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.

Farm Transformation of the Tomato Value Chain in Kenya

The Kenyan tomato value chain represents a hallmark of agricultural transformation, characterized by a massive twelve-fold expansion in production volume between 1980 and 2022 to meet a five-fold increase in domestic consumption.

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.

High Value Crop Commercialization and Women’s Empowerment in Sub-Saharan Africa: Panel Insights Reinforced by Double Machine Learning and Quasi-Experiments

We examine how agricultural commercialization relates to women’s empowerment across Ethiopia, Malawi, Tanzania, Uganda, and Nigeria using LSMS-ISA household panels (2010–2020), a modified A-WEAI (5DE), two-way fixed effects, Double Machine Learning, and propensity-score matched difference-in-differences. Entry into markets (extensive margin) is consistently associated positively with empowerment where identification is strongest: PSM-DiD shows noticeable gains when households begin selling any crops—especially in Ethiopia, Malawi, Tanzania and Nigeria—and positive correlations when existing sellers add cash crops to sales in Malawi (Ethiopia marginal).

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.