Climate Innovation Center Business Plan: Kenya Contributing - PowerPoint PPT Presentation

Climate Innovation Center Business Plan: Kenya Contributing Authors: Anthony Lambkin Joseph Nganga Paul Scott

Structure 1. infoDev 2. Climate Innovation Centers (CICs) 3. Kenya CIC: Mission, Objectives and Impact 4. Stakeholder engagement process 5. Gap Analysis & Business Model 6. Implementation & Oversight 7. Financial Plan 8. Appendix

info Dev Innovate, Connect, Transform Goal: Providing Demonstrate the link between Training, technology and sustainable Toolkits and development Advisory Services Build local capacity in developing countries to create and accelerate innovative technology SMEs. Building Local Capacity Focus: infoDev focuses on enterprises that Catalyzing use technology to deliver innovative Innovative solutions or to increase their Pioneering competitiveness and market reach. Solutions Facilitating Experienced- Communities based of practice Foundation: Research global network of 300+ business incubators in 80+ developing countries, 20,000 SMEs, 220,000 jobs Donors and partners

Climate Innovation Centers Key Success Factors: • A coordinated and holistic approach to innovation • Based on local context, market needs and opportunities • Aggregates existing country initiatives • Leverages public-private partnerships and resources • Networked nationally and internationally facilitating collaboration

The Kenya CIC: Mission, Objectives and Impact Mission To provide an integrated set of services, activities and programs that leverage and expand existing innovation capacity and support the development and scale of climate technology SMEs in Kenya Objectives 1. Providing 5. Facilitating 2. Building 3. Enabling local 4. Identifying and access to flexible access to facilities innovation and regional unlocking new investment that support rapid capacity through collaboration that market mechanisms that technology the delivery of develops and opportunities support design, advice, supports an through access to enterprises at adaptation, assistance and innovation information and varying levels of proto-typing, educational ecosystem in east market innovation and testing and products Africa intelligence scale manufacture Impact Environmental Financial Social  Mitigate 1.5m tons of CO2  Finance over 70 Kenyan climate  Generate over 930 direct jobs and  Install 90MW of off-grid energy, technology ventures 3700 indirect jobs at a cost of USD  Provide energy access to 1m Kenyans  Achieve a survivability rate of 50% at 3,200 per job  Provide access to clean water to the POC phase and 75% at the seed  Generating over 1,400 jobs for 441,000 Kenyans stage women  Provide better/cheaper food to 43,000  Achieve a 100% leverage ratio for 30%  Create over 24,000 high value jobs at households of investments USD 850 per job over 10 years.  Improve the efficiency of 22,500 small-  Achieve overall 50% leverage of entire scale farms. cost of the center via local cash and in-kind contributions

Feasibility study process Stakeholders Stakeholder identification and outreach Background of 120 Technology prioritization Stakeholders Gaps analysis Entrepreneur Sector mapping: Main issues 23% Workshops 29% Industry Surveys Academia Workshop 1: Brainstorming and networking 2% Model design 14% The following are available R&D to Cleantech SMEs, 12% Proposal entrepreneurs and innovators Finance 6% 12% Follow up: Quantitative analysis 70% 2% Initial/start 60% up/risk 50% capital 40% Workshop 2: Model design and working 30% Facilities to build 20% groups prototypes 10% 0% Information access/dat abases on Develop proposal with key stakeholders technology and government endorsement Implementation

Mapping Market Gaps to Center Business Model Solutions Gaps Needs Technology Access to Finance Finance Advisory Services Company Enabling Environment Market Access to Information Regulatory Access to Facilities Case Study: Market Gap Nuru Light: Founded 2008 A key barrier for Nuru Light has been the limited knowledge of clean tech options among end consumers. For example, in some markets, the company found that most people assumed that kerosene was their only option for lighting. There is therefore need for extensive grassroots marketing to raise awareness on RE options among consumers.

