External Evaluation of Migrant Entrepreneurship Projects Volume 2 - Annexes Final Report
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External evaluation of migrant entrepreneurship projects Volume 2 - Annexes Final Report Client: Department for Stability and Humanitarian Aid (DSH) Department for Sustainable Economic Development (DDE) Rotterdam, 22 May, 2019 External evaluation of migrant entrepreneurship projects Volume 2 - Annexes Final Report Client: Department for Stability and Humanitarian Aid (DSH) Department for Sustainable Economic Development (DDE) Anja Willemsen Marije Balt Willem Cornelissen Niek de Jong Wim Naudé Rotterdam, 22 May, 2019 Table of contents Annex III Project notes 7 1. Project note: VSO-‘Maximizing the value of the Kenyan diaspora’ 9 2. Project note Spark 'Circular Migration and Brain Gain - Supporting Migrant Entrepreneurs (MEP)' 17 3. Project note TNU ‘e-Learning for Entrepreneurship in West Africa’ 33 4. Project note Izere “Capacity development and entrepreneurship in Burundi by diaspora in the Netherlands” 43 5. Project note Seva Network Foundation “Seva Migrant and development project 2011-2013 and 2014-2015” 49 Annex IV Literature analysis on “The added value of the diaspora in developing the private sector in fragile contexts/developing countries” 55 Annex V Donor reviews 79 Annex VI Terms of Reference 124 External evaluation of migrant entrepreneurship projects 5 Annex III Project notes 1. VSO Kenia: “Maximizing the value of the Kenyan diaspora”; 2. Spark: “Circular Migration and Brain Gain”; 3. TNU e-learning project in Sierra Leone: “E-learning for Entrepreneurship in West Africa” s; 4. Izere Foundation: “Capacity development and entrepreneurship in Burundi by diaspora in the Netherlands”; 5. Seva Network Foundation: Seva Migration & Development 2011-2013 and 2014-2015. External evaluation of migrant entrepreneurship projects 7 1. Project note: VSO-‘Maximizing the value of the Kenyan diaspora’ Introduction Evaluation activities carried out to assess the VSO project ‘Maximising the value of the Kenyan diaspora‘ are include: desk review of project documentation, other relevant documentation and available statistical information; a mission to Kenya in November 2018, to conduct interviews with relevant stakeholders (representatives of VSO Kenya and host organisations, a government representative, as well experts on entrepreneurship and SME development); and (telephone/Skype) interviews in the Netherlands, including five interviews with Kenyan diaspora who volunteered at host organisations in Kenya. Four of them continue to reside in the Netherlands; , and one returned to Kenya after the project. Another volunteer was not willing to be interview. Context In 2014, the World Bank re-classified Kenya from a low-income to a lower-middle income country.1 Average annual real economic growth was approximately 5.5% in the period 2013-2017.2 Growth was accompanied by a stable macroeconomic environment and was generally highest in services.3,4 The table below contains some key indices for Kenya. Country Total GDP per Ave. GDP Vulnerable Ranking on Ease population capita, 2017 growth 2013- employment of Doing Business 2017 (real US$) 2017 (per (%) 2017 Index, 2017 year) Kenya 40,699,862 1,169 5.5 54.4 80 Income inequality measured by the Gini coefficient showed a slightly declining trend in the period 2010-2015 and was approximately 0.45 in 2015.5 The incidence of poverty was 52% in 2000, but then declined to 45% in 2005 and remained virtually unchanged in subsequent years.6 Hence, the economic growth and the slight decrease in income inequality was not translated into a further reduction of poverty. Apparently, the quality of the created jobs was not sufficient. Poverty is related to the high degree of informality in the country. Kenya continues to have a large informal sector. Employment in informal activities comprised approximately 83% of total employment in 2010 and 2015. A shift in focus from quantity to quality of jobs is required in Kenya.7 The degree of informality was highest in agriculture. Nonetheless, still some 61% of non-agricultural urban work was in the informal economy. The informal economy is absorbing about two-thirds of annual new employment opportunities in Kenya.8 Of the 7.4 million micro, small and medium-sized enterprises (MSMEs) in 2016, 79% were unlicensed and 72% were microenterprises.9 Agriculture and manufacturing are largely dominated 1 https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups. 2 Republic of Kenya (2018). Third Medium Term Plan, 2018 – 2022 http://vision2030.go.ke/inc/uploads/2019/01/THIRD- MEDIUM-TERM-PLAN-2018-2022.pdf). 3 KIPPRA (2017). Kenya Economic Report 2017. Sustaining Kenya’s Economic Development by Deepening and Expanding Economic Integration in the Region. 