Using business to bring transformation and poverty alleviation

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Using business to bring transformation and poverty alleviation

The Good news

The role of enterprise as the best engine for poverty alleviation is fast becoming the accepted Othodoxy:

•DFID is now focused on being ‘private sector friendly’

‘The private sector is the engine of economic growth - creating jobs, increasing trade, providing goods and services to the poor and generating tax revenue to fund basic public services such as health and education.’

•Even in developed western economies such as the UK, small and medium sized enterprises are seen as the backbone of the economy

oMultiple funds are being created to fill the gap left by the troubled banks

oGovernments are looking for new ‘Social Investment’ models to make welfare budgets more efficient

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Using business to bring transformation and poverty alleviation

The Challenge now for tbn

• Many more players are getting involved in the sector

• People have noticed that the emerging markets are the best place to find growth:

• Africa’s economic output has doubled in the last decade

• Seven of the worlds fastest growing economies are in Africa, the other three are in Asia

• Investment is being diverted into these economies

If we want to be a part of these exciting developments, we need to work out where we can really add value

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Using business to bring transformation and poverty alleviation

Adding value through investment

However, whilst there is much talk about investing for the benefit of the poor, few have really yet much of a track record of doing it well and cost effectively:

•How do you find good entrepreneurs?

•How do you support them when skills are in such short supply?

•How do you do due diligence?

•How do you exit from an investment?

Many of these issues require technical assistance (about which Jerry will be speaking in a minute), before investment can really flow

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Using business to bring transformation and poverty alleviation

What we are working on:

• Building networks on the ground that can source good

investments, reference them and support them

• Prove that it can be done, and done to pragmatic, yet

professional, standards

• Promote these investments as references to the investment

community to unlock more capital into pro-poor enterprises

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Using business to bring transformation and poverty alleviation

What we are working on:

Sopyrwa

Pyrethrum processing in Rwanda

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.Working with the state owned VC to scale up production of natural insecticides

Using business to bring transformation and poverty alleviation

What we are working on

Lakeside Fish Farm

Providing a protein-rich food supply for local and international markets

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Using business to bring transformation and poverty alleviation

What we are working on

Gerum Cars

Assembling low cost vehicles designed for Afrcian roads

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Using business to bring transformation and poverty alleviation

JOBS AND SOCIAL IMPACT

Co-Investment Fund Incubator Technical Assistance

‘Angel’ Trainers

Local Investors

Grant Making Bodies incl. DfID & NGOs

Private Investors, Family Offices, DFIs & Other Institutional Investors

Membership

£ Investm

ent

Qualified Deal Flow

Access to Capital

Social/Financial Returns & Reporting

• Access to Capital

• Training

• Introductions

• Technical Assistance

Providing: • Events

• Workshops

• Connections

• Advocacy

NETWORK (HUB)

SME’s

Advisors Entrepreneurs

Membership

• Fundraising

• Fund Management

• Exits

• M & A

• Reporting

IMPACT INVESTMENT BANK

£ £ £

Providing:

Reporting & Monitoring

Social/Financial Returns & Reporting

Using business to bring transformation and poverty alleviation

How can you be involved?

• Find out where your expertise can be deployed to add the most value

• Integrate transformational activities as much as possible into your ‘day job’

• Take risks! Invest – either financially, or through providing services

• ‘Dragons Den’ / Investor hunt

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Using business to bring transformation and poverty alleviation

TBN members day – Dec 2011