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» POSITION PAPER SEPTEMBER 2014

CORDAID’S APPROACH AND TRACK RECORD

ENTREPRENEURS FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS

SEPTEMBER 2014 © CORDAID

ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS

1

FOREWORD

Nobody would deny that entrepreneurs represent a driving force

to tackle fragility and build a socio-economically stable society.

Not only because of their collectively generated economic

impact, but very much because of multiple spin-off s such as

increased employment, skills and spending power for families.

But what does an entrepreneur need to be able to build a busi-

ness in often extremely diffi cult circumstances?

Th ink of South Sudan, think of Sierra Leone. Th e list of entre-

preneurial needs is long – from access to fi nance, to clear and

supportive regulations; from qualifi ed personnel, to exposure

to innovations. Th ese needs are pressing even in non-fragile

contexts, let alone in areas where society is emerging from a

destructive civil war or natural disaster.

In particular, Small and Medium-sized Enterprises (SMEs) are

potentially the professional businesses that can fuel an econo-

my’s fi re. However, they are signifi cantly hindered by a risk

adverse and disconnected fi nancial sector with restricted access

to capital and a limited range of appropriate fi nancial services

and products. Th e obstacles can seem insurmountable; however,

we have seen success stories.

Take the Rural Finance Initiative (RUFI) in South-Sudan for

instance. Th is is a microfi nance company that has managed to

develop itself in recent years and is currently expanding its

activities from microfi nance to services for SMEs. Or take the

West Africa Venture Fund (WAVF), providing for fi nancial and

business development services in post-civil war Sierra Leone.

One of their clients, a fl ourishing tea factory, is starting to

conquer the European market.

Many local SMEs simply cannot be successful without embracing

problem solving innovations, which often fi nd their incubation

abroad. Cordaid acts as a catalyst at the international level by

leveraging ideas and innovations that off er potential to local

actors and SMEs. Th e birth of the Babyviewer, one of the success-

ful cases described in this paper, is a perfect example of how

global entrepreneurs apply 21st century technology to generate

social impact and work together with Cordaid to develop via

social enterprises.

All the cases in this paper describe the way entrepreneurship

can contribute to meaningful social impact and thus to fl ourish-

ing communities in fragile contexts. Th is often starts at the

most elementary level. As Denis Poggo from RUFI puts it,

referring to feedback from female clients whose entrepreneurial

activities earned them extra income which helped to reduce

tensions within the household:

“Peace doesn’t come from outside, building peace starts within the family”.

Simone Filippini

CEO Cordaid



2

CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1. FOSTERING ENTREPRENEURSHIP IN FRAGILE CONTEXTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.1 Focus on fragility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.2 Tackling fragility through entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

1.3 Cordaid’s approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1.4 Inclusive investments in fragile settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1.5 Leveraging ideas and innovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2. FIGHTING FRAGILITY THROUGH INCLUSIVE BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Case 1: RUFI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Investing in peace in South Sudan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Case 2: SUCCEED, PEF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Supporting inclusive development for resilience and lasting peace in Mindanao . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Case 3: WAVF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Innovative fi nance for SMEs in Sierra Leone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3. PARTNERING FOR INCLUSIVE BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Case 4: Innovation: Soil in a bag . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Introducing new ways of addressing social challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Case 5: Co-creation: The Babyviewer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Bringing together vested stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Case 6: Social venture: Urban Link . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Identifying gaps in the market and supporting impact driven enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28



3

EXECUTIVE SUMMARY

A quarter of the world population lives in societies aff ected

by confl ict. Inequality and poverty hit people living in such

fragile contexts twice as hard. While the international

community is reshaping the future of development coopera-

tion, consensus is growing on the importance of focusing

international development eff orts in fragile and confl ict-

aff ected situations.

As inclusive economic growth is a vital condition for reducing

fragility and fi ghting poverty, investing in income generation

activities and private sector development is an important

strategy for peace. For young people especially, whose wide-

spread unemployment is one of the most pressing social

challenges facing fragile regions, jobs and opportunities for

entrepreneurship are extremely important. Additionally,

supporting entrepreneurship among women and empowering

them economically similarly is an eff ective strategy for

reducing fragility and rebuilding livelihoods.

Cordaid’s mission is to contribute to the structural social

change and transformation that is needed to build fl ourishing

communities in fragile and confl ict-aff ected situations.

Cordaid encourages local private sector development in fragile

contexts by supporting and advancing entrepreneurship and

the activities of small and medium-sized enterprises (SMEs).

Th is support not only helps to create jobs and fi ght poverty,

but also to build trust, reduce inequalities and increase social

cohesion within and between communities.

Cordaid’s track record in promoting inclusive business in

fragile contexts is based on four principles:

▪ An integrated approach, which emphasizes the need for

social change that is embedded within local communities;

▪ A multi-stakeholder approach, which brings together a

variety of local, national and international stakeholders;

▪ Partnerships for smart solutions, which are partnerships

with innovative organizations worldwide, including the

private sector and research institutes;

▪ Blended fi nancing, which seeks to fi nance smart solutions

by bringing together diff erent kinds of fi nancial support

(grants, loans, investments).

Th e fragile contexts around the world where Cordaid works

diff er a great deal from each other. Th e local dynamics of

fragility determine the choice of interventions, which are

always designed and implemented together with local part-

ners. Cordaid’s work in the area of entrepreneurship focuses

on three cornerstones:

▪ Security and justice: Women’s economic empowerment,

Risk reduction, Rule of Law & enforcement

▪ Opportunities: Banking & fi nance, Markets & value chains,

Personnel

▪ Governance and services: Health, Education, Regulations

In 2014, Cordaid created the Stability Impact Fund (SIF), an

impact-fi rst investment fund that provides access to fi nance to

entrepreneurs and SMEs operating in fragile contexts. To build

the economic and entrepreneurial skills and capacities of its

investees, Cordaid also provides confl ict-sensitive Business

Development Services (BDS). Cordaid will increasingly focus

investments on the ‘missing middle’ of small enterprises in

fragile contexts. Th is forgotten target group suff ers most from

a non-functioning fi nancial sector and a lack of access to

capital. At the same time, these small SMEs have a great

potential of being powerful contributors to growth and key

stabilizers of economies in fragile contexts.

Cordaid pro-actively identifi es opportunities to strengthen

the potential of local entrepreneurship by connecting local

actors to innovative concepts and companies around the world.

Cordaid actively searches for partners – companies, technical

and academic institutes, impact investors, venture philanthro-

pists – to co-create innovations that contribute to solving

problems faced by fragile communities. Cordaid also initiates

social ventures to realize social goals.

Th is position paper shows case-based evidence from South

Sudan, Mindanao (Philippines) and Sierra Leone, illustrating

Cordaid’s multifaceted approach to fostering local entrepre-

neurship in complex fragile contexts. Th e paper also discusses

examples of international partnerships for inclusive business

that tackle diverse issues including youth unemployment in

Ethiopia, maternal death in Sub-Saharan Africa and fl ooding

in Bangladesh.



4

1.2 Tackling fragility through entrepreneurship It is no coincidence that half of the world’s poor people live in

fragile contexts. Fragility feeds poverty while poverty and

inequality in turn breed fragility. Increasingly it is realized

that inclusive economic growth is a vital condition for reduc-

ing fragility. Th is points to the importance of fostering

entrepreneurship in fragile and post-confl ict situations. In its

2014 report ‘Ending confl ict & building peace in Africa: a call to

action’, the African Development Bank (AfDB) stresses that in

countries transitioning out of confl ict, the private sector can be

a force for stabilization and renewal, creating alternatives to

confl ict economies based on illicit activity.6 Th e AfDB recom-

mends making investments in income generation activities an

early priority, even in the midst of confl ict, as a strategy for

promoting peace. Other authoritative institutions including

the World Bank, the OECD and the European Commission

similarly stress the signifi cance of inclusive growth, including

in fragile contexts, by promoting entrepreneurship and private

sector development in order to combat poverty and fragility.7

Th e New Deal for Engagement in Fragile States, an initiative of

the International Dialogue on Peacebuilding and Statebuilding

(IDPS),8 singles out ‘Economic Foundations: Generate employment and

improve livelihoods’ as one of fi ve Peacebuilding and Statebuilding

Goals (PSGs).9

1.1 Focus on fragilityTh e international community is reshaping the future of

development cooperation. Th ough there are diff erences in

opinion about how the issue of peace and security is best

incorporated in the Post-2015 Global Development Agenda,1

there is a growing consensus on the importance of focusing

development eff orts in fragile and confl ict-aff ected situations.

Th e urgency fi rstly lies with the numbers: according to the

World Bank and the OECD, by 2015 a third of the world popula-

tion and half of all people surviving on less than $1.25, will live

in societies aff ected by fragility and confl ict.2,3 It is expected

that by 2025, two-thirds of all poor people will live in fragile

states and confl ict countries.

Fragility hinders sustainable development. Since the launch of

the Millennium Development Goals (MDGs) in 2000, absolute

poverty as a percentage of the world population has declined

and the lives of many poor people have improved. However,

progress on the MDGs has been very slow, if not stagnant, in

low-income fragile countries. In these states, fundamental

human needs continue to go unsatisfi ed, for example, women

are unsafe and exploited, children are malnourished and

unschooled, and communities are divided and insecure.

Fragility should thus be tackled to help millions of women,

men and children escape poverty and live decent lives in

safety.4 Fragility also needs to be addressed because, in a world

of global interdependencies, unstable countries and contexts

with increasing inequalities between countries undermine

global peace and security.

Fragile communitiesCordaid’s mission is to contribute to the structural social

change that is needed to build fl ourishing communities

in fragile contexts.

“A fragile community is one in which the social struc-

tures, systems, and institutions intended to provide for

the satisfaction of fundamental human needs such as

subsistence, protection, identity, participation, and

understanding are dysfunctional for the purpose.

Th is condition undermines the legitimacy of the social

contract between state and society, the governors and

the governed. A fl ourishing community by contrast will

be one in which the social structures are specifi cally

designed so that these human needs can be satisfi ed in a

stable and sustainable manner thereby legitimizing the

social contract between people and their government.”5

1. FOSTERING ENTREPRENEURSHIP IN FRAGILE CONTEXTS

Transforming economies: the Post-2015 AgendaIn 2000, the Millennium Development Goals (MDGs) were

launched. None of the eight MDGs specifi cally refers to

creating employment or fostering entrepreneurship. Times

have changed and priorities have too. Th e UN High-Level

Panel (HLP) of Eminent Persons on the Post-2015

Development Agenda13 has singled out ‘Transforming

economies for jobs and inclusive growth’ as one of fi ve

transformative shifts needed to eradicate poverty. Inclusive

growth is considered vital to address the growing inequali-

ties within and between countries, which are breeding

grounds for confl ict and fragility. Th e HLP has proposed

twelve goals in preparation for the Sustainable

Development Goals (SDGs) that will be agreed upon by the

international community in 2015, including:

Goal 8. Create Jobs, Sustainable Livelihoods, and Equitable Growth

▪ Increase the number of good and decent jobs and

livelihoods

▪ Decrease the number of young people not in education,

employment or training

▪ Strengthen productive capacity by providing universal

access to fi nancial services and infrastructure such as

transportation and ICT

▪ Increase new start-ups and value added from new

products through creating an enabling business

environment and boosting entrepreneurship

It is imperative that these goals will be duly implemented

in fragile contexts.



5

Increasingly it is realized that

inclusive economic growth is a vital

condition for reducing fragility.

Th is points to the importance of

fostering entrepreneurship in

fragile and post-confl ict situations.

1.3 Cordaid’s approachCordaid encourages local private sector development in fragile

contexts by supporting entrepreneurship and small and medium-

sized enterprises (SMEs). Th is support not only helps to create

jobs and fi ght poverty, but also to build trust, reduce inequalities

and increase social cohesion within and between communities.

