This document outlines the agenda for a dialogue on investing in performance for more impactful public-private partnerships. The morning session will include framing of the dialogue, challenge interventions from thought leaders, and showcase examples. The afternoon session will feature workshops on measuring performance in farming practices, upscaling climate-smart solutions, and monitoring empowerment. The goal is to discuss new financial models and result-based payments to reach scale and impact through multi-stakeholder coalitions.
2. New financial models, public-private coalitions, result-
based payments to reach scale and impact.
9:00-11:45: Launch of Dialogue
• Framing of the Dialogue
• Opening statements
• Challenge Interventions
• Showcase examples
10:40-11:00: Brief remarks from key thought leaders
10:40-11:15: Break and Networking
11:15-13:00: Investment Prospects and closing thoughts
13:00-14:00: Lunch
Measuring and monitoring performance through result-
based models
14:00-15:00: Workshops
• Workshop 1: Carbon & water measurement through farming
practices
• Workshop 2: Up-scaling climate-smart dairy solutions
• Workshop 3: Monitoring farmers’ empowerment and the role
of women
15:00-16:00: Plenary session
AGENDA
MORNING SESSION AFTERNOON SESSION
FAMILY FARMING
SUSTAINABLE SOURCING
LANDSCAPE MANAGEMENT
3. FRAMING OF THE DIALOGUE
Tony Simons
Director General of ICRAF
Bernard Giraud
President of Livelihoods Venture
4. 750 expert respondents
Business, Government, Civil Society
Revealed 29 Key Global Risks
Risks in 5 categories:
- Economic risks
- Environmental risks
- Geo-political risks
- Social risks
- Technological risks
Looks at:
(a) past trends
(b) current risks, and
(c) 10 year forward horizon
6. Whilst risks are important ………
What about opportunities?
- how can we use performance metrics to drive positive change?
7. ACTOR Risks Rewards
Small-holder Farmers
NGOs, CBOs
Input Suppliers
Product Off-takers
Service Off-takers
Processors, Retailers
Sub-national Authorities
National Governments
Consumers
Investors, Financers
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19. AAA Presentation for NY v18Sept16v2.pptx 19
After COP21 success in Paris, high expectations for Marrakesh COP22,
especially for Africa
COP21 : a historic milestone in the fight
against climate change
COP22 : strong expectations to make it a
"COP for action" but also a "COP for Africa"
Translate the progress achieved in Paris into
reality
Target to limit global warming to 2°C officially
adopted with aim for 1.5°C
At least $100 B / year to support developing
countries
Pledge from developed countries
Place the most vulnerable regions, especially
Africa at the core of the negotiations
Despite mentions of food security for the first time in the Paris Agreement, Agriculture has
never been discussed as a solution in climate negotiations
20. AAA Presentation for NY v18Sept16v2.pptx 20
Agriculture Features Very Prominently in the INDCs of African Countries
A majority of African countries included agriculture both under Adaptation and Mitigation in the INDCs,
covering both cropping and livestock systems.
21. AAA Presentation for NY v18Sept16v2.pptx 21
Climate Change Impacts on Agricultural Productivity Are Likely to Be
Strongly Negative Overall – and African Agriculture Highly Vulnerable
Source: UNEP/GRID-Arendal Maps and Graphics Library, Wheeler 2011
Projected Changes in Agricultural Productivity by 2080 Global Ranking of Vulnerability to Losses
in Agricultural Productivity
Agricultural productivity will come under pressure from
Climate Change, with large parts of Africa expected to
experience downward yield pressure of above 15%.
When factoring in vulnerability and coping capacity into
expected losses in agricultural productivity, African
countries rank among the most vulnerable.
