MDFN learning event. RAP3 lessons from the CONNECT pilot. 13 December Rural Access Programme Development through access

Transcription

1 MDFN learning event RAP3 lessons from the CONNECT pilot 13 December 2018

2 RAP3 & economic development in the Karnali Economic growth and expanded access to basic services are critical in developing competitive and inclusive economies. RAP1 SED RAP2 SED RAP3 SED RAP3 CONNECT 2

3 CONNECT The CONNECT pilot was designed to test what it takes to help businesses grow in the harsh, remote conditions of the Karnali. Enabling Environment Reducing Risk Business Growth 3

4 Shift from SED to CONNECT SED Implementation through INGO & LNGO partners Working directly with producer groups as well as other value chain actors Cost sharing of production inputs Advisory services via agrovets and government technical officers CONNECT Direct implementation in partnership with private sector Directly supporting and building capacity of MSMEs Co-investment model, leveraging third party support for inputs Establishing and building capacity of a network of in-community lead farmers 4

5 Enabling Environment Idea Studio Nepal Yuva Vayus DCCI Executive Committee Financial Service providers Future Entrepreneurs Clubs 5

6 MSME Partners Jumli Beans Hamri Didis Dairy Fresh Vegetables Organic ginger Seeds Poultry Fresh Vegetables Seeds 6

7 RAP3 CONNECT Capacity Building Business Skills Up & down stream connections / Identifying markets Financial planning Relationship management Finance Loans Insurance Subsidies Capital investment Business Growth / Increased Incomes 7

8 Market system approaches Targeting small, viable businesses instead of sectors RAP3 CONNECT SED Input approaches delivers value for money and bridges the gap between SED input programmes and sector wide, market system interventions. 8

9 Sustainability Working with already established, viable businesses Partnership depends on co-designed pathway to graduation Sustainability is demonstrated by graduation from CONNECT support 9

10 Value for money - design Quick and efficient Co-investment model Direct delivery Adaptability is part of the design 10

11 Value for money - leverage 15% 23% 41% FI Third Party CONNECT CONNECT Partner 21% 5.78 leveraged for every 1 of Ukaid spent 11

12 Who is investing? And how? CONNECT Co-investment in infrastructure e.g. irrigation or seed grading machines Capacity Building Programme Activities e.g training or organic certification CONNECT Partners (cash and in-kind) Capital assets Programme Activities e.g. training or organic certification Third Party (cash and in-kind) Beneficiaries Government investment and subsidies Financial Institutions Business Loans Small loans to farmers and Hamri Didis Insurance 12

13 MSME leverage summary Financial Institutions CONNECT Partners CONNECT Third Parties Jumli Beans Dairy Fresh Veg (ACH) Poultry Fresh Veg (DAI) Seeds (DAD) Hamri Didis Seeds (DAI) Organic Ginger 13

14 Beneficiaries Jumlil Beans Seeds (DAI) Seeds (DAD) CONNECT Spend per beneficiary Number of Beneficiaries Hamri Didis Fresh veg (ACH) Poultry Dairy Ginger Fresh veg (DAI) CONNECT Spend per beneficiary per month 0 14

15 Impact - Beneficiaries reached 3641 households reached through 9 MSME partnerships CONNECT spend on 9 MSME partnerships - 792,346 Spend per beneficiary CONNECT Other

16 Impact business growth Long term contracts with buyers 31% growth in trade Improved quality Grading of beans and seeds Increased lacto content of milk Organic certification of ginger 16

17 Impact income generation Comparing Year 2 to Year 1 Ginger farmers + 420% in total payments Seed producers % in total payments Dairy farmers + 4.2% increase in payments Reflecting increased number of farmers, quantities produced and fluctuating prices. 17

18 Income Generation & Yuva Vayus Yuva Vayus are an alternative to traditional social mobilisers and lead farmers. Initially appointed as volunteers they now have additional income opportunities: Dairy farmers - earning commission on sales of veterinary medicines. Seed producers earning commission on sales of pesticides and insecticides. Ginger farmers receiving daily wages for supporting loan and insurance application documentation. 18

19 Lessons for the Karnali Sustainability is in-built Value for money Quick and efficient start-up Investment leveraged Quick wins for UKaid Impact Business Growth Household reach Income Generation Fills the gap between inputs and M4P. 19

20 What works in the Karnali? Improved Road Access Sectors Businesses Shift from subsistence to commercial agriculture SED Input approaches Households 20

21 End Thank you 21