THE USAID-funded EDGE Project, an initiative that aims to increase the profitability and productivity among agricultural SMEs, has been introduced at the perfect time in Zambia because it will result in SME sector growth, say, three entrepreneurs.

The USAID Zambia Enterprise Development and Growth Enhanced (EDGE) Project was recently rolled out in the country with a view to boosting SMEs’ competitiveness by addressing key constraints small businesses face including lack of access to capital. It aims to increase the profitability, productivity, and job creation of agricultural SMEs by addressing key constraints in access to finance, business management, technology, and access to markets.

The Project is targeting to improve the performance of 450 agro-SMEs by increasing their profits by 30%, increasing their revenues by 40%, and creating 2,500 full-time jobs over the next five years. It will also apply its inclusive market systems approach, which addresses the root causes, rather than the symptoms, of a poorly performing market.

EDGE has so far recruited an initial cohort of 10 Business Advisors (BAs) – 4 in Eastern, 4 in Central, and 2 in Lusaka. In order to familiarise the BAs with the EDGE Project, develop a comprehensive understanding of their roles and responsibilities, and equipping them with the necessary skills to successfully accomplish their duties, EDGE conducted two-day BA Onboarding Training from April 27-28, 2021, held at the EDGE offices.

Commenting on the EDGE Project and its objectives in Zambia’s agricultural sector, three BAs emanating from prominent business entities hailed the Project as having started at the ideal moment at a time when SMEs urgently need capacity building, knowledge, and skills to access finance and grow businesses.

MKP Farms, a youth-led agro Zambian business organization based in Chibombo District of Central Province, had the privilege of their founder and Chief Executive Officer, Michael Kabamba Phiri, being nominated as one of the BAs during the training.

Phiri hailed the EDGE Project as having aligned to one of his company’s strategic objectives of strengthening market linkages.

“Objective number 2 of the EDGE Project (increased competitiveness for SMEs’ products) is exciting news for us in agri-business because our core business is in market linkages of small-scale farmers to the well organised and profitable local and foreign markets. Therefore, in order for us to achieve this, we need to make our products competitive,” Phiri says.

He adds that the On-board Training had also illuminated solutions to addressing SMEs’ lack of access to capital required to grow their businesses.

“Access to agricultural finances has been a major challenge to most of us, the SMEs. However, the facilitative role the EDGE Project has embarked to link SMEs to a number of Financial Service Providers (FSP) with a focus on gender and youths is commendable because agri-businesses in Africa are dominated by women and the youths,” Phiri adds.

“The On-boarding Training presented a paradigm shift from ‘hand-outs donor-dependent approach to a facilitative and capacity development approach, which not only gives access to the finance but also to develop capacity on how to handle agri-businesses profitably and sustainably.”

And Nutrigreen Investment Limited was also selected for the On-boarding Training, with its Chief Executive Officer and Operations Manager Martin Salanda picked to be another BA for this activity. Nutrigreen’s core business is agriculture extension services and agricultural production.

“During the training, I learned about the burning passion by USAID EDGE moderators/team, who are desirous to see that at the end of 5 years of the Project, SMEs, together with BAs, should have boosted their business competitiveness to access finance, revenue, profits, and full-time employment,” says Salanda.

“I am honored to be part of such a progressive journey; it fits well with Nutrigreen’s mission and vision of realizing strategic food security and achieving long-term growth and sustainability. Redefining, Improving Lives.”

Fanwell Zulu, a BA with international networks using smart technology, appreciated the EDGE Project rollout’s timing as up-skilling business managers enables growth and productivity.

“I call it the ‘Age of EDGE’ because it has come at the right time. Most SMEs, including mine, are not founder management-free. The founder has to be around all the time to get things done. So, it’s only when management is thoroughly trained that the business can grow,” says Zulu.

“When management is fully trained and efficient, then business competitiveness comes in because market share has to be maintained and grown so that the business is profitable to enable growth. Then, access to finance gets to come in and all that is covered in the objectives of the EDGE activity. With technology, I have my human resources department out-sourced in India through an app and finance department out-sourced from Kenya through an app. This gives international perspectives. So, EDGE becomes relevant because it answers today’s business needs using the most efficient way of using BAs and visits, surveys and tailor-made solutions for each SME.”

The SME sector constitutes the vast majority of Zambia’s economy and remains the bedrock of the country’s economic development, but still face challenges in financial literacy and growing their marketing capacity to become more productive and economically sustainable.

Agova Zambia, the business development consultancy firm, is responding to this challenge and is currently an implementing partner on the EDGE project, a USAID-funded project, set to develop agro-focused SMEs’ marketing and management capacity.