JICAs Support Program to BoP/Inclusive Business

Office for Private Sector Partnership

JICAs Role in Private Sector Partnership Activities

Project Development
- Assistance in Policy Making - Feasibility Study for private-led projects (PPP, BOP and SME)

Enabling Environment
- T/A for Strengthening PPP Legal/Regulatory Framework - Assistance to Related Infrastructure Development - Connecting private entities with Governments, NGO and other important development partners - Helps increase reliability and credibility to private entitys activities

Financing
- Equity/Debt Finance for Private Projects - Related advisory services for both private & public sectors
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JICAs Support to BOP/Inclusive Business

JICAs support program started in 2010.
Research & Development
Development of Business Model

Business Plan

Project Implementation

Growth

JICAs support program for Preparatory Survey (F/S)

Study Cost : Max JPY 50mil (USD 0.6 mil.) Study Duration : Max 3 years Call for Proposals : Biannual Open to only Japanese Companies, but promoting partnership with local entities Has held 4 calls for proposals. Collected 340 proposals and supporting 65 projects in mostly Asia and Africa

JICAs financing scheme

(Private Sector Investment Finance) Can either provide debt or equity finance to the business

JICAs TA program

To build up environment to facilitate and accelerate inclusive business

E.g. Education to the BoP, regulatory reform, etc.

Examples of businesses in alliance with JICA Yukiguni Maitake, Co. Ltd

~Production of mung beans with BoP

Need for alternative resource for mung bean for their beansprout production In alliance with Grameen, the company employed over 8,000 BoPs in the value chain While bigger beans are exported to Japan, smaller pieces will be sold at low prices to BoP The business doubled income of BoP and empowered women through their employment First batch of mung bean produced was exported to Japan in December 2012

Organic Solutions Japan

~Microbial products for toilet and fertilization

Developed microbial products as toilet sanitizer and fertilizer, with local ingredients such as rice and maize Expected to improve hygiene in elementary school, hospital, health school and in slums Holds hygiene promotion with the relevant ministry in Rwanda Tied up with community health workers and promoted hygiene education with their products Provide technical assistance for farmers Has already opened a local entity, and looking to scale up the business

Critical factors for success ~ Lessons so far

Local Partners

Access to Finance

Effective business creation

Critical factors for success

Regulatory Clearance
Optimum Pricing and Target Selection Education of BoPs

Future Direction of JICAs Support in BOP/Inclusive Business

Continuous support through F/S Program
Continue support for preparation of F/S to help realize successful businesses

Financing
The scale of business is sometimes too small for DFIs to finance (= Missing Middle) Introduction of innovative financing mechanisms (fund, etc.) to facilitate quicker and easier funding to smaller business

Strengthening of IB ecosystem
JICAs strength lies in the network with governments in developing countries To create an investor friendly environment through JICAs technical assistance 6

Impact Assessment
Impact assessment of IB is a must when looking for alternative financing resources (impact funding) JICA needs to ensure each business which JICA supports has relevance with 6 developmental impact

Preparatory Survey (BOP Business) List of Selected Projects (1)

Country
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Project Name
Utilization of slag for fertilizer in peat swamp area to improve agricultural productivity Hybrid type education business in Indonesia Social investment for the development of BOP business

Project Outline
The business intends to prevail fertilizer using slag in peat bog areas in Sumatra and Kalimantan. This business intends to develop a hybrid education system utilizing mobile handsets and ordinary face-to-face classes. The proponent manages social investment fund raised by Japanese companies and individuals. One of the fund's investee projects is wild honey business. The project intends to introduce apiculture to maintain the sustainability of wild honey business and improve the added value. The project intends to develop a business model that includes the production of sweet sorghum and bio ethanol and its sales. The project intends to install rainwater tanks in rural Bangladesh to help overcome the problem of arsenic contamination. It will promote the introduction by using microfinance as a means of financial support to BOP. The objectives of the business are to introduce micro utility system comprised of solar power generation system, improved furnace and biogas collection system. The carbon gas saved by the introduction of the system will be reclaimed to obtain CDM credit, which will be utilized to subsidize the purchase of the system. The objectives of the business are to introduce water purification tablet in the project area by establishing its own supply chain. The objectives of the business are to sell water purification chemicals and install water purifier in rural areas of Madhya Pradesh, India. At the same time, the business will incorporate rural women as vendors and aims to create job and improve their social economic status. The objectives of the business are to introduce stationary for self-employed women, such as sales note or accounting books to improve their marketing skills and increase their income. The objectives of the business are to introduce community-level water supply system in non-supply areas in Sri Lanka and ensure the safe water supply. The business will establish the small-scale supply system at the level of communities.

