Why Market Systems Thinking is Transforming Development in East Africa

The Shift from Aid to Systems

For decades, development programmes in East Africa have focused on delivering direct services — food, water, health care — to vulnerable communities. While these interventions save lives, they often fail to create sustainable change. A new approach is gaining ground: market systems development.

What is a Market Systems Approach?

Rather than replacing what markets should provide, a market systems approach asks: why are markets failing, and how can we fix the underlying causes? This means working with private sector actors, governments, and communities to remove barriers and unlock opportunities that already exist within the system.

What This Looks Like on the Ground

In Northern Kenya, for example, livestock traders struggle not because cattle are scarce, but because market information is poor, veterinary services are unreliable, and aggregation models are underdeveloped. Addressing these systemic constraints creates change that outlasts any single project.

Key Lessons for Development Organisations

Organisations adopting this approach need strong analytical skills, patience, and the ability to facilitate without controlling. The results — when done well — are transformative and self-sustaining.