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Building Effective Conservation-based Enterprises

Building Effective Conservation-based Enterprises. Successes, Outstanding Challenges and Optimal Means for Scaling up Impact. Giles Davies, AWF John Elias, The Sanctuary at Ol Lentille Timothy Ole Mosiany, Kijabe Trust. African ownership / leadership as founding principle

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Building Effective Conservation-based Enterprises

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  1. Building Effective Conservation-based Enterprises Successes, Outstanding Challenges and Optimal Means for Scaling up Impact Giles Davies, AWF John Elias, The Sanctuary at Ol Lentille Timothy Ole Mosiany, Kijabe Trust

  2. African ownership / leadership as founding principle CBNRM in 1980s, particularly Kenya and Tanzania Large scale Tenure and process focus Benefits stream / benefit sharing Enterprise building focus from mid-1990s Community rights, ownership and participation in decisions Private sector skills and partnership Private sector financing Valid role for NGO as intermediary, facilitator Business success and social sustainability AWF Conservation Enterprise Program Evolution of AWF’s Conservation Enterprise

  3. Compelling business & conservation logic Structure for success Tourism, trade, agriculture Social sustainability, including benefit sharing AWF’s Conservation Enterprise Today

  4. Conservation Enterprise • What’s Going Well? • What are the outstanding Challenges? • How do we address them? Giles Davies, Director Conservation Enterprise, AWF

  5. A commercial activity that generates economic benefits in a way that supports the attainment of a conservation objective Conservation Enterprise

  6. Conservation EnterpriseGEOGRAPHICAL ENGAGEMENT

  7. Conservation EnterprisePROJECT PIPELINE

  8. Conservation EnterpriseSECTORAL ENGAGEMENT

  9. Conservation EnterpriseINVESTMENT SCALE

  10. Conservation EnterpriseINVESTMENT DYNAMICS US$ 9 million total investment in the 20 projects open for business

  11. Conservation EnterpriseINVESTMENT RETURNS

  12. What’s Going Well: Developing Critical Mass…

  13. What’s Going Well • Getting the Context Right • Conservation • Community • Commercial • Building a Critical Mass of Commercially Viable Businesses

  14. Key Issue 1: Capacity • Practitioner Level • Customer Level • Financier Level

  15. Key Issue 2: Historical Financing Dynamics Supply- Led Finance Demand- Led Finance

  16. Key Issue 2: Historical Financing Dynamics • Debt must play a more prominent role • Risk = Rigour • Mitigates Market Distortions • Funding Completion • Enhances Local Ownership and Accountability • Leverage Efficiency • Tax Efficiency

  17. Key Issue 2: Historical Financing Dynamics: Developing Solutions Example: Linking Livestock Markets to Conservation Northern Kenya, Arid Lands Commercial Loan (US$ 350k) to private sector partner (repayable 10 years): seeds the development of a CE Loan Fund within AWF. Also seeds the organic development of a dedicated revolving conservation livestock fund of US$ 1 million housed within the private sector partner. Conditional livestock purchases = US$ 8 million into local communities in first 10 year period. Fully sustainable, highly scalable.

  18. Key Issue 3: Benefits Management Closed Conservancy Systems – no problem Open Community Lands Systems – a challenge

  19. Summary

  20. Introducing Ol Lentille

  21. Benefits • 5000 >15,000 acres • 4 luxury “villas” • Vegetation recovery • Wildlife return • Economy boost: EUR300,000 in 18 months • Asset ownership: EUR 1 million + • Return on community investment: 30 x • Issues • Governance & accountability • Killing the cow and milking it • Livestock & conservation • Size matters

  22. Thank You

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