Conservation Development Enterprises in Africa Some lessons from the World Bank’s Development Marketplace Program

1. Conservation Development Enterprises in AfricaSome lessons from the World Bank’sDevelopment Marketplace Program ABCG MeetingMarch 22, 2005Joyita Mukherjee

2. What is the Development Marketplace? Mainstream World Bank operating structure not well-suited to support small scale, local-level projects The Bank’s Development Marketplace (DM) Program—an institutional innovation to enable the Bank to reach out to social entrepreneurs in developing countries Initiated in 1998 as part of a broader organizational renewal • Early stage funding at the country and global-level • Business Plan Competition • Multi-layered, rapid review assessment process • Finalists gather in one (Market) place to display their ideas, exchange knowledge, and network with peers

3. Development Marketplace to date Over US$25M in grants to 500 projects in 60+ countries Global Competition (every 18 months) Country-level DMs (every year) Project Tracking (ongoing) May 24-25 2005 Environment 9 CDMs in 14 countries Leverage: 3.5 X 2002 projects • Growing number of applications each year1,200 in DM2000, almost 2,700 in DM2005 • Increasing leverage of DM grants by our winners • DM2003 winners $6.6M (1.1 leverage ratio) • DM2002 winners $14M (3.5 leverage ratio) • Increasing participation by the private sector • 40% of DM2003 winners are private enterprises with income-generating projects

4. DM Contribution Co-Sponsor Contribution Recent Accomplishment: Funding PartnersDM Increasingly Leverages Financial Support For Awards Awards ($M) Awards ($M) Country-level Global-level $6.5M $3.6M 31% $5.0M $2.6M $4.4M $2.5M 13% $3.0M $3.0M 72% 58% 63% 66% 100% 87% 100% 69% 66% $0.6M $0.5M 42% 37% 33% 81% 34% 81% To date, DM Awarded US $21.1M, Leveraging Another $10.6M from Co-Sponsors Note: Does not include in-kind support; Does not include administrative support; FY05 figures are projections.

5. Success on the Ground:Power to the Poor, Ghana $176,397 Global DM2003 Winner • Project Idea • Demonstrate viability of locally built wind-power systems to provide to rural households in Ghana’s "off-grid" communities • Development Impact • Affordable, reliable, environmentally-sound electricity in the 83% of Ghana’s communities that are not connected to the public power grid. • Stimulate economic growth • Demonstrate viability of locally built wind-power systems to provide to rural households in Ghana’s "off-grid" communities • Project Progress an d Accomplishments • 500 watt wind turbine prototype suited to local conditions using local materials successfully piloted. • 18 local manufacturers and technicians from private sector enterprises trained in manufacture, installation and repair. • “Demonstration center” • Creative financing options negotiated for villages and producers.

6. Success on the Ground: Chili as a Tool for Conservation and Development, Zimbabwe • Project Idea • Train farmers in chili cultivation as an innovative and natural method of reducing crop damage from wild animals • Introduce new income-generating activity • Development Impact • Community-controlled, affordable crop defense system • Environmentally responsible agricultural practice • Reduction forest/woodland clearance • End to killing of wild animals for crop protection • Additional income for farmers through sale of chili products www.elephantpepper.org • Project Progress & Accomplishments • 250 households engaged in Zimbabwe, Zambia & Mozambique • Linkages created between rural farmers and international markets for pepper products • Business model replicated by other development organizations working with subsistence farmers in Africa, South Asia and Latin America

7. Finding of portfolio evaluation:Typical profile of successful DM projects

8. 2,638 Applications 147 Semi-Finalists 78 Finalists 30-35 Winners DM2005 Theme:Innovations for Livelihoods in a Sustainable Environment Sub-sectors: • Sustainable use of natural resources • Biodiversity conservation • Renewable energy and energy efficiency • Innovative application of clean technologies • Protecting environmental health • Environmental education and awareness Maximum award size:US$150,000 Total Award pool: US$3 Million Co-funders: Global Environment Facility, MacArthur Foundation, Conservation International and others Dates: May 24-25, 2005 Venue: World Bank, Washington DC

9. Back Ups

10. Co-Sponsor Contribution 16% 84% DM Contribution Recent Accomplishment: Funding PartnersBy End of FY04, DM Awarded US $18.9M, Leveraging Another $6.3M from Co-Sponsors Awards ($M) 25.2M

11. CDMs Global Competition Recent Accomplishment: Increased Outreach DM Attracted Over 7,400 Proposals in FY04 # of proposals submitted

12. What others are saying about the World Bank’s Development Marketplace Program • Harvard Business Review • “… a cutting-edge way of sparking effective new approaches to poverty reduction.” • New York Times “Some of the Marketplace’s winners are projects with global promise.” • BBC News online “[World Bank] rewarding anti-poverty innovation.” • Mirjam Schoening, Director, Schwab Foundation for Social Entrepreneurship “All of these finalists are stars and seeing them all in one place is highly inspirational, and something that only the World Bank can put together.”