Quarterly Report: Enterprise Development and Growth Enhanced (EDGE) Activity

The program aims to create jobs and increase the profitability of agricultural small- and medium-sized enterprises (SMEs) in Zambia. To achieve this goal, EDGE will improve the SMEs' competitiveness and access to finance. The program focuses on two main objectives: increased access to finance for agricultural SMEs and increased competitiveness for SMEs' products. To address the first objective, EDGE will strengthen the ability of banks and microfinance institutions to serve SMEs and catalyze the growth of non-bank financial institutions. ACDI/VOCA will build the capacity of financial service providers and introduce new financial products that enable them to develop tailored loan and investment products to cover the entire range of SME financial needs. To address the second objective, EDGE will strengthen SME management and marketing capacity and improve network input/output relationships. Through a business advisor network, ACDI/VOCA will support agricultural SMEs to reduce costs and increase efficiency by strengthening managerial capacity and improving their ability to seek and qualify for loans. This approach will increase the profitability of agricultural SMEs by facilitating greater revenue through increased sales and expanding access to new markets with premium sales prices. The EDGE program is committed to increasing gender equality and youth and women empowerment, so they can participate in and benefit from the program. The program will also focus on improving the competitiveness of elements along the value chain, including SMEs, to make their products more competitive. The geographic coverage of the program includes Lusaka, Central, and Eastern Province. The reporting period for this quarterly report is Quarter 3 (April 1 to June 30), 2021. The program has partnered with various local organizations, including financial service providers, the Ministry of Agriculture, the Ministry of Commerce, Trade, and Industry, and the Ministry of Finance, as well as multiple small- and medium-enterprises. The EDGE program uses a facilitative approach and works closely with and through local partners to drive lasting systemic changes that create sustainable impact at scale. ACDI/VOCA is applying its inclusive market systems approach, which addresses the root causes rather than the symptoms of a poorly performing market. The program has leveraged the team's keen understanding of the context and markets in Zambia and the greater region, successes achieved under the Production, Finance, and Improved Technology Plus activity, and trusted relationships within the Zambian agricultural sector to rapidly start up, convene private sector actors, and catalyze SME growth in target agricultural and livestock value chains. The program has made significant progress in Quarter 3, 2021, with various activities and interventions implemented to achieve the program's objectives. The program has also faced some challenges, including implementation challenges and environmental compliance issues. However, the program is committed to addressing these challenges and ensuring that the program's objectives are met. The EDGE program has a strong focus on sustainability and has put in place various mechanisms to ensure that the program's impact is sustained beyond the program's lifespan. The program has also established a strong monitoring and evaluation system to track progress and ensure that the program is meeting its objectives. Overall, the EDGE program is a significant initiative that aims to create jobs and increase the profitability of agricultural SMEs in Zambia. The program has made significant progress in Quarter 3, 2021, and is committed to addressing the challenges and ensuring that the program's objectives are met.