For Cordaid, these are crucial steps on the way to building

fl ourishing communities. People are encouraged to take initia-

tive based on local needs and priorities and to seize economic

opportunities for themselves and their communities. Cordaid’s

proven track record in promoting inclusive business in fragile

and confl ict-aff ected situations is based on four principles:

▪ An integrated approach, which emphasizes the need for

social change that is embedded within local communities;

▪ A multi-stakeholder approach, which brings together a

variety of local, national and international stakeholders;

▪ Partnerships for smart solutions, which are partnerships

with innovative organizations worldwide, including the

private sector and research institutes;

▪ Blended fi nancing, which seeks to fi nance smart solutions

by bringing together diff erent kinds of fi nancial support

(grants, loans, investments).

Cordaid focuses on three cornerstones (see visual).

In linking entrepreneurship and inclusive growth to overcome

fragility, all above-mentioned institutions point to two vital

trends:

1. Th e widespread unemployment of youth is one of the most

pressing social challenges facing fragile regions in Africa

especially. Unemployed youth are a severe threat to

stability. Th e fast growing proportion of young people

makes this problem ever more urgent. For example in

South Sudan and Sierra Leone, 66% and 61% of the

population respectively is aged between 15 and 29 years

old – compared to 33% in the United States.10 Jobs and

opportunities for entrepreneurship are extremely

important and can help to draw young people away from

confl ict.11 However, given that the education of many of

these youths was interrupted by confl ict, they will need to

be supported with training in vocational skills, fi nancial

literacy and apprenticeships.

2. Fragility impacts women and men diff erently and often leads

to increased vulnerability for women and girls. At the same

time, women play a key role in agriculture, trade and micro-

businesses, mostly within the informal sector. Research shows

that supporting entrepreneurship among women (through

access to fi nance and training) contributes signifi cantly to

growth and job creation.12 In addition, women tend to invest

more into their children’s health and education than men.

Empowering women economically and bringing them

together in cooperatives and small businesses, is an eff ective

strategy for rebuilding livelihoods and reducing fragility.

Entrepreneur

Risk reduction

Women's economic

empowerment

Rule of law

legislation

Health

Education

Regulations

Banking &

Finance

Personnel

Markets & ValueChains

FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXT

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INCLUSIVE APPROACH

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SECURITY AND JUSTICE

legislation

INTERNATIO

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GOVERNANCE

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INCLUSIVE FINANCE



6

Education: Access to vocational training is important in (post-)

confl ict countries where electricians, carpenters, accountants

etc. are needed to rebuild the economy. Scarcity of technically

skilled labor may result in high costs to recruit from abroad.

Th ere should be a focus on equipping young people with the

skills needed to contribute to the economy, including entrepre-

neurial skills and a positive work ethic (punctuality, confl ict

resolution and loyalty).

Regulations: Entrepreneurs and SMEs need clear regulatory

frameworks and supportive policies that make it easy to start

and operate a business, and that also discourage corruption.

Such frameworks (e.g. on land and property rights, and taxes)

are also important in building trust among business partners

and resolving confl icts eff ectively. Clear and fair regulations

also have a positive impact on risk perceptions.

Women’s cooperatives in AfghanistanIn Afghanistan, 80% of the population lives in rural areas and

is dependent on agriculture and livestock for their liveli-

hoods. However, war and drought have made it diffi cult for

many Afghans to make a living through farming. Th ey lack

access to land, markets, credit and agricultural extension

services. 1.5 million children aged under fi ve reside in food

insecure households. Women play a vital role in small-scale

agricultural activities. Th eir role, however, often goes

unacknowledged in conservative Afghan society. In the

Balkh province of northern Afghanistan, Cordaid, together

with its local partner NPO/RRAA, supports women in

establishing cooperatives for carpet weaving and livestock

rearing. By collectively buying the raw materials and

reducing the need for middlemen, the women involved in

carpet weaving can increase their earnings. Th e extra income

is used to feed their families and to enrol their children,

especially girls, in school. “Th ere are other important social

impacts too,” says Ahmad Salim, Programme Coordinator for

Food Security based in Kabul. “Only fi ve years ago, women

had no right to leave their houses. Men took all decisions and

the women’s role was restricted to cooking and caring for the

children. Now that the women are organized under the

umbrella of cooperatives, a lot has changed. Th ey can now

receive loans and funds for their productive activities. Th e

fact that they earn their own income has gained them more

respect from male family members and generally improved

their social standing. Many women are now involved in

decision-making within the family and community”.

Security and justice: Women’s economic empowerment, Risk

reduction, Rule of Law & enforcement

Women’s economic empowerment: Specifi c constraints faced by

female entrepreneurs must be addressed, including lack of

security, mobility and access to fi nance (due to lack of collateral

and traditional inheritance systems). Legal frameworks, for

example on land ownership and the right for women to sign

contracts, need to be adjusted and implemented to provide

equal opportunities to everyone.

Risk reduction: Entrepreneurs and private companies will be

more inclined to invest if they are confi dent that risk reduction

measures are in place that will support them in case of

outbreaks of violence, natural disasters (e.g. fl ooding or

drought) or large-scale health risks (e.g. outbreak of Ebola).

Rule of law & enforcement: Many fragile contexts lack a good

working judicial system. Furthermore, for regulations and laws

to be eff ective, they need to be implemented and enforced in a

fair and transparent way. Th is includes payment of taxes,

dispute settlement and mediation, and contract enforcement.

Both employers and employees need to know what they can

expect from law enforcement institutions such as the police.

Opportunities: Banking & fi nance, Markets & value chains,

Personnel

Banking & fi nance: Entrepreneurs need capital to invest in

equipment, supplies and services. In many fragile contexts the

banking sector is underdeveloped. Th e ‘missing middle’ is

particularly underserved (see 1.4). Access to fi nance is vital to

SMEs and entrepreneurs, who often do not meet commercial

bank requirements on collateralization, formal registration,

fi nancial track record, etc.

Markets & value chains: In many fragile contexts, markets do not

function well due to insecurity, poor infrastructure and

diffi cult cross-border trade. Gaps in value chains such as poor

input sourcing add to this problem. Signifi cant losses occur in

the production, storage and distribution stages of agricultural

and other value chains. Entrepreneurs often lack relevant

market information about costs, markets and quality and

availability of inputs.

Personnel: Investing in the competencies of personnel as well as

in work ethics are preconditions for enterprise success and

sustainability in any context. Th is is especially the case in

fragile contexts as individual needs often supersede social

cohesion in the workplace. Business development services (BDS)

therefore play an important role in strengthening SMEs for

growth and bankability.

Governance and services: Health, Education, Regulations

Health: Healthy people are better workers and more creative

entrepreneurs. A stable workforce secures the continuity of

business as well as income for both employers and employees.

People who have access to aff ordable health care will be less

inclined to lose income from interrupted employment or

business due to illness, hospitalization or fatality.

Ph

oto

Co

rdaid

Women’s cooperative in Balkh, Afghanistan



7

Cordaid works in fragile contexts that can diff er a great deal

from each other. Th ere are countries that as a whole are

defi ned as fragile, such as South Sudan and Afghanistan

(category A in fi gure 1). Th ere are also countries that on the

whole are considered safe and stable, but which include areas

of fragility (category B in fi gure 1). An example of this is the

Philippines, a middle-income country, which is extremely

vulnerable to natural hazards and where the recently ended

confl ict over the Muslim part of the island Mindanao was a

cause of fragility for many years.

Various dynamics of fragility determine the possibilities for

fostering entrepreneurship and private sector development.

Priorities to boost the economy in category A contexts must

be sought in ‘governance and services’ (e.g. access to basic

education, vocational training) and ‘security and justice’

(e.g. building of institutions and fair macroeconomic policies).

In category B contexts, entrepreneurship can be fostered by

promoting ‘opportunities’: making SMEs investment-ready by

means of business development services, improving value

chains and providing access to suitable investment capital

(see chapter 2 for the case of Cordaid’s partners, SUCCEED and

PEF, in the Philippines).

Interventions must always respond to the specifi c local

context. South Sudan and Afghanistan, for instance, are both

fragile countries, but the possibilities for private sector

development in the two countries diff er considerably. In South

Sudan, opportunities for SME development are only tentative-

ly emerging. Due to insecurity and a lack of infrastructure,

producing and processing locally is both expensive and risky.

Th e country is highly dependent on imported goods. Th e

unregulated activities of banking, land registration, taxation,

as well as the unpredictability of exchange rates or infl ation

requires returns of cash fl ows over a short period. In South

Sudan, Cordaid’s partner RUFI provides microfi nance loans to

farmers and rural entrepreneurs (see chapter 2). Helping

people earn a basic income is a strategy for peace in the

volatile post-confl ict situation. Recently, RUFI started

including SMEs in its lending port folio. Supporting basic

business skills and fi nancial literacy are crucial for economic

development in South Sudan.

Afghanistan, traditionally a country of traders, already off ers

more possibilities to work on private sector development. Road

conditions and electricity are unreliable compared to western

standards, but advanced when compared to South Sudan.

Afghans trade with neighboring countries like Uzbekistan,

Iran and Pakistan. In Afghanistan, Cordaid works successfully

with farmers’ cooperatives and women’s cooperatives, which

produce handmade carpets that fi nd their way to Middle

Eastern markets (see box Women’s cooperatives in

Afghanistan). Th e positive impacts that these cooperatives

have on empowerment and social cohesion are at least as

important as their impact on economic development.

Generally safe and reliable developing countries (category C

in fi gure 1) are the most suitable for promoting private sector

development through social enterprises, innovation and

partnerships. Th ese contexts can also be used to pilot inter-

ventions that may be successfully implemented in fragile

contexts in the future. A prime example of this approach is the

case of the Babyviewer ultrasound technology that Cordaid

and its international partners have developed and will soon be

tested in Ghana or Ethiopia (see chapter 3).

FIGURE 1: CONTEXT SENSITIVITY AND TAILOR-MADE INTERVENTIONS

INC

LS

S

I

INCLU ROACH

PART

NER

SHIPS

LOBBY AND AD

VOC

AC

Y


legislation

INN

OVATIO

N

OP

PO

RTU

NITIES

GOVERNANCE

AN

D S

ERV

ICES

INTERNATIO

NA

L M

AR

KET

S

INC

LS

S

I

INC OACH

PART

NER

SHIPS

LOBBY AND AD

VOC

AC

Y


I

INN

OVATIO

N

OP

PO

RTU

NITIES

GOVERNANCE

AN

D S

ERV

ICES

INTERNATIO

NA

L M

AR

KET

S

INC

LUS

NE

SS

INC

LW

TH

INCLUS PPROACH

PART

NER

SHIPS

LOBBY AND AD

VOC

AC

Y


legislation

INCCE

INN

OVATIO

N

OP

PO

RTU

NITIES

GOVERNANCE

AN

D S

ERV

ICES

CE

INTERNATIO

NA

L M

AR

KET

S

■ Category A: Fragile countries

■ Category B: Developing and middle-income

countries with fragile confl ict-affected areas

■ Category C: Developing countries

Philippines

Ghana

South Sudan

Financial performance

Soci

al p

erfo

rma

nce



8

1.4 Inclusive investments in fragile settings Access to fi nance is key to fostering sustainable economic

growth. However, in most fragile and confl ict-aff ected situa-

tions, the vast majority of entrepreneurs have little to no access

to fi nance. “Th e business case for confl ict-sensitive investments

is built at grassroots level, where instability hits hardest and

the potential for social impact is at its highest,” says Laure

Wessemius Chibrac, Director of Cordaid Investments.

