Contents. 1. Foreword About SNV Introduction SNV s Market-Based Solutions Approach Agriculture 11 6.

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1 Annual Report 2013

2 2 Annual Report 2013

3 Contents 1. Foreword 4 2. About SNV 6 3. Introduction 8 4. SNV s Market-Based Solutions Approach Agriculture Why we work in Agriculture Market-Based Solutions in Agriculture Projects Livestock Agri-Profocus (APF) Agro-Dealers Inputs Extension Systems Support (AIESS) TIPEC-ZAS Project Case: Integrating Farmers into Mainstream Markets WASH Why we work in WASH Innovative WASH Solutions Projects Iron Removal Innovation Menstrual Hygiene Management Experiences of a Local Service Provider Renewable Energy Why we work in Renewable Energy Our Approach Projects Biofuels for Lighting Improved Cook Stoves Domestic Biogas Developing the Value Chain for Biofuels for Lighting and Lamps in Zambia Overall Development Numbers Financial Report SNV Staff Partnerships and Local Service Providers 30

4 1 Foreword

5 In a world characterised by persistent poverty, but also by fast developing opportunities and increasing local capacities, a supply driven, one-size-fits-all development strategy is increasingly misguided. This is particularly true in the Zambian context. Since taking over as Country Director in September 2013, the idiosyncrasies of the operating environment here in Zambia have become very clear. The vast scale of the country and its very low population density bring a whole new perspective to last mile service delivery. A unique set of interventions is needed to develop functional market-based solutions that are both sustainable and scalable. In 2013, SNV Zambia focussed on achieving impact through demand-driven approaches, carefully crafted to fit the local context and inspired and fed by a robust local knowledge base. Our market-based solutions have centred on achieving increased access to services and markets for the rural poor. Developing service providers and increasing rural access to markets in a sustainable manner, despite the difficulties imposed by low population density, is no easy feat, especially as producers and consumers are often so far away from each other. Through projects such as the Agro-Dealer Inputs and Extension Support Systems (AIESS), SNV has developed models of agro-dealership tailored to the local context, combining increases in the capacity and number of rurallybased agro-dealers with a network of farmers serving as sub-agro dealers, to situate input suppliers in isolated but productive arable areas. Interventions in the rice value chain have seen significant numbers of out-grower schemes (contractual partnerships between growers and processors), negotiated by SNV. These schemes bridge the gap between processors who need to aggregate quality rice, on the one hand, and producers who cannot get their product to market without losing a healthy percentage to middle men, on the other. By working with processors and producers together, commercially-managed bulking centres have been established in the production area for increased market access and also serve as central points through which processors provide technical development and financing facilities. In this way, farmers are able to sustain access to quality inputs, produce demand-driven varieties and reduce post-harvest losses through the bulking centres. In our Water, Sanitation and Hygiene (WASH) programming, which sought to provide rural access to water in 2013, SNV provided value for money services at EUR 6.60 per head, by delivering on-the-job training to community-based area pump menders. In doing so, SNV not only developed a cadre of locally-available technicians to provide operations and maintenance support, thereby ensuring continued access to water supply services in rural areas, but also renovated broken systems at the same time. SNV s research into issues that prevent girls from attending school during menses resulted in market-based interventions to train women to produce reusable sanitary pads for sale locally and at low cost. In partnership with a private sector company, OLAM, in Kasama, SNV trained women s groups to manufacture reusable pads, thereby providing an easily accessible, market-based supply to meet the local demand and get girls back to school. One focus area of our renewable energy programme in 2013 was alternative and renewable energies for productive use. With only 20% of the population able to access electricity and the impossibly high cost of running primary networks across the country to increase this access for low density rural populations, SNV saw the need for off-grid solutions. By targeting off-grid solutions for producers first, rather than domestic consumers, SNV enlarges the market base saw SNV laying the ground for its new Biogas for Milk Chilling programme: training masons from key milk-production areas to construct digesters, establishing public private partnerships to develop a milk chiller that can be run with biogas, and working with financing groups to ensure that dairy farmers can access the new technologies on a market-basis rather than through unsustainable subsidies. Working together with local service providers such as the Dairy Association of Zambia and Lusaka Vocational Trades Centre, scalability and replication are ensured, even while interventions focus on increasing access in dispersed rural areas. These are but a few of the examples from SNV s 2013 portfolio. You will find in-depth descriptions of these activities and more in the following pages. Finding market-based solutions that respond to the unique operational context of Zambia is SNV Zambia s strength. Despite the distances involved and the wide dispersal of our clients, our market-based, locally-targeted approach allowed SNV to provide support to 271,062 individuals at an average delivery cost of EUR per person in Even with the high logistical costs of providing capacity development services in the Zambian context, SNV delivered its services with a programme:admin ratio of 67:33, once again proving itself to be a reliable partner, capable of delivering good value for money services that are tailored to the local context. We would like to thank our partners, donors and supporters for their trust in SNV over the last year and look forward to continued collaboration in the future, as we continue to provide market-based solutions for poverty alleviation whatever the challenges. Dr. Sue Ellis Country Director SNV Zambia 5 Annual Report 2013

