“Inclusive Business”Supporting Measures & Initiatives

The IB Workshop Feb 28, 2013

Kiyoshi Mori, METI

No. Measures I. Phase of Studying Project Plans

１Collecting information on inclusive business

Operate portal site

Hold seminars

Survey of inclusive business

2Providing advices for inclusive business

Find and establish partners

Exchange information between enterprises

Provide various advisory services(Consulting desk)

3

Dissemination and training to the low-income earners, and persons concerned

Education activities targeting at local public agencies, etc.

Provide technological education to the low-income earners, etc.

(6) JETRO(Individual response to consultations from enterprises through the following arrangement made by overseas coordinators)* Assessment of acceptability of the low to middle income earners for products and services. provision of information on business partner candidates, arrangement of interviews. display in an exhibition, and other

(5) Ｊ ETRO(Overseas market survey))(Posted in (1). 35 items by

February 2013)

(4) JETRO(Dispatch of missions)* In FY2012, missions were dispatched to Indonesia, West Africa, and India.

(10) HIDA(Voluntary local human development by graduates with a class reunion(e.g.) Establishment of the Thai-Nichi Institute of Technology

(3) METI (13 items), MOFA(1 item), JETRO(17 items), JICA(7 items) 　　 (Posted in (1). Number of items is those posted in the website of Japan Inclusive

Business Support Center

(1) METI, JETRO (Japan Inclusive Business Support Center)(http://www.bop.go.jp/)(2) MOFA (MDGs 　 Public-Private Partnership)(http://www.mofa.go.jp/mofaj/gaiko/oda/doukou/mdgs/kanmin/index.html ) 　

(as of February, 2013)

(11) JICA (Technological cooperation/Japan Overseas Cooperation Volunteers)* Dispatch of corporate personnel through technological cooperation forming a local network

(8) ＩＦＣ(Advisory service)* Use of local and customer networks

Example:

(7) SMRJ* Provision of information and advices from the standpoint of management support

METI (Ministry of Economy, Trade and Industry), JETRO (Japan External Trade Organization), MOFA (Ministry of Foreign Affairs of Japan), JICA (Japan International Cooperation Agency), IFC (International Finance Corporation), SMRJ (Organization for Small & Medium Enterprises and Regional Innovation), HIDA (Overseas Human Resources and Industry Development Association), UNDP (United Nations Development Programme)

(9) UNDP

(12) UNDP

Supporting Measures and Initiatives for Inclusive Business in Japan(1)

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No. Measures II. Phase of Launching Projects

1Business promotion feasibility study

Survey by aid organizations

Survey by business promotion organizations

2Demonstration of suitability with local needs

Demonstration of development possibility in the country

(1) JICA(Preparatory Survey for Inclusive business promotion, Small and Medium-Sized Enterprise Partnership Promotion Survey)

(3) UNIDO(Demonstration project to establish and disseminate Japan’s low-carbon technologies in developing countries)* 550 million yen is earmarked for FY2013 budget.

(2) SMRJ and JETRO(Project for comprehensive support for SMEs overseas development)* Support for SMEs overseas development by formulating a overseas development project plan and support for on-site survey)* 3,150 million yen is earmarked for FY2013 budget.

Example: UNIDO (United Nations Industrial Development Organization)

Supporting Measures and Initiatives for Inclusive Business in Japan(2)

(as of February, 2013)

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Example: JFC (Japan Finance Corporation), Shoko Chukin Bank(Central Bank for Commercial and Industrial Cooperatives), UNICEF (United Nations Children's Fund), WFP (World Food Programme), FAO (Food and Agriculture Organization of the United Nations)

No. Measures III. Phase of Establishment and Expansion

1 Financial support

Public financing support(Funds and loans)

2

Technological education for production and distribution of local employees

Fostering of local employees

3 Procurement by international organizations

(7) HIDA(Fostering of local human resources by providing training programs and dispatching experts)* 7,400 persons are trained and 150 persons are dispatched as expert annually. * This project is an assistant project undertaken by METI.

(8) UNICEF* Protection of children from disease, malnutrition, etc.* Procurement of vaccines, nutritious food, public health products, etc.　　　　　　　　　

(6) Social investment funds by private sectors

(1) JICA(Overseas investments and loans)

(9) WFP* Foods are made available at any time to ensure that all people can live. * Procurement of foods, transportation equipment, etc. 　　　　　　　　　　　　　　

