Inclusive Business in ADB and IDB

ADB-IDB-FRI Workshop
27 Feb 2013, 10-12:00, Tokyo

For inquiries:
Armin Bauer, Asian Development Bank, abauer@adb.org, Tel: 0063-2-6325550 Robert de Jongh / Elizabeth Boggs Davidsen, Inter American Development Bank, rdejongh@red-mantra.com

Overview

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What do you want to know? The BoP in Asia and Latin America ADBs IB initiative IDBs Opportunity for the Majority Initiative Looking ahead

The IB market in Asia/Latin America

large purchasing power, and huge opportunity for involving the poor
The Base of the Pyramid East and South Latin Southeast Asia America Asia % of population (2009) the rich

the lower and upper middle class 65.9 53.0 33.2 14.3 1,983.1 94.1 88.4 70.9 36.0 1,586.7 31.4 22.0 12.4 6.5 569.5 inclusive business vulnerable ($3, $4)

poor ($2) very poor ($1.25) Total popuklation (million people)

Sources: World Bank PovCalNet (24 Aug 2012 update), ADB Key Indicators 2012

Note: ADB uses $3 poverty line, while IDB uses $8 (59.9% of population) as benchmark line for the BOP

ADBs Private Sector Department

One bank, two windows

Sovereign (USD12.6 billion in 2012) Non sovereign (USD 1.6 billion in 2012)

Portfolio 2009: energy 52%, banking + funds 26%, trade finance 10%, ICT 3%, transport 2%, others 7% In 2011: $1 billion in loans, $89 million in equity, $100 million in B loans, $417 million in guarantees, $12 million in technical assistance. Mainly infrastructure (43% of projects approved was for renewable energy/ energy efficiency, and 14% for hydropower) Examples of IB projects: BAN-Pram (agrobusiness), BAN Grameen phone, IND-Simpal (energy), IND Pune slum (housing), PAK-Engro (milk)

ADBs IB Initiative

2011-2012 10 country studies: BAN, CAM/LAO/THA, IND, INO, PHI, SRI, VIE, PAK IB country roundtables, regional Forum (Nov 2012) Preparing for possible investments Developing (and harmonizing) an impact assessment tool Knowledge sharing and partnership Cooperation with IADB, corporate leadership training Partnership with WBCSD and SNV; IDB; Inclusive Business Forum 28+29 Nov 2012, Manila (plus country fora) The next steps TA Facility 2013-2016 strengthen the ecosystem, build a pipeline, incubate/accelerate inclusive business investment opportunities Catalyze the development of a portfolio of inclusive business financing facilities (debt, guarantees in the first instance but with the possibility of crowding in equity partners)(clustered in relevant geographies i.e. South Asia, Mekong, etc) Lead as convener and thought leader in Asia leveraging best practices from across the region and other regions leapfrog where possible

IB in the IDB

See separate file

Implications for Japanese Companies

Investment Opportunities (IDB)

Financing partner to Japanese companies interested in developing inclusive businesses in Latin America Knowledge hub for inclusive business in Latin America with:

Critical expertise honed through on-the-ground experience across sectors and geographies; Sophisticated network of relevant stakeholders in academia, government, civil society, donors/investors and the private sector; Proven track record sourcing, executing and monitoring the performance of an inclusive business portfolio of 40+companies Integrated metrics system designed to help clients assess their performance efficiently and effectively

Thought leader on inclusive business in the region and host of most prominent inclusive business event each year in the region (BASE Forum next one in Medellin in June 2013)

Technical Assistance Support

More information

ADB: Inclusive Business website

http://www.adb.org/themes/poverty/inclusive-business-base-pyramid

IADB: http://www.iadb.org/om or email OM-IDB@iadb.org IFC: http://www.ifc.org/inclusivebusiness World Bank: http://blogs.worldbank.org/dmblog/category/tags/inclusivebusiness-model)