6 2 About SNV

7 The Netherlands Development Organisation (SNV) is an international not-for-profit development organisation. We believe that no-one should have to live in poverty and that all people should have the opportunity to pursue their own sustainable development. Vision Founded in the Netherlands nearly 50 years ago, we have built a long-term, local presence in 38 of the poorest countries in Asia, Africa and Latin America. Our global team of local and international advisors work with local partners to equip communities, businesses and organisations with the tools, knowledge and connections they need to increase their incomes and gain access to basic services empowering them to break the cycle of poverty and guide their own development. By sharing our specialist expertise, we contribute to solving some of the leading problems facing the world today, helping to find local market-based solutions to global challenges and sowing the seeds of lasting change. SNV s activities aim to advance development and make big differences with limited resources. SNV started operations in Zambia in 1965, shortly after the country s independence, and has been a consistent development partner since then. In line with Zambia s Vision 2030 and its Sixth National Development Plan ( ), SNV provides services in Agriculture, Water Sanitation and Hygiene, and Renewable Energy. The recipients of these services include governmental institutions, non-governmental organisations and private sector organisations. SNV is dedicated to a society in which all people, irrespective of race, class or gender, enjoy the freedom to pursue their own sustainable development. Mission I m p r o v e t h e q u a l i t y o f l i f e o f o v e r 15 million people living in poverty in the period Annual Report 2013

8 3 Introduction

9 In 2013, the theme of Zambia s national budget was Delivering Inclusive Development and Social Justice, which aimed to provide and increase access to poverty-reduction services across Zambia. However, the government faces numerous obstacles to reaching all corners of the country to ensure that citizens actively participate in the national economy. The challenge of providing vital development services to such a widely spread population is preventing a significant portion of the population from growing to their full potential and contributing to the development of Zambia. These challenges are can be clearly demonstrated in the three sectors in which SNV works: Agriculture; Renewable Energy; and Water, Hygiene and Sanitation. Investments in reducing these gaps will not only improve the livelihoods of the majority of Zambians, they will also expand the economy, increase employment opportunities and protect the country s national resources. Market-based solutions offer a sustainable way of addressing challenges in these key sectors. Gaps in the Agricultural Sector 80% of the Zambian population depends on agriculture as a source of livelihood. Many off-grid, small-scale farmers do not have access to market services that would enable them to sell their produce, increase their incomes and contribute to the economy. However, agriculture only accounts for about 20% of the economy. Gaps in the Renewable Energy Sector Only 21% of Zambians have access to electricity. The rest of the population does not have access to the national power network and is reliant on non-sustainable energy sources such as firewood, charcoal, kerosene and candles to meet their needs. Gaps in the WASH Sector More than 63% of the Zambian rural population do not have access to safe water. 87% lack access to basic sanitation, increasing health risks across the country. 9 Annual Report 2013

10 4 SNV s Market-Based Solutions Approach We believe that inclusion of the poor in markets can enable positive and sustainable change for a large number of people. SNV s market-based solutions are multifaceted and use a multi-actor approach. Within this approach, SNV provides the expertise to develop sustainable market systems, to improve market integration and to develop value chains. The approach is the backbone of SNV Zambia s sector programmes, which are tailored to the local context to reach the poorest in the population, and is illustrated below: Value Chain Development Developing profitable and sustainable practices in the value chain, resulting in increased incomes and employment for the poor (especially women); developing appropriate sector financing solutions and improving value chain governance (with emphasis on gender, inclusion and accountability). Inclusive Business (IB) Including low-income communities within company value chains to create shared value. Impact Investment Advisory Services (IIAS) Advising and connecting social investors to opportunities in emerging markets, with a focus on financing initiatives in the last mile i.e.) those that directly reach stakeholders in the most remote places. Local Capacity Development Facilities Creating market spaces that enable local demand and supply actors to connect and do business. 10 Annual Report 2013

