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Innovations Against Poverty

Innovations Against Poverty. Supporting entrepreneurs for global solutions. Addressing the underserved markets. 1.4 bn people living below the poverty line , $1.25 a day. A challenge to the private sector. A programme within Sida’s Business for Development

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Innovations Against Poverty

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  1. Innovations Against Poverty Supportingentrepreneurs for global solutions

  2. Addressing the underserved markets 1.4 bnpeoplelivingbelow the povertyline, $1.25 a day

  3. A challengeto the private sector • A programmewithinSida’s Business for Development • Mobilisingresources and encouragecompaniestodeveloptheircoreactivities in waysthat benefit poor • The triplebottomline

  4. Partners beingkeytosuccess • Somecompanies leading the way • Examplesofhowto • bringlocalsuppliersintovaluechain • empowerwomen • innovate in products and services • new waysofdoing business

  5. Investing in INNOVATIVE and GOOD IDEAS to fight poverty • Support to create and develop commercial opportunities in underserved (developing) markets • Funding and financial assistance • Exchange of experiences and knowledge in a global network

  6. FUNDING & FINANCIAL ASSISTANCE and ADVISORY SUPPORT

  7. Whocanapply? • Companies and othercommercially driven organisations • Anyorigin of company – butprojectshould benefit poor in developing country • Not involved in weapons, tobacco or gambling industry • Environmentally and sociallyresponsible

  8. For business and projectideaswith… • Potential for commercial viability • Positive development effects • Innovative aspects • Additionality - would not have happened without IAP support

  9. FinancialAssistance • Large grants (up to Euro 200,000) – application process in two steps • Small grants (up to Euro 20,000) – simplifiedapplication process The IAP grant covers upto 50% of the cost - should be matched by equalamount from applicant.

  10. Large grants

  11. Small grants

  12. Sida guarantees • Separate Sida scheme to share risks and enable financing solutions for projects with developmental impact. • IAP will support companies in elaborating inclusive business ideas, but applications for guarantees are administered by Sida.

  13. Reporting, monitoring and audit • Baseline • Completionreport • Progress reporting • Annualfinancialreporting • Annualprojectaudit

  14. Advisory support • When developing IB projects and applications for grant funding • For fine-tuning IB projects after having been selected for IAP grants • “Stand-alone” advisory support to businesses who are not applying for grant funding

  15. Importantdates Eachyear, twoopportunitiestoapply for grants.For 2011: • Firstcycle deadline: May 31 • Second cycle deadline: November 25

  16. Inclusive Business

  17. What is “Inclusive Business” all about? • Profitable core business activities that generate development impacts • Creating win-wins • A common concept but an array of different terms and definitions IFC IBLF WBCSD BIF wikipedia UDNP

  18. IAP defines IB as… …“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”.

  19. How is IB different to ‘business as usual’? INNOVATION • Inclusive business usually goes further than ‘business as usual’ in creating new economic opportunities for people living in poverty.

  20. IB in practice

  21. IB in practice: 3 examples Afri-Nut

  22. Afri-Nut: Improving productivity and farmer’s income

  23. What are the benefits? For business • Established profitable groundnut processing and distribution business For development • Expanded market opportunities for Malawian producers • Increased income for smallholder farmers/ organisations • Increase in Fairtrade certified cooperatives • Environmental and health benefits through Aflatoxin management

  24. The Coca-Cola Company: Enabling jobs and opportunity

  25. What are the benefits? For business • Increased sales and delivery in areas hard to serve with conventional trucks • Reduced costs associated with distribution • Better customer service by supplying products on demand to meet the needs of retailers For development • Income and job creation • Women empowerment

  26. Oando: Providing households with affordable and accessible clean cooking fuels

  27. What are the benefits? For business • Reach low income households with an innovative product in the currently underserved gas market • Realise first mover advantage For development • Access to affordable and accessible clean cooking fuels as an alternative to conventional fuels such as kerosene, firewood, electricity or charcoal • Reduced negative health and environmental impacts

  28. Some lessons… IB models • provide opportunities for win-win • can be developed anywhere in the value chain • can be implemented across different sectors/ industries , countries and businesses But often… • involve higher risks and/or higher initial transaction costs than normal business • face challenges on how to reach low-income groups at scale

  29. The IAP team at the Sida exhibitionstand

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