Mapping Social Enterprise Ecosystems
in 7 African countries
SEED 2015
By: Pallavi Shrivastava
Africa Social Enterprise Ecosystem
•
7 countries: Kenya,
Uganda, Tanzania,
Rwanda, Malawi, South
Africa, Zambia
•
4 sectors: Education,
Energy, Water and
sanitation, Health
•
3 levels: Country,
sector and service level
What characterizes
ecosystem for SEs?
What are drivers
and barriers?
What can donors and
ecosystem actors do?
What is best practice?
How can
countries/sectors
learn from each other.
2
SE Ecosystem Framework
1: DEMAND SIDE
BoP characteristics and
need
•
BoP demand
•
3: Social
Enterprise
•
•
•
2: SUPPLY SIDE
Public supply
Private supply
Public private collaboration
6: INFORMATION AND NETWORKS
3
5: INFRASTRUCTURE
AND HUMAN CAPITAL
7: FINANCING
4: POLICY AND REGULATION
Examples of Ecosystem Questions
•
Scale and type of grant
funding.
•
To which degree can SEs
access to commercial credit
(banks, MFI for SEs, impact
investors).
•
To which degree can is
consumer financing options
available for BoP for services
(MFIs or government).
•
Do policies support SEs
directly or indirectly?
•
Is there a legal form for SEs?
•
What is the level of publicprivate collaboration?
Policy and Regulation Maturity Matrix
5
Finance
Financing Maturity Matrix
Nascent
Emerging
Growing
Mature
Grant funding
None or very few. Not
SE specific. Public
grants depend on
donors, service
mostly NGOs. No or
few non-public grants
from sporadic CSR
initiatives.
Various grants
relevant to but not
targeting SEs, still
largely donor
dependent. CSR
budgets support SE
activity. Some
foundations provide
grants to pilot
entrepreneurial
approaches.
Government offers SE
specific grants, still
largely donor
dependent. Grants
from foundations,
banks and business
community exist.
Large CSR budgets
support SE activity.
Grants are
government funded,
SE specific and
accessible. Nonpublic grants augment
government and cater
well to SE needs.
Impact
Investors
No local offices.
Sporadic investment
from impact
investment abroad.
Few locally active
impact investment,
funds not devoted to
SEs.
Small but active
growing network of
Impact investors,
gaps in ranges of
capital provided
Many impact
investors providing
funds for different
ranges of capital
Commercial
credit
Not accessible for
SEs, especially in
Start-up phase. High
interest rates.
Difficult to access
especially for smaller
SEs
Various institutes offer
credit at reasonable
rates for some types
of SEs
SEs of various sizes
and stages have
access to commercial
credit as reasonable
interest rates
Consumer
Finance
Do not serve SEs or
SE consumers
Exist, but bureaucracy
and interest rates are
challenging.
SEs frequently use
MFIs to access startup capital
Mature industry,
important for SEs
6
Example: impact investment
Kenya
Kenya has well-known international impact investors with local branches increasing activity
Uganda
Uganda has well-known international impact investors with local branches increasing activity
Rwanda
Few active impact investment funds
Zambia
Three active impact investment funds
South Africa
Malawi
Local, active and growing impact investment scene
No local impact investment offices
Nascent
Emergent
Growing
Mature
Infrastructure and Human Capital Maturity Matrix
8
Information and Networks Maturity Matrix
9
Extract SE Ecosystem analysis - Capacity Building for SEs
Uganda Health
Uganda energy
Zambia Energy
active donors (in
energy). Focus
on certain
technologies,
management
training limited.
Uganda W&S
Malawi Education
Malawi Energy
Malawi WS
Uganda
Tanzania
Few, but with SE
focus
Rwanda
Zambia
South Africa
Few, fragmented,
poor quality,
expensive
Malawi
Nascent
Emergent
Growing
Mature
Example: Maturity of Southern African Country Ecosystem
(Working Draft)
Information &
Networks
Policy &
Regulations
Legal form
4
Coordination and
Advocacy
Legal incentives
3
2
Research and data
Public-Private
collaboration
1
0
Capacity building
Grant funding
Skills
Commercial credit
Infrastructures
Infrastructure
& Human Capital
Malawi
South Africa
Consumer Finance
Zambia
Finance
Policy: Where is it needed?
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•
•
•
Awareness Campaigns
Data & Research
Public Service Delivery
Planning
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•
•
•
•
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Access to Finance
End User Subsidies
Tax Exemptions on Imports
Other Financial Incentives
Infrastructure and ICT
Workforce skilling
•
Information
Rules &
•
Regulations
Public
Resources
Public-Private
Collaboration
•
•
•
•
Conducive Regulatory
Environment
Overarching Policy
Framework
Quality and Standards
PPP Policy Frameworks
Targeted SE Procurement
Development Partnerships
Multi-Stakeholder Dialogue
12
Policy: Gaps and Emerging Solutions
Gaps
Emerging Solutions
There is low policy recognition of
SEs.
