Transcript Document

Expanding Women’s Role
in Africa’s Modern Off-Grid Lighting Market
ENERGIA Policy and Practice Meet
Amsterdam, December 13, 2011
The Private Sector: Opportunities through Women
Boards: When include women  indicator for better
managed companies.
Opportunity: Only 10% of all directorships today
are filled with women (globally).
Entrepreneurs: 30-40% of SMEs in our markets are owned
by women, but barriers to doing business are higher.
Opportunity: Removing barriers to doing business for
women can result in more opportunities and growth.
Employees: About 40% of the world’s jobs are filled with
women; critical in export sectors (textiles, agribiz, ICT).
Opportunity: Productivity gains could be had from better
adjusting workplace conditions to women’s contexts.
IFC’s clients & their client base: As SME clients or as
households: Women take financial decisions differently.
Opportunity: With a little bit of market segmentation,
Banks and other Service providers can gain market share.
Stakeholders: Women strong in local community groups.
Opportunity: Ensure outreach for good risk management.
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IFC: We start from a good base
Leaders
Boards: 19% of 211 IFC nominee directors are women. Target: 30% by FY15. 8
advisory projects promote awareness and education about/for women directors.
Entrepreneurs
Entrepreneurs: Regulatory reform programs in 12+ countries/5 regions address
doing business for women entrepreneurs. 40% of 14K women trained through
Business Edge in FY11 are women. SME Toolkit has customized resources.
Employees
Employees:– about 30% of IFC clients’ employees are female. In the
textiles sector (85% female employment), the ILO/IFC Better Work partnership
has improved productivity and workplace conditions for ~560K women.
IFC’s Clients
& their client
base
SME Banking Clients: Between 2006 and 2010 $113 Million* targeting women
entrepreneurs in Africa coupled with advisory programs for Banks and women
(2,000 women-business owners trained; >6,100 new deposit accounts opened)
Households connected through Infrastructure: PPP studies potential impact.
Stakeholders
Stakeholders: IFC’s Sustainability Framework - takes into account women as
stakeholders (communities/employees). IC’s public dialogue tool engages women.
* includes recently signed & committed deals in Turkey and Romania
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IFC’s Tools today: Kaleidoscope of Interventions
4
The example of Promoting Women’s Access to
Finance: “The Secret’s in the Mix”
Advisory
Services
Investment
IFC Expertise
IFC Capital
•
•
•
•
•
•
•
Risk Sharing Facilities
Credit lines
Credit insurance
Supply Finance
Distributor Finance
Trade Finance
Equity
To
•
•
•
Corporates/Banks
Market segmentation
Link women entrepreneurs
Staff training
To
•
•
•
Women Entrepreneurs:
Business Planning
Management + Finance
Networking and Mentoring
Opportunities
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Access to
New
Business
Results
For Corporates:
• Expand suppliers/ distributors
base to women entrepreneurs
For Banks:
• Expand market to profitable
women entrepreneur segment
For Women Entrepreneurs:
• Access to Finance
• Stronger businesses
There is an emerging awareness of the opportunity…
Some leading FIs successfully capitalized on opportunities in this segment.
Visit Global Banking Alliance for Women at www.gbaforwomen.org
RBC’s focus on women entrepreneurs improved client
satisfaction 30 percent and increased market share (23 percent
vs. 18 percent SME overall).
Wells Fargo Bank launched a program in 1995 providing loans,
lines of credit, financial guidance for women. The first ten
years saw more than 700,000 loans (exceeding $25 billion) to
women-owned small businesses
Westpac’s revenue increased by approximately $462 million in 3
years following introduction of their women’s program
Within 8 months of implementing a woman’s program, Access
Bank opened 1,500 new accounts and increased its loan
portfolio by 8%
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Lighting Africa: Women as Entrepreneurs,
Consumers and in the Value Chain
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Women Likely to Gain More
from Off-Grid Lighting
Firms Expected to Give Gifts to Get and Electrical
50
40
30
20
10
0
Male
Female
Ethiopia
2006
12
Ghana
2007
Kenya
2007
Tanzania Zambia
2006
2007
If there were outages, Value Lost Due to Power Outages
10
8
6
Male
4
Female
2
0
Ethiopia
2006
Ghana
2007
Kenya
2007
Tanzania
2006
Zambia
2007
160
140
120
100
80
60
40
20
0
Delays in Obtaining an Electrical Connection
Male
Female
Ethiopia Ghana
2006
2007
20
18
16
14
12
10
8
6
4
2
0
Electricity from Generator (%) *
Male
Female
Ethiopia Ghana
2006
2007
Source: World Bank Group Enterprise Survey Database
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Kenya Tanzania Zambia
2007
2006
2007
Kenya Tanzania Zambia
2007
2006
2007
Example of Off Grid Lighting Devices
9
10
11
12
13
14
Having a bank account may not affect decision preference
to buy a certain product.
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Access to Financial Services is low for Women and Men
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Access to Finance is Key
Priority Focus on women justified, given they are more
likely to stay off-grid? Higher development impact?
Data Source: “Expanding Opportunities for Women Entrepreneurs in Africa.” World Bank, Fall 2011.
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The Way Forward for Financial Institutions
1. Consider reaching the women’s market through targeted
products and services, a specific outreach strategy, and
possibly financial and management skills courses.
2. Partner with women’s groups that could assist with market
outreach while at the same time leverage financial risk (for
example, group lending, “micro-consignment”, etc.)
3. At the SME level, promote women and men as
distributors/resellers through distributor finance schemes.
4. Explore mobile banking and the potential added value of
linking mobile technology with off-gird lighting products.
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THANK YOU!
Carmen Niethammer
IFC Women in Business
[email protected]
Peter Alstone and Brendon Mendonca
Humboldt University Research Lab
[email protected]
Adriana Eftimie
Oil, Gas and Mining Division/ESMAP, World Bank Group
[email protected]
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Annex
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Annex 1: A Gender Lens in Implementation, M&E
Indicator/Data Required
Gender Focus (gender disaggregation)
Output Indicators
 Research

