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Building a Sustainable Technical Assistance Market for Agri-SMEs

Aceli Africa

This learning brief examines the current state of the technical assistance (TA) market for agri-SMEs, drawing on Aceli’s experience supporting over 700 SMEs since launching its TA program in 2020. It reflects on lessons learned and practical levers for developing a more financially sustainable TA marketplace.

Despite significant demand for support, the TA market remains fragmented, with misaligned incentives among SMEs, service providers, lenders, and donors often leading to sub-optimal outcomes. Grant-based TA models frequently fail to align with commercial objectives such as improving access to markets and financing, which can dilute impact and distort market dynamics.

Aceli’s experience suggests that TA is most effective when stakeholder incentives are better aligned. While lender engagement was initially limited, participation has increased over time as Aceli’s financial incentives strengthened lenders’ appetite and capacity to serve agri-SMEs, helping build pipeline and improve portfolio performance.

Website: https://aceliafrica.org/data-learning/building-a-sustainable-technical-assistance-market-for-agri-smes/

    Date
    21 Jan 26
    Type
    Data Briefs
    Region Focus
    East Africa
    Sector Focus
    Agriculture
    Sub-Sector Focus
    Agriculture Finance