PROJECT NURTURE: Partnering for Business Opportunity
and Development Impact
Beth Jenkins and Lorin Fries
Written by Beth Jenkins and Lorin Fries
Designed by Alison Beanland
Cover photographs: from left to right, The Coca-Cola Company, Lorin Fries, The Coca-Cola Company
ACKNOWLEDGEMENTS
This report would not have been possible without the collaboration of a large number of stakeholders involved in
Project Nurture, listed on page 46. The authors are deeply grateful for their openness and generosity with their time.
Special thanks go to Jennifer Ragland and Bob Okello (The Coca-Cola Company), Wanjiku Kimamo and Simon Winter
(TechnoServe), and Richard Rogers (Bill & Melinda Gates Foundation) for making introductions, facilitating engagement
with the broader group of stakeholders, and making a productive research visit possible.
The authors would also like to thank their CSR Initiative colleagues Jane Nelson, who provided invaluable experience,
insight, and guidance throughout the research and writing process, and Marli Porth, who provided objective feedback
and copy-editing in the report’s final stages.
© 2012 by the CSR Initiative at the Harvard Kennedy School
The material in this publication is copyrighted. Quoting, copying, and/or reproducing portions or all of this work is
permitted provided the following citation is used:
Jenkins, Beth and Lorin Fries (2013). “Project Nurture: Partnering for Business Opportunity and Development Impact.”
Cambridge, MA: The CSR Initiative at the Harvard Kennedy School.
The views expressed in this paper are those of the authors and do not imply endorsement by the John F. Kennedy
School of Government, or Harvard University.
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 1
Foreword 2
Executive Summary 3
Introduction 8
Drivers 10
Approach 15
Achievements To Date 16
Roles and Responsibilities Along the Value Chain 18
Partnership Operating and Governance Structures 27
Monitoring and Evaluation 28
Next Steps 29
Lessons Learned 32
Conclusion 44
Appendices 45
Project Nurture Mobilization Timeline 45
Stakeholders Consulted 46
Endnotes 47
PROJECT NURTURE: Partnering for Business Opportunity and
Development Impact
2 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
D
evelopment challenges such as tackling poverty
and unemployment, improving food, water and
energy security, increasing access to education,
health care and nutrition, and adapting to climate
change are notoriously systemic. They have their roots
in public awareness, regulatory and policy frameworks,
market dynamics, institutional capacity, infrastructure,
social and cultural norms, and many other factors that
shape people’s incentives and drive their behavior. And
behind each of these factors is a set of interconnected,
interdependent stakeholders.
The development community increasingly recognizes
the private sector as a crucial partner in helping to
address these challenges. New technologies, products
and services, and more inclusive business models are
helping to improve livelihoods and quality of life for
millions of low-income households while at the same
time improving the efficiency of natural resource use
and decreasing environmental degradation. Yet, with a
few notable exceptions such as mobile banking, most
of these market-based solutions have not achieved
business growth and development impact at scale.
Many are impeded by a combination of market
failures, governance gaps, insufficient financing and
inadequate individual and institutional capacity. There
is an enormous need for more collaborative solutions
that leverage the combined resources and capabilities
of business, government and civil society to overcome
these barriers.
In this context, the CSR Initiative at the Harvard
Kennedy School has undertaken research on the
different strategies and structures that companies
are using to strengthen the ecosystems around their
inclusive business models. We have looked at three
approaches that can help overcome barriers to scaling
these business models:
sæ 0RIVATEæINITIATIVEæBYæANæINDIVIDUALæCOMPANYæALONGæ
its own value chain;
sæ 0ROJECTBASEDæALLIANCESæBETWEENæAæCOMPANYæANDæONEæ
or more other organizations; and
sæ 0LATFORMSæTHATæFORMALLYæLINKæPOTENTIALLYæLARGEæ
networks of players for a common purpose.
These structures are complementary and companies
often use them in combination, either sequentially
or simultaneously. The following case study looks
ATæ Aæ PROJECTBASEDæ ALLIANCEæ AMONGæ 4HEæ #OCA#OLAæ
Company, the Bill & Melinda Gates Foundation, and
TechnoServe intended to bring more than 50,000
smallholder mango and passion fruit farmers in Kenya
and Uganda into the Company’s value chain – and to
catalyze private initiative by the Company to sustain
and replicate those linkages in Kenya, Uganda, and
around the world.
7HILEæ0ROJECTæ.URTUREæWILLæNOTæCONCLUDEæUNTILææ
we believe that the partnership already offers a rich set
of lessons learned for building inclusive and sustainable
value chains and for building complex partnerships. It
also offers a model with the potential to be adapted in
other countries and for other commodities. Adaptation
is already underway or under consideration in several
places within the Coca-Cola system.
3INCEæITæ WASæ FOUNDEDæ INæ æ THEæ #32æ )NITIATIVEæATæ
the Harvard Kennedy School has worked to bridge
theory and practice in the field of multi-stakeholder
partnership. This case is part of a series focused on
collaboration between business and other sectors to
drive systemic change. Our goal is to learn in “real
time” how a new generation of collaborative initiatives
designed for systemic change and scale are mobilized,
and how they work. We hope others will benefit
from the experiences of these initiatives and be able
to accelerate their own progress in developing models
that achieve both business benefit and development
impact through tackling some of the world’s most
pressing development challenges.
Jane Nelson
Director, CSR Initiative
Mossavar-Rahmani Center for Business and Government
Harvard Kennedy School
Foreword
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 3
W
here business and poverty alleviation were
once considered separate domains, there is
now growing consensus that the private sector
is central to development. The private sector not only
fuels economic growth, but also plays a critical role in
making growth more inclusive – by engaging the poor
as producers, distributors, retailers, and consumers in
corporate business models and value chains. However,
companies often find inclusive business models and
value chains challenging to develop, due to sparse
information about supplier capabilities and consumer
preferences, low levels of education and skills, limited
access to financial services, inadequate physical
infrastructure, or ill-suited regulation. Stakeholders
in government, the donor community, and civil
society have comparative advantages in addressing
some of these challenges, and as a result, cross-sector
partnership is proving to be an important strategy.
