Empowering farmers, SMEs key to sustainable economic growth

In the pursuit of economic development, certain contributors often go unnoticed despite their immense impact.

Farmers and small and medium-sized enterprises (SMEs) form the backbone of economies, particularly in East Africa, where agriculture remains a dominant sector and SMEs account for over 90 percent of businesses.

They drive employment, innovation, and local prosperity. As we look toward a future defined by sustainability and resilience, it is evident that empowering these vital groups is not just a necessity—it is an economic imperative.

Agriculture is more than just a source of raw materials; it is the lifeline of countless families, an engine of economic stability, and a driver of food security.

Yet, farmers face persistent challenges—ranging from limited access to markets and financing to the impacts of climate change. Addressing these barriers creates a ripple effect of benefits for entire communities.

For instance at HACO Industries we have strived to build sustainable partnerships with over 35,000 farmers across Kenya, Uganda, and Ghana.

We source natural, biodegradable ingredients such as shea butter, coconut oil, and baobab oil directly from these farmers, ensuring that they receive fair compensation while fostering sustainable agricultural practices.

Beyond sourcing, we seek to champion capacity-building initiatives by supporting technical training and financial literacy programs that equip farmers with the skills needed to thrive in a competitive market.

Through these efforts, we are not just securing high-quality ingredients for our products, but also strengthening local economies, promoting ethical trade, and encouraging environmental stewardship—ensuring that the benefits extend well beyond the agricultural sector.

SMEs are vital engines of economic growth, fostering job creation, localised innovation, and community development. However, access to capital, fluctuating market conditions, and operational inefficiencies often hinder their potential.

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Strengthening support systems for SMEs ensures they can scale, compete, and contribute to long-term economic stability.

Programs that integrate small businesses into larger value chains, offer business mentorship, and enhance financial inclusion have proven successful in unlocking growth.

Collaborations with industry players also provide SMEs with the necessary tools to navigate evolving market demands. By creating enabling environments where entrepreneurs can thrive, economies become more resilient and adaptive to global trends.

The collective effort of public and private sectors is essential in building sustainable economic ecosystems. Policies that facilitate access to credit, improve infrastructure, and encourage trade partnerships—such as those under the African Continental Free Trade Area (AfCFTA)—can expand market opportunities for SMEs and agricultural producers.

Businesses, policymakers, and development organisations must work together to create frameworks that drive inclusive growth. Investing in circular economies, sustainable manufacturing, and ethical sourcing ensures that economic development is both responsible and impactful.

When diverse sectors collaborate, the potential for economic transformation is amplified, benefiting communities at every level.

As we navigate an increasingly interconnected world, it is evident that the well-being of farmers and SMEs is a shared responsibility.

Supporting these sectors requires more than financial investment; it demands a collective vision of empowerment, innovation, and sustainability.

By fostering strategic partnerships, advancing ethical trade, and championing sustainable business practices, industries can contribute to a future where economic progress aligns with social and environmental well-being.

Strengthening these foundations not only drives prosperity today but also builds a more sustainable and equitable future for generations to come.

The time for action is now. By standing with farmers and SMEs, we can drive sustainable transformation that benefits not just today’s economy, but generations to come.

The author is the Managing Director, HACO Industries Limited