PROGRAMMES FOR SOCIAL INCLUSION Strengthening agro-industries UNIDO’s agribusiness activities focus on strengthening the food processing sector in developing countries in order to increase the availability of wholesome and nutritious food both for the local market, contributing to national food security, and for international markets, in order to generate income and create wealth. With its proven expertise and experience in designing and implementing programmes for the development of the agro-industries sector, UNIDO is ideally placed to lead partnerships at the national level and engage with value chain actors and development partners. UNIDO works with other development agencies to find innovative solutions to challenges facing the food industries of its client countries. One particular area of focus is the development of value chains and investment in agribusiness to enhance productive capacities and reduce post-harvest losses. UNIDO’s agro-industry specialists are responsible for identifying and strengthening food value chains by conducting gap analyses and designing programmes to facilitate access to technologies, business development services, financing, markets and trade opportunities.
> Value chain studies in 18 target countries completed
2
Inclusive and Sustainable Industrial Development
Regional flagship initiative
Accelerated Agribusiness and Agro-industries Development Initiative (3ADI) As the agricultural sector remains the backbone of economic
promotion. UNIDO further assists beneficiaries in mobilizing
activity, employment and livelihoods in most developing
the necessary resources (finance, investment, technology,
countries, strengthening it and adding value to agricultural
expertise, etc.) so as to contribute to the sustainability of its
commodities are instrumental to enhancing food security,
interventions.
stimulating economic growth and reducing poverty in a sustainable manner.
The initiative builds on the awareness that tackling complex challenges, such as the transformation of subsistence
The 3ADI was launched in 2010 in partnership with the African
agriculture into productive agribusiness, requires the
Development Bank (AfDB), the United Nations Food and
engagement of a broader range of actors. Hence, 3ADI pools
Agriculture Organization (FAO) and the International Fund
together key stakeholders – governments, development
for Agricultural Development (IFAD). It aims at enhancing the
partners, business and research institutions alike – to
productivity and profitability of agribusinesses.
leverage their core competencies, share knowledge and harmonize efforts. Since the private sector plays an
In support of this goal, UNIDO designs and implements
instrumental role in driving systemic change in agribusiness,
action-oriented technical assistance programmes and
3ADI also provides a framework for developing cross-sectoral
provides integral policy support. Its interventions concentrate
partnerships to help implement large-scale programmes in
on several key pillars of agribusiness development: upgrading
this area.
entire value chains, strengthening technology, promoting innovative sources of financing, stimulating private sector
By involving various actors and linking their unique resources,
participation, improving infrastructure and facilitating market
UNIDO can enhance the effectiveness and sustainability
access. Constraints are first mapped along the value chain
of its activities, promoting the expansion of local and
of one or two key agricultural products identified by national
international value chains for the benefit of small producers
governments as priorities. UNIDO subsequently designs and
and entrepreneurs. As a consequence, additional incomes for
validates, in close collaboration with all stakeholders, robust
producers are created, as well as new jobs. The integration
interventions that promote value-addition in agro-processing,
of smallholder farmers into commercially viable business
post-harvest handling, supply chain management and trade
linkages also allows UNIDO to expand the social inclusiveness of agribusiness value chains. Overall, the whole economy of target countries benefits from the higher proportion of value addition that can be retained within their borders. Partnering with the private sector helps ensure that UNIDO interventions remain relevant to the needs of industry. Private partners also facilitate the knowledge and technology transfer required for the empowerment of small and medium enterprises (SMEs) and the industrialization of Least Developed Countries (LDCs). 3ADI currently focuses on Afghanistan, Brazil, Burkina Faso, Comoros, Democratic Republic of the Congo, Ethiopia, Ghana, Haiti, India, Liberia, Madagascar, Niger, Nigeria, Rwanda, Sierra Leone, Sudan, and United Republic of Tanzania. For more information, contact: AGR@unido.org
3
PROGRAMMES FOR SOCIAL INCLUSION
Liberia: Promoting youth employment in the mining, construction and agriculture sectors of heavy equipment, which is presently in high-demand across all sectors. Furthermore, Komatsu will share best practices to ensure that the training meets the requirements for servicing and operating modern heavy equipment.
