african facility for inclusive markets (afim)
TRANSCRIPT
Introduction
The United Nations Development Programme’s (UNDP)
African Facility for Inclusive Markets (AFIM) is working
to reduce poverty and accelerate progress toward
the Millennium Development Goals (MDGs) by supportin
pro-poor economic growth and inclusive market development
(IMD) across Sub-Saharan Africa.
AFIM’s strategy is to provide low income
tools and resources to lift themselves out of poverty
private sector initiatives at the regional and
The activities target low income people earning
dollars a day to include them into value chains
employees, producers, entrepreneurs and distributors
As part of UNDP’s Regional Bureau for Africa (RBA)
facility builds on the work of regional and
sector initiatives in over 20 countries including
Burkina Faso, Ethiopia, Kenya, Malawi,
Mozambique, Nigeria, Uganda, Tanzania.
AFIM also facilitates knowledge sharing, access to finance,
and the dissemination of best practices in private sector led
market-driven solutions to poverty reduction, environmental
sustainability, post-conflict recovery and gender equality.
African Facility for
Inclusive Markets (AFIM)Business can turn Poverty into Prosperity
AFIM has its main office in Johannesburg and will
office in Dakar in 2012 (shown in the map in red).
Over 20 country offices are implementing private sector initiatives
and additional countries are starting activities
United Nations Development Programme’s (UNDP)
(AFIM) is working
accelerate progress towards
the Millennium Development Goals (MDGs) by supporting
economic growth and inclusive market development
low income people with the
tools and resources to lift themselves out of poverty through
at the regional and country levels.
earning less than two
hains as customers,
and distributors.
Africa (RBA), the
on the work of regional and national private
including Angola,
Ethiopia, Kenya, Malawi, Madagascar,
knowledge sharing, access to finance,
private sector led,
reduction, environmental
conflict recovery and gender equality.
Inclusive Market Development
Inclusive Market Development (IMD)
private sector markets to make them more inclusive of and
beneficial to the low income groups
and employees. Specifically, IMD seek
enterprises, producers and distributors to participate in and
benefit from the existing and potential markets in which they
do business.
UNDP’s Strategy for IMD
development and private sector engagement.
the stimulation of sustainable economic growth that creates
jobs and thereby reduces poverty
small enterprise owners and their employees take
growth of expanding markets.
IMD is the development of value chain
income generation potential.
UNDP developed an IMD Handbook and three related tools:
Assessing Markets, Inclusive Business Models
Partnerships.
Goals AFIM aims to achieve four main goals:
• Increase private sector related capacity of targeted,
regional institutions and governments;
• Build a broad-based alliance of partners for
(Private sector, regional institutions
and other development partners);
• Strengthen regional and country level initiatives;
• Improve access to finance for small producers and
Small and Medium enterpris
African Facility for
Inclusive Markets (AFIM)Business can turn Poverty into Prosperity
its main office in Johannesburg and will have a satellite
office in Dakar in 2012 (shown in the map in red).
Over 20 country offices are implementing private sector initiatives
ies (green).
Market Development
Inclusive Market Development (IMD) focuses on developing
private sector markets to make them more inclusive of and
me groups as producers, consumers
. Specifically, IMD seeks to empower small
enterprises, producers and distributors to participate in and
benefit from the existing and potential markets in which they
IMD combines private sector
development and private sector engagement. The objective is
of sustainable economic growth that creates
jobs and thereby reduces poverty – primarily by ensuring that
small enterprise owners and their employees take part in the
growth of expanding markets. The most used approach to
value chains with growth, job and
UNDP developed an IMD Handbook and three related tools:
Assessing Markets, Inclusive Business Models, and Brokering
aims to achieve four main goals:
Increase private sector related capacity of targeted,
al institutions and governments;
based alliance of partners for IMD in Africa
regional institutions, UN agencies, donors
and other development partners);
and country level initiatives;
Improve access to finance for small producers and Micro,
rprises (MSMEs).
