Update on the Activities of The DaNa Facility · 2018-08-02 · Presentation Structure • The...
Transcript of Update on the Activities of The DaNa Facility · 2018-08-02 · Presentation Structure • The...
Update onthe Activities ofThe DaNa Facility
July 2018
Responsible, inclusive and sustainable privatesector development
Focussing on business development inMyanmar’s states and regions
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Presentation Structure
• The Business for Shared Prosperity Programme
• The DaNa Facility Overview
• DaNa Facility – Technical Assistance Activities
• DaNa Facility – Open Call Grant Activities
• Addendum Slides
– More details on DaNa Facility Activities and Grant Windows
Why Business for Shared Prosperity (BSP)?
Myanmar Inclusive Growth
Diagnostic
DFID in Myanmar Business
Plan
Myanmar Sustainable
Develop-ment Plan
DFID Government of Myanmar
DFID in Myanmar’s
PSD Priorities
PSD Framework
• Unlocking trade potential (BSP)• Financial sector development (BSP)• Business environment reform (BSP)• Responsible, ethical and inclusive business
(BSP)• PSD in the states and regions (BSP, BIF)• Stimulating investment (BSP, ICM, CDC)• Market systems development (BIF)• Infrastructure and cities (CIG, ICM, CDC)
12-point government
economic policy
The DaNa Facility
DAI Europe and KPMG£25m
Business for Shared Prosperity (£55m, 5.5 years)Aim: Inclusive growth driven by private sector development
Investment Climate and Competitiveness Programme
IFC and World Bank£10m (+£10m Australia)
Doing Business Reform Fund
Multilateral Development Banks£19m
DFID Myanmar
External evaluation, £1m
Financial Sector DevelopmentWorld Bank
(£5m of above)
Approved Project Pipeline
Trade and Investment, ITCWomen Eco Empowerment, UNCDFCapital Markets Development, ADB
What is the BSP?
Direct grantees
MCRB, TAF,UNCDF
Competitive window grantees
Eco Empowerment Window, x4Business Innovation Window, x11
The DaNa Facility – What are we Doing?
• Supporting inclusive economic growth through responsible and sustainable private sector development
• £25 million UK Department for International Development funded programme running to December 2020
• Through inclusive economic growth…
…the DaNa Facility will support:
o Job creation
o Increased incomes
o New economic opportunities
o Competitiveness
• …through responsible and sustainable:
o Private sector development
o Enterprise empowerment
o Inclusive business
• Focusing on private sector development in the states and regions
Growth that focuses on creation and expansion of economic opportunities, and ensures broader access to these opportunities –by women, people with disabilities, and other poor and disadvantaged groups
Aligning with the Government’s PSD Approach
• Engaging with all key stakeholders
• Coordinating with development partners in the PSD space
• New dimensions:
–Myanmar Sustainable Development Plan
– Inclusive, responsible and ethical business
– PSD in Myanmar’s states and regions
• Providing inputs to the PSD Committee
The PSD Framework and Action Plan
The DaNa Facility
‘Open calls’ and direct grants
Trade and compet-itiveness
AgribusinessGarments and
textilesCommunity
forestry
Technical assistance(policy reforms/capacity building)
Business environment
reform
Inclusive and responsible
business
Financial deepening (access
to finance)
Others tbd.