11 5 Agriculture 5.1 Why we work in Agriculture Improving global food security is a priority for Zambia, where over 80% of the population depends on agriculture for their livelihood, although agriculture only accounts for about 20% of the economy. This sector is vulnerable to sudden changes in price and climate, necessitating increased government and private sector investments in sustainable agriculture and rural development. Multiple stakeholders are currently focussed on increasing access to services and markets for small-holder farmers; a group that is particularly at risk, but whose combined productivity can significantly contribute to sustainable development of the country. How do we do this? Facilitate formal business contracting between farmer associations and commercial entities Support producers and associations to meet the business demands of commercial entities and processors Support policy dialogue through local organisations to improve agricultural policies Support the development of market service centres as market entry points for small-scale farmers. Promote environmentally and socially sustainable production methods for rice, bee products and livestock Strengthen the delivery of agriculture inputs (seeds and fertiliser) and farmer extension services 11 Annual Report 2013

12 5.2 Market-Based Solutions in Agriculture SNV fosters economic development and poverty reduction in the agricultural sector by developing value chains in an inclusive and systemic way. Our interventions incorporate private sector experience and technical expertise to enhance the efficient use of resources, to impart vital skills and technologies, and to create sustainable supply and market linkages. This approach ensures sustainability of the intervention beyond the project period. Our work focuses on staple crops, cash crops and livestock and includes commodities such as rice, bee products, beef and dairy. Our goal is to improve the positioning of smallscale farmers and processors, including women and youth. We support these small-scale farmers and processors to increase their resilience to market and climate vagaries, to increase their production and productivity, to gain access to local and international markets and inputs, and to engage in dialogue with government on agricultural policies that will benefit the sector as a whole. Intervention Areas in Zambia 1. Mbala 2. Mungwi 3. Kasama 4. Isoka 5. Chinsali 6. Mpika 7. Petauke 8. Mkushi 9. Kafue 10. Mazabuka 11. Monze 12. Choma 13. Kalomo 14. Namwala 15. Itezhi Tezhi 16. Senanga 17. Mongu 18. Kaoma 19. Mufumbwe 20. Kabompo 21. Zambezi 22. Mwinilunga 23. Solwezi 24. Chingola 25. Masaiti 26. Mpongwe 27. Kapiri Mposhi 5.3 Projects Rice Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 290,423, 2013 The SNV Zambia Rice Programme provides enterprise development support to small-scale rice producers and processors, with the objective of helping them grow into middle- and large-scale commercial entities, thereby increasing food security, incomes and employment in the rice sector. In 2013, SNV focussed on greater integration of smallholder rice producers and small-scale processors into the rice value chain and on shaping a business environment that addresses the systemic constraints underlying poor performance and inequity. Through our work with producers, it is clear that climate change is a major challenge to providing consistent and adequate volumes of produce to the processors. 12 Annual Report 2013

13 In response, the rice programme will be integrated into the Climate Smart Agriculture Programme in This programme will design interventions that contribute to climate-smart crop production and that strengthen supply chain linkages to achieve higher yields and increase the resilience of agricultural systems to climate change. In 2013, the programme reached 8,801 farmers, of which, Results 985 farmers were linked to private sector providers of extension services, technologies, research and inputs; and helped 788 farmers access input credit Livestock Donor: International Fund for Agricultural Development (IFAD), EUR 162,254, Through the Small Agribusiness Promotion Programme (SAPP), SNV implements interventions to capture the full economic potential of Zambia s beef industry. The programme, funded by the International Fund for Agriculture Development (IFAD), increases incomegenerating opportunities for small-scale beef producers by improving access to agri-business services and marketing options, resulting in increased productivity, incomes and employment. SAPP project activities include constructing Livestock Service Centres (LSCs), which act as service hubs providing veterinary and market services to smallscale livestock farmers; training beef cattle graders; and helping to improve inclusion and governance in the beef value chain. Results Started construction of 5 Livestock Service Centres (LSC) in Mazabuka, Monze and Choma districts. 101 beef graders trained and a grading manual developed; and Business plan developed for the Beef Association of Zambia and secretariat established Agri-ProFocus (APF) Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 215,589, SNV, hosts the Agri-ProFocus network in Zambia a network of partners promoting farmer entrepreneurship in developing countries. Through APF, SNV redesigned and established a revitalised Agri-Hub network, which serves as a neutral marketplace for professionals from agro and food companies, producer organisations, NGOs, government and research institutions. This network provides business and partnership brokering services to various actors within selected value chains, starting with rice and dairy. By providing a platform for sharing expertise and resources, the network also provides a support system for improving agricultural service provision. 13 Annual Report 2013

