1. Poverty Alleviation and Domestic Resources mobilization :
The case of Zitouna Tamkeen
Nabil Ghalleb, Founding CEO of Zitouna Tamkeen / Istanbul, November 2018

2. Agenda Economic Empowerement for Poverty Alleviation
How Economic Empowerment Model can participate in poverty alleviation
Domestic Ressources Mobilization
Case of Zitouna Tamkeen

3. Agenda Economic Empowerement for Poverty Alleviation
How Economic Empowerment Model can participate in poverty alleviation
Domestic Ressources Mobilization
Case of Zitouna Tamkeen

4. Zitouna Tamkeen – Overview
Zitouna tamkeen is the first and unique Islamic microfinance institution in Tunisia and was created with the intention to institutionalize the economic empowerment financing approach by building a financial institution whose activity goes beyond financial inclusion and promotes vulnerable people empowerment and economic inclusion.
Zitouna Tamkeen adopts the economic empowerment financing model and uses the tools of Islamic microfinance. This approach combines innovation, resourcefulness and opportunity to address critical social challenges.

5. World Bank definition - Sourcebook on Empowerment (2002)
Economic Empowerment– Concept
Mayoux Definition
World Bank definition - Sourcebook on Empowerment (2002)
"The process through which those who are currently disadvantaged achieve equal rights, resources and power"
“The expansion of assets and capabilities of poor people to participate in, negotiate with, influence, control and hold accountable institutions that affect their lives”

6. Economic Empowerment – Foundations
Economic empowerment of the poor and social groups threatened with marginalization is to empower them on both individual and collective :
Developing economic abilities so that they are able to manage their daily lives.
Enabling them to effectively participate in economic projects.
Enabling them to obtain resources and infrastructure necessary to navigate, produce and trade.
Enabling them to obtain necessary financial resources.
Support and accompaniment until they can make appropriate economic decisions.
Obtain the basic social security services.

7. Economic Empowerment – Foundations

8. The EE approach is focused on value chain financing
Economic Empowerment – Objectives
The EE approach is focused on value chain financing
Objectives
Scan for high potential value chains in terms of job creation
Calibrate the intervention points to reach the greatest number of beneficiaries via the financing of Economic Empowerment projects.

9. Economic Empowerment– Business Model
Zitouna Tamkeen acts as a link between the upstream (Production) and the downstream (Marketing) in a Value Chain.
Smallholder farmer
Strategic partner
Production
(Upstream)
Marketing
(Downstream)
Distribution
End market
Financing Economic Empowerment and capacity building projects will strengthen the various links in the value chains and promote synergy between its various players. 9

10. Economic Empowerment– Business Model

11. Economic Empowerment – Sustainable Development Goals

12. Economic Empowerment – International Experiences
Palestine
Sudan
The program started with $10 million and reached $131 million.
Created 13 thousand projects and 26 thousand jobs.
Improved living condition of 39 thousand families and 5 thousand went out of poverty.
270 thousand people depend on it. 60% of children.
Produces $30 million annually.
Rationalization of endowment property and its maintenance.
IDB has developed an empowerment program for $65 million.
$136 million were mobilized, $12 million from IDB, $20 million from the Zakat Fund and the rest from local banks.
Enabling 172 thousand poor every year.
800 thousand people depend on it.
Utilizes 13 financing methods. Murabaha represents 10%.
Resisting Inflation: Musharakah and Salam.
Benin
Yemen
The program began with $10 million from the bank.
Benefited so far 95 thousand beneficiaries of the poorest.
Created about 500 producing project for the poorest.
Household expenditures increased by 81%.
Improve health status by 85% and food by 87%.
Improved social status by 87% and family by 88%.
Reduced forced migration.
The program began with an Islamic bank.
Brought contributions to more than 5 regions.
Local banks applied to join the program.
Aims to work on the overall development of the villages (3 fishermen villages, farming village with manufacturing and a tourist village).

