REGIONAL DEVELOPMENT STRATEGY EAST AFRICA Kenya,Uganda and Tanzania

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REGIONAL DEVELOPMENT STRATEGY EAST
AFRICA(Kenya,Uganda and Tanzania)
GBO Washington DC, June 25th.2004 Moses K.
Kibirige APDF
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East Africa
Kenya
Uganda
Tanzania
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Social Economic Data for East Africa
KENYA
UGANDA
TANZANIA
Population (m)
31
25
36
Life Expectancy-years
55
45
52
Rank in HDR
123
141
140
Population Below Poverty Line
42
55
42
Literacy Rate
75
69
68
Per Capita Income ()
350
240
280
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Characteristics of GBOs

• Traditionally donor funded
• Small size
• Limited business capabilities
• Weak systems of operation
• Informal business culture
• Lack access to markets,technical assistance,
  financing etc.

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SWOT analysis of GBOs
Strengths
Weaknesses
Opportunities

• Reach disadvantaged segments which traditional
  Businesses do not.
• Contract production
• Create jobs.
• Large scale production.
• Synergies with other players.

• Administration and Governance structure.
• Limitation to do business.
• Limited access to finance.
• Markets not developed.

• Local Community.
• Appropriate technology.
• Strategic alliances.
• Provide BDS from a central point.

Threats

• HIV/AIDS related deaths (cost labour)
• Globalisation-Markets
• High production costs
• Donor funds can be short term

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Criteria for Involvement with GBOs

• Potential to address poverty at the grassroots.
• Willingness/ability to strengthen in business.
• Linkages with service providers and dev.partners.
• Potential of strong Governance structures.
• Willing to have a more commercial approach.
• Willing to scale up.

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Identification of GBOs for Initial Engagement

• HoneyCare Africa Ltd.-Kenya/Tanzania
• Sustainable Healthcare Enterprise Foundation
  -Micro-Health Franchise-Kenya
• K-Rep.Dev.Agency-Microleasing -Kenya
• Approtec-Irrigation foot pumps-Kenya
• Kilombero-Linkages-a sugar estate-Tanzania
• AMFRI-Organic fruit export-Uganda

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GBOs Needs among other things

• Mixed Package of the following
• Technical assistance
• Capacity Building
• Business Development Services
• Funds-debt, equity, guarantees and grants

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The way-forward-SGBI program

• HUB-a network to coordinate delivery of the
  following
• Patient Capital-Debt finance.
• Grants/Technical Assistance-BDS.
• Endowment Fund Local approach
• Mentoring Group Set up
• Hand Holding approach-APDF and other BDS
  providers.

(Contd)
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The way-forward-SGBI program

• Development Partners-Complementing work.
• Linkages- Linking all activities in a GBO.

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Regional HUB Structure
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Key issues and Challenges

• Financing mechanism-Applicable funds to GBOs.
• Selection of GBOs to work with.
• Local representation APDF
• Sustainability-GBOs as commercial operations.
• Linkages-Between GBOs and multinationals

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Key issues and Challenges

• Impact measurement Monitoring
• Mentoring group Developing one
• BDS-Providers to work with (eg. Business Schools
  in Universities).
• Development Partners - To work with

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• Thank You