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The Role of Business in International Development in Africa Report on a roundtable dialogue held on 17 th February 2015 at the Brighthelm Centre, Brighton A production of Growth International

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The Role of Business in International Development in Africa

Report on a roundtable dialogue held on 17th February 2015 at the Brighthelm Centre, Brighton

A production of Growth International

Publication

2

This eBook is a record of a Roundtable Dialogue on The Role of Business in International Development in Africaheld on the 17th February 2015

The Roundtable Dialogue was produced and hosted by Peter Desmond of Growth International (www.growthinternational.com)

The Roundtable Dialogue was designed and facilitated by Nick Price from Of Things Immaterial (www.ofthingsimmaterial.com)

Table of Contents

Introduction

Dialogue Process

Workgroup Findings

Academia and Research

Circular Economy

Consumers

Government

Knowledge and Technology

NGOs

Conclusion

Appendix

3

INTRODUCTION

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OverviewThis Roundtable Dialogue was convened by Growth International. It explored the role of business, in International Development, over the next ten years. It had a particular focus on Sub-Saharan Africa.

Many companies already undertake projects in collaboration with government, NGOs, business and academia to assist in the relief of poverty across the world. Are there, however, new and more effective ways of working together so there will be less poverty in Africa?

55 people attended the dialogue from a variety of organisations, experiences, and backgrounds. All came with the desire to contribute their energy and share ideas. Their purpose was to identify new ways that business can help solve social problems. Solving these problems by business working better together with other stakeholders.

This brief report summarises the thoughts that emerged from a two-hourdialogue.

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International Development

Academia & Research,

Consumers, Circular Economy

Government, Knowledge &

Technology, NGOs

Business Relationships

Making a Difference

6

What would a preferred future look like for collaboration, between

business and its stakeholders, that helps people in developing countries,

in 10 years time?

The Key Question

Areas of Focus and Headlines6 stakeholders / themes / sectors were chosen for groups of around 8 people. Each group considered how relationships with business could be improved to mutual benefit and to assist in the relief of poverty. These are the groups and the key headlines from their dialogue.

1. Academia/Research and Business: A global research hub

2. Knowledge and Technology and Business: A global on-line marketplace

3. Consumers and Business: Sanitation for all by 2025

4. NGOs and Business: Demise of the NGO through convergence between business and NGO sectors

5. Circular Economy and Business: Circular economy achieved in terms of waste and recycling by 2025

6. Government and Business: Creating a business friendly environment

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DIALOGUE PROCESS

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Dialogue Process

10

Vision ActionsTimeline & Assumptions

Develop Vision or Preferred

Future

Timeline from Now to

ThenAssumptions

Actions

Today!

WORKGROUP FINDINGS

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ACADEMIA & RESEARCHWORKGROUP

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International Development

Academia & Research

Business Relationships

Making a Difference

13

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QUESTION

“What would a preferred future look like for collaboration between business and academia & research sector that helps people in developing countries, in

10 years time?”

HEADLINES

Business thinks academia is too theoretical, weak on the practical, can be arrogant/inflexible about their ideas. It also doesn’t communicate in a concise, business friendly way

Academia thinks business is weak at identifying and structuring the problems and / or challenges. It can also be too parochial and short-sighted

“Ask an academic what the weather is like and they will give you a thesis on meteorology. Ask a business person and they will say ‘you had better take an umbrella’”

Given the speed of change and growing complexity there is a need to get out of ‘business as usual’ thinking and a focus on the immediate and short-term. Academia can help business do this.

VISION

“First global research hub receives UN awards”... “Building the new infrastructure a yard at a time”...“Top global companies and

universities set out manifesto to reduce poverty in Africa”

Academia & Research – Preferred Future

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There is a danger in oversimplifying research and the theoretical divide that may follow from closer links between development academia &

research and the private sector.

How can we incentivise collaboration and what new forms of relationship may

emerge from this?

Academia & Research can be a catalyst for

change by bridging the gap between how the world is and how it is

changing

Interpretation of academic works is

required for business

Academia can provide a structure

for business in Development

Move from dissemination to

update and free up both sides from rigidity

Academia & Research – Discussion

Dialogue Notes

16

Vision ActionsTimeline & Assumptions

Develop Vision or Preferred

Future

AssumptionsActions

Today!

CIRCULAR ECONOMYWORKGROUP

17

International Development

Circular Economy

Business Relationships

Making a Difference

18

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QUESTION

“What would a preferred future look like for collaboration between business and the circular economy sector that helps people in developing

countries, in 10 years time?”

