The KPMG IDAS Africa Story Impact Report 2015-2016 kpmg.com/das Acronyms aBi : Agricultural Business Initiative Trust AcT : Accountability in Tanzania AECF : The Africa Enterprise Challenge Fund AGRA : Alliance for a Green Revolution in Africa BOP : Bottom of the Pyramid BRACED : Building Resilience and Adaptation to Climate Extremes and Disaster CGAP : Consultative Group to Assist the Poor CICF : County Innovation Challenge Fund Danida : Danish International Development Agency FRP : The MasterCard Foundation Fund for Rural Prosperity FSDT Kenya: Financial Sector Deepening Trust, Kenya FSP : Financial Service Provider GEM : The World Bank Growth and Employment Project GRP : The Global Resilience Partnership HDIF : Human Development Innovation Fund IDAS : International Development Advisory Services IFC : International Finance Corporation IFAD : International Fund for Agricultural Development MEC : MicroEnergy Credits MOOC : Massive Open Online Course REACT : Renewable Energy and Adaptation to Climate Change Technologies (window of the AECF) SCIP Fund: Strategic Climate Institutions Programme Fund SDC : Swiss Agency for Development Cooperation Sida : Swedish International Development Agency SPV : Special Purpose Vehicle THAT : Tandabui Health Access Tanzania Contents 13I 15I AGRIBUSINESS RENEWABLE ENERGY Who We Are 05 AND CLIMATE CHANGE The Grantees 06 Impact at Scale 08 KPMG Values 09 KPMG Lifelong Learning 10 KPMG IDAS Sectors 12 Agribusiness Sector 13 Renewable Energy and 15 Climate Change Resilience Sector 18 18I 22I Innovation, Technology & Failure 20 RESILIENCE FINANCIAL INCLUSION KPMG-managed Tech Projects 21 Financial Inclusion Sector 22 Health Sector 24 Leverage 26 Special Purpose Vehicles 27 Fund Managemt Lessons 28 Governance Sector 30 What Next? 32 Programmes, Funds and Clients 33 24I 30I Where We Work 34 HEALTH GOVERNANCE FROM THE LEADERSHIP Introduction any years ago, when I was a IDAS Africa is trusted by governments, young university student, I had an foundations, social investors and the like Mepiphany: I was to dedicate my life to accelerate Africa’s transformation, and to work in the less developed regions of the we are driven by this goal. We hold and planet, in places where I had never been, but manage funds with integrity, competence where I felt my skills could make a difference and empathy. We try very hard to give our to balance opportunities for millions of clients and partners the confidence to invest people who didn’t have many. In other words, in some of the most complex environments I decided to focus my life on achieving on earth. We live in Africa, we love Africa, development impact. we are all sons and daughters of this land. Among the many learnings of my life over To maximise impact we need technology To maximise impact we need technology the last two decades, working in over 40 and innovation, to leapfrog development and innovation, to leapfrog development developing countries, is that impact is not stages as quickly as possible... stages as quickly as possible, since Africa linear, it can be elusive, it is not easy to We need more organisations partnering is catching up with other regions. We need quantify, and measuring it is costly. There and blending finance of different more organisations partnering and blending is plenty of failure too, painful mistakes characteristics together. We need more finance of different characteristics together. when a policy or development intervention special purpose vehicles. We need new We need more special purpose vehicles are untimely or not designed properly. (SPVs). We need new business models. We business models. We need to be bolder. Sustainability remains a major challenge. As need to be bolder. the saying goes: The road to hell is paved Julio Garrido-Mirapeix, The private sector has a huge role to play. with good intentions. Partner and Head of IDAS Africa Traditional international assistance is Bearing this in mind, at KPMG IDAS Africa declining, but there are many more sources we take impact very seriously. I believe of finance investing in Africa. In addition wholeheartedly that the almost 200 to philanthropic and social investors, more professionals with 18 different nationalities and more companies and individuals are who work in IDAS Africa are all driven by discovering that Doing Good is Good for the same purpose. We are here to empower Business. There are now many African change across this magnificent, vast and philanthropists and African companies diverse continent that faces so many internal leading the way. and external challenges, while at the same This report shares some of our stories with time holding so much promise. you. It combines hard numbers with what Impact is now more important than ever. really matters: a look