Themes:
Sectors:
Context/ conflict
sensitivity
Political economy dynamics
National and sub-national level
emphases
Cross-cutting issues
Social and environmental sustainability
Economic empowerment for women and
disadvantaged groups
Synergistic Modalities
How the DaNa Facility Nurtures Business
• Public-private Dialogue and the PSD Committee
• Grants to support transformation and innovative activities
• National Export Strategy
• Investment promotion and facilitation – national and states and regions
• State/region business environments – Myanmar Economic Governance Index
• Financial Inclusion Roadmap
• Responsible business – with the Myanmar Center for Responsible Business and the Myanmar Institute of Directors
• Inclusive businesses and impact investing
• State/region business associations; ‘do no harm’
Key Achievements in the Last Year - 1
Overall• Completing the DaNa Facility Strategy and Action Plan• Preparation of a concept note on strengthening the PPD
mechanism/PSD CommitteeInvestment Promotion• Coordinated with DICA/OECD on the Investment Policy Review
refresh, focussing on backward linkages• Developing state/region investment promotion and facilitation
strategies; pilot in Chin underway, activities in other States planned• Completed the initial Myanmar Economic Governance Index survey
with The Asia FoundationFinancial Deepening
• Launching support activities for the Financial Inclusion Road Map
Implementation, and implementing the refresh of the Making Access
Possible (MAP) survey jointly with UNCDF
Key Achievements in the Last Year - 2
Trade• Engaged in key NES elements within the DaNa Facility’s priority
sectors, including intensive policy research on CMP/FOB policies in the garments sector, and export strategy for avocados
Inclusive and responsible business practices
• Established the Myanmar Institute of Directors with IFC
• Supporting the Myanmar Centre for Responsible Business and
seeking collaboration
• Completed Inclusive Business assessment, and ways to promote
IB/Impact investing
• Preparation of concept note on Modern Day Slavery for BSP
• Supporting the women empowerment agenda (NSPAW), and a joint
activity on sexual harassment in the workplace with IFC
Key Activities for the Next Year - 1
Overall• Strengthening public-private dialogue/PSD Committee, with IFC and
ITC• Strengthening the operations of the BSP Secretariat, and the DaNa
Facility support to BSP partnersInvestment Promotion• Support DICA with strengthening of the National Investment
Promotion Strategy (including the implementation of the OECD Investment Policy Review)
• Complete Chin investment strategy (and commence at least one other state/region)
• Disseminating the first Myanmar Economic Governance Index across Myanmar
Financial Deepening• Disseminating the micro-insurance benchmarking study • Implementing financial inclusion activities, including FinTech
Key Activities for the Next Year - 2
Trade• Support the launch of the Trade and Investment Programme with ITC
under the DBRF (of £4m)• Complete the policy review of the key regulations in the garments and
textiles industries. This will be done in partnership with the MTMA and MGMA
Inclusive and responsible business practices
• Rolling out activities to promote the inclusive business/impact
investing eco-system
• Partnering with ICCP on development of the Myanmar Institute of
Directors
• Commencing a ‘do no harm’ initiative for SMEs on DaNa’s projects
Other Activities• Finalizing the Pa-O Socio-Economic Development Plan
Achievements: Open call grantsEconomic Empowerment Window
• 4 grants to non-profits in mid-2017 for around £2 million
• 3 in agriculture (beans and pulses, coffee, avocado, elephant
foot yam, other vegetables); one in people with disabilities
• Chin and Shan States, Pa-O Zone, Mandalay, Yangon,
Magway, Bago Regions
• Active monitoring and tracking
• Seeking synergies between EEW grants and other DaNa
Facility activities, including cross cutting themes (MFVP, MIID,
gender issues, etc.)
Achievements: Open call grantsBusiness Innovation Window
• Targeting inclusive businesses in target sectors with a minimum 50% matching fund requirement
• Launched in late August 2017 with 78 submissions• Comprehensive evaluation, including cross cutting issues• Final project selection of 11 projects by an independent investment
committee in late February 2018 totalling around £5 million with £9 million leveraged– 3 garments and textiles projects (silk, cotton, weaving)– 3 financial inclusion projects (inc. factoring, mobile money, micro-
insurance)– 5 agribusiness projects (inc. coconuts, chilis, rubber, vegetables, swine,
etc.)– Good geographic spread across Myanmar (inc. Rakhine)– Evenly spread between local and foreign lead applicants
• Extensive consultations throughout to provide substantive support• Grant agreement signing in June-July 2018• Launching the Business Innovation Window projects over the next quarter
Challenges and Lessons Learned
• Partnerships and capacity development. Critical need to strengthen activities to enhance partnerships with key clients and stakeholders, and to incorporate capacity development into all DaNa Facility operations.
• A coherent set of initiatives. Overall, a positive balance between DaNa Facility grant and TA activities has been established – seeking potential for synergies and linkages. And as the various components of the BSP progress, coordination and joint activities can be further enhanced.
• Government engagement. The DaNa Facility’s systematic and high level connections with government (MIC, PSD Committee, and others) are crucial for supporting PSD reforms of the government.
• Flexible and adaptive approach. Political developments both in the UK and in Myanmar has called for flexibility and adaptive programming.
The DaNa Facility – Summing Up Key Features
• Understanding of private sector development and alignment with government’s approach.
• Flexibility and responsiveness, in particular to allow for programmatic change in Myanmar’s rapidly evolving context, while keeping focused and avoiding mission creep.
• Ability to ‘go deep’ in transformative areas which will yield stronger and more meaningful impacts, ‘game changers’.
• Stakeholder engagement and coordination – linked to support to private sector development
• Monitoring and evaluation – from the beginning
Addendum
DaNa Facility Activities by Sector, by Thematic Pillar, by Cross-cutting Issues, by
Strategic Response, etc.
