November 2011 South Africa unveiled a Green Economy Accord to launch a partnership between the South African government, business community Resilient People, Resilient Planet: A future worth choosing. United Nations Secretary-General’s High-level Panel on Global Sustainability (2012). New York: United Nations “Green Jobs hold the promise of a triple dividend: sustainable enterprises; poverty reduction; and a job -centered economic recovery” Juan Somavia, ILO Director-General “If you think you will keep looking for jobs, you will never find it. If you create your own, then you can even end up employing other people to work for you. ” (Uganda)
Green and Inclusive Growth Key Drivers • New partnerships – – • Harnessing power of large firms – – • Small producers need new ideas and financing to help them adapt to climate change Urbanization opens new frontiers for microenterprises Changing formal education and training systems – – – • Value chains are important means of helping small suppliers adapt ‘green’ practices PPPs to help build green energy solutions Involving MSMEs – – • Employers, workers, foundations, NGOs, governments and academic institutions need to share ideas NGOs are important new force – especially to reach informal and disadvantaged communities Traditional systems focus on professions and skills needed for working in large public sector or corporate bureaucracies Green economy increases relative importance of technical and engineering skills Also needs ability to adapt quickly, think innovatively Entrepreneurship – – – Essential to turn the population bulge into an asset Needed to support adaptation to climate change Calls for special training , business coaching and financing
Large firms and inclusive growth - examples • CEMEX Mexico – Patrimonio Hoy provides financing with cement purchase – Construmex enables remitttance senders in the US build, buy or improve a house in Mexico – Started with grant funding from IADB’s Multilateral Investment Fund MIF • Endesa Brazil – Program to enable low-income customers to exchange their recyclable waste for credits on their electricity accounts • Sabritas leading Mexican snack foods producer owned by Pepsi. Co – Joined with IADB bring small informal farmers into its supply chain – Is now significantly scaling up initiative – By creating a risk-sharing model, the IDB worked to establish a new alliance between Agrofinanzas and Sabritas. Agrofinanzas will finance loans to producers; Sabritas will finance the costs related to supply chain management and will cover a portion of potential losses; and the IDB will provide a partial credit guarantee to further mitigate the underlying credit risk.
PPPs • Infrastructure Development Company (IDCOL) Bangladesh – – – • finances large private sector-sponsored infrastructure projects of $30 million and more in project size Through an Asian Development Fund grant of $83 million, IDCOL also can finance small and medium-sized infrastructure subprojects (SMIP) primarily located in rural and semi-urban areas, especially in renewable energy applications such as biomass and gas installations. These often use a microfinance-based, direct sales program, with biomass and gas installations under the technical lead of IDCOL Mexico’s PIAPPEM – promotes PPPs at the sub-national level. It is done in partnership with the IADB’s Multilateral Investment Fund MIF. The MIF grant of US$3, 930, 000 covers half of the cost of the program • MIF is extending this approach throughout the Americas – All combine market-rate loans with grants and guarantees that enable private infrastructure to reach into marginal markets
Small start-ups are also playing a central role • Social enterprise is a rapidly growing area – – – Butakoola Village Association for Development (BUVAD) is constructing water harvesting tanks using plastic PET bottles as bricks KSET Domestic Biogas Plants produce renewable fuel from organic biomass (kitchen waste) Nuru lights used its winnings from the World Bank's 2008 Lighting Africa competition to design a very affordable, adaptable LED light that can be powered by pedal, solar or the grid. It is sold by microentrepreneurs DMT Toilets produces, hires out and maintains safe, sanitary, portable toilets in West-Africa. Business aims to improve public health, sanitation and encourage social transformation via job opportunities. Jobs are directed to idle youth, and poor women. Toilets are placed in high traffic areas, such as bus stations and markets Grameen Shakti installs about 7, 000 solar home systems (SHS) per month and also runs other programs including Wind, Biogas, Organic Fertilizer, and Cooking Stoves. To date, GS has trained almost 3, , 000 technicians and 98, 000 of its customers to be SHS installers, and by 2015, GS plans to have created 100, 000 women entrepreneurs from its Grameen Technology Center (GTC) program
Entrepreneurship and Innovation are Key • What is needed to encourage more such creative solutions? • And once launched, how can successful ideas be taken to scale?