Indonesia Indonesia

Cambodia

Vietnam Bangladesh

Production of bio ethanol Rainwater tank with microcredit system Collaboration with Grameen Shakti on CDM by introduction of micro energy utility system in rural areas in Bangladesh Poverty reduction business for safe water supply and establishment of its supply chain Project for water purification for poverty reduction in India

Bangladesh

India

India

India

Commercialization of stationeries for the profit generation of BOP Water supply project

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Sri Lanka

 Preparatory Survey (BOP Business) List of Selected Projects (2)

Solar Lantern Business 11 Kenya Long-lasting Insecticidal Net For The Poor The objectives of the business are to prevail solar lantern in non-electrified areas in Kenya as a substitute of traditional kerosene lantern, and aim to decrease the health damage by the fume of kerosene. The objectives of the business is to commercialize the supply of long-lasting insecticidal net, which are currently distributed for free by the public sector and various donors. The project includes the development of supply chain and financing schemes. This business mode; intends to produce Jatropha through contract farming. in collaboration with farmers cooperatives. This business model intends to produce solid fuels made of crop residue, and develop a new distributing system. The impact caused by establishment of production plants should be examined throughout the survey. This business model intends to modify existing microbial material, and develop a new business model of organic fertilizer and deodorant targeting BOP market. This project intends to develop three different energy business models; such as jatropha oil, residual fuel and liquefied petroleum gas (LPG).

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Kenya

Jatropha Production 13 Tanzania Production of Solid Fuel For Households and SMEs Project for development of Microbial Material for Agriculture and Public Health Energy Conversion Project 16 Mozambique

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Tanzania

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Rwanda

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Ghana

Off-grid Energy Solutions In Unelectrified Area Nutrient Enriched Food Business Road Maintenance Business in Rural Villages By Using DONOU(sandbag)
Village Water Supply With Clean Water System in West Africa

This business model intends to provide rural communities with an off grid energy supply system consisting of an energy server, solar panel and small energy supply unit. This business model intends to develop and establish a local distribution network of nutrient enriched food during weaning period in collaboration with various social sectors such as NGOs, donors, universities. This business model intends to provide road maintenance service with using economical DONOU (sandbag).
This business model intends to provide clean drinking water to rural areas by establishing dispersed clean water systems developed by the proposed company.

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Ghana

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Ghana

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Senegal

 Preparatory Survey (BOP Business) List of Selected Projects (3)

Country 1 2 3 4 5 6 7 8 9 10 11 12 13 Indonesia Vietnam India India Bangladesh Bangladesh Bangladesh Bangladesh Brazil Nigeria Ghana Uganda Tanzania Project title Portable water supply with solar power system and small water desalination units. Development of Marine fishery resources and electrification of remote islands designated as a world natural heritage site using renewable energy system Development of leaders in rural area with remote e-education systems Development of nutritional supplementary foods Development of production systems for green mungbean Water supply project with a water purification system loaded on a bicycle Safe water supply in Bangladesh with UV sanitizer Promotion of light weight and flexible solar panels for auto rickshaw Forest Conservation through Agroforestry Promotion Automobile recycling through empowerment of BOP Canned fish by local production for local consumption Infection control with new alcohol sanitizer Promotion of cultivators for small rice farmers through mutual microfinance 9

 Preparatory Survey (BOP Business) List of Selected Projects (4)

Country 1 2 3 4 5 6 7 8 9 Indonesia Indonesia Vietnam Vietnam Cambodia Cambodia Laos Palau, Micronesia,Marshall Islands,Papua New Guinea, etc India Project title Sanitation products by using microbicide gel to reduce oral infections Strengthening of children's mathematical ability through after-school tutoring Water supply with "POU" water purification system Pedaled wheelchair for rehabilitation and social inclusion of people with disability Cotton farming in land mine contaminated areas in Cambodia Water supply system for daily life in rural area Bio-coke production Construction of venous physical distribution system by the transport of recyclable resources Low-priced and packaged housings in India

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India
India India Sri Lanka Bangladesh Bangladesh Nepal Colombia Bolivia Zambia

"Smart Village" in India

Promotion of sanitary products for women in rural area Drinking water supply with flocculant Castor farming for formation of subsistence community in the Northern and the Eastern Regions in Sri Lanka Improvement of maternal and child nutrition through locally-developed foods Mini desalination system operated by wind power generator and solar panel Insulating firebrick cook stove with carbon funding Sustainable utilization system of oil palm biomass Re-circulating aquaculture system for a sustainable water supply in rural areas

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Sustainable paper pulp production

 Preparatory Survey (BOP Business) List of Selected Projects (5)

Country 1 2 3 4 5 6 7 8 9 10 11 12 13 Indonesia Cambodia Cambodia Vietnam Vietnam Myanmer Tajikistan India India Bangladesh Bangladesh Kenya South Africa Egg farming and sales marketing Liquid disinfectant soaps for hygiene and health improvement Expansion in crop yields and empowerment of farmers driven by agricultural mechanization with used farm equipment Science experiment classes for elementary schools Special artificial limps and orthosis Development of food supply chains in Myanmar Licorice cultivation Nutritional supplement (Vitamin A) products Education system for bringing out behavioral changes and enhancing a knowledge of healthcare Skin-care products for women in rural areas Non-firing Solidified Brick Technology Integrated Electrification through Restoration Technology of Used Batteries Incubation program for emerging small-scale vegetable farmers through production and business training Project title

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Thank you!
For inquiries, please contact

Jin WAKABAYASHI
Director, Private Partnership Division Office for Private Sector Partnership Wakabayashi.Jin@jica.go.jp
http://www.jica.go.jp/activities/schemes/priv_partner/index.html

Ph: +81-3-5226-6960
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