This case study describes one such partnership.
About Project Nurture
,AUNCHEDæ INæ EARLYæ æ 0ROJECTæ .URTUREæ ISæ Aæ æ
million partnership among The Coca-Cola Company,
the Bill & Melinda Gates Foundation, and the
international non-profit organization TechnoServe.
It intends to double the fruit incomes of more than
50,000 smallholder farmers in Kenya and Uganda by
æ BYæ BUILDINGæ INCLUSIVEæ MANGOæ ANDæ PASSIONæ FRUITæ
VALUEæ CHAINSæ 0ROJECTæ .URTURESæ CATALYTICæ APPROACHæ
combines core business investment and philanthropy
to strengthen the entire mango and passion fruit
value chains in an integrated manner, ensuring that
all the players have the capabilities and commercial
incentives to continue doing business together even
AFTERæ THEæ PROJECTæ ENDSæ næ GENERATINGæ BUSINESSæ BENEFITSæ
and development impacts that can be sustained.
Drivers for the Project Nurture Partnership
The Coca-Cola Company, the Bill & Melinda Gates
Foundation, and TechnoServe have unique drivers
for coming together around a common goal: to bring
smallholder farmers into inclusive and sustainable value
chains. The Coca-Cola Company sought to secure new
SOURCESæOFæSUPPLYæFORæITSæGROWINGæJUICEæBUSINESSæWHICHæ
ISæSETæTOæTRIPLEæBYææ,OCALæSOURCESæOFæSUPPLYæWOULDæ
enable it to reduce import costs and keep its products
more affordable for consumers. The Gates Foundation’s
PRIMARYæ OBJECTIVEæ WASæ TOæ HELPæ PEOPLEæ INæ DEVELOPINGæ
countries overcome poverty and hunger, consistent
WITHæ ITSæ MISSIONæ 0ARTNERINGæ WITHæ 4HEæ #OCA#OLAæ
Company presented an opportunity to help catalyze
a sustainable, replicable model with the potential to
reach – and impact – millions of smallholder farmers.
TechnoServe, which helps hundreds of thousands of
smallholder farmers sell millions of dollars worth of
produce in developing countries around the world,
saw partnering with the Company as an opportunity
to target its work for even greater impact, making sure
SMALLHOLDERSæ RECEIVEDæ JUSTæ THEæ RIGHTæ SKILLSæ RESOURCESæ
and connections they needed to become valuable,
long-term players in a high-growth value chain.
Project Nurture Approach
)Næ 0ROJECTæ .URTUREæ4HEæ #OCA#OLAæ #OMPANYæ INVESTSæ
in product development, marketing, supplier
relationships, and procurement systems to satisfy its
customers and thereby create a market for the fruit that
smallholder farmers produce. Minute Maid Mango,
LAUNCHEDæINæ3EPTEMBERææINæ+ENYAæANDæ-AYææ
in Uganda, was the first product to use locally sourced
JUICEæASæAæRESULTæOFæTHEæPROJECTæ!DDITIONALæCOREæBUSINESSæ
investment from the Company and philanthropic
funding from the Gates Foundation cover the cost of
farmer capacity development, provided by TechnoServe.
TechnoServe works to strengthen farmers’ agricultural
and business skills and helps them organize into
business groups to access inputs and finance, facilitate
transactions with buyers, and improve their bargaining
power. At the same time, TechnoServe connects farmers
with companies offering quality inputs and credit and
with buyers in three primary markets: fruit processing,
domestic and regional fresh fruit sales, and fresh fruit
exports. As a result, a complex array of partners beyond
The Coca-Cola Company, the Gates Foundation,
ANDæ 4ECHNO3ERVEæ AREæ INVOLVEDæ INæ 0ROJECTæ .URTUREæ
including banks, agricultural research institutes, fruit
processors and exporters, and government ministries.
The idea is not for the three founding partners to
Executive Summary
4 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Executive Summary
do everything themselves, but rather to identify and
engage players with comparative advantages in the
value chain, helping those players build the business
case and capacity they need to do business together
EVENæAFTERæTHEæPROJECTæENDSæ)NæTHISæWAYæTHEæFOUNDINGæ
partners aim to build a business model and broader
enabling environment that will continue creating value
long into the future.
Project Nurture Achievements To Date
2ESULTSæ TOæ DATEæ SUGGESTæ THATæ 0ROJECTæ .URTUREæ ISæ
contributing to business and development goals that
AREæ INEXTRICABLYæ LINKEDæ 0ROFITABLEæ BUSINESSæ ACTIVITYæ
creates economic opportunity for farmers, offering
them additional income and the stability, resilience,
health, education, and other benefits that come with
it. Those benefits, in turn, enable farmers to supply
high-quality fruit on a consistent basis, contributing to
supply chain security and business growth.
