Delivering on UN Zero Hunger goal for Nigeria by powering UAV in agriculture

Transcription

1 Submission to the internal London campus competition for the Hult Prize Challenge (2 December 2017) Delivering on UN Zero Hunger goal for Nigeria by powering UAV in agriculture Hult International Business School, London Campus, EMBA year 2 Team Agri-Drones: Mary Anyankpele, Tasos Kostrivas, Maria Mayer, Anna Zvolikevych

2 Background Hult Prize is a global competition launched in 2009 to deliver entrepreneurial solutions to world s most crucial challenges. In 2017 more than 1000 schools all over the world were represented with more than teams competing. Only six teams will be selected globally, they will be trained during summer and then will compete on the premises of the UN Head Quarters in New York in September Just one team will be selected and will receive $ of seed capital to finance its project. Hult Prize is linked to the UN Sustainable Development Goals. Hult Prize Challenge for 2018 is Transform. Harnessing the Power of Energy to Transform Lives of 10 Million People. The Challenge includes six dimensions to map energy transformation: connectivity, mobility, farming, water, pathways and education. Our team was competing in the internal campus selection process with a project to address the challenge of Farming, Food and Agriculture. Although this project was not selected to re present the London Campus in the regional competition in March 2018, we believe it has a potential both for entrepreneurial and humanitarian considerations. This project focuses on Goal 2 Zero Hunger with the aim to create a scalable sustainable solution with social impact which could benefit 10 million people by The focus of the project is on Innovating how we grow food (Hult Prize, 2018). 2

3 Agenda: Welcome on Board! UN SDG Zero Hunger Why Nigeria? Social Business Model Why UAVs? Financial Plan Vision to 2025 Annexes: Source: pwc, 2016, p.17 Our Team Sustainability UAV Analysis Detailed Model and Impact References 3

4 Hult Prize 2018 conservation agriculture, climate-smart agriculture to increase agricultural productivity 01 Hult Prize Dimension 3 Innovating how we grow food 02 Renewable energy Solar and bio-ethanol 04 Yields Improvement Impacting lives of 10 million people by 2025 UAVs 03 Fixing productivity gap Icons: curtsey to Hult Prize 2018, UN SDG; drone Icon made by Freepik from 4

5 Why Nigeria? Fastest growing population in Sub-Saharan Africa, economic growth is driven by private business Agriculture value added per worker** 65.6mln Basic human needs (nutrition etc.)** UK 1.38bn Agriculture value added, % of GDP*** 323mln U.S. financing, partnerships financing, partnerships, technology 186mln (240mln*) Nigeria franchisees, China inexpensive UAV, basic functions, software included 1 out of 2 people lives on under $2 per day (DFID, 2017) Children (7-14yo) employed in agriculture ** Government, local authorities, NGOs, partnerships * forecast for 2025 **comparison to world average ***World Bank data,

6 Social Business Model Sample subtitle text put here, Sample subtitle text put here Agri-Drones 2 stage approach: Stage 1 ( ). Creating an ecosystem for mass-penetration of drones via franchising arrangements (providing drones, training, powered by solar and biofuel) Stage 2 ( ). Upgrading to multi-functional drones (addressing land disputes, climate change mitigation, areal surveillance), preventive disruption of fossil-based farming practices Agri-Drones Entrepreneurs Farmers Social Impact Franchiser Agricultural Customers Wellbeing, environment, Cooperatives Franchisees offset of CO 2 future generations 6

7 WHY UAVs? for small-scale farming, linking agriculture with technology Future with drones Currently without drones Spray Not Spray Spray reducing use of chemicals gaining environmental and health advantage improving yield Not Spray practical or regulatory limitations no change Icon made by Freepik from 7

8 Financial Plan Success is based on scale and Nigeria s policy to simplify regulations for UAVs indication of the breakeven point $1,000,000 Reaching a breakeven point in 2021 Investing in software and multi-functional UAVs to address the clients needs in Sub-contracting to provide services to local authorities and government from

9 Vision to 2025 Sample subtitle text put here, Sample subtitle text put here forming reaching out to Investing into the Break-even point, partnerships, franchisees, first network, creating discussions with starting training revenue stream the ecosystem government to expand to mapping reaching expanding to remote working with Upgrading services 10,000,000 people areas, disruptive ecosystem is operational government and NGOs, training to customers, outreach to funders 9

10 Annexes

11 Our Team Tasos Kostrivas* Maria Mayer Mary Anyankpele Anna Zvolikevych Engineering (energy) Logistics (chemicals) Business models Research and innovation Humanitarian aid Market design Training mentorship Financial models Stakeholders and partnerships Development (Nigeria) Project management Energy Sector (electricity) * photo: curtsey to Hult London 11

