Training and capacity building in concessions

What the private

sector needs to know

Andrew Kingman, Eco-MICAIA ltd

DO THE BUSINESS!

What is the role of the private

sector?

Role of the private sector

• NGOs don’t tend to run businesses

very well…..

• So it’s assumed that the private

sector will do a better job

• The main role of the PS in tourism

concessions is to make the tourism

business work AND in so doing, help

achieve conservation and social

goals

WHEN TO GO AHEAD AND WHEN TO PULL

OUT BEFORE IT’S TOO LATE!

What does the private sector

need to know?

Can we do the business?

• It might seem obvious but the PS operator must know its

business and have a relevant track record

• Is there a business at all?

• No amount of donor-financed incentives should hide the facts: is the

market big enough? If not, can it be grown? If not….

• Do we have a chance to make any money?

• Are the terms of the concession reasonable and affordable?

• Do we have time to recover the investment?

• Can we manage the multiple expectations from other

stakeholders?

MICAIA – Working for local prosperity in a sustainable world

Do we have the information we

need?

• Critical information:

• Legal framework

• Financial requirements – fees, taxes

• Detailed terms of the concession – including any community

relations

• Local context: climate, natural features, culture, social

arrangements, history, leadership etc

• Investment scenarios – external factors that will impact on the

business

• History of the concession – if it’s not new, what happened in the

past? What worked, what failed? Why?

MICAIA – Working for local prosperity in a sustainable world

WHO DO WE NEED TO WORK WITH – WHAT

DO THEY EXPECT FROM US?

What does the private sector

need to know?

Do we understand each other?

• Multiple relationships and expectations to manage• Government (local and national)

• Community

• NGOs (local and international)

• Competing agendas • Community benefit and private profit

• Conservation and exploitation

• Local social development and building a profitable business

• Different languages and cultures• The long & winding road of capacity building

MICAIA – Working for local prosperity in a sustainable world

HOW CAN WE MEET ALL OF THESE

EXPECTATIONS?

What does the private sector

need to know?

Learning and Planning Together

• Some level of commitment to building

a relationship with communities is

essential• Familiarization, especially local leaders

• Understanding the community – listening

and learning (elders in particular)

• Discussing the potential and challenges of

tourism – enrol people in the vision

• You don’t need to do it alone – find a

partner (NGO)…but a good one!• Has the NGO got the capacity to deliver?

Does it understand the realities of business

– especially tourism?

• Can it mobilize resources?

MICAIA – Working for local prosperity in a sustainable world

Working Together

MICAIA – Working for local prosperity in a sustainable world

• Collaborating with a partner NGO• Participate in local meetings – don’t leave

it all to them

• Try and find common ground and respect

each other; be patient!

• Recognize when they’re right – even if it

hurts (the bottom line…..)

• Collaborating with the private sector• Remember that your money is not at risk!

• Expect responsibility and accountability –

but not miracles…

MICAIA is a partner/shareholder in and facilitator with

Mozambique Honey Company – helping secure 34%

equity for beekeepers and working very closely with

the lead private sector entrepreneur.

Can we work together?

MICAIA – Working for local prosperity in a sustainable world

• We may be strange

bedfellows but….