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.

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.