Transcript Technology-Driven Job Creation in Africa through Small

Technology-Driven Job
Creation in Africa through
Micro- and Small-Enterprises
K. Donaldson, M.J. Fisher, S. Sheppard
Addressing the Need for Jobs in Africa
Why MSEs?
• Dearth of formal sector jobs
• Formal sector growing slowly
Why Technology?
• Technology drives long-term economic growth,
productivity, and improvement in living standards.
• Manufacturing offers the highest potential for creating jobs
through forward and backward linkages.
Innovation in MSEs can expand/create markets with
more efficient production, higher quality, and/or by
introducing new (appropriate) products.
Maximizing Job Creation in MSEs
Technologies should be:
• labour-intensive
• low-cost, small-scale within a local capacity
• a means to process a raw material into a useful
intermediary or final
product
• sustainable
MSEs have Significant Constraints
No resources for...
• market research
• technology development
• advertising
• risk-taking
… a “corporate approach”
Other obstacles
• poor marketing channels
• poor transportational infrastructure
• lack of enforceable patents
NGOs aim to fill in gaps.
Case Study of ApproTEC’s MicroIrrigation Pumps
• Overview of NGO
• Job-creation model-used
• Technology and impacts
• Lessons learned
ApproTEC - Appropriate Technologies
for Enterprise Creation
Mission: To promote sustainable economic growth and job
creation by developing and promoting technologies which
can be used by dynamic entrepreneurs to establish small
enterprises.
Technologies: micro-irrigation pumps, oil seed press,
building blocks, roofing tiles, carpentry tools, and more.
Funding sources: USAID, DFID, EU, and cost recoveries
Headquarters: Nairobi, 65 fulltime employees
ApproTEC’s 5 Step Process
1. Market research to identify small-scale business
opportunities
2. Technology development for new business
3. Recruitment and training of manufacturers and
distributors
4. Promotion and advertising of new technologies
5. Impact monitoring
ApproTEC’s Job Creation Model
Hierarchy of jobs
• primary: owner and users
• secondary: those involved with inputs and outputs
• tertiary: jobs created through technology development
Definition of job:
1 job = 5 hours/day for 150 days/year
Impact measurement of primary targets only
Three assumptions
Technology: Manually-operated Microirrigation Pumps
Primary target:
• “Farmerpreneurs” irrigating less than 1 acre of land
Product family
MoneyMaker
Super MoneyMaker
Mini MoneyMaker
Competition: bucket
introduced
1996
1998
2001
Price (US)
$53
$75
~$35
KENYA
• 78% below $2/day
• GNP/capita = $360
• Agriculture sole income for
most people
Impacts of MM and SMM
Acreage increased: 3x-9x
Growing seasons per year increased: 2.34x
Estimated income impact: 5.5x (average)
Income per growing season
Bucket
MoneyMaker
Super MoneyMaker
$81
$351
$542
Jobs created: 1.6 per pump
• 91% in use
• 72 % managed by women
Cost of Impacts
Income generation
Benefit-cost = ~30 (will continue to increase)
Job creation
Cost/job = ~$50 (will continue to
decrease)
Four Central Lessons Learned from
Technology Projects
1. Strong Technical unit required
• engineering staff
• skilled fundis (artisans)
• workshop for prototyping
2. Importance of advertising and demonstration
• marketing and retail infrastructure must exist
• utility needs to be demonstrated
3. Donors and other NGOs should not donate or sell
technologies at discounts.
4. Four preconditions must pre-exist
Four Pre-conditions required for a
Sustainable Technology Project
1. Market-driven demand for technology and outputs
2. A capacity to design high quality technology for the
local environment
3. Local manufacturing capable of mass production and
quality control.
4. Effective private sector distribution networks
Questions and Comments
Contact information:
[email protected]