How agri-SMEs are turning farmer support into sustainable business models
Offering diversified services to smallholder farmers has proven to be both a strategic necessity and a condition for long-term sustainability for SMEs. However, to do so, these companies need to overcome many challenges. This is one of the key conclusions identified by ADA in a series of Smallholder SustaiNability Upscaling Programme (SSNUP) case studies which highlight the important role SMEs can play in supporting smallholder farmers, increasing their income and strengthening their resilience.
The case studies examine three agri-SMEs based in Senegal operating in the rice, millet and groundnut value chains. Following the first study on SFA, the second and third case studies focus on Kumba and Afrikamart. SSNUP mapped the operating models of these SMEs within their respective value chains. This process enabled the identification of specific business approaches used to establish and maintain close relationships with smallholder farmers who supply the raw materials essential to the SMEs’ operations.
The Kumba case
Kumba is a Senegalese company that benefitted from a technical assistance project co-financed by SSNUP through its partnership with HEKS-EPER (Balim Investments). The project enabled Kumba to reinforce its support for smallholder farmers while also addressing some of the barriers limiting its ability to respond to growing market demand and scale its export business. Different factors contributed to these challenges, for example, smallholder farmers often prioritised immediate cash payments from traders over formal contracts. In addition, climate-related uncertainty made harvest volumes and therefore Kumba’s supply of raw materials increasingly unpredictable. At the same time, weaknesses in internal management created recurring administrative inefficiencies.
The project strengthened farmers’ capacity, started the formalisation of relationships with producer groups and professionalised the SMEs internal operations. By integrating services such as technical training and guaranteed market outlets into their sourcing arrangements, Kumba worked towards addressing inconsistent quality and unreliable supply volumes.
The Afrikamart case
Afrikamart benefitted from a technical assistance project co-financed by SSNUP in partnership with Bamboo Capital Partners. The project aimed to strengthen its digital platform, expand its market linkages with suppliers and retailers as well as to improve its data, pricing and dispatching processes.
These improvements enabled the SME to reorient its activities to other value chains, including groundnuts. However, Afrikamart then faced a highly competitive aggregation market and difficulties in securing sufficient supply at competitive margins.
To increase productivity and volumes, the company therefore implemented a pilot credit programme for farmers to finance key inputs in 2025. Farmers were to repay the loans with the revenue generated from selling their produce. The objective of this approach was to create a mutually beneficial model helped Afrikamart secure supplies.