1. Conservation Development Enterprises in Africa Some lessons from the World Bank’s Development Marketplace Program ABCG Meeting March 22, 2005 Joyita Mukherjee

2. 2 Mainstream World Bank operating structure not well-suited to support small scale, local-level projects The Bank’s Development Marketplace (DM) Program—an institutional innovation to enable the Bank to reach out to social entrepreneurs in developing countries Initiated in 1998 as part of a broader organizational renewal  Early stage funding at the country and global-level  Business Plan Competition  Multi-layered, rapid review assessment process  Finalists gather in one (Market) place to display their ideas, exchange knowledge, and network with peers What is the Development Marketplace?

3. 3 Development Marketplace to date Project Tracking (ongoing) Global Competition (every 18 months) Country-level DMs (every year) May 24-25 2005 Environment 9 CDMs in 14 countries Leverage: 3.5 X 2002 projects Over US$25M in grants to 500 projects in 60+ countries Growing number of applications each year 1,200 in DM2000, almost 2,700 in DM2005 Increasing leverage of DM grants by our winners DM2003 winners $6.6M (1.1 leverage ratio) DM2002 winners $14M (3.5 leverage ratio) Increasing participation by the private sector 40% of DM2003 winners are private enterprises with income-generating projects

4. 4 Recent Accomplishment: Funding Partners DM Increasingly Leverages Financial Support For Awards Note: Does not include in-kind support; Does not include administrative support; FY05 figures are projections. Co-Sponsor Contribution DM Contribution To date, DM Awarded US $21.1M, Leveraging Another $10.6M from Co-Sponsors Awards($M) Global-level 13% 31% $4.4M $5.0M $3.0M $6.5M 87% 69% 100% 72 % 34 % $3.0M 66% 81% Country-level 81% 63% $2.5M $0.6M $0.5M 58% 42% $2.6M 37% Awards($M) $3.6M 33% 66%

5. 5 Success on the Ground: Power to the Poor, Ghana Project Idea Demonstrate viability of locally built wind- power systems to provide to rural households in Ghana’s "off-grid" communities Development Impact Affordable, reliable, environmentally-sound electricity in the 83% of Ghana’s communities that are not connected to the public power grid. Stimulate economic growth Demonstrate viability of locally built wind- power systems to provide to rural households in Ghana’s "off-grid" communities Project Progress an d Accomplishments 500 watt wind turbine prototype suited to local conditions using local materials successfully piloted. 18 local manufacturers and technicians from private sector enterprises trained in manufacture, installation and repair. “Demonstration center” Creative financing options negotiated for villages and producers. $176,397 Global DM2003 Winner

6. 6 Project Idea Train farmers in chili cultivation as an innovative and natural method of reducing crop damage from wild animals Introduce new income-generating activity www.elephantpepper.org Success on the Ground: Chili as a Tool for Conservation and Development, Zimbabwe Development Impact Community-controlled, affordable crop defense system Environmentally responsible agricultural practice Reduction forest/woodland clearance End to killing of wild animals for crop protection Additional income for farmers through sale of chili products Project Progress & Accomplishments 250 households engaged in Zimbabwe, Zambia & Mozambique Linkages created between rural farmers and international markets for pepper products Business model replicated by other development organizations working with subsistence farmers in Africa, South Asia and Latin America

7. 7 Finding of portfolio evaluation: Typical profile of successful DM projects FACTORSuccessfulLess Project Type  Local implementing partner  Highly focused  Replicable, innovative methodology for providing goods/services  High-level policy dialogue  Multi-country policy debate  Coordination between large donors/lenders  Establishment of new organizations Implementing Team and Partners  Partner type: Local Private Enterprise, NGO, University  Participation of key partners is confirmed from outset  Local person with no institutional support  WBG alone with poor local support  Mission does not match project objectives Leadership Enabling Environment  Strong Project Team Leader (with team support)  Local presence with international knowledge  Appropriate legislation and regulatory environment  Weak Project Team Leader

8. 8 Sub-sectors:  Sustainable use of natural resources  Biodiversity conservation  Renewable energy and energy efficiency  Innovative application of clean technologies  Protecting environmental health  Environmental education and awareness Maximum award size: US$150,000 Total Award pool: US$3 Million Co-funders: Global Environment Facility, MacArthur Foundation, Conservation International and others Dates: May 24-25, 2005 Venue: World Bank, Washington DC 2,638 Applications 147 Semi-Finalists 78 Finalists 78 Finalists 30-35 Winners DM2005 Theme: Innovations for Livelihoods in a Sustainable Environment

9. Back Ups

10. 10 Awards ($M) Co-Sponsor Contribution 16% 84% DM Contribution 25.2M Recent Accomplishment: Funding Partners By End of FY04, DM Awarded US $18.9M, Leveraging Another $6.3M from Co-Sponsors

11. 11 CDMsGlobal Competition # of proposals submitted Recent Accomplishment: Increased Outreach DM Attracted Over 7,400 Proposals in FY04

12. 12 What others are saying about the World Bank’s Development Marketplace Program  Harvard Business Review “… a cutting-edge way of sparking effective new approaches to poverty reduction.”  New York Times “Some of the Marketplace’s winners are projects with global promise.”  BBC News online “[World Bank] rewarding anti-poverty innovation.”  Mirjam Schoening, Director, Schwab Foundation for Social Entrepreneurship “All of these finalists are stars and seeing them all in one place is highly inspirational, and something that only the World Bank can put together.”