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Investing in performance


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A multi-stakeholder dialogue for more impactful public-private partnerships

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Investing in performance

  1. 1. P1 INVESTING IN PERFORMANCE A multi-stakeholder dialogue for more impactful public-private partnerships
  2. 2. New financial models, public-private coalitions, result- based payments to reach scale and impact. 9:00-11:45: Launch of Dialogue • Framing of the Dialogue • Opening statements • Challenge Interventions • Showcase examples 10:40-11:00: Brief remarks from key thought leaders 10:40-11:15: Break and Networking 11:15-13:00: Investment Prospects and closing thoughts 13:00-14:00: Lunch Measuring and monitoring performance through result- based models 14:00-15:00: Workshops • Workshop 1: Carbon & water measurement through farming practices • Workshop 2: Up-scaling climate-smart dairy solutions • Workshop 3: Monitoring farmers’ empowerment and the role of women 15:00-16:00: Plenary session AGENDA MORNING SESSION AFTERNOON SESSION FAMILY FARMING SUSTAINABLE SOURCING LANDSCAPE MANAGEMENT
  3. 3. FRAMING OF THE DIALOGUE Tony Simons Director General of ICRAF Bernard Giraud President of Livelihoods Venture
  4. 4. 750 expert respondents Business, Government, Civil Society Revealed 29 Key Global Risks Risks in 5 categories: - Economic risks - Environmental risks - Geo-political risks - Social risks - Technological risks Looks at: (a) past trends (b) current risks, and (c) 10 year forward horizon
  5. 5. Whilst risks are important ……… What about opportunities? - how can we use performance metrics to drive positive change?
  6. 6. ACTOR Risks Rewards Small-holder Farmers NGOs, CBOs Input Suppliers Product Off-takers Service Off-takers Processors, Retailers Sub-national Authorities National Governments Consumers Investors, Financers *** *** P A R T N E R S H I P S P A R T N E R S H I P S
  7. 7. Knowledge Evidence Analyses Technologies Practices Methods Partnerships Investments Sharing Designs Plans Metrics SUCCESSFUL IMPLEMENTATION & PERFORMANCE Capacities Communities Skills
  10. 10. Soil Carbon (30m x 30m) Can guide better decisions
  12. 12. OPENING STATEMENTS P16 Mr Willy Bett Minister of Agriculture of Kenya
  13. 13. OPENING STATEMENTS P17 Dr Mohamed Ait Kadi President of the General Council of Agricultural Development of Morocco
  14. 14. Initiative for the Adaptation of the African Agriculture to Climate Change ("AAA")
  15. 15. AAA Presentation for NY v18Sept16v2.pptx 19 After COP21 success in Paris, high expectations for Marrakesh COP22, especially for Africa COP21 : a historic milestone in the fight against climate change COP22 : strong expectations to make it a "COP for action" but also a "COP for Africa" Translate the progress achieved in Paris into reality Target to limit global warming to 2°C officially adopted with aim for 1.5°C At least $100 B / year to support developing countries Pledge from developed countries Place the most vulnerable regions, especially Africa at the core of the negotiations Despite mentions of food security for the first time in the Paris Agreement, Agriculture has never been discussed as a solution in climate negotiations
  16. 16. AAA Presentation for NY v18Sept16v2.pptx 20 Agriculture Features Very Prominently in the INDCs of African Countries A majority of African countries included agriculture both under Adaptation and Mitigation in the INDCs, covering both cropping and livestock systems.
  17. 17. AAA Presentation for NY v18Sept16v2.pptx 21 Climate Change Impacts on Agricultural Productivity Are Likely to Be Strongly Negative Overall – and African Agriculture Highly Vulnerable Source: UNEP/GRID-Arendal Maps and Graphics Library, Wheeler 2011 Projected Changes in Agricultural Productivity by 2080 Global Ranking of Vulnerability to Losses in Agricultural Productivity Agricultural productivity will come under pressure from Climate Change, with large parts of Africa expected to experience downward yield pressure of above 15%. When factoring in vulnerability and coping capacity into expected losses in agricultural productivity, African countries rank among the most vulnerable.