22. Initiative for the
Adaptation of the African Agriculture
to Climate Change
("AAA")
IMPROVE PRODUCTIVITY + REDUCE
VULNERABILITES + ENHANCE RESILIENCE+
MANAGE NATURAL RESOURCES MORE
SUSTAINABLY
23. AAA Presentation for NY v18Sept16v2.pptx 23
"AAA” Initiative is the drive to enhance the
Adaptation of African Agriculture
I
A stronger collective voice for
the adaptation of African
agriculture to climate change
Increased funding
I.1
Simplified access to climate
funds
I.3
Climate funds monitoring
I.2
Advocacy Solutions
Contribute to the Global
Climate Action Agenda and
support "AAA" projects
II
Agricultural Water
management
II.2
Climate risk management
II.3
Financing solutions
II.4
Soils management
II.1
Leverage the Instruments recommended by the UNFCCC
Technology
transfers
Capacity building
South-South
cooperation
"AAA"
24. AAA Presentation for NY v18Sept16v2.pptx 24
The "AAA" Initiative echoes the commitments
made by African Leaders
The Abidjan
Declaration
The Dakar Conference
The Comprehensive
Africa Agricultural
Development Program
The Adaptation
in Africa Initiative
Ensuring resilient agricultural
development in Africa
Putting agriculture at the
center of African public
policies
Defining a roadmap for the
transformation of agriculture
in Africa
April 2016
2003
(Maputo Declaration)
October 2015Announced in Dec. 2015
Ensuring resilient economic
development for Africa,
notably in the agricultural
sector
5 key principles
• Enable African ownership
and leadership
• Ensure accountability and
transparency
• Ensure inclusion
• Leverage regional
complementarities
• Evidence-based planning
and decision making
processes
5 priorities:
• Set up multiple nutrition
programs
• Improve agricultural
productivity
• Develop agricultural
activities (value chain
approach)
• Increase funding for
agriculture
• Support the inclusion of
women and young people
4 main objectives
• Scale-up adaptation-related
activities in Africa
• Policy and institutional
capacity building
• Increase investments and
funding
• Improve climate
information services
3 opportunities for action
• Build Governments'
capacities
• Develop climate resilient
agricultural policies
• Reinforce financial and
technical support to
adaptation
African initiatives for agriculture and adaptation Political statements for agriculture and adaptation in Africa
25. AAA Presentation for NY v18Sept16v2.pptx 25
The "AAA" initiative contributes to the achievement of
Sustainable Development Goals
Core
Strong
link
Indirect link
Increase of
farmers revenues
Food security for
all
Better nutrition
Impact on
education in rural
areas
Impact on women
employment and
education
Multiplier effect of
agricultural GNP
on the economy
South-South
cooperation
and PPP
Limitation of
rural exodus
Improved
agricultural
water mngt
Mitigation and
adaptation to CC
Soils, forests and
natural
ecosystems
conservation
Governance
capacity building
Technical and
financial
innovations
Improved
standards of living
in rural areas
Sustainability of
agricultural output
26. AAA Presentation for NY v18Sept16v2.pptx 26
The "AAA" initiative will be fostered by a global alliance at
COP22
African
Governments
Development
Finance Institutions
Scientific
Community
NGOs &
Corporate
(projects holders)
The syndication process is ongoing – additional supports are still being rallied
Gambia
Guinea
Conakry
Lesotho Mali Mozambique NigerMauritania
Equatorial
Guinea
Nigeria Senegal
South
Soudan
Seychelles TogoRwanda Swaziland
Sao
Tomé
EgyptBenin
Burkina
Faso
Burundi
Central
African Rep.
