Program Design for Value Chain Initiatives

This toolkit is designed for use after the value chain has been selected and focuses heavily on program design, including research and analysis necessary for program design. While the process is somewhat iterative and there is recognition that research gathered informs many phases at the same time, the process is presented in a very step-wise way. What USAID considers value chain analysis is given a short section at the beginning called “market research for program design,” and this comprises value chain dynamics (written description of changing factors, BEE, etc.) and value chain mapping (pictorial representation of actors and relationships now). The document also contains guidelines for very early program design, such as choosing a target group and assessing implementing agency and program context.

The assumptions about value chain development in this approach are almost identical to those of the USAID approach: it takes a systemic view; aims for poverty reduction and sustainability; is demand-driven; emphasizes relationships and the business enabling environment. The approach stresses analyzing opportunities and constraints, but uses the word “strengths” in place of “opportunities” to focus on the ability of businesses and associations to take advantage of opportunities. Two good qualitative tools included are a strengths assessment table and a constraints analysis tree; the latter is especially useful for identifying the underlying causes of constraints and narrowing down the ones that are feasible and strategic to address.

The approach addresses the problem of how to move from analysis to action through a sustainable solutions finder, which identifies solutions to priority constraints and sustainable business models for selected solutions. This includes a solution tree based on the constraints tree so that solutions address all underlying causes of constraints. This feeds into an intervention table, which considers the entry point, piloting, replication, the exit strategy, and overall intervention approaches. Another step included in the program design process is contingency planning/risk management. The guide is comprehensive in terms of program design, including implementation planning and a budgeting guide.