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

Success: Launching of the Zambique Cashew Nut Brand

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.