The Kenya CIC: Business Model Advisory Access to Enabling Access to Finance Services Information Ecosystem Facilities Risk Capital Market Policy Support In-sourced Business Training Fund Information Advice and Basic & advanced Computer Proof of Concept Market Intelligence advocacy courses Products Animated Design Seed Investments International Competitive Rapid 3D Seminars and Landscape prototyping Events Collaboration Investment Technology Office & Local bank Facilitation CIC Network networking space training program Information Syndication Brokering of tech Technical Tech quality & Outsourced transfer and joint Training performance data R&D Working capital & consumer finance Product design, & Testing and demo facilitation Finance Center Visibility tech courses Information Initial production Advisory Service Database Fund Packaged services TA Fund

Implementation and Oversight Gov & Donor Partners info Dev Oversight Board CIC Private Sector Partners CIC CIC CIC CIC CIC CIC CIC CIC CIC Management Team Investment Committee Enabling Market Info Access to Facilities Advisory Services Finance Environment

Implementation Timeline

Governance • 7 staff in years 1 Staffing • 12 staff in years 2-5 • 9 seats representing various industries/sectors Oversight Board • Rotation every 2-3 years • Ideally some sponsorship for board seats Investment • 4-5 individuals Committee • Experienced financiers • Non-profit entity: Either trust or private company Incorporation and • Charitable or institutional tax registration possible Ownership • Ownership managed by oversight board

Organizational Structure Front Office Finance Gov & Donor Partners Advisory Services Monitoring & Oversight Board Evaluation Market Info Private Sector Partners Ecosystem Development Access to Facilities CEO Marketing and Communications Investment Committee Officer COO Support Staff Partnership Project Case Investment Development Fellows International Officer Manager Officer Manager Partnerships Partner Research Technology Investment Organizations & analyst Analyst Analyst Industry Facilities & Manufacturing Partners Beneficiaries: Technologists, Entrepreneurs, Start-up firms, SMEs, Industry

Impact, M&E and Risks Environmental Financial Social  Mitigate 1.5m tons of CO2  Finance over 70 Kenyan  Generate over 930 climate technology direct jobs and 3700  Install 90MW of off-grid ventures indirect jobs at a cost of energy, USD 3,200 per job  Achieve a survivability rate  Provide energy access to of 50% at the POC phase  Generating over 1,400 1m Kenyans and 75% at the seed stage jobs for women  Provide access to clean  Achieve a 100% leverage water to 441,000 Kenyans  Create over 24,000 high ratio for 30% of investments value jobs at USD 850  Provide better/cheaper  Achieve overall 50% per job over 10 years. food to 43,000 households leverage of entire cost of the center via local cash  Improve the efficiency of and in-kind contributions 22,500 small-scale farms. M&E Risk Management  Internal databases and data collection  Center Risks: Finance, stakeholder support,  Yearly annual report management and staff, market demand  Focus groups and stakeholder follow-up  Market Risks: Finance, market supply,  Surveys and other quantitative market demand, regulatory environment, measurements where possible. competition

Financial Plan 5-Year Budget: USD 15.2 CIC Budet: Years 1-5 Impleme Facilities ntation $5,000,000 2% 7% $4.12M Staff $3.72M $4,000,000 19% Implementation $2.97M $3.0M Facilities $3,000,000 Investments Programs 13% $2,000,000 Programs $1.40M Staff Investme $1,000,000 nts 59% $0 Y 1 Y 2 Y 3 Y4 Y5 Sustainability Model: 70% costs covered in 10 th year Center Sustainability: 70% at year 10 and 100% of Investments Revenue Model: Almost 75% self-sustaining after 12 years Other opportunities for revenue : $5,000,000 $4,000,000  Carbon Credits CIC Cost  Financial advisory services $3,000,000  Facilities leasing Invesment $2,000,000  Sponsorship cost  Tailored Training $1,000,000 Revenue  Brokered technology transfer $0  Consulting work Year 1 Year 3 Year 5 Year 7 Year 9 Year 11

Appendix

Beneficiaries: Building a Pipeline of New Ventures Country: Kenya • Company: Craftskillz • Entrepreneur: Simon Mwachiro • Clean Technology: Small Wind • Current capacity: 10 to 20 • turbines a year. Employees: Between 3-20 • Barriers Solutions Lack of risk Center could offer start up risk funding. Simon is looking for capital approx USD100k Standardization Center could offer standards for various tech Policy Center could act as an “Industry Association” Business support Center could provide business training, market data etc. Equipment and Center could provide facilities where entrepreneurs could tools prototype their innovations and produce initial products for proving the market.