Inclusive Businesses (IBs) are considered to be an essential tool for reducing rural poverty and stimulating overall development. These businesses are described as sustainable and equitable commercial operations that link low-income communities and smallholder farmers with agribusinesses in order to facilitate the former s market integration. Being innovative partnerships between these actors, they provide a structure to share in the value creation and allocation within the IB. Participation in an IB allows the beneficiaries to gain from aspects such as market access, skills development, jobs, and monetary income. Although often promoted based on anecdotal evidence, IBs are little analysed and understood from a conceptual perspective, nor are they scrutinised when implemented in the field. This study aims to address these facets. As such, the focus is two-fold: to provide a conceptualisation of the institutional set-ups of IBs, and to posit a methodology to assess the inclusiveness of these IBs when implemented. Combining the organisational structure with the inclusiveness obtained allows for an understanding if and how these business partnerships can contribute to the intended rural transformation in developing countries. Findings are based on extensive fieldwork and assessments of 14 IBs in primary agriculture in South Africa. This study proposes a new, flexible typology for the institutional set-ups of IBs to accommodate the complex structures observed in the field. These hybrid arrangements are presented as unique combinations of five standard instruments that act as building blocks: collective organisation, equity, lease/management contracts, mentorships, and supply contracts. These combinations allow to overcome the shortcomings of each instrument. A holistic framework, based on elements of Resource Dependence Theory, Transaction Costs Economics and Agency Theory, explains why and how actors interlink these instruments into complex organisational structures. Results show that multiple-instrument IBs do achieve improved access of low-income communities and smallholder farmers to commercial value chains. But, IBs struggle to overcome the power asymmetry between the actors, allowing the commercial partner to control the structure and management of the IB in order to reduce its uncertainty pertaining to this enterprise. IBs thus bring the risk of increased corporate control over resources owned by smallholders and poor communities. The inclusion of the beneficiaries in the value creation and allocation processes of the IB is assessed based on four dimensions: ownership, voice, risk and rewards. The study firstly shows that a distinction is required between the level of inclusiveness that is envisaged in theory, and which depends on the instruments implemented, and the level achieved in the actual implementation of the IB which - as the results show - often lags behind the intended inclusion. Secondly, it finds that whereas IBs as business projects can achieve positive results, this does not necessarily reach the individual beneficiaries. The assessed IBs are dynamic in their set-up, however, and allow for adaptations to overcome these issues. The State, which plays an important role through establishing a stimulating policy framework and financial contributions, together with third party engagement, can counter the potential corporatisation under IBs emphasising that IBs alone cannot constitute the expected panacea for agricultural transformation and rural development.

ÿ Inclusive business is hailed as a win-win scenario for the development of poor communities; yet there is little insight into how these inclusive businesses work and, more importantly, for whom. This book aims for a thorough understanding of the range of inclusive businesses in agriculture by examining: the structures they implement, the actors involved, and whether they are effectively inclusive of smallholders. It presents a range of case studies and is therefore empirically based and practically oriented. By offering a critical assessment of inclusive businesses overall, it allows for a better perception of what works where, and under which conditions. It provides useful insights that will benefit smallholders, agri-businesses, support groups, policy makers and investors who are willing to promote more inclusive businesses, that foster a better integration of smallholders into commercial value-chains and a more equitable and sustainable agricultural sector.

