dc.title: Barriers to an enabling environment in start-up acceleration in fragile and conflict-affected settings in Jordan and Nigeria
dc.contributor.author: Ires, Idil
dcterms.abstract: The enabling environment is a critical driver of business acceleration, particularly in sectors essential for sustainable development, such as agriculture, food, and water security. In Africa and the Middle East, these sectors underpin economic stability and livelihoods, yet businesses face numerous challenges that impede their ability to scale and innovate. A supportive enabling environment—comprising policy frameworks, institutional structures, access to finance, infrastructure, and market systems—plays a decisive role in overcoming systemic barriers such as food insecurity, climate change, and resource scarcity. However, structural weaknesses, fragmented markets, limited access to capital, and governance challenges continue to hinder the scaling of sustainable enterprises in these regions.
This paper examines the enabling environment for business growth in fragile and conflict-affected contexts through the lens of three enterprises: AquaPoro (Jordan), iPlant (Jordan), and Koolboks (Nigeria). These SMEs, selected under the Stability-and-Peace Accelerator Program run by the World Food Programme in partnership with CGIAR’s Fragility, Conflict, Migration Initiative, are pioneering innovative solutions in water harvesting, vertical farming, and solar-powered refrigeration, respectively. Despite their potential to drive transformative change, they face significant regulatory, financial, and operational barriers that limit their ability to expand.
Key findings reveal that AquaPoro encounters bureaucratic inefficiencies, regulatory opacity, and reliance on informal networks (wasta) in Jordan’s water sector. Policy reforms promoting transparency, financial incentives for water technology, and improved regulatory clarity could facilitate its growth. iPlant highlights the need for updated agricultural policies that recognize agritech innovations. High import tariffs and energy costs challenge its expansion, necessitating tax benefits, streamlined customs procedures, and enhanced financing mechanisms. Meanwhile, Koolboks in Nigeria struggles with various challenges, including customs delays, limited financing options, and security concerns in fragile regions. Addressing these issues through regulatory simplifications, targeted financial incentives, and strategic partnerships could enhance its market penetration and impact.
To create a more conducive business environment, policymakers must prioritize regulatory transparency and reform, financial incentives and access to capital, market and infrastructure development, and public-private partnerships (PPPs). Reducing bureaucratic barriers, expanding funding opportunities for SMEs, strengthening distribution networks, and fostering collaboration between governments, international organizations, and the private sector are essential strategies for enabling sustainable enterprises to scale.
By addressing these systemic challenges, African and Middle Eastern economies can unlock the full potential of sustainable enterprises, fostering economic inclusion, climate resilience, and long-term food and water security. This paper underscores the urgent need for targeted interventions that bridge policy-practice gaps and catalyze innovation in fragile and conflict-affected settings.
cg.contributor.initiative: Fragility, Conflict, and Migration