Alice Ruhweza Team Leader, UNDP Global Environment Finance Unit -Africa

OECD/DCED Workshop on Engaging the Private Sector for Green Growth and

Climate Change 1st March 2016

Partnering with the Private Sector to promote Sustainable Forest

Management and Enhance Natural Capital

Development Context

Year 2015: Sendai, AAAA, SDGs, COP21, WHS 2016

2000 - 2015

2016 - 2030

Role of the private sector

Charity

CSR

Core business

UNDP’s Private Sector Strategy

The Private sector becomes a transformative

partner in development

Enabling

environment

for

sustainable

and inclusive

business

Strategic

alignment

of the

private

sector with

the SDGs

Productive

capacities,

inclusive

business,

and value

chains

Crisis

resilience

and

recovery

1

2 3

4

Istanbul International Center for Private Sector in Development

VISION: To become the leading global

research and advisory institution and a

centre of excellence for private sector

engagement in development to empower

lives.

MISSION: To conduct research, conduct

advocacy and contribute to public-private

dialogue, knowledge development and

management, internationally agreed

development goals, partnerships and

capacity building for inclusive growth and

market solutions to poverty, exclusion

and inequality based on the latest

thinking, best practices and comparative

experiences.

Inclusive

business

models

Skills

development

Impact

investment

Resilience

building

against crises

Thematic area 1 Thematic area 2

Thematic area 3 Proposed thematic area 4

Africa Facility for Inclusive

Markets (AFIM):

Towards Sustainable and

Resilient Food Value Chains

UNDP Regional Service Center for Africa

Why the Africa Facility for Inclusive Markets?

• Launched in 2010 to demonstrate how the private sector could significantly contribute to human development by including the poor, marginalised communities (e.g women, youth, small family businesses etc) in the value chain as consumers, producers, business owners or employees (‘inclusive business models’)

• The model of inclusive business implies that efforts are made to address the major constraints and opportunities faced by marginalized communities at multiple levels within a given value chain.

Why AFIM - continued

• To recognise the poor or marginalised

communities as key participants in informal

and formal markets:

• As producers – they produce inputs and

sell their products

• As labor market participants –

employment

• As consumers – they buy their food

requirements and other consumption goods

The AFIM Value Chain approach

Inputs supply

•Provide equipment, seeds, fertilizers, pesticides, etc

Production

•Grow, harvest, produce the primary stage

Transformation

•Classify, Process, Pack

Trade

•Transport, Distribute, Sell

Specific input

providers

Farmers, primary

producers

Packers, Agro-

industry Traders

Categories of operators in value chains and their relations

Consumption

Consumers (the Market)

The Systems Approach to value chains

02-Mar-2016 9

The Sustainable and Resilient Value chain

approach

• Selection of the value chain

• Identification of key environmental impact of current

practices and key climate risks along the entire

value chain

• Selection of the most effective environment and

climate interventions

• Targeting those most vulnerable to environmental

impacts and climate risks

• Use product facilitation platforms as mechanisms for

scaling-up

02-Mar-2016 OECD/DCED workshop 10

Example: Regional value chain development

• AU/COMESA/NEPAD: interest in regional agri-

food value chains upgrading for regional integration

with private sector engagement and development

• Objective: remove key bottlenecks in selected

agro-food regional value chains leading to 1) a

more inclusive value chain, 2) an upgraded and

more competitive value chain, 3) greater regional

integration

• Targets and beneficiaries: smallholders, SMEs,

off-takers, RECs and their member states

March 1, 2016 Oecd/dced workshop 11

Catalytic grant process

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Apply

• Open request for project proposals (RFP)

• Review and short listing of the proposals based on their potential evaluated against a predefined criteria*

Refine

• Present the proposal in a Project Facilitation Platform (PFP) to UNDP COs, RECs, private sector, and other partners

• Incorporate the feedback from all the stakeholders and improve the plan

Select

• The best proposals are presented to the UNDP Micro-Capital Grant Committee

• Include any further comments from the committee in the proposal and sign agreement

Implement

• Start the field level implementation

• Continuous technical assistance by AFIM to strengthen the project

Monitor • Quarterly reporting and monitoring of the results

Very specific and targeted project selection

criteria

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 13

Key achievements

Aiming at creating job and increasing incomes in order to reduce poverty. The target numbers

and countries are based on USD150,000 Micro-Capital Grant per project in one year

