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Community Supported Agroforestry -based Learning (CSAL). Karagwe, Kagera May 2014. An Integrated Development Launchpad. Jerusalem rebuilt by Nehemiah. Brings disparate actors together Goal: common well-being Faith-based model: Nehemiah
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Community Supported Agroforestry-based Learning (CSAL) Karagwe, Kagera May 2014
An Integrated Development Launchpad Jerusalem rebuilt by Nehemiah • Brings disparate actors together • Goal: common well-being • Faith-based model: Nehemiah • After Babylonian exile, Jerusalem had to be rebuilt and guarded • Everyone – rich, poor, lettered, ignorant – took part • Annual tithe of 10% to the Temple • Surrounding towns selected 1 of 10 to move to repopulate the city
Agroforestry • Definition: integrated ways to combine trees and shrubs with crops and livestock • Goal: to increase the value of marginal land to benefit a diversity of life • Outcome: surmounting the major plights of our planet – addressing the interconnected problems of: • Assured food supplies and year-round food security • Energy supplies • Water sufficiency • Climate change • Sustainable livelihoods and income
The CSAL Network • A global virtual organization of experts: • Business • Forestry • Agriculture, permaculture, and food security • Agro-ecology and sustainable livelihoods • Engineering • Value addition and marketing • Goal: a growing capacity to improve community wellness through learningintegrated with earning
CSAL – Karagwe: An Overview primary producers in the Karagwe region CSAL: Linked to global markets CSEs producing quality foods nutrition, health rural infrastructure ICT-based services innovation for sustainable living Karagwe CIT
Sustainable Local Enterprise Network (SLEN) • Initiated locally: leading investment by founders and builders of the Ahakashaka-based Solar Village Institute (SVI) • This leadership connects with… • Karagwe E.L.C.T. and other faith-based organizations • commercial businesses, including farms and farm organizations • local NGOs including KADERES, CHEMA • foundations anywhere having goals related to health, food, feed, agri-business, biodiversity, and natural resources management • Karagwe Council • …To benefit from agroforestry-based learning, and to become potential supporters of, or investors in, Karagwe CSAL Program
Concept: Initiating a CSAL Program • Organizations supporting practical education for enterprise creation, especially in rural areas, are well placed to initiate • Goal: by empowering youth and women through enterprise to preserve ownership and control of local natural resources and traditional values while concomitantly improving the quality of life • Example in Karagwe: Solar Village Institute (SVI) with E.L.C.T.-sponsored Bweranyange Secondary School of Girls brings a • sectoral focus on agroforestry linked with • profitable commerce led by local youth • Intended outcome: to shift the predominantly passive mindset of youth toward an innovative, entrepreneurial approach for sustainable livelihoods through smart self-reliance
The Karagwe SLEN • A network of people and organizations of the extended Karagwe community • Functions • organize • contribute and invest • lead and manage • own and benefit from the CSAL Program • SVI oversees preparation by a qualified agency of a comprehensive Business Plan for the Program • SVI presents its vision and ideas to widening circles of leaders in Karagwe Goal: to create an informal network that is able to lead the Karagwe CSAL Program through its stages of growth
Concept: Role of Schools in the Global CSAL Movement • Schools provide practical courses and extra-curricular learning using agroforestry science and its applications in profitable commerce of interest to youth of the beneficiary community • The initiator encourages schools to form a Local Area School League (LASL), to function as a key part of the SLEN • The LASL, an organization having business functions, explores the commercial potential of agroforestry-based learning through research and experimentation, on behalf of its member schools • The LASL may also become a trainer of school leavers having entrepreneurial minds that prefer to “learn by doing,” through enterprise helping both themselves and others • Outcome: the CSAL Program teaches, mentors, and helps local entrepreneurial leadership to create profitable CSEs
Marginal Land: the Key Natural Resource • Through agroforestry science, land that is considered marginal for growing food is improved, made more productive • The use of land by the CSAL Program may be contributed as investment by individuals, cooperatives, churches, schools, villages, municipalities, corporations and NGOs • Contributors of the use of land are compensated by up-front cash and by a share of revenues generated by the Program, as planned rigorously at the outset
