Transcript Slide 1

IDENTIFYING RESOURCE MOBILISATION STRATEGIES THAT WORK
IN AFRICA
PASCHAL MBECHE
1st Deputy Governor, Kenya Red
Cross
SINO – Africa Conference
August 2014
KEY THEMES THAT WE WILL COVER TODAY

Breaking down the term “resource mobilisation”

Trends & challenges facing resource mobilisation in Africa

Use of 3 effective resource mobilisation strategies in Africa

The Kenya Red cross Resource Mobilisation Model - A Lesson for
Africa
WHAT IS RESOURE MOBILISATION?
•Enlisting all necessary resources, be they human, material or services,
ready for action to achieve specific goals
•Resource mobilisation means expansion of relations with the resource
providers, and the skills, knowledge and capacity for proper use of
resources
•Not only money
•Denotes the process that achieves the mission of the organisation through
the mobilisation of knowledge for human use of skills, equipment, services
etc.
•Also includes seeking new sources of resource mobilisation as well as the
correct and maximum use of available resources
CURRENT TRENDS IN RESOURCE MOBILISATION IN AFRICA
Donors
Earmark their
Support
Donors Favour
Africa
•The African Region
continues to receive
significant donor
attention
•This is good news but
does not mean that the
resource mobilisation
process gets any easier
•There is need to look also
at alternative sources of
funding while continuing to
strengthen the traditional
sources
Donors
demand
Accountability
•Many donors choose to
earmark their contributions
to align with their national
priorities for development
aid and/or facilitate
accountability
•Donors are decentralizing
their support. Analyses of
donor funding trends
clearly indicate that there
is a distinct shift towards
decentralization,
bypassing global and in
most cases also regional
structures
•The increased level of
interaction at country level
has also engendered a
demand for increased
accountability and more
rigorous requirements on
reporting on outcomes
Donors
demand
Results
•Donor agencies are
increasingly under scrutiny
from their own
constituencies and have to
justify international
development strategies
with taxpayers, internal
pressure groups and civil
society organizations
•As a result there has been
a significant increase in
hands-on involvement and
an emphasis on results and
impact
CHALLENGES OF RESOURCE MOBILISATION IMPLEMENTATION
EFFORTS IN AFRICA
•
1
Lack of
Information
•
2
•
Lack of Processes
& SOPs
•
Not enough strategic and relevant information related to resource mobilisation flows within and beyond the local
offices of African NGOs.
Information relating to definitions, donor profiles, processes, application of PSC, funding opportunities, predictability
of funding etc. needs to be readily available or easy to access.
African NGOs need to standardize processes and operation procedures with respect to the mobilisation of
resources.
They require solid basic processes that will facilitate rather than hamper initiative and enhance efforts.
3
Lack of Incentives
& Empowerment
•
Staff members require incentives to identify opportunities, design projects and articulate activities to donor
audiences. They need to do so in a conducive environment that encourages both individual and team efforts.
Insufficient Skills
or Capacity
•
•
Individuals need relevant skills and capacity to capture and optimize opportunities as they are presented to them.
Training is not in itself an objective. It needs to be accompanied by support for applying newly acquired skills and
capacity at the country level.
4
5
•
Legal
and
Little
Emphasis
on
shareholder
existing
or Interpersonal
•
influences
Relations
The value of existing relations and networks cannot be overemphasized. Studies have shown that a major
motivation in the decision to commit funding is the relationship between the donor and the recipient.
Efforts should be undertaken not only to build new relationships, but to nurture existing ones.
6
Donors are placing increasing importance on implementation, delivery, monitoring and evaluation
of programmes, as well as documentation of impact.
NGOs in its proposals, reports and through inter-personal communication highlight the mechanisms and systems
it has in place to ensure accountability, transparency and cost-effectiveness.
Legal andon
Emphasis
shareholder
producing
Results
influences
and
M&E
•
•
5
NGOS CAN EFFECTIVELY USE 3 RESOURCE MOBILISATION STRATEGIES
TO RUN THEIR PROGRAMS
GRANTS & DONATIONS
COST RECOVERY
• Traditional philanthropy is
here to stay but meeting donor
conditions is becoming ever
more stringent as western
governments , foundations and
international NGOs reduce
their funding to African NGOs
• By selling rather than giving
away their services, NGOs
can recover part or all of their
costs, better allocate their
services to those who truly
value them, and enhance the
self-esteem and commitment
of participants
• More and more NGOs are
thus designing intervention
strategies that incorporate
cost recovery components
through fees-for-services or
various loan and credit
arrangements
• Staff must start thinking in
business terms & have to
learn specific business skills &
concepts
• Individual giving is largely
untapped in Africa which now
has its own fair share of
millionaires. Leveraging your
networks to approach these
people is crucial
• Use of technology for
donations has also become
increasingly popular in Africa
particularly the use of phones
COMMERCIAL
VENTURES
•The best NGOs are clearly
as entrepreneurial as the best
private companies, being able
to make things happen and
create something out of
nothing
•Like commercial marketers,
these NGOs find underserved segments of the
population and design
products & services to meet
the needs of those
markets
• KRCS has been particularly
successful at diversifying their
sources of funding &
expanding into business
ventures
KRCS Corporate Partnerships Through
Innovation