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 14

SORGHUM Countries: Kenya and Tanzania Target: 2,000 smallholder farmers Objective: Accelerating commercialization and regional trade in sorghum

DAIRY Countries: Kenya and Uganda Target: 4,000 smallholder farmers Objective: Building local extension services

MANGO Countries: Burkina Faso, Cote d’Ivoire, Ghana, Mali Target: 2,000 producers and other value chain actors and 80 SMEs Objective: Improve productivity/quality and increased capacity of the value chain actors in harvesting and post-harvesting practices

ONION Countries: Ghana and Burkina Faso Target: 2,500 producers and value chain actors Objective: Increasing production of onions and productivity of onion value chain actors

= over 11,000 beneficiaries in year 1

GROUNDNUT Countries: Zambia and Malawi Target: 2,500 smallholder farmers Objective: Improving production and access to markets through quality management systems

SOYA BEAN Countries: Mozambique and Malawi Target: 2,000 smallholder farmers Objective: Improve productivity through mechanization of production

NEW! Mainstreaming sustainability and

resilience in food value chains

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 15

Fostering Sustainability and Resilience for Food

Security in Sub Saharan Africa (Ethiopia)

• Systems approach to addressing food insecurity • Recognising the complex network of causes • Untangle the complexity -Focus on root causes and

distinguish cases where transformational change is needed from those where smaller improvements could suffice.

• Multi-stakeholder platforms – G8 Alliance for Food

security and Nutrition

• Develop and test a toolkit for mainstreaming

resilience and sustainability in food value chains

Mainstreaming sustainability and resilience in

commodity supply chains

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 16

Green commodities programme- multi-stakeholder collaboration and effective national enabling environments. • National Commodity Platforms (NCPs) – to institutionalize the

long-term sustainability commodities at a national level; • National PPPs – to address the root causes of the negative

environmental, social and economic impacts of commodities; • Technical services –policy reform extensions systems, agricultural

commodity supply chains and REDD+; • Learning from action –knowledge sharing opportunities between

UNDP practitioners aiming to improve agricultural commodity supply chains worldwide;

• Global engagement and dialogue – to develop key relationships with partners, especially the private sector and governments

• NEW! Taking Deforestation out of Commodity Supply Chains- GEF UNDP, WB, WWF-US, CI, IADB and UNEP) -- reduce deforestation impacts due to growing supply and demand of palm oil, soy and beef

• Approach: Increase demand, address supply side constraints, improve enabling environment

• UNREDD- Joint UN Programme to reduce emissions from deforestation and forest degradation – Private sector as buyers of credits, land owners..etc

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 17

Mainstreaming Biodiversity and Ecosystem

Services into the oil and gas sector

• Oil and Gas companies need to avoid, minimize, restore and finally to offset and or compensate for the residual impacts of their operations on biodiversity

• Total Uganda –awarded a block in Murchison National Park -area where most significant biodiversity exists

• Need to understand the cumulative cost of impacts on biodiversity

• Need an aggregate offset to provide simultaneous solutions for several companies’ impacts, reduce the transaction costs for companies of designing and implementing offsets, as many of these costs can be shared

• Need to build awareness of the regulators (especially the ministry of energy) and enabling environment

02-Mar-2016 OECD/DCED workshop) 18

Challenges

• Low demand for green approach- sustainability not always criterion

• Very high Transaction costs: Unorganised farmers-remote rural areas

• Capacity - level of capabilities and resources

• Limited impact assessments and mixed impact results

- Current PPPs not fully inclusive – not enough involvement of small holder farmers, women groups, CSOs

- There is a marked imbalance between where money is

invested and where it is needed – e.g little or no alignment of broader CAADP support to national regional investment plans.

- Incentives and interests not always aligned - Bilateral assistance shaped by priorities put forward by Ministries of Finance or Planning and by development partners’ own priorities- not always in line with NAIPs

02-Mar-2016 African Facility for Inclusive Markets (AFIM) 19

THANK YOU

THANK YOU

20

http://www.undp.org/africa/privatesector http://www.undp.org/content/undp/en/home/ourwork/environ

mentandenergy/projects_and_initiatives/green-commodities-programme.html

https://www.thegef.org/gef/IAP-commodities