25 June 2019. Cairo, Egypt. Food Technology in Supporting Entrepreneurs of Food Manufacturing Sectors through the Lens of Egypt Vision 2030. Organised by the National Research Center (NRC) Cairo-Dokki Presentation by Prof. Dr. Ahmed HUZAYYIN Cleantech Arabia and Chemonics Egypt

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‫برنامج‬‫إبدأ‬
‫األول‬ ‫اليوم‬-٢٨‫إبريل‬٢٠١٧
‫إبدأ‬‫إبدأ‬

2. Branched Value Chains – In Brief
• Proposes a model in which startups and small growing
businesses (SGBs) can be supported to create branched
value chains in which they
➢ Utilize by-products from the value chains to create value added
in entirely different markets
➢ Offer services and products that are absorbed in in the value
chain to increase its sustainability
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• Branched value chains are hoped provided higher return on resources in a macroscopic
manner
• The model complements well stablished principles of value chain development, while
leveraging innovation and agility of startups and SGBs towards higher value addition

3. Branched Value Chains – In Brief
• The model was mainly developed with various project
with the UNIDO
• It is an invitation for a discussion and opportunity for
us to learn
• It is a mix of practice and theory as well as reflections
on over 150 startups and small growing businesses in
past three years (with UNIDO, ILO, and GIZ)
• It is a product of the Egyptian market but can be
relevant to other contexts
• It is work in progress
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4. The emerging role of startups and SGBs in development
• An emerging paradigm in development is to
support startups and SGBs which in directly
contributes to development goals
• Startups and SGBs in well selected sectors such
as waste management, sustainable energy, and
agro-industries can contribute to job creation
and local economic development
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• Advances in technologies, materials, and access to knowledge has enabled startups and
SGBs to perfect manufacturing at a smaller scale, with less capital and resources in high
value added opportunities
Democratization of manufacturing

5. The emerging role of startups and SGBs in development
• Our statistics currently shows that startups
and small growing businesses are leading the
market in various sectors such as waste
management and sustainable energy
• Experience in Egypt shows that channeling
innovation from startups to carefully
selection of business opportunities maximizes
both market success and development
impact
• In turbulent and changing markets, startups
and SGBs have the edge
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Business Opportunity Mapping
Startups in PV sector
have brought to the
market triple what
the government has
together with large
firms
Waste management
startups create 1 job for
each 10,000 EGP injected
within one year, they can
serve rural, urban and
international markets
equally well

6. Branched value chain and the return on resources
• Increasing the efficiency of a value chain and
extending it is an effective way of industrial
development
• Yet, it is the maximization of return on resources
that is the ultimate goal
• In a value chain, capital, energy, water, and
material moves linearly from the natural resource
to the end market increasing value added
• Increasing the efficiency and integrating more
firms within a value chain increases return on
resources
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Traders
Sugarcane
Factories
refineries
retailers
Net value added to the chain
Sugarcane
Value chain

7. Branched value chain and the return on resources
• By-products (waste) will ultimately be generated along the process
• Resources will be absorbed through services and products will be absorbed within the
value chain
• Innovation can lead high value added businesses that are forward and/or backward
linked to the value chain,
• Yet targeting or steaming from completely different markets
• This will ultimately increase value added on the resources as well as the productivity of
the value chain
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8. Branched value, benefits
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Palm dates
farming
traders
packing
Paste production
manufacturers
retailers
Exporters
fronds to boxes Second grade to feed Left overs to drying
Date pits to feed
Date pits to bakeries
Trimming services and bio
pesticides Sustainable packaging
Renewable energy
• Increased value added on resource, increased revenues on waste (by-products), more
sustainable production (through services and products)

9. The evolution of the model; the how?
9
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
Systematic mapping of
value chains and main
economic activities
Systematic mapping
to ensure linkages of
opportunities and
value chains
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
Persistent up climb
of the value added
stairway

10. The evolution of the model; the how?
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Systematic mapping of
value chains and main
economic activities

11. The evolution of the model; the how?
11
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
Systematic mapping of
value chains and main
economic activities
Systematic mapping
to ensure linkages of
opportunities and
value chains
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
Persistent up climb
of the value added
stairway

12. The evolution of the model; the how?
12
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
• Waste management (Sohaj, Qena,
Luxor, and Aswan)
• Renewable Energy (Suez, Luxor)
• Sustainable agriculture and food
production (Suez, Sharqiya, Sohaj,
Luxor)

13. The evolution of the model; the how?
13
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
Systematic mapping of
value chains and main
economic activities
Systematic mapping
to ensure linkages of
opportunities and
value chains
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
Persistent up climb
of the value added
stairway

14. The evolution of the model; the how?
14
• Integration of the strength and extension of linkages in a methodological manner
Systematic mapping
to ensure linkages of
opportunities and
value chains

15. The evolution of the model; the how?
15
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
Systematic mapping of
value chains and main
economic activities
Systematic mapping
to ensure linkages of
opportunities and
value chains
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
Persistent up climb
of the value added
stairway

16. The evolution of the model; the how?
16
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
• The value chain of innovation must be
supported at all stages
➢ Startups
➢ Micro to small
➢ Small to medium
• Methodologies needs to be in various settings and sectors as well as measured against
specific KPIs
➢ Startups and micro (1 year - 30-40k including prototyping – can capture 1-2 times in investments)
➢ Small to medium (most missing – only piloted in sustainable energy in Cairo)

17. The evolution of the model; the how?
17
Systematic business
opportunity mapping to
ensure economic and
social objectives are met
Systematic mapping of
value chains and main
economic activities
Systematic mapping
to ensure linkages of
opportunities and
value chains
Startups support
mechanisms that
are transferable
and sector specific
Micro to small
support
mechanisms that
are transferable
Small to medium
support
mechanisms that
are transferable
Persistent up climb
of the value added
stairway

18. The evolution of the model; the how?
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• The Egyptian economy remains one of an extremely low value added
• Egyptian startups and SGBs are no exception
• We have climbed a step or two, but we are far from where we should
be
Persistent up climb
of the value added
stairway
Bioenergy
Egypt
(Delta)
Ser Elard
(Qena)
FeedWaStafeed
Sohaj
?

19. How it should be; aiming high
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Palm dates
farming
traders
packing
Paste production
manufacturers
retailers
Exporters
fronds to boxes Second grade to feed Left overs to drying
Date pits to feed
Date pits to bakeries
Argoon to bags
fronds to fuel
Syrup to feed
Syrup to food
Dips to food
Syrup to food
industry
Pits to cosmetics
Pits to pharmaceuticals
Valueadded

20. Case study; Sugar cane in Luxor
• Well tested methodologies of business opportunity and value chain mapping
➢ Methodological ways for determining value chains (usually in Egypt they are under developed)
➢ Methodological ways for mapping business opportunities that are forward and/or backward linked to
the mapped value chain
• Well tested methodologies for startups and small growing businesses support (along the
innovation value chains)
• The quest for value added
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