HEADLINES

Manufacturing in Africa not done elsewhere

Don’t transplant ‘current thinking’ into local manufacturing – start from a different place/different models

Shift needed in culture/ethics by business moving beyond shareholder return and by NGOs in terms of collaboration

VISION

“4g over 85% of Africa”…”Business investments in open education pay off”

Circular Economy – Preferred Future

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Glocalisation – local communities in Africa have their own interpretation of the circular economy. Just transferring the western

way of tackling green issues will not work for local communities: their local culture needs to be taken in to consideration.

Rethinking value chains: local communities need to be empowered to achieve circular economy by

analysing each component through the value chain.

African governments have an important role to play

in supporting the development of local enterprises through

finance, policy & subsidy

Social enterprises with a focus on business

principles such as product life optimisation and triple

bottom line alongside profit maximisation

Western products don’t consider the local

knowledge and needs of Africa leading to problems of waste

Africa has the potential to lead the circular economy by 2025 through bottom-

up scaling of local approaches

Circular Economy – Discussion

Dialogue Notes

21

Vision ActionsTimeline & Assumptions

Develop Vision or Preferred

Future

22

CONSUMERSWORKGROUP

International Development

ConsumersBusiness

Relationships

Making a Difference

23

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QUESTION

“What would a preferred future look like for collaboration between business and consumers that helps people in developing countries, in 10

years time?”

HEADLINES

Need a broader definition of consumer

Changes already underway that are shifting the power away from companies to consumers creating a more equal relationship

Consumers are becoming more vocal in what they want of products and a future is envisioned where the consumer is involved at every stage of the product development from design to manufacture

VISION

“ A trusting relationship – business and consumers”... “Consumers take the lead”...”People power”...”First new product totally designed by customers”

Consumers – Preferred Future

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Consumers should take the lead in the form of ‘people power’ and establish a trusting and sustainable relationship with business

If 4 billion people are living on less than $2 a day, can business redefine the base of the pyramid and utilise resources to improve the quality of life of consumers?

Business needs to understand the needs,

priorities and aspirations of consumers

Opportunities at the base of the pyramid should be

made evident to the private sector

Business can educate and engage local communities on their role as consumers to optimise the potential

of small businesses to influence development

Financial performance can be improved by business

working with government & NGOs

Consumers – Discussion

Dialogue Notes

26

Vision ActionsTimeline & Assumptions

Assumptions

27

GOVERNMENTWORKGROUP

International Development

GovernmentBusiness

Relationships

Making a Difference

28

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QUESTION

“What would a preferred future look like for collaboration between business and governments (in both the North and South) that helps people

in developing countries, in 10 years time?”

HEADLINES

The key role of governments is to establish the framework(s) for collaboration and the space where investment is encouraged

Global South and Global North need to work together more effectively

Connectivity in all ways is vital and the government can play a key role in ensuring access for all

VISION

“Companies swarm to Africa”… “Africa is the No 1 investment destination” …“People live past 90 years in Africa”...” Last house in Africa connected to the internet yesterday”

Government – Preferred Future

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Governments can create frameworks to enable international business and development investment. African governments can create a stable

investment space and encourage greater inter-country government collaboration.

Lobbying is necessary. Education is a solution. Structure of government is a

problem.

What creates instability in Africa? Corruption?

Short-termism?

Trade is a solution to promote business.

Facilitating international trade at a local level is more granular than a

global scale.

Governments need to create an

exciting and compelling vision

Perceptions need to be repositioned through

social media, PR, trade missions – starting now!

Government – Discussion

Dialogue Notes

31

Vision ActionsTimeline & Assumptions

Actions

Today!

KNOWLEDGE & TECHNOLOGYWORKGROUP

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International Development

Knowledge & Technology

Business Relationships

Making a Difference

33

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QUESTION

“What would a preferred future look like for collaboration between business and the knowledge and technology sector that helps people in

developing countries, in 10 years time?”

HEADLINES

Intellectual Property (IP) is a key issue – businesses may not invest because of fears that IP will be stolen.

IP is a western concept. Africans are more collaborative with an abundance mindset.

With the development of open source, on-line sharing protecting IP may no longer be relevant. It may not be a ‘bad’ thing to steal IP and the ‘fittest company’ survives.

If everything is available and free there is less incentive to ‘pirate’ or to make fake goods!

Technology is outpacing ability to use it effectively – education is needed and to help understand and manage both good and bad effects

Greater and cheaper connectivity is required to enable everyone to leverage benefits of on-line access to markets – there is a substantial digital divide

VISION

“4g over 85% of Africa”…”Business investments in open education pay off”

Knowledge & Technology – Preferred Future

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Create an “Afri-technowledgy Hub” to promote connections, collaboration and knowledge sharing designed for the business

community, professionals, and individual users to allow developing countries to connect with global networks of trust and collaboration.