Objectives Achievements To Date
1. Double the fruit income
for over 50,000 smallhold-
er mango and passion
fruit farmers through
improved production and
supply chain linkages
t.PSFUIBOGBSNFSTJOBQQSPYJNBUFMZ1SPEVDFS#VTJOFTT(SPVQTQBSUJDJQBUFJOUIF
program, 14,000 of them women
t5ISPVHIBDPNCJOBUJPOPGJODSFBTFEWPMVNFTBMFTBOEJNQSPWFERVBMJUZQBSUJDJQBUJOHGBSNFST
annual fruit incomes have, on average, already more than doubled
2. Increase local supply of
juice and improve local
processing infrastructure
to allow for the
development of
The Coca-Cola Company’s
local juice business
t.JOVUF.BJE.BOHPUIFmSTUQSPEVDUUPVTFMPDBMMZTPVSDFEKVJDFBTBSFTVMUPG1SPKFDU/VSUVSF
was launched in September 2010 in Kenya and May 2011 in Uganda
t,FOZBCBTFE4VOOZ1SPDFTTPST-UEBOE"MMGSVJU&1;-UEXFSFBQQSPWFEUPTVQQMZNBOHPQVSFF
to Coca-Cola’s bottling partners
t5IFTFUXPQSPDFTTPSTOPXTVQQMZPGUIFNBOHPQVSFFGPS.JOVUF.BJE.BOHPJO,FOZB
6HBOEBUIF%FNPDSBUJD3FQVCMJDPG$POHP;JNCBCXFBOE4PVUI"GSJDB
3. Link project farmers
to diverse profitable
markets, including fresh
domestic and fresh
export markets
t1SPKFDUGBSNFSTBSFOPXTFMMJOHJOUPUISFFNBSLFUDIBOOFMTGSVJUQSPDFTTJOHGSFTIEPNFTUJDBOE
GSFTIFYQPSUBOESFTQFDUJWFMZBTPG0DUPCFS
t7PMVNFTBMFTPGNBOHPCZQBSUJDJQBUJOHGBSNFSTJO,FOZBBOE6HBOEBIBWFNPSFUIBOEPVCMFE
volume sales of passion fruit in Uganda have also more than doubled
t.PSFUIBONFUSJDUPOTPGGSFTIGSVJUGSPN1SPKFDU/VSUVSFIBWFCFFOIBSWFTUFEBOETPME
t'BSNHBUFQSJDFTGPSQBTTJPOGSVJUJO,FOZBBOEGPSNBOHPBOEQBTTJPOGSVJUJO6HBOEBIBWF
increased
4. Increase farmer access
to financial services and
help organize access
to farm inputs for their
crops
tMPBOTXPSUIIBWFCFFOEJTCVSTFEUPmOBODFQBTTJPOGSVJUGBSNJOHTUBSUVQDPTUT
such as seeds, seedlings, poles, and wires
t4FWFSBMQSJWBUFOVSTFSJFTIBWFCFFOTVQQPSUFEUPJODSFBTFUIFRVBOUJUZBOERVBMJUZPGQBTTJPO
fruit seedlings available to farmers
5. Create a successful
business model that can
be replicated in other
markets
t.JOVUF.BJE.BOHPJTQSPmUBCMF
t5IF$PDB$PMB$PNQBOZFYQFDUTUPSFDPVQJUTJOWFTUNFOUJO1SPKFDU/VSUVSFTFWFSBMUJNFTPWFS
in the next 3-5 years through cost optimization and replication in other countries
t5IF$PNQBOZIBTJNQMFNFOUFELFZFMFNFOUTPGUIFNPEFMJO)BJUJBOE*OEJBGVSUIFSSFQMJDBUJPO
JTVOEFSDPOTJEFSBUJPOJO;JNCBCXF/JHFSJBBOEPS(IBOB
t5FDIOP4FSWFBMTPQMBOTUPSFQMJDBUFUIFNPEFMJOGVUVSFQBSUOFSTIJQTXJUINVMUJOBUJPOBM
companies, local businesses, and governments
t)BWJOHTVQQPSUFETFWFSBMTVDIQBSUOFSTIJQTGPSIJHIFSWBMVFDBTIDSPQTUIFGPVOEBUJPOJTOPX
leaving replication to the private sector and governments, and looking to establish similar
additional partnerships for widely-grown staple crops such as rice, maize, and cassava
Executive Summary
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 5
Lessons from the Project Nurture Experience
0ROJECTæ.URTUREæISæAæRICHæSOURCEæOFæLESSONSæLEARNEDæFORæTHEæ
partners themselves and for other companies, donors,
NGOs, and governments interested in partnering to
build inclusive value chains. These lessons relate to
building inclusive value chains, building cross-sector
partnerships, and building the capacity for scale. The
key take-aways are:
When building inclusive value chains… design for
sustainability: The comparative advantage of business
as a development impact driver is the potential to be
self-sustaining. But unleashing this potential requires
careful attention to the incentives and capabilities of
each player in the value chain and in the enabling
environment. The role of government in creating the
enabling environment is essential.
When building cross-sector partnerships… manage
complexity: Collaboration creates value by channeling
differences in perspective, incentives, and capabilities
toward common goals. These differences exist among
partner organizations and also within them. Internal
complexity is often overlooked – yet it is an important
factor in making the business case, executing smoothly,
and replicating successful models.
When building the capacity for scale… make needed
awareness and capabilities mainstream: While cross-
sector partnerships to develop inclusive value chains
are emerging with increasing frequency, they are still
a niche phenomenon. Many more are needed to meet
today’s business and development goals. This will
require raising awareness, changing mindsets, and
putting capabilities and systems in place within and
across would-be partner organizations.
BUILDING INCLUSIVE VALUE CHAINS: Designing for Sustainability
¯ Make sure every player in the value chain is profitable. A value chain is only as strong as its weakest link.
0ROJECTæ.URTUREæHASæTHEREFOREæTAKENæANæINTEGRATEDæAPPROACHæWORKINGæTOæMAKEæSUREæEVERYæPLAYERæHASæTHEæ
assets and capabilities they need to be profitable – from smallholder farmers, to banks, to traders, to
buyers, to processors supplying Coca-Cola bottlers, to bottlers themselves. The Coca-Cola Company also
had to develop a profitable product: Minute Maid Mango.
¯ Strengthen the enabling environment. It can be equally necessary to strengthen the enabling environment
in which the value chain is embedded – including access to knowledge, skills, technology, financial
SERVICESæANDæINFRASTRUCTUREæASæWELLæASæREGULATIONæANDæEFFECTIVEæPUBLICæADMINISTRATIONæ)Næ0ROJECTæ.URTUREæ
TechnoServe has played a primary role in strengthening the enabling environment, as a provider of market
information and agricultural and business skills training and as an intermediary bringing in other partners
with critical roles to play. However, the government role is also critical, and could be expanded.