  19. 19. AAA Presentation for NY v18Sept16v2.pptx 23 "AAA” Initiative is the drive to enhance the Adaptation of African Agriculture I A stronger collective voice for the adaptation of African agriculture to climate change Increased funding I.1 Simplified access to climate funds I.3 Climate funds monitoring I.2 Advocacy Solutions Contribute to the Global Climate Action Agenda and support "AAA" projects II Agricultural Water management II.2 Climate risk management II.3 Financing solutions II.4 Soils management II.1 Leverage the Instruments recommended by the UNFCCC Technology transfers Capacity building South-South cooperation "AAA"
  20. 20. AAA Presentation for NY v18Sept16v2.pptx 24 The "AAA" Initiative echoes the commitments made by African Leaders The Abidjan Declaration The Dakar Conference The Comprehensive Africa Agricultural Development Program The Adaptation in Africa Initiative Ensuring resilient agricultural development in Africa Putting agriculture at the center of African public policies Defining a roadmap for the transformation of agriculture in Africa April 2016 2003 (Maputo Declaration) October 2015Announced in Dec. 2015 Ensuring resilient economic development for Africa, notably in the agricultural sector 5 key principles • Enable African ownership and leadership • Ensure accountability and transparency • Ensure inclusion • Leverage regional complementarities • Evidence-based planning and decision making processes 5 priorities: • Set up multiple nutrition programs • Improve agricultural productivity • Develop agricultural activities (value chain approach) • Increase funding for agriculture • Support the inclusion of women and young people 4 main objectives • Scale-up adaptation-related activities in Africa • Policy and institutional capacity building • Increase investments and funding • Improve climate information services 3 opportunities for action • Build Governments' capacities • Develop climate resilient agricultural policies • Reinforce financial and technical support to adaptation African initiatives for agriculture and adaptation Political statements for agriculture and adaptation in Africa
  21. 21. AAA Presentation for NY v18Sept16v2.pptx 25 The "AAA" initiative contributes to the achievement of Sustainable Development Goals Core Strong link Indirect link Increase of farmers revenues Food security for all Better nutrition Impact on education in rural areas Impact on women employment and education Multiplier effect of agricultural GNP on the economy South-South cooperation and PPP Limitation of rural exodus Improved agricultural water mngt Mitigation and adaptation to CC Soils, forests and natural ecosystems conservation Governance capacity building Technical and financial innovations Improved standards of living in rural areas Sustainability of agricultural output
  22. 22. AAA Presentation for NY v18Sept16v2.pptx 26 The "AAA" initiative will be fostered by a global alliance at COP22 African Governments Development Finance Institutions Scientific Community NGOs & Corporate (projects holders) The syndication process is ongoing – additional supports are still being rallied Gambia Guinea Conakry Lesotho Mali Mozambique NigerMauritania Equatorial Guinea Nigeria Senegal South Soudan Seychelles TogoRwanda Swaziland Sao Tomé EgyptBenin Burkina Faso Burundi Central African Rep. Ivory Coast GabonCameroon Cape Verde
  23. 23. P28 INVESTING IN PERFORMANCE A multi-stakeholder dialogue for more impactful public-private partnerships
  24. 24. CHALLENGE INTERVENTIONS P29 Prof. Judi Wakhungu Minister of Environment of Kenya Emmanuel Faber CEO of Danone Group Mette Wilkie Director, Division of Environmental Policy Implementation, UNEP
  25. 25. P30 INVESTING IN PERFORMANCE A multi-stakeholder dialogue for more impactful public-private partnerships
  27. 27. P32 THE LIVELIHOODS MOUNT ELGON PROJECT An innovative partnership and investment model • Improve the livelihood of 30,000 farmers and their families • Create economic value for the market and the local economy • Increase the resilience of the natural ecosystem
  28. 28. A coalition between an impact investment Fund, an NGO and a dairy company THE LIVELIHOODS MOUNT ELGON PROJECT P33 Bernard Giraud President of Livelihoods Wangu Mutua Deputy Regional Director John Gethi Director of Milk Procurement
  29. 29. Why is it so difficult to make them sustainable? INVESTMENT IN FAMILY FARMING P34 Complexity of projects; Aggregating farmers Time lag between investments and ROI Narrow approach; focus on one aspect of supply chain ROI not at market standards TODAY’S MAIN CHALLENGES Create a coalition between private/public sector/NGOs Create a financial vehicle with long-term investment Holistic approach focusing on the wider ecosystem Results-based approach TOMORROW’S OPPORTUNITIES
  30. 30. Our investment model LIVELIHOODS FUNDS P35 Maximize value creation for farmers Monetize externalities Invest up-front
  31. 31. IMPROVE LIVELIHOODS Increase yields and revenues for 30,000 farmers Economy, Social and Environment are inter-connected THE LIVELIHOODS MOUNT ELGON PROJECT P36 PRESERVE WATER RESOURCES Preserve watershed and Lake Victoria with Government SECURE MILK SOURCING Extend milk collection area with good quality and high volumes for Brookside Dairy MILK PRODUCTION From 5,000 to 135,000l in 5 years FARMERS + Milk revenue +30% food and cash crops WATER Preserve watershed & reduce soil erosion CLIMATE 1 million t CO2 seq. in soil and cow farms
  32. 32. • Efficient agroforestry model • Affordable and replicable techniques • Farmers are the key actors: 1200 groups • Structured approach to project management and monitoring Key learning Cooperation with an investment fund and the private sector required mutual understanding and trust building The key role of an NGO : VI Agroforestry implements the project THE MOUNT ELGON COALITION P37
  33. 33. • Investments in milk collection and storage • Commitment to purchase all milk • Milk processing Key learning Working at farm level is a key lever to increase productivity and farmer revenue: this is what the Mt Elgon project is about Leverage market power : Brookside collects milk and supports cooperatives THE MOUNT ELGON COALITION P38
  34. 34. • Up-front financing • Return on investment: carbon revenue and fees on milk production • Impact measurement Key learning Quality of project partners and alignment on objectives are a key success factor A result-based model : Livelihoods Fund invests and co-designs THE MOUNT ELGON COALITION P39
  35. 35. LIVELIHOODS FUNDS P40 GUATEMALA • Agroforestry PERU • Efficient cookstoves KENYA • Milk • Agroforestry • Efficient cookstoves SENEGAL • Mangroves INDONESIA • Palm oil • Agroforestry INDIA • Mint • Agroforestry • Mangroves BURKINA FASO • Efficient cookstoves • Agroforestry IVORY COAST • Cocoa MADAGASCAR • Vanilla MEXICO • Sugar • Watershed BRAZIL • Watershed MOROCCO • Milk
  38. 38. P43 LIVESTOCKWORKS PROGRAM LivestockWORKS is a unique innovative & sustainable livestock value chain in the NRT Conservancies.