In 2011 KRCS KRCS saw the potential
of a campaign and partnered with
mobile network provider Safaricom,
mobile money transfer system M-Pesa,
and the Kenyan bank KCB, to launch
the Kenyans for Kenya drought
initiative

The campaign around was launched
with a view to collect local resources to
address the drought in the immediate
term but a long term solution to the
perennial drought being faced by them.

The initiative raised a total of Ksh.1
Billion that is 700 million in cash and
300 million in kind (equivalent to
USD11.2M or RMB 67.4M)
Kenyans for Kenya flag off at Uhuru Park
K4K food security projects executed in
East Pokot, Walda (Moyale) and Turkana North
Began in 2011 & still reproducing in 2014
Cleared land
Irrigation
Ready for planting
Harvest
Planting ongoing
Ready for selling
THE KENYA RED CROSS RESOURCE MOBILISATION MODEL : A
LESSON FOR AFRICA 1/4
“We are aiming for sustainability but our immediate goal is to
cover our core costs, which donors are reluctant to pay. That is
why we are investing heavily in business ventures so that we
generate enough profit to pay our operational costs at the end
of every year.”
Abbas Gullet, Secretary General
Kenya Red Cross Society is the leading humanitarian organization in Kenya and is
conscious of the fact that it must provide excellent services to the beneficiaries of our
humanitarian response. For this to be realized, we need to be adequately prepared in
terms of resources, the turn around time and ability to sustain our response effectively.
Kenya Red Cross Society has successfully applied the Commercial Ventures model
mentioned in the previous slides.
Rather than continuing to rely on traditional philanthropy, we went against all
known norms by investing in commercial ventures whose proceeds could be
easily ploughed back in the humanitarian work of KRCS.
THE KENYA RED CROSS RESOURCE MOBILISATION MODEL : A
LESSON FOR AFRICA 2/4
Kenya Red Cross opened the Red
Court Hotel, a three-star property in
Nairobi offering accommodation and
conference facilities, with profits going
to fund KRCS humanitarian work. The
hotel was a success, becoming
popular with professionals involved in
the humanitarian relief sector, and with
business and leisure travellers of all
kinds, thereby providing KRCS with a
source of extra revenue.
THE KENYA RED CROSS RESOURCE MOBILISATION MODEL : A
LESSON FOR AFRICA 3/4
At The Boma Hotels in Nairobi, Nyeri
and Eldoret, you become part of a
circle of humanitarian values and
social responsibility. All profits fund
the Kenya Red Cross Society's
Humanitarian activities.
The Boma calls this inspiring
concept
“hospitality with a conscience.”
THE KENYA RED CROSS RESOURCE MOBILISATION MODEL : A
LESSON FOR AFRICA 4/4
Emergency Plus Medical Services is a
company fully owned by the Kenya Red
Cross Society, whose core business is
the provision of advanced Pre-hospital
emergency medical services. In its 3
years of existence, E-Plus has been
providing pre-hospital medical care and
transportation to patients with illnesses
and injuries on a Commercial basis as
well as under Corporate
Social Responsibility.
THE KRCS RESOURCE MOBILISATION MODEL: YOU CAN DO IT
TOO!
Learn more about business in general
and about the specific businesses your
NGO could undertake
Read business journals, visit trade shows,
surf the internet, collect brochures and
advertisements from potential competitors,
site out locations, take management courses
ETC.
Develop your contacts, especially in the
business and academic world
• Let them know of your plans to eventually
get into business and encourage them to think
of ways they might support you.
• Remember that you must find opportunities
because they rarely find you.
Analyze your own consumer behaviour
Talk up your plans with your donors.
• Why does your NGO patronize certain
suppliers and not others?
• Learn to think about yourself and your
NGO as members of market segments.
•Lobby them to establish programs to promote
commercial ventures for NGOs through grant
funds for management training, hiring
business consultants, and providing
investment capital for NGOs to start their own
businesses.
PARTING NOTE: A CRITICAL ELEMENT
“ A company’s trustworthiness, embodied in brand and reputation, is increasingly all
that customers, employees and investors have to rely on. Alan Greenspan once said
that “a company's value today may amount to its capitalised reputation”….All around
us, we hear the question, Who can you trust? The more important question is, Who
trusts you?”
THANK YOU