Inclusive Markets (AFIM) Business can turn Poverty into Prosperity
Scope of Activities
Acting as a platform that facilitates strategic partnerships and
promotes inclusive markets development in Africa, AFIM:
• Convenes relevant partners, coordinates and supports
private sector initiatives at the regional and country levels
• Builds and increases private sector related capacity of
Regional Economic Communities (RECs) and governments
• Supports UNDP Country Offices to strengthen existing and
scale up new private sector initiatives
• Develops value chains targeting low-income groups,
especially women and youth
• Catalyzes action for poverty reduction, environmental
sustainability, post-conflict recovery and gender equality
• Disseminates knowledge and best practices of inclusive
finance
AFIM facilitates systemic and sustainable interventions at
different levels:
Micro level: Build capacity of small producers and traders by
providing support services in the focus sector/value chain.
Meso level: Strengthen value chain linkages and facilitate
public-private dialogues and cooperation.
Macro level: Support development of market infrastructure
and advocate sector policies for inclusive economic growth.
Service Offer
AFIM undertakes several activities to facilitate systemic
market development in Africa:
Strengthen Private Sector Initiatives: Build upon existing
private sector and IMD initiatives on national, regional and
global levels (such as Business Call to Action and Growing
Inclusive Markets).
“A new private sector is being born. Africa does not need
charity, Africa needs investment and partnership.”
UN Secretary-General Ban Ki-moon
Engage Companies and Investors: Facilitate broad-based
public-private partnerships for poverty reduction and
achieving the MDGs.
Foster Supply and Value Chains: Support integrated supply
and value chains which allow multiple entry points for low-
income groups to benefit as suppliers, producers, processors,
distributors, customers etc.
Build Capacity through Advocacy, Policy Dialogue: Undertake
capacity building, policy dialogue and advocacy for IMD.
Link with UN Agencies, Donors and Implementers:
Coordinate and link with the various private sector related
activities of other UN agencies, donors and implementers.
Facilitate Knowledge Exchange & Community of Practice:
Provide a regional platform for knowledge and information
exchange to effectively implement private sector develop-
ment strategies and sharing of best practices.
Improve Access to Inclusive and Innovative Finance:
Facilitate access to finance through knowledge dissemination
of innovative means such as value chain finance, venture
capital, warehouse receipts, etc.
Achievements in 2011/2012
To date AFIM has been active in pursuing its set objectives
and has made some significant contributions towards
facilitating a more inclusive market environment in certain
sectors on various levels:
Country Level:
• Assisted 28 UNDP country offices and governments to
improve their capacity to support value chain
development in their countries and strengthened the
focus on regional cooperation and value chain
development supported by UNDP country offices.
Regional level:
• Undertook a comprehensive assessment of the private
sector development and engagement capacity of key
regional institutions such as COMESA, EAC, ECOWAS,
SADC, NEPAD and AUC. The findings of the study informed
the next steps of capacity building activities and support
functions.
• Produced a study on the Roles and Opportunities of
Private Sector in Africa’s Agro-Food Industry, which
focuses on successful inclusive market development
models. It also looks at the incentives required by the
private sector to crystallize opportunities, deepen
investment in the agro-food sector and explore
mechanisms through which the private sector can engage
smallholder farmers.
Source: Diageo
Work in Progress in 2012
Based on the achievements to date AFIM is actively looking
for collaboration opportunities for the following key activities:
• Developing private sector and inclusive market
development related capacity of selected RECs, AU/NEPAD,
governments and regional private sector organizations.
• Supporting CAADP to advance private sector engagement
and increased investment in the regional and national
agricultural investment opportunities.
• Developing a major African Growing Inclusive Markets
(GIM) report which will feature 25 successful inclusive
business and market case studies and their ecosystems in
Africa to foster policy dialogue and inspire other actors.
• Organizing sub-regional AFIM weeks in East, West and
Southern Africa consisting of project facilitation platform,
IMD, value chain and inclusive finance training, country
office support clinics and a CEO breakfast.
• As part of the AFIM Weeks, organizing project facilitation
platforms in East, West and Southern Africa to advance
selected sub-regional or cross-border value chain projects.
• Launching a catalytic funding programme to provide micro-
capital grants and technical assistance for selected inclusive
cross-border and regional value chain projects.