Need to create a market database that can be shared across the world: connecting local

supplier to global buyer, job seeker to employer, and student to educator.

Intellectual Property Rights should be

deregulated so countries in the Global South can access technologies and

knowledge

Develop new distance learning models using the Internet to expand

knowledge

Challenges: where English is not widely used and where ICT infrastructure not

fully developed

Technology used to meet the learning styles and

life situations of individual students

Knowledge & Technology – Discussion

Dialogue Notes

36

Vision ActionsTimeline & Assumptions

NGOSWORKGROUP

37

International Development

NGOs Business

Relationships

Making a Difference

38

39

QUESTION

“What would a preferred future look like for collaboration between business and NGOs that helps people in developing countries, in 10 years

time?”

HEADLINES

Not an equal relationship – lack of resources to engage and an imbalance of power

Different perceptions, clash in ideologies…NGOs think businesses are mercenary…business think NGOs are amateurs

Where partnerships are in place they are difficult to scale up

Investments made in particular projects but no financial support to the NGO itself

Growing trend of collaboration and convergence around common issues & concerns… but still difficult

VISION

“CEO of AMREF joins Goldman Sach’s board”...“Goodbye NGOs...last NGO closes its doors today as all trade is now fair trade”…”Top 25 4th sector firms announced”….”NGO and private sector consortium established to wipe out Lassa Fever”

NGOs – Preferred Future

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There is a huge gap in cultural perception and ideologies between business and NGOs. They use different languages and often business see NGOs as incompetent and amateurish. Some NGOs still perceive

business as ‘evil’ organisations.

Opportunities exist for real collaboration between business and

NGOs to foster synergies and convergence in thinking & practice.

Business tends to look at short-term profits rather than capacity

building projects

There is an unequal power balance between

business and NGOs and decisions of NGOs tend to be donor driven

Share stories of successful

collaboration

NGOs should adjust their culture to

collaborate more with business

NGOs – Discussion

Dialogue Notes

41

Vision ActionsTimeline & Assumptions

Timeline from Now to

ThenAssumptions

Actions

Today!

42

CROSS WORKGROUPFINDINGS

International Development

Academia & Research,

Consumers, Circular Economy

Government, Knowledge &

Technology, NGOs

Business Relationships

Making a Difference

43

• Don't use western methods and ways of thinking to solve problems ...build on the natural tendency in Africa to think in terms of abundance not scarcity..scarcity is underpinned by fear.

• Use different mental models, values, frameworks and financial assessment of value.

• Thinking about relationships in terms of power and winning is a zero sum game – the future is about collaboration and win-win.

• Creating more equal relationships in terms of power and influence.

• Complexity and speed of change means get on and try things out – don't wait for a perfect solution or an agreed business case.

• Connectivity at all levels, in all ways and across all sectors.

• ‘Glocalaity’ - expanding from the local to connect at a global level.

• Build on existing good practice, initiatives already underway and learning from them to build a critical mass.

• Find champions at local, regional and global levels and across the sectors.

• Create a future built on interdependence not dependence or independence.

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Cross Workgroup Findings

CONCLUSION

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FeedbackOn the day itself we had the following comments from delegates:

“I found the day inspiring and enjoyable; keen to participate in future events.”

“The hub ideas were excellent.”

“It was regrettable that wasn’t an opportunity to challenge the views of other groups.”

“Nice to see some development talk in Brighton!”

“The dialogue helped me realise that business could potentially be serious about poverty alleviation in Africa.”

“A large section of the NGO community remains naïve about converting the private sector to their world view.”

“Anything is possible with the right people and ideas.”

“The process of working in small groups helped generate new possibilities.”

“Good luck and thank you!”

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Acknowledgements and ThanksI would like to thank the following people who made this event such a success:

To Nick Price for designing and delivering a highly effective dialogue process which produced results well beyond my expectations.

To my co-director at Growth International, Chris Lee, who wholeheartedly supported this rather unusual endeavour.

To my classmates in the MA Managing Globalisation, Business and Development at the Institute of Development Studies at Sussex University – you facilitated the dialogue brilliantly.

To Pat Cleverly who took some excellent notes of the feedback sessions & flipcharts and managed to type them up on the day.

And finally to everyone who attended – you have helped enormously to take our thinking to the next stage.