Garments and textiles
• Institutional capacity support to the operations of the Myanmar Textile Manufacturing Association, including comprehensive operational strategy development
• Preparation of a textile industry strategy for Myanmar (jointly with other development partners such as Pyoe Pin)
• Explore inclusive business models in the garments and textiles industries
• Tax policy review and reform (CMP/FOB); bonded warehouse options
• BIW grant projects
Community forestry
• Align activities with the government’s push for market oriented community-based enterprises
• Explore links with eco-tourism
• Exploring a TA activity to work with key stakeholders to prepare community forest enterprises for commercial activities
DaNa Facility Activities: Sectors
Agribusiness
• Initial focus on beans and pulses, in line with activities in the market
• Financing of agribusiness value chains (in cooperation with the Mekong Business Initiative / ADB)
• Meso activities to support the Myanmar Fruit, Flower and Vegetable Producers (MFVP) Association, Beans and Pulses Traders Associations, commodity exchanges, and others
• Four EEW and more potential BIW grants
• Potential for direct grants in agribusiness
DaNa Facility Activities: Thematic pillars (1)
Trade and competitiveness - Working with the Ministry of Commerce (MoC)
• Support the implementation of the National Export Strategy (NES), jointly with the International Trade Centre through the Trade and Investment Programme financed by the Doing Business Reform Fund.
• Engage in key NES elements within the DaNa Facility’s priority sectors
Investment promotion and facilitation - Working with the Directorate of Investment
and Company Administration (DICA)• Implemented workshops in June 2017 (jointly with UN ESCAP) to strengthen
investment promotion and capacity building in all states and regions• Support DICA with strengthening of the National Investment Promotion Strategy
(including a refresh of the OECD Investment Policy Review and work on backward linkages)
• Follow up with more detailed activities to develop state/region investment promotion and facilitation plans; pilot in Chin underway, considering additional states
Private sector development - Working with the MoC and DICA
• Supporting the PSD Committee• Strengthening the Public-Private Dialogue mechanism to support policy reform• Leading coordination of PSD development partners• Supporting national PSD road shows
Business Environment Reform
• Implementing the first Myanmar Economic Governance Index, jointly with The Asia Foundation
• The first MBEI survey nearly completed by June 2018; then one year of diagnostics and dissemination and addressing key reform issues; the second survey is due to take place in late 2019
• Supporting institutional growth of business associations in the states and regions
Macro-levelDiscussing several areas including:• Awareness building on the new company law among SMEs• Gender review of key business laws• Development of a commercial arbitration mechanism• Support to policy and advocacy work related to EEW and BIW projects, such as
support to the development of an avocado export strategy
DaNa Facility Activities: Thematic pillars (2)
DaNa Facility Activities: Thematic pillars (3)
Financial deepening (access to finance)– Working with FRD, Ministry of Planning and Finance
• Support to the Financial Inclusion Road Map Implementation • Refresh the Making Access Possible (MAP) survey
– Exploring activities in agricultural finance (eg. warehouse receipts), FinTech, impact investment, mobile money, micro-insurance)
– EEW and BIW activities
Inclusive and Responsible Business• Support to Myanmar Centre for Responsible Business, and collaboration
• Inclusive Business assessment in Myanmar, and ways to promote the inclusive growth
eco-system and impact investing
• Support the establishment of a Myanmar Institute of Directors
• Developing and piloting a toolkit for business on conflict sensitivity and ‘do no harm’
How can the DaNa Facility promote IB and Impact Investing in Myanmar?
- Inclusive Business Assessment in Myanmar
- to assess the business environment for promotion and development of IB and impact investing,
- to identify possible IB investment opportunities,
- to advocate the enabling environment for IB promotion
- to raise awareness and support branding of Myanmar IB in Myanmar and in the region
- Technical Assistance to support development of IB models
- Business Innovation Window and Direct Grants to promote identified IB in Myanmar
Conflict sensitivity
• Conflict sensitivity strategy for the DaNa Facility, including development
of a set of operating principles
• Inputs in the evaluation and monitoring of the DaNa facility’s grant
projects
• Developing a toolkit for the private sector on conflict sensitivity and
‘do no harm’
Political economy
• Political economy approach for the DaNa Facility
• Inputs in the evaluation and monitoring of the DaNa facility’s grant
projects, especially on business and political economy
DaNa Facility Cross-Cutting Issues
DaNa Facility Cross-Cutting Issues
Gender and women’s economic empowerment• Gender strategy for the DaNa Facility
• Inputs in the evaluation and monitoring of the DaNa facility’s grant projects, and support to these projects on gender issues
• Supporting implementation of the National Strategic Plan for the Advancement of Women (NSPAW)
• Joint activity on sexual harassment in the workplace with IFC
Environmental and social responsibility• Environmental and social responsibility approach for the DaNa Facility, including
climate change
• Inputs in the evaluation and monitoring of the DaNa facility’s grant projects, especially on environmental compliance
Modern-Day Slavery - new theme• Recognition of slavery within the sectors we work in
• Promoting rural incomes to support the reduction in migration and exposure to precarious working conditions
• Supporting grantees to ensure that social compliance and labour standards are adhered to, and that the potential for slavery-like conditions is markedly reduced.