Stability Impact Fund

In 2013, Cordaid created the Stability Impact Fund (SIF). Th is

targeted €40-50 million fund is an impact-fi rst fund that

channels a large part of its investments through microfi nance

institutions (MFIs) and SME funds. MFIs serve micro-entrepre-

neurs such as small farmers, traders and market vendors to

provide them with access to fi nance helping them survive on

a day-to-day basis. SME funds, such as WAVF in Sierra Leone

and PEF in the Philippines (see chapter 2 and 3) usually serve

SMEs that have a fi nancing need of over €100.000.

“ Th e business case for confl ict-sensitive investments

is built at grassroots level, where instability hits

hardest and the potential for social impact is at

their highest.”

Laure Wessemius Chibrac, Director of Cordaid Investments.

Cordaid’s ambition is to expand the share of its investments in

smaller SMEs – referred to as the missing middle – to 10% of the

portfolio of the Stability Impact Fund. Th is missing middle of

small enterprises, which are in need of fi nance of between

€10,000 and 100,000, suff er most from a non-functioning

fi nancial sector and a lack of capital. Th ey are a forgotten target

group that is under-served. Foreign investors – the few that do

not avoid fragile, mostly (post-)confl ict zones – as well as local

banks are rarely willing to invest in small businesses due to

the higher costs and risks involved. Poor infrastructure, weak

human resource skills and a lack of appropriate business

development services make the costs of doing business

extremely high, also for fi nancial institutions. Th is is the

reason why most investors concentrate on either microfi nance

or large corporations. Cordaid however strongly believes that it

is the missing middle of the small SMEs that have the largest

impact, being powerful contributors of growth and key

stabilizers of economies in fragile contexts. Financial risks

may be high and the management expensive but, when the

investment is successful, the social impact is high too.

Total committed amount at Sept. 2014: EUR 8,690,000

PORTFOLIO STABILITY IMPACT FUND

DR Congo

Sierra Leone

South Sudan

(% are based on the committed amounts)

11%

45%

44%

DETERGENT

DETERGENT

DETERGENT

4 rs = 300!

$$@

MFI MFIMISSING MIDDLE

SEEDSwaterresistant

TOILET

€

MICRO INDIRECT THROUGH MFI’S

EUR 250k – 1m

EUR 500 - 10k ACCESS TO FINANCE FOR ENTREPRENEUR

INVESTMENTS SIZE

TA GRANT FOR INVESTEES*

BD SERVICE FOR LOCAL SME*

5 - 10%

EUR 10k - 100k

25 - 40%

EUR 100k – 1m

10 - 20%

SMEs DIRECT

EUR 10k – 100k

SMEs INDIRECTTHROUGH FUNDS

EUR 1m – 5m

FIGURE 2 TARGET GROUPS OF STABILITY IMPACT FUND

* % of investment size



9

Impact fi rst

Financial returns in fragile contexts are bound to be modest

given the higher costs of management relative to smaller

transaction sizes. Th e Stability Impact Fund was set up as an

impact-fi rst fund. It aims for a rate of return that ensures

capital preservation and compensates for euro-area infl ation,

estimated at 1-2% per year. Investments are often in local

currency, which also illustrates the impact-fi rst objective of the

fund. Devaluation in many fragile contexts can be so high that

denominating loans in euros would infl ate the debts of

entrepreneurs – a recipe for failure and eventually default.

At the same time, it is clear that investments need to be

fi nancially viable. “Th is is the only way to have an impact in

the long-term”, says Wessemius Chibrac. SMEs are therefore

treated with a conventional investment perspective: they must

make sure that operational costs are covered by income and

honor their loan commitments. “If we were to be slack on

invested companies paying back their loans, we would be guilty

of distorting the market,” says Wessemius Chibrac, “addition-

ally, in confl ict settings it is imperative to be seen to treat

clients fairly and equally”. Cordaid acts as a catalyst for

additional fi nancing. “Our role is to open the market and prove

that investing in fragile contexts is possible. Once we have

provided training and access to fi nance to the small enterpris-

es, their increased size might allow them to attract larger

investors.”

Impact indicatorsTh e direct impact of Cordaid’s SIF is measured amongst

others according to:

▪ Th e number of SMEs that have access to fi nance

▪ Average increase of income of SMEs, measured through

EBIT (earnings before interest and taxes)

▪ Th e percentage of new jobs created for youth >35%

▪ Th e percentage of female micro-entrepreneurs that

have expanded their business > 50%

Indirect impact can be among others assessed by:

▪ Number of indirect jobs created (suppliers, clients,

distribution)

▪ Reduction of imports by investing in the revival of

industries relevant for basic products and services

Th e selection of the fund’s potential markets is based on

Cordaid’s global track record and expertise. Micro, small and

medium enterprises will be supported via local fi nancial

institutions in South Sudan, DR Congo, North Uganda, North

Kenya, Haiti, Colombia and Myanmar as well as in a number of

focus countries like Sierra Leone, Burundi, Mindanao in the

Philippines, Ethiopia and Guatemala where they will also be

fi nanced directly by Cordaid. Investing in fragile states entails

long-term commitment, endurance and fl exibility. It requires

constant monitoring and adjusting to local dynamics. Over the

years, local partner organizations and Cordaid fi eld offi ces have

built steady relationships and trust with local communities.

Th rough their in-depth understanding of local issues, political

dynamics and markets, they are well positioned to help build

the local private sector.

Two-track approach: Finance and BDS

Cordaid’s track record of investing in the missing middle in

fragile contexts is based on a two-track approach. Th e fi rst

track consists of the provision of access to inclusive fi nance

(see Figure 2). Th e second one is the provision of fragile sensi-

tive Business Development Services (BDS). Cordaid is convinced

both access to fi nance and BDS are equally important, that they

reinforce each other when supporting the missing middle to

overcome obstacles to build a business.

Our role is to open the market and prove that investing in fragile contexts is possible. Once we have provided training and access to fi nance to the small enterprises, their increased size might attract larger investors.

BDS consist of two packages. First, there is a package of base

modules that are developed to make SMEs ‘investment-ready’.

Th ese modules provide training in general disciplines of

business management such as sound fi nancial administration,

registration as a formal business, marketing strategies and

business planning. Peer-to-peer learning is facilitated as much

as possible. Th e second package, referred to as the BDS+

modules, is designed in response to the needs of SMEs with

good growth potential in fragile contexts. Th ese modules are

tailor-made, taking into account the size of the enterprise and

its level of development. Th ey include training and consultan-

cies in realizing social impact, value chain performance,

participative leadership, inclusive business and confl ict

resolution. BDS+ is delivered through local trainers with an

extensive business background. To help SMEs learn from the

experiences of others, international experts and successful

SMEs are involved in the training. Cordaid provides fi nancial

support to enable entrepreneurs to hire these experts and

makes sure that their SME pays a percentage of that service

based on improved performance over time.



10

In fragile contexts, eff ective solutions to growth challenges are

not always close at hand. Ideas and innovations, especially in

technology and processes, often need to be sourced from

businesses and organizations operating internationally and

headquartered abroad. Cordaid actively searches for partners

– companies, technical and academic institutes, impact

investors, venture philanthropists – to co-create innovations

that will contribute to solving problems faced by fragile

communities and their entrepreneurs. Th e partnership itself

can take on many forms – for instance a PPP or a social

enterprise with a shared ownership structure - as long as

it is appropriate to the local context, is viable and, above all,

inclusive. By developing these concepts with both local actors

and impact-driven organizations from around the world,

Cordaid not only seeks self-sustainable solutions to local

problems but also strives to make sure these innovations are

economically empowering and culturally embedded.

In order to have a broad knowledge of the leading technological

ideas and innovations available, Cordaid is engaged with

international business networks, social enterprise hubs, trade

missions, and outreach. It has participated in several missions

with the Dutch Minister for Foreign Trade and Development

Cooperation to countries in Africa, South-East Asia and Central

America. Th e idea behind these missions is to encourage both

multinationals and Dutch SMEs to engage with local entrepre-

neurs. Many international companies have established a social

mission statement. Th rough outreach activities, Cordaid aims

to build on these statements and, together with local entrepre-

neurs, develop solutions that serve communities living in

fragility.

Cordaid also initiates social ventures to realize certain social

goals. Th is can be, for example, by promoting health insurance

as part of a health system strategy in Bangladesh (see box

Ensure Your Family) or by introducing a youth employment

1.5 Leveraging ideas and innovationsLocal entrepreneurship is the most important factor for

generating inclusive growth. Cordaid pro-actively identifi es

opportunities to strengthen this potential by connecting local

actors to innovative concepts and companies around the world.

Th e inclusive businesses14 that result from this are able to

expand access to goods, services, and livelihood opportunities

for those at the BoP (Base of the Pyramid) in commercially

viable and scalable ways.According to the UNDP, “Th e benefi ts

from inclusive business models go beyond immediate profi ts

and higher incomes.

For business, they include driving innovations, building

markets and strengthening supply chains. And for the poor,

they include higher productivity, sustainable earnings and

greater empowerment.”15

Glossary

Inclusive business – refers to the inclusion of people

living in poverty into business along the value chain. Th is

term is used by various organizations such as the United

Nations Development Programme (UNDP), the World

Bank and the World Business Council for Sustainable

Development (WBCSD).

Base (or Bottom) of the Pyramid (BoP) – refers to the

4 billion people with an income of 4 USD a day or less who

live primarily in Asia, Africa and South America. Th ey

are value demanding consumers, resilient and creative

entrepreneurs, producers, business partners and innova-

tors. Because they are largely excluded from formal

markets, their demand for innovative products, services

and technologies to meet their needs is largely

untapped.16

Public Private Partnership (PPP) - a form of cooperation

between businesses, civil society organizations, govern-

ments, knowledge institutions and others in which

parties combine and reinforce each other’s knowledge and

capabilities to enhance the eff ectiveness of achieving

common development objectives. Parties are jointly

accountable for activities carried out towards a common

direction, using their pooled resources and personnel as

well as sharing the risks.

Shared value creation - shared value is a management

strategy focused on companies creating measurable

business value by identifying and addressing social

problems that intersect with their business. Th e concept

was defi ned in the Harvard Business Review article

“Creating Shared Value”.17

Social enterprise/social business/social venture – refers

to companies that pursue social objectives as part of their

business model, among them fi ghting poverty. Social

enterprises apply business logic to at least cover their

costs.

Building a PPP with Philips Cordaid and Philips have teamed up to establish solar

powered community centers in rural and urban deprived

areas around the world. By providing low energy public

light to off -grid areas, the partners give fragile communi-

ties the opportunity to extend productivity by several

hours per day. In a PPP with innovative Dutch companies,

sports associations, a knowledge institute and the Dutch

government, the partners support community centers

that function as a meeting place for various activities

ranging from sports, education, healthcare provision and

a (night) market. What makes these centers unique is that

they are fi nancially self-sustainable. Sports fi elds on one

day can be night markets the next. Local traders pay a

small fee for a stall fi tted with LED lamps that provide

more reliable light to sort their fruit and vegetables. Th ey

can purchase extra energy for cooling agri-food products.

With tailor-made business models these centers can run

as social ventures generating income through the use of

light, energy and the rental of facilities. Such smart

innovations open the market for inclusive businesses

targeted at the BoP.



11

Lobby and advocacy

Impact driven businesses and (social) entrepreneurs still face

legal or fi nancial obstacles in many countries. Cordaid has a

long track record of fi ghting fragility, as an international civil

society organization, and has been a key player internationally

in advocating enabling environments and better policies that

will benefi t communities in fragile contexts. Cordaid is

therefore well positioned to promote an enabling environment

in which entrepreneurial values and inclusive businesses

can fl ourish. For instance, Cordaid actively lobbies for policy

changes that generate a legal environment in which social

enterprises are treated favorably to conventional businesses.

Authorities are inclined to make reforms if they understand

that impact-driven ventures address specifi c problems and

provide goods and services that regular for-profi t and public

organizations have overlooked. Lobbying encourages public

authorities to consider granting fi scal and tax advantages

to impact-driven ventures in order to compensate for the

disadvantages and higher costs of, for example, providing

services to remote areas.