Liberia has made significant progress, yet the country faces threats from increasing youth unemployment and a growing influx of returnees to the country. Simultaneously, Liberia is attracting significant foreign investment in key industrial sectors, which include mining, energy and road construction as well as agriculture and forestry. The lack of quality vocational education and well-trained technical personnel in the country present a significant barrier to Liberians taking advantage of the employment opportunities created.
Following the Komatsu training in Japan, Booker Washington Institute instructors will play a critical role in assuring the quality of the training courses and ensuring that graduates achieve the level of competence required to gain employment in the industry.
UNIDO’s project seeks to upgrade Liberia’s training infrastructure to the needs of modern industry. This will enable vulnerable groups, particularly young people, to benefit from the employment opportunities generated.
The project is funded by the Government of Japan (USD 1.4 million) and works closely with Komatsu Ltd, the Ministry of Commerce and Industry of Liberia and the Booker Washington Institute in Liberia.
In cooperation with Komatsu, a Japanese manufacturer, a modern facility will be established to provide hands-on and classroom-based learning using a modern curriculum developed by the company. The training centre will prepare students for future careers in the operation and maintenance
For more information, contact: AGR@unido.org
> The training centre prepares students for future careers in the operation and maintenance of heavy equipment, which is presently in high-demand across all sectors
4
Inclusive and Sustainable Industrial Development
Value chains and supplier development In the past few years, there has been growing interest in looking at the entire value chain, from primary production to consumption and disposal, and specifically to those SMEs and agribusinesses supplying raw materials or semi-processed or consumer goods and services to multinationals. SMEs producing agro-based products in developing countries, especially small production units, often lack the technical and financial means to produce goods of sufficient quantity and quality in a cost-effective manner. This means that they miss out on the market opportunities offered by local and global supermarkets and manufacturers.
5
Dollarphotoclub
Dollarphotoclub
This has a negative impact on those less developed businesses and their workers who strive to access formal and profitable markets with their products in order to grow and generate income and job opportunities. UNIDO recognizes that aligning business strategies, operations and supply chains with sustainable development outcomes is not only a social responsibility, but also increasingly a business imperative. Adopting more socially inclusive and environmentally sustainable business operations will help to mitigate risk, develop new markets and cultivate sustainable relationships with suppliers, customers and investors.
PROGRAMMES FOR SOCIAL INCLUSION
Regional flagship initiative
PAMPAT: Improving livelihoods of small-scale rural producers of typical food products in Morocco and Tunisia
Within this context, UNIDO is implementing a project in Morocco and Tunisia with funding from the State Secretariat for Economic Affairs (SECO) of the Swiss Government. Launched in
2013, the “Projet d’accès aux marchés des produits agroalimentaires et de terroir” (PAMPAT) aims at improving the performance, market access and socioeconomic conditions of several value chains: in Tunisia, project activities focus on harissa, the Djebba fig and the prickly pear, while in Morocco the argan oil and prickly pear value chains in the central Souss-Massa-Drâa region have been selected.
mestic and export markets. UNIDO is also helping to ensure that the products comply with the requirements of recently introduced geographical indication and other quality labels, in order to position them in higher niche markets and allow the producers to obtain a premium price and higher revenues. Through the implementation of new green technologies the project will also improve the environmental sustainability of the value chains.
UNIDO is strengthening the organization and governance of the selected value chains, improving the productivity, quality compliance and product development of small-scale rural producers, and enhancing their position in both do-
The project has been designed and is being implemented in close cooperation with local stakeholders, including the ministries of Industry and Agriculture in Tunisia and Morocco. Special attention is placed on supporting young entrepreneurs, women and producers from disadvantaged regions. The traditional products are deeply rooted in local rural communities. By adding value along the entire value chain the project offers promising prospects in terms of improving livelihoods, creating jobs and promoting sustainable and inclusive local economic development. For more information, contact: BIT@unido.org
Dollarphotoclub
More and more consumers are searching for authenticity and are willing to pay higher prices for typical food products that are deeply rooted in the culture and tradition of their territories of origin. For small-scale rural producers, this new trend signifies a major opportunity; it frees them from having to compete on price with standardized products in commodity markets and rewards them for the maintenance of biodiversity and cultural heritage in niche markets.
