Building Effective Conservation-based Enterprises Successes, Outstanding Challenges and Optimal Means for Scaling up Impact Giles Davies, AWF John Elias, The Sanctuary at Ol Lentille Timothy Ole Mosiany, Kijabe Trust

Evolution of AWF’s Conservation Enterprise African ownership / leadership as founding principle CBNRM in 1980s, particularly Kenya and Tanzania Large scale Tenure and process focus Benefits stream / benefit sharing Enterprise building focus from mid-1990s Community rights, ownership and participation in decisions Private sector skills and partnership Private sector financing Valid role for NGO as intermediary, facilitator Business success and social sustainability AWF Conservation Enterprise Program

AWF’s Conservation Enterprise Today Compelling business & conservation logic Structure for success Tourism, trade, agriculture Social sustainability, including benefit sharing

Conservation Enterprise What’s Going Well? What are the outstanding Challenges? How do we address them? Giles Davies, Director Conservation Enterprise, AWF

Conservation Enterprise A commercial activity that generates economic benefits in a way that supports the attainment of a conservation objective

Conservation Enterprise GEOGRAPHICAL ENGAGEMENT

Conservation Enterprise PROJECT PIPELINE

Conservation Enterprise SECTORAL ENGAGEMENT

Conservation Enterprise INVESTMENT SCALE

Conservation Enterprise INVESTMENT DYNAMICS US$ 9 million total investment in the 20 projects open for business

Conservation Enterprise INVESTMENT RETURNS

What’s Going Well: Developing Critical Mass…

What’s Going Well Getting the Context Right Conservation Community Commercial Building a Critical Mass of Commercially Viable Businesses

Key Issue 1: Capacity Practitioner Level Customer Level Financier Level

Key Issue 2: Historical Financing Dynamics Supply- Led Finance Demand- Led Finance

Key Issue 2: Historical Financing Dynamics Debt must play a more prominent role Risk = Rigour Mitigates Market Distortions Funding Completion Enhances Local Ownership and Accountability Leverage Efficiency Tax Efficiency

Key Issue 2: Historical Financing Dynamics: Developing Solutions Example: Linking Livestock Markets to Conservation Northern Kenya, Arid Lands Commercial Loan (US$ 350k) to private sector partner (repayable 10 years): seeds the development of a CE Loan Fund within AWF. Also seeds the organic development of a dedicated revolving conservation livestock fund of US$ 1 million housed within the private sector partner. Conditional livestock purchases = US$ 8 million into local communities in first 10 year period. Fully sustainable, highly scalable.

Key Issue 3: Benefits Management Closed Conservancy Systems – no problem Open Community Lands Systems – a challenge

Summary

Introducing Ol Lentille

Benefits  5000 >15,000 acres  4 luxury “villas”  Vegetation recovery  Wildlife return  Economy boost: EUR300,000 in 18 months  Asset ownership: EUR 1 million +  Return on community investment: 30 x Issues  Governance & accountability  Killing the cow and milking it  Livestock & conservation  Size matters

Thank You