Dutch Good Growth Fund

Th e need for capital investment in SME development has also

triggered bilateral agencies. Because of the risk levels in fragile

contexts, fi nancial tools must be supported such as guarantees,

fi rst loss options and currency loss absorption. An example is

the Dutch Good Growth Fund (DGGF). DGGF supports Dutch

SMEs, together with entrepreneurs in emerging markets and

developing countries, by off ering a source of fi nancing for

development-relevant local investments and exports. Th e DGGF

was launched by the Dutch Minister for Foreign Trade and

Development Cooperation on 1 July 2014 and intends to allocate

25% of its investments to fragile areas, women and youth.

strategy in Ethiopia (see chapter 3). To support these initiatives,

Cordaid has built a social business incubator together with

business innovators at the organization Enviu. In this incuba-

tor, Cordaid actively scouts for impact-driven business ideas

among its local partners and internationally. Th ose ideas that

show potential to become scalable social business concepts

receive support from both a specialized group of Cordaid staff

and from the business developers at Enviu. Together, they

validate impact and business assumptions and, if they consider

the business model viable, the social enterprise is incubated,

piloted and introduced to funders such as venture philanthro-

pists and impact investors.

Ensure Your FamilyIn partnership with Enviu, Cordaid has introduced novel

fi nancial and insurance products for the family members

of migrants who remained in the country of their origin.

In response to the growing amount of remittances sent

home each year by the diaspora community, the initiative

touches a pressing need: the social venture allows mi-

grants to make sure that their fi nancial support covers

important life events of their family and ensures that their

family is well protected in case of unforeseen circumstanc-

es. Using an online platform, members of the diaspora can

directly insure their families and help them become more

fi nancially equipped, starting with the organization of

aff ordable access to quality health care. Th e platform will be

fi rst introduced to Bangladeshi migrant communities and

their families, with the ambition to replicate the concept in

various high out-migration and fragile contexts.

Ph

oto

Ph

oto

shelt

er

Bangladeshi family insured by migrant family members


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 1: RUFI

12

million South Sudanese who fl ed their country during the long

drawn-out civil war between North and South Sudan (1983-

2005). He received the opportunity to study in Scotland. After

2005, when peace was signed between the Sudan People’s

Liberation Movement and the government in Khartoum, Poggo

went back to southern Sudan. He and several of his friends

found jobs in the development business in a shattered country

that needed to be rebuilt from scratch. Members of their

extended families who had stayed behind during the war kept

knocking on their doors for help. Poggo recounts: “My friends

and I discussed this and we said ‘we don’t want to become a

charity ourselves’. We had witnessed how two decades of war

and humanitarian interventions had made many of the South

Sudanese dependent on aid. We were concerned that their

passive mentality would stand in the way of building our

country. To us, the best way to contribute to restabilizing a

post-confl ict society is to encourage the private sector”. And

thus they invested their own savings and spent their evenings,

weekends and holidays on building the new company, along-

side their jobs. “At fi rst we encountered resistance,” says Poggo.

In July 2011, South Sudan became an independent nation. Th e

challenges are huge: two decades of war have left enormous

gaps in the physical and social infrastructure of the country.

Th e eruption of violence in late 2013 showed how vulnerable

the country remains to a relapse into large-scale confl ict.

Government capacity is weak, basic social services are scarce

and civil society organizations are young and inexperienced.

Most people are active in the informal sector and the majority

of the rural population are subsistence farmers. Economic

opportunities exist but are hampered by the absence of

appropriate fi nancial services and infrastructure. In 2008,

Denis Poggo and fi ve friends registered a microfi nance com-

pany, the Rural Finance Initiative (RUFI). Th ey opened an offi ce

in Kajo Keji town, on the border with Uganda. Since 2010,

Cordaid has been supporting RUFI with funds and capacity

building.

Building a business, building a countryTh e idea to start a fi nancing business was triggered by the

entrepreneurs’ own experience. Denis Poggo is one of four

2. FIGHTING FRAGILITY THROUGH INCLUSIVE BUSINESS

CASE 1: THE RURAL FINANCE INITIATIVE (RUFI)INVESTING IN PEACE IN SOUTH SUDAN

Ethiopia

KenyaUganda

MalakalBentu

Aweil

Warab

Rumbek

Yambio

Bor

Torit

Juba (RUFI)

Wau

Sudan

Central African Republic

Democratic republic of Congo

INVESTING IN ENTREPRENEURSHIP IN SOUTH SUDAN, CORDAID’S FOOTPRINT

legislation

legislation

legislation

legislation

legislation

legislation

Risk reduction

Women's economic

empowerment

Rule of law

Health

Education

Regulations

Banking &

Finance

Personnel


legislation


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 1: RUFI

13

skills development in the country, and local people are less

inclined to leave their jobs if things get tricky, which is always

a possibility in this fragile country.” Th e resident advisor set up

the Management Information System, educated the staff in

using it and trained a locally recruited CEO. “His support for

the organization was invaluable,” says Poggo. “By bringing in

experience and knowledge of fi nancing in other parts of the

continent and the world, Cordaid has broadened our horizons

and deepened our understanding of this business.”

Restore trust through fi nancial inclusionProviding access to capital for small entrepreneurs in South

Sudan is vital for building the country’s economy. But it is also

vital for peace. “At this critical stage of our country’s develop-

ment, nothing is more important than people being able to

earn a basic income,” says Poggo. “Without this prospect, it will

be very easy to revert to a war economy. After all, the one thing

that our youth has learned in the past decades is to fi ght.” RUFI

wants to help build a foundation for fi nancial inclusion in

post-war South Sudan. Most people in the rural areas are

isolated from the mainstream economy. Farmers and small

entrepreneurs have no access to fi nance from commercial

banks. RUFI’s belief is that fi nancial inclusion will help to

restore trust and social cohesion in a country that was bitterly

divided. More than half of RUFI’s clients are women. Th ey are

good at paying back their loans and they invest the little extra

they earn into their families and especially in their children’s

education. Th e government of South Sudan is regularly late in

paying salaries of civil servants. “When this happens, immedi-

ately we see crime going up,” says Poggo. “People have no back

up. However, if family members can bring in a little bit of cash

this gives some leeway and releases people from taking the

criminal route.” RUFI has received feedback from its female

clients that the company’s work contributes to better relations

within the household. While some husbands may feel threat-

ened by their wives’ increased independence now that they

earn their own income, the extra money, which is so very

needed, helps to reduce tensions in most households. “To us

this is very encouraging,” says Poggo, “peace doesn’t come from

outside, building peace starts within the family.”

“Th e notion of microcredit was new to most people. Th ey asked,

‘we are poor, why don’t you just give us the money, and why do

you ask for interest?’ But we stood our ground and explained

that living on handouts is not a way to build one’s future.

Gradually some people came to appreciate our approach”.

Cordaid began its support for RUFI in 2010 with a grant of

€ 55.000 for agricultural lending.

“ Financing farmers and rural entrepreneurs who

have no access to commercial banks will help to

strengthen the country at its foundations. People

will once again be able to dream, make plans and

act on them. It will mean more income and being

able to think ahead, which in turn, will translate

into more stability.”

Resi Janssen, Investment Manager at Cordaid.

In 2010, RUFI opened a second branch in Nimule and in 2011 a

liaison offi ce was opened in Juba, the capital of the newly

independent state. Th e company was growing and needed more

capacity. In 2012, Cordaid funded a capacity building program

that included training of offi ce and branch managers, loan

offi cers, fi nance managers and accounting staff . Th e support

also included some essential assets such as printers, software

packages and solar panels to avoid high costs of diesel genera-

tors for electricity supply. RUFI today has 21 staff and serves

around 1700 clients. “It is unlikely that without Cordaid’s

support, we would have achieved this,” says Poggo. A vital

contribution was the technical expert that Cordaid provided

who spent a full year as resident advisor at RUFI’s Juba offi ce.

As two decades of war have left an entire generation deprived

of education, many companies in South Sudan are forced to

recruit staff from Kenya and Uganda or from overseas. RUFI,

in contrast, aims to hire local staff and train them. “It’s both

less costly and more sustainable,” says Poggo. “We contribute to

The Rural Finance Initiative (RUFI): investment partner in South Sudan RUFI was established in South Sudan in 2008. South Sudan

remains a volatile country and the recent crisis has

aff ected the work of RUFI as many clients fl ed the country.

In more stable regions of the country, however, the

organization is still going strong. RUFI started with an

asset base equivalent to US$ 7,500 in October 2008.

Its portfolio by December 2013 was:

▪ Total assets: USD 1,930,114

▪ Gross outstanding portfolio: USD 1,572,225

▪ Number of clients: 2,154

▪ Number of borrowers: 1,893

▪ Percentage of female clients: 61%

▪ Percentage of rural clients: 69%

▪ Current repayment rate > 96%

▪ Number of staff : 20 (10 female, 10 male)

Ph

oto

Co

rdaid

Small entrepreneur in South Sudan


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 1: RUFI

14

business opportunities. With so many people on the run, the

transport sector profi ted. Additionally, people investing in

emergency housing for the refugees needed loans to import

cement for instance. In the areas that received many of the

refugees, shops had to restock three times a month instead of

once, leading to shopkeepers and traders turning to RUFI for

loans to import merchandise from Uganda. RUFI will continue

with its SME lending program and hopes that some of its

microfi nance clients can gradually transition into becoming

small profi table businesses, as that would indicate a signifi cant

developmental milestone.

Challenges for SMEs in South Sudan ▪ Access to capital: Banks are hesitant to lend to SMEs

arguing that, given the weak legal system, it is nearly

impossible to enforce repayments. Additionally, there is

no registry which banks can utilize to place a mortgage

or caveat on any potential security off ered to secure a

loan.

▪ High cost of operations: South Sudan is a net importer

of goods and has no national power grid. Th e high cost of

power, renting, importing from the surrounding region

with foreign currency, as well as hiring employees

hampers the growth of SMEs.

▪ Limited professionalism: Most SMEs operate on trust

and employ family members rather than professionals.

Th is limits growth and can easily hide fraud within the

enterprise.

▪ Limited government support: While there is a Private

Sector Unit in the Ministry of Finance and Economic

Planning, the support that it gives is limited and does

not help the growth of SMEs in the country to a great

extent.

Entering the SME marketFrom its start, RUFI focused on providing microfi nance mostly

to traders, vendors and farmers. In 2013, the company also

started including SMEs in its lending portfolio. “Th e potential

development gains of SME lending are bigger”, explains Poggo,

“as SMEs help to create jobs and deliver an impact in terms of

skills and knowledge transfer.” However, he says, the risks are

larger too. If SMEs default on paying back their loans, this can

mean a considerable loss for a relatively small company such as

RUFI. Th e potential risk of investing in a post-confl ict country

became clear in December 2013. An alleged coup d’état resulted

in massive killings in South Sudan. By the beginning of

January 2014, the population of Juba was halved. Th e fear of

the recurrence of violence and lootings led to many of RUFI’s

clients being forced to scale down or close their businesses. Th e

loans to people who fl ed the country, who may not return soon,

will have to be written off . “We can do little else but to accept

this loss,” says Poggo. Interestingly, the demand for loans from

SMEs increased after the recent confl ict. Th e few commercial

banks that had been fi nancing SMEs immediately stopped these

lending programs and several of the businesses turned to RUFI.

“ Peace doesn’t come from outside,

building peace starts within the family.”

