Transcript GREEN GROWTH – Inclusive JOBS

Green and Inclusive
Jobs: Innovation and
Entrepreneurship
- New Business Models
TUNIS
PRESENTER: DOUGLAS BARNETT
23 MARCH 2012
GREEN GREEN
GREEN
“Green” : NOT just carbon production. It is
also
… about resource use, people, their
livelihoods and habitat.
If green growth does not generate jobs/
incomes/ support entrepreneurship and
economic opportunities and if it only relies on
grants and ODA investments over the long
term, then it’s NOT sustainable
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African Development Bank Group
For Africa, Green Growth is about maintaining economic
momentum in the face of population growth,
urbanization, natural resource scarcity and climate
change.
The absolute priority for Africa is to develop.
This requires food and livelihood security, access to
education, health services, energy, resources and
capital, and access to JOBS.
Meeting these conditions in a world undergoing many
changes is a significant challenge.
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INCLUSIVE GROWTH
Inclusive growth: Growth that results in
enhanced (a) economic opportunity for
the majority (broad-based) and for
vulnerable groups (bottom of the
pyramid) and
(b) through improved governance to
Additional Challenges
enhanced access to social services.
Demographic
Urbanization
Transportation Infrastructure
Environmental Degradation
Pollution
Climate Change
Unbalanced Growth Models
Business Environment
Weak Institutions
African Development Bank Group
Some Current Models
Knowledge operations
Financial Operations
Jobs and
income
generation
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TA linked to transaction or not (FAPA)
Skills and labour markets development
Entrepreneurship development
(franchising programme), business
development services, capacity
building of SME representative
institutions (ABR, RPSF)
Different models for NSO (non-sovereign opertns):
• Financial intermediation (can include special
needs group- GOWE program)
• Private Equity Funds
• Direct lending
• Business-linkages program (e.g. out-grower
schemes)
Financial
services
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Micro-finance Trust-fund (OPSM)
Remittances Trust Fund (OPSM)
FAPA TA linked to transactions
• Micro-finance operations – e.g. K-Rep, Advans
Bank, MicroCred
• LOCs, PCGs
• Apex facility through Tunisian Central Bank for
SME lending
• Shelter-Afrique, Africa-re (insurance market)
Health and
education
Basic
infrastructure
• Promotion /Development of Social
Businesses, including incubators
• Promotion /Development of Social
Businesses, including incubators
• Health Funds
• Inconclusive (as yet) experience with AKU
(sovereign/non-sovereign),
• Trustco (also, financial services)
• NSO Projects tend to focus on large scale
activities
• Example of smaller scale projects,
mainstreaming climate change issues include
Cabeolica, E+CO (rural clean energy fund)
GREEN GROWTH – Inclusive JOBS
How can AfDB private sector address
green growth & inclusive job generation?
Infrastructure – Cabeolica UA 21.6
million
CIFs – at least $900 million
SEFA Sustainable Energy Fund For
Africa (up to USD $58 million)
Banking
African Development Bank Group
Green jobs are decent jobs that:
- Reduce consumption of energy
and raw materials
- Limit greenhouse gas emissions
- Minimize waste and pollution
- Protect and restore ecosystems
GREEN JOBS?
Cabeolica – UA 23 million ADB & ADF
23 MW Installed
13 GWh generated in 2011
25 full time employees of which 6 female
About $500,000 / year payments to local suppliers
and local salaries
Save on imported diesel fuel costs
Tax exempt for 5 years
Conclusion: Benefits in renewable energy
generation are mainly indirect and knowledge
transfer, not direct employment
African Development Bank Group
Inclusive Jobs through Banking
SDG – Summit Development Group –
Banking transformation for the unbankable …
Use of mobile banks
Use of container banking
Microfinance – 200,000+ loans / persons employed
African Development Bank Group
GREEN JOBS
Social Businesses
Social Enterprises
Envirofit.org
Wood-based cooking
Human Impacts
• 1.6 million people die from wood smoke
related diseases each year.
• Smoke from wood fire is one of the WHO’s
top 10 threats to human health.
• Depleted wood resource causes political instability.
Wood Consumption
• Half of all world harvested wood used for fuel.
• 75% of wood harvested in LDC is burned for fuel.
African Development Bank Group
GREEN GROWTH – Inclusive JOBS
What’s missing?
African Development Bank Group
How can we optimize?
THANK YOU.