Inclusive Business ModelImpact Evaluation of an innovative distribution channel in

Kinshasa- DRCLisbon, March 2014

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3Source: Company website – Investor Relations

WesternEurope

GreaterAfrica

Near & Middle East

Americas Asia-Pacific

North East Europe

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Bel Access vision is to position Bel as a

recognized inclusive business leader by contributing to reach 1 billion consumers by 2020 and maximizing our social impact

Bel Access operates as a Business Unit incubator to initiate or support inclusive

business models throughout the whole value chain

Bel Access mission is to make the Group

offer accessible to lower income consumers all around the world

Informal sector and street vendors: challenges to overcome – the case of Kinshasa

• In Kinshasa, there are more food street vendors than shops and no brands are investing the channel

• A large majority of street vendors are women in Kinshasa : 95% of the 28 000 street vendors are women

• Low education / entrepreneur / selling skills:Lowest of all the institutional sectors except agriculture: only 15.7% have completed at least upper secondary school (79.3% in the public sector). More than 90% of the street vendors do not have any vocational training or school certificate. Nevertheless, only 2% of street vendors have never attended to school.

• Lack of access to social services:The large majority of street vendors are migrant population living in the city for 5 to 10 years without being registered. Indeed, they do not have access to public social services (heath insurance, access to credit, training…)

• And difficulties to look at the future with optimism…

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SOCIAL IMPACT PLATFORM: HOLISTIC & PARTNERSHIP APPROACH

Street vending

Ecosystem Improve their environment (lobbying, PR, public sector

involvement)

FormalityIntegration to the formal

sector: taxation, social security access, migrant registration in

the cities,…

Capacity-buildingTailored made training for street vendors (hygiene,

micro-entrepreneurship…)

Access to creditBuy new products,

equipment, micro-franchises, etc.

Access to marketSupport vendors to access new market opportunities

while modernizing their offer

Access to insuranceBuy new affordable and

efficient products answering their specific needs.

Sharing Cities platform:Social impact and partnership approach

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BEL ACCESS MODEL IN KINSHASA

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1. OFFER THE GOODNESS OF THE MILK TO THE LARGEST POPULATION

2. INCREASE WOMEN INCOME THROUGH SOCIAL INCENTIVES

3. MAXIMIZE THE SOCIAL BENEFITS FOR THE WOMEN

BEL ACCESS MODEL IN KINSHASA – OUTCOMES OF INTEREST

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1. PROFITABILITY

2. PRODUCTIVITY

3. JOB CREATION

4. HEALTH SAVINGS

Bel’s Route-to-Market in Kinshasa

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Basic Route-to-Market"

LOCAL DISTRIBUTOR

WHOLESALERS

SEMI - WHOLESALERS

GROCERY STORES

BEL GROUP

CONSUMERS

Bel’s Route-to-Market in Kinshasa

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Mamas Mapas Route-to-Market"

LOCAL DISTRIBUTOR

MAMAS MAPASBEL GROUP

CONSUMERS

- Better coverage of population- Better control of the key messages to consumers- Better insights from consumers- Additional sales margin to Mamas Mapas

Key Data

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• 28,000 bread sellers in 2013

• Purchasing from 3 Industrial bakeries

• Avg income : $380/month

• Avg working hours : 13hrs/day, 6,5days/week ($1/hr)

• Avg profile : age 41 / main source of revenue for the household / 4.1 children

1. Kids education (91%)

2. Aspiration to find ways for growing their business (72%)

3. Personal independence vs. intimate partner// consistency of incomes (70%)

Mamas Mapas Focus Groups, feb 2014, 100 MM

Main concerns

POTENTIAL INTERVENTION TO ADDRESS EXPRESSED NEEDS

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KIDS’ EDUCATION

WAYS TO GROW THEIR BUSINESSES

FINANCIAL INDEPENDENCE vs IP HEALTH INSURANCE

BUSINESS DEVELOPMENT HANDS-ON TRAINING

ACCESS TO BANKING SERVICES

INTERVENTION

PHASE 2

PHASE 1

NEEDS

INTERVENTION DETAILS 1/2TRAINING

1. WHY PROVIDING THIS TRAINING• Outcome of Focus Group shows that 70% of participants aspire to develop their

business but doesn’t know how to do it

2. WHAT’S INSIDE THE TRAINING• How to lean their incomes overtime (fight seasonality effects) and better

manage their cash-flows & stocks• Hands-on program on different aspects of how to switch from street-selling to

openning a shop

3. HOW TO ROLL OUT• Design training costs• Identify a pool of Mamas who want this training• Then select randomly to which provide the training (Incentive package to a

treatment group vs Control group without package)

4. MONITORING RESULTS• Sales & Income• Productivity • # of shops opened• # of jobs created

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Quarterly

INTERVENTION DETAILS – 2/2

• Bank Savings– Extra Bonus for bank account subscribtions– Selection through lottery – Respond to their need of growing their business

• Health Insurance– Actual condition often leads to health problems– Design a tailored-made insurance product in partnership

with local insurance companies– Outcome : Savings on health expenses

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PHASE 2

UNDERSTAND THE

COMMUNITY

DESIGN THE STUDY

DESIGN THE PROTOCOL

DATA*

MEASURE IMPACT

IMPACT EVALUATION DESIGN

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DONE THROUGH

FOCUS GROUP

3 TREATMENT GROUPS

1 CONTROL GROUP

QUARTERLY FOLLOW-UP

OVER 24 MONTHS

PROFITABILITY

JOB CREATION

PRODUCTIVITY

* 1. Baseline Survery / 2. Periodic Data Collection (quarterly) / 3. End Line Survey (how both groups are changing overtime)

Kinshasa Model 3 year’s plan

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Scale

► 9.000 street-vendors

Business Opportunities

► 40% of local business through this

distribution channel

Social Platform

► 1.000 people trained in the

« business schools for street

vendors »

► 3.000 vendors benefiting

from micro-insurance

► Increase by 25% of the

vendors’ revenues

Innovative Financing

► Partnerships with

international organizations

Thank you