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in mozambique
Hand Up, Not Handout“ ”
Why TechnoServe is a Better Mousetrap
What struck me — once more — was the pragmatic approach to development that TechnoServe is using across its programs — rather than taking the easy path of merely disbursing aid.
-A. SHEKHAR (Senior Managing Director,
Olam International Limited)
“ ”
Hand Up, Not Handout“ ”
TechnoServe’s Strategy
TechnoServe Works Around the World
How TechnoServe Empowers Entrepreneurs
Entrepreneurship training
Business plan competitions
Empower Entrepreneurs
How TechnoServe Builds Businesses
Business planning Market linkages
Access to investment and working capitalManagerial and employee training
Factory designManagement consulting
Technical adviceIntensive operational support
Farmer organization and support World-class business mentor linkages
How TechnoServe Builds Industries
Market and industry researchIndustry strategic planningSupply chain organization
Industry association developmentPolicy analysis
Advocacy support and training
Base case: smallholder farmer with
25 trees*E
ffect
of i
ncre
asin
g yi
elds
per
tree
Effect of increasing quality
44 lbs 48 lbs 52 lbs
4 kg
/tree
6 kg
/tree
8 kg
/tree
$36.4
$72.8
$54.6
$39.7
$79.4
$43.0
$64.6
$86.0
$59.6
Generation of Substantial Additional Wealth For Mozambican Poor
Metrics vs. Emotion
vs.
5 year growth
40 year growth
$30M
$20M
400% average annual growth
75% average annual growth
Questions?
Viable, sustainable, and value
added business
A tool that TechnoServe uses to define development opportunity is value chain analysis, looking at each discrete step in the life of a product, the players at each
step, how value is added, and how much they earn for that value created
Production Processing Marketing-Process and package
- Reach
internationally competitive
cost and quality
-Add value through bulking from the small scale producers
-Ensure reliable supply of high quality inputs and fair price to the community
-Brand the products and build reliable
distribution -Access international markets and pursue local markets
Enabling environment: Facilitate transition to processing via incentives and assistance of the private and public sector
Strengths Weaknesses Widespread practice Respected name Attacks poverty at source and
addresses specific causes in Mozambique
Builds from the ground up using as many domestic inputs as possible
Leave projects too early (before sustainable)
Class divides result between supported and unsupported villages/entrepreneurs
Opportunities Threats Create sustainable businesses in
several countries Increase education, SOL, hope, etc. Devote more to every project
Difficulty in reaching long run sustainability might lose trust and hurt company as this industry expands
SWOT Analysis
Communication
The home page has a simple design
Instead of text, images and graphics communicate majority of the information
Communication
• Country-specific pages rely more on text to communicate program details
• Maps and graphics continue to play a large role in the visitor’s experience
Communication
“Success Stories” highlight program impacts and accomplishments
TechnoServe also uses a channel on YouTube to reach more technology savvy audiences
Communication
• Detailed, personal staff biographies communicate the impact that anyone can have on alleviating poverty.
• A featured profile can be found on the home page.
General Business Strategy
• TechnoServe has a simple, modular business strategy that can be tailored to address many different types of problems
• Programs focus on specific problems in each country
Mozambique Specific
• In Mozambique, poverty has three main drivers:– Dependence on rural farming– Limited access to resources– Civil war, and the impact on tourism
• TechnoServe tailors its programs to each country:– Improving agricultural output– Developing alternative fuels– Reestablishing Mozambique as a tourist destination
Program Details
• Four Agriculture initiatives:– New techniques for higher yields– Government lobbying for more favorable policies– Raising investment capital and writing business
plans– Give farmers better information, ex: avian flu
• Develop locally produced biofuels• Focus on developing an eco-tourism industry
Partnerships
• TechnoServe forms public and private partnerships to add additional business and industry expertise to its programs– Leveraged to create thriving private sectors
• MozLink – Partnership with USAID (U.S. Agency for International
Development)– Launched Jan. 20 in northern Mozambique– World class leaders mentor entrepreneurs– Create new business, encourage trade and investment between
U.S. and Mozambique
PartnershipsOther Major TechnoServe Partners In Mozambique
Monasse Shamono Naine (Mozambican Banana Farmer Working with TechnoServe)
Empowering EntrepreneursGrass-Roots Training
Empowering EntrepreneursGrass-Roots Training
The Importance of Proper TrainingSmall Steps Have Profound Impacts
– TechnoServe highlighted the importance of using clean plastic buckets to wash coffee and using “coffee tray wire” to dry coffee, rather than spreading it on the ground for drying.
– Once quality improves, farmers need to capture the extra value created by producer the superior product. TechnoServe used its experience in the industry to cut brokers out of the value chain so farmers could received higher margins directly from coffee exporters
• Results: The price received by the farmers working with TechnoServe was 40% higher than the price received by neighboring farmers who had not implemented the training and were still selling through traditional channels.
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