BDSCom: Business Development Services • KaragweBDSCom will be structured to serve as the central business institution of the Karagwe CSAL Program • It will be modeled on the Certified Benefit Corporation, becoming common in many states of the USA • BDSCom’s function, resembling that of the World Bank’s Climate Innovation Center program, will be an agroforestry-based learning center for Community Supported Enterprises (CSEs) • Investors in this Corporation (cash and other value) will receive shares • CSEs incubated by BDSCom and qualifying for investment will be financed by an endowment called a Community Investment Trust (CIT), providing “patient capital” including private equity for early-stage financing of CSEs • The value of the Trust to industry with stakes in Karagwe is expected to motivate contributions of capital to this Trust for several years, achieving a sustainable scale of US$50 million in the CIT’s portfolio of private equity by 2023 • In BDSCom’s business plan, assets per share (paid for in cash) will then be 6 times book value; exit by re-issue of shares at new cost base
Phases in the Growth of BDSCom BDSCom’s operations are structured for growth in two phases: 1. Research phase • With partners for science, technology, and business, ideas and people are tested, using lands available to BDSCom at Ahakishaka, KARUCO and other participating schools • A program offering comprehensive Business Development Services (BDS) to client entrepreneurs with good ideas is built and managed by BDSCom • Training and support for school programs is part of this program 2. Commercialplanning phase • The BDS Program , serving as a business incubator during the Research Phase, assists local entrepreneurial leaders to refine business plans for specific goods and services as products of the Research Phase • Entrepreneurs pitch plans for CSEs to investors having high demand for financial return, short time horizons, and intolerance of risk
Investment Strategy • BDSCom begins operations when: • current revenue from sale of shares and grants covers current spending • its Business Development Services Program is ready to start • the Community Investment Trust is expected to receive contributions for use as private equity in investment-ready CSEs • Over time (e.g., a decade) BDSCom builds an investment portfolio for: • Edible and non-edible oils (consumption + biofuel) • Synergy of irrigation with power generation by biomass, wind, and sun • Products of agroforestry-based farming: quality foods, legumes (building soils and fertility), organic carbon, animal husbandry (meat, dairy), honey and beeswax, value-added agri/aquabusiness • Manufactures and services made profitable by affordable energy, reliable water, and climate security (including transport and ICT)
Investment in farm and service infrastructure creates opportunities • Solar and wind systems • Composting to improve soils • Mobile clean water generators • One-acre solar arrays with under story for grazing by ruminants • Treecrops biofuel, power and transport • ICT-based trade and finance services
Startup Strategy: Farm-To-School Program Participating primary and secondary schools may create a Farm-To-School Program investing in: • Fresh organic produce, especially tomatoes and their products • Wood and manufactures of wood • Products of pollinators • Village composting • Village dairy • Conversion of agricultural and animal waste to energy (biogas, briquettes for industrial heat, etc.) • School-based commercial farm kitchen, producing briquette-fired organic whole grain breads, gourmet cheeses, and other high-value-added foods
Benefits of the Farm-To-School Program to BDSCom-supported education • For current students: learn by doing in important new fields, linking learning to life • For current faculty: improve curricula, motivate learning, improve teaching • For the School’s business office: new sources of income, and supply of foods, materials, services • For the School administration: find new ways to expand academic budgets, attract and hold better faculty, and add new grade levels to the curriculum • For the School’s sponsors: create a stronger case for supporting their School and derive a collective sense of life achievement
Early Funding of a CSAL Program • In general, the key for start-up is sourcing funds in the beneficiary Community itself, without creating debt. This can be achieved by local leadership grants and investment complemented by equity crowdfunding by the Community, matched by non-debt-creating external assistance. Key goal is to build Community financial autonomy and independence of external grants when efficient scale is achieved. Main components: • Equity seed capital by initiating investors plus donations for creation of the CSAL structure and capacity building in the beneficiary area • Capital grants and equity for the start up of the CIT and BDSCom • “Patient capital” (recoverable grants , Program Related Investments, private equity) to fund business preparation activities, particularly feasibility studies for an initial pipeline of enterprises • Public funding for legal/regulatory reforms and for supporting innovative education/training/research in area schools • PE “impact investment” in an expanding portfolio of CSEs Note: In the projections BDSCom does not need external grants after 2019
A show titled Introducing Community Investment Trusts is separately available