14 3 new partnerships established with the Dairy Association of Zambia, PUM Netherlands Senior Experts and the Dutch Consulate in Zambia. Results 101 beef graders trained and a grading manual developed; and Business plan developed for the Beef Association of Zambia and secretariat established. Visit APF online at Agro-Dealers Inputs Extension Systems Support (AIESS) Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 460,000, The AIESS project promotes business solutions that increase access and availability of quality inputs and extension services to small-scale farmers; supports policy dialogue for promoting good governance and inclusion in targeted agricultural value chains; and enhances efficiency among players in supply chains, especially agro dealers. This project focusses on small-holder crops such as common beans, groundnuts, millet, sorghum and rice. SNV implements the project in Northern and Muchinga provinces. Over 80 agro-dealers were trained; 30 have established stocks and are now selling inputs (maize seed, fertilizers, vegetable seed and agro-chemicals) closer to smallscale farmers. Results 3 MOUs signed with key input distributors: MRI Seed, Seedco and Zambia Fertilisers. Signed contract with Nutri Aid Trust, agro dealer trainers, and Misamfu Agriculture Research Institute responsible for common beans and rice seed multiplication. 2 agro hubs have been formed in Mpika and Mungwi TIPEC-ZAS Donor: Enhanced Integrated Framework (EIF) and DGIS, USD 2,828,190, Within the bee products value chain, SNV focusses on improving production and productivity, market access, enterprise development and on fostering an enabling environment for the advancement of the sub-sector. Strategies seek to enhance sustainable entrepreneurship in the apiculture (honey) sector, which can increase incomes, employment opportunities and export revenues by an estimated EUR 25 million. In 2013, the project targeted extension training, equipment supply, market access and institutional capacity for research and development. 14 Annual Report 2013

15 Results 2,000 farmers were trained in improved beekeeping techniques. 50 community beekeeping trainers were trained at the Zambia Forestry College; Institutional Analysis for the Apiculture Centre of Excellence was conducted to enhance research and development in the sector; 1,060 modern beehives were procured and distributed to modernise and improve quality honey production; Commenced construction of 4 production hubs and; 2,380 beekeepers from 7 cooperatives now receive extension services. 5.4 Project Case: Integrating Farmers into Mainstream Markets SNV provides capacity development services to rice producer associations and their members to increase production volumes, thereby increasing food security and household incomes. From our experience in the rice sector, we have learned that there is still a disconnect between supply and demand. Farmers are capable of producing rice but because they are disorganized, they often are unable to supply the volumes and quality required by the market. At the same time, agro enterprises cannot amass the volumes and quality they require because the fragmented market makes it costly to collect the produce. To address this problem, SNV works with private sector processing companies such as New Dawn to strengthen the rice value chain. With New Dawn, we initially focussed on facilitating the rebuilding of the supply system, to give processors access to paddy at reduced costs. This involved strengthening producer groups so that they could undertake communal bulking in areas accessible to both traders and processors. This immediately resulted in empowered producers that were able to negotiate better prices for the paddy supplied or bulked. This approach provided an opportunity to develop a marketing system that captures as much of these quantities as possible. As a result of this intervention, New Dawn Milling managed to buy 580 MT of rice in Chilekwa Mwamba, proprietor of New Dawn Milling, thanked SNV for making it possible to work with the rice farmers and commended the experience: In a nut shell, the experience has been great, I think we have achieved what we had set out to do and the response has been tremendous, however we have had some hiccups with the collection and payments to our contracted farmers, he said. He explained that there had been a few challenges such as transport, road networks and spot payments. We however understand that this is a learning process and we are bound to hit a few hiccups. It is because of this that New Dawn intends to sit down with SNV once more to see how best we can address these issues, he concluded. 15 Annual Report 2013

