NGO Inclusive Business Workshop. Karen Smith BIF Malawi Country Manager

Transcription

1 NGO Inclusive Business Workshop Karen Smith BIF Malawi Country Manager

2 NGO Inclusive Business Workshop Time Activity 8.30am 9:00am 9:00am 9:15am Registration: Tea, Coffee and Snacks Introductions 9:15am 9:35am Presentation on BCA/CBE 9:35am 10:00am Introduction to inclusive business and BIF 10:00am 10:45am Break out to discuss the opportunities and challenges for NGOs in realising their objectives through working with the private sector. 10:45am 11:00am Coffee Break 11:00am 11:20am Afri-Nut, NASFAM, a successful inclusive business story. 11:20am 12:15am Break out for action planning session 12:15am 12:30am Summary and wrap up

3 Contents What is Private Sector Development? What is Inclusive Business? Introduction to BIF Imani Development Projects 3

4 What is Private Sector Development? PSD is a strategy for promoting economic growth and reducing poverty in developing countries by building private enterprises and competitive markets that are stronger and more inclusive. In recent years there has been a shift in development thinking towards integration with PSD Approaches include: Making Markets Work for the Poor (M4P) Green Growth Industrial Policy and Business Environment Reform Value Chain Development PPPs Business Development Services Inclusive Business Macro Micro 4

5 What is Inclusive Business? The term inclusive business refers to profitable core business activity that also tangibly expands opportunities for the poor and disadvantaged in developing countries. Such business models can engage the poor as employees, suppliers, distributors, consumers and/or innovators. Liberal / Pro-business Interventionist / Non-business Business as usual & CSR: non-core business activities for philanthropic or strategic aims Inclusive Business: core business that innovates to include the poor in the value chain Social Enterprise: profits reinvested in stakeholders / the community Fair Trade: combines core business with non-core producer and supplier relationships Government brokered: contract farming socialist model; rigid price setting Tax & spend: revenues from parastatals used for social programmes 5

6 BIF Basics Objective: to facilitate inclusive business projects, with an environmental sub-objective Benefit to DFID: learning which will better enable large scale private sector development Pilot in 5 countries: Malawi, Zambia, Bangladesh, India & Nigeria PWC lead contractor, Imani is local subcontractor in Malawi 3 years; now half way through the second year Initial Budget per country 500,000, scaled up in Malawi by another 500,000 for Years 2 & 3 If model proves successful, there potential for DFID and other donor partners scale up the Facility both within and beyond the initial pilot countries from 3M to 30 60M 6

7 Engagement With Different Kinds Of Organisations Commercial Businesses Social Enterprises NGOs Universal Industries: High Quality Cassava Flour project MEGA: Micro-Hydro electricity generation at Mulanje Mountain Microloan Foundation: Market linkages for smallholder farmers 7

8 BIF Projects: Impacts Along The Value Chain Nali Universal Industries Malawi Mangoes Afri-Nut BISC Microloan Tree Crops GTC MEGA 8

9 BIF Projects: Environmental Climate Smart Agriculture Information on adaptation and mitigation for climate change Tool to develop a climate smart strategy for agri-businesses Information about carbon finance Global Tea and Commodities Renewable Energy Feasibility Study Processing facilities on Malawi estates reliant on diesel generators Options considered for solar, wind, biomass and micro-hydro as alternative clean energy sources EcoBricks Commercial drive for quantities of better quality bricks for construction Environmental friendly solution to be explored using Vertical Shaft Brick Kiln technology 9

10 BIF Mechanisms Signposting: Sharing knowledge and information Examples include introducing companies to potential investors, linking organisations to others with similar objectives, sharing research papers and case studies, sending links to relevant information online Non-Contracted Support Projects (10 underway): Small technical support projects, up to 12,000 Examples include feasibility studies, workshops, business plans, surveys Cost Sharing Projects (5 underway): Larger projects providing consultancy support of up to 70,000 which must be matched in-kind by the client Types of work undertaken cover all aspects of business, e.g. marketing, financial modelling, shareholder structures, KPIs, partnership brokering, value chain analysis 10