• Public push for market based
sanitation solutions enables
SEs in Malawi, but is not SE
specific.
Legal forms do no fit SE reality
and hampers hybrid models.
• Public Benefit legislation being
developed in several countries
enables hybrid models.
PPPs focus on large scale
infrastructure projects and rarely
BoP service delivery.
• Uganda collaborates with
private water suppliers to
support public supply in rural
areas.
Example: Policy - Government push for market-based Sanitation in Malawi
Key Policy/Strategy
Key enabling elements
Influence
“Sanitation Marketing
Policy” (2008)
Claims that all sanitation
services in the country should
be based on market based
approaches.
Currently a nonbinding policy framework,
not yet a binding policy act. Needs to be
implemented and enforced, but shows
the future way in Malawi for sanitation.
“Sanitation Marketing and
Hygiene Promotion
Strategy for Urban LowIncome Areas in Lilongwe
and Blantyre”.
(Developed by the Malawian
government, with support
from the European
Investment Bank (EIB), the
European Union (EU), and
the World Bank)
Provides guideline for sustainable
implementation of any sanitation
and hygiene promotion activity in
Malawi, designed for Low Income
Areas that fall under the
jurisdiction of the two cities.
Focuses on sanitation marketing
to ensure that hardware provision
is combined with the appropriate
media mix and the required
enabling environment.
Adheres to minimum standards and
prescriptions of the “Sanitation
Marketing Policy” (2008).
Experts say the strategy has a positive
impact on private sector involvement.
Example: Regulation - Public Benefit Acts can create new legal forms
Key Policy/Strategy
Public Benefit
Organizations Act
South Africa, Kenya and
Rwanda have or are
considering PBO acts.
The acts are not SE
driven, but impact SEs
with more flexible criteria
forms of reqistration for
organizations with
reveneues and social
mission.
Key enabling elements
Examples
Permits income generation
which must be used solely for
the public benefit purposes of
the organization.
Includes an income tax
exemption on income received
from membership subscriptions
and any donations or grants.
Provides preferential treatment
for value-added tax (VAT) and
an exemption on customs
duties in relation to imported
goods or services that are used
to further their public benefit
purposes.
Influence
Problem for many SEs, that legal forms
do not fit.
PBO form provides more legal scope for
social enterprisesIncreases use of hybrid models.
Can lead to for-profit SEs registering as
PBO to benefit from tax exemptions and
permission to generate income.
Experience from South Africa is mixed.
Kenya legislation is currently not moving.
Legislation will likely be passed in
Rwanda.
• What are drivers and barriers in an enabling
ecosystem for social enterprises?
• What can donors and ecosystem actors do?
• What are good practices to share or replicate SouthSouth?
Annex
26 business model approaches
Health
1. Telemedicine
2. mHealth
3. Specialized
hospitals
4. Fortified foods
for child
malnutrition
5. Micro-health
insurance
6. Reproductive
health clinics
7. Community
health workers
8. Female hygiene
WASH
9. Decentralized
water treatment
and supply
10. Serviced
sanitation with
evacuation in
urban areas
11. Market
activation for
latrines in rural
areas
12. Delivering water
beyond the
pipes
Education
Energy
Finance
13. Chain schools
14. Learning centers
15. Education
financing
16. Teaching quality
17. Educationoriented
outsourcing
service providers
18. School
evaluation and
management
support
19. Electrification
through Mini
Grids
20. Grid
connection of
BOP Households
21. Energy for
productive use
22. Solar home
systems
23. Agri Index
Insurance
24. Mobile
Banking
25. Entrepreneur
Finance
26. Finance for
BOP
consumers to
access
essential
goods and
services
Skills: Growing SE education – driver for SE capacity
Training Programs
Country
Description
True Maisha
Tanzania
Five-day SE training for current or future
entrepreneurs
BongoHive, Innovation Hub
Zambia
Zambia
Business skills training, financial literacy
GIB’s Social Entrepreneurship
Program (University of Pretoria)
South
Africa
Seven-month course on social
entrepreneurship and sustainability
Centre for Social Entrepreneurship and Social Economy
(University of Johannesburg)
South
Africa
Courses in social enterprise management
and business leadership.
Uganda Martyrs University
Uganda
Masters in Global Business & Sustainable Social Entrepreneurshipability
Makerere University Business
School
Uganda
Bachelors of Entrepreneurship & Small
Business Management
Beehive Centre for Social
Entrepreneurs
Malawi
Four semester training on different topics
(including ICT, sewing, business skills) &
start-up support