16 6 WASH 6.1 Why we work in WASH In Zambia, poor access to safe water supply and sanitation in rural areas is both a result and a cause of poverty. Lack of sanitation facilities and access to safe water contribute to poverty by limiting women s and girls opportunities to participate in productive activities as daily chores of water collection and caring for those suffering from water and sanitation-related diseases take up most of their time. The absence of adequate sanitation facilities and water access points in rural and peri-urban areas are the result of a lack of infrastructure and public funds for developing the water, sanitation and hygiene sector in Zambia. The dispersed population push the costs of providing water infrastructure and networks on a per capita basis very high. As Zambia s economy grows and the population increases, the demand to improve water quality and access to water and sanitation facilities is increasing, creating further demands for the provision of new infrastructure. In parallel to increasing water access point and sanitation facilities across the country, the government also faces the additional challenge of maintaining the quality of the current water and sanitation facilities. It is in this context that SNV focuses on developing sustainable innovations in the water, sanitation and hygiene sector to foster economic development and poverty reduction. 6.2 Innovative WASH Solutions SNV s emphasis is on improving rural and peri-urban water supply, and on promoting water sanitation and hygiene services in schools. We address issues of functionality, accessibility, good hygiene behaviour, good governance and accountability. We support civil society to advocate for quality service delivery; support service providers, such as local government district councils, to deliver quality services; and support quality dialogue and knowledge sharing by improving public and private sector participation. 16 Annual Report 2013

17 How do we do this? Enable local service providers to improve design, delivery and scale of innovative WASH products and services; Promote local private sector engagement in operations, maintenance and self-supply of water access points; Coordinate multi-stakeholder planning, monitoring and evaluation, and learning, ensuring access to reliable data; Improve quality of implementation and management of water service delivery; Help schools generate evidence for use in planning, resource mobilisation and implementation of WASH services; Increase private sector participation in maintaining school water and sanitation facilities to improve functionality; and, Strengthen school mechanisms for providing girls access to WASH services and products. Intervention Areas in Zambia 1. Kasama 2. Chinsali 3. Mpika 4. Chongwe 5. Kafue 6. Chibombo 7. Solwezi 6.3 Projects Iron Removal Innovation Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 250,300, In Zambia, access to safe water is already poor as there are not enough access points to serve the population, a situation that is worsened by the fact that a considerable number of water facilities tend to become dysfunctional because of excessive iron content in boreholes, particularly in the northern regions. Since June 2013, SNV has been 17 Annual Report 2013

18 implementing a water quality improvement project that promotes the use of low-cost iron removal technology at affected water points. SNV supported a local private sector actor to develop a low cost iron removal plant. In addition, SNV provides hands-on training to local artisans, known as Area Pump Menders (APMs), to repair boreholes and to service the iron removal plants. In turn, APMs are paid a fee by the community for services rendered. SNV has also engaged local trade institutions to offer the APM training to locals. The APMs constitute a local private sector response to a local community need for good quality, safe water. Results 32,312 citizens (16,394 Women, 15,918 Men) had access to clean and safe water thanks to SNV s Iron Removal project in Menstrual Hygiene Management were disseminated to the Ministries and key stakeholders in order to help them inform policy that will better enable girls to attend school year-round. Donor: UNICEF, Water Aid, and DGIS, USD 54,000, 2013 In 2013, SNV conducted two smaller activities to support Menstrual Health Management (MHM). SNV, with funding from UNICEF, WaterAid and DGIS, and in collaboration with the Ministries of Education and of Health and other international and national partners, undertook research on schoolgirls menstrual hygiene management. The study aimed to establish the challenges adolescent schoolgirls face in hygienically managing menstruation during school hours and to determine the effect the ability to manage their menses had on girls school attendance and learning. The study confirmed that adolescent girls do miss school during menstruation for a variety of reasons, including lack of access to sanitary facilities. The results of the study Further, through a separate public-private partnership valued at around 27,183, SNV and OLAM are aiming to improve the sanitation facilities and sanitation and hygiene practice in school around OLAM s coffee plantation; increase the number of adolescent schoolgirls receiving menstrual hygiene education in those schools and increase access for women and girls in the communities to reusable sanitary pads. Local women s clubs manufacture these pads, following training from SNV and initial support from OLAM, who provided sewing machines and startup materials. In addition, SNV trains the women s clubs in basic bookkeeping and entrepreneurship, including marketing of the pads. The approach ensures that quality reusable pads are accessible to a wider range of girls and women at affordable prices. Results Menstrual Hygiene Management (MHM) promotion activities were conducted for 720 girls in 18 schools. Activities promoted the use of locally made reusable sanitary pads, which were distributed to 273 girls. 18 Annual Report 2013