11 BIF Outcomes Client Benefits Technical assistance for a project Information to help make better decisions Access to international commercial and development and environmental expertise Become part of a community sharing ideas and best practice DfID seal of approval as being a socially conscious business Increased credibility and branding in social marketplace BIF Learning Information gained from monitoring and evaluation of projects what does and doesn t work in inclusive business Lessons learnt from companies and consultants involved Developing case studies and other materials to share Identifying new IB models Growing an IB practitioner network through Extensive website the Hub DfID / Development Community Goals Better understanding of inclusive busiess and its applications, limitations and opportunities Access to case studies and information on companies and individuals who are practising inclusive business Realising sustainable propoor objectives via commercial projects 11

12 Direct Through To Systemic Impact 12

13 The BIF Hub BIF resource as well as for sister project IAP Blogs by practitioners as well as editorial comment Resources include directory of documents, links, project information, etc 13

14 Emerging Technology Innovations Facilitating Development in Malawi AgroTech Smartphone based technology for capturing data Includes GPS Many potential uses e.g. enabling smallholders to access loans based on reliable information of land holding Esoko A powerful set of web and SMS tools that any business, project or government can use to affordably and quickly exchange information with members, suppliers or customers in the field Enables agribusiness and projects the opportunity to share information quickly and affordably, creating a free flow of information in and out of rural areas. Mobile money developments 14

15 Learning from BIF Malawi to date Consultancy approach works well as a way of facilitating projects benefits from blending local understanding with international expertise networking and signposting an important part of the project Current economic climate is extremely difficult but it also drives innovation e.g. value addition, exports Less interaction with big business, more with start ups; scale and replication need to come Some BIF tools not suited to Malawi e.g. webinars Appetite for inclusive business in Malawi has been proven, particularly in agribusiness, and there is also a lot of potential for renewable energy projects 15

16 Imani Development International economic development consultancy with offices in SA, East Africa, Australia and the UK Malawi team have a breadth of skills and experience including International trade and economics Development consultancy Environmental consultancy Business consultancy Recent projects in Malawi include Managing and delivering technical consultancy for the Business Innovation Facility Developing a Private Sector Engagement Plan for ICCO / Christian Aid Managing the development of a National Export Strategy for Malawi 16

17 CA/ICCO Private Sector Engagement Strategy CA/ICCO wanted to engage with private sector for propoor impact but no knowledge of how to do this Phase 1: Imani developed overview of private sector in Malawi Phase 2: Analysis of key sectors / players conducted to identify opportunities for engagement Phase 3: In depth analysis and implementation plan, including partnering strategy, for selected sectors: rice and jatropha Phase 4: Pilot (currently ongoing) Phase 5: Full roll out (later in 2012) 17

18 Private Sector Engagement: Rice Sector Strategy COMPETITIVENESS: Maximise the size of the rice sector in Malawi PARTICIPATION: Increase the ability of the poor to better participate in the growth of the sector and to be allow for a fair reward that allows savings Increase local & regional sales for Kilombero and Super Faya brands and improve the quality & quantity of rice produced by farmers, and enable them to bargain a fair price Macro Level This requires NGO to act as facilitators and drivers of stakeholder collabora?on and coordinated investment in sector: Establish formal forum for dialogue and ac=on Ensure financial sector, government and other key enablers are on board, as with the CoDon Development Trust Strengthen Kilombero branding to target domes=c and regional markets Ensure price compe==veness Prepare for standard requirements Micro Level Strengthen farmer bargaining power in the value chain to improve and increase rice supply and to receive fair reward. To do this, find market based solu=ons to provide farmers with access to: Informa=on Finance Business & savings management training and saving scheme Markets Organisa=on and aggrega=on facili=es Extension services and affordable inputs This can only be achieved through building sustainable partnerships and setting a long-term horizon for expected outcomes 18

19 Malawi National Export Strategy 19

20 Thank you!! or visit: BIF disclaimer here: E.g PricewaterhouseCoopers LLP. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom) which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.