Investment opportunities for Dutch horticulture companies willing to invest in climate-smart agriculture in Kenya
The Dutch horticultural supply industry is well positioned to assist horticultural businesses in Kenya, according to a new study executed by Advance Consulting. The study mapped challenges and opportunities in the Kenyan horticulture sector in the context of climate change.
The report shows that there is a growing demand for climate smart agriculture (CSA) solutions in Kenya. SME farmers report many climate-related challenges such as erratic rainfall patterns, an increased prevalence of pests and diseases, temperature variability, lack of storage infrastructure and lack of access to CSA solutions. These challenges offer opportunities for Dutch and international companies offering CSA solutions to become active in the Kenyan horticulture sector. The study mapped the most promising market segments, which include:
- Products and technologies aimed at farm productivity improvements
- Forecasting, agricultural advice and market data services
- Products and technologies aimed at improved meteorological data
- Cultivation advisory services
- Post-harvest handling and management (including storage)
- Financial services for agri-food businesses
The Embassy of the Kingdom of the Netherlands (EKN) in Nairobi and the Netherlands Enterprise Agency (RVO) work together with public and private partners to strengthen the Kenyan horticulture sector. They commissioned this study with the overall goal to facilitate the uptake of Dutch and other technologies, products and services which lead to more productive and (climate) resilient horticulture SMEs in Kenya.
A range of Dutch, Kenyan and international companies operate successfully in the identified market segments identified. From these inspiring cases, important lessons can be drawn for Dutch new market entrants willing to supply Kenyan SME horticulture farmers with CSA solutions. These examples are described in this report.
To help Dutch companies develop their businesses in the Kenyan SME horticulture sector, several support programs and financial instruments exist. Aspiring market-entrants can co-finance their initial market research, start-up activities or further expansion into the Kenyan market with a range of options from the Dutch government and other international funds and donors.