¯ Build institutional capacity and incentives to sustain impact into the long term. There is some concern that
WHENæ0ROJECTæ.URTUREæENDSæTHEREæWILLæBEæGAPSæINæAREASæWHEREæ4ECHNO3ERVEæHASæPLAYEDæTHEæROLEæOFæSERVICEæ
provider – especially of agricultural and business skills training for farmers, who are still in the process of
IMPROVINGæTHEIRæCROPSæANDæINæSOMEæCASESæHAVEæJUSTæBEGUNæTOæGROWæNEWæIMPROVEDæVARIETIESæ!SæAæRESULTæTHEæ
organization is working to ensure that other partners, including processors, exporters, and government
agencies, have the capabilities and incentives to pick up where it leaves off.
¯ Consider how best to engage government. 0ROJECTæ .URTUREæ HASæ ENGAGEDæ THEæ +ENYANæ ANDæ 5GANDANæ
governments at several levels, recognizing the roles they have to play in sustaining, scaling, and potentially
6 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
replicating the model and its impact. The partners believe there would be value in engaging governments
even earlier and more fully going forward, understanding their priorities for the sector; determining how
the partnership could drive progress; and identifying actions that governments could undertake as full
founding partners – assuming responsibility, sharing risk, and gaining value in return.
BUILDING CROSSSECTOR PARTNERSHIPS: Managing Complexity
¯ Build a clear and comprehensive business case. For any company considering a multi-year, multi-million
dollar commitment, the business case is essential. It is also essential for donors and NGOs that seek to
catalyze sustainable, scalable business models that continue generating development impact long after
their partnership has ended. Donors and NGOs like the Gates Foundation and TechnoServe may even
see the business case in more strictly financial terms than a company – which may also take reputational
benefits like positive publicity, leadership, and good stakeholder relations into account.
¯ Align objectives not only among partners, but also within partners. Because today’s global organizations
AREæSOæCOMPLEXæPARTNERSHIPæCANæINVOLVEæJUSTæASæMUCHæINTERNALæCOLLABORATIONæASæEXTERNALæCOLLABORATIONæ)Næ
#OCA#OLASæCASEæIMPLEMENTINGæ0ROJECTæ.URTUREæMEANTæGETTINGæITSæ#ENTRALæ%ASTææ7ESTæ!FRICAæ"USINESSæ
5NITæ'LOBALæ*UICEæ#ENTERæ'ROVEææ'LASSæ4RADINGæSUBSIDIARYæ2ESEARCHææ)NNOVATIONæUNITæANDæ'LOBALæ
0UBLICæ!FFAIRSæANDæ#OMMUNICATIONSæALLæTOæWORKæTOGETHERæ3TAFFæFROMæTHESEæGROUPSæCAMEæTOæTHEæTABLEæWITHæ
different backgrounds, perspectives, interests, and incentives, and aligning them took time.
¯ Design efficient, effective partnership operating and governance structures.æ 0ROJECTæ .URTURESæ #OREæ
/PERATINGæ 4EAMæ ANDæ 3TEERINGæ #OMMITTEEæ HAVEæ BEENæ CRITICALæ INæ ALIGNINGæ OBJECTIVESæ ANDæ CHANNELINGæ
organizational complexity – among and within partners – in ways that optimize the value of collaboration.
They established regular opportunities for individuals in different departments and different organizations
TOæINTERACTæUNDERSTANDæONEæANOTHERæFACEæCHALLENGESæTOGETHERæJOINTLYæPROBLEMSOLVEæDEMONSTRATEæFOLLOW
through, and build trust. These structures have also facilitated learning and course correction.
¯ Proactively manage the expectations that publicity creates. 0UBLICITYæCANæRAISEæEXPECTATIONSæTHATæTAKEæSTAFFæ
time to manage, but it can also be good motivation for creative thinking and problem-solving when a
PILOTæPROJECTæHITSæTHEæINEVITABLEæBUMPSæINæTHEæROADæ0ROJECTæ.URTUREæHASæHITæSEVERALænæANDæTOæMEETæTHEIRæ
public commitments, the partners have doubled down and found solutions, and remain on track to meet
their targets. The pros and cons of publicity can be balanced, first and foremost by anticipating and
planning for them. A dedicated budget and staged approach to communication can help.
¯ Recognize and facilitate the role exceptional individuals play in getting pilot projects off the ground.æ0ILOTæ
PROJECTSæAREæNOTæGUARANTEEDæTOæSUCCEEDæ#OMPANYæSTAFFæASSIGNEDæSPECIFICæROLESæANDæACCOUNTABLEæFORæSPECIFICæ
results, can perceive them as extra work – or, worse, extra opportunity to fail. To get pilots off the ground,
senior leaders must be thinking about the long-term goals at stake and creating the space for staff to
PURSUEæTHEMæ)Næ0ROJECTæ.URTUREæWORKINGLEVELæCHAMPIONSæANDæSTRONGæPARTNERSæALSOæPLAYEDæCRITICALæROLESæ
even helping to bring senior leadership on board.
¯ Put deliberate strategies and systems in place to bring successful pilots to scale. While exceptional individuals
play critical roles getting pilots off the ground, today’s complex, decentralized organizations need deliberate
Executive Summary
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 7
strategies and systems to bring successful pilots to scale – through growth and mainstreaming in their
countries of origin and through replication in other countries. The Coca-Cola Company is developing
SEVERALæSUCHæSYSTEMSæINCLUDINGæANæONGOINGæSUPPLIERæSURVEYæINTERNALæ''æSTAFFæCOMMUNICATIONSæAæ*UICEæ
University immersion program, and its annual Bottler Conference.
