Lemateki, a Social Business Project

in Senegal

I. The environment

Key facts about Senegal

Nutrition situation in Senegal

About Senegal

• Political situation

Multiparty democracy

Semi-presidential Republic

President: Macky Sall since 2 April 2012

• History & Culture

Independence: 4 April 1960 (from France)

Languages: French (official) and many national

languages ( Wolof, Pulaar, Jola, Mandinka, etc.)

Main national language: Wolof, spoken by 80% of

the population

Religions : Muslims (94%), Christians (5%), &

animists

• Population:

13,3 million inhabitants

Urban population: 42%

Dakar = 2,7 million

Median age: 18.2

Total fertility rate: 4.6 children born per woman

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Sources: CIA World Factbook, World Bank Data

About Senegal

• Economy:

GDP (in purchasing power parity): $ 26.5 billion

(rank: 119th)

GNP per capita (purchasing power parity): 1,900 $

GDP real growth rate: 3.7% (2012)

Labor force, by occupation: agriculture = 77.5%;

industry and services = 22.5%

High dependence on imports : 39% of food

consumption from local production (EDS, 2007)

Current account balance: - $ 1.3 billion

• Development:

Human development Index: 155th

Population living below the poverty line: 47%

Life expectation at birth: 60

Children under 5 underweight: 19.2%

School enrollment (primary) : 86%

Literacy: 51.1% for men; 29.2% for women

4

Distribution of the households under the poverty line

< 40%

40-50%

>50%

Distribution of the

households under the

poverty line

Sources: CIA World Factbook, World Bank Data

Nutritional situation in Senegal Around 20% of the children under 5 are chronically malnourished (high deficiencies in iron, iodine, vitamin A)

Children from 5 often don’t have any food intake at home in the morning, but are given by their parents a 25F to 100

F coin to buy something out of home, particularly in the schoolyards

A study led by IRD, GRET, DCMS & financed by danone.communities was carried on 5-12 yo children’s nutritional

status in public primary schools in Dakar and suburbs and show the following results (2010) :

Prevalence of micronutrients deficiency* among targeted population : Iron: 35% ; Iodine: 30%; Zinc: 28%;

Vitamin A (4%), with a high proportion of children in the limit of deficiency

Macronutritional status of targeted population : stunting (delay in growth = height/age) : 4% of the children;

thinness (IMC /age): 18%, among which 6% is severe thinness

15- 50 yo women’s health status is also worrying: 18% are extremely thin (34% among 15-20 yo women), 59%

have anemia and 23% have goiter most probably linked to iodine deficiency (MI, 2004)

5

*who : prevalence less than 5% is no public health issue ; prevalence more than 20% is public health issue for

which action needs to be taken ; 5-20% : vigilance status

Sources: EDS IV, 2005

Main nutritional deficiencies among

children from 2 to 5

% affected among

the total population

% affected among

the richest 20%

% affected among

the poorest 20%

Chronicle malnourishment 20% 26% 6%

Medium and severe malnourishment 8% 9% 7%

Deficiency in iron 79% 87% 77%

Deficiency in vitamin A 61% - -

Deficiency in iodine 65% 78% 46%

Vision & Mission of “Lemateki”

Lemateki is a co-build initiative involving Enda Graf Sahel, La

Laiterie du Berger, danone.communities in partnership with

Senegalese government. Lemateki is the name given to the project, as

it is a short version of 3 words in wolof meaning : « Eat, Grow,

Succeed ».

Vision: « Creating conditions for each individual to build up his life in a

society that provides more inclusion and equity »

Mission: « Contributing to improve primary school kids nutrition in

Senegal using local and existing resources to maximize local

economic and social return »

Approach :

Build an alliance of local partners (government, NGO, social

enterprise, social business incubator) to make a sustainable impact

Step by step learning by doing to adapt sustainable model

maximizing social impact

Objective by 2014/15: Impact nutrition of at least 40 000 kids through

distribution of a fortified local product and through nutritional

education, community appropriation and women involvement ; in a

sustainable way ie by selling at least 2 million units of product per

year.