19 6.4 Experiences of a Local Service Provider Knox Chilumbu, Knotin Environmental Services (Local Service Provider) 1.0 mg/l maximum level set by the Zambian Bureau of Standards (ZBS). In 2013, the SNV WASH programme supported the promotion and installation of a new and alternative technology for iron removal, the High-Rate Iron Removing Plant (HR-IRP), at Lukashya RHC in Kasama, Northern Zambia. This innovation was designed by a local service provider (LSP), Knotin Environmental Services, based in Solwezi, Zambia. The HR-IRP is capable of reducing undesirable elements in water, including iron, to acceptable levels. The device also maintains the concentration of such elements within an acceptable range. HR-IRP can reduce iron content from a level of 7.5 mg/l to 0.2 mg/l a level well below the In addition to iron-removal, the HR-IRP has many other benefits. It lasts longer than conventional Iron Removing Plants (IRPs), which are more frequently blocked, and it is more user-friendly. SNV and Knotin Environmental Services equipped water facilities in Kasama, Mpika and Chinsali districts with HR- IRPs and trained community members in pump mending and water point caretaking. As a result, thousands of people gained access to drinkable water and could use the water from their restored water access point for domestic use as well. Our Localisation Strategy: Working with Local Service Providers Our ambition is to strengthen the ability within Zambia to provide high quality capacity development services to organisations that work towards poverty alleviation in a lasting way. As part of our sustainability strategy, local service providers (LSPs) play an ever increasing role in building the capacity of our clients. LSPs are those agents that are owned and governed within the country or region and provide capacity development services. Just like SNV itself, LSPs provide advisory services, knowledge brokering services and evidence-based advocacy services. 19 Annual Report 2013

20 7 Renewable Energy 7.1 Why We Work in Renewable Energy Access to energy is a key factor for economic growth. However, energy poverty is a serious issue in Zambia. Only 21% of the population has access to on-grid electricity. This average nationwide statistic gives a skewed perspective however, as 60% of the Zambian population lives in rural areas where access to on-grid electricity is only 3.4%. A majority of Zambians, therefore, depend on biomass energy mainly firewood and charcoal for cooking, heating and lighting. Zambia already has the fifth highest deforestation rate in the world and this will only worsen as Zambia s anticipated population growth increases the demand for household energy. The Government of Zambia is partnering with the private sector to invest in developing energy infrastructure projects, however, once again the costs of providing services to the dispersed population makes the network needs prohibitively high. It is clear that current investments are not expected to match current needs, nor needs projected by population growth. It is in this context that SNV uses a market-based approach to sustainably develop alternative forms of renewable energy to foster economic development and poverty reduction in Zambia. 7.2 Our Approach Our objective is to develop innovative business models that address the need for environmentally sustainable, affordable household energy, from production to end use. The focus in 2013 was on increasing access to domestic biogas, improved cook stoves and biofuels (Jatropha oil for lighting). 20 Annual Report 2013

21 How do we do this? Increase the distribution of improved cook stoves that consume less fuel by training enterprises on production, business development and network expansion; Facilitate production and supply of industrial saw dust briquettes to substitute for charcoal and firewood; Work with small-scale jatropha oil extractive enterprises, the Department of Energy and the Ministry of Agriculture to support jatropha oil production and develop a distribution network for selling the oil to rural households; and, Support policy dialogue through local organisations. Intervention Areas in Zambia 1. Kasama 2. Mungwi 3. Chinsali 4. Isoka 5. Kapiri Mposhi 7.3 Projects Biofuels for Lighting Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 733,229, SNV works with existing small-scale jatropha oil and lamp producing enterprises to promote the use of jatropha oil as a kerosene substitute. This intervention aims to increase the market demand for jatropha oil and lamps as an alternative source of household lighting. This innovative project began in June 2013 and operates in five districts: Kasama, Mungwi, Chinsali, Isoka and Kapiri Mposhi. It aims to provide over 29,000 litres of refined jatropha oil to 4,248 rural households in year one. Moreover, 3,650 farmers are expected to benefit from additional farm incomes through the sale of jatropha seed to enterprises that extract oil. 21 Annual Report 2013

22 Results Improved capacity of 5 enterprises, comprising 78 members (42 women), to participate in the production and sale of oil; Another 5 enterprises were trained to effectively produce and market the specially designed jatropha lamps; A distribution network, comprising 25 village retailers (5 per district), was also established in 5 districts and business links to oil and lamp producers were established; 760 lamps and 676 litres of oil were produced in 2013 by these enterprises Improved Cook Stoves Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 90,000, To address the energy problem in Zambia, SNV promotes the use of alternative energy products and technologies for households and small businesses. Improved cook stoves consume less charcoal and wood per meal and can also process biomass briquettes, an alternative and sustainable source of biomass energy. SNV facilitates the development of an improved cook stove and briquette supply chain and also trains individuals to produce, market and sell improved cook stoves and briquettes. Results 4,325 improved cook stoves were produced and sold; Reaching 21,625 people Domestic Biogas Donor: The Netherlands Directorate-General for International Cooperation (DGIS), EUR 147,696, SNV seeks to increase the production and use of domestic biogas for sustainable and affordable household energy. To this end, the domestic biogas programme helps train masons to construct and supply small-holder farmers who possess cows or pigs with a bio-digester. Biogas can be used for lighting and cooking, and its by-product bio slurry can be used as an organic fertiliser. In 2014, SNV will introduce the use of biogas for productive use in the Biogas Milk Chilling project, reaching more than 120 smallholder dairy farmers in 15 districts. 22 Annual Report 2013