12 Sustainability: business model triangle tune Economics (bankability of project) Social/Equity (UN SDG Zero Hunger) Environment (clean energy and agri technology) 12

13 Sustainability: Main staple crops in Nigeria Average recorded lowest and highest yields, kg/hectare Cassava Rice Maize Sorghum Cotton Mean yield Low yield High yield Source: Ajetomobi J., 2016, p.12 13

14 Leading Expert s Opinion...about 10 s of millions of preventable deaths could be achieved each year through the use of drones for planned and emergency supplies, and humanitarian disaster response Source: Nwoji C., The Guardian (Nigeria), 20 July 2017 Nigeria possibly is a single largest drone market in Africa" Source: UAVaid, 2017 Source: Ronen. D, 28 November 2017, London 14

15 UAV analysis: comparing against alternatives Stage 1 Stage 2 Description Manual labour Tractors Drones Satellites Cost $ $$$ $ ($$) $$$$$ Maintenance $$ $ Flexibility Customer Centricity Health Impact Environmental Impact Climate Change Adaptation 15

16 Detailed Business Model Agri-Drones business 1 Ecosystem Social impact Value creation and capture Solar Biofuel (bioethanol) Hardware drones Software tasks, data Franchisees Entrepreneurs Cooperatives Crowdfunding MFIs, government supported programmes Large farms Small farms Remote areas Lagos/ Abuja area food security, enriched nutrition, qualified jobs Borno state Future opportunities Developing back-up, training facilities Multifunctional UAVs, data analysis for MFIs, authorities; better insurance; land demarcation Farming diversification, offsetting CO 2, employment creation Zero hunger for growing population 16

17 Impact Value Chain* Stakeholders Inputs Activities Outputs Outcomes (adjusted) Goal Alignment Agri-Drones Financing, equipment, training Building partnerships, franchising model Contracts signed, trainings delivered, revenue Creating ecosystem at micro-level Regular check-up if company delivers on its social mission Franchisees Entrepreneurial spirit, field experience Services to farmers Field served, clients retained. % from revenue Increased welfare, technological skills Farmers Willingness to embrace technology Learning advantages of technology Fertilizers saved Yields improved Improved health, better nutrition Local communities Support for using drones Regulation and public acceptance Food security More education, improved role for women Environment and future generations Less health damage; avoided CO 2 emissions Better preparedness for climate change * based on Olsen, S., & Galimidi, B. (2008), p.12 17

18 References Sample subtitle text put here, Sample subtitle text put here Agribotix. (2016). ROI Calculator for an Agricultural Drone Service Provider. Retrieved from Ajetomobi, J. (2016, November). Effects of weather extremes on crop yeilds in Nigeria. African Journal of Food, Agriculture, Nutrition and Development, 16(4). Anyankpele, M., Kostrivas, T., Mayer, M., & Zvolikevych, A. (2017, December 02). Hult Prize 2018 London Campus Competition. Agri-Drones: delivering on Zero Hunger goal for Nigeria by powering UAV in agriculture. London. Catholic Relief Services. (2017, June 7). 11 Cost-Effective Uses of Drones in ICT for Agriculture. (ICTworks, Producer) Retrieved from Clifton, K. (2017, April 7). Making Boots on the Ground More Effective: The Potential of Unmanned Aerial Vehicles in Agricultural Development. (AgriLinks, Producer) Retrieved from DFID. (2017). Nigeria. Retrieved from Hult Prize. (2018). Harnessing the Power of Energy to Transform the Lives of 10 Million People. Retrieved from Joyance. (2017). 15L precision agriculture spraying drone(jt15l-608). Retrieved from sticide_spra.html Nwoji, C. (2017, July 20). Experts advocate use of drones for development programmes. The Guardian (Nigeria). Retrieved from Olsen, S., & Galimidi, B. (2008). CATALOG OF APPROACHES TO IMPACT MEASUREMENT. Assessing social impact in private ventures. Version 1.1. Social Venture Technology Group PwC. (2016). Clarity from above. PwC global report on th commercial applications of drone technology. PwC. Ronen, D. (2017, November 28). CEO, UAVaid. (T. Kostrivas, A. Zvolikevych, & M. Anyankpele, Interviewers) London. UAVaid. (2017, July 2017). UAVAid at Baze University, Nigeria. Retrieved from United Nations. (n.d.). Sustainable Development Goals. Goal 2. Zero Hunger. Retrieved from USAID. (2017). Nigeria: Hunger and Food Security. Retrieved from WEF. (2014, May). Prospects for Reaping a Demographic Dividend in Nigeria. Retrieved from pdf World Bank. (2017). Nigeria: Country Profile. Retrieved from ntry=nga McKinnon, T. (2016). Agricultural Drones: What Farmers Need to Know. Agribotix. 18