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II. Evolution of the project P

rep

ara

tio

n P

hase

L

au

nch

& T

est

Ph

ase

Birth of the Project

Preliminary Study

Conception of the Product

A 1st market test at 50F

A 2nd market test at 25F

A new product offer

A new local partner

1

2

3

1

2

3

4

Distribution Strategy 4

A new business model 5

Birth of the project

Step 1

Jan 09-

Jul 10

Feb 08

-

Dec 09

Preparation 1

Since its genesis, danone.communities wanted to support

social business projects in Africa.

This started 2008 in Senegal with La Laiterie du Berger, a

social business start-up valorizing local milk and thus impacting

positively Peul herders’ living conditions.

In parallel, danone.communities intended to support a project

on nutrition.

An exploratory study was carried in 2008 involving GRET,

ENDA GRAF SAHEL and others partners like Cellule de Lutte

contre la Malnutrition, Division de l’alimentation, de la nutrition

et de la survie de l’enfant, Institut Fondamental d’Afrique Noire

- Université Cheikh Anta Diop.

This study was the start of a co-creation process including also

Division du Contrôle Médical Scolaire, World Food Program to

co-design a project : target, food form, place & moment of

consumption, distribution, ambition in terms of social

impact…through different workshops in Dakar (november 2008,

july 2009).

This study also showed that there was a need for scientific data

on nutritional status of 5-12 yo urban school kids.

The study is online here : http://www.danonecommunities.com/sites/default/files/EtudeExploratoireSen

egal2008.pdf

Gathering the right actors

Preliminary Study

Step 1

Jan 09-

Jul 10

Jan 09

-

Jul 10 Understanding the nutritional need

The need for knowledge on the nutritional status in terms of

macro- and micronutrients among the targeted group –

namely 5-12 yo urban school kids – led to a study run by

GRET in Senegal, under direction of Jacques Berger,

Professor at Institut de Recherche pour le Développement in

Montpellier, and with support of senegalese government.

Main results confirm the relevance of fortified products :

•Prevalence of micronutrients deficiency* among targeted

population is :

o 35% Iron

o 30% Iodine

o 28% Zinc

o 4% Vit A, but with high proportion of kids in the limit

of deficiency

•Macronutritional status of targeted population : 4% stunting

(retard de croissance = taille / âge); 18% thiness (maigreur :

IMC /âge) incl. 6% severe thiness

*who: prevalence less than 5% is no public health issue ; prevalence more than 20% is public health issue for which action needs to be taken ; 5-20% : vigilance status.

Source : Cross-sectional study about anthropometric and micronutrient status of children from public primary schools in Dakar and suburbs – 2010 – GRET/IRD

Preparation 2

Conception of the product

Step 1

Jan 09-

Jul 10

Based on the results of previous study (2010 –

GRET/IRD), Moss Tekki was designed to fulfil the

nutritional needs of children in Senegal and to

contribute to their healthy growth by bringing

them a tasty safe product, that needs no fridge, a

feeling of satiety & benefits of micronutrients they

lack.

Moss Tekki is a cereal paste essentially made

with local cereals (mil), beans (niebe), local cow’s

milk, local cane sugar.

A single 50g pouch provides 20% of a child's

daily requirements of vitamin A, iron, zinc and

iodine. 50g of Lemateki recipe brings 48 kcal ;

Protein : 3,48%; Fat : 1,53%, Carbohydrates :

22,2%

Price per pouch of Moss Tekki has been

designed for kids to be able to afford it regularly.

Price is 50 Fcfa for 50g.

Moss Tekki, a fortified cereal paste to meet the nutritional

needs of Senegalese kids

Preparation 3

The first product conceived was Moss Tekki. Moss

Tekki was the product name, as Lemateki was not

understood by kids. It literally means in wolof ‘Taste &

Succeed.

Moss Tekki has been specifically developed by

Danone’s experts in R&D, with local help in the choose

of traditional ingredients of Mrs Bineta Diokh, an

extraordinarily committed woman : founder of a

restaurant in Dakar, she is representing the Slow Food

movement in Senegal and is running actions to

educate kids to nutrition through local ingredients.