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AfterthoughtI had many thoughts after the workshop based on what I had heard from each of the groups, the feedback sheets, emails received afterwards and conversations over lunch. They all started me on the road to thinking about what I feel called to do over the next 10 years on the role of business in international development

One conversation in particular has taken me along a rather surprising track. I have known Steve Mullins for almost 20 years now and we have worked on many different projects together. When everyone had left the Three Jolly Butchers (where some of us had gone for a drink after the roundtable dialogue) Steve and I sat down with another pint of local ale and talked for over an hour.

Over the years, Steve has furnished me with many thought provoking ideas, so I thought he would be the ideal person to ask this question directly, “Steve, if I am going to spend the next 10 years working on the role of business in development, what do you think I should focus on?”.

He answered with one word, “Dignity”.

As I reflected on this in the weeks following the 17th February, I realised that Steve had hit on something worth exploring further.

…………To be continued!

APPENDIX

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Definitions• Academia and Research – an organisation which teaches or researches a subject

• Africa – Sub-Saharan countries (i.e. the continent of Africa excluding countries on the Mediterranean coast)

• Business – a formal or informal arrangement whereby goods and services are traded for cash or other consideration

• Circular Economy – The circular economy refers to an industrial economy that is restorative by intention; aims to rely on renewable energy; minimises, tracks, and hopefully eliminates the use of toxic chemicals; and eradicates waste through careful design (from the Ellen MacArthur Foundation).

• Consumer – someone who buys a product or service from a trading organisation

• Development – the improvement in wellbeing (in the broadest sense) of a person, organisation, country, etc.

• Government – the people and rules through and by which countries, regions, cities, villages etc. are managed

• Knowledge and Technology - the many varied forms of content and process through which development takes place.

• NGO – Non-Governmental Organisation – an organisation which has a social purpose rather than to generate profit for its shareholders

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…there are broadly two economic worlds that cut across the globe, these are the Global North and the

Global South….

…the Global North represent the economically developed societies……While Global South countries

are agrarian based, dependent economically and politically on the Global North…

A COMPARATIVE ANALYSIS OF GLOBAL NORTH AND GLOBAL SOUTH ECONOMIES

Journal of Sustainable Development in Africa (Volume 12, No.3, 2010)

Global North and Global South

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DelegatesFirst Name Last Name Organisation

Ahmed Mokgopo Institute of Development Studies

Alix Odgers Amref Health Africa

Ana Ferreira da Fonseca Institute of Development Studies

Anna Gerrard Sightsavers

Anne-Marie Harrison Development Squared

Anthea Rossouw Dreamcatcher

Boat Prechathanvanich Institute of Development Studies

Caitlin Blumgart Tomorrow's Company

Catriona Dejean Tearfund

Charley Clarke ITAD

Chihiro Ishida Institute of Development Studies

Chris Lee Growth International

Derek Osborn Whatnext4u

Emma Haughton Generate Partnership

Felicity Morgan MANGO register

Frances Soiza St Mark's School, Hounslow

Fungai Murau Institute of Development Studies

Georgie Kane Maternity Worldwide

Hannah James Institute of Development Studies

Jeremy Woolwich Independent Perspective

Jing Gu Institute of Development Studies

Jocelyn Matyas Institute of Development Studies

Joe Van Wyk ReneSolar

John Humphrey Institute of Development Studies

Juri Hiroya Institute of Development Studies

Katherine Van Wyk Every1Mobile

First Name Last Name Organisation

Kevin Hernandez Institute of Development Studies

Kota Sugimoto Institute of Development Studies

Marco Fiorentini Institute of Development Studies

Marie Hounslow Renewable World

Mark Roberts Jeevika Trust

Martin McCann RedR

Matt Stubberfield Renewable World

Michael Jenkins MetaLab

Mike Streeter All Saints Church, Lindfield

Nick Price Of Things Immaterial

Nobu Yoshida Institute of Development Studies

Pat Cleverly Tomorrow's Company

Paul Herbert Goodman Derrick

Peter Desmond Growth International

Peter Nawa Institute of Development Studies

Philippa Maidment

Pragya Gupta Institute of Development Studies

Rob King Sightsavers

Robert Silbermann Newlands Partnership

Roger Martin Figure Ground

Sandra Akite Institute of Development Studies

Sarah Hopwood Sarah Hopwood FPSA

Stephen Argent UK Gov DWP

Steve Mullins Ascot Associates

Steven Inman Resource Alliance

Tadahiro Maeda Institute of Development Studies

Thuy Vy Institute of Development Studies

William Tomlinson

Yolanda Villafuerte Abrego Tomorrow's Company

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MAGLOB007 @ IDS

The Role of Business in International Development in Africa

Report on a roundtable dialogue held on 17th February 2015 at the Brighthelm Centre, Brighton

A production of Growth International