Statistics South Africa has estimated the South African population at more than 55 million people. The World Wildlife Fund has estimated that, with a population growth of nearly 2% per year, the population could reach nearly 80 million by the year 2035. South Africa, with its growing population, is seeing a changing agro-food landscape in accordance with global changes. It is important to note that the South African agricultural sector takes on a form that is dualistic in nature, spread between large-scale commercial farmers and small-scale, emerging farmers. These small-scale farmers often face numerous constraints, which curb their market access. Without small-scale farmers entering the value chain, there is limited participation of smaller agro-processing organizations in the downstream value-chain. Following a description of these critical constraints faced by small-scale farmers in a country like South Africa, this dissertation focuses on a method to capture the true responses from respondents in two case studies. In the first part of the objective, the analysis focuses on value-related questions applied to different respondents in each case study. These value-related questions relate to the following: The main advantages _ The main disadvantages _ The major lessons learned _ The major challenges experienced After the value-related analysis, further analysis of the specific objectives captures the true impacts of the model and evaluates how the current constraints are eliminated. The impacts and constraints are: Impacts of participating in the agro-processing model: _ aÌ22́Ơ¿3Access to resources and knowledge _ Economic and social gains _ Environmental and health impactsaÌ22́Ơ℗+ Addressing the constraints faced by the small-scale farmers: _ aÌ22́Ơ¿3Weakness of support services _ Prevailing farming structure _ Access to finance and risk management _ Producer knowledgeaÌ22́Ơ℗+ After studying previous literature and the current analyses, it became increasingly clear that it is important for big business to engage in transactions with small-scale farmers. Critical impacts for small-scale farmers as specified above and examined in more detail in Chapter 4 through inclusive business models will be beneficial to small and rural communities. They will improve food security on small and commercial scales, and ultimately lead to the development of agricultural land that was previously not utilized or underdeveloped. In conclusion, it can be said the proposition can be supported that a small- and medium-scale agro-processing model could be accepted as an alternative inclusion mechanism that would effectively address the constraints faced by small-scale farmers when entering high-value food markets. However, further research is recommended in this area.

The second in a three-volume series, this edited volume discusses post-independence economic inclusion in selected African countries. While human development indices rise and poverty rates fall across the African continent, facilitated by recent technological and innovation development which reaches previously inaccessible regions, indicators continue to lag in several crucial areas. Economic and social inclusion, therefore, remains at the forefront of development discussions across the continent. Using a variety of case studies underpinned by multidisciplinary research approaches, the chapters in this book explore a wide range of economic and financial inclusion issues from all aspects; from benefits and challenges to the steps that need to be taken to improve the level of economic inclusion on the continent. Governments, development agencies, non-governmental organizations with a bias toward development, students, and university lecturers will all find this book interesting.

This book analyzes the emerging concepts and theories of inclusiveness in business by explaining corporate social responsibility, social learning, and value co-creation, as critical elements to the success of firms. The authors explore the causes and effects and challenges associated with the management of inclusive businesses. Divided in to six sections, this edited work includes twenty one chapters that examine the inclusive business philosophy, the social dynamics of managing inclusive business, the role of trade, and inclusive practices at work before concluding with a discussion of how to drive hybrid growth in these types of organizations. Focusing on developing economies, this book portrays the varied corporate experiences in inclusive business designs and customer value propositions across the industries. It surveys the problems, possible solutions, and policy frameworks for integrating business as a resource to alleviate poverty and social and economic inequality.

Forest landscapes are inhabited by approximately 1.5 billion people. The aggregate gross annual value of these smallholder producers approaches US$1.3 trillion. Adding value to that production, through financial investment, will be key to delivering the Sustainable Development Goals (SDGs). Therefore, access to finance is an important issue. The Forest and Farm Facility (FFF) commissioned this scoping paper to assess what might be done to improve access to finance. Organisation of forest and farm producers allows finance to be channelled toward valueadded investments. But the motivation to form forest and farm producer organisations (FFPOs) varies with context, from the desire to secure resource rights for Indigenous peoples in the forest core, to the desire to strengthen economic scale efficiencies in periurban forest product processing industries. The scale and type of finance needs vary and span enabling investments (grants or concessional loans)through to asset investments (market-rate capital that requires a return). Access to finance for FFPOs requires tailored approaches. For FFPOs, enabling investments in four key areas are needed to create the conditions and necessary track record to attract asset investment: (i) secure commercial rights; (ii) strong organisation for scale; (iii) appropriate technical extension; and (iv) fair market access and business incubation. Enabling investments of this sort make FFPO businesses bankable and affords them access to finance.

