"Making markets work is key to creating inclusive growth and opportunity" by Hugh Scott
Helping people to escape poverty by releasing their economic and entrepreneurial potential is now central to development thinking. But to enable Africa’s vibrant entrepreneurial and business base to grow and thrive, we have to find new ways to make markets work more effectively for them. In addition, we have to do more to push out market frontiers to make economic opportunity and growth as widespread and inclusive as possible.
A key priority is to address market systems in rural areas because, for the majority of Africans, it is advances in agriculture that hold the key to poverty reduction, growth and improved employment prospects across the wider economy. Crucially, we have to look at the sector in a systemic way, understanding, nurturing and maximising the market linkages that will ultimately improve the functioning of the system as a whole.
Africa also needs to think about addressing its development challenges in new ways and more needs to be done to encourage innovative solutions and enable “disruptive” innovation (innovation that creates a systemic change in the way a particular market operates for the benefit of the poor) to emerge. For this to happen, we need to invest in and incentivise the private sector to support innovations that enable small holders, for example, to better connect with local, regional and international markets, in addition to enabling greater access to finance and other important infrastructure support mechanisms.
In response to these challenges, the Africa Enterprise Challenge Fund (AECF), a multi-donor challenge fund, has been established to catalyse private sector entrepreneurs in Africa to innovate and find profitable ways to improve market access and functioning for the poor, particularly in rural areas.
The fund will support innovative projects that demonstrate the commercial viability of new business models and technologies in agribusiness and financial services that can benefit millions. By encouraging pro-poor, innovative, commercially sustainable projects, the AECF will ultimately boost employment, livelihood opportunities and incomes and reduce poverty.
We are seeking business ideas that have the greatest impact on the largest number of people living in rural areas and we are particularly interested in ideas that also have the potential to impact on the “investment climate” by influencing government policies.
The fund is structured and governed along private sector principles with strong and sustained business engagement to ensure a flexible, responsive, results-orientated approach that the private sector can understand. It is able to support cross-border, regional and pan-continental projects, as well as national ones.
I would ask that the development community spreads the word about the AECF, encourages participation and, in the process, help to make innovative and transformational ideas happen.
Hugh Scott is Chief Executive of the Africa Enterprise Challenge Fund
A key priority is to address market systems in rural areas because, for the majority of Africans, it is advances in agriculture that hold the key to poverty reduction, growth and improved employment prospects across the wider economy. Crucially, we have to look at the sector in a systemic way, understanding, nurturing and maximising the market linkages that will ultimately improve the functioning of the system as a whole.
Africa also needs to think about addressing its development challenges in new ways and more needs to be done to encourage innovative solutions and enable “disruptive” innovation (innovation that creates a systemic change in the way a particular market operates for the benefit of the poor) to emerge. For this to happen, we need to invest in and incentivise the private sector to support innovations that enable small holders, for example, to better connect with local, regional and international markets, in addition to enabling greater access to finance and other important infrastructure support mechanisms.
In response to these challenges, the Africa Enterprise Challenge Fund (AECF), a multi-donor challenge fund, has been established to catalyse private sector entrepreneurs in Africa to innovate and find profitable ways to improve market access and functioning for the poor, particularly in rural areas.
The fund will support innovative projects that demonstrate the commercial viability of new business models and technologies in agribusiness and financial services that can benefit millions. By encouraging pro-poor, innovative, commercially sustainable projects, the AECF will ultimately boost employment, livelihood opportunities and incomes and reduce poverty.
We are seeking business ideas that have the greatest impact on the largest number of people living in rural areas and we are particularly interested in ideas that also have the potential to impact on the “investment climate” by influencing government policies.
The fund is structured and governed along private sector principles with strong and sustained business engagement to ensure a flexible, responsive, results-orientated approach that the private sector can understand. It is able to support cross-border, regional and pan-continental projects, as well as national ones.
I would ask that the development community spreads the word about the AECF, encourages participation and, in the process, help to make innovative and transformational ideas happen.
Hugh Scott is Chief Executive of the Africa Enterprise Challenge Fund
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