Ivory
Coast
GabonCameroon
Cape
Verde
29. CHALLENGE INTERVENTIONS
P29
Prof. Judi Wakhungu
Minister of Environment of Kenya
Emmanuel Faber
CEO of Danone Group
Mette Wilkie
Director, Division of Environmental
Policy Implementation, UNEP
32. P32
THE LIVELIHOODS MOUNT ELGON PROJECT
An innovative partnership and investment model
• Improve the livelihood of 30,000 farmers and their families
• Create economic value for the market and the local economy
• Increase the resilience of the natural ecosystem
33. A coalition between an impact investment Fund, an NGO and a dairy company
THE LIVELIHOODS MOUNT ELGON PROJECT
P33
Bernard Giraud
President of Livelihoods
Wangu Mutua
Deputy Regional Director
John Gethi
Director of Milk Procurement
34. Why is it so difficult to make them sustainable?
INVESTMENT IN FAMILY FARMING
P34
Complexity of projects;
Aggregating farmers
Time lag between investments
and ROI
Narrow approach; focus on
one aspect of supply chain
ROI not at market standards
TODAY’S MAIN
CHALLENGES
Create a coalition between
private/public sector/NGOs
Create a financial vehicle with
long-term investment
Holistic approach focusing on
the wider ecosystem
Results-based approach
TOMORROW’S
OPPORTUNITIES
36. IMPROVE LIVELIHOODS
Increase yields and revenues
for 30,000 farmers
Economy, Social and Environment are inter-connected
THE LIVELIHOODS MOUNT ELGON PROJECT
P36
PRESERVE WATER
RESOURCES
Preserve watershed and Lake
Victoria with Government
SECURE MILK SOURCING
Extend milk collection area
with good quality and high
volumes for Brookside Dairy
MILK PRODUCTION
From 5,000 to 135,000l
in 5 years
FARMERS
+ Milk revenue
+30% food and cash crops
WATER
Preserve watershed &
reduce soil erosion
CLIMATE
1 million t CO2 seq. in soil and
cow farms
37. • Efficient agroforestry model
• Affordable and replicable techniques
• Farmers are the key actors: 1200 groups
• Structured approach to project management
and monitoring
Key learning
Cooperation with an investment fund and the
private sector required mutual understanding and
trust building
The key role of an NGO : VI Agroforestry implements the project
THE MOUNT ELGON COALITION
P37
38. • Investments in milk collection and storage
• Commitment to purchase all milk
• Milk processing
Key learning
Working at farm level is a key lever to increase
productivity and farmer revenue: this is what the
Mt Elgon project is about
Leverage market power : Brookside collects milk and supports cooperatives
THE MOUNT ELGON COALITION
P38
39. • Up-front financing
• Return on investment: carbon revenue and fees
on milk production
• Impact measurement
Key learning
Quality of project partners and alignment on
objectives are a key success factor
A result-based model : Livelihoods Fund invests and co-designs
THE MOUNT ELGON COALITION
P39
40. LIVELIHOODS FUNDS
P40
GUATEMALA
• Agroforestry
PERU
• Efficient cookstoves
KENYA
• Milk
• Agroforestry
• Efficient cookstoves
SENEGAL
• Mangroves
INDONESIA
• Palm oil
• Agroforestry
INDIA
• Mint
• Agroforestry
• Mangroves
BURKINA FASO
• Efficient cookstoves
• Agroforestry
IVORY COAST
• Cocoa
MADAGASCAR
• Vanilla
MEXICO
• Sugar
• Watershed
BRAZIL
• Watershed
MOROCCO
• Milk
41. LIVEHOODS VENTURE
48,50 RUE DE LA VICTOIRE
75009 PARIS
More on
www.livehoods.eu
@livelih00ds
GET IN TOUCH
THE LIVELIHOODS MOUNT ELGON PROJECT
www.livelihoods.eu
44. Northern Rangelands Trading Limited
Overview of GrazingWORKS
Garry Cullen, CEO
Patrick Ekodere, GrazingWORKS Director
INVESTING IN PERFORMANCE
ICRAF CAMPUS, NAIROBI, KENYA
Wednesday, October 12, 2016
44
45. 45
Pastoralist survival in Northern Kenya
Issues:
• Insecurity
• Few sources of formal commercial income
• Land degradation from overgrazing
• Few and far off markets
• Cyclic drought
Resulting in:
• Poverty rate ranging from 72% to 83%
• Malnutrition
Populated by communities that depend on livestock for survival
46. 46
The birth of a revolutionary idea 12 years ago....
Northern Rangelands Trust
• 33 conservancies formed
• 43,900 km2 covered
Conservancies bring:
• Structure and governance
• Peace and Stability
• Dignity to the people
48. 48
The need to provide a commercial outlet to the
conservancies led to the creation of NRTT
NRT Trading’s purpose is to identify, incubate, pilot and scale sustainable
businesses within the NRT Conservancies.
1) We incubate and run businesses that make a profit and enable
Conservancies to access markets (GrazingWORKS, BeadWORKS)
2) We enable the Conservancies and their people to start and run
their own businesses and earn an income (Tourism, Saccos, etc)
49. 49
The main resource that communities needed
assistance with was their cattle
• Limited access to markets with long journeys and frustration
• Need for diversification of income
• Grazing management plans to increase grass available
50. 50
The GrazingWORKS Business creates markets for
Conservancy cattle
• We purchase cattle from conservancies, fatten them and deliver
them to market
• Inculcate market based production and marketing
• Conservancies are paid a premium of KES 3000 per animal purchased
for development works
• We work with NRT to create grazing plans in the conservancies
51. 51
Jan 2015 to date, we have contributed to all levels
of the local economy
• Pastoralists:
•3,600+ sellers and 21,000+
indirect beneficiaries
• KES 160 million+ in cattle
purchased
• Contributions to Conservancies:
KES 14 million+
• County Governments (Cess): KES 2
million+
• Cattle sales: KES 100 million+
• Introduced SACCOs and savings
facilities
52. 52
Challenges we have met along the way
Mindset that cattle are
the only measurement
of wealth.