Strategic responses:
• Support to the Ministry of Industry on textile and heavy machinery state-owned enterprise (SOE) reform (completed)
• Inputs to the Development of Rakhine State Socio-Economic 5-Year Plan (completed)
• Competitive assessment of the Yangon Industrial Zones, in response to request from the Yangon Chief Minister (completed)
• Support to the launch of the International Council for Small Business (ICSB), Myanmar, and the holding of a major regional SME Conference (completed)
• Support for the update of the socio-economic development plan for the Pa-O self-administered zone (ongoing)
• Technical assistance to the Ministry of Planning and Finance for the preparation of economic development planning materials (being considered)
DaNa Facility Strategic Response Facility
The DaNa Facility Grant Windows
Economic Empowerment Window
EEW: Pulses, People, Planet and Profit (P4)
• Grant size: GBP 600,000, plus GBP 145,120 co-funding
• Aim: to increase the incomes of 10,000 smallholder mung bean farmers, of which 30% are landless female farm labourers in 4 townships in Yangon and Magway regions.
• Improvements in yield and quality will allow penetration of mungbeans into the EU market, where demand currently exceeds supply.
• Thereby increasing farm gate prices and breaking the current Indian stranglehold (inc. recent import quota) resulting in extreme price volatility.
• ICCO (the implementer) working across the value chain, pursuit of GAP and Climate Smart Agriculture, improved seeds (East-West Seeds), certification (Control Union) and Network Activities Group.
• Considerable potential where even basic processing has generally not occurred, better seeds that allow for mechanisation (labour shortages increasingly an issue).
EEW: Coffee, avocado and EFY (CAEFY)
• Grant size: GBP 564,000, plus GBP 32,800 co-funding
• Aim: to increase the incomes of 2,000 upland smallholder farmers in five townships in southern Shin and Shan states, of which at least 40% will be women.
• Inter-cropping and interventions across the value chain, including:
o farmer-to-farmer cross learning (Shan to Chin)
o post-harvest processing
o entrepreneurship training for processing SMEs
o training on standards and quality development
o negotiation and product promotions skills
• Capacity-building support to the Myanmar Fruit and Vegetable Producers (the implementer), to help up-grade from an association to a federation …
• ... founded in 2006, has 40,000 members across 10 states and regions, and 30 crop-specific clusters
EEW: Vegetable value chains in Pa-O
• Grant size: GBP 307,000 (no matching funds)
• Aim: to improve incomes of over 400 smallholder producers, 70% of which are women, in the post-conflict Pa-O self-administered zone, southern Shan.
• Although a ceasefire was signed in 1991 (after 40 years of conflict), and has held, the zone has been economically isolated, and agricultural practices are out-dated …
• … contrasting with much of southern Shan, which has seen considerable DP interventions in agriculture
• Myanmar Institute for Integrated Development (MIID) will introduce farmer field schools, agribusiness advisory services and the creation of producer groups
• Working with Myanmar Belle, a local processing firm that has access to export markets (inc. Japan)
EEW: Opportunities for people with disabilities
• Grant size: GBP 523,900, plus GBP 275,200 matching funds
• Aim: to provide new and sustainable economic opportunities for over 1,000 PwD, and especially women. Working in Mandalay, Bago and Yangon.
• Two-thirds of PwD of working age are unemployed and typically excluded from vocational training and work opportunities.
• The Leprosy Mission and BRAC Microfinance will work to develop and scale-up new job opportunities (either as employees or self-employed)
• The project is well aligned with a new disability law that will set specific quotas for companies to hire PwD.
• Working with Enablement (a Dutch NGO that specialises on interventions that empower people with disabilities.
Business innovation window: How it works