Ilcf launch co-fo_elson_24-sept-2012.pptx


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Ilcf launch co-fo_elson_24-sept-2012.pptx

  1. 1. Investing in Locally Controlled Forests Broadening the financial basis for Sustainable Forest Management Opening Peter Dewees, PROFOR Chris Buss, IUCN Main presentation Dominic Elson (author of guide), seventythree Panellists Peter de Marsh, IFFA Sophie Grouwels, FAO
  2. 2. The process to develop the guide ! •  Growing Forest Partnerships •  Initiative with WB, FAO, IIED & IUCN •  Local control at centre of initiative •  The Forest Dialogue •  Pro-poor commercial forestry •  Intensively managed planted forests •  World Bank / Profor investment Forum •  Mobilising investment in tree and forest landscapes •  Forest connect •  Enterprise development
  3. 3. The process to develop the guide ! •  Objectives of the dialogue •  Define the key steps that are required for successful deals for ILCF •  Identify concrete actions for developing new partnerships •  Understand how to improve financing for ILCF
  4. 4. The process to develop the guide !•  Scoping dialogue •  Rights at the centre •  Nepal, Macedonia, Panama •  Bringing in the investors •  London •  Enhancement of ideas from the field •  Kenya, Burkina Faso, Indonesia •  300+ people
  5. 5. Launch of the ! ILCF Guide! Dominic Elson! Seventy Three Pte.Ltd. Rome! 24th September 2012 CoFo / World Forest Week
  6. 6. Overview! •  The case for ILCF •  Understanding investment •  Ingredients for success •  The Process •  Next steps
  7. 7. Benefits of Investing in Locally Controlled Forestry
  8. 8. Not to be confused with CSR…!
  9. 9. Changing the system! Capital Natural Resources Seeks labourand needs Rights holders Natural Resources Capital & partnerships Manage and seek
  10. 10. Theory of Change! Conditions Investment Outputs Outcome Local control process + Good enough governance + Fiscal policy changes Better land use management over time Improved production: Food Fuel Fibre Increased tax. GDP, jobs, household saving
  11. 11. Understanding investment! Investment {inˈves(t)məәnt} a.  The action or process of investing money for profit or material result b.  A thing that is worth buying because it may be profitable or useful in the future c.  An act of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result [Oxford American Dictionary]
  12. 12. The donor approach to ILCF! Lobby local Government Training Community Development R&D Sending samples Proof of concept Capital equipment Marketing Working capital $ 5,000 $ 100,000 Outputs Non viable business Return too low for investor Cannot afford bank loan Not able to scale up Dependent on grants & donors 5% Return on Investment: Activities
  13. 13. Using investment ‘layers’ for ILCF! Lobby local Government Training Community Development R&D Sending samples Proof of concept $ 5,000 $ 50,000 Outputs: public goods Return on Investment: Enabling Investment Capital equipment Marketing Working capital Asset Investment $ 50,000 10% Validation of concept Capacity to deliver Market discovery Decent return for investor Viable business Blueprint for others to follow Able to scale up Outputs: private goods
  14. 14. The SME financing gap! Firm Size CapitalRequired Micro Small Medium bank loans, lease financing, trade finance/factoring private equity structured finance ? microfinance Formal, bank customersinformal, MFI customers The Gap
  15. 15. Tactical approaches! Task Constraints Action Influence the external conditions •  Governance •  Tenure •  Isolation Organise through cooperatives, associations & federations Improve the internal conditions •  Organisational structure •  Sufficient capability to execute the plan Seek & manage partnerships
  16. 16. Roadmap to success! Preparation Negotiation Performance Management Scale-up Enterprise Development Incubation Mainstream Investment Enabling Investments Asset Investments Proposition Establishment Validation grants seed capital equity loans Impact Investment
  17. 17. Next steps!
  18. 18. THANK YOU Elson, D.(2012), Guide to investing in locally controlled forestry, Growing Forest Partnerships in association with FAO, IIED, IUCN, The Forest Dialogue and the World Bank. IIED, London, UK.