JICA’s Partnership withPrivate Sector
for SDGs in Africa
Eiji Kubo
Director of Private Sector Partnership Division
Japan International Cooperation Agency (JICA)

Private Sector Partnership Scheme
Dissemination
Information Gathering, Activities,Feasibility Study
Human Resource
Development
F/S for Businessengaging in SDGs
(incl. BOP/InclusiveBusiness)
PPP Infrastructure F/S
Basic Survey programfor SMEF/S for Utilizing
Japanese
Technologies in ODA
Project

Collaboration
program forDisseminating
Japanese
Technology

Verification Survey
for Disseminating
Japanese
Technologies

Overseas Volunteering Program： Proposal based Program for PSE： Proposal based Program for PSE (SME Only) 1

Project/Business
implementation

Private Sector
Investment
Finance

Project/Businessexpansion

Scale up to ODA

Commercialization
byPrivate sector
Access to otherfinancial
Organizations

Feasibility Survey for SDGs BusinessFeasibility survey for SDGs Business (incl. inclusive business) which contributes tomeeting and responding to development challenges in developing countries.
(Former “Preparatory Survey for BOP Business Promotion”)

Japanese Company

Developing Country

Aims to conduct SDGs
business that responds todevelopment challenges
Business PlanＪＩJICA
Supports information gathering Ｃand business plan formulation Ａ

Social and Economical
ChallengesSupport Japanese Company
to harmonize its technology tosolve development challenges

Development Impact

Business Sustainability2Project Attributes(Preparatory Survey for BOP Business Promotion)
33% of the projects target African countries, while 63% target Asian. Projects inagriculture, healthcare and energy sectors account for more than 80%.

Project Areas
Middle &SouthAmerica,
3%

Sectors in Africa

Oceania, 1%

Fishery8%

Asia, 63%

Africa,33%

Others11%

Agriculture
35%

Energy19%
Healthcare
27%

N=114

Kenya 9, Ghana 6, Tanzania 5, Mozambique 3,Senegal 3, Morocco 2, Uganda 2, Ethiopia,
Nigeria, Malawi, Rwanda, South Africa, Tunisia,Zambia

3

N=38

Case Study: Ajinomoto
In 2009, Ajinomoto launched the Ghana Nutrition Improvement, a multi-stakeholder
collaboration including the government of Ghana, the University of Ghana, and otherinternational NGOs and corporates aiming to improve child nutrition.

【Ghana】

Nutrition supplement introduced inGhana using JICA BOP/inclusive
business program• Koko is a traditional weaning food in Ghana, deficient in energy,
protein, and micronutrients. Koko Plus can be added to koko tofulfill nutritional requirements• Social business model based on understanding local needs,
developing local partnerships, educating mothers on importanceof nutrition and building up an innovative distribution model4

Case Study: Kagome
JICA and Kagome, a Japanese food processing company, collaborate to develop
agricultural sector and improve low-income farmer’s economic situation in Senegal.

【Senegal】
Kagome considers developing
agricultural practices andestablishing a tomato processing
factory and collaborates with aJICA’s technical assistance project.
FactoryLow-income farmer
JICA is currently teaching rice cultivation
method and pest prevention technique to
low-income farmers in Senegal

IMPACT
1. Agricultural sector
development
2. Income improvementof low-income farmers

Kagome is finding out the best type oftomatoes to be planted in Senegal by lowincome farmers and teaching themappropriate agricultural practices.
5Purchases
domesticallycultivated tomatoes

Case Study: Yamaha
Yamaha, a Japanese musical instrument manufacturer, aims at creating sustainablesupply chain for African Black Wood together with local NGOs that advocate
sustainable forestry and community management.

【Tanzania】
Yamaha is conducting a feasibility
study to create FSC certified
sustainable supply chain for its
major raw materials, African Black
Woods, and establish efficient andtraceable procurement system.

• Yamaha intends to giveback the extra profit
resulting from the new
efficient procurement
system to the local lowincome farmers

6

Case Study: Digital Grid Solutions
JICA supports small start-up companies with innovative technologies such as Digital GridSolutions, a venture from Tokyo University. With its technology that enables access toelectricity according to consumers’ affordability, the company conducted a F/S in Kenya
and now launched its operation targeting to expand to Africa region.

【Tanzania】
The company developed an electricity
controlling system called “Digital Grid”
that enables electricity to be usedthrough a pay-per-use basis. This
technique is unique as the customers areable to access electricity in an affordableway.
Business model

Expansion phase

Started in Kenya as a
JICA’s BOP F/STechnology &Infrastr
uctureDigital Grid

Expanded to Tanzania

Lease
Fee

Receive PSIF from JICA
and aim to expand more
7

Kiosk Owners

Service(Electricity)
ServiceFeeEnd UsersCritical Factors and Expected Risks
Based on the analysis from the completed projects, there are 4 critical factors for a strong
foundation for F/S that are common in all the successful cases and 8 risks that need to beaware of during F/S.
Expected risks during F/S

Critical factors for building
solid foundation for F/SABC

D

Whether the business isrecognized in the long-term
strategy
Whether the local businesspractitioner is appropriately set
Whether the business fits inlocal needs
Whether the local environmentis favorable to the businessCommon in all projects

BOP as Producers

BOP as Consumers
123

Difficulty in developing
effective sales network
Difficulty in securing profitable
market size
Inability to pay among BOP
consumers

4

Burden to earnacknowledgement of product/
service value

5

Difficulty in developing
products affordable

678

Difficulty in educating BOP
human resources
Non-functioning or nonexistent distribution network
Difficulty in gaining BOP
producers’ trust andcooperation

Specific to a certain business model
8

Expected Risks in Main Sectors
The expected risks during the feasibility study terms are different according to businesssectors of the projects. Each risks have different level of impacts on the companies’
business development.
: Sector-specific risks
Sectors

Expected Risks
Difficulty in adapting technologies and crops to local environment

Agriculture

Inability to pay among BOP consumers

Medium

8.8

Difficulty in gaining BOP producers’ trust and cooperation

Medium3.3

Inability to pay among BOP consumers
Burden to earn acknowledgement of product/ service value
Difficulty in gaining local partners’ trust and cooperation
Difficulty in overcoming local government’s energy policy and market trend of energy

WaterHigh

3.3

Healthcare

EnergyImpact on Biz Dev.

HighMedium
Low
Significantly High

5.5

Difficulty in developing products affordable

High33.

Inability to pay among BOP consumers

High

3.3

Inability to pay among BOP consumers

Significantly High

4.4

Burden to earn acknowledgement of product/ service value

Significantly High

Difficulty in gaining local partners’ trust and cooperation
9Medium

From BOP to SDGs Business
BOP-oriented
areas

Expandedareas

Partnership
Promotion10