6
Inclusive and Sustainable Industrial Development
Productive work for young people and entrepreneurship development Providing jobs for young people is one of the most pressing challenges for governments across the globe, a challenge that affects both developed and developing countries, as well as countries with economies in transition. The problem is exacerbated in the developing world by a lack of opportunities and financial resources. The inability to earn an income not only leads to poverty and deprivation, but all too often to insecurity, civil disturbance and crime. Without a future of their own, young people will find it hard to contribute to the future of their country. This is a high priority issue for the United Nations and its specialized agencies and there are few better examples of interagency cooperation than its common response to this challenge. For its part, UNIDO has a dedicated entrepreneurship development programme for young women and men that provides training in technical skills to empower young people, develop the local business environment and instill an entrepreneurial culture. It targets underprivileged young people in particular.
ARMENIA: Productive work for young people – supporting young entrepreneurs In 2011, the youth unemployment rate had risen to almost 40 per cent. Given the limited absorptive capacity of the Armenian public sector and of the formal labour market, UNIDO launched a project to support youth-led enterprise creation and expansion with Austria’s financial support. The project follows a comprehensive approach providing non-financial and financial services during and beyond the start-up phase, and also promotes a more conducive environment for youth-led businesses: aspiring young entrepreneurs receive direct assistance in creating and/ or developing their own businesses including entrepreneurship training, counselling and coaching, and technical assistance. They also have the possibility to access funding through the youth business revolving fund, which has been established through the project. Furthermore, institutional capacity-building has been rendered as and where necessary. Outreach activities are undertaken to reinforce the positive effects of entrepreneurship on individual, community and
socioeconomic development. Particular emphasis is given to the promotion of successful women entrepreneurs to encourage young women to enter into business. Concurrently, issues related to the business environment have been addressed; as a result, a concrete action plan and recommendations for political decision makers at the national and regional level were developed. While contributing to a systemic change, where both the public and the private sector render more and better support to youth-led enterprise creation, the UNIDO project shows that funding schemes targeted towards youth create win-win situations: the project is on track to reach its targets of beneficiaries, including 300 potential and existing young entrepreneurs (of which 50 per cent are women) and 80 youth-led businesses and start-ups. It is envisaged to expand the programme across Eastern Europe. For more information, contact: BIT@unido.org
7
> 300 potential and existing young entrepreneurs (of which 50 per cent are women) have benefitted from the programme > 80 youth-led businesses and start-ups are being assisted
PROGRAMMES FOR SOCIAL INCLUSION
MOZAMBIQUE: Entrepreneurship development for young people In 2007, with technical assistance from UNIDO and funding from the Government of Norway, the Ministry of Education and Culture introduced the Entrepreneurship Curriculum Programme (ECP) in secondary and vocational schools throughout the country. The programme aims at encouraging the development of entrepreneurial attitudes and skills. UNIDO assisted the Government in developing an entrepreneurship curriculum with syllabus, teacher’s guides, textbooks, monitoring and evaluation tools, as well as assessment guidelines. Once in school, the students learn to identify business opportunities with growth potential in their community and assess resources that can be mobilized within their environments. Students also learn in theory and practice how to set up and manage a business and make savings. Within four years, 51 per cent of all schools in Mozambique began to implement the ECP, with almost 500,000 students having taken the course, of which 47 per cent were girls. In view of ECP’s positive impact, the Ministry of Education and Culture has integrated the programme into the formal National Education Strategy and will implement it nationwide. ECP is being replicated in Angola with the support of private funds. For more information, contact: AGR@unido.org
> 51 per cent of all students have taken the course, of which 47 per cent were girls > 85 per cent of the students have acquired entrepreneurial skills, about a third of students engage in business activities
8
Inclusive and Sustainable Industrial Development
UNIDO-Volvo Group: Partnering to enhance skills development and youth employment in Ethiopia Together with the Swedish International Development Cooperation Agency (Sida), the Selam Children’s Village (SCV) / Selam Vocational Training College, the Ministry of Education and the Ministry of Industry, the UNIDO-Volvo Group partnership seeks to address unemployment and underemployment in Ethiopia, especially among young people. Within an overall environment of very low levels of educational attainment, technical vocational education and training (TVET) programmes have to adjust to changing labour market demands and cannot keep up with the rapidly increasing demand for trained manpower in sectors such as construction and commercial vehicles maintenance. This severe shortage of skilled technicians is having a major impact on productivity
