November 7th, 2013 Click here to download the vision Africa 2.0 Manifesto A Business Plan for Africa Breakaway Sessions 2: Market Enhancement & Segmentation of our target market Session 2: Corporate Social Responsibility – Eradicating poverty in order to increase addressable market

2 P OLICY R ECOMMENDATIONS WITHIN THE A FRICA 2.0 M ANIFESTO Health Care  A well-structured PPP project where the private sector is responsible for the construction and facilities management of hospitals, and the public sector is responsible for the provision of health services within it.  Promotion, prevention, care and rehabilitation need to be incorporated into a countries health plan in line with national circumstances.  Leapfrog by using technology to address health related issues Housing  Develop and Communicate a long term urban planning scheme – spare headed by central banks - to attract private investors and banks.  Clarify and computerize land ownership Schemes and deeds title registration procedures to enforce collaterals.  Settling up local plants with local partners to allow rapid construction and meeting rampant housing demands of low income bracket.  Build new cities adjacent to existing historical urban centres Basic Education  Greater focus on higher education  A training Curricula adapted to market demands and reinforcement of capacity in priority sectors (for instance make corporate/NGO/Government internship as pre-requisite for all tertiary and technical education diploma).  Stronger bridges and skills transfer between public and private sector.  Leapfrog by leveraging on technology through e-learning and distance learning Click here to download the vision Africa 2.0 Manifesto

3 W HAT IS C ORPORATE S OCIAL R ESPONSIBILITY ? CSR is a management concept that is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders (source: UNIDO website). (Source: Feed the Future Guide, USAID, May 2010) K EY F ACTS & F IGURES

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5 Corporate Social Responsibility (CSR) can be a tool to address Africa’s most pressing issues such as: Economic poverty 69.9% of sub- Saharan Africa’s population was living with less than $2 a day (PPP) in Education Almost 1⁄3 of sub- Saharan African youth lack the most basic skills. Africa has the lowest secondary & tertiary school enrolment. Nutrition & Health Africa has the highest prevalence of undernourishment in the world – 23%. In 2011 there were 23.5 million people living with HIV in sub-Saharan Africa. 80% of all malaria cases are in sub- Saharan Africa. There are only 2 physicians per 10,000 Africans (the world average is 14). Housing The share of urban population living in slums in sub- Saharan Africa is the highest in the world, and almost twice the average share of developing regions. Source: Mo Ibrahim Foundation, 2013

6 W HAT IS C ORPORATE S OCIAL R ESPONSIBILITY ? Corporate Social Responsibility (CSR) should not be confused with other terms: Shared Value Corporate Social Investment (CSI) Corporate Philanthropy Donation of funds, time or skills without expectation of any direct corporate gain (e.g. cash or in- kind donations). This is often included as a subset of CSR. Companies invest, in a variety of ways, in the advancement of certain socially and/or environmentally defined needs, projects or causes extraneous to their regular business activities (source: GTZ 2009). A company leverages specific resources and expertise to create economic value by creating social value. Societal issues are embedded within a company’s core business strategy and practice to create profits that are sustainable (source: Porter and Kramer 2011).

7 K EY F ACTS & F IGURES Fact 1 : South Africa seems to be the leading country in CSR development and implementation on the African continent. Fact 2 : 97% of company leaders in Africa consider their commitment to sustainable development as a key success factor. Sources: Accenture France, 2010; GTZ, 2009 CORPORATE SOCIAL RESPONSIBILITY (CSR) IN AFRICA Fact 4 : The three (3) top priorities for CSR involvement in Africa seem to be education and training; health and environment; sport and culture. Fact 3 : The understanding and practice of CSR in Africa is predominantly philanthropy-oriented.

