READ THE REPORT

Agricultural value chains, which comprise dense networks of many Micro, Small, and Medium Enterprises (MSMEs), play a pivotal role in driving East Africa’s economic growth and development. Recent initiatives, including the African Continental Free Trade Area, have placed a particular emphasis on empowering women and youth within these value chains. 

However, the small scale and informal nature of their enterprises within East Africa’s value chains have typically posed significant challenges for accurate data collection and profiling. Concerning the design of meaningful value-chain development programmes, poorly representative data can undermine effective targeting and risks the misallocation of development resources.

Our latest MSME report provides a comprehensive look into the agricultural sector and the broader MSME landscape in Kenya, Uganda, Rwanda, and Tanzania. With data from over 25,000 businesses, the report presents representative demographics, business profiles, and key economic activities for informal MSMEs across East Africa.

HIGHLIGHTED DATA

• Youth-Led Growth: 72% of MSMEs are led by young people, with women spearheading many of the more established enterprises. This highlights the significant role of youth and women in driving growth and innovation in the region.
• Educational Access: While 87.3% of MSME owners have at least a primary education, limited access to advanced education remains a challenge, hindering further business growth and specialized skills development.
• Community Networks: 78% of MSMEs are part of cooperatives or trade associations, which play a vital role in offering support, networking, and access to resources that boost business resilience.
• Product Mix: Farming, fishing, and trade are the dominant sectors, with women excelling in vegetables and youth leading in the production of animal products. These trends showcase the diverse ways MSMEs contribute to East Africa’s economy.
• Digital Engagement: 43% of MSMEs use smartphones, making mobile technology a crucial tool for accessing markets, information, and digital services. This connectivity is key to driving business growth and innovation.

The insights from this MSME report underscore the vital role of agricultural value chains in East Africa’s economic landscape and highlight the unique contributions of youth and women-led enterprises. Despite challenges related to the informal nature and small scale of these businesses, MSMEs continue to drive economic growth, supported by community networks and cooperative frameworks. However, gaps in educational access and digital engagement remain barriers to their full potential. 

By leveraging these findings, local partners, policymakers, and development stakeholders can design targeted programs that enhance digital access, educational support, and market connectivity, ensuring that interventions effectively empower MSMEs and support inclusive economic growth across East Africa.