Denis Poggo, Board Secretary, RUFI

“You have to be very cautious in a volatile context such as ours,”

says Poggo. “You need to understand the dynamics of confl ict

and how this aff ects the market, and be able to ascertain who is

trustworthy and who is not.” But RUFI did not shy away from

this challenge. While its Juba branch was aff ected by the

confl ict, some of its clients in Kajo Keji and Nimule saw new


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 2: MINDANAO

15

No peace without developmentTh e peace deal has given hopes of a new future to the people

of Muslim Mindanao. However, Cordaid’s local partner,

Sustainable Cooperation for Equitable Enterprise Development

Inc. (SUCCEED), warns that lasting peace depends on whether

inclusive and sustainable economic activities will be created

that benefi t the region. “As long as there is no economy that

is respectful of the diverse local communities’ rights, their

culture and their environment, rebel forces will always fi nd

new recruits among the poor and exploited,” says Joselito

(Penpen) Libres, CEO of SUCCEED.

Th e organization approached Cordaid in late 2012 with the idea

to conduct case studies of successful economic initiatives in

Mindanao, in order to collect best practices of inclusive

In March 2014, after 17 years of negotiations, a peace accord

was signed between the government of the Philippines and

the country’s largest rebel group, the Moro Islamic Liberation

Front (MILF).18 Since the 1970s, various groups have been fi ghting

for more autonomy or independence of the island Mindanao,

where most of the country’s fi ve million Muslims live among a

majority of Christians. Th e confl ict has led to more than 120,000

deaths. Th e 2014 peace deal orders the creation of an autono-

mous political entity in western Mindanao, called Bangsamoro.

Bangsamoro will receive a fairer share of revenues from the

region’s natural resources as well as having budgetary autono-

my, a parliamentary form of governance and shariah courts.

In exchange, Th e Liberation Front agreed to give up arms as well

as its demand for a separate state.

CASE 2: MINDANAOSUPPORTING INCLUSIVE DEVELOPMENT FOR RESILIENCE AND LASTING PEACE

Davao

Manila

Cebu

TaclobanBacolod City

Zamboanga

INVESTING IN ENTREPRENEURSHIP IN THE PHILIPPINES, CORDAID’S FOOTPRINT

Philippine sea

South China sea

Mindanao

General Santos City

Catabato City

Cagayan de Oro City

PEF and WRICC

Risk reduction

Women's economic

empowerment

Rule of law

Health

Education

Regulations

Banking &

Finance

Personnel


legislation


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 2: MINDANAO

16

as fertilizer or seedlings. Th e cooperative serves as a vehicle for

poverty alleviation among the poor Muslim communities in

Maguidanao province. At the same time, the cooperative is a

vehicle for peace. Th e interaction that it encourages between

members from diff erent backgrounds helps to promote

dialogue and unity. Th e experiences and the capacities that

women gain through their work for the cooperative are

empowering too. Several of them have come to play crucial

leadership roles in confl ict resolution.

Turning policy to practiceIn December 2013, SUCCEED presented the fi ndings from the

case studies at a conference in Davao City, Mindanao, to more

than 100 participants from the private sector and Chambers of

Commerce, civil society organizations, academia, religious

groups, government agencies and donors. Subsequently, the

regional government of the Autonomous Region of Muslim

Mindanao (ARMM), MILF and the Bangsamoro Transition

Commission (BTC) invited SUCCEED to share its expertise and

provide input for the region’s new economic policy. “For

decades the armed struggle was the MILF’s main focus,” says

Libres. “Now as the peace agreement has to be implemented

and they have to dismantle their militias, they realize that not

having a comprehensive economic policy is a weakness.”

Based on the action research and the proposals from partici-

pants at the conference, SUCCEED came up with a list of

recommendations for the crafting of the Bangsamoro Basic

Law (BBL), which was formally submitted to the Chair of the

BTC in February 2014. Th e recommendations refl ect that there

is an important role to play by all stakeholders. NGOs can

provide training in fi nancial literacy, business skills as well

as confl ict resolution skills. Local government can create

an enabling environment for local businesses – through

enforcement of law and regulations, service delivery, revenue

collection – and support pilot activities using tax revenues.

Cooperatives provide important services to their members

– credits, farm inputs, marketing, etc. – and at the same time

build social capital and cohesion among and between divided

communities as they are a microcosm of the diverse demo-

graphic and religious makeup of the region. Th e private sector

has the ability to off er employment and supply contracts to

large numbers of people and thereby to boost people’s

development. Th e research was to be used to support the peace

process between MILF and the government and to formulate

policy recommendations for the new leadership of the region.

“We appreciated their idea,” says José Ruijter, policy offi cer at

Cordaid, “especially because SUCCEED insisted on conducting

participatory action research rather than an academic study.

Given the political momentum of the peace talks at the time,

we gathered that thorough evidence-based lobby on economic

policy for the post-confl ict society could prove to be a catalyst

for change.”

“ As long as there is no economy that is respectful

of the diverse local communities’ rights, their culture

and their environment, rebel forces will always

fi nd new recruits among the poor and exploited.”

Joselito (Penpen) Libres, CEO of SUCCEED.

Cordaid supported the research with funds and training, and

recommended to take into account the context of socio-politi-

cal confl ict in all activities. Th e researchers were trained in

peace and confl ict dynamics, and their links to economic

development. Th ey interviewed key informants and conducted

focus group discussions that involved men and women from

Muslim, Christian and indigenous communities in the region.

Th is was done to stimulate joint refl ection on which economic

strategies can help tackle the roots of confl ict and achieve

inclusive peace. “Th e Philippines is a middle income country

and not categorized as a fragile state,” says Ruijter, “but the

Muslim area of Mindanao certainly has characteristics of

fragility. Th e decades-long confl ict is more than just a back-

ground to the local situation, it is a symptom of underlying

structural weaknesses.” Th e research confi rmed that it is the

lack of economic and employment opportunities for marginal-

ized communities in Muslim Mindanao, poor access to basic

services and justice, and poor participation in economic and

political governance (particularly over land) that has resulted

in the persistence of armed confl ict.

Th e case studies showed

that initiatives for economic

development can be successful

when they take into account

the social realities of the fragile

post-confl ict situation.

For example, the Women Rural Improvement Credit

Cooperative (WRICC) in Maguindanao province (one of the case

studies concerned) provides livelihood opportunities to 1,000

ex-combatants and supporters of the recent armed struggle by

using the leaves and stems of the water lilies that grow along

the Liguasan Marsh to make handbags and other handicrafts.

Th e cooperative also provides credit to its female members, but

does not impose an interest because this is contrary to the

teachings of Islam. WRICC usually provides credit in kind, such

Ph

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SU

CC

EE

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Women showing the handbags they made from water lilies


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 2: MINDANAO

17

Th e project combines the promotion of economic capacities

- especially for smallholder agriculture, private sector

development, and democratic accountable governance - with

local processes of confl ict resolution and peace building.

“ Social enterprises in rural areas rely on local

resources to drive the local economy and create

employment. Th ey can help households have a

sustainable income.”

Ric Torres, Program Manager PEF

Fragile climate Cordaid’s co-sponsor of SUCCEED’s December conference was

the Peace and Equity Foundation (PEF). PEF, also a Cordaid

partner, was established in 2001 to manage a 1.3 billion pesos

endowment fund, which has since grown to 2.2 billion pesos

(approximately USD 50 million20). PEF primarily invested in

microfi nance institutions in its fi rst ten years. Since 2011, it

has focused on investing in social enterprises that help rural

households gain better incomes and move out of poverty.

“Microfi nance is very important to help the poorest people

survive, but on its own it is not enough to eliminate poverty,”

says Ric Torres, program manager at PEF. “Social enterprises in

rural areas rely on local resources to drive the local economy

livelihoods in a sustainable manner. All these activities

brought together help to build inclusive economic growth and

development. Th ey promote social cohesion in what have long

been highly divided communities.

Libres adds: “In essence it comes down to the principle that the

exploitation of resources in Muslim Mindanao - like land,

water and minerals - should serve the development of the

Bangsamoro population. Th is is only possible if the population

has a say in economic decision-making, can signifi cantly

participate in economic endeavors, and substantially benefi t

from it.”

Active participation from civil society is therefore also needed

in the formulation of the Bangsamoro Development Plan (BDP).

Th is plan, which is drafted by the Bangsamoro Development

Agency (BDA) - with support from the World Bank, other donor

agencies and the government of the Philippines - defi nes

short- and medium-term strategies for the recovery and

development of the Bangsamoro. “Without the involvement of

broad local civil society this plan will have limited roots in the

communities, will lack ownership, and the economic activities

it will promote will not be as inclusive as desired,” says Libres,

who in June 2014 was elected in the Mindanao People’s Caucus

(MPC)19 council of leaders. Cordaid continues to support

SUCCEED’s advocacy activities and is funding a pilot project

that has recently started in three municipalities in the

provinces of Maguindanao, Sultan Kudarat and Lanao del Sur.

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MAGIRCO banana chips factory


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 2: MINDANAO

18

since 2012. MAGIRCO has used the MP3 loans for acquiring

machinery and equipment as well as for a study on plant

improvements. But even if business is going well and the

political confl ict in its part of Mindanao may have ended,

MAGIRCO has little time to rest on its laurels. Torres explains:

“China is the company’s primary customer, buying 70% of

MAGIRCO’s banana chips. However, whenever there is a dispute

between our two nations over the disputed South China Sea,

China stops buying. MAGIRCO is therefore keen to explore

other export markets.”

Sharia lendingIn early 2013, using MP3 funds, PEF started providing a new

fi nancial instrument in Muslim Mindanao: sharia lending.

Th is method of investment is compliant with the Islamic

context and culture of the region. “Our consultations found

that there are many fi nancial institutions and investors

working in Muslim Mindanao, but very few of them have been

successful in sustaining their investments or seeing them

grow,” says Torres. PEF, in partnership with the Muslim

institute Al Qalam and with the federation of Muslim scholars,

realized that sharia-compliant lending would fulfi ll an

important need for this region that is home to the poorest

communities in Mindanao. Torres: “According to Muslim law,

it is haram (forbidden) to ask for interest or riba. So our invest-

ments do not take the form of loans, but of equity. PEF becomes

a shareholder of the cooperative or business that we invest in.

If they do well, we become part of the success, if they fail, we

become part of the failure.” It is a whole diff erent way of

working. Normally, when companies or borrowers do not pay

back their loans, there is always the option of going to court or

foreclosing their collateral or properties. Torres: “With sharia

lending, you become part of the community, you are no longer

an anonymous capital provider. When things go wrong, you

don’t go to court, but you come together and study why things

went wrong together with the local Imam and Sharia Council.”

PEF is now supporting six groups in Mindanao with sharia

lending. Two of them are women’s groups who provide sharia-

compliant microfi nance to women entrepreneurs themselves.

Th ey are involved in diff erent businesses such as soap making,

bakeries, corn production or the cultivation of seaweed. Th is

close involvement also means that PEF supports these groups

with capacity building and business plan development. It has

brought in the experience of the Association of Islamic

Accountants to train the groups on how to prepare fi nancial

statements that are in line with sharia banking rules. Torres

considers sharia lending in Mindanao an appropriate approach

to allow for responsible impact investing and inclusive growth

in the culturally and politically sensitive area of Mindanao.

and create employment. Th ey can help households have a

sustainable income.” PEF supports projects across the

Philippines and also works in Mindanao. However, Torres

emphasizes that it is not Mindanao alone that suff ers from

fragility. “Th e increasing source of fragility in the Philippines

is climate change and this aff ects the entire country.” Th e

Philippines is among the 10 countries worldwide most prone to

natural disasters. Helping poor communities and social

enterprises become more resilient to climate change is

therefore a key element of the poverty reduction eff orts of PEF.

Since 2011, with co-funding from Cordaid, PEF has built up its

experience of fi nancing social enterprises that operate in a

context vulnerable to natural disaster. In 2015, PEF and Cordaid

will set up the Social Enterprises Fund (SEF) together. Th is fund

will invest in social enterprises that develop climate-smart

agricultural projects, such as the planting of typhoon resistant

palay seeds, the use of coconut husks for bioengineering, the

production of seedlings for mangrove forests to protect coastal

zones, and the promotion of renewable energy and technolo-

gies for community-based enterprises that reduce carbon

emissions. In the aftermath of Typhoon Sendong, which hit

northern Mindanao in December 2011, Cordaid and PEF created

a guarantee fund that allowed 3,174 displaced households to

buy land and to build safer houses. Experts in disaster risk

reduction from Cordaid together with PEF also assisted the

displaced families in setting up community associations to

deal with the agencies that provide necessary public utilities

and permits.

