Annual Progress Report: Alliance for Inclusive and Nutritious Food Processing Program

The program operates in four countries: Ethiopia, Kenya, Tanzania, and Zambia. During the reporting period from October 1, 2018, to September 30, 2019, AINFP provided customized technical assistance to 24 new food processors, with a majority processing dairy products or fortified maize flour. A total of 51 food processors received customized technical assistance, with 43% classified as transitional, 33% foundational, and 24% accelerators. As a result of the assistance, 57% of the assisted processors started applying improved management practices, mainly around food safety and quality standards. The program adopted a new approach to roll out Sector Wide Trainings (SWTs), focusing on digital, blended-learning solutions to transfer real-time training and advice. TechnoServe engaged a fellow to conduct a gap analysis study to develop an aggregator training model for efficient and inclusive supply chain management. The study revealed that aggregators require additional technical, management, and soft skills to streamline existing business practices, expand client networks, and achieve scale. An aggregator training model building on the Business Incubator and Accelerator (BIA) training framework was developed. Through Initiative for Smallholder Finance (ISF), AINFP continued supporting individual processors in Kenya, Tanzania, Zambia, and Ethiopia to identify their financing needs. The program held meetings with various financial providers to understand their financing models, focus areas, and products suitable for assisted food processors. AINFP provided access to finance customized assistance to 12 processors, with three accessing financing worth USD 340,805 and five on the pipeline to be financed with an estimated value of over USD 2,000,000. AINFP promoted gender integration by recruiting female-owned/led processors and establishing program gender champions to undertake internal assessments on gender integration opportunities. The program supported selected clients to better understand the BoP market opportunity and define an effective market and distribution strategy to target lower-income consumers with nutritious products. The main challenge encountered was low pull for technical assistance from processors, particularly foundational and transitional processors, who may not have resources to implement project charters or Quick Win recommendations. To counter this, the program improved the client selection process to assess leadership and commitment, and ISF provided financing options to processors seeking access to finance. Despite the challenges, the program has progressed well in the last year of implementation, particularly in the provision of customized technical assistance. Major milestones have been reached in the development of a new approach to Sector Wide Training, and the program has made significant progress in promoting gender integration and supporting processors to access finance.