NGO Inclusive Business

Workshop
Karen Smith
BIF Malawi Country Manager
NGO Inclusive
Business
Workshop
Time Activity

8.30am – 9:00am Registration: Tea, Coffee and Snacks

9:00am – 9:15am 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

Contents

• What is Private Sector Development?

• What is Inclusive Business?
• Introduction to BIF
• Imani Development Projects

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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: Macro
– Making Markets Work for the Poor (M4P)
– Green Growth
– Industrial Policy and Business Environment Reform
– Value Chain Development
– PPPs
– Business Development Services
– Inclusive Business
Micro

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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 / Interventionist /
Pro-business Non-business

Business as Inclusive Social Fair Trade: Government Tax & spend:

usual & CSR: Business: Enterprise: combines brokered: revenues
non-core core profits core contract from
business business that reinvested in business with farming – parastatals
activities for innovates to stakeholders non-core socialist used for
philanthropic include the / the producer and model; rigid social
or strategic poor in the community supplier price setting programmes
aims value chain relationships

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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

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Engagement With Different Kinds Of
Organisations
Commercial Social
Businesses Enterprises NGOs

Universal Industries: MEGA: Micro-Hydro Microloan Foundation:

High Quality Cassava electricity generation Market linkages for
Flour project at Mulanje Mountain smallholder farmers

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BIF Projects: Impacts Along The Value
Chain

Universal
Industries
Nali Malawi
Afri-Nut
Mangoes

BISC

Microloan

Tree
Crops

GTC MEGA

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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

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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

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BIF Outcomes

Client Benefits
BIF Learning DfID / Development
Technical assistance for a Community Goals
project Information gained from
Information to help make monitoring and evaluation of
better decisions projects – what does and
doesn’t work in inclusive Better understanding of
Access to international business inclusive busiess and its
commercial and development applications, limitations and
and environmental expertise Lessons learnt from
opportunities
companies and consultants
Become part of a community involved Access to case studies and
sharing ideas and best information on companies
practice Developing case studies and
and individuals who are
other materials to share
DfID “seal of approval” as practising inclusive business
being a socially conscious Identifying new IB models
Realising sustainable pro-
business Growing an IB practitioner poor objectives via
Increased credibility and network through commercial projects
branding in social marketplace Extensive website – the Hub

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Direct Through To Systemic Impact

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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

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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

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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

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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

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CA/ICCO Private Sector Engagement
Strategy

• CA/ICCO wanted to engage with private sector for pro-

poor 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)

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Private Sector Engagement:
Rice Sector Strategy
PARTICIPATION:  Increase the ability of the poor to
COMPETITIVENESS:  Maximise the size of the rice
better participate in the growth of the sector and
sector in Malawi  
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   Micro  Level  

This  requires  NGO  to  act  as  facilitators  and  drivers   Strengthen  farmer  bargaining  power  in  the  value  
of  stakeholder  collabora?on  and  coordinated   chain  to  improve  and  increase  rice  supply  and  to  
investment  in  sector:   receive  fair  reward.  To  do  this,  find  market  based  
•    Establish  formal  forum  for  dialogue  and  ac=on   solu=ons  to  provide  farmers  with  access  to:    
•    Ensure  financial  sector,  government  and  other  key     •  Informa=on  
enablers  are  on  board,  as  with  the  CoDon   •  Finance  
Development  Trust   •  Business  &  savings  management  training  and  
•  Strengthen  Kilombero  branding  to  target  domes=c   saving  scheme  
and  regional  markets   •  Markets  
•  Ensure  price  compe==veness   •  Organisa=on  and  aggrega=on  facili=es  
•  Prepare  for  standard  requirements   •Extension  services  and  affordable  inputs  

This can only be achieved through building sustainable partnerships and setting a long-term
horizon for expected outcomes
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Malawi National Export Strategy

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Thank you!!
[email protected]
[email protected]
or visit: www.businessinnovationfacility.org

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