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Mandera County, the second poorest county in Kenya, grapples with recurrent drought, seasonal flooding, violent extremism, and economic alienation from the rest of the country. Over 89 percent of Mandera’s 900,000 residents live below the poverty line.

Globally, 65 million small and medium enterprises (SMEs) face a $5.2 trillion financing gap. SMEs not only represent the large majority of businesses but also create more than half of the world’s employment. A lack of finance impedes the growth of these critical businesses and the economies in which they operate. 

The December 7, 2023 Finance Champions meeting featured four finance-focused presentations on:

Society Development Committee, or SDC, based in Faridpur, Bangladesh, is a microfinance partner of the Feed the Future Bangladesh Livestock and Nutrition Activity, funded by USAID and implemented by ACDI/VOCA. Through this partnership, thousands of people working in Bangladesh’s livestock sector have benefited from microfinance products.

Accessible finance is vital for small businesses and entrepreneurs. Yet, oftentimes, they struggle to access financing from traditional sources because they lack the knowledge to produce comprehensive financial documentation required by banks. Meanwhile, financial institutions may perceive small businesses as higher risk clients due to their size, limited track record, and insufficient collateral. In many countries, like Rwanda, financial institutions have limited knowledge in the livestock value chain financing opportunities compared to crops value chain.

In rapid response to the abrupt trade disruptions resulting from Russia’s blockade of the Black Sea—a tactic in its war on Ukraine, the U.S. Agency for International Development (USAID) launched the Agriculture Resilience Initiative (AGRI)-Ukraine. AGRI-Ukraine is critical to supporting Ukraine’s export and agricultural sector needs, which are expected to remain vulnerable to the Russian Federation’s aggression in the months and years to come.

The Finance Champions group was established in March 2023 with the aim to share innovative approaches being tested by USAID Missions, Bureaus and Independent Offices and to exchange learning on the topic of mobilizing finance in development. This group, which is internal to USAID, meets every six weeks, and has grown from an initial group of 20 to 160 members.

Developed through a partnership between the USAID and Mastercard, Project Kirana focused on helping women micro entrepreneurs gain the tools they need to grow their businesses in India. Project Kirana recognized the complex set of problems encountered by women micro entrepreneurs in India: limited business and digital financial capabilities, and limited access to formal financial services. By equipping women entrepreneurs with the knowledge and tools they needed — including financial and digital literacy expertise, business management skills, and strategies for addressing cultural barriers — over 2,500 women were able to grow their small retail businesses and increase their incomes.

Lack of access to finance is universally regarded as one of the most significant constraints to economic development. Without affordable and appropriate capital, Northern Kenyan individuals and micro, small, and medium enterprises (MSMEs) are prevented from participating in the formal economy, capitalizing on business opportunities, investing in their livelihoods, and responding to shocks, such as natural disasters.

This blog was originally posted on Climatelinks as a collaboration during COP28.

Several terms have gained prominence in recent times. The SARS-CoV-2, Covid-19, pandemic caused much thinking on localisation and heightened questions surrounding shifting the power. As we moved forward from the worst of the pandemic, lessons have been drawn in different ways by those seeking to make changes happen. Regularly, this is within the specific organisational agenda noting one of the rules of a bureaucracy is to perpetuate itself. Shifting the power is great – as long as my job is ok?

In agricultural market systems development (MSD), a crucial debate has emerged—whether to adopt a crop-agnostic or a value chain-specific approach. Day 2 of the 2023 Market Systems Symposium explored this debate with insights from experienced professionals, shedding light on the complexities and considerations within this strategic decision-making process.

This blogpost is one in a series of blogs sharing insights gained from the Market Systems Symposium 2023. The MSS blogpost provides a brief snapshot of key insights shared across a number of different sessions in MSS 2023 held in Cape Town between 13-15 November 2023.

Understanding and influencing norms and behavior change emerge as critical components for fostering lasting impact. Day 3 discussions among practitioners at the 6th annual Market Systems Symposium shed light on diverse perspectives and strategies employed across different sectors within the development landscape to influence behavior change.