Investing in MindanaoCordaid has worked with PEF on the Mindanao Partnership

Project for Peace (MP3) since 2008. Th is 100 million Philippine

pesos (USD 2.8 million)21 joint Cordaid-PEF fund invests in

microfi nance institutions and increasingly also in agri-based

social enterprises in Mindanao. It provides loans to coopera-

tives and strengthens them through capacity development and

business development services. In this fund, vulnerability to

climate change is also integrated into the operations. Torres

describes: “We have 27 active MP3 clients. Together with the

Ateneo de Davao University Tropical Institute for Climate

Studies, we are now training them to have a Disaster Risk

Reduction policy and plan of action.” In this way, PEF tries to

ensure that the jobs it helps create are not washed away with

the next fl ood. One of the MP3 clients is the Magpet Agro-

industrial Resources Cooperative (MAGIRCO), which processes

more than 40,000 kilos of bananas into unsweetened banana

chips on a daily basis. MAGIRCO is located in the confl ict region

of Mindanao, which makes it especially relevant as the

enterprise provides direct jobs for 120 people from local

villages, the majority of whom are women, and assures a

regular market for 1,600 banana farmers who are mostly from

indigenous communities. MAGIRCO is a good example of what

PEF envisages with its support for social enterprises: a business

that earns a profi t and fulfi ls a social mission too. Creating

local employment is MAGIRCO’s main impact, but the coopera-

tive also focuses on being socially and environmentally aware

in its production processes. Th e bananas are fried in locally

supplied coconut oil, using rice husks as fuel to heat the oil.

Th e more than 24,000 kilos per day of banana peels, are

transported back to the farms to be turned into organic

fertilizer. PEF has invested considerably in this enterprise

MP3 portfolio ▪ Size of fund: 98 million pesos (USD 2.2 million)

▪ Number of clients: 27 partner organizations that have

reached out directly to at least 5,000 households and

have created 600 jobs locally.

▪ Average size of loan: 5 million pesos (USD 113.715) for

cooperatives, 3 million pesos (USD 68.229) for NGOs

▪ Return on investment: 3 to 4%

▪ Repayment rate: above 90%


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 3: WAVF

19

In 2014, Cordaid obtained a 25% share in WAVF, a unique

investment fund for SMEs in Sierra Leone and Liberia.

WAVF was established in 2010 by the International Finance

Corporation (IFC), which is part of the World Bank Group and

encourages private sector development in developing countries.

Th e IFC usually invests in multi-million dollar projects; its

investment in WAVF refl ects the growing importance attrib-

uted to the role that SMEs play in creating jobs and fostering

inclusive economic growth. WAVF’s investments are between

USD 100,000 and 500,000. For entrepreneurs in the two

West-African countries, this size of capital is very diffi cult

to obtain from commercial banks, which impose interest

rates of over 20% on their clients and consider the overhead

and risks on such relatively small sums to be too signifi cant.

Additionally, commercial banks in these countries commonly

work with asset fi nancing rather than fi nancing based on the

assessment of viable business plans, which clearly limits the

opportunities for new entrants and start-ups.

In 2002, a decade-long violent civil war in Sierra Leone came to

an end. Th e war was a result of state collapse, extreme poverty

in rural areas and a clash between a younger generation that

lacked economic opportunities and an elite of elderly men that

ruled the country politically and economically. Sierra Leone’s

economy has grown at an average rate of 6% per year since the

end of the war and with a nascent democracy in place, the

country, though still extremely poor, is moving away from

fragile state status.22 Th e increasing political and economic

stability has improved Sierra Leone’s investment climate. Th e

country recently jumped from number 163 to 142 in the World

Bank’s Doing Business Index, making it one of the top reform-

ers of countries on the list.23 Investment has started to fl ow in,

boosting the mining sector in particular. Sierra Leone’s private

sector is highly dependent on large-scale investments in

extractives and agriculture. It is a skewed pyramid, with

a very broad base of 80% of all businesses in the country being

survival-oriented microenterprises.

CASE 3: WEST AFRICA VENTURE FUND (WAVF)INNOVATIVE FINANCE FOR SMEs IN SIERRA LEONE

INVESTING IN ENTREPRENEURSHIP IN SIERRA LEONE, CORDAID’S FOOTPRINT

Kenema

Bo

Makeni

Freetown(WAVF)

Liberia

GuinéeGuinée

Atlantic Ocean

Risk reduction

Women's economic

empowerment

Rule of law

Health

Education

Regulations

Banking &

Finance

Personnel


legislation


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 3: WAVF

20

problems. Th is approach proves to be much more eff ective than

sending an external expert round to check on the fi nancial

health of the company.” In addition to providing trained

personnel, WAVF invests a lot of time and eff ort in coaching

entrepreneurs and start-ups. Th is means taking a very hands-

on approach and walking them through all steps of the

business. “Many entrepreneurs are anxious to grow as fast as

they can,” says Dr. Oboh. “But in the long-term, it often pays to

pace growth so that you can manage it.”

Private equityWAVF chooses to be closely involved with the operations of its

investees. Th is fi ts with the type of fi nance it provides, private

equity. WAVF becomes a shareholder of the enterprises it

supports. In West Africa, this is a relatively new form of

fi nance. Oboh: “It was hard for investees to come to terms with

the concept of giving up a share in their business in exchange

for fi nance. With private equity, you don’t just provide funding

but are a partner in their business too. Th is means someone

will set demands and point out problems that the entrepreneur

may have overlooked. Entrepreneurs need time to adjust to

that. It’s not just a case of ‘give me the money and let me get on

with my business!’” And yet the close engagement of the Fund

that comes with the provision of private equity is a great

advantage in post-confl ict settings. It ensures a high degree of

knowledge transfer and capacity building, which is needed to

stimulate private sector development in fragile contexts.

In a country like Sierra Leone, Sascha Noé stresses, start-ups

and SMEs require specialized approaches. “WAVF is very

creative in off ering them tailor-made advice and services.

Together with the SME, they come up with ideas to make sure

that the investment is socially and fi nancially benefi cial to the

owner, the investor and often to the wider community too.”

An example of this is WAVF’s investment in the poultry sector

of Sierra Leone, which had been decimated by the civil war.

As a result, 90% of all the eggs and chickens consumed by the

population had to be imported from overseas until recently.

“Th e revival began in Freetown,” Dr. Oboh explains. “We helped

farmers with the investments needed for chicken feed and

chicks. Th at set the ball rolling and now some 400 farmers are

participating in what has become a community venture. It has

also led to wider social improvements, such as a water project

to supply the community with clean water. So in addition to

saving 2 million dollars in egg and chicken imports and

creating many jobs, the investment is also creating positive

eff ects throughout the community.”

Coaching entrepreneurs and start-ups means taking a very hands-on approach and walking them through all steps of the business.

Miracle treeBy providing private equity, WAVF becomes part owner of the

company of its investee. However, the original owner retains a

strong say regarding the future strategy of the company, as can

be shown by one of WAVF’s investees, the tea factory Morvigor

Ltd in Freetown. Th e company was founded and is led by Eva

Roberts, a trained medical doctor who lived in the United

Sharing a visionCordaid decided to invest in WAVF primarily because of its

target market segment. Providing fi nance to SMEs that by and

large have no access to capital is vital in post-confl ict settings

where SMEs play an important role in creating employment.

“ If you want fragile and post-confl ict areas to

stay stable, you need to make sure that the 25 to

45 year old age group has jobs. If they can earn a

decent living, they will be much less inclined to get

involved in criminal activities or to take up arms.”

Sascha Noé, Investment Manager at Cordaid

Second reason for Cordaid to invest in WAVF is that its operat-

ing principles coincide with Cordaid’s vision on how to stimu-

late entrepreneurship in fragile contexts. WAVF does not

simply give out equity or loans, but supports each and every one

of its investees with technical assistance and coaching. Noé:

“Th e intensive guidance that WAVF provides is vital for success

in countries such as Sierra Leone and Liberia.” Th e strict social,

environmental and governance selection criteria that WAVF

maintains, helps ensure that the investments ‘do no harm’.

Key fi gures WAVF ▪ Total size of the fund: USD 18 million

▪ 28 SMEs fi nanced to date

▪ USD 360,000 average investment

▪ 1,050 jobs created

▪ Cordaid share in WAVF: 25% or USD 4.5 million

Training the workforceA major bottleneck for the development of the SME sector in

Sierra Leone is the lack of access to capital. “Many people lost

their livelihoods during the war and were eager to start up

again once peace had fi nally returned,” says Dr. Anthony Oboh,

Fund Manager of WAVF. “However, the overall infrastructure

was bad and the fi nancial infrastructure in particular was

basically non-existent. So budding entrepreneurs with

promising ideas had nowhere to go for fi nance.”24 Other major

obstacles are the lack of technically skilled manpower and skill

gaps in basic numeracy, literacy and the command of English.

Work ethics are also a problem. Th e coping strategies that

people acquired during the years of violent confl ict – distrust-

ing others, fending for yourself, satisfying immediate needs

rather than working towards medium term goals – appear to

have made many workers lack basic work values such as

punctuality and service orientation.

WAVF has responded to the gaps in education by training a pool

of young men and women as fi nancial managers. Th e start-ups

and companies that WAVF invests in are obliged to include one

of these trained managers on their payroll. Sascha Noé: “Th is

has a double advantage: the investee is assured of good fi nan-

cial advice and management, while WAVF has eyes and ears in

the company and can thus respond very quickly in case of


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 3: WAVF

21

supermarkets all over Freetown and opportunities for export

to Germany look promising. When operating at full capacity,

the factory will employ 21 people, while the business provides

indirect employment to 500 people throughout the value

chain, including farmers and distributors. Eva Roberts made

it clear to WAVF from the start that, while grateful for the

capital, she is not interested in selling her company. Her

ambition is to buy back WAVF’s shares in the future and

remain a family company. To make this possible, they agreed

that Roberts’ part of the profi ts is not paid out but put aside as

savings to enable her to buy out WAVF in the future. A creative

solution that few mainstream equity funds would have been

eager to implement.

Kingdom during the war and returned to Sierra Leone in 2007

when business conditions began improving. Th e company is

one of the rapidly increasing number of businesses set up by

Sierra Leoneans from the diaspora. Th ese entrepreneurs, many

of them women, share several specifi c strengths. For example,

they are often well educated, have been exposed to Western

management principles and are less sensitive to pressures from

the extended family to share resources or give jobs to family

members. Th e Morvigor company processes herbal tea from the

leaves of the Moringa oleifera, dubbed ‘miracle tree’ in both

Africa and Asia because of its many health benefi ts. WAVF

has invested USD 265,000 in the company, which enabled it

to purchase a drying and packing facility necessary for tea

processing. Moringa tea is now available in shops and

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Morvigor Ltd tea factory in Freetown, Sierra Leone


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 4: INNOVATION: SOIL IN BAG

22

Small innovation, huge impactAs the soil bags are fi lled not only with sand, but with a mix

of seeds that can grow and fl ourish alongside the dikes, this

invention can change the practice of water management in

rural areas threatened by cyclones and seasonal fl oods. Initially

the concept was developed for the Dutch market. Th e fi rst

experiments took place at a testing site in the Netherlands,

which proved successful and spurred the interest of national

and international water management institutions. Cordaid

became aware of this innovative technological solution and

initiated consultations to introduce it to the fl ood-prone

regions of Bangladesh.