23 7.4 Developing the Value Chain for Biofuels for Lighting and Lamps in Zambia By Chanda Mongo, Renewable Energy Sector Leader, SNV Zambia Only 21% of the population in Zambia has access to electricity, leaving the other 79% dependant on firewood and charcoal for cooking and heating, and on kerosene and candles for lighting. In rural areas, the level of connectivity to the electricity grid is even lower, at only 3.4%. In the late 1990s, some international companies persuaded a number of farmers in Zambia to plant Jatropha seedlings for producing biodiesel, which these companies pledged to buy from them. However, when the jatropha fruits were ready after three years, these companies discovered that the profit margins were not going to be sustainable and they abandoned the farmers. SNV, therefore, decided to intervene to enable these farmers to develop a business using their small jatropha plantations, averaging 1 hectare per farmer, and involving some 12,000 small holders. The first intervention involved training the farmers to make jatropha bath soap from the oil and organic fertiliser from the jatropha seed cake. While these interventions were modestly successful, the most promising intervention was launched in 2012 the development of the jatropha oil lamp for household lighting. The results of pilot tests in five districts of Zambia were very encouraging, as the newly developed jatropha oil lamp was found to be more cost effective than its kerosene equivalent and appeared to have mosquito repelling properties (to be confirmed by laboratory tests in 2014). SNV Zambia subsequently applied for additional funds to take the project beyond the pilot stage. With Netherlands Directorate-General for International Cooperation (DGIS) funds amounting to EUR 733,229 for a three-year period ( ), the team began identifying and forming oil producer groups and lamp producer groups in the five project districts. The five districts Kapiri Mposhi in Central province, Kasama and Mungwi in Northern province, and Chinsali and Isoka in Muchinga province were selected based on their concentration of mature, seed-bearing jatropha trees. In 2013, SNV Zambia established five jatropha oil producing enterprises, one in each of the five districts; five jatropha lamp producing enterprises and 25 retailers, in order to reach more households in the farming communities with oil and lamps. The enterprises were trained in technical and business development aspects, which included costing and pricing. SNV further linked the producer enterprises to retailers, through a workshop where different players in the value chain were clearly defined and illustrated. SNV also sourced oil presses from the Department of Energy for each of the five oil producing enterprises to enhance extraction efficiency and capacity. Operation and maintenance training was provided to the oil producing enterprises and bulking centres were established to make jatropha fruit procurement, storage, transportation and processing more economical. Finally, SNV sub-contracted the Technology Development and Advisory Unit of the University of Zambia as an LSP, to develop a prototype dehusking machine for decorticating the jatropha fruits. Decorticating makes it easier to extract jatropha oil from the fresh and dry fruit. In 2013, the biofuels project aided the production of 760 lamps and 676 litres of oil. 23 Annual Report 2013

24 8 Overall Development Numbers 24 Annual Report 2013

25 Agricultural Sector SNV reached 130,753 people who have improved their food security; 22,864 people who increased incomes and 3,409 people who accessed new jobs. In total, 157,026 people benefited from the agricultural programme (rice, bee-products, meat and dairy), through interventions on contract farming, extension services, market access and policy development. Renewable Energy Sector The renewable energy programme reached 21,728 people; Through operationalisation of improved and clean cooking stoves, biofuel crop production and training in biogas technology. WASH Sector The water, sanitation and hygiene programme contributed to reaching 92,308 people in 2013; through capacity support for district water departments and artisan associations (borehole maintenance), through hygiene promotion activities in schools and through school WASH mapping. 25 Annual Report 2013