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
¯ Raise awareness of hybrid strategies that create business opportunity and development impact. Strategies
LIKEæ 0ROJECTæ .URTURESæ AREæ STILLæ NEWæ ANDæ MANYæ BUSINESSæ EXECUTIVESæ PHILANTHROPISTSæ .'/æ STAFFæ ANDæ
government officials have had little exposure. They might also be skeptical about one of the two primary
approaches hybrid strategies combine: philanthropy and profit-making business activity. While more and
more organizations have individuals or departments working on hybrid strategies, most need to invest in
raising awareness of the potential more broadly before those strategies can go mainstream.
¯ Break down sector stereotypes. Business, government, and civil society have preconceived ideas about each
other, which affect their appetite and aptitude for partnership. Yet previously neat distinctions have started
to break down as organizations experiment with hybrid strategies and hire staff with hybrid expertise. In
0ROJECTæ.URTUREæTHEæ'ATESæ&OUNDATIONSæPROGRAMæOFFICERæWORKEDæFORæ-C+INSEYæANDæ+RAFTæ4E C HN O 3E R V ES æ
PROJECTæDIRECTORæCAMEæFROMæBANKINGæANDæONEæOFæTHEæEARLYæCHAMPIONSæFROMæ4HEæ#OCA#OLAæ#OMPANYæCAMEæ
from a development NGO. To maximize the opportunity to create value through collaboration, would-be
partners must ensure that perceptions of and within their organizations catch up to reality.
¯ Develop a deeper understanding of the core business contribution to cross-sector partnership. )Næ0ROJECTæ
.URTUREæ4HEæ #OCA#OLAæ #OMPANYSæ CONTRIBUTIONæ ISæ OFTENæ DESCRIBEDæ ASæ æ MILLIONæ INæ CASHæ ANDæ æ
million in kind. This description doesn’t convey that the Company has had to conduct R&D, develop a
new product, identify and certify suppliers of the key ingredient, negotiate and manage supplier contracts,
conduct ongoing quality testing, market the product to consumers, and work with its bottling partners
to manufacture, distribute, and sell it. Understanding the core business contribution more fully would
enable all partners to design more targeted interventions, monitor and stage them appropriately, and
assemble the right teams.
¯ Invest in professional partnering capabilities.æ 0ROJECTæ .URTUREæ ISæ Aæ HIGHLYæ COMPLEXæ PARTNERSHIPæ ANDæ ITæ
has made significant progress thanks to highly professional management from TechnoServe, the Gates
Foundation, and The Coca-Cola Company. This is not to say a considerable amount of “learning by
doing” was not involved. With partnership an increasingly important mechanism for achieving individual
organizational and broader societal goals, it is time for companies, donors, NGOs, and governments to
invest in professional partnering capabilities ranging from strategy to talent to organizational structures.
¯ Build partnership brokering platforms. 3COPINGæANDæBROKERINGæCOMPLEXæPARTNERSHIPSæLIKEæ0ROJECTæ.URTUREæISæ
difficult and time-consuming. The Gates Foundation, TechnoServe, and The Coca-Cola Company have
done it successfully, but many more partnerships – involving many more companies, donors, NGOs,
and governments – are needed to meet global business and development goals. Three emerging models
offer systematic ways of making it happen: partnership brokering services, regular forums for cross-sector
dialogue, and partnership brokering platforms.
8 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Where business and poverty alleviation were once
considered separate domains, there is now growing
consensus that “private firms are at the heart of the
development process.”
æ"YæDRIVINGæJOBæCREATIONæSKILLæ
building, technology transfer, institutional capacity,
and the construction of physical infrastructure; by
generating tax revenues for governments; and by
delivering products and services that people need
to be productive, private sector firms fuel economic
growth.
æ
By engaging the poor in their business
models and value chains – as producers, distributors,
retailers, and consumers – firms play a critical role
in making growth more inclusive. An emerging body
of research by the International Monetary Fund
and others suggests that inclusive growth is more
sustainable and leads to greater gains over time.
Inclusive business models and value chains offer
products, services, jobs, and small business
opportunities to the poor, profitably. Firms in a range
of industries are finding commercially viable ways
of doing business in low-income market segments.
For example, food, beverage, and consumer products
companies are selling to low-income consumers by
distributing through small businesses and micro-
entrepreneurs. Mobile network operators are offering
users the option to buy very small amounts of airtime
on a “pay-as-you-go” basis, as their cash flows permit.
Traders and processors of agricultural commodities
are buying from smallholder farmers to expand and
diversify their supplies. Microfinance institutions –
and some large commercial banks – are extending
small loans to low-income borrowers using alternative
forms of due diligence and risk management.
Inclusive business models and value chains like these
are powerful engines of development impact. They
generate incomes and access to products and services
at levels of quality and affordability that were often
unavailable before. These impacts, in turn, generate
multiplier effects. For example, the mother who
supplements the family income starting a small-scale
distribution business can feed her children more
nutritious food and send them to school, helping
them tap into better opportunities than their parents
had. Similarly, the farmer who can get a malaria
diagnosis and prescription in his own village is more
likely to get treated and back to full productivity faster,
reducing the risk that his illness turns into a serious
financial setback for his family. Furthermore, in
contrast with traditional philanthropic and aid-based
development interventions, inclusive business models
and value chains are financially self-sustaining – with
the potential to reach scale and inspire replication.
Inclusive business models and value chains are also
important sources of business opportunity. As the
International Finance Corporation points out, “The
world’s leading companies expect emerging markets
to generate 70% of global economic growth over the
next few years. Those that benefit the most will be the
ones that turn underserved populations into dynamic
consumer markets and diverse new sources of supply.
Companies with inclusive business models are doing
both. And in the process, they are developing product,
service, and business model innovations with the
potential to tip the scales of competitive advantage in
more established markets as well.”
However, developing inclusive business models and
value chains is often a real challenge. Relatively few
companies have managed to realize the potential
to do so at scale.