Nearly three decades after the dawn of democracy, South Africa has remained a country of 'two agricultures'. On the one hand we have a subsistence, primarily non-commercial, black farming segment. On the other hand, however, we have a predominantly commercial and white farming sector that is well-resourced and has access to domestic and international trade networks. These disparities can be traced back to South Africa's painful history where, for decades, black farmers were on the margins of government support and also experienced land dispossession and livestock plunder. A Country of Two Agricultures focuses less on history and more on the present and the future, explaining why these disparities have persisted in the democratic era, and what it will take to overcome them. It aims to contribute to a better understanding of the variety of agricultural forces, taking into account both questions of domestic political economy and external factors, as well as to bring to light new risks and opportunities. Wandile Sihlobo offers insights into the role of agriculture in the South African economy from an agricultural economy perspective, and provides political economy insights that are rooted in the experiences of farming communities on the ground and right through the value chain. Beyond insights on the realities this book offers the government, the private sector, and anyone interested in the betterment of the South African economy, tools to grapple with this duality, and proposes a framework for bolstering the black farming segment for growth and competitiveness – and ultimately food security. Wandile Sihlobo is the Chief Economist of the Agricultural Business Chamber of South Africa (Agbiz) and the author of Finding Common Ground: Land, Equity and Agriculture.

The 2008 global food price crisis, and the resurgence of food prices in 2010-2011, caused both widespread concern and expectations. On the one hand, countries whose food supply depends on procuring food from international markets saw food price spikes as threats to their national food security. On the other hand, investors saw in these price spikes an opportunity to make profitable investments in agriculture. Either as threat or opportunity, food price spikes raised interest in Africa, whose lands are fertile and have unrealised potential. Concerns of a possible land acquisitions in Africa, and in particular the impacts of Large-Scale Land-Based Investments in Agriculture (LSLBIA) on local communities, became prominent policy and academic themes. Unfortunately, quantifying the phenomenon has proved hard due to the difficulty of finding empirical evidence. As a result, debates are either theoretical or based on anecdotal evidence. This publication thus explores a different path, and explores the reasons why entities from China and South Africa were interested in investing in African agriculture. This publication examines the reasons why investors were interested in Africa, and the relationship that these bear to The Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (the ‘Voluntary Guidelines’ or ‘VGGT’). While primarily aimed at governments, the VGGT also contain important provisions that are applicable to the private sector. They focus on helping investors pursue their projects in ways that recognise and respect legitimate tenure rights and human rights. In addition, the VGGT also contain provisions and encourages good practices for responsible investment in land, forests and fisheries. The VGGT are a valuable tool for helping investors minimise risk while also safeguarding the rights of local communities. China and South Africa represent important sources of LSLBIA in Africa, although the bulk of such investment comes from western countries. Their investment may intensify in the future for a variety of reasons. First, China has the third largest land area in the world but its expansion through additional land use is limited. Second, the dual agricultural economy of South Africa is preventing commercial farming located in well-endowed areas from expanding into remote, resource-poor areas where small-scale subsistence-based production is prevalent. This publication assesses the extent to which selected investors from China and South Africa and the governments of those countries have adopted the best practices represented by the VGGT in relation to LSLBIA in

While sharing some characteristics with other middle-income countries, South Africa is a country with a unique economic history and distinctive economic features. It is a regional economic powerhouse that plays a significant role, not only in southern Africa and in the continent, but also as a member of BRICS. However, there has been a lack of structural transformation and weak economic growth, and South Africa faces the profound triple challenges of poverty, inequality, and unemployment. Any meaningful debate about economic policies to address these challenges needs to be informed by a deep understanding of historical developments, robust empirical evidence, and rigorous analysis of South Africa's complex economic landscape. This volume seeks to provide a wide-ranging set of original, detailed, and state-of-the-art analytical perspectives that contribute to scientific knowledge as well as to well-informed and productive discourse on the South African economy. While concentrating on the more recent economic issues facing South Africa, the handbook also provides historical and political context. It offers an in-depth examination of strategic issues in the country's key economic sectors, and brings together diverse analytical perspectives.