Marketing

Agency operations and accessibility

Skills Training

Awareness Raising/Outreach
Quantitative indicators: number and/or
percentage of women and men being surveyed
Qualitative indicators: inclusion of portraits of
women as users of renewable technology
included in marketing materials
Qualitative indicators: opening hours of
distributors’ shops; accessibility and safe
locations of distribution centers
Quantitative indicators: number and/or
percentage of women managers and staff in
the distribution center
Qualitative indicators: gender inclusive focus,
gender issues articulated and addressed
Quantitative indicators: Number and/or
percentage of women and man
participating/benefiting
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Annex 1: A Gender Lens in Implementation, M&E
Indicator/Data Required
Gender Focus (gender disaggregation)
Outcome Indicators
 Uptake of renewable lighting sources
Quantitative:
Incremental number of renewable lighting
devices per household/business by gender
Incremental number of hours of lighting per
months in household/business by gender

Average costs of lighting device by gender
Quantitative:
Benefits
Incremental hours of business operations
associated with adopted renewable lighting by
gender
Incremental household income associated
with adopted renewable lighting by gender.
Time saved …
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Preliminary research indicates clear business case
High-growth
segment
Women-owned firms
represent up to 38% of all
registered small businesses
worldwide
Untapped
market
Excellent
performance
In the Philippines, women
own 30-40% of registered
businesses, but access only
5 % of bank credit
Economic performance with
most gender-diverse
management teams greatly
outperforms industry
averages
Chart
Chart
Women-owned businesses
represent 60% of the total
micro, small and medium
enterprises (MSME) in
Indonesia
In China, women own onethird of small businesses, of
which 17% have more than
1,000 employees
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Formal SMEs in emerging markets face significant financing
constraints – the challenge is greater for women-owned SMEs
Formal SMEs1 use of financial institution loans and financing constraints
Percent of total formal enterprises in emerging markets (i.e., excluding high-income OECD)
27-33
Value gap in credit
financing for formal SMEs
in emerging markets is
~$1-1.2Tn
100
35-43
20-24
8-10
Well-served:
Have a loan
and/or overdraft
and no financial
constraint
Under-served:
Have a Loan
and/or overdraft
but no financial
constraints
Unserved:
No need
Do not have a loan
or overdraft but
need a loan
Total formal SMEs in
emerging markets
1 The number of SMEs unserved or under-served is calculated based on SMEs’ access to bank loans and overdraft only (i.e., not including SMEs’ access
to trade financing, leasing, factoring and other forms of credit). However, the value of the credit gap in dollars takes into consideration credit
available through loans, overdrafts, leasing, financing, trade finance, and other forms of formal credit.
SOURCE: McKinsey-IFC SME database; team analysis
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Majority of women-owned formal SMEs are un-served or
underserved in most parts of the world
Unserved
Under served
Well served
Do not need credit
Credit needs and access for formal SMEs with at least one female owner by region1, Percent
Very small
Small
53-65
East Asia
8-10
23-29
Medium
27-33
23-28 12-15 28-34
21-25
31-38
17-21 21-26
5-6
Latin America
14-17
43-53
18-22
11-13
55-68
14-17
15-18
55-67
Sub-Saharan Africa
17-21
35-43
18-22 12-14
25-31 11-14
South Asia
13-16 24-30
42-52
49-59
18-22
36-44
17-21
18-22
11-13
24-30
33-40
24-30
31-37 13-15 23-28
21-26 14-17
43-53
29-35
27-33 7-9 27-33
18-22
15-18
11-13
27-34
12-14
10-12 26-31
14-17
7-8
11-14
MENA
62-76
10-12
6-7
Central Asia and
Eastern Europe
4
43-53
19-23 17-20
19-23
34-41
10-12
19-24
46-56
16-20
9-11
•
•
Sub-Saharan Africa and East Asia report the highest rates of unserved women enterprises
Underserved rates are highest among medium enterprises, since most already have access to finance
1 Definitions (see appendix): Unserved: Do not have a loan AND applied OR needed loan; Underserved: Have a loan but access to finance is a constraint
(but not necessarily a “major” or “severe” constraint, which is a separate question); Well-served: Have a loan AND access to finance is not a
constraint; No need: Do not have a loan AND did not apply AND did not need
SOURCE: IFC SME database, Enterprise Survey, team analysis
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In every region of the world, IFC has client firms
with dynamic women leaders.
Sara Akbar, CEO of Kuwait Energy
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Good Corporate Governance:
What IFC does to promote Board Diversity
• Walking the Talk:
• Reaching out to women to
diversify IFC’s pool of
potential nominee
directors (potential
nominees encouraged to
submit CV through
database)
• Measuring % women on
boards & sr. management
among IFC investment
clients (pilot)
• Women should represent
at least 30% of IFC
nominee directors
• Building Partnerships :
• Women Corporate
Directors (chapters
around the world)
• Corporate Women
Directors International
(2010 Global Roundtables
resulting in 2010 CWDI
Publication “Accelerating
Board Diversity”)
Advisory
Services
Investments
Partnerships
and
Collaboration
Knowledge
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• Building capacity:
• Discussing the business
case for board
diversity in CG training
• Targeting women
participation in
training activities
• Workshops for
potential women
directors
•Identifying and sharing best
practice:
•Survey/Discussion Paper
“Gender Diversity on Boards”
(Pakistan)
•Women on Boards: A
conversation with (Male)
Directors
• Women and Business:
Telling our Story
•Video interviews