IFAD, IDH and AIF partner to unlock soybean sourcing, supporting Rwandan farmers to earn more
Through the FARM P3 initiative, International Fund for Agricultural Development (IFAD), IDH and Africa Improved Foods (AIF) are partnering to connect farmer organisations with predictable soybean demand, creating value for both farmers and the private sector.
Soybean production in Rwanda sits well below potential, with yields at only 0.6 MT/ha compared to optimal 3 MT/ha, even as agri-processors face strong demand. That gap is the opportunity.
To address it, FARM P3 is partnering with IDH on an Inclusive Business Analysis (IBA) to pave the way for AIF, a local producer of fortified cereal-based nutritious products, to source soybeans from smallholder cooperatives supported by IFAD-financed loans. Implementation is coordinated by the Single Project Implementation Unit (SPIU) under the Rwanda Agriculture and Animal Resources Development Board (RAB).
This collaboration builds on IDH’s earlier work with AIF on maize and aligns with IFAD’s new Private Sector Strategy (2025–2030), which emphasises stronger private sector engagement for the benefit of smallholder farmers.
What the IBA brings
IDH’s IBA is a private-sector decision tool translates the working and economics of smallholder-inclusive business models into unit economics, scenarios and actionable recommendations, and it is embedded in market realities and scale conditions so partners can invest with confidence.
In the AIF case, the IBA indicates that, with Good Agricultural Practices (GAP) and clear market links, soybean can raise smallholder net incomes by around 2.3 times over five years, and it already outperforms traditional beans on average.
Private sector investment follows clarity on return and risk. Our IBA helps close gaps by quantifying unit economics and scale conditions, giving partners a green light for deploying capital.
Public-Private-Producer Partnerships in practice
The pilot shows the value of Public-Private-Producer Partnerships (4Ps): FARM P3 investing in the critical gaps for farmers to be market-ready, the private sector contributing fair prices, transport, and training, and the public sector ensuring infrastructure and extension services.
Together, each partner plays their role in creating sustainable supply chains that deliver value both for farmers and private sector offtakers in Rwanda.
Who does what?
- IFAD invests in rural people to turn small-scale farming into a more productive, market-linked, and resilient livelihood. It brings its mandate for rural development and expertise in smallholder farmers, investment capacity, and strong government partnerships, ensuring scale and alignment with national priorities.
- FARM P3 provides catalytic funding to expand private sector engagement in development projects to create long-term, sustainable value for smallholder farmers.
- IDH contributes proven methodologies and technical expertise in inclusive business models, with past experience linking cooperatives to private companies.
Through FARM P3’s partnership with IDH, we are supporting farmers in accessing commercial markets by building strong sourcing linkages between smallholder farmer cooperatives and the private sector. By combining IFAD’s investment in farmer organisations with IDH’s expertise in inclusive business models, we are developing practical, scalable solutions that build sustainable supply chains and create value for both farmers and private sector off-takers in Rwanda.
Partners interested in scaling inclusive sourcing models can contact the IDH Business Analytics team here
About FARM P3
Launched by France under the EU Council Presidency, the 3rd pillar of the Food and Agriculture Resilience Mission, hosted by IFAD, aims to strengthen local food production, promote safe and nutritious products, foster regional market integration, while reducing food losses and waste. FARM P3 engages with the private sector and development partners to create sustained value for smallholder farmers.
In Rwanda, FARM P3 focuses on increasing farmers’ incomes by reducing post-harvest losses and boosting the marketable output of maize and soybean value chains. Complementing the IFAD-funded Kayonza Irrigation and Integrated Watershed Management Project – Phase II (KIIWP2), the initiative connects smallholder farmers, cooperatives, and private sector actors, and promote adoption of sustainable, market-driven solutions.
About AIF
Africa Improved Foods (AIF) is a Rwanda-based food company focused on fighting malnutrition through the local production of affordable, high-quality, and nutritious foods. Since 2016, AIF has used a public-private partnership model to strengthen food systems—sourcing raw materials locally, creating jobs, and supporting economic development across the value chain.