• Building a pipeline of promising agri-food projects in
selected regional agri-food value chains such as grains,
horticulture and dairy/livestock.
• Co-organizing the AgriBusiness Forum 2012, planned for
October 2012 in Dakar, Senegal, to follow up on the
Johannesburg Declaration and continue dissemination of
inclusive agribusiness models and related best practices and
technologies in Africa.
• Commissioning a study on IMD opportunities and best
practices in non-agricultural sectors such as energy,
tourism, mining and retailing.
• Brokering a South-South project between Mexico and South
Africa to establish an innovative supplier development
programme based on the success of UNDP in Mexico to link
small suppliers with lead firms.
• Produced a comprehensive study of inclusive finance and
a field guide on inclusive business finance, to overcome
the major bottleneck of access to finance for MSMEs.
• Developed a capacity development programme for
regional institutions which garnered a $1 million grant
from the Japanese Ministry of Foreign Affairs.
• Co-chaired a continental forum on Inclusive Finance
alongside the 2011 World Economic Forum – Africa.
• Co-organized the
AgriBusiness Forum 2011,
the largest agribusiness
conference in Africa, attended
by more than 450 stakeholders
from 57 countries. The Forum
aimed at boosting Africa’s
agricultural sector by bringing
together African agro-business
representatives and investors
from all over the world.
• Organized a very successful continent wide public private
dialogue (PPD) which led to adoption of the
Johannesburg Declaration on “Engaging the Private
Sector in Furthering Africa’s Agribusiness, Food Security
and Nutrition Agenda”. This is the first joint declaration
by public and private sectors calling for joint action to
advance Africa’s agro-food agenda. The PPD was
supported by FAO, UNIDO, WFP, IFAD, Business Call to
Action, Global Compact, AU/NEPAD, AfDB, RECs, private
sector and civil society - women and trade unions -
creating the foundation for a broad based alliance in
support of inclusive agribusiness in Africa.
• Contributed to the increased adoption of the inclusive
market development approach, especially within
agribusiness, which links lead firms with smallholders and
MSMEs.
• Brokered partnerships between 14 major regional
partners throughout the continent within the agribusiness
sector, advancing inclusive market development through
greater regional value chain integration.
Global level:
• Produced a Wikipedia article on Inclusive Business
Finance in order to provide wide access to knowledge
regarding different modalities of Inclusive Business
Finance, improving access to finance for MSMEs.
“Businesses are engines of growth and have the
potential to help improve the lives of people through
their investments and activities.”
UNDP Administrator Helen Clark
Private Sector Success Stories
UNDP has engaged the private sector in partnerships
targeting the achievement of the MDGs. By incorporating
low-income people into value chains, private sector
companies are improving their competitiveness and
contributing to sustainable inclusive development. UNDP has
played various roles at various stages of the cases below,
ranging from providing technical or financial support,
brokering partnerships and disseminating good practices:
1. Cadbury Cocoa Partnership
Summary: In Ghana, Cadbury has partnered with UNDP and
other nongovernmental organisations and government
agencies in the establishment of the Cadbury Cocoa
Partnership. By providing training, technical assistance and
access to finance, the partnership has increa
productivity and quality of cocoa, improved
cocoa farmers and established a sustainable value chain in
the cocoa industry.
UNDP role: UNDP brokered the private
participated in the establishment of the programme, pr
seed funding and expert advice on project structure and now
sits on both national and international boards that drive the
strategic direction of the project.
Development impact: Training and technical assistance was
provided by the Cadbury Cocoa Partnership to about 100
cocoa farming communities and this has improved incomes
and livelihoods of the communities.
Ghanaian Village Chief with cocoa beans
2. Fanikisha Initiative
Summary: To promote women in business the UNDP, Equity
Bank and other local NGOs partnered and introduced the
Fanikisha to Kenyan women on 12 May 2008. By offering
business training services and credit facilities exclusively to
women the initiative has empowered women and has
cemented the role of women in development of
communities.