Aug 10

-

Sept

11

Step 1

Jan 09-

Jul 10

Aug 10

-

Sept

11

Preparation 3 Conception of the product

A local supply business model

Moss Tekki was first produced in France, but it was designed to be

produced in a small factory near Dakar, built with the Danone know-how on

quality and food safety.

The project was designed to maximize use of local resources in order :

•to reduce cost of imports and transportation

•to benefit as much as possible to the local communities at each level of

the value chain

80% of ingredients were local : milk was supplied from La Laiterie du

Berger, mil couscous and niebe wheat were supplied from local structured

women groups that were buying the cereals and beans from local

producers. Cane sugar was bought from Compagnie Sucrière du Senegal.

Tamarin and neb neb were also bought locally. Only micronutrients and

aroma were imported.

The initial distribution strategy

Step 1

Jan 09-

Jul 10

Preparation 4

1. Women micro-entrepreneurs within schools

In and around urban schools through women micro-

entrepreneurs : approx 10 sales women are authorized by

each school director and though hygiene certificate to sell food

to kids at school, during morning break.

They come from the community around, are generally well

experienced, know each other and organize themselves to

split the offer. They often lack education, possibility to access

social benefits like medical insurance, or opportunity to

organize education for their daughters.

The project aimed at involving 1250 women by 2018 in the

distribution of Moss Tekki. They should get a fixed margin per

sold unit ( approx 10 Fcfa) to enhance their income plus 5

Fcfa to benefit from social benefit they could choose

collectively.

This channel was foreseen to represent 15% of sales in the

business plan. Still it is the one that should maximize chances

of impacting kids health through daily consumption.

A 2 legs distribution model with a strategic entry point :

secondary schools

2. Proximity shops

Large majority of shops in Dakar and Senegal are small

proximity shops. The project aimed at selling a 80g – 100

Fcfa pouch of Moss Tekki into this channel through help of

a local social entrepreneur / distributor.

Shops should represent 85% of sales.

Distribution was planned to be based on two channels :

As the school distribution represented the specificity and

originality of the project, it was decided to first focus on

this distribution channel.

A first market test at 50Fcfa

Step 1

Jan 09-

Jul 10

Launch & Test 1

In order to test the business model, the distribution strategy and

assess the social impact potential, it is decided to set up and run

a test in situ phase in the first half of 2011 :

1 limited area : Dakar suburbs, Pikine-Guediawaye – Thiaroye

1 limited duration : April 2011 - June 2011

19 schools

57 micro-entrepreneurs for distribution, with real trade scheme

and logistics conditions

a 6 months out of chilled pouch produced from - at

development stage - in a french Danone factory

1 team with a manager hosted by Enda-Graf Sahel and its

small dedicated team.

Results :

Acts of purchase / day / school : 36

Daily average penetration rate : 4%

Analysis :

The 50F MossTekki was not competitive with 25F products

available in the schools, sold by the same micro-entrepreneurs

women

Children often only have a 25F coin in their pocket

Moss Tekki

Product

Distribution

Business Model Summary :

Women micro-entrepreneurs

Apr 11

-

June

11

50g

20% RDI

(Proximity shops not tested at this

stage)

A 2nd market test at 25Fcfa

Step 1

Jan 09-

Jul 10

Nov 11

-

June

12

Launch & Test 2

Results :

Acts of purchase / day / school : 47

Penetration rate : 7%, not even the double of

the 50F performance in the 1st market test

Analysis :

Even at 25F, kids didn’t like the product enough

to prefer it to other available sweets at 25F

The decreased quantity and fortification made

no social impact and no sustainable economic

model

To get a 25F product and compete with other 25F products sold in

the schools, a second market test has been tried to test a 20g

Moss Tekki.

The recipe wasclose but excluded milk: a cereal paste essentially

made with cereals (mil, wheat germ, corn flour), local cane sugar,

tamarin.

A single 20g pouch provides 10% of a child's daily requirements of

vitamin A, iron, zinc and iodine. 20g of Lemateki recipe brings 21,5

kcal ; Protein : 0,4g; Fat : 0,2g, Carbohydrates : 4,5g incl. sugar

2,9g.

