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 2 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. 3 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 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 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.