5,6
The challenges include sparse
information about supplier capabilities and consumer
preferences, low levels of education and skills, limited
access to financial services, and inadequate physical
infrastructure. Regulation is another challenge: while
often intended to protect consumers and enhance
social welfare, it can limit innovation or inflate cost
structures such that companies struggle to break
even.
7
While companies can address – or work around – many
of these challenges, others are beyond their capacity
or authority to tackle. Other stakeholders have roles to
play in whether or not inclusive business models and
value chains succeed and go to scale. For example:
8
Introduction
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 9
sæ Governments are the only ones who can make
ANDæ ADJUSTæ POLICYæ REGULATIONæ ANDæ TAXæ ANDæ TARIFFæ
structures. The public sector also plays a significant
role in providing or shaping the markets for critical
services like health care, education, energy, water,
and sanitation that businesses, their consumers, and
the labor force need to operate at peak productivity.
sæ Donors can invest in building the knowledge
and skills of smallholder farmers and micro-
entrepreneurs; conduct research on low-income
market dynamics, opportunities, and constraints;
provide catalytic financing; and advise governments
on ways to improve market conditions.
sæ Civil society groups can train smallholder farmers
and micro-entrepreneurs; help raise consumer
awareness and trust; change social and cultural
norms; and inform government policy-making.
sæ Academic and other research institutions can do
research that will ultimately benefit all players in
a market; analyze what works in the business and
policy spheres; and disseminate findings.
sæ The media and other trendsetters can raise awareness;
influence social and cultural norms; and create
momentum for change.
Because governments, donors, civil society groups,
and other stakeholders can play such critical and
complementary roles, cross-sector partnership is
proving to be an important strategy for overcoming
the challenges involved in building inclusive business
models and value chains. 0ARTNERSHIPæ COMBINESæ ANDæ
leverages the incentives, resources, and capabilities
of different stakeholders to address bottlenecks to
inclusive business success. Leading organizations across
business, government, and civil society – from the
'æ5NITEDæ.ATIONSæANDæ7ORLDæ"ANKæ'ROUPæTOæTHEæ
7ORLDæ %CONOMICæ &ORUMæ #LINTONæ 'LOBALæ )NITIATIVEæ
and other business leadership networks – are calling
for more transformational partnerships to unlock
business opportunity and development impact at scale.
Cross-sector partnership practice is relatively new
and evolving, especially when the purpose is to
develop a profitable inclusive business model. There
are underlying philosophical, technical, and legal
QUESTIONSæ 0HILOSOPHICALLYæ THEREæ ISæ STILLæ Aæ TENSIONæ
between the profit motive that drives business and the
idealism that drives many development stakeholders.
Companies need to show financial returns on their
investments, but some stakeholders are uncomfortable
with the idea of helping them to do so. Others are
comfortable helping companies generate financial
returns as a means to an end, but need to prove that
THEæDEVELOPMENTæRETURNSæJUSTIFYæTHEæEFFORTæ4ECHNICALLYæ
and legally, questions abound. For example, what is the
best way to match levels of investment from a company
and its development partners with expected levels of
financial and development return? Is it possible to
prove that building inclusive business models is more
effective than other development interventions? What
kind of information do companies and development
partners need to share to do create such models
successfully? What are the best ways of protecting
each partner’s individual interests? What are the
tax implications of financial flows from a company
to a civil society group when that money cannot be
considered a donation?
The purpose of this case study is to understand how one
inclusive value chain development partnership works,
what it has achieved, and what insight it offers – both
for the partners themselves and for other companies,
donors, governments, and civil society groups seeking
to start and scale inclusive business models and value
chains. This study is part of a Harvard Kennedy
School CSR Initiative research stream on systemic
approaches to creating business opportunity and
development impact at scale. An initial framing paper,
“Tackling Barriers to Scale: From Inclusive Business
Models to Inclusive Business Ecosystems,” was published
INæ3EPTEMBERææ4HISæCASEæSTUDYæISæONEæOFæSEVERALæ
subsequently conducted to generate knowledge and
provide practical guidance on what such systemic
approaches look like and how to structure and
implement them.
10 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
A
Sæ INæ ALLæ STRATEGICæ PARTNERSHIPSæ INæ 0ROJECTæ
Nurture, The Coca-Cola Company, the Bill &
Melinda Gates Foundation, and TechnoServe
have unique drivers bringing them together around a
common goal: to strengthen smallholder farmers and
bring them into sustainable and inclusive value chains.
The Coca-Cola Company (The Company) is the world’s
largest beverage company, with more than 500 sparkling
and still beverage brands that reach consumers in more
THANææCOUNTRIESæATæAæRATEæOFææBILLIONæSERVINGSæAæ
day. Together with its bottling partners, the Company
ISæONEæOFæTHEææLARGESTæPRIVATEæEMPLOYERSæWORLDWIDEæ
with more than 700,000 system employees. The
Company is also committed to building sustainable
communities through initiatives that reduce its
environmental footprint; promote active, healthy
living; create a safe, inclusive work environment; and
enhance economic development in the communities
where it operates.
¯ The Coca-Cola Company aims to triple the size of its
global juice business by 2020
)Næ LATEæ æ 4HEæ #OCA#OLAæ #OMPANYæ LAIDæ OUTæ Aæ
æ6ISIONæ ANDæ2OADMAPæFORæ SUCCESSæOVERæTHEæNEXTæ
æYEARSæ4HATæVISIONæISæMADEæUPæOFæGOALSæCOVERINGæTHEæ
Company’s profit, people, portfolio, partners, planet,
and productivity. One of those goals is to double the
size of the business, by servings and by revenue, by the
YEARææ
&ORæTHEæ#OMPANYSæJUICEæBUSINESSæTHEæGOALæISæTOæTRIPLEæ
the size of the business, already the largest in the world.