(10) FAO* Supporting countries that are striving to supply nourishment to their people to end hunger* Procurement of basic chemicals and transportation equipment　　　　　　　　　　　　　　　　　　　　

(2) JFC(Special financing system (Overseas development find))

(5) SMRJ(Overseas development funds will be syndicated)(4) IFC

(Investments and loans)

(3) Shoko Chukin Bank“Overseas 21 Scheme”* Funds and loans provided to overseas subsidiaries, and guarantees

Supporting Measures and Initiatives for Inclusive Business in Japan(3)(as of February, 2013)

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番号 対応策の内容 Ⅰ．事業計画検討段階

１BOPビジネスの情報収集

ポータルサイトの運営

セミナー実施

BOP市場調査

２ BOPビジネスに対するアドバイス

の発掘・構ﾊﾟｰﾄﾅｰ築

企業同士の情報交換

各種アドバイス（相談窓口）

３ 現地 BOP層・関係者への普及・人材育成

現地公的機関等への啓発・教育活動

ＢＯＰ層等への技術教育

⑥JETRO（海外コーディネーターの活用等により以下のアレンジを行い、企業の相談に個別に対応）

※製品・サービスに対する低～中間所得者層の受容性評価、競合製品等の情報提供、ビジネスパートナー候補の情報提供、面談アレンジ、展示会出展　等

⑤ Ｊ ETRO（海外市場調査）（①に掲載。平成２５年２月までに３５件）

④JETRO（ミッション派遣）※24 年度はインドネシア、西アフリカ、インドに派遣。

⑩HIDA（同窓会を通した卒業生による自主的な現地人材育成）（例）泰日工業大学を設立。

③METI （ 13 件）・ MOFA （ 1 件）・ JETRO （ 17 件）・ JICA （ 7 件） 　　（①に掲載。件数は BOP ビジネス支援センターに掲載した件数を記載。）

①METI ・ JETRO （ BOP ビジネス支援センター）（ http://www.bop.go.jp/）②MOFA(MDGs 官民連携ネットワーク )（ http://www.mofa.go.jp/mofaj/gaiko/oda/doukou/mdgs/kanmin/index.html ）　

⑪ ＪＩＣＡ（技術協力・青年海外協力隊）※ 技術協力を通し現地に企業人材を派遣、現地ネットワークを形成することを想定。

⑧ ＩＦＣ（アドバイザリー

サービス）※ 現地・顧客

ネットワークの活用

凡例：

⑦ 中小機構※ 経営支援の観点から情報提供やアドバイス

ＭＥＴＩ（経済産業省）、ＪＥＴＲＯ（日本貿易振興機構）、ＭＯＦＡ（外務省）、ＪＩＣＡ（国際協力機構）ＩＦＣ（国際金融公社）、中小機構（中小企業基盤整備機構）、ＨＩＤＡ（海外産業人材育成協会）、ＵＮＤＰ（国連開発計画）

⑨ ＵＮＤＰ

⑫ ＵＮＤＰ

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我が国におけるＢＯＰビジネス関連支援施策・制度（ 1）（平成２５年２月現在）

我が国におけるＢＯＰビジネス関連支援施策・制度（ 2）

番号 対応策の内容 Ⅱ．事業化段階

１ BOPに関する事業化可能性調査

援助機関による調査

ビジネス振興機関による調査

２ 現地ニーズとの適合性実証

現地での展開可能性実証

①JICA（協力準備調査（ BOP 連携促進）、中小企業連携促進調査）

③ ＵＮＩＤＯ（開発途上国において、日本の低炭素技術の確立・普及を図った実証事業）※ ２５年度予算として５．５億円を計上。

②中小機構・ JETRO（中小企業海外展開総合支援事業）※海外展開事業計画の策定や現地調査の支援を通じ、中小企業の海外展開を支援。※２５年度予算として３１．５億円を計上。

（平成２５年２月現在）

凡例：ＵＮＩＤＯ（国連工業開発機関）

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凡例：日本公庫（日本政策金融公庫）、商工中金（商工組合中央金庫）、ＵＮＩＣＥＦ（国連児童基金）ＷＦＰ（国連世界食糧計画）、ＦＡＯ（国連食糧農業機関）

番号 対応策の内容 Ⅲ．確立・拡大段階

１ 金融面の支援

公的金融支援（出・融資）

２

現地従業員の生産・流通に携わる技術教育

現地従業員の育成

３ 国際機関における調達

⑦HIDA（研修、専門家派遣を通した現地人材育成）※ 年間 7,400 人を研修、 150 人を専門家として派遣※ 本事業は METI による補助事業であり、公募の結果、 HIDA が採択、実施。　　　　　　