13. Agenda Economic Empowerement for Poverty Alleviation
How Economic Empowerment Model can participate in poverty alleviation
Domestic Ressources Mobilization
Case of Zitouna Tamkeen

14. Resources Mobilization – Selective Shareholders

15. Resources Mobilization – Dedicated Partnerships Department
Business Engineering Department
Institutional Partnerships
Projects / Value Chains Engineering
Communication

16. Resources Mobilization – A huge network of partnerships

17. Resources Mobilization – Forging Partnerships with Various Sectors17

18. Resources Mobilization – Forging Partnerships with Various Sectors
The project employed a multi-stakeholder approach by forging partnerships with various groups from the Government, the private sector, civil society organizations in Tunisia and a few international organizations.
Beneficiaries
Small-scale breeders
Milk collection centers
Industrials
Technical and funding partners
Government (MoA, APIA, etc.)
Private sector (Delice Danone)
Civil Society (T4D, CORP, etc.)
International Organizations (UN, GIZ, Farmer business school, etc.)
Special focus on private sector (Delice Danone): Financial contribution / Secondment of staff / Joint Creation of a guarantee fund / Objective: Spin-off of the project to a stand-alone entity owned by beneficiaries in partnership with Zitouna Tamkeen and its partners. 18

19. Resources Mobilization – Smart Ecosystem
NGO
MFI
Consulting Company
Establishment of an adequate environment for the EE Concept
Funding and follow-up
Design of investment projects within the framework of EE

20. Resources Mobilization – Smart Ecosystem1
A non-profit organization 
Supports beneficiaries and prepare them for economic empowerment projects 2
Promotes economic empowerment ideas and projects 3 4
Directs public officials to improve the environment for initiative and investment 5
Provides an independent forum for bringing together and converging interests and promoting cooperation between different groups in society 5

21. Resources Mobilization – Smart Ecosystem

22. Resources Mobilization – Smart Ecosystem
What stakeholders give?
Money
Goods/Products
Equipment
Technical Assistance
Assets
Sponsorships
Seconded staff
Joint promotions/Cause related marketing
Volunteer Time
NGO
MFI
Consulting Company
Establishment of an adequate environment for the EE Concept
Funding and follow-up
Design of investment projects within the framework of EE

23. (4) Assistance and follow up (1) Smart partnerships for EE projects
Resources Mobilization – Smart Ecosystem
Strategic partner
(5) Providing services
(6) Payment
Beneficiary
(4) Assistance and follow up
(3) Coaching
(1) Smart partnerships for EE projects
(7) Payment
(3) Financing
(2) Project study 23

24. Resources Mobilization – Innovative Solution Engineering
Microfinance Institutions are not authorized to collect deposits & saving;
Local Lines of Financing are limited, the international ones are expensive (FOREX risk);
What are the alternatives? 24

25. Resources Mobilization – Innovative Solution Engineering
Disguised local Crowdfunding – Small funds / Big Impact 25

26. Resources Mobilization – Innovative Solution Engineering
Disguised local equity crowdfunding – Small funds / Big Impact (ongoing)
The Crowd
Asset Management Company
CrowdFund
Zitouna Tamkeen
Investment in EE projects 26

27. Zitouna Tamkeen (Mudarib) Economic Empowerment projects
Resources Mobilization – Innovative Solution Engineering
Issuance of “Social Sukuk” called Tamkeen Certificates (Expected issuance : next year)
Zitouna Tamkeen (Mudarib)
SPV
Investors (Rab Mal)
Economic Empowerment projects
Project-based Sukuks 27

28. Resources Mobilization – Innovative Solution Engineering
Integrated Model Waqf – Zakat – Microfinance
Estimated Zakat funds in Tunisia : TND 3 billion yearly 28

29. Resources Mobilization – Lessons Learned
Innovation in terms of developing resources mobilization solutions is required.
Involvement of different stakeholders in the RM efforts is a must.
Resource mobilization is really FRIEND raising : Financial support comes as a result of a relationship, and not as the goal in and of itself.
People don’t give money to causes, they give to PEOPLE with causes.
People give to organizations to which they have personal affiliation, in some shape or form.