&OURæ OFæ4HEæ #OCA#OLAæ #OMPANYSæ æ BILLIONDOLLARæ
BRANDSæAREæJUICESæ-INUTEæ-AIDæ-INUTEæ-AIDæ0ULPYæ
3IMPLYæANDæ$ELæ6ALLEæ)NæSOMEæREGIONSæTHEæ#OMPANYSæ
GOALSæ FORæ GROWINGæTHEæ JUICEæ BUSINESSæ AREæEVENæ HIGHERæ
&ORæ EXAMPLEæ INæ #ENTRALæ %ASTæ æ 7ESTæ!FRICAæ WHEREæ
JUICEæCONSUMPTIONæISæCURRENTLYæLOWæTHEæGOALæISæTOæGROWæ
BYæAæFACTORæOFæAPPROXIMATELYææBYææ
Drivers
Figure 1. Drivers for the Project Nurture Partnership
Coca-Cola is
committed to
corporate citizenship
and development
goals
Coca-Cola aims
to triple the size of
its global juice
business by 2020
Coca-Cola Central, East
& West Africa seeks to
develop local sources of
supply to reduce juice
import costs and manage
product affordability
Coca-Cola needs
to secure sustainable
supplies of fruit for
a growing juice
business
The Gates Foundation
invests in sustainable
agricultural productivity
growth to help people
in developing countries
overcome poverty
and hunger
TechnoServe seeks to
increase its impact on
smallholder farmers by
partnering with companies
to build inclusive and
sustainable value chains
TechnoServe seeks
to diversify its
funding base
The Foundation’s
approach is to provide
catalytic funding that
can help farmers increase
productivity and improve
access to markets
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 11
4Oæ DRIVEæ PROGRESSæTOWARDæITSæ JUICEæ GROWTHæ GOALSæ4HEæ
Coca-Cola Company established a new department,
THEæ 'LOBALæ *UICEæ #ENTERæ INæ *ANUARYæ æ 4HEæ
Global Juice Center coordinates procurement of
key ingredients, develops brand strategy, rolls out
INTEGRATEDæ GLOBALæ MARKETINGæ CAMPAIGNSæ BUILDSæ JUICEæ
blending capabilities worldwide, trains teams through
its Juice University, and creates processes to scale
successful innovations.
¯ To meet the needs of its growing juice business,
the Company needs to secure sustainable supplies of
agricultural commodities
Agricultural ingredients are essential to The Coca-
Cola Company. Half of what the Company buys
is agriculture-related: it is one of the world’s largest
purchasers of sugar and in the top ten for coffee, tea and
citrus. These agricultural ingredients create the unique
qualities and flavors of The Coca-Cola Company’s
brands. Many of the beverage categories growing most
rapidly are those that rely more heavily on agricultural
commodities. However, the Company does not own
or operate farms. Instead, agricultural commodities
make their way into its beverages through complex
value chains.
4HEæ #OCA#OLAæ #OMPANYSæ JUICEæ VALUEæ CHAINæ BEGINSæ
at the farm, where growers sell fruit to independent
processing companies directly or through traders.
4HOSEæPROCESSORSæINæTURNæSELLæFRUITæJUICEæANDæPUREEæTOæ
The Coca-Cola Company’s bottling partners – most
of which are also independent companies. The Coca-
#OLAæ#OMPANYæPROVIDESæITSæBOTTLINGæPARTNERSæWITHæJUICEæ
recipes, branding, and consumer brand marketing
support. Bottlers then manufacture, bottle, and sell
THEæ#OMPANYSæJUICEæPRODUCTSæTOæCUSTOMERSæTHATæSERVEæ
end consumers, ranging from large supermarkets,
restaurants, and hotel chains to small shops and kiosks.
/FTENæ ITSæ JUICEæ PRODUCTSæ AREæ DISTRIBUTEDæ THROUGHæ
independent distributors. The Coca-Cola Company
and its bottlers comprise “the Coca-Cola system.”
Because The Coca-Cola Company’s bottling partners
AREæ BUYERSæ NOTæ GROWERSæ THEYæ AREæ SUBJECTæ TOæ GLOBALæ
fruit commodity prices, which are reflected in the
PRICESæOFæTHEæPROCESSEDæFRUITæJUICEæANDæPUREEæTHEYæBUYæ
!Sæ THEæ #OMPANYSæ JUICEæ BUSINESSæ GROWSæ ITæ INCREASESæ
global demand for fruit, intensifying competition and
pushing up prices. It is thus a strategic imperative for
The Coca-Cola Company to ensure that global fruit
supplies rise in step with demand, keeping prices
steady. To do this, the Global Juice Center established
Drivers for the Project Nurture Partnership
Figure 2. Generic Representation of the Coca-Cola Juice Value Chain
Traders
Processors Bottlers Distributors
Customers
(e.g. retailers)
End
Consumers
The Coca-Cola
Company
Grove 2
Glass Trading
Growers
“The Coca-Cola System”
Access to
supply
FRUIT JUICE
PURÉE
PRODUCT PRODUCT PRODUCT
Juice recipes, branding,
consumer brand marketing
Help meeting The Coca-Cola
Company standards
12 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Aæ PROCUREMENTæ ARMæ 'ROVEæ æ 'LASSæ4RADINGæ 3ERVICESæ
'MB(æORæ''æAæSUBSIDIARYæBASEDæINæ:URICHæINæLATEæ
æ''æAPPROACHESæTHEæCHALLENGEæBYæWORKINGæWITHæ
processors to meet the stringent quality, phytosanitary,
environmental, and workplace standards of The Coca-
Cola Company
æ
and to reach out to growers to ensure
that greater quantities of the right varieties of fruit are
GROWNæ''æALSOæNEGOTIATESæWITHæPROCESSORSæTOæSUPPLYæ
the Company’s bottlers, aggregating demand across
multiple bottlers to offer large advance contracts and
obtain bulk pricing.
