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

Implemented by ACDI/VOCA in partnership with Agova, Open Capital Advisors, and Dimagi, the Activity will improve SMEs' competitiveness and access to finance. The Activity uses a facilitative approach and works closely with local partners to drive lasting systemic changes that create sustainable impact at scale. To achieve this aim, the Activity will improve SMEs' competitiveness and access to finance. Objective 1 focuses on increasing access to finance for agricultural SMEs by strengthening the ability of banks and microfinance institutions to serve SMEs and catalyzing the growth of non-bank financial institutions. ACDI/VOCA will build 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. Objective 2 aims to increase competitiveness for SMEs' products by strengthening SME management and marketing capacity and improving 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 improve their capacity 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 prices. The Activity will focus on the Lusaka, Central, and Eastern Province regions, with a reporting period of Quarter 2 (January 1 to March 31st), 2021. ACDI/VOCA will partner with financial service providers, the Ministry of Agriculture, the Ministry of Commerce, Trade and Industry, the Ministry of Finance, and multiple small and medium enterprises to achieve the Activity's objectives. The Activity will also mainstream Gender, Youth, and Social Inclusion (GYSI) throughout project interventions and facilitate targeted empowerment activities as needed. The Activity's approach is based on ACDI/VOCA's inclusive market systems approach, which addresses the root causes of poorly performing markets. By leveraging the team's understanding of the context and markets in Zambia and the greater region, ACDI/VOCA will rapidly start up, convene private sector actors, and catalyze SME growth in target agricultural and livestock value chains. Many SMEs currently struggle to access financing, often lack business management skills and technology, or have limited access to markets. ACDI/VOCA will boost their competitiveness by addressing these constraints. The Activity will also focus on increasing the competitiveness of elements along the value chain, including SMEs themselves. This will be achieved by strengthening SME management and marketing capacity and improving 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 improve their capacity to seek and qualify for loans. The Activity's objectives are aligned with the USAID Forward priorities, which focus on creating jobs and increasing the profitability of agricultural SMEs in Zambia. The Activity will also mainstream GYSI throughout project interventions and facilitate targeted empowerment activities as needed. This includes facilitating targeted empowerment activities for women and youth to participate in and benefit fully from the EDGE activity as SME owners, managers, and employees. The Activity's approach is based on a facilitative approach and works closely with local partners to drive lasting systemic changes that create sustainable impact at scale. ACDI/VOCA will leverage its team's understanding of the context and markets in Zambia and the greater region to rapidly start up, convene private sector actors, and catalyze SME growth in target agricultural and livestock value chains. The Activity will also mainstream GYSI throughout project interventions and facilitate targeted empowerment activities as needed.