Honey Care Africa

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Honey Care Africa Muringa Avenue, Jamhuri
ParkP.O. Box 24487, Nairobi KENYA
www.honeycareafrica.com Strengthening Grassroots
Business Organizations Initiative (SGBI) IFC
World Bank Group
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Honey Care Africa

• Established in March 2000 as a private sector
  organisation, but with an explicit sustainability
  agenda.
• Fair Trade Organization and committed to
  Triple-Bottom Line Value Generation.
• Best described as a Social Enterprise
• Objective Using better beekeeping technology to
  improve rural incomes, empower women and youth,
  and promote biodiversity conservation.
• 17,500 hives established across Kenya 2,500
  rural households earning steady income through
  honey production.
• Steady business improvement since inception
  modestly profitable in FY 2003 moving to strong
  sustainability and replication on a commercial
  basis.

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Honey Care Africas Three-Way Partnership

• Emerged from attempt to redefine role of private
  sector as a more engaged and pro-active driver
  for development in the South.
• Innovative, synergistic partnership between
  private sector, development sector and rural
  communities.
• Utilising key strengths of the three partners for
  mutual enhanced benefit.
• Specific roles defined for each party, governed
  by MOU.
• Supported by DFID, IFC, Soros Foundation, DANIDA,
  EU, UNDP, Action Aid and others to establish
  community beekeeping projects.

Honey Care
Symbiosis
Rural Communities
Donor / MFI
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Key Challenges

• Management Information Systems required
• Better social and economic impact monitoring
  needed
• Expansion and replication hampered by lack of
  access to finance
• Further Product Development, Local and Export
  Market Development necessary
• Extension Services cannot reach all farmers
• Hive Manufacturing and Honey Processing Facility
  stretched to limit

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Strengthening Grassroots Business Initiative

• New initiative of the World IFC/ World Bank Group
  to support Grassroots Business Organizations
  (GBOs)
• Growing recognition that line between NGOs and
  Businesses not clear-cut any more. Many
  organizations defying traditional
  compartmentalization
• GBOs often fall between the cracks and needs not
  met by donors, VCs or local / international
  market.
• Objective Strengthen organizational capacity,
  help them move towards full commercial viability
  and scalability, increasing positive social and
  economic impact.
• SGBI will provide tailored mix of Grant,
  Technical Assistance and Patient Capital to Honey
  Care.
• Total Proposed funding of US 300,000 for Kenya.
  
• Similar amount for Tanzania. Funding will be
  matched by Honey Care, Swisscontact and Swiss
  Development Corporation.

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Priority areas to be supported by SGBI

• A mix of Technical Assistance, Grant and Patient
  Capital to
• Expand Hive Manufacturing Workshop
• Renovate Honey processing Facility
• Obtain HACCP and ISO 9000 Quality certification
• Develop and implement effective and integrated
  MIS system
• Develop Baseline and Community Impact Metrics

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Priority areas to be supported by SGBI

• A mix of Technical Assistance, Grant and Patient
  Capital to
• Increase extension services and training capacity
• Set up honey extraction centres at community
  level
• Improve communication and transportation
  facilities
• Expand and further capitalize Hive Micro-Leasing
  Scheme

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Priority areas to be supported by SGBI

• A mix of Technical Assistance, Grant and Patient
  Capital to
• Develop and implement a comprehensive marketing
  plan
• Market honey locally more effectively by
  increasing marketing staff and outreach
• Develop and establish export market for honey by
  obtaining international food safety and quality
  certifications
• Replication and expansion into Tanzania in 2005.
  Supported jointly by Swisscontact and SDC.

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Expected Impact - Kenya

• 1,000 additional Farmers to start beekeeping
• Support services to be extended to additional
  existing beekeepers
• 5 new full-time jobs to be created
• Products to be marketed more widely locally and
  internationally
• Hive micro-leasing facility to be expanded
• Improved management information systems
• Honey Care to become a more efficient,
  better-managed and fully-commercialized
  organization.

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Expected Impact - Tanzania

• Hive manufacturing and Honey processing Facility
  to be set up
• 22 new full-time jobs to be created
• 7 community-level hive demonstration and honey
  collection centres to be established
• At least 1,000 small-scale subsistence farmers to
  be reached
• Cumulative payments to farmers to exceed US
  750,000 over the next 10 years