In the past, dike breaches in Bangladesh have caused salinization of the rice paddies from the resulting mix of fresh and salt seawater. Th is has destroyed villages’ rice yields, cutting seasonal income in times of fl ooding.

Gerdien Seegers elaborates: “We fi rst sought technical univer-

sities willing to cooperate on the pilot. Th eir academic valida-

tion was essential in pushing our eff orts forward. We then

ensured that our strategic partner in the fi eld, Caritas

Bangladesh, was willing to cooperate on this new challenge.

Working locally, Caritas was able to quickly select the most

viable testing sites, arranged the necessary permissions from

the Bangladesh Water Development Board, and engaged their

local engineers to reconstruct the sites in preparation for the

arrival of the soil bags.”

After consultations with local authorities and the involved

villages, the pilot started in Bangladesh in November 2013. In

the Netherlands, the bags are usually fi lled with the use of

machines. In Bangladesh, however, Caritas was able to hire

four hundred people from the adjacent villages to fi ll 40,000

locally produced jute bags with sand and local seed mixes. As

the jute bag is a product that requires minimal training and

has no need for expensive machinery, it proved an accessible

and cost-friendly solution, especially in such fragile areas.

Validating for changeTh e introduction of new technologies and ideas is not always

easy, however. Th e water management sector is long estab-

lished and works with techniques that have been tried and

tested. Introducing an alternative that diff ers from convention

Cordaid worked with Delft University of Technology and

Wageningen University to develop a pilot repairing damaged

dikes in Bangladesh using a biodegradable soil bag. Cordaid

partnered with the innovative Dutch company Green Soil Bag,

which introduced the idea of a jute bag fi lled with soil and a

mix of seeds as a cheap alternative to improve the quality of

damaged dikes. Th is innovation can off er great relief in fragile

contexts. “Th e bag has the advantages of being cheap and

accessible, the dike construction provides local jobs, and the

grass can be used as fodder for animals,” explains program

manager Gerdien Seegers.

Plastic sand bags are traditionally used to protect villages from

overfl owing dikes. However, the bags are often a hazard to the

environment and/or require heavy machinery and their related

costs. After the threats of fl oods have passed, the bags fi lled

with sand need to be cleared or would otherwise take years to

degrade, damaging the environment. Th e Dutch inventor Jean

Paul de Garde developed a bio-degradable soil bag that contin-

ues to protect fragile areas long after they have been stacked

one on top of the other: the sackcloth bag decomposes, the

roots of the grass seeds inside provide extra support to the

dikes, and the resulting grass can be utilized for various

purposes.

3. PARTNERING FOR INCLUSIVE BUSINESS

CASE 4: INNOVATION: SOIL IN A BAGINTRODUCING NEW WAYS OF ADDRESSING SOCIAL CHALLENGES

Ph

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Repair of embankment in Bangladesh


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 4: INNOVATION: SOIL IN BAG

23

The way forwardTh e initiative resulted in over 40,000 biodegradable bags being

placed along the southern delta region of Bangladesh, covering

an area of over 10,000 square meters of dikes, which protect

two villages against fl oods. Eight weeks after the placement of

the soil bags, grass grew two meters high on the dikes with

strong rooting. Following this initial successful pilot, new

projects have been planned with the Government of Bangladesh,

the Bangladesh Agricultural Research Institute (BARI), the

Bangladesh Water Management Board and the Institute of

Water Modeling. With the academic support of Delft University,

the next phase aims to provide the required validation for

scaling of the initiative across and beyond Bangladesh’s fl ood

prone regions, to countries such as Myanmar.

requires compelling evidence and the lobbying skills of local

organizations and government departments.

At the start, questions were raised whether this innovation

actually responded to an existing need. In addition, alternative

‘green’ solutions to fl ood prevention required new alliances and

methods. Th is is a shift that not all stakeholders are willing to

take without fi rm evidence and validation. Despite this, the

Dutch approach of ‘Building with Nature’25 has great potential

in fl ood prone regions and this type of eco-engineering is

starting to gain momentum in the fi eld. Th e involvement of

respected academic institutions, as well as the trusted reputa-

tion of Cordaid, helped to convince the stakeholders to take on

this challenge. P

ho

to C

ord

aid

Results of a dike construction with Green Soil Bags


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 5: CO-CREATION: THE BABYVIEWER

24

“ Th e collaboration with Cordaid makes it easier for us

to get an idea of people’s real and most urgent needs.

Th e organization has long-term experience and a

good reputation with mother and child projects as

well as a large network of trusted contacts in the

fi eld. A good relationship with the end users of a

product, in this case primarily nurses and midwives,

is important for the verifi cation of ideas and

concepts, and leads to the quickest and best results.”

Guido Geerts, Director Delft Imaging Systems

“Companies developing innovative products usually aim at the

western market fi rst, and then introduce an adjusted version

in Africa. However, our partner organizations in developing

countries and the clinics we support there are much better

served by medical equipment that has been specifi cally

designed for them,” says Nathalie Popken. Th is was the very

reason for linking up with DIS: the company focuses primarily

on markets in developing countries and takes local needs as

the starting point for product development. Th e partnership

also has important advantages for DIS.

CASE 5: CO-CREATION: THE BABYVIEWER BRINGING TOGETHER VESTED STAKEHOLDERS

Th e lack of access to health care seriously aff ects the life chances

of mothers and their newborns in the fragile contexts where

Cordaid works. In fragile regions of Afghanistan and the

Democratic Republic of Congo for instance, only a minority of

pregnant women have access to antenatal care. Health facilities

are either too far away, too expensive, destroyed by gunfi re or

corruption, or inaccessible due to unsafe roads. “Every day, 800

women worldwide die due to complications during pregnancy

and delivery,” says Nathalie Popken, Business Development

Manager at Cordaid. “99% of these deaths occur in developing

countries, in particular in remote areas. Th e knowledge and

technology to prevent these deaths exists, but the diffi culty is

ensuring women’s access to aff ordable and quality care.”

Local needs are the starting pointDuring a Dutch trade mission to Ghana in April 2013, Cordaid

staff met with the director of Delft Imaging Systems (DIS), a

Dutch company working on medical imaging systems and

e-Health software. Soon after, the two parties joined hands

with a concrete project in mind, to develop portable ultrasound

equipment. Ultrasound is an eff ective solution for identifying

complications and risk factors during pregnancy. Cordaid and

DIS realized that if they were to off er a useful technology for

remote and fragile areas, three criteria needed to be met: fi rst,

the technology needed to be low-cost; second, in order to bring

care closer to people it needed to be mobile; and third, given the

lack of professional health personnel in such areas, it needed to

be robust and easy to use.

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Co

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A minority of women in fragile regions have access to antenatal care


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTSCASE 5: CO-CREATION: THE BABYVIEWER

25

On to the marketBefore product development started, Cordaid conducted a

feasibility study in northern Ghana in cooperation with a

Dutch consultancy fi rm. Th is involved a market survey and

interviews with gynecologists, midwives and medical assis-

tants. Th e assessment clearly showed the potential of integrat-

ing the innovative ultrasound technology into the existing

health system to improve obstetric health care. Costs are an

important factor: while the ultrasound technology used in

hospitals across the world costs between US$10,000 and

100,000, this device can be manufactured for as little as

US$500. Now that the prototype hardware and software are

ready, the next step will be the pre-clinical testing of what has

been dubbed the ‘Babyviewer’. Th is will take place in Ghana,

Malawi or Ethiopia in late 2014. Th irty devices will be produced

for this testing phase, which is to gather valuable information

for improvements to the technology. If all goes well, DIS and

Cordaid will establish a social venture to bring the Babyviewer

to the market, which potentially includes any country in the

world where access to antenatal care for pregnant women is

hampered by poverty or fragility. DIS will be responsible for

marketing, selling and delivering the Babyviewer, while

Cordaid will complement these eff orts by also making use of its

own distribution channels. Cordaid’s primary role in the social

venture will be to maximize the social impact of the technol-

ogy. “Up-scaling the use of the Babyviewer to earn back the

development costs is important,” says Popken, “but it is more

important for Cordaid to make sure that the fi nal product suits

the exact needs of the users because only then will it have the

desired impact: the early detection of prenatal complications

and the prevention of unnecessary deaths.”

Smart innovation for easy use DIS had contacts with researchers at the School of Electrical

and Electronic Engineering at Newcastle University, who had

developed a prototype of a low-cost, portable ultrasound probe

in 2011. Th e device is roughly the size of a computer mouse and

works in a similar way to existing ultrasound scanners, i.e. it

uses pulses of high frequency sound to build up a picture of the

fetus or unborn child. Th e USB device can be plugged into any

computer or tablet to show these pictures on the screen. Due to

its size, it is very suitable for use in remote and sparsely

populated areas: health workers can easily carry the device

with them while visiting pregnant women. Taking this

prototype probe as the starting point, DIS has been working on

developing suitable software together with the Diagnostic

Image Analysis Group (DIAG) at the Radboud University

Nijmegen in the Netherlands and Fraunhofer MEVIS in

Germany. Th e Computer Vision software package that has been

developed can automatically detect the gestational age of a

fetus from the ultrasound image. With most ultrasound

technology, this requires the user to freeze the image and set

markers with a cursor on the femur and head of the fetus, after

which the computer calculates the gestational age. “Th e fact

that the novel software does not require this human interven-

tion makes it easy to use,” says Popken. “Midwives and birth

attendants can use the device eff ectively with a minimum of

training, which is very relevant for the contexts where Cordaid

works.” Researchers at DIAG and Fraunhofer MEVIS are

currently investigating more challenging computer aided

diagnostic (CAD) algorithms for the automatic detection of

prevalent risk factors associated with the large number of

maternal and neonatal deaths such as breech, multiple

gestations and placenta previa. If successful, these will be

integrated into the software.

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BABYVIEWER


ENTREPRENEURS: FOSTERING ECONOMIC OPPORTUNITIES IN FRAGILE CONTEXTS CASE 6: SOCIAL VENTURE: URBAN LINK

26

idea of setting up a recruitment agency was born: a social

venture where ambitious young people are matched with

employers in search for a reliable workforce. “However, the

pilot taught us that the only way this initiative could become

fi nancially independent, was by transforming it into a com-

mercialy viable, yet social recruitment and selection agency”,

says Inge Bouwmans, Program Expert Urban Matters at Cordaid.

Africa’s youth population will double in the next 30 years from 200 million to 400 million people.

Matching slum CVs with multinationalsUrban Link moves beyond the traditional approach of vocation-

al training programs by organizing job opportunities for young

people with ‘slum CVs’ at international corporations. Often

traditional courses allow for personal growth and skill en-

hancement but are rarely connected to professional develop-

ment goals or opportunities on the real job market. Local Urban

Link coordinator Teshome Shibru explains his organization’s

approach. “Youngsters leave the course with a new skills set,

but are then challenged in fi nding a matching job. In essence,

Cordaid wishes to focus less on training the ‘many’, but on

building career opportunities for the motivated.”

Recruitment of the young working population is conducted in

close cooperation with community-based organizations such

as churches and community projects dealing with the urban

youth. Th ese long-standing partners of Cordaid know the

community well. Th ey help to identify those young ‘achievers’

who want to invest in themselves and who can become role

models for others once they have obtained a good job.

Booming Addis Ethiopia is characterized by a promising investment

climate and Addis Ababa is a fertile starting ground for

Urban Link due to its regional hub status for international

companies seeking local employees. In a market scan,

multinationals such as Heineken and international SMEs

dealing with agro-products, indicated the need for reliable

staff and were willing to invest in local personnel that were

motivated, coached and fi tted their requirements. In

addition, they realized that working with a recruitment

agency operating as a social enterprise would add value

to their own local business model and would strengthen

their own license to operate.