4 Ibid. 5 https://fsolt.org/swiid/. 6 KIPPRA (2017). Kenya Economic Report 2017. Sustaining Kenya’s Economic Development by Deepening and Expanding Economic Integration in the Region. 7 Paul Kamau, Bethuel Kinyanyiu Kinuthia, Akinyinka Akinyoade and Catherine Mukoko (2018).Assessment of Productive Employment Policies in Kenya. ASC Working Paper 140.(https://openaccess.leidenuniv.nl/bitstream/handle/1887/57692/Working_paper_140.pdf?sequence=1). 8 Danish Trade Council for International Development and Cooperation. Labour Market Profiles (http://www.ulandssekretariatet.dk/sites/default/files/uploads/public/PDF/LMP/lmp). 9 Kenya National Bureau of Statistics. Micro, Small and Medium Establishment (MSME) Survey. Basic Report. September 2016. External evaluation of migrant entrepreneurship projects 9 by micro and small enterprises (MSEs). 10,11 Likewise, “Kenya’s retail and wholesale trade is dominated by Micro, Small and Medium Enterprises” that are “heavily reliant on self-supporting and informal institutional arrangements.”12 MSMEs face various challenges, such as inadequate business premises and ‘lack of basic facilities to handle perishable agricultural products for wholesale’.13 Kenyan has tried to involve its diaspora in the development at home. Remittances from the diaspora are important. In 2016, total remittances were US 1.724 million.14 However, transfer of diaspora’s knowledge and skills is also important. The number of Kenyan diaspora in the Netherlands has almost tripled since 2000 and amounted to approximately 4,500 in 2018. Second-generation migrants – and especially the ones with one parent from abroad – form a substantial and increasing proportion of the Kenyan diaspora.15 Some of Kenya’s diaspora have returned home with new ideas, knowledge and experience. Factors that may constrain success of diaspora in Kenya mentioned by an expert interviewed in Kenya are lack of: appropriate entrepreneurial and investments opportunities for diaspora remittances to Kenya, such as a financing mechanism that can support start-ups; transfer of diaspora ideas and technology alongside capital transfers; inclusion of diaspora in international trade and linkages as foreign and local agents; orientation of diaspora to entrepreneurship; and a Kenyan entrepreneurship policy. Tapping into the diaspora talents is one of the proposed key interventions of the Government of Kenya’s Diaspora Policy formulated in 2014 in line with the aspirations of Kenya Vision 2030 and in collaboration with, among other institutions, the Kenya Diaspora Association (KDA). Project Three organisations – VSO, the Kenyan Diaspora Community in the Netherlands (KDCN) and the Africa Studies Centre (ASC) – formed a partnership for the project “Maximising the value of the Kenyan diaspora”. It was the first project coordinated by VSO that involved diaspora and aimed to contribute particularly to the transfer of knowledge and skills by Kenyan diaspora volunteers and enhancement of the role of diaspora organisations. Volunteers were placed at various types of host organisations, including KDA, two youth polytechnics, Women Challenged to Challenge, YMCA and local organisations in poor and remote areas, such as the Enyuata Olosho Women Group, Noomayianat Community Development Organization (NCDO) and the Il Ngwesi Community Lodge. Apart from the strengthening of host organisations in Kenya, the project had the following defined objectives16: (1) enhance the potential of the Kenyan diaspora in the Netherlands; (2) improve the Dutch perception on diaspora; (3) improve understanding between Dutch NGOs and diaspora in the Netherlands and better use of each other’s knowledge, networks and skills; (4) Kenyan organisations and businesses will form trade relationships with Dutch entrepreneurs; (5) cohesion of KDCN members will be enhanced. As a result, more information becomes available regarding the availability of Kenyan diaspora to do development work in their country of heritage; and (6) the academic community will be better able to monitor trends and developments within the Kenyan 10 http://www.fao.org/kenya/fao-in-kenya/kenya-at-a-glance/en/. 11 KIPPRA (2017) op. cit. 12 Ibid. 13 KIPPRA (2017). op. cit. 14 Ibid., page 11. 15 Based on Statistics Netherlands data (https://opendata.cbs.nl/statline/#/CBS/nl/dataset/37325/table?ts=1553268623659). 16 These objectives are called expected outcomes in the project proposal’s log frame. 10 External evaluation of migrant entrepreneurship projects Diaspora in the Netherlands, thereby helping to harness the potential of migrants’ contributions to Kenya’s development, and improve on their social cohesion in Dutch society. In some occasions, more than one volunteer was placed, and some volunteers worked at two host organisations. Some organisations had previously had a volunteer, via VSO.