Page 2 
•Company under private law, owned by the Federal Republic of Germany 
•Operations in Germany and over 130 countrie...
Page 3 
Facts and figures: human resources 
•16,510 employees worldwide 
•Over 3,200 staff in Germany 
•11,244 national pe...
Page 4 
Specialised Business Unit for the Private Sector Working together with businesses and foundations 
18/11/2014
Page 5 
Why partner with the private sector? 
Official development assistance (ODA) resources are not sufficient to achie...
Page 6 
3-pillar model for cooperation with businesses and foundations 
Commissions from the private sector Forming consor...
Page 7 
Successful cooperation with the private sector How do we achieve this together? 
•By cooperating closely when deve...
Page 8 
Forms of cooperation 
•Projects called ‘development partnerships’ 
•Partnerships with business chambers and associ...
Page 9 
What are Development Partnerships? 
Development Partnerships 
are partnerships between development agencies and t...
Page 10 
Local economic development 
Increase income and improved livelihood of local communities 
Mobilisation of reso...
Page 11 
Models of GIZ Development Partnerships 
Integrated Development Partnership 
Africa Facility 
Fund Fragile States ...
Page 12 
Sequence of a Development Partnership 
18.11.2014 
Step 1 
Step 2 
Step 3 
Step 4 
Step 5 
Step 6 
Submission of ...
Page 13 
Success factors 
Governance rules, clear rules of participation and application procedures 
Clearly defined fin...
Page 14 
Integrating the informal sector into the steel value chain 
Results 
Working conditions in the informal sector a...
Page 15 
DPP 
DPP
Page 16 
Microinsurance: 
small amounts, 
big results 
Munich Re 
Dec. 2006 – Sept. 2012 
Private: EUR 800,000 
Public: EU...
Page 17 
Impact 
Three phone masts are operated using solar generated power 
1,000 villagers gain access to electricity ...
Page 18 
The Challenge 
Inclusive business entrepreneurs face high barriers: 
•scarcity of and low accessibility to local ...
Page 19 
•BoP Sector Dialogues 
•Inclusive Business Action Network 
•Responsible and Inclusive Business Hubs
Page 20 
BoP Sector Dialogues 
The Idea 
Inclusive business models, challenges and opportunities differ from sector to sec...
Page 21 
BoP- Branchendialog Housing 
BoP Sector Dialogues
Page 22 
Inclusive Business Action Network 
Aims at creating a home and single entry point to the global IB community, to ...
GRACIAS
LAS 3 ‘C’ DE LAS ALIANZAS ESTRATÉGICAS. Complementariedad, corresponsabilidad y cooperación (Caso GIZ)
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LAS 3 ‘C’ DE LAS ALIANZAS ESTRATÉGICAS. Complementariedad, corresponsabilidad y cooperación (Caso GIZ)

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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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LAS 3 ‘C’ DE LAS ALIANZAS ESTRATÉGICAS. Complementariedad, corresponsabilidad y cooperación (Caso GIZ)

  1. 1. Page 2 •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
  2. 2. Page 3 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
  3. 3. Page 4 Specialised Business Unit for the Private Sector Working together with businesses and foundations 18/11/2014
  4. 4. Page 5 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
  5. 5. Page 6 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
  6. 6. Page 7 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
  7. 7. Page 8 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)
  8. 8. Page 9 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. 18.11.2014
  9. 9. Page 10 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
  10. 10. Page 11 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
  11. 11. Page 12 Sequence of a Development Partnership 18.11.2014 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.
  12. 12. Page 13 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
  13. 13. Page 14 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
  14. 14. Page 15 DPP DPP
  15. 15. Page 16 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
  16. 16. Page 17 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 18.11.2014
  17. 17. Page 18 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
  18. 18. Page 19 •BoP Sector Dialogues •Inclusive Business Action Network •Responsible and Inclusive Business Hubs
  19. 19. Page 20 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.
  20. 20. Page 21 BoP- Branchendialog Housing BoP Sector Dialogues
  21. 21. Page 22 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
  22. 22. GRACIAS

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