There is a serious finance gap COMMERCIAL BANKS No finance for SME investments !!!!! MICROFINANCE INSTITUTIONS Mini: 100, 000 to 1 Mill. $ Maxi: 2, 000
More green and inclusive jobs requires special tools • Informal firms and small producers need micro-credit, insurance, leasing products, production advice and assistance with transition to formal • Small formal sector firms need working capital, ability to use moveable assets as collateral, longer term loans for expansion and technical advice • Large firms need partners to help them connect with needs of smaller suppliers and communities • But all need innovative, problem solving staff with the right skill set
Effective MSME programs combine several tools • IIC’s Green. PYME is one example – provides the expertise, tools, as well as the technological and financial support SMEs need to implement energy efficiency measures – Delivered in partnership with local universities, business associations • SMES are invited to attend informational workshops. These are followed with free energy audits to identify energy saving actions as well as technical experts as required (then firm shares cost) – Investments that may be needed can be funded via loans from IIC – Program funded via trust funds from Nordic Fund, Korea and others • Many other similar programs – delivery through local non-governmental partner appears to enhance success – Use of grants to improve productivity followed by market priced financing
Strauss Center University of Texas CCAPS interactive mapping tool 2012
Youth Bulge: Impact on Africa 1. 5 B
Increasing Entrepreneurship • Effective approaches also directly involve private sector • Most focus on raising awareness of potential, basic business skills training and mentoring/coaching • Most sustainable connect long term business interest with outcomes of program
Microsoft Youth Empowerment Program • Provided comprehensive skills training to disadvantaged youth by combining ICT, life skills and entrepreneurship training – in Kenya, Nigeria, Senegal, Tanzania • Outcomes: – Approx. 10, 000 youth trained and assisted with job placement services, internships, community service, and entrepreneurship opportunities – Over 60% of beneficiaries placed in internships, jobs, incomegenerating self-employment, and/or community service activities • Microsoft and IYF recently developed “Build Your Business” entrepreneurship e-learning modules – piloted in Nigeria and to be rolled out throughout SSA
Samsung Real Dreams Program • Empowered youth by providing the opportunities, tools and training – in Kenya, Nigeria, South Africa, Egypt • Provided practical job skills and experience in growth areas of computer literacy, web design, ICT, business process outsourcing and office management • Outcomes: – Over 7, 000 youth empowered through employment and entrepreneurship training interventions – Nearly 6, 500 youth completed training (91% completion rate) – Between 63 -81% of graduates become employed or self-employed within six months of completing training – Over 70% of graduates reported earning more income as a result of participating in the program
Kenya Impact Evaluation • Supported by the World Bank and working with the African Center for Women in ICT (ACWICT) in Kenya • Targets 1, 400 disadvantaged young women from informal settlements in Nairobi – building on Microsoft and Samsung program models • Using control and treatment groups, it is to examine the impact of : 1. Life skills on youth employment outcomes 2. Comprehensive employability skills model (combining technical + life + internship + job placement support) on youth employment outcomes
A Tested Model 111, 000 trained OVER 50% placed in jobs 22 countries 50 NGOs
MIF and IYF Partnership Partners with 10 years of experience in youth employment through entra 21 in LAC • Funded 100+ pilot projects in youth employment and entrepreneurship • entra 21 reaching 110, 000 youth in 22 countries • Joint initiatives with corporate partners • Network of 100 youth training NGOs • Access to local and national governments • Specialized teams in youth development and labor market • Created internationally validated life skills development program • Generated results, evaluations, surveys, and studies on project outcomes
10 Years Experience Assess market demands - Survey employers & private sector associations - Diagnose youth needs - Develop curricula to respond to youth and employer needs Job placement services - Career counseling Job seeking skills Access to databases Coaching on interviewing and CVs - Outreach to employers & matching youth with vacancies Youth employment training - Technical training Life skills education Business planning ICT literacy Math/reading skills Measure outcomes - Employment rates and quality of employment - Employer satisfaction Internships - Incorporate into training cycle to get real work experience
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