Product

Distribution

Business Model Summary :

Women micro-entrepreneurs

20g

10% RDI

To compete with 25F competitors in the schools

(Proximity shops not tested at this

stage)

A new product offer

Step 1

Jan 09-

Jul 10

June

12

-

today

Launch & Test 3

A fortified thiakry, a beloved Senegalese product To better feed Senegal children and fit their taste, it is decided to develop a new product.

Dolima Doolé is a fortified thiakry essentially made with local

cereals (mil), beans (niebe), local cow’s milk, local cane sugar.

The product has 4 main characteristics :

Nutritional : A single 80g pouch provides 20% of a child's

daily requirements of vitamin A, zinc, iron and iodine

Hygienic : the product has a individual pouch, guarantee of

quality

Local : the milk is collected by la Laiterie du Berger,

contributing to the development of the country; and the cereals

are local

Social : the product is bought at production cost, as part of

the industrial’s social mission. Price per pouch of Dolima Doolé is 100 Fcfa for 80g. Dolima Dollé is produced in the factory in Richard Toll (North of Senegal), by la Laiterie du Berger.

From Nutrition to Nutrition-Food

It is then decided to turn from nutrition to nutrition-food to

better feed the children, and have more impact.

The team has thus developed a new product, with a new

recipe, a new quantity, and a new price.

Dolima Doolé, a fortified thiakry to meet nutritional needs

and taste of Senegalese kids

A new local partner

Step 1

Jan 09-

Jul 10

July 12

-

today

Launch & Test 4

The expertise of La Laiterie du Berger to manufacture and

distribute the Dolima Doole

Product

Distribution

Business Model Summary :

Women micro-entrepreneurs

Proximity shops

80g

20% RDI

The new product and strategy gave the following results :

Results :

Acts of purchase / day / school : 20

Penetration rate : 2%

Problem :

At 100FCFA, the product was too expensive for most of the

children, and only the most privileged children can afford it…

therefore the social impact was low.

The need to partner with a local partner

As the product was now 100 F, it obviously became too

expensive for the children. The project needed co-financing…

La Laiterie du Berger, a social business also supported by

danone.communities, then became a key partner of the

project, as the manufacturer and distributor of Dolima Doole.

Starting from this point, Lemateki could rely on :

the expertise of LDB to manufacture and distribute the new

products (at cost, as part of its social mission)

and on an existing brand : Dolima (« Give me more of it » in

wolof)

A new business model

Step 1

Jan 09-

Jul 10

Apr 13

-

today

Launch & Test 5

Product

Distribution

New Business Model Summary :

Collectivities

Proximity shops

80g

20% RDI

Involving local governments to reach all the children in need

The board of Lemateki has voted a new strategy in April 2013.

Lemateki has decided to progressively stop selling the products

through the women micro-entrepreneurs and to start targeting

local governments.

This strategy will enable Lemateki to be self-sustainable, if it

reaches :

165 tons of sales per year

175 million F CFA of turnover (VAT excluded)

16% of children in public schools

Two first contracts have already been signed in April for first

pilots with local governments, which have assumed 100% of the

price of the products (100 F CFA).

Nevertheless, the aim is that from next school year, parents of

the beneficiary children also contribute to the initiative and pay

25% of the price.

Lemateki also realizes hygiene trainings in the schools in

partnership with the DCMS (Medical Health Control Division).

These trainings are also part of the offer to the local

governments and are a specific point of uniqueness.

Next steps :

Assess how local women can be part of the new

strategy. For example, see how they could be part of

the hygiene trainings

Find some subsidies or donations which would

contribute to the financing of the activity until it become

self-sustainable

Think about the possibility to propose a

complementary offer to local governments which would

include dry and calorific food such as bread

Synthesis : Evolution of the Project

2008

Product :

2009 2010 2011 2012 2013

Dolima Doole,

100 FCFA

Moss Tekki,

25 FCFA

Moss Tekki,

50 FCFA

Studies :

Distribution :

Explorary Study Preliminary Study

Women - Schools

Conception of

the product

Proximity shops

Local

Governments

La Laiterie du Berger

Lemateki, a Social Business Project

in Senegal

April 2013

Contact : isabelle.sultan@danone.com