Alice Ruhweza, UNDP Africa Facility for Inclusive Markets

1. 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

2. Development Context
Year 2015: Sendai, AAAA, SDGs, COP21, WHS 2016
2000 - 2015
2016 - 2030
Role of the private sector
Charity
CSR
Core business

3. 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

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

5. Africa Facility for Inclusive
Markets (AFIM):
Towards Sustainable and
Resilient Food Value Chains
UNDP Regional Service Center for Africa

6. 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.

7. 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

8. 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)

9. The Systems Approach to value chains
02-Mar-2016 9

10. 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

11. 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

12. Catalytic grant process
02-Mar-2016 African Facility for Inclusive Markets (AFIM) 12
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

13. Very specific and targeted project selection
criteria
02-Mar-2016 African Facility for Inclusive Markets (AFIM) 13

14. 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

15. 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

16. 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

17. • 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

18. 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

19. 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

20. 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