In this ‘MSME Champions’ interview, Hernan Manson of the International Trade Centre talks about a unique collaborative programme that links agricultural enterprises to finance and international markets. ‘MSME Champions’ is a series of interviews capturing the expertise and experiences of individuals and institutions supporting enterprises in the missing middle of agriculture, as part of an advocacy campaign for the International Day for Micro, Small, and Medium-sized Enterprises (MSMEs) on 27 June 2024.
The International Day for Micro, Small and Medium-sized Enterprises (World MSME Day) is an opportunity to reflect on the key role of enterprises in the missing middle of agriculture. Please tell us why and how the International Trade Centre (ITC) supports their growth.
Connecting agricultural MSMEs to value chains and helping them succeed is central to ITC’s mission. Smallholder farmers and agribusinesses are the engines of sustainable global, regional, and local food production systems, and must be valued accordingly. The prosperity of rural communities and their natural environment depend on the ability of farmers and agricultural MSMEs to earn a living income and access opportunities for growth in the domestic, regional and international markets.
Focusing on competitiveness, value addition within each country, market positioning, and strategic value-chain collaborations can help increase economic resilience, improve livelihoods, decrease reliance on imported goods, and generally shift the narrative for agripreneurs, rural communities, and farmers.
However, there can be no sustainable and inclusive growth without the necessary finance and investment. Unfortunately, the massive financial needs of agricultural enterprises are still unmet. Providing innovative and inclusive solutions for agri-MSMEs that are cost-effective and work for all is one of the most important topics ITC and development partners such as the International Fund for Agricultural Development (IFAD) are working on. It represents both an opportunity and a challenge. It needs several stakeholders, both public and private, to work together.
What makes the Alliances for Action programme at ITC a unique approach to supporting enterprises in agriculture?
ITC’s Alliances for Action programme is an approach that seeks to establish collaboration to transform food systems and advance the Sustainable Development Goals through producer partnerships that cultivate ethical, climate-smart, sustainable agricultural value chains in developing countries.
Working in silos on singular issues or isolated stages of value chains will not achieve comprehensive, lasting transformation. Through Alliances for Action, we engage with hundreds of stakeholders across 35 countries in Africa, Latin America, the Caribbean, and the Pacific. Together with our partners, we seek to build more sustainable and competitive conditions at every step of agricultural value chains. Our participatory approach, collective actions and co-investments from farm to shelf can lead to impact that is locally-owned, and most importantly, transcends the capabilities of any one organization and the timeframe of a specific project or program.
At ITC, we work with partners at all levels, including entrepreneurs, policymakers, large corporations, international institutions, and funders, to ensure that all of the solutions we develop are locally-owned and locally-led so that they can deliver lasting change. Today is a very important World MSME Day, as it also marks ITC’s 60th Anniversary. I take this opportunity to thank the many agricultural enterprises, partners and colleagues that make our work meaningful.
What message would you like to share with donors, commercial banks and other players that hesitate to lend to agricultural enterprises?
It is very concerning that the frontrunners of agricultural value chains are waiting for access to investment finance. Ensuring that financing opportunities are accessible to a wider range of farmers and agricultural businesses is vital.
ITC has a unique mandate to work with MSMEs, and our portfolio gives us access to thousands of agribusinesses and inclusive impact investment opportunities around the world. Our experience and on-the-ground network ensure direct follow-up and engagement with enterprises in the missing middle. With this combination, we aim to develop and implement innovative and complementary strategies to bridge the gap between supply and demand in the sector.
The more actors engage, the merrier. That’s why we are very enthusiastic to collaborate in this field with valuable partners such as the Smallholder and Agri-SME Finance and Investment Network (SAFIN) and IFAD. This World MSME Day, we celebrate the hard work of thousands of entrepreneurs around the world and look forward to collaborating in pursuit of our shared goal: enhancing access to financing opportunities for MSMEs, and enabling fair and responsible trade and development for all.
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Meet the Champion
Hernan Manson, as the Head of Inclusive Agribusiness Systems at the International Trade Centre (ITC), plays a pivotal role in advancing SME competitiveness within global markets. His work primarily involves developing strategies and programs that foster sustainable agribusiness practices, empowering small and medium-sized enterprises (SMEs) across developing regions. Manson’s initiatives often focus on creating robust market linkages and enhancing value chain contributions made by SMEs, which are critical for their growth and sustainable development.