Small and Medium-sized Enterprises (SMEs) are at the heart of our economies and societies and play a crucial role in achieving global climate goals. They represent over 90% of businesses and 50% of greenhouse gas emissions globally.

Our research shows a growing paradox: while more SMEs recognize the importance of climate action, the barriers to taking effective action are also increasing. This widening gap demands urgent attention.

The challenge: the need to take climate action is intensifying, with more SMEs reporting that they have been directly impacted by climate change. 70% report experiencing direct effects on their business in the past year. These impacts include supply chain disruptions (39%), damage to assets or property (25%), and loss of productivity (24%).

East Africa is emerging as a vibrant hub for climate innovation, with a growing number of innovators and stakeholders developing solutions to address the region’s pressing climate challenges. The region's unique combination of urgent climate needs, a burgeoning tech ecosystem, and an increasing focus on sustainability has attracted significant attention from investors looking to support the advancement of climate action.

Within the East Africa climate ecosystem, stakeholder networks and relationships are crucial for ensuring the successful implementation of climate action policy and innovative solutions. Effective collaboration across the diverse stakeholders shaping the East Africa climate ecosystem, is key to fostering a more integrated and impactful approach for tackling climate challenges. Several factors influence how these stakeholders interact and collaborate within the climate ecosystem. These include the availability of funding, policy frameworks, technological infrastructure, and the strength of local entrepreneurial support systems.

This study examines the dynamics of climate innovation in East Africa, with a focus on the interactions, relationships and networks among key climate stakeholders. Qualitative and quantitative data collection was used to identify the enablers, barriers, and support needs critical to fostering a mature and integrated climate innovation ecosystem in the region. The insights provided in this report are aimed at informing stakeholders on the varying factors shaping interactions among key players in the ecosystem. Greater awareness of these dynamics can help reduce fragmentation in adaptation and mitigation efforts, while also enhancing the scalability of climate solutions to drive increased impact and inclusivity in East Africa’s climate ecosystem.

Donor funding plays a crucial role in advancing development goals across East Africa, not least in Ethiopia, Rwanda, and Kenya. These nations have made significant strides toward inclusive economic growth and improved infrastructure to enhance social impact, in part, due to the support of international donors, development agencies and philanthropic funds. However, as multiple organisations fund similar initiatives across these regions, questions arise about coherence, alignment, and potential duplication of efforts.

In the face of data paucity and indicator opaqueness, we aim to address a hypothesis: a lack of donor coherence is causing suboptimal allocation of resources. By ‘donor coherence’ we mean the degree of alignment between the objectives, processes, and priorities of various funding bodies, aiming to avoid redundancy and ensure that resources are used efficiently. Financial contributions should aim to nurture dynamic entrepreneurial environments while ensuring more effective use of public funds.

This report explores how donor coherence in Ethiopia, Rwanda, and Kenya impacts resource distribution across sectors, identifying potential overlaps and assessing the implications of these strategies. By assessing the activities funded and the thematic areas supported, we can gain insights into how donor coherence affects the overall impact of development assistance in East Africa.

The Gujarat State Women’s SEWA Cooperative Federation in India is a notable initiative that has inspired similar efforts around the world. SEWA, or the Self-Employed Women's Association, has adopted a dual strategy: organizing poor women workers in the informal economy in a union and promoting women owned cooperatives to empower them. These cooperatives offer improved employment and income generation opportunities, along with a range of services such as financial, insurance and social security services, as well as business and leadership training. Recently, the ILO has received requests from its constituents to better understand SEWA’s approach for potential adaptation and replication in Asia and beyond.

This report aims to explore the challenges and opportunities for cooperatives and other SSE entities in empowering women workers in the informal economy, with a specific focus on the experience of the SEWA Cooperative Federation. It draws on in-depth interviews with cooperative leaders and members, as well as relevant reports and studies. The report examines why and how SEWA has used the cooperative model and discusses the challenges the Federation faces in incubating and supporting women’s cooperatives and collective enterprises. It also features SEWA cooperatives from various sectors, including finance, insurance, childcare, dairy, organic agriculture, healthcare, waste management and cleaning services. Finally, the report identifies lessons learned and good practices that can guide efforts to adapt and replicate similar initiatives in other parts of the world.

Every entrepreneur operates within an ecosystem that determines the access to talent, finance, and markets that they need to grow their business. ANDE’s Entrepreneurial Ecosystem Maps serve as a tool for stakeholders to learn about the organizations providing support to small and growing businesses (SGBs) in a specific city, region, or country.

This mapping identified 140 organizations and nearly 170 distinct resources supporting entrepreneurs across Ethiopia. The online mapping provides a filterable directory of these organizations, categorized by sector, location, and support type. The mapping is complemented by a report analyzing the data and synthesizing key trends in the ecosystem.

The concept of gender-lens acceleration has taken hold in recent years, with various toolkits outlining how to be more gender inclusive at every step of the acceleration process, from selection to programming and alumni support. However, it is not well understood how effective these strategies have been in producing more equitable outcomes for women. This report aims to fill that information gap by synthesizing the research on accelerating women-led ventures and exploring case studies of three accelerator programs in Asia that have outsized impacts for such ventures.

The study aims to explore women entrepreneurs' access to credit from SACCOs in Nepal. It focuses on women entrepreneurs engaged in diverse sectors, including trade and services, manufacturing, and agriculture. The study seeks to highlight the gender-based challenges women face when applying for business loans from financial institutions. Specifically, the study addresses the following questions in the context of women-led micro-enterprises in Nepal: 1) Do small business women have access to adequate finance from SACCOs? 2) Do women face barriers attributed to gender norms when accessing credit from financial institutions? 3) What are the supply side constraints (of SACCOs) in providing credit to small business women? Through exploring these questions, the study aims to contribute valuable insights to the ongoing discourse on gender-lens investment practices and their potential to create a more inclusive and sustainable entrepreneurial environment for small and growing businesses (SGBs) owned by women in Nepal.

The paper offers guidance for those considering funding or designing interventions targeting women climate entrepreneurs and WSME-responsive climate initiatives by addressing the following questions: Why is it important to focus on women climate entrepreneurs? Where are areas of opportunity for women climate entrepreneurs and implementing partner support—including sectors that are emerging as critical to a low-carbon economy? What actions, initiatives, and efforts are happening now? Who are the key players? Where are the challenges? Ramping up an integrated focus on WSMEs and climate is critical, given that gender equality is considered a primary objective in less than 1 percent of climateoriented official development assistance (ODA) provided by governments for economic development in emerging markets and fragile economies.

First, the paper highlights the need for a gender-differentiated approach to climate action in general. It then discusses the importance of prioritizing the needs of women climate entrepreneurs, with insights on green and blue sectors. The next section details the state of play: organizations that are supporting gender-responsive climate action and those focused on the nexus of women’s entrepreneurship and climate along with a report on the status of financing for such initiatives. It concludes with recommended courses of action for development organizations, impact investors and other partners to take as they consider new projects and initiatives.

A key challenge in empowering women in extreme poverty through entrepreneurship is securing access to capital for business growth after training. Small and microenterprises often face exclusion from formal financial systems due to a lack of traditional credit data, guarantors, and financial statements, resulting in high-interest informal loans ranging from 80% to 300%. This report examines the potential of a credit scoring system using alternative data such as peer group (Chama) lending performance and business income to assess creditworthiness. The goal is to demonstrate that alternative data can unlock capital from local financial institutions for women entrepreneurs at scale.