Triple Win Urban Link does not try to serve a single purpose, but aims to

meet a demand from various angles: creating employment

opportunities for an emerging young population, satisfying

market demand for a motivated workforce. By modeling this

In Ethiopia’s capital city, Addis Ababa, 60% of people between 15

and 24 years old are unemployed and cannot meet basic living

standards. Th e main cause of these high unemployment

numbers among the city’s youth is the missing link between

the capacities of young people and the requirements of local

employers. Cordaid identifi ed a growing demand for skilled

and motivated employees, and has introduced the social

venture “Urban Link” as a response to a problem that is

common in many fast growing cities across the globe. With

Addis Ababa’s fi rst recruitment agency of its kind, Cordaid aims

to match urban youth with employers to help them get a job,

hold on to it, and build a career.

The launch of an ideaTh e idea for Urban Link did not have its origins in Ethiopia but

in Cape Town, South Africa. Here, Cordaid worked closely with

community-based organizations in the informal urban

settlements and, together with the multinational Virgin,

started a project to off er employment opportunities to the local

youth. With the support of the EU, an initiative was launched

that focused on providing young people with internships, in

this case at Virgin’s sports studios, while off ering them formal

training in skills they lack that they might require for future

job opportunities. Motivated young people were recruited from

the urban slums and the pilot resulted in the foundation of a

Sports Academy where personal fi tness trainers were schooled

and matched with potential employers.

Cordaid knew there was an abundant supply of youngsters

motivated and willing to move forward from its previous

experiences of working in city slums, and with youth and

church organizations. Over the years, Cordaid also learned that

addressing youth unemployment pays off . It was merely a

matter of fi nding an entry-point to bridge the gap between

supply and demand. Th e Cape Town pilot was a success and the

CASE 6: SOCIAL VENTURE: URBAN LINKIDENTIFYING GAPS IN THE MARKET AND SUPPORTING IMPACT DRIVEN ENTERPRISES

Ph

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Co

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Unemployed youth in Addis Ababa, Ethiopia



27

ambitions”, says Teshome Shibru. Young people are easily

tempted to switch jobs when off ered a higher pay at another

company. “Urban Link tries to convince companies to give us

the responsibility to motivate their workforce.”

“ We convince companies to throw away their stick

and focus on the carrot instead”

Teshome Shibru, Urban Link coordinator Cordaid Ethiopia

With Urban Link, Cordaid started a social venture that can

reach scale and can be replicated in other countries where

Cordaid works to fi ght youth unemployment. Th e fi rst market

scans in countries as diverse as Haiti, El Salvador and Kenya are

being prepared.

recruitment agency as a social enterprise that is fi nancially

sustainable and even profi table, it fi lls a gap in the market.

Cordaid not only matches young people to jobs but also shows

them the advantages of a long-term commitment . By focusing

on three tiers of the job cycle (getting a job, keeping a job and

growing in a job), Urban Link helps them to improve their

livelihoods. By having a job and contributing to society, young

people will have a more meaningful life and will be less

inclined to engage in harmful activities such as substance

abuse and delinquency. In the end, community members will

experience that their youth are a valuable asset in their

community, rather than a nuisance. In the long term, Urban

Link helps to increase social cohesion in urban settlements.

For companies, the benefi t is clear as using the services of

Urban Link helps to prevent high staff turnover. “Some

companies say that they are not making any profi ts because of

their current workforce that has little motivation and no



28

11 World Development Report 2013, Jobs http://siteresources.worldbank.org/EXTNWDR2013/Resources/8258024-1320950747192/8260293-1322665883147/WDR_2013_Report.pdf

12 african Development Bank, http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Ending_Conflict_and_Building_Peace_in_africa-_a_Call_to_action.pdf; WDR 2012, Gender equality and development.

https://siteresources.worldbank.org/INTWDR2012/Resources/7778105-1299699968583/7786210-1315936222006/Complete-Report.pdf

13 United Nations, a new global partnership: eradicate poverty and transform economies through sustainable development. The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development agenda. New York 2013; http://www.un.org/sg/management/pdf/HLP_P2015_Report.pdf

14 The World Bank describes inclusive business as “... Inclusive business models are helping companies turn underserved populations into dynamic consumer markets and diverse new sources of supply. In the process, companies are developing product, service, and business model innovations with the potential to tip the scales of competitive advantage in more established markets as well.” from IFC, accelerating Inclusive Business Opportunities, 2011 (p.2)

15 UNDP, Creating Value for all: Strategies for Doing Business with the Poor, 2008 (p2.) http://growinginclusivemarkets.org/media/gimlaunch/Report_2008/GIM%20Report%20Final%20august%202008.pdf

16 Prahalad, C. K. (2006) The Fortune at the Bottom of the Pyramid. Pearson Education, Upper Sadle River NJ. http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf

17 Porter, Michael and Mark Kramer, Creating Shared Value. Harvard Business Review. January/February 2011. http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf

18 In October 2013, the Framework agreement (FaB) was signed by the Government of the Philippines and the MILF. In March 2014, the Comprehensive agreement of the Bangsamoro (CaB) was signed, which includes the FaB and four annexes, i.e. revenue and wealth sharing; power sharing; transitional arrangements; and normalization

19 The MPC is a broad network of grassroots organizations and NGOs in Mindanao that is in the forefront of accompanying the peace process between the MILF and the Government of the Philippines.

20 Exchange rate September 2014.

21 Exchange rate September 2014.

22 Sierra Leone ranks 177 out of 187 on the Human Development Index of Human Development Report 2013 http://hdr.undp.org/en/2013-report. It is unlikely to meet any of the Millennium Development Goals (MDGs) before 2015.

23 http://www.doingbusiness.org/data/exploreeconomies/sierra-leone/.

24 This and other quotes by Dr. Oboh are taken from an article by Karen Jochems published at http://www.upsides.com/interview/business-partners-just-financiers/

25 de Vriend, Huib et al (2014) ‘Building with nature’: the new Dutch approach to coastal and river works. Proceedings of the ICE – Civil Engineering, 167(1): 18-24

1 The UN Open Working Group developed the Zero Draft listing 17 Sustainable Development Goals to be attained by 2030. The 16th proposed goal relates to fragile states: “achieve peaceful and inclusive societies, access to justice for all, and effective and capable institutions”. http://sustainabledevelopment.un.org/focussdgs.html The UN High-Level Panel of Eminent Persons on the Post-2015 Development agenda proposed twelve goals, of which goal 11 is ‘Ensure stable and peaceful societies’; http://www.un.org/sg/management/pdf/HLP_P2015_Report.pdf. Cordaid stresses that it is of eminent importance that the Post-2015 agenda mainstreams and integrates matters of peace, security, stability and people’s safety across the whole framework. Introducing a specific goal on peaceful societies is vital but not enough; https://www.cordaid.org/en/publications/focus-fragility/

2 World Bank, World Development Report 2011. Conflict, Security and Development. Washington 2011. http://siteresources.worldbank.org/INTWDRS/Resources/WDR2011_Full_Text.pdf

3 OECD, Fragile States 2013. Resource flows and trends in a shifting world. Paris, 2012. http://www.oecd.org/dac/incaf/FragileStates2013.pdf

4 Cordaid, Focus on Fragility. Position paper, The Hague, November 2013. http://eudevdays.eu/sites/default/files/Cordaid_position_FocusonFragility_new.pdf

5 This is how Cordaid defines fragility. Other often used definitions of fragility for instance include the OECD’s definition: “A fragile region or state has weak capacity to carry out basic governance functions, and lacks the ability to develop mutually constructive relations with society. Fragile states are also more vulnerable to internal or external shocks such as economic crises or natural disasters. More resilient states exhibit the capacity and legitimacy of governing a population and its territory. They can manage and adapt to changing social needs and expectations, shifts in elite and other political agreements, and growing institutional complexity. Fragility and resilience should be seen as shifting points along a spectrum” (OECD 2012, Fragile states 2013: Resource flows and trends in a shifting world).

6 African Development Bank, 2014, Ending conflict & building peace in Africa: a call to action. High Level Panel on Fragile States, p.17 http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Ending_Conflict_and_Building_Peace_in_africa-_a_Call_to_action.pdf

7 World Bank, World Development Report 2011. Conflict, Security and Development. Washington 2011; World Bank, World Development Report 2013, Jobs, Washington 2013; http://siteresources.worldbank.org/INTWDRS/Resources/WDR2011_Full_Text.pdf OECD, Fragile States 2013. Resource flows and trends in shifting world. Paris, 2012; European Commission, a Stronger Role of the Private Sector in achieving Inclusive and Sustainable Growth in Developing Countries, Brussels, 13 May 2014 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52014DC0263&qid=1400681732387&from=EN

8 The IDPS is comprised of the g7+ group of 19 fragile and conflict-affected countries, development partners and international organizations. Cordaid hosts the global secretariat of the Civil Society Platform for Peacebuilding and Statebuilding (CSPPS).

9 The other four PSGs are: Legitimate Politics, Security, Justice, and Revenues & Services. http://www.newdeal4peace.org/wp-content/uploads/2013/01/new-deal-for-engagement-in-fragile-states-en.pdf

10 https://www.census.gov/population/international/data/idb/informationGateway.php

NOTES

http://siteresources.worldbank.org/EXTNWDR2013/Resources/8258024-1320950747192/8260293-1322665883147/WDR_2013_Report.pdf



http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/Ending_Conflict_and_Building_Peace_in_Africa-_A_Call_to_Action.pdf






http://www.un.org/sg/management/pdf/HLP_P2015_Report.pdf

http://growinginclusivemarkets.org/media/gimlaunch/Report_2008/GIM%20Report%20Final%20August%202008.pdf

http://growinginclusivemarkets.org/media/gimlaunch/Report_2008/GIM%20Report%20Final%20August%202008.pdf

http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf

http://www.cs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf

http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf

http://www.waterhealth.com/sites/default/files/Harvard_Buiness_Review_Shared_Value.pdf

http://hdr.undp.org/en/2013-report

http://www.doingbusiness.org/data/exploreeconomies/sierra-leone/

http://www.upsides.com/interview/business-partners-just-financiers/

http://www.upsides.com/interview/business-partners-just-financiers/

http://sustainabledevelopment.un.org/focussdgs.html

http://sustainabledevelopment.un.org/focussdgs.html



https://www.cordaid.org/en/publications/focus-fragility/

https://www.cordaid.org/en/publications/focus-fragility/

http://siteresources.worldbank.org/INTWDRS/Resources/WDR2011_Full_Text.pdf


http://www.oecd.org/dac/incaf/FragileStates2013.pdf

http://eudevdays.eu/sites/default/files/Cordaid_position_FocusonFragility_new.pdf






http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52014DC0263&qid=1400681732387&from=EN

http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX%3A52014DC0263&qid=1400681732387&from=EN

http://www.newdeal4peace.org/wp-content/uploads/2013/01/new-deal-for-engagement-in-fragile-states-en.pdf

http://www.newdeal4peace.org/wp-content/uploads/2013/01/new-deal-for-engagement-in-fragile-states-en.pdf

https://www.census.gov/population/international/data/idb/informationGateway.php

CARE.ACT.SHARE.LIKE CORDAID.

about cordaid

Cordaid is based in the

Netherlands and has country

offi ces in 11 countries. It has

been fi ghting poverty and

exclusion in the world’s most

fragile societies and confl ict-

stricken area’s for a century. It

delivers innovative solutions

to complex problems by

emphasizing sustainability

and performance in projects

that tackle security and

justice, health and economic

opportunity. Cordaid is deeply

rooted in the Dutch society

with more than 300,000

private donors. Cordaid is a

founding member of Caritas

Internationalis and CIDSE.

contact

Ingrid Hagen

Director Corporate Strategy

[email protected]

Laure Wessemius-Chibrac

Director Investments

[email protected]

Peter van Poortvliet

Director Entrepreneurship

[email protected]

Cordaid the Netherlands

Lutherse Burgwal 10

2512 CB Th e Hague

+31(0)70-31 36 300

www.cordaid.org