Towards a convergence of Thought between Finance and Program Managers ICPAK Annual Non-Profit Organizations Financial Management Conference Sarova Whitesands Beach Resort & SPA By: Richard O. Radiro (PhD) 26th October 2016

Background: The global development operating environment has been and continues to exhibit instability due to a volatile global economic environment Infrastructure deficit is a major setback to economic development goals Other major challenges such as climate change effects, stifling of democratic space, gender disparity, high levels of corruption, disproportionate skills mismatch and skills deficiency in the labour market and civil strife continue to impede socio-economic development, particularly in developing nations

Background Cont… Despite this grim picture, the audacity of hope and the resilience of the African people in general, and Kenyan population in particular, presents citizens and development practitioners with tremendous opportunity to surmount the challenges and spur economic development Africa is the new frontier with immense natural resources, raw materials and human capital Indeed, Kenya is a regional hub in business, entrepreneurship, tourism, education, technology, innovations, sports and culture among others

Towards a convergence of Thought between Finance and Program Managers Current Dichotomy: Programme Managers focus on the following: - - Log frame - Objectives - Indicators - Evidence Finance Managers focus on the following - Activities - Budget

Towards a convergence of Thought between Finance and Program Managers The tasks of an NGO program officer cannot be directly compared to those of a Wall Street banker Traditional finance and development will continue to remain distinct; however, the agenda of the two have increasingly moved towards convergence Impact investing; the practice of deploying profit-seeking capital to achieve social good, as well as shared value; a management strategy that equates business value with sustainability practices; have both become more mainstream in the worlds of traditional finance practice

Towards a convergence of Thought between Finance and Program Managers The principles of finance are seemingly becoming more and more intertwined with the way development is pursued Pundits argue that there is need to address the limitations of financial fluency among development workers on the one hand, and development eloquence among finance professionals on the other hand The traditional financial industry and its array of actors such as banks, institutional investors and venture capitalists have been factoring social impact projects more into their menu of investment options

Towards a convergence of Thought between Finance and Program Managers Can the Theory of Change and Return on Investment be enveloped in the same conversation by finance and program people? Finance and Development experts must now become bilingual in development and finance There is an increasing quest by development investors in the intersection of finance and development

Towards a convergence of Thought between Finance and Program Managers Financial fluency; speaking the language of business Value creating project manager The CEO and the CFO should focus on key parameters to drive business (strategic thinking) The two should be on the same wavelength and speak the same financial and development language Influence effectively and persuasively with the right financial and development models, framework and jargon (simple language but not mundane)

Some strategic focus areas necessary for driving an equitable and sustainable development agenda: Focus on 2015 - 2030 Sustainable Development Goals: End poverty in all its forms everywhere End hunger, achieve food security and improved nutrition, and promote sustainable agriculture Ensure healthy lives and promote well-being for all at all ages Ensure inclusive and equitable quality education and promote life-long learning opportunities for all Achieve gender equality and empower all women and girls

Some strategic focus areas necessary for driving an equitable and sustainable development agenda: Focus on 2015 - 2030 Sustainable Development Goals: Ensure availability and sustainable management of water and sanitation for all Ensure access to affordable, reliable, sustainable and modern energy for all Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 13. Take urgent action to combat climate change and its impacts (in line with UN framework convention on Climate Change)

When convergence of Though between Finance and Program is achieved, we can transform and dichotomize From this…..

To these…..

Conclusion: Finance and Program Managers should seek to understand: The Project Cycle Management The rationale for development investment Development strategy and approach Resources required to achieve development goals The process needed to achieve value for money Monitoring and evaluation, including financial, operation and program audit

Thank You