SMEs to accelerate value chain and private sector development, through innovation and coordinated action, by improving business and organizational skills, including those required for more effective participation in (financial) markets. Partnership agreements are developed with companies doing business in Africa with inclusive business agendas or adding value to selected value chains.
To deepen and scale over 50 public-private partnerships in 9 focus countries in Africa, which together will offer significant and durable opportunity to at least 500,000 smallholder farmers (of which 40% will be women) to improve their livelihoods and to at least 2,500 SMEs (of which 40% will be female-headed) to improve sales and provide jobs, while sustainably supplying food to regional, national and local markets, of which 40% will be BoP consumers.
Partnership brokering and facilitation
Because of its approach, 2SCALE’s entry point is a business proposal from a local trader, a farmer cooperative, a processing firm, any value chain actor with a good idea actually. Partnership facilitators help translate the idea into a viable business and broker the necessary partnerships throughout the chain. We mobilize and train groups of farmers, and create linkages to ensure that all elements – technology, organizational capacity, market access, credit, extension advice, are in place. The results? Agribusiness clusters and commercial value chains that compete effectively in the market, benefitting producers, consumers, and everyone in between.
1. Developing Agribusiness Clusters (ABC)
Agribusiness Clusters are local multi-actor networks that support groups of farmers in inputs, information and finance. Within the clusters, farmer groups are linked to input organizations and are trained in best farmer practices in order to increase their production capacity. 2SCALE strengthens the ABCs to maintain fair and sustainable relations with farmers so they are empowered to see their farm as a business and negotiate their own prices and deals.
2. Business Support Service (BSS) Strengthening
2SCALE is not a project pushing a certain methodology or certain solutions, 2SCALE supports already existing value chain actors that have a good idea to become more inclusive. These business champions have already demonstrated that their business works, but now want to see how they can involve the Base of the Pyramid (BoP) – the nearly four billion people that earn less than US$ 4 per day – in their business model. The interventions of the project are geared towards what these business champions need, trying to overcome major bottlenecks or challenges.
These business champions can be Producer Organizations, Processors, Traders or any other agricultural value chain actor. 2SCALE has set-up a community of business trainers to train and mentor business coaches that support producer organizations and private sector companies. See Capacity strengthening tools to learn how we do this.
3. Developing BoP Products and Markets
2SCALE has performed market research on food consumption in the 9 African target countries providing a better understanding of the BoP consumers in terms of eating habits, buying behavior and food aspirations. 2SCALE makes sure this crucial information flows through the entire chain back to the farmer level and makes it the starting point of every new innovation and business idea. Selected 2SCALE partnerships include a component specifically looking at innovative ways for product development, marketing and distribution to the Base of the Pyramid. These BoP Pilots respond to a specific challenge or opportunity identified by the lead business champion in the partnership. See BoP Pilot cases for more information.
The International Fertilizer Development Center (IFDC) is a public international organization addressing critical issues such as international food security, the alleviation of global hunger and poverty, environmental protection and the promotion of economic development and self-sufficiency.
The BoP Innovation Center (BoPInc) accelerates the number and impact of inclusive innovations in low-income markets. Inclusive innovations serve the demand of the poor and create shared value for all stakeholders involved.
ICRA strengthens innovative capacity by providing training and coaching to professionals and to inter-organisational and multidisciplinary teams of staff from education, research, and development organisations.