Research Into Results (RIR), a wholly-owned subsidiary of the University of Edinburgh, will make the latest agricultural research and innovation available to budding small businesses in 10 countries in east and southern African.
They will then mentor the businesses to help them grow and find private investment.
During a visit to the University of Edinburgh today, Scottish Secretary Alistair Carmichael said: "Everyone associated with the Research Into Results initiative should be very proud of the excellent work this project builds on.
"This substantial support from DFID together with the skills and networks of the University of Edinburgh and H20 venture partners will go a long way to improve the efficiency of small-holder farmers in Africa, provide them with technology and most importantly transform the lives of many people living in some of the poorest countries in the world."
RIR director Dr Andy Frost said: "The SEED (Social Enterprises for Economic Development) programme will develop technology-driven social enterprises whose products and services increase the profitability of smallholder farmers.
"There is a substantial unmet need for ambitious social enterprises in Africa.
"Institutions, NGOs and local entrepreneurs lack the skills and experience to build large-scale investible businesses; on the other side, venture capital in the region lacks quality investment deal flow.
"SEED is an ambitious programme, it aims to be a game-changer, to create viable social enterprises for the benefit of smallholder farmers, and by so doing provide robust evidence on the effectiveness of social enterprises as a vehicle to get past research investment into use, at scale."
DFID will provide the SEED project with £10.8 million over six years.
The programme is designed to enhance the flow of investment-ready proposals reaching investment funds and banks.
By working with a range of partners SEED will develop new enterprises to help take technology to market, overcoming the investment gap that can stop promising research turning into valuable technology.
RIR has already worked on research that has delivered pest-free crops, improved crop storage systems and a mobile phone app which tells farmers the best time to plant their crops.
It is said to have the potential to make more than half a million farmers become more efficient, helping them feed their families and work their way out of poverty.