8 L EVERAGING S TRENGTHS AND O PPORTUNITIES, A DDRESSING W EAKNESSES AND T HREATS Strengthening and weakening factors have been identified in relation to CSR: Source: GTZ, 2009 Strengthening factorsWeakening factors Executive management commitment and support Low executive management commitment and support Availability and management of fundingLack of sufficient financial resources Ownership and cooperation of beneficiaries Low ownership and cooperation of beneficiaries Project management skills and efficiencies Limited project management skills and efficiencies Stakeholder/partnership involvement and management Company objectives and CSR policy alignment Absence of CSR policy Monitoring and evaluationBarriers to monitoring and evaluation Staff commitment, support and participation Low staff commitment, support and participation Insufficient support structures for CSR activities

9 L EVERAGING S TRENGTHS AND O PPORTUNITIES, A DDRESSING W EAKNESSES AND T HREATS Leadership and governance Policy framework Project management M&E, reporting Stakeholder engagement Staff engagement Government Beneficiation Funding 9 key success factors for CSR in sub- Saharan countries Source: GTZ, 2009 These strengthening and weakening factors can be summed up into 9 critical success factors; depending on their status (absence/presence; low/high), they can hinder or support CSR development.

10 L EVERAGING S TRENGTHS AND O PPORTUNITIES, A DDRESSING W EAKNESSES AND T HREATS OPPORTUNITIES AT THE BASE OF THE PYRAMID Key tips to develop business at the BoP: The BoP market is won one village at a time. Mass communication is not considered effective for this customer segment, and Word-of- Mouth matters most; Serving the BoP is a high gross margin business. You need to have funds available for after sales, financing solutions, product demonstrations, etc.; High turnover of sales staff is a challenge for most companies and a major cost; It is worth investing in a modern sales force. Equip them with mobile phones, CRM, etc. Key tips to develop business at the BoP: The BoP market is won one village at a time. Mass communication is not considered effective for this customer segment, and Word-of- Mouth matters most; Serving the BoP is a high gross margin business. You need to have funds available for after sales, financing solutions, product demonstrations, etc.; High turnover of sales staff is a challenge for most companies and a major cost; It is worth investing in a modern sales force. Equip them with mobile phones, CRM, etc. The base of the pyramid refers to the largest and poorest socio-economic group: 4 billion people living with less than US$2.50 a day. Three (3) types of products can be opportunities for business development: Basic products and services (health, water, education) Example : « remote medical diagnosis » developed by Tata Consultancy Services (TCS) and Intel Atom, in order to diagnose patients from remote areas via a computer connected to the Internet. Adapted financial services Example : microcredit, microfinance (developed by Grameen Fund). Products and services whose marketing is adapted to the BoP Examples : Hindustan Unilever with its mini-shampoo pack, etc.

11 B EST P RACTICES CSR areas: Culture : SAP supports and works with science centers and museums in South Africa’s larger cities. Technologies : Standard Bank offers mobile banking to Africa’s poor. Environment : Impahla Clothing, a supplier to PUMA, is a carbon-neutral clothing manufacturer. Basic services (health, education) : MTN works on health and literacy challenges in Ghana. Different CSR practices: Philanthropy : Ecobank Foundation receives 1% of the group’s post-tax profits to finance projects. Staff engagement : First National Bank (SA) has an in-house volunteering program for its employees, the First Rand Volunteer Program. 38% of employees are active members.

12 K EY Q UESTIONS TO A DDRESS IN T ODAY ’ S S ESSION How to implement an optimal and comprehensive CSR strategy at Africa Inc.? How to involve Africa Inc. and other companies in eradicating poverty and other social and environmental issues on the continent? How can Africa Inc. implement smart philanthropy and corporate social investment? How can Africa Inc. involve its Human Resources and its other stakeholders in its CSR activities? How to ensure an efficient monitoring and impact assessment of Africa Inc.’s CSR activities?

13 A CTION PRIORITIZATION M ATRIX AND S TAKEHOLDER E NGAGEMENT M ATRIX For each identified leapfrogging action, complete the Stakeholder Engagement Matrix below: Complete the Action Prioritization Matrix below with the key short, medium and long-term leapfrogging actions.