at people, the human The world seems to be going through a beings to whom we try to give access to crisis of trust, in particular when it comes new options and the capacity to make to spending taxpayers’ money in countries choices; the companies and not-for-profit that are difficult to pin on a map or whose organisations that we finance of behalf of names might sound exotic. On the other others to innovate and deliver impact; and hand, the planet is one and solidarity is also about us, the professionals working an important principle. We must help mostly behind the lines trying to make it each other. Things must get better happen every day. for everyone, not just for a few. The As we like to say in IDAS Africa: The world is about multilateralism, about sky is not the limit. How to maximise working together, and hence we are the impact of development efforts is fully committed to contributing to the a critical conversation. Please engage Sustainable Development Goals. The with us. bottom line is that to maintain and increase trust, we need to improve the way we measure impact and be very honest about it. 4 I IMPACT REPORT 2015 – 2016 WHO WE ARE Who We Are KPMG’s International Development Advisory Services (IDAS) Africa manages philanthropic funds on behalf of development partners to achieve social impact at scale across Africa. Our vision is to transform lives and continents by : INSPIRING CONFIDENCE; AND Rigorous fund management gives our clients the confidence to invest in complex environments. EMPOWERING CHANGE The funds we manage support bold pioneers building innovative market systems that benefit the poor. IDAS culture is rooted in KPMG values: Our integrity and policy of open and honest communication builds trust and collaboration, while our flexibility and diversity creates a culture in which people share knowledge freely, bringing out the very best in each other. CREDIT: The MasterCard Foundation Fund for Rural Prosperity THE KPMG IDAS AFRICA STORY I 5 OFF GRID ELECTRIC CREDIT: Kate Holt / KPMG IDAS Peak Trading CREDIT: Peak Trading Inyenyeri CREDIT: AECF REACT The impact of funds managed by IDAS is made possible by the hard work, ingenuity and tenacity of the grantees. These companies and organisations are The Grantees building a better world in which technology, markets and services benefit everyone. Meta Meta CREDIT: Meta Meta Tandabui Health Access Tanzania CREDIT: Kate Holt / KPMG IDAS Northern Farming CREDIT: Kate Holt / KPMG IDAS Mobisol CREDIT: Kate Holt / KPMG IDAS Profeeds CREDIT: Profeeds Afrivet Training Services Meru Agro CREDIT: Afrivet Training Services CREDIT: AECF Mahila Housing SEWA Trust Solar Now COPYRIGHT: Mahila Housing SEWA Trust 2016 CREDIT: Solar Now Fenix International CREDIT: Fenix International Concern Worldwide CREDIT: BRACED IMPACT HIGHLIGHTS CREDIT: The Africa Enterprise Challenge Fund Impact at scale Impact highlights from IDAS-managed programmes £132 million $66 million 1.6 million Monetary benefits through governance Private sector capital leveraged as People supported and 25,000 people reforms from £28 million invested. matching funds for pay-as-you-go off-grid trained on resilience in 2016. Programme: solar benefitting Programme: Accountability in Tanzania (AcT) 2.4 million people from just $7 million Global Resilience Partnership (GRP) invested since 2012. Programme: The Renewable Energy and Adaptation 38 10 million to Climate Change Technologies (REACT) Rural financial products launched in window, AECF Beneficiaries in agribusiness, clean energy, 1 year. adaptation and financial services, 8000 jobs as of 2015. Programme: The MasterCard Foundation Fund for Rural Programme: Prosperity (FRP) The Africa Enterprise Challenge Fund (AECF) 2 million Beneficiaries, 77,000 trained in 2015 for resilience. 22 million Programme: Building Resilience to Adapt to Climate Extremes and Disasters Tanzanians received governance (BRACED) information. Programme: Accountability in Tanzania (AcT) 8 I IMPACT REPORT 2015 – 2016 OUR VALUES IDAS Impact Represents KPMG Values Impact highlights from IDAS-managed programmes Systemic change is achieved by IDAS- IDAS-managed programmes have managed programmes by crowding benefitted tens of millions of people; our in private sector investment around team works to understand exactly how demonstration of a viable pro-poor each one of those lives has improved – Lead by products and services. Respect the whether incremental gains from financial services that reach millions, or a life AECF REACT support to a cluster of individual example changing income increase for individual pay-as-you-go off grid solar companies farmers through a poultry project. has helped to catalyse an entire industry. We focus on making sound funding We strive to break down boundaries