Private Sector Success Stories
UNDP has engaged the private sector in partnerships
targeting the achievement of the MDGs. By incorporating
income people into value chains, private sector
companies are improving their competitiveness and
sustainable inclusive development. UNDP has
played various roles at various stages of the cases below,
ranging from providing technical or financial support, to
disseminating good practices:
In Ghana, Cadbury has partnered with UNDP and
other nongovernmental organisations and government
agencies in the establishment of the Cadbury Cocoa
Partnership. By providing training, technical assistance and
the partnership has increased the
d the wellbeing of
cocoa farmers and established a sustainable value chain in
UNDP brokered the private-public alliance,
participated in the establishment of the programme, provided
seed funding and expert advice on project structure and now
sits on both national and international boards that drive the
Training and technical assistance was
rtnership to about 100
cocoa farming communities and this has improved incomes
To promote women in business the UNDP, Equity
NGOs partnered and introduced the
Fanikisha to Kenyan women on 12 May 2008. By offering
business training services and credit facilities exclusively to
women the initiative has empowered women and has
cemented the role of women in development of
UNDP role: With Equity Bank offering affordable credit
facilities, UNDP together with other private sector resources
provided financial support for the project and expertise to
train the budding entrepreneurs.
Development impact: Between 2009 and 2010 144
women entrepreneurs were
Shillings 400 million) worth of loans
women.
3. Multifunctional Platform
Summary: Energy services are essential for economic
growth and achieving the MDGs however most rural
families in Africa experience energy challenges and the
burden falls on the women to perform household duties
manually. Responding to this challenge
and UNIDO introduced a platform that is a source of
mechanical and electrical energy. The multifunc
platform has liberated women from their arduous chores to
allow for activities that contribute to sustainable
development.
UNDP role: The private sector provide
including installation and maintenance.
cost of the platform and facilitate
and capacity building, particularly for the women.
Development impact: By 2009 an estimated 750 MFPs
were operational in Mali and the project has been rolled out
to women in Senegal, Ghana, Burkina
dedicated to domestic chores by women and girls has
reduced by 2 to 4 hours allowing time for other income
generating activities and school attendance and
performance by girls has improved. Women have been
empowered and their income
24,100 FCFA (US$ 45).
For more details on the above mentioned success stories
and additional cases visit:
www.undp.org/partners/business
www.businesscalltoaction.org
www.growinginclusivemarkets.org
Contact us
Tomas Sales, AFIM Manager
Email: [email protected]
Tel: +27 11 603 5010, Fax 5049
African Facility for Inclusive Markets
UNDP Regional Service Centre
7 Naivasha Road, Private Bag X46,
Sunninghill 2157
Johannesburg, South Africa
Web: www.undp.org/africa/privatesector
With Equity Bank offering affordable credit
facilities, UNDP together with other private sector resources
provided financial support for the project and expertise to
train the budding entrepreneurs.
Between 2009 and 2010 144
trained and $5.4 million (Kenya
Shillings 400 million) worth of loans were disbursed to 300
3. Multifunctional Platform
Energy services are essential for economic
growth and achieving the MDGs however most rural
Africa experience energy challenges and the
burden falls on the women to perform household duties
manually. Responding to this challenge, governments, UNDP
and UNIDO introduced a platform that is a source of
mechanical and electrical energy. The multifunctional
platform has liberated women from their arduous chores to
allow for activities that contribute to sustainable
The private sector provided technical services
ng installation and maintenance. UNDP subsidized the
the platform and facilitated transfer of technical skills
particularly for the women.
By 2009 an estimated 750 MFPs
were operational in Mali and the project has been rolled out
to women in Senegal, Ghana, Burkina Faso and Guinea. Time
dedicated to domestic chores by women and girls has
reduced by 2 to 4 hours allowing time for other income
generating activities and school attendance and
performance by girls has improved. Women have been
income increased by an estimated
For more details on the above mentioned success stories
www.undp.org/partners/business
www.businesscalltoaction.org www.growinginclusivemarkets.org
Fax 5049
African Facility for Inclusive Markets
UNDP Regional Service Centre
7 Naivasha Road, Private Bag X46,
www.undp.org/africa/privatesector