Newsletter 4 - July 2010

Dear Reader,

After providing a general introduction with "Entwicklungsgeschäfte" - which we will soon publish in English as the "Inclusive Business Guide" - we are now deep diving into specific sectors, starting with insurance and energy.

And we are proud to present the first outcome of this endeavor: Our latest publication ‘Learning to Insure the Poor’ shows how Allianz SE has learnt to do business with low-income communities in India, Indonesia and several countries in Africa. It analyzes the first five years of Allianz’ micro-insurance activities and provides essential background information on the microinsurance market. To round it out, expert interviews provide a glimpse of the future. The report was launched during a stakeholder roundtable at the French headquarters of Allianz in Paris. Further launches are planned for Berlin and New York.

Currently, we also work on a practical tool to develop new energy business models. Based on case study research, the "Inclusive Energy Business Model Generator” will identify various design options for each of the business model elements at the interface with the customer. We apply the tool in the practitioners’ workshop “Energize the BoP!” on December 1 and 2 in Berlin. The workshop is designed specifically for companies starting to engage in low-income markets and enables them to develop their own business model starting from a concrete business idea. Companies that register by September 1 enjoy the early bird registration fee!

The institute has a new home in Berlin Mitte (Brunnenstr 192, 10119 Berlin), which we share with of the social investors from GEXSI, the Noah Foundation, and the Decision Institute, along with coexistence expert Torsten Sewing.

And now, enjoy a look back on our other activities and projects from the last six months!

All the best,

Aline, Christina and Genia

1. Institute

Please welcome our two new associates, Rustam and Piera!

Rustam Sengupta is our first Indian Associate. He has worked as an analyst and researcher for agribusinesses, non-profit organizations as well as microinsurance players both in Europe and in Asia. Rustam has recently started his own social venture “Boond” that provides the rural poor in India with access to lighting, water and pest control. “Boond” means “a drop” in Sanskrit – find out about how your “drop” can make a difference! >

Piera Waibel is an expert in sustainability management. She expands our network of associates to Switzerland. Before her work for the Emergia Institute, she was a senior consultant in the area of sustainability communication and an ethics analyst. Through her PhD field work in Latin America and the Caribbean, she has gathered a strong regional expertise. Her current research activities focus on bringing a bottom-up development perspective to inclusive business ventures.

2. Research

Design with the Poor, not for the Poor: Idea Competitions with Low-income Consumers

In spring 2010, the Emergia Institute invited Brazilian low-income consumers to become designers of their dream product. They submitted ideas regarding two current challenges: appropriate lighting solutions that save energy and ways to collect and use rain water. The results revealed particular needs, wants and aspirations of the target group, which now serve as a basis for the development of new products and services of our partners. The competitions were conducted in partnership with the Research Centre for Design and Sustainability of the Federal University of Paraná, as well as the governmental housing agency Cohapar. >

Mitigating Capacity: Leaders, Coalitions and Climate Change Policy in China and India

Emergia director Genia Kostka, who is also Junior Professor for Chinese Business Studies at the East-West Centre of Business Studies and Cultural Science (ECBC), was awarded a substantial research grant by the Australian Agency for International Development (AusAID). The research investigates the role of formal and informal coalitions to add to the understanding of local state capacity in formulating and implementing policies designed to reduce greenhouse gas emissions in India and China. >

Linkages are a Key Resource for Partners of Inclusive Business Models

Analyzing the case of Masisa’s project “Case Melhor” in Brazil, Aline Krämer, Christina Gradl and Fausto Amadigi identified linkages with other relevant players as the critical success factor of the partners within this inclusive business model. The paper was published in Greener Management International. >

3. Consulting

Identifying Inclusive Business Opportunities with a German Energy Utility

What role can a big German utility play in bringing energy to the people? To identify inclusive business opportunities in countries of the developing world, a team from the Emergia Institute conducted a scenario workshop with representatives of various units of the company. Starting from the expected population growth, energy demand and climate change by 2050, participants developed various roles for the company depending on extreme scenarios regarding the political and technological environment. From these scenarios, they derived concrete ideas for projects that can create future growth markets while contributing to poverty alleviation and environmental sustainability. >

Market Linkages for Small-holder Sesame Farming in Ethiopia

A large international NGO recently embarked on a long-term agriculture scale-up program to achieve greater progress in poverty reduction in Ethiopia through supporting one million small-holder farmers. In this context, the Emergia Institute was asked to conduct a study of the sesame supply chain. Its objective was to assess the role the NGO can play in order to assure that farmers will benefit from a potential large scale investment by an investor from the Middle East. >

Market Entry Strategy for Moringa Products

Moringa is a tree naturalized in several African countries such as Tanzania, Kenya and Madagascar. The tree offers a variety of benefits: its leaves are nutritious and can be used for cooking or to prepare tee. The Moringa seeds contain oil. The project developed a market entry strategy for Moringa products and analyzed the financial viability of large scale Moringa production. >

CSR in Morocco, Tunesia, Bangladesh and Kenya

Four new country profiles were published on CSR WeltWeit, the German platform for responsible business abroad. They provide information about the CSR expectations in Morocco, Tunesia, Bangladesh and Kenya as well as relevant areas of activity, existing examples and useful contacts. >

4. Exchange

Brown Bag Lunch Series

Our Brown Bag Lunch Series has been met with great interest. The third lunch of the series was hosted by GTZ to discuss the management of Public Private Partnerships (PPP). The fourth event took place at our own office and discussed "How can we learn from others in developing inclusive business?". Together with our partner from Allianz, we kicked off a vivid discussion. One insight was that companies need a ‘safe space’ to share critical information. >

3rd Expert Dialogue "The Role of Governance for Inclusive Business"

In our annual expert dialogue, twenty-five professionals from the development, business and academic domain discussed how rules can enable inclusive business models. The exchange was spurred by inputs from academics and role plays based on company examples. One key insight was that rule-setting processes need to take account for existing formal and informal institutions to be effective. Discussions also highlighted the importance of ensuring that the ultimate target group, low-income communities, have a voice in the rule setting process. >