Bridging the Last Mile: Private Sector Solutions for Farmer Service Delivery

The Last Mile Challenge in African Agriculture

Despite significant investment in Africa’s agricultural transformation, a persistent challenge remains: how to deliver the right services to smallholder farmers—reliably, affordably, and at scale.

This so-called “last mile” problem is not just a question of physical distance. It reflects deep systemic issues: weak input supply chains, underdeveloped market linkages, limited access to extension services, and low financial inclusion among rural producers.

For organizations like the Alliance for a Green Revolution in Africa (AGRA)—which plays a catalytic role in improving food systems across the continent—solving this challenge is foundational. But traditional donor-driven models and overstretched public extension systems are struggling to keep pace. It’s time to ask: Can private sector innovation help bridge the last mile?

Private Sector Innovation at the Frontier

Across East and West Africa, a growing wave of farmer-centric business models is beginning to show results. These models bring bundled, market-based services directly to the doorstep of rural producers.

Examples include:

• Digital Input Providers like iProcure and EzyAgric, which connect farmers to certified inputs, advisory services, and inventory tracking through mobile platforms.

• Mechanization-as-a-Service startups such as Hello Tractor, which deploy equipment through Uber-like models using local agents and shared financing.

• Outgrower Models that embed services—training, credit, post-harvest handling—into secure off-take arrangements with agribusinesses.

• Farmer Service Centers (FSCs), including those supported by AGRA, which serve as one-stop shops for agricultural inputs, training, finance, and aggregation.

These actors are not replacing government or NGO-led delivery systems—they are complementing and, in some cases, reimagining them.

Why Public Institutions Still Matter

Private sector solutions thrive when ecosystems are supportive. Development partners, governments, and institutions like AGRA remain critical to enabling success, through:

• De-risking investment in underserved rural areas;

• Policy and regulatory reform, including improved input certification, access to digital finance, and enabling business environments;

• Market systems strengthening, particularly by investing in cooperatives, producer organizations, and last-mile aggregators;

• Blended finance mechanisms to crowd in private capital through smart subsidies and performance-linked support.

This public-private approach—where risks, responsibilities, and returns are shared—is essential to unlocking durable impact.

Lessons from the Field

Through our work across sub-Saharan Africa, we’ve seen what works—and what doesn’t—in last-mile delivery. Four key takeaways:

1. Bundle Services for Impact
   Farmers need more than a single input or training. Combining access to inputs, finance, information, and markets boosts adoption and retention.

2. Trust Is the Real Currency
   Local presence, reliable delivery, and consistent engagement build credibility. Models that prioritize relationships over transactions outperform in the long run.

3. Design for Viability, Not Dependency
   Business models must be commercially sound. While donor support can catalyze scale, the ultimate goal must be financial sustainability.

4. Don’t Ignore Politics and Policy
   Market failures are often rooted in governance gaps. Programs must be informed by political economy realities—from subsidy politics to regulatory enforcement.

KCL Global’s Role: Making the Last Mile Investable

At KCL Global, we specialize in making inclusive market models work—especially in contexts where aid is declining and investment must do more. We bring:

• Advisory services for donors, DFIs, and foundations seeking to strengthen private sector-led agricultural systems;

• Design support for scalable last-mile interventions, including value chain partnerships and blended finance structures;

• Capacity building for farmer-facing enterprises and local intermediaries;

• Political economy insights to inform reform strategies and reduce friction in agricultural policy environments.

Our goal is to help our partners move beyond pilot projects—to sustainable, scalable delivery systems that put African farmers at the center.

Conclusion: Getting the Last Mile Right

Transforming African agriculture requires more than new technologies or increased production. It requires rethinking how we deliver services, finance innovation, and engage farmers as economic actors—not beneficiaries.

The last mile is not the end of the chain—it’s the beginning of a more inclusive, resilient food system.

As the Alliance for a Green Revolution in Africa (AGRA) and its partners shape the future of agricultural development, the private sector should not be seen as an alternative to public delivery—it should be seen as an essential ally.