Needs to change to
allow their income to
diversify
Marketing and disease
challenges
Diminishing grass and
vegetation cover
53. 53
There is a lot of scope for improvement
Increase the
throughput of cattle
Change mindset from
quantity to quality
Animal husbandry and
disease diagnosis
Integration of morans
into economic system
54. 54
All this has been made possible by the support of
The Nature Conservancy
USAid
County governments and Samburu, Isiolo, Marsabit and Laikipia
The National Government
55. 55
The future holds promise
We would like to explore :
• Large scale storage of feed for drought mitigation
• Establishment of grassbanks
• Creation of export markets for the cattle
Welcome the government, and all stakeholders to engage
with us
Thank You!
57. LEVERAGE MARKET
CONNECTION & INCLUSIVE
DEVELOPMENT
How to leverage connection to
markets to create mutual value for
both smallholder farmers and the
private sector?
BREAK THE SILOS
What are the key success factors
and the challenges for efficient
coalitions between the private
sector, NGOs and governments?
How to join forces, combine
resources and skills to design,
implement and monitor impactful
projects.
MORE FOR A BUCK
How to develop new financial
models mixing private and public
funding ? From impact investing to
result-based payment to hybrid
financing, what are the key
conditions to encourage those new
models?
INVESTMENT PROSPECTS
Groups 1 & 2 Groups 3 & 4 Groups 5 & 6
The tree cover on agric land varies. We know that part of that is related to population and aridity. But still within any pop and aridity class there is much variation, from zero to high. As the high values occur, they are clearly feasible as far as the factors consider so far are concerned. Hence we map them. Actually we take the 80% point of the distribution – ‘high’ means the tree cover that only 20% of pixels with in that class exceeds.
Wangu
3 minutes for slide
Challenges in the Mt Elgon area
Environmentally, the Mt Elgon are faces several challenges. Climate change is one of the largest threats to development in Eastern Africa and the small-holder farmers in Mt Elgon are severely affected through unreliable rainfall and prolonged dry periods. Additionally, the area is challenged by deforestation, inefficient agricultural practices, uncontrolled grazing and soil erosion. This has a direct impact on local biodiversity and soil fertility which effect the small-holder farmers yields. But it also threatens the watersheds and the ecosystem of Lake Victoria as a huge quantity of sediment are carried by rivers. (show example on left side of illustration)
Socially, the farmers in the area are struggling with low crop yields and milk production as low as 3 l per day due to lack of nutritious feed and water and low producing breeds. Many many lack a guaranteed connection to markets for their produce, making it difficult to sell their produce at fair prices. Women, who stand for more than 80% of the agricultural labour, are often disadvanted in terms of access to financial resources, land and livestock ownership. (show example on left side of illustration)
Economically, this leads to insufficient income from farmging to provide for the families and a large proportion of the smallholders are living in poverty today. (show example on left side of illustration)
At the same time, the Mt Elgon region has strong opportunities
The area has several up and coming cooperatives ready to take on the role of providing agricultural services to its current and new members to turn this vicious cycle around. The farmers that we meet are eager to engage with new market players and enter the dairy value chain together with their neigbours.
The Livelihoods Mt Elgon Project uses a proven agronomic model to fight these challenges
Farmers are trained on Sustainable Agricultural Land Management (SALM) practices in order to adapt to the impacts of climate change and reduce greenhouse gases, increase farm productivity and food production. These practices, in combination with the protection of river banks will contribute to watershed conservation and protection of Lake Victoria.
The practices require limited financial investment and have proven efficiency to improve agricultural productivity.
Within just a few years, a farm can transform from this (show left) to this (show right).
From previous Vi Agroforestry projects, we know that crop yields can increase by up to 90% in 5 years and sequester an average of 1.68 tCO2e/ha/year
Some of the practices that farmers will implement on the farm are- mention a few key practices:
• Agroforestry – growing trees alongside crops and livestock. This highly reduces soil erosion, and increases soil fertility. It will have a substantial impact on Co2 sequestration. (show on illustration).
• Nutrient management such as mulching and composting, which will also have an effect on Co2, increase the soil organic carbon (show on illustration).
• Integrated Livestock Management with improved livestock feeding, breeding and waste management will improve milk production. Free grazing (see illustration to left), severely damages the ecosystem. This will be avoided as cows have access to feed and water throughout the year from the farm (show right). And improved dairy cow productivity also affects the Co2 emissions .
• (Soil and water conservation such as retention ditches. This will will…..)
• (Agronomic practices such as crop rotation and intercropping will… )
• (Tillage and residue management such as zero-tillage will….)
John
3 minutes
Collecting more milk with less variability due to Water scarcity and fodder supply