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Inclusive Business Model Impact Evaluation of an innovative d istribution c hannel in Kinshasa- DRC Lisbon, March 2014. Source: Company website – Investor Relations. North East Europe. Western Europe. Americas Asia-Pacific. Near & Middle East. Greater Africa.
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Inclusive Business ModelImpact Evaluation of an innovative distribution channel in Kinshasa- DRCLisbon, March 2014
North East Europe WesternEurope Americas Asia-Pacific Near & Middle East GreaterAfrica
Bel Access vision is to position Bel as a recognized inclusive business leader by contributing to reach 1 billion consumers by 2020 and maximizing our social impact Bel Access mission is to make the Group offer accessible to lower income consumers all around the world Bel Access operates as a Business Unit incubator to initiate or support inclusive business models throughout the whole value chain
Informal sector and street vendors: challenges to overcome – the case of Kinshasa • In Kinshasa, there are more food street vendors than shopsand no brands are investing the channel • A large majority of street vendors are womenin Kinshasa : 95% of the 28 000 street vendors are women • Low education / entrepreneur / selling skills: Lowest of all the institutional sectors except agriculture: only 15.7% have completed at least upper secondary school (79.3% in the public sector). More than 90% of the street vendors do not have any vocational training or school certificate. Nevertheless, only 2% of street vendors have never attended to school. • Lack of access to social services: The large majority of street vendors are migrant population living in the city for 5 to 10 years without being registered. Indeed, they do not have access to public social services (heath insurance, access to credit, training…) • And difficulties to look at the future with optimism…
Sharing Cities platform:Social impact and partnership approach SOCIAL IMPACT PLATFORM: HOLISTIC & PARTNERSHIP APPROACH • Capacity-building • Tailored made training for street vendors (hygiene, micro-entrepreneurship…) • Ecosystem • Improve their environment (lobbying, PR, public sector involvement) • Access to insurance • Buy new affordable and efficient products answering their specific needs. Street vending • Access to credit • Buy new products, equipment, micro-franchises, etc. • Access to market • Support vendors to access new market opportunities while modernizing their offer • Formality • Integration to the formal sector: taxation, social security access, migrant registration in the cities,…
BEL ACCESS MODEL IN KINSHASA 1. OFFER THE GOODNESS OF THE MILK TO THE LARGEST POPULATION 2. INCREASE WOMEN INCOME THROUGH SOCIAL INCENTIVES 3. MAXIMIZE THE SOCIAL BENEFITS FOR THE WOMEN
BEL ACCESS MODEL IN KINSHASA – OUTCOMES OF INTEREST PROFITABILITY 2. PRODUCTIVITY 3. JOB CREATION 4. HEALTH SAVINGS
Bel’s Route-to-Market in Kinshasa Basic Route-to-Market" WHOLESALERS LOCAL DISTRIBUTOR BEL GROUP SEMI - WHOLESALERS CONSUMERS GROCERY STORES
Bel’s Route-to-Market in Kinshasa Mamas Mapas Route-to-Market" MAMAS MAPAS LOCAL DISTRIBUTOR BEL GROUP • Bettercoverage of population • Better control of the key messages to consumers • Better insights fromconsumers • Additional sales margin to Mamas Mapas CONSUMERS
Key Data Mamas Mapas Focus Groups, feb 2014, 100 MM Main concerns • Kids education (91%) • Aspiration to find ways for growing their business (72%) • Personal independence vs. intimate partner// consistency of incomes (70%) • 28,000 bread sellers in 2013 • Purchasing from 3 Industrial bakeries • Avg income : $380/month • Avg working hours : 13hrs/day, 6,5days/week ($1/hr) • Avg profile : age 41 / main source of revenue for the household / 4.1 children
POTENTIAL INTERVENTION TO ADDRESS EXPRESSED NEEDS INTERVENTION NEEDS PHASE 1 WAYS TO GROW THEIR BUSINESSES BUSINESS DEVELOPMENT HANDS-ON TRAINING KIDS’ EDUCATION ACCESS TO BANKING SERVICES PHASE 2 FINANCIAL INDEPENDENCE vs IP HEALTH INSURANCE
INTERVENTION DETAILS 1/2TRAINING • WHY PROVIDING THIS TRAINING • Outcome of Focus Group shows that 70% of participants aspire to developtheir business but doesn’t know how to do it • WHAT’S INSIDE THE TRAINING • How to leantheirincomesovertime (fightseasonalityeffects) and better manage their cash-flows & stocks • Hands-on program on different aspects of how to switch fromstreet-selling to openning a shop • HOW TO ROLL OUT • Design training costs • Identify a pool of Mamas whowantthis training • Then select randomlyto whichprovide the training (Incentive package to a treatment group vs Control group without package) • MONITORING RESULTS • Sales & Income • Productivity • # of shops opened • # of jobs created Quarterly
INTERVENTION DETAILS – 2/2 • Bank Savings • Extra Bonus for bankaccountsubscribtions • Selectionthroughlottery • Respond to theirneed of growingtheir business • HealthInsurance • Actual condition often leads to healthproblems • Design a tailored-made insuranceproduct in partnershipwith local insurancecompanies • Outcome : Savings on healthexpenses PHASE 2
IMPACT EVALUATION DESIGN PROFITABILITY JOB CREATION PRODUCTIVITY DONE THROUGH FOCUS GROUP 3 TREATMENT GROUPS 1 CONTROL GROUP QUARTERLY FOLLOW-UP OVER 24 MONTHS * 1. Baseline Survery/ 2. Periodic Data Collection (quarterly)/ 3. End Line Survey (how both groups are changingovertime)
Kinshasa Model 3 year’s plan Business Opportunities • 40% of local business through this distribution channel Scale • 9.000 street-vendors Innovative Financing • Partnerships with international organizations Social Platform • 1.000 people trained in the « business schools for street vendors » • 3.000 vendors benefiting from micro-insurance • Increase by 25% of the vendors’ revenues