  39. 39. Northern Rangelands Trading Limited Overview of GrazingWORKS Garry Cullen, CEO Patrick Ekodere, GrazingWORKS Director INVESTING IN PERFORMANCE ICRAF CAMPUS, NAIROBI, KENYA Wednesday, October 12, 2016 44
  40. 40. 45 Pastoralist survival in Northern Kenya Issues: • Insecurity • Few sources of formal commercial income • Land degradation from overgrazing • Few and far off markets • Cyclic drought Resulting in: • Poverty rate ranging from 72% to 83% • Malnutrition Populated by communities that depend on livestock for survival
  41. 41. 46 The birth of a revolutionary idea 12 years ago.... Northern Rangelands Trust • 33 conservancies formed • 43,900 km2 covered Conservancies bring: • Structure and governance • Peace and Stability • Dignity to the people
  42. 42. 47 NRT Conservancies transform lives, secure peace and conserve natural resources 480,000 people . 15 Ethnic groups
  43. 43. 48 The need to provide a commercial outlet to the conservancies led to the creation of NRTT NRT Trading’s purpose is to identify, incubate, pilot and scale sustainable businesses within the NRT Conservancies. 1) We incubate and run businesses that make a profit and enable Conservancies to access markets (GrazingWORKS, BeadWORKS) 2) We enable the Conservancies and their people to start and run their own businesses and earn an income (Tourism, Saccos, etc)
  44. 44. 49 The main resource that communities needed assistance with was their cattle • Limited access to markets with long journeys and frustration • Need for diversification of income • Grazing management plans to increase grass available
  45. 45. 50 The GrazingWORKS Business creates markets for Conservancy cattle • We purchase cattle from conservancies, fatten them and deliver them to market • Inculcate market based production and marketing • Conservancies are paid a premium of KES 3000 per animal purchased for development works • We work with NRT to create grazing plans in the conservancies
  46. 46. 51 Jan 2015 to date, we have contributed to all levels of the local economy • Pastoralists: •3,600+ sellers and 21,000+ indirect beneficiaries • KES 160 million+ in cattle purchased • Contributions to Conservancies: KES 14 million+ • County Governments (Cess): KES 2 million+ • Cattle sales: KES 100 million+ • Introduced SACCOs and savings facilities
  47. 47. 52 Challenges we have met along the way Mindset that cattle are the only measurement of wealth. Needs to change to allow their income to diversify Marketing and disease challenges Diminishing grass and vegetation cover
  48. 48. 53 There is a lot of scope for improvement Increase the throughput of cattle Change mindset from quantity to quality Animal husbandry and disease diagnosis Integration of morans into economic system
  49. 49. 54 All this has been made possible by the support of The Nature Conservancy USAid County governments and Samburu, Isiolo, Marsabit and Laikipia The National Government
  50. 50. 55 The future holds promise We would like to explore : • Large scale storage of feed for drought mitigation • Establishment of grassbanks • Creation of export markets for the cattle Welcome the government, and all stakeholders to engage with us Thank You!
  51. 51. P56 INVESTING IN PERFORMANCE A multi-stakeholder dialogue for more impactful public-private partnerships
  52. 52. LEVERAGE MARKET CONNECTION & INCLUSIVE DEVELOPMENT How to leverage connection to markets to create mutual value for both smallholder farmers and the private sector? ​ BREAK THE SILOS What are the key success factors and the challenges for efficient coalitions between the private sector, NGOs and governments? How to join forces, combine resources and skills to design, implement and monitor impactful projects. MORE FOR A BUCK How to develop new financial models mixing private and public funding ? From impact investing to result-based payment to hybrid financing, what are the key conditions to encourage those new models? INVESTMENT PROSPECTS Groups 1 & 2 Groups 3 & 4 Groups 5 & 6
  53. 53. P58 INVESTING IN PERFORMANCE A multi-stakeholder dialogue for more impactful public-private partnerships