⑧UNICEF※病気、栄養失調等から子供を守る。※ワクチン類、栄養食品、公衆衛生等を調達。※住友化学のオリセットネットを調達、普及。　　　　　　　　　　　　　　　

⑥ 民間の社会的投資ファンド

①JICA（海外投融資）

⑨WFP※全ての人が生活できるために食料が常時手が届くようにする。※食料、輸送関係等を調達。※日本より自動車（輸送関係）を調達。　　　　　　　　　　　　　　　　

⑩FAO※世界の飢餓撲滅に向け国民への栄養供給を取り組む国々を支援。※基礎化学薬品、輸送機器を調達。※日本より自動車（輸送関係）を調達。　　　　　　　　　　　　　　

② 日本公庫（特別貸付制度（海外展開資金））

⑤ 中小機構（海外展開ファンド）※ 今後ファンド

組成予定

④ ＩＦＣ（投融資）③ 商工中金

（オーバーシーズ２１）※ 現地法人への出融資・保証

6

我が国におけるＢＯＰビジネス関連支援施策・制度（ 3）（平成２５年２月現在）

Inclusive Business&

JIBSC

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“Inclusive business” aims at providing new business models to low-income earners in developing countries. These business models are expected to serve to resolve social issues faced by local communities.

Base of the Pyramid (BOP)

※1

※2

World Income Pyramid

Source: Created by METI based on THE NEXT 4 BILLION (2007 World Resource Institute, International Finance Corporation)

1About 72% of the world’s population2Comparable to Japan’s real GDP

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Annual income: Over $20K

BOPAbout 4 billion people1

(5 trillion dollars)2

About 1.4 billion people

About 175 million people Expected Increase

of Income

Demand for Development

1. Basic Ideas of “Inclusive Business”

Annual income: Over $3K

1. To resolve social issues in developing countries

2. To help overseas expansion of Japanese corporations

3. To create higher income classes in developing countries

Win-Win-Win Situation

Public-private collaboration will create a mutually beneficial Win-Win-Win situation.

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2. Three Objectives for promoting “Inclusive Business”

Core Areas Key Industry Sectors

1. Poverty ReductionEducation, Healthcare and human welfare, Water and sanitation, Agriculture, forestry, and fisheries, Food and nutrition

2. Japan’s expertiseEnvironmental energy devices, Home appliances, Industrial machinery

3. Core infrastructure for initiatives in the above areas

Information and communication, Money and financing, Transportation and shipping equipment

Key sectors have been selected from the following perspectives.

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3. Key Sectors

1.Sectors in which international agencies and overseas aid　 organizations are actively involved and have generated favorable results

2. Sectors targeted by Japanese corporations, and sectors for official development assistance (such as those outlined in the ODA charter)

JAPAN

Aid Groups & Organizations

Developing Countries

Win-Win-WinSituation

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GovernmentCompanies

GovernmentBOP earners

NGOs/NPOsAid Organizations

4-1. Benefits to be Involved in “Inclusive Business”

4-2.

JAPAN

For Government

•Sustainable economic cooperation through public-private alliances

• Increased presence/awareness of Japan for its economic cooperation

•Support for Japanese SMEs to enter overseas markets

For Companies•Acquiring new markets and standards

•Opportunities for SMEs to operate their businesses in overseas markets

•Momentum for business innovations

(Creation of new products/services, sales channels, or business partnerships)

•Sustainable and more efficient business through alliances among companies, governments, aid organizations, NGOs/NPOs, entrepreneurs and others

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4-3.

For Governments•Economic development through vitalizing markets, employment, direct inward investment, and exports

•Poverty reduction, higher standard of living For BOP earners

•Escape from poverty with new employment opportunities

•Creation and expansion of opportunities to acquire products and services in need

•Elimination of BOP disadvantages

For NGOs/NPOs•Collaboration with corporations to uncover new BOP support needs, and to provide sustainable and efficient support

For Aid Organizations•Efficient resolution of social issues (e.g. the Millennium Development Goals) faced by developing countries

Developing Countries

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Aid Groups & Organizations

Sumitomo Chemical Co., Ltd developed Olyset Net, mosquito net woven from fibers containing insecticides to prevent malaria. Olyset Net has been distributed in over 50 countries helped by international agencies.

As the pesticide effect of Olyset Net continues for at least five years, which enables economical and effective prevention of malaria, its demand has been steadily growing.

Sumitomo Chemical Co., Ltd created nearly 7,000 jobs in Tanzania for the production of Olyset Net, contributing to regional economic development as well.