and growth in the sector, and thus on Ethiopia’s economic and social development. The partnership started a new initiative to establish a training academy for technicians of heavy-duty machinery and commercial vehicles for poor and young Ethiopians so that they can take advantage of gainful employment opportunities in advanced commercial vehicle maintenance. The partners will establish a modern, well-equipped training centre for heavy-duty commercial vehicles at Selam premises outside Addis Ababa. This will involve strengthening the institutional capacity of Selam Vocational Training College to deliver up-to-date training courses relevant to the requirements of modern enterprises, which are expanding their
operations in Ethiopia. The initiative at Selam Vocational Training College will be the first state-of-the-art vocational training for heavy machinery in Ethiopia that will be open to applicants irrespective of their background. The facility will train 25-30 high school students per year. The four-year training will include, inter alia, courses in English and Information Technology. In addition, more than 100 local technicians will benefit annually from short-term skill upgrading training held at the college. The total calculated project cost is USD 5.3 million with contributions from Volvo (USD 2.8 million), Selam (USD 340,000) and SIDA (USD 2.2 million). For more information, contact: AGR@unido.org
> The facility will train 25-30 high school students per year. The four-year training course will include, inter alia, modules in English and Information Technology > More than 100 local technicians will benefit annually from short-term skill upgrading courses held at the academy
9
PROGRAMMES FOR SOCIAL INCLUSION
Clusters, export consortia and business linkages SMEs are often ill-equipped to compete effectively in global, regional and even domestic markets. Without extensive know-how and financial resources, attempts to export are often doomed to failure and may even put at risk the financial stability of the enterprises. Firms wishing to export must identify suitable foreign markets, contact local distributors, accurately gauge consumer preferences and adjust the quality and price of products accordingly. Finally, it is difficult to achieve a significant level of exports without offering a comprehensive product range. The skills needed and the costs involved in meeting these challenges are often beyond the capacities of individual SMEs. One effective way of entering export markets is through the development of export consortia or voluntary alliances of firms with the objective of promoting the export of goods and services through joint actions. UNIDO has extensive experience and expertise in this field to put at the disposal of its client countries.
Regional flagship initiative
SOUTHERN MEDITERRANEAN: Supporting the development of clusters in the Cultural and Creative Industries Every year, 5 million new jobs are needed in the Southern Mediterranean; these could be created by the region’s micro, small and medium-sized enterprises if they become more competitive in terms of business, environmental and social performance. Cultural and Creative Industries (CCI) are increasingly contributing to the Southern Mediterranean’s socio-economic development. CCI enterprises would strongly benefit from entrepreneurial cooperation to help them realize the potential of their cultural heritage, improve products to attract consumers, access local and foreign markets, and create mutually beneficial international partnerships. Based on an initial CCI cluster and value chain mapping as well as a transparent selection process, the project seeks
to provide technical assistance to at least one cluster in each one of the target countries. The project will also foster information dissemination and knowledge sharing through dedicated CCI centres as well as workshops and regional meetings that foster the exchange of best practices and success stories. Moreover, the project supports the implementation of an enhanced CCI policy framework that is conducive to the formation of clusters, thus promoting the upscaling and replication of its technical cooperation activities for increasing employment opportunities and inclusive growth throughout the region. In addition, special attention will be given to the establishment of business linkages between Southern Mediterranean and European Union cluster support institutions as well as between international buyers (retailers
10
and manufacturers) and local suppliers towards increasing sustainable sourcing. Funded by the European Union and the Government of Italy, the project is implemented by UNIDO, and will complement and add value to current and future activities that are also funded by the European Union and other donors in the Southern Mediterranean. Regional activities will also be undertaken under the auspices of the Union for the Mediterranean, which will further partner with the project as a forum and platform for information exchange and knowledge sharing. For more information, contact: BIT@unido.org
Inclusive and Sustainable Industrial Development
PERU: Industrial clusters and consortia – promoting typical products to fight poverty The project seeks to support the Government of Peru in its efforts to foster inclusive and sustainable rural development through the valorization of typical regional products. The promotion and development of origin consortia and collective brands impacts several areas: adding value to the traditional processing methods leads to higher employment rates as it involves production systems that are based on local knowledge and skills - thus preventing rural exodus. Promoting collective brands has great potential, not only for increasing the income opportunities of small-scale rural producers but also for revitalizating the historical, cultural and ecological legacy of the Peruvian regions, thus providing a starting point for boosting local economic development.
