SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Innovation Against Poverty Private Sector Collaboration Jenny Åkerbäck

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1 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Innovation Against Poverty Private Sector Collaboration Jenny Åkerbäck

2 WHAT is Collaboration with the Private Sector?

3 Collaboration creates value addition Business goals Collaboration opportunities Development goals

4 Forms of collaboration Drivers of Change PPDP Challenge Funds Innovative Financing

5 PUBLIC PRIVATE DEVELOPMENT PARTNERSHIPS Swedish Transport Academy, Erbil, Iraq Initiated by Scania CV AB Partnership with UNIDO, Ministry of Labour and Social Affairs Kurdistan, Qanadeel Al Rafidain, MOLSA, Embassy of Sweden, Swedish Trade Council Operations and maintenance of heavy equipment in the sectors of transport, material handling, agricultural equipment, construction, etc. 4 yrs, total budget of 5,6 MUSD (Sida 2,8 MUSD)

6 PUBLIC PRIVATE DEVELOPMENT PARTNERSHIPS What s in it for Sida? Additional private sector contributions to development goals Raising companies awareness of global challenges Creation of jobs and income sources for local populations Transfer of know-how and modern technologies Improving working conditions in industry and agriculture Securing sustainability, for example by introducing environmental and social standards What s in it for businesses? Securing value chains; Environment & climate efficiency Health investments Capacity development Branding & good-will Communications Recruitment Competitive edge Market opportunity Long-term profit

7 Drivers of Change

8 Innovative Financing Unit for Loans and Guarantes To complement and stimulate other financial resources that have the potential to contribute to the goal of poverty reduction and sustainable development. The portfolio today: 10 billion SEK in a guarantee frame Around 3 billion SEK in guaranteed lending within 15 different strategies 20 approved guarantees, and 20 new projects in pipeline Example: Volume Guarante

9 Challenge Funds

10 CHALLENGE FUNDS What s in it for Sida? Find solutions to development challenges Fund specific purposes: (innovation, agribusiness, peace) Cost and risk sharing Leverage Outreach (BoP) Opportunities for targeting (women entrepreneurship, fragile environments) Reach scale Local entrepreneurship What s in it for businesses? Seed funding Investment funding Cost and risk sharing Leverage Technical resources Network Facilitates access to other funding

11 Innovations Against Poverty The Innovations Against Poverty Programme Sida challenges the private sector to develop products, services & business models that can benefit the people at the base of the pyramid (BoP) and contribute to fight poverty and climate change Business for Development

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13 CHALLENGE FUNDS Innovations Against Poverty Small Grant (SG) - The Explorative phase Large Grant (LG) The Research & Pilot phase Products, services or systems ready to be put to market test affordable & accessible by people in poverty The Launching & Scaling up phase Fund manager PwC

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15 Expected benefits & outcomes * Access to more affordable essential products & services for people living in poverty produced in a sustainable manner Solutions to climate & environmental challenges Access to smart solutions within the fields of health, infrastructure, energy, education or agriculture Additional income generation for poor people through employment and engagement as producers & suppliers

16 CHALLENGE FUNDS IAP Over 1000 applications from 67 countries 66 projects approved (from 26 countries) Health, agribusiness, energy, communications, finance.

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19 Lessons learnt from donor perspective No support for Early stage Entreprenurs Risky Business Entrepreneutial Mindset The People factor / Technical Support

20 Key insights from grantees Delays across the board Products to expensive or not appropriate for BoP Business models not right Finding suitable partners Competition superior Problematic customer acquisition

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22 CHALLENGE FUNDS: IAP AECF MAVC The Challenge IFP GIF Seed Alliance Amplify Change SSBF SWFF Powering Agriculture Launched / Sectors Any Agricultural, financial service, energy & technology Technology & ICT Any Peace building activities Any Technology & ICT Health, SRHR &Sanitation Any Water Energy & agriculture Regions Global Africa / South East Asia Global Bosnia Colombia Global Africa, Asia Pacific, Latin American and Caribbean Southern Africa / Asia Somalia Global Global Financial Support > SEK SEK in grants & loans < SEK < SEK < SEK Grants/ loans / equity investments SEK 3 windows with grants < SEK 3 windows with grants < SEK & SEK < SEK < SEK Technical Assistance Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Number of Cycles (will use other methods from now on to find projects) 2 1 Always open 13 Not started yet Not started yet 1 1 Number of approved (just started) 177 Not started yet Not started yet 16 (not yet entirely cleared) 11 Sidas Contribution SEK SEK SEK SEK SEK SEK SEK SEK Not yet clear SEK SEK Total Budget SEK SEK SEK SEK SEK SEK SEK Not yet clear Not yet clear SEK SEK Fund Manager PwC KPMG Hivos UM Sarajevo GIZ & Corporación Emprender GIF APNIC, LACNIC, AFRINIC Mannion Daniels Business Sweden USAID USAID Programme Manager at Sida Johanna Bark & Jenny Åkerbäck Partner/ Närskap Carol Bäckman & Carmen Lopez- Clavero, Intem/Geco Peter Linnér & Anna Öberg, Intem/ DemoMR Åsa Trulsson, UM/Bosnien & Hercegovina Rikard Sjöstrand, UM/Colombia Ola Pettersson, Partner/ Närskap Jens Karberg, Intem/Geco Eva Charlotte Roos, Intem/Social Maria Stridsman, Afrika/Hållbar Carol Bäckman, Intem/Geco Frida Rohde, Intem/Geco

23 Thank You!