Case #2: Olyset Net (Sumitomo Chemical Co., Ltd)

Source: Sumitomo Chemical Co., Ltd

Case #1: Solar Lantern (Sanyo Electric Co., Ltd)

Sanyo Electric Co., Ltd developed Solar Lantern by integrating technology for solar panels and storage batteries.

The company is starting pilot projects in Kenya . Compared with Kerosene Lamp, Solar Lantern

contributes greatly to reduction of CO2 emission and fuel costs, and to prevention of diseases caused by breathing smoke. Also, Solar Lantern has longer action time than Kerosene Lamp.

Source: Sanyo Electric Co., Ltd

KeroseneLamp

SolarLantern

5-1. Cases by Japanese Corporations (1)

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Case #3: Agricultural Pump (Yamaha Motor Co., Ltd)

Yamaha has spread the use of new pump-based farming methods in Africa (Senegal, etc.) with its drip system.

The company has worked with NGOs, local governments, and other organizations to explain and guide the use of the devices, and to collect money from sales.

As a result, the product enabled more efficient production of onions and other crops (one person can easily do the watering work otherwise required three people) as well as long-term production cost reduction.

Difference in crop growth

Right: Drip systemLeft: Manual watering

Drip system

Source: Yamaha Motor Co., Ltd

Water supply (drip)

Vegetables Perforated tubeTransfer valve

Pump

Well

5-2. Cases by Japanese Corporations (2)

水質浄化剤

Clumping caused by the water purification agent (from the Nippon

Poly-Glu website)Children using the product

to purify water

Case #4: Water Purification Agent (Nippon Poly-Glu Co., Ltd)

Nippon Poly-Glu Co., Ltd is a mid-sized company that manufactures the water purification agents.

The company has worked to use its water purification agent to make safe drinking water widely available in Bangladesh. The company also set up a saleswomen network of local community.

Raw water (pond water) ClumpingWater purification

agentSettling

Source: Nippon Poly-Glu Co., Ltd 15

5-3. Cases (New business model 1)

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5-3. Cases (New business model 2)

17

5-3. Cases (New business model 3)

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http://www.bop.go.jp/en

METI & JETRO established Information Portal Site.Country-specific information and research reports are available in JIBSC.Members of JIBSC can get E-newsletters regarding the inclusive business.

Japan Inclusive Business Support Center

6-1. About JIBSC

19

Collect and analyze information on local industries and markets.

(e.g. BOP consultation by JETRO in Kenya, Tanzania, Ghana, India, Bangladesh, Indonesia,

Bangladesh, Vietnam and Cambodia.)

Promote development and utilization of related support measures from METI, JICA, JETRO, etc.

(mission dispatch, feasibility studies, financial support for projects, etc.)

• Information Portal Site• Matching Support • Consultation Desk

Creation and Promotion of “Inclusive Business”

Japan Inclusive Business Support Center (JIBSC)

Aid Agencies(local branches)

Local NGOs / NPOs

International Organizations

Local Businesses

Local Government

Agencies

DC, AG & O Japan

Corporations, Entrepreneurs

Japanese NGOs / NPOs

Aid Agencies (JETRO, JICA, JBIC)

Related Ministries (MOFA)

Steering Committee

(Key persons from industry/academy,

representatives from private business/group, government

agencies, etc.)

Secretariat

(METI & JETRO)

Advice/Guidance

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6-2. About JIBSC – Structure & Framework

JETRO is sending business missions to understand the lifestyle and the needs of the BOP segments.

We felt that it is difficult to start out business in the local market without a local partner that has network and distribution channel in the BOP segment. December 2011 Kenya, Tanzania Mission

The visit to NGOs was meaningful to get the evaluations from the low income group regarding our products. December 2012 India Mission

6-3. Other Supporting Measures & Initiatives(1)

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India (New Delhi, Mumbai, Pune)

India (Chennai, etc.)

Indonesia

West Africa (Nigeria, Ghana)

East Africa (Kenya, Tanzania)

Bangladesh

JETRO has placed local coordinators that supports Japanese companies.The local coordinators can provide Japanese companies with business

information and arrange business surveys.

Northern India (New Delhi)

Southern India (Chennai)

Bangladesh

IndonesiaTanzania

Kenya

Ghana

Vietnam (Ho Chi Minh)

Cambodia

6-4. Other Supporting Measures & Initiatives(2)

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Thank you for

your attention !!For further inquires, please contact: Kiyoshi Mori(mori-kiyoshi@meti.go.jp)

Ryota Nakamura(nakamrua-ryota@meti.go.jp)