26 9 Financial Report In 2013, our country programme budget was EUR 3,509,268. SNV s main funder was the Netherlands Directorate-General for International Cooperation (DGIS). We also received funding from other partners such as United Nations International Children s Emergency Fund (UNICEF), Enhanced Integrated Framework (EIF), International Fund for Agricultural Development (IFAD), Lumwana Mines, APF, Imani Development, and Water Aid, who contributed to projects across SNV sectors. With a programme:admin ratio of 67:33, SNV implements successful development projects, making the organisation an ideal value for money partner. 26 Annual Report 2013

27 Number of Persons Benefiting from Improved Service Delivery 92,308 21, ,026 Agriculture WASH Renewable Energy Expenditures Per Sector 18% 16% 66% Agriculture WASH Renewable Energy Additional Sources of Income (to DGIS) EIF APF Unicef Lumwana IMANI Development IFAD WaterAid 27 Annual Report 2013

28 10 SNV Staff 28 Annual Report 2013

29 Country Management Team Sue Ellis Country Director Thomas Were Sector Leader Agriculture Chanda Mongo Sect Renewable Energy Kumbulani Ndlovu Sector Leader Water, Sanitation and Hygiene Bwali Ndau Country Operations Manager Ireen Chitesa Finance Manager Support Staff Susan Chisapi Management Assistant Elastol Lungu Procurement and Contracts Officer Katundu Muyunda Finance Officer Michelo Hamanenga Finance Officer Patricia Kapambwe Finance Intern Masuzyo Phiri Human Resources Intern Godfrey Mutokoma Driver Collins Munshimbwe Driver Fred Makukula Driver Christiopher Kabwe Driver Agriculture Sector Malani Simukoko Agribusiness Development Senior Advisor TIPEC-ZAS Corjan van de Jagt - Agribusiness Development Senior Advisor - SAPP Clair van der Kleij Agribusiness Development Advisor APF Eta Manda Agribusiness Development Advisor - Rice Chola Mfula Agribusiness Development Advisor - AIESS Brian Nyambe Agribusiness Development Advisor - AIESS Elijah Kangwa Smallholder Outreach and Production Networks Officer TIPEC-ZAS Chisenga Lufungulo Marketing, Trade and Investments Officer TIPEC-ZAS Sombo Mafuleti Monitoring and Evaluations Officer TIPEC-ZAS Aubrey Chulu Project Officer Climate Smart Agriculture Brian Kapotwe Project Officer Dairy Hub Nchimunya Kasongo Assistant Coordinator APF Zozi Nalishuwa Rice Value Chain Output Marketing - Intern Nosiku Siyumbwa Knowledge Development Intern WASH Sector Katungu Mukelabai WASH Advisor Iron Removal Lifumbo Wamunyima Behavioural Change Officer Muchemani Zumu Construction Engineer UNICEF Solomon Mbewe Construction Engineer DFID Chansa Chansa Project Manager UNICEF Inonge Libuko - WASH Intern RE Sector Namakau Mwanangombe Project Manager Biofuels Kenan Lungu Project Manager Biogas 29 Annual Report 2013

30 11 Partnerships and Local Service Providers SNV works with the Government of Zambia, international and local development organisations, and the private sector to use our collective expertise to increase impact. To address the challenges of achieving Zambia s National Development Plan and its Vision 2030, key actors are needed to provide services and collaboratively steer policy, capitalising on their different strengths to drive development. Ownership and long-term sustainability of development processes are more likely to be achieved when we work closely with the increasing number of local service providers and improve their quality along the way. Local service providers will increasingly take the lead in developmental processes, with international organisations like SNV supporting their advancement, rather than undertaking initiatives themselves. In 2013, SNV Zambia worked with the following local service providers: Agriculture Golden Valley Agricultural Research Trust MUSIKA Development Initiatives Agribusiness Forum Misamfu Agricultural Research Institute Nutri Aid Trust Rural Economic Expansion Services Forest Fruits Agri-Business Forum Zambia Forestry College Mpongwe Beekeeping Enterprises Agriculture Consultative Forum (ACF) WASH Knotin Environmental Services Kasama Christian Community Care Southern Sahara Development Enterprise Prime Management Development Consultants Renewable Energy Lusaka Vocational Training Centre Wind of Change Enterprises (WoC) Rural Economic Expansion Services (REES) Technology Development Advisory Unit (TDAU-UNZA) 30 Annual Report 2013

31 31 Annual Report 2013

32 Lusaka Office SNV Netherlands Development Organisation 7 Nkanchibaya Road, Rhodes Park P. O. Box 31771, Lusaka, Zambia T: /175 F: Kasama Office SNV Netherlands Development Organisation Plot 2623 Lunzuwa Road, Central Town P. O. Box , Kasama, Zambia T: F: