Cuando se trata de hacer accesible un producto a comunidades de bajos recursos, se han de combinar muchas áreas de conocimiento para superar con éxito las distintas fases y condiciones; desde la adaptación de la idea original de un producto, la necesidad de crear un modelo de aprovisionamiento y de generar una demanda, hasta la necesidad de conocer el contexto local y sus costumbres, políticas locales que le puedan afectar, etc. Surge de ahí la importancia de los partenariados y alianzas para el desarrollo a lo largo de todos los procesos involucrados en el diseño y desarrollo de mercados de tecnologías y servicios adaptados a la Base de la Pirámide. ¿Qué actores participan en el desarrollo de mercados de tecnologías y servicios para la Base de la Pirámide? ¿Cómo se generan alianzas entre estos actores? A nivel internacional, parece ya superado el debate de si el sector privado es o no es un actor necesario para la consecución de objetivos de lucha contra la pobreza, y las discusiones comienzan ya a centrarse en como maximizar las alianzas estratégicas como herramienta de innovación social. En esta presentación, analizaremos estos elementos de la mano de la Agencia de Cooperación Alemana (GIZ), que cuenta con una extensa experiencia en este ámbito.

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•Company under private law, owned by the Federal Republic of Germany
•Operations in Germany and over 130 countries around the world
•Business volume of over EUR 1.9 billion in 2013
•Main commissioning party: the German Federal Ministry for Economic Cooperation and Development (BMZ), whose share of the total income from public-benefit business exceeded EUR 1.4 billion in 2013
•Income from BMZ commissions included EUR 170 million of cofinancing from third-party donors
•Commissioned by well over 300 public and private-sector bodies in Germany and abroad
Our profile A German federal enterprise

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Facts and figures: human resources
•16,510 employees worldwide
•Over 3,200 staff in Germany
•11,244 national personnel
•869 development advisors
•545 integrated experts and 439 returning experts

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Specialised Business Unit for the Private Sector Working together with businesses and foundations
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Why partner with the private sector?
Official development assistance (ODA) resources are not sufficient to achieve the Millennium Development Goals (MDGs)
Foreign direct investment (FDI) consistently doubles ODA from international cooperation
Important problems hindering development, such as water shortages, climate change and scarcity of natural resources, cannot be resolved by states on their own
The private sector has to – and wants to – assume responsibilities
The private sector is an engine of development

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3-pillar model for cooperation with businesses and foundations
Commissions from the private sector Forming consortia with the private sector
Cooperation on behalf of public sector partners
Cooperation with businesses and private foundations

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Successful cooperation with the private sector How do we achieve this together?
•By cooperating closely when developing market potential (themes/regions)
•Through joint strategic planning to further transform the portfolio
•Through task forces on specific approaches, themes and markets for acquisition
•By developing and testing new business formats and models
•Through smart alliances with complementary partners outside of GIZ
•By defining clear responsibilities / a sharp service profile that generate synergies
•By developing joint acquisition pipelines, where appropriate

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Forms of cooperation
•Projects called ‘development partnerships’
•Partnerships with business chambers and associations
•Cooperation for human resources development/exchanges
•Stakeholder Dialogues/Thematic business platforms
•Sector dialogues for inclusive business
•Advisory services for public-private partnerships (PPPs)

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What are Development Partnerships?
Development Partnerships
are partnerships between development agencies and the private sector on equal terms.
aim to connect business management and development policy. This leads to growth opportunities and benefits for companies, while at the same time contributing to sustainable development.
minimise potential risks for both sides, especially when operating in developing countries.
 Creates win-win situations for companies and development cooperation.
 Common goals can be achieved faster and more sustainable.
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Local economic development
Increase income and improved livelihood of local communities
Mobilisation of resources of the private sector
Sustainability governance of value chains
Improved supply chain management
Market entry and expansion
Reliable sourcing of raw material and commodities
Reputational risk management
Corporate Social Responsibility (CSR)
Business objectives
Development Cooperation objectives
Development
Partnerships
Common Goals

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Models of GIZ Development Partnerships
Integrated Development Partnership
Africa Facility
Fund Fragile States West Africa
Open call for specific topics (quarterly)
Strategic alliance
Private
partner
All companies (local, regional & international)
African companies,
international
companies with a
branch office in an
African country
Local companies,
international
companies with a local
branch office
German & European companies
German & European companies
Sector
Direct contribution to objectives of bilateral program
Sectors of the partner
countries
Ghana, Kenya, Cameroon, Tanzania, South Africa, Tunisia
Sectors of the partner
countries
Ivory Coast, Liberia,
Sierra Leone, (Guinea)
Projects in various sectors
Supra-regional, often entire sectors, involvement of several companies and other stakeholders
Term
Tied to program term
max. 3 years
max. 3 years
max. 3 years
max. 3 years
Contribution
Up to EUR 193,000 Public share
possibly more in co- operation agreements
Up to EUR 193,000 Public share
GIZ ≤ 50%
Up to EUR 193,000 public share
GIZ ≤ 50%
Up to EUR 200,000 Public share
GIZ ≤ 50%
At least EUR 750,000 Total volume GIZ ≤ 50%
Application
Joint initiative of company and GIZ
Joint initiative of company and GIZ
Joint initiative of company and GIZ
Through open call, advisory services by GIZ
Joint initiative of company and GIZ
Public share funded by
Bilateral program
Africa Facility
Fund Fragile States West Africa
develoPPP.de

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Sequence of a Development Partnership
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Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Submission of proposals* • Closing date on the last day of each quarter (open call)
Business solvency check • Assessment of proposals according to criteria
Joint elaboration of project concept
•
Budget
Concept review
•
Finalisation of contract
Implementation
•
Disbursements according to progress (only in case of cash contributions)
•
Progress reports
End of project
•
Final report
•
Final payment
* In Strategic alliances an approval by the BMZ is required. In addition to the general criteria, there are also quantitative and qualitative criteria to be fulfilled. Typically, a cooperation agreement is chosen.

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Success factors
Governance rules, clear rules of participation and application procedures
Clearly defined financial framework, cost sharing rules as well as cooperation and funding modalities
Clear rules and procedures for the project implementation (contributions, responsibilities, M&E, reporting)
Check financial and reputational risks and establish minimum requirements for suitable partners
Partners‘ long-term committment as well as openness and trustful relationship among partners, transparent communication
Involvement of the top-management level of private partners
Project goals according to local needs & counterpart‘s interest
Exit strategy (e.g. local anchoring, institutionalization, self sustained activities)
Local infrastructure, local knowledge and well established local networks
Change agents and multipliers

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Integrating the informal sector into the steel value chain
Results
Working conditions in the informal sector are improved
Actors in the informal sector work in a more effective and coordinated manner, delivering goods and services to the formal market
Gerdau stabilises its supply chain
Problems
On average, 40% of scrap metal is used to produce steel, and this comes mainly from the informal sector
Working conditions in the informal sector are poor and there is no employment protection or social security
Measures
Professionalise actors in the informal sector
Strengthen intermediary organisations in the informal sector
Develop and implement a monitoring system for the entire value chain
Latin America
(supraregional)
Gerdau Sept. 2010 – Aug. 2013 Private: EUR 2,000,000 Public: EUR 1,000,000

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DPP
DPP

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Microinsurance:
small amounts,
big results
Munich Re
Dec. 2006 – Sept. 2012
Private: EUR 800,000
Public: EUR 800,000
Problems
In 2005, 90% of poor and illegal workers in Asia had no insurance of any kind
These people do not have access to formal social protection systems, particularly in the event of natural disasters
Asia (supraregional)
00
Results
The security and quality of life of low-income households are improved thanks to suitable microinsurance products
Munich Re’s client base and product range is broadened
Measures
Market analysis and the development of microinsurance products adapted to the needs of the local population
Awareness campaigns

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Impact
Three phone masts are operated using solar generated power
1,000 villagers gain access to electricity
Health- and climate hazards are reduced
Beacon Lighthouse project with high transferability
Challenge
Only 5 % of all households are connected to the national grid
Energy supply through generators, petroleum furnaces and batteries is expensive and unhealthy
The lack of investment capacity of the population and small businesses hinders the spreading of solar energy
Approach
Mobile masts as anchor points for electrification
Energy provider operates Antenna (jointly developed operating model)
Sale of Energy to nearby villages via prepaid meter system
Uganda Solar power for mobile phone masts and households Kirchner Solar Group GmbH
08/2012 – 07/2014
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The Challenge
Inclusive business entrepreneurs face high barriers:
•scarcity of and low accessibility to local market information,
•lack of adequate financing mechanisms / access to finance,
•difficult legal and regulatory framework,
•a complex business and support environment.
Inclusive Business

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•BoP Sector Dialogues
•Inclusive Business Action Network
•Responsible and Inclusive Business Hubs

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BoP Sector Dialogues
The Idea
Inclusive business models, challenges and opportunities differ from sector to sector.
Within a sector, business models have significant commonalities enabling learning and cooperation between business representatives within the same sector.
The Approach Through hands-on business practitioner guide and workshop, inspire and enable business representatives – from start-up to established multinational – to develop, reflect on and enhance their own inclusive business model.

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BoP- Branchendialog Housing
BoP Sector Dialogues

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Inclusive Business Action Network
Aims at creating a home and single entry point to the global IB community, to
 Connect inclusive businesses, existing initiatives & support mechanisms of different stakeholders, investors, business accelerators
 Facilitate access to knowledge and information, trainings and courses
 Enable peer-learning and exchange formats
 Foster partnerships and collective action
 Provide access to support structures on the ground

23. GRACIAS