Symbiosis Between Commercial Small-Scale Producers and Micro, Small and Medium Enterprises in the “Hidden Middle”: Evidence from the Horticulture Value Chains in Africa and Asia

Rapid urbanization and changing diets in Africa and South Asia are raising demand for horticultural products, creating opportunities for agrifood transformation. This report synthesizes evidence from the INCATA project (Linked Farms and Enterprises for Inclusive Agricultural Transformation in Africa and Asia). It finds that small-scale producers are highly commercial and often embedded in mutually beneficial relationships with micro, small, and medium enterprises (MSMEs) in the “hidden middle” of input supply, trading, logistics, and related services.
Transformation of the Aquaculture Value Chain in Kenya

The Kenyan aquaculture sector has undergone a profound structural transformation over the last decade, evolving from a subsistence-based activity into a sophisticated commercial ecosystem. This growth is most evident in the cage-based segment of Lake Victoria, which saw an explosive 1,300-fold increase in production volume between 2014 and 2024.
Social Learning and Peer Influence in Smallholder Commercialization

This paper examines how peer behavior influences small-scale producers’ (SSPs) decisions to purchase inputs and sell outputs in six sub-Saharan African countries. Using comparable nationally representative panel data and a correlated random effects framework, we assess the extent and shape of social interactions driving input and output market participation.
Welfare and Opportunities for Small-Scale Producers and MSMEs in Rural Africa: An Econometric Analysis

This study examines how participation in commercial agriculture and micro, small, and medium enterprises (MSMEs) is associated with inclusive development outcomes for small-scale producers (SSPs) across six African countries representing diverse income levels.