SMEs are critical in shaping the nutritional outcomes of local food systems; 64% of food consumed in Africa is handled by millions of SMEs along agri-food value chains as input suppliers, off-takers, processors, distributors, or otherwise. They constitute a pull factor, aggregating smallholder farmers into the value chain and upgrading the quality and efficiency of farming, leading to a more sustainable food system.

Yet, agri-food SMEs remain largely untapped for developing and scaling up market-based solutions that can improve the consumption of safe and nutritious food. This is largely due to the critical barriers faced by agri-food SMEs that drive up the cost of doing business, including excessive costs for equipment and energy, inadequate infrastructure and financial and credit restraints.