Rural Agrarian Productive Development programme (AgroRural), established a partnership for the promotion of origin consortia and collective brands as tools for sustainable rural development. The producers, organized within an origin consortium, performed four types of activities: developed a marketing strategy around a typical product at a regional level to be able to promote it as a niche item; increased the visibility of typical regional products with various partners to promote rural tourism and to enable consumers to “live and experience” the product in the territory of origin; improved typical regional/ local products to meet the expectations of the market and regulators; and ensured through the registration of a collective label that only those producers complying with the jointlyagreed specifications can use the label.
Funded by the Italian Directorate General for Development Cooperation, UNIDO, in partnership with the National Institute for the Defense of Competition and Intellectual Property (INDECOPI) and the Ministry of Agriculture through the
> Ten origin consortia, integrating over 1450 rural producers have been set up > More than 2,000 families have improved their living conditions
11
The programme is already active in eight of the poorest regions of Peru and has resulted in the creation of five origin consortia (honey, native cotton, golden berry, traditional pasta, and native potato), integrating over 750 rural producers who have officially registered their collective brands. Five more origin consortia, including 700 producers (trout, berry, mushroom, white cheese, and quinoa), are about to register their collective brands. Overall, more than 2,000 families have improved their living conditions through the programme, leading to its recognition as a “good governmental practice 2013” by the Peruvian Parliament. For more information, contact: BIT@unido.org
PROGRAMMES FOR SOCIAL INCLUSION
Gender and women’s empowerment Women are important agents of economic and social development. They play crucial roles in ensuring food and nutrition security, eradicating poverty and improving the well-being of their families, yet continue to face serious challenges. UNIDO assists its Member States to improve the entrepreneurial and technical skills of women by supporting the development of gender-responsive policies and strengthening service providers operating in skills training, entrepreneurship and technology promotion and information dissemination in communities. UNIDO provides advice on integrating gender considerations in industrial policies, assists in the implementation of programmes that improve women’s access to clean energy sources, and helps women entrepreneurs and producers.
PAKISTAN: One-UN Joint Programme “Towards Gender Parity in Pakistan” - UNIDO’s assistance towards economic empowerment through enabling women entrepreneurs in creative industries Funded under the One-UN Joint Programme “Towards Gender Parity in Pakistan”, UNIDO’s Women Entrepreneurship Development programme recognizes that expanding employment and creating livelihood opportunities for women through productive work and income-generating activities are effective ways to alleviate poverty and promote women’s economic empowerment. The main challenges that women entrepreneurs in Pakistan encounter are limited access to information and support services, ineffective linkages within the supply chain partners and limited access to markets. This weakens their bargaining position with middlemen/middlewomen who enjoy the bulk of the revenues.
UNIDO established a Business Growth Center which works towards enhancing the ability, mobility, visibility and connectivity of women entrepreneurs. Moreover, linkages with universities, the private sector and vocational training centres are created through the establishment of Creative Industries Centres. In an overarching manner, the programme focuses on making all sectors of the economy more genderinclusive. This includes finding ways to include women in the traditionally maledominated sectors of the economy. The approach has been used to identify and insert value-added subsectors with high potential for women into the already existing male-dominated value chains. This approach has also
12
harnessed the creativity of women and their ability to create highly-marketable products. These non-traditional sectors of the economy (marble mosaic, gems and jewels, and home textiles) mostly rely on culture-based designs and heritage-based knowledge, in which women play a pivotal role through their non-transferable, creative skills. In total, over 700 master trainers were instructed, with over 16,000 direct and 22,000 indirect beneficiaries. Through the awareness-building and media campaigns, over 5 million persons were reached in the target areas. For more information, contact: AGR@unido.org
Inclusive and Sustainable Industrial Development
> Over 700 master trainers were instructed > Over 38,000 beneficiaries directly and indirectly assisted through the project
13