sida approach to sustainable business in developing countries

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SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY

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Presented as part of the seminar: Can mobile phones improve agricultural productivity, resilience and food security? 29th May 2012, 08.30 - 12.30 Hörsalen, Sida, Valhallavägen 199, Stockholm Anne-Charlotte Malm, Senior Adviser B4D and Coordinator ICT4D Private sector is growing in developing countries. More and more international companies are turning towards the developing world and the flow of private capital has increased during the past 10 years. Development cooperation agencies like Sida is seeking cooperation with the private sector to leverage the financial support from development assistance with private capital and to make business actors contribute to the goals of development cooperation. This presentation will describe the different instruments Sida uses for cooperation with the private sector and give some examples of ongoing projects. It will also describe how Sida supports capacity development within ICT4D.

TRANSCRIPT

Page 1: Sida approach to sustainable business in developing countries

SWEDISH INTERNATIONAL

DEVELOPMENT

COOPERATION AGENCY

Page 2: Sida approach to sustainable business in developing countries

The overall goal of Swedish Development Cooperation is

to:

“contribute to creating conditions for people in poverty to

be able to improve their lives”

Sida works according to

directives from the Swedish

Parliament and Government

Page 3: Sida approach to sustainable business in developing countries

Government Universities

Civil society

Free media

Business

Page 4: Sida approach to sustainable business in developing countries

In the last 20 years most of Sida’s cooperation countries have shifted to market economy

In a market economy the private sector is the engine of growth and employment creation

The Private Sector

Page 5: Sida approach to sustainable business in developing countries

FÖRDELNING PRODUKTIVA

TILLGÅNGAR

PRIVATE

SECTOR

MARKETS

FINANCIAL

SERVICES

SKILLED HUMAN

RESOURCES

RULES AND

REGULATIONS

INFRASTRUCTURE

HEALTH

PEACE AND

SECURITY

MACRO

ECONOMY

DEMOCRATIC

GOVERNANCE

EDUCATION

RESEARCH AND

INNOVATION

GLOBAL AND

REGIONAL TRADE

Page 6: Sida approach to sustainable business in developing countries

Market Development and B4D

MD: Private Sector Facilitation

B4D: Private Sector Collaboration

Point of departure for MD: the Market System

Point of departure for B4D: the Market Player

MD: Trade and Private Sector Development (incl financial sector)

B4D: A set of instruments for direct private sector collaboration

Page 7: Sida approach to sustainable business in developing countries

Objective B4D –

private actors that effectively contribute to the

objectives of international development

cooperation

Objective ICT4D –

good skills and high capacity among various

actors to facilitate the effective use of, and access

to ICT4D

Page 8: Sida approach to sustainable business in developing countries

To achieve the ICT4D objectives, Sida

is to:

• Provide support to strategic ICT4D

activities with an inovative approach.

Access to, and the use of, new

technology by women and girls in

particular should be highlighted

Page 9: Sida approach to sustainable business in developing countries

Sida’s B4D

instruments/methods

• Private public partnership

• Challenge funds

• Drivers of Change

• Innovative Financing

Page 10: Sida approach to sustainable business in developing countries

Partnerships Bring Value

10

Business

Interests

Sidas

Development

Goals

Partnership

Opportunity

Page 11: Sida approach to sustainable business in developing countries

Sida’s Private Public Partnerships

A company initiates & specifies

Program implemented

by UN or NGO

Sida

Partner Countries Ministries

Partnerships Complementing components

- Where?

- What?

Other local

stakeholders

Financial

contribution

50 %

Dialogue &

Ownership

Page 12: Sida approach to sustainable business in developing countries

Challenge funds

• Companies and entrepreneurs are

invited to apply for catalytic funds

in competition, in accordance with

a number if pre-defined selection

criteria.

Page 13: Sida approach to sustainable business in developing countries

Innovations Against

Poverty

Page 14: Sida approach to sustainable business in developing countries

“Just as the private sector is critical to the future of the

developing world, the developing world is critical to the future of big business. Four out of five consumers live there.”

UNDP

Innovations Against

Poverty Innovation Against Poverty

Business for Development

Page 15: Sida approach to sustainable business in developing countries

Innovation against poverty

• First launch – 157 applications from 25 countries

– 21 grants (12 small, 9 big)

• Second launch – 236 applications from 45 countries

– 17 grants (5 small, 12 big)

Page 16: Sida approach to sustainable business in developing countries

Examples

• Backpack Farm Agri (Kenya, South Sudan)

• Solar water pumping (Egypt, Jordand, South S)

• Mobile phone payment service (Ethiopia)

• Preventive weather forecasting (Ghana)

• Portable ultrasound for pregnant women in rural

areas

• Plastic recycling

• Callcenters – Health

• Pedal-driven energy creation

• Farm Business Advisors – new markets

Page 17: Sida approach to sustainable business in developing countries

Drivers of Change

Watchdogs Swedwatch

Market Transformation Initiative

Business Call to Action

Page 18: Sida approach to sustainable business in developing countries

Innovative Financing

Innovative financing aims at mobilizing capital resources

from the private sector.

Page 19: Sida approach to sustainable business in developing countries

ICT4D-activities

• Statistics and women entrepreneurs,

UNCTAD/ILO

• Governance Afghanistan, UNDP

• Seed Alliance, Challenge Fund

• mLabs – Infodev

• Mobile money for the poor – UNCDF

• Empowering Local Radio, Tanzania, UNESCO

• Training CSO

Page 20: Sida approach to sustainable business in developing countries

Mobile Money for Poor

(MM4P)

Background:

• 2.7 billion no access to formal savings, transactions or credit accounts

• UNCDF’s focus countries 90% of the working age adults have no access

to financial services. Women and youth are traditionally further excluded.

• Services like M-pesa in Kenya have shown that also poor people will use

these services if they are developed viable

MM4P:

Scalable and replicable mobile money projects for financial services to low-

income persons, small and microenterprises, including women and those in

rural and remote areas.

Page 21: Sida approach to sustainable business in developing countries

ICT4D through Regional

Challenge Funds

• Collaboration by the Regional Internet Registries (RIRs) for Asia/Pacific,

Africa and Latin America.

• Provides small grants (10 000 – 30 000 USD) and awards (3 000 – 5 000

USD)

• Small grants = small consequences of failure room for innovation.

• Focus on sustainable business models where a purely market-driven

model is unlrealistic or inappropriate.

• Targets both private sector and not for profit organisations

• Recipients of grants can apply for various capacity development tools

(online training, consultants, internships) and networking options

(participation in IGF)

Page 22: Sida approach to sustainable business in developing countries

Mobile innovation for

development - mLabs

• Open spaces where mobile application developers can interact, work

and gain access to tools and expertise to assist in the creation of viable

mobile application businesses.

• Acts as gateways to local, regional and international markets, connects

local entrepreneurs with seed, venture and angel investors.

• Most well-known mLab is *iHub_ in Kenya. Others include South Africa,

Viet Nam, Pakistan, Nepal and Armenia. More locations to come.

• Many African innovations related to agriculture: iCow, Mfarm, FarmPal,

Mkulima Calc. etc.

Page 23: Sida approach to sustainable business in developing countries

Course ICT for Development (ICT4D)

in democracy, education and health

Training course targeted at CSOs

supported by Sida

The course aims to assist Swedish CSOs to understand how

ICT4D can be an integrated part of their activities, and to

practically plan and implement strategic interventions.

Page 24: Sida approach to sustainable business in developing countries

Division of Labour Sida

Embassies

Regional departments

Global/B4D-ICT4D