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Agrifood systems in Africa have not fully embraced ICT in the production, marketing, processing and value addition to produce. Most of these systems are characterized by traditional processing techniques, informal market transactions, production and marketing inefficiencies, high transaction costs, limited unreliable supply, low volumes, huge post harvest loses, mistrust, rivalry and lack of partnerships. On the contrary, the corporate sector is characterized by companies forming strategic partnerships/alliances, giving them a competitive advantage. Market systems in Africa are still dominated by traditional market players who compete against each other. Studies conducted by Michigan State University and Tegemeo Institute of Egerton University indicate that 90% of the fresh produce is sold in traditional, informal markets. The ‘Market Hubs Model’ developed by FCI aims at enhancing the adoption of Best Business Practices along traditional markets through establishment, strengthening and institutionalization of ‘Market-Hubs’ based on strategic business partnerships between Market Intermediaries which deal in common commodities in similar market segments. Market Hub Model, mobilizes informal traders into traders associations and enhances their capacity in business management, partnership formation and business expansion. The model also upgrades the traders’ skills, leading to sustainable agro-trading, better business management approaches in terms of storage, warehousing, post harvest management, leadership skills, financial management, procurement and any other aspect identified through traders’ needs assessment which is conducted during the rapid market appraisal phase of FCI’s projects.

Through the model, the market hubs:
• Enhance strategic business alliance and synergy. • Increase business efficiency through structured domestic marketing systems • Enhance value chain partnerships with Commercial Villages and other producing communities. • Undertake policy advocacy for trade and market policies geared toward domestic markets. • Carries out strategic business planning and champions for the adoption of best business practices. • Reduce transaction risks and costs through collective action. • Address challenges emerging from lack of support from formal institutions such as quality standards, market information and mechanisms for contract enforcement through collective action. • Stabilize market forces. • Enhance access to business support services e.g. transportation, financial services, training etc
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