This blogpost is one in a series of blogs sharing insights gained from the Market Systems Symposium 2023. The MSS blogpost provides a brief snapshot of key insights shared across a number of different sessions in MSS 2023 held in Cape Town between 13-15 November 2023. Market Systems Development (MSD) is more than a technical approach—it demands operational adaptation to effectively drive transformative change. On Day 2 of the Market Systems Symposium 2023 discussions among industry experts, valuable insights were shared on practical steps organizations can take within the operational and grants arena to align with the principles of MSD.

As a systemic lens is being more widely accepted across development programming, organizations and programs have witnessed a notable shift towards embracing a more intentional Market Systems Development (MSD) approach. This transformation has been spearheaded by thought leaders and change agents who recognize the imperative of adopting a systemic lens. In this blog, we explore insights shared by some prominent practitioners in the field—on Day 2 of the Market Systems Symposium 2023—offering an overview of how their respective organizations have navigated this evolution.

In a three-part blog series, we share lessons on the process of evaluating the Cambodia Feed the Future Harvest II program focused on what systemic changes the program made progress on in the horticulture sector. (Full report here). The lessons are:

In the dynamic landscape of international development, the intersection of market systems development (MSD) and conflict presents a unique set of challenges and opportunities. Several conversations on Day 1 at the Market Systems Symposium 2023 centered around MSD and conflict, drawing on experiences from Ukraine, Afghanistan, and Nigeria.

In the vast expanse of global development, where complexity too often reigns alongside chaos, a symphony of collaboration is playing out, weaving together diverse contexts and perspectives. The 6th annual Market Systems Symposium 2023 is bringing esteemed practitioners of Market Systems Development (MSD) to share insights and experiences, shedding light on the intersections of MSD with the three key themes this year: food security, conflict, and climate change. Kristin O'Planick, Market Systems Team Lead at USAID, and Elisabet Montgomery, Senior Policy Specialist Market Development at SIDA—both key figures in the donor working group on MSD—offered opening remarks and a glimpse into the evolving space of market systems development.

The blog provides a summary of how MSR analysis can provide important insights into local contexts that should shape how activities are designed and implemented. The case of Haiti is of particular interest in that the various forces and factors affecting how smallholders manage risks from shocks and stresses have had a profound effect on how they engage market systems. As the authors explain, the MSR analysis provided insights into how smallholders manage a portfolio of animals to cope with such a dynamic and uncertain context.

The blog provides an excellent case of how smallholders can be integrated into a high-value supply chain when the contexts are effectively considered. The example shows how context specific efforts the generate value will take off, and can emerge as an attractor that encourages ongoing change with knock-on effects. It is also important to recognize that there are concerns related to only working with a single firm.

The blog highlights the critically important learning function that in many parts of international development are quite weak. The blog provides an example of how practitioners in the area of employment and labor markets have realized the importance of learning and sharing across projects, countries, donors, etc. to accelerate the learning related to complex labor related challenges. While the blog does not focus on the importance of taking systems lenses, it is useful to note that systems thinking is a foundational element of the community of practice.

Climate change has been a slow-moving risk for some time now, but what is often missed, which this blog points out, is that there are immediate consequences affecting most people around the world, especially the most vulnerable. As the blog highlights, increasing weather variability is a challenge for most smallholder farmers, including in Uganda. At the same time, the ability to effectively forecast weather has remained low, which creates a circumstance of increasing risks since erratic weather patterns mean farmers are often caught off guard damaging crops and reducing productivity.

Have you ever wanted to see where USAID provides funding, or what USAID invests in?

In the second blog in the series, the authors focus on the importance of using a retail distribution market systems lens to gain insights into the business realities of selling construction products and services to low-income customer segments. For example, low-income customers buy in smaller lots and often have important considerations related to decision-making, coping strategies, and trust that require specific business strategies and tactics. The blog examines a few examples from TCIS’s work in relation to how they applied systemic thinking related to retail distribution to improve housing outcomes for incremental builders.