¯ The Coca-Cola Company’s Central, East & West Africa
Business Unit seeks to develop local sources of supply
to reduce juice import costs and manage product
affordability
)Næ THEæ #ENTRALæ %ASTæ æ 7ESTæ !FRICAæ "USINESSæ 5NITæ
#%7!"5æBOTTLERSæCURRENTLYæIMPORTæJUICEæANDæPUREEæ
MADEæWITHæFRUITæFROMæASæFARæAWAYæASæ)NDIAæANDæ%CUADORæ
– at prices that reflect the cost of shipping and import
duties, sometimes through more than one country. Yet
the region is blessed with good growing conditions for
a wide range of fruits, including mango, passion fruit,
ANDæPINEAPPLEæ!SæAæRESULTæ#%7!"5æMADEæAæSTRATEGICæ
DECISIONæ TOæ AIMæ FORæ æ LOCALæ SOURCINGæ FORæ JUICEæ BYæ
ææ
¯ The Coca-Cola Company is also committed to good
corporate citizenship and supporting national and
international development goals
Coca-Cola is the world’s most valuable brand,
with important stakeholder relationships to nurture
and protect at both the regional and global levels.
As a result, the Company is committed to good
corporate citizenship and contributing to national
and international development goals, both because it
is “the right thing to do” and because it makes good
business sense.
Among many core business and
community investment activities, The Coca-Cola
Company participates in the United Nations Global
#OMPACTæ THEæ 7ORLDæ %CONOMICæ &ORUMæ THEæ #LINTONæ
Global Initiative, and other development platforms
and partnerships.
The Bill & Melinda Gates Foundation is a US-based
charitable foundation established by Bill Gates,
founder of Microsoft, and his wife Melinda Gates in
æ 'UIDEDæ BYæ THEæ COREæ BELIEFæ THATæ EVERYæ LIFEæ HASæ
equal value, the Gates Foundation works to help all
people lead healthy, productive lives. In developing
countries, it focuses on improving people’s health and
giving them the chance to lift themselves out of hunger
ANDæ EXTREMEæ POVERTYæ )Tæ HASæ MOREæ THANæ æ BILLIONæ
INæ ASSETSæ ANDæ HASæ GIVENæ æ BILLIONæ INæ GRANTSæ SINCEæ
INCEPTIONæ4HEæ&OUNDATIONSææGIVINGæAMOUNTEDæTOæ
æBILLIONæITæHASæGRANTEESæINæMOREæTHANææCOUNTRIESæ
The Coca-Cola Company is focused on securing sustainable supplies of fruit
and other agricultural commodities. Ingredients like fruits, tea, coffee, and
sugar are core to Coca-Cola’s brands. The Company aims to ensure healthy
and productive farmers and farmlands by working with governments, peer
companies, suppliers and NGO partners. The Company’s approach includes:
t *NQSPWJOHDSPQZJFMETXIJMFQSPUFDUJOHOBUVSBMSFTPVSDFT
t #VJMEJOHPOGBSNMFWFMJOOPWBUJPOUPESJWFTZTUFNJDDIBOHFPOBDSPQCZ
crop basis
t &NQPXFSJOHMPDBMDPNNVOJUJFTBOEXPNFOGBSNFST
t #VJMEJOHJOEVTUSZXJEFDPMMBCPSBUJPO
Cutting across these activities is a focus on mitigating the environmental
impacts of agriculture, particularly water usage – which accounts for
BQQSPYJNBUFMZPGXBUFSXJUIESBXBMTXPSMEXJEF*OUIF$PNQBOZ
began a comprehensive baseline assessment to better understand supply
and demand as well as risks and opportunities for the top 10 agricultural
commodities on which its products and growth strategy depend. This
assessment will lay the foundation for the Company’s agricultural
commodity strategy going forward. The Company is also partnering with
key suppliers to establish baselines and influence producers to improve the
sustainability of crop production, focusing its initial efforts on sugarcane,
oranges and forestry.
The Coca-Cola Company is also engaging with its suppliers on these issues
through its Supplier Relationship Management Program and Supplier
Sustainability Council, which provide opportunities for dialogue on
business needs, stakeholder expectations, sustainability goals, and how the
Company and its suppliers can work to meet these together.
The Coca-Cola Company’s Approach to Sustainable Agriculture
Drivers
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 13
ANDæ MOREæ THANæ æ EMPLOYEESæ)Tæ ISæ COCHAIREDæ BYæ
Bill and Melinda Gates and Bill Gates’ father, William
H. Gates. Warren Buffett is a trustee.
¯ To help people lift themselves out of hunger and
extreme poverty, the Bill & Melinda Gates Foundation
invests in sustainable agricultural productivity growth
The mission of the Gates Foundation’s Global
Development program is to help people lift themselves
out of hunger and extreme poverty. Its primary focus is
agricultural development – which has been found to be
two to four times more effective in raising the incomes
of the very poor than growth in other industry sectors.
Its agricultural development strategy promotes
sustainable productivity by supporting research
ANDæ DEVELOPMENTæ 2$æ STRENGTHENINGæ THEæ POLICYæ
environment for agriculture, and improving access
to knowledge, inputs, and markets for smallholder
farmers.
æ "ETWEENæ æ ANDæ æ THEæ FOUNDATIONæ
GAVEæ ALMOSTæ æ BILLIONæ FORæ THISæ PURPOSEæ )Tæ ISæ AMONGæ
the top five donors for agriculture in Sub-Saharan
Africa, where 70% of people make their livelihoods in
farming.
¯ The Gates Foundation’s approach is to provide
catalytic funding that can help farmers increase
productivity and improve access to markets
)Næ æ THEæ FOUNDATIONæ BEGANæ WORKINGæ TOæ CREATEæ Aæ
portfolio that would improve access to knowledge,
inputs, and markets for smallholder farmers by
leveraging private sector investment. The portfolio
included cash crops such as cocoa, coffee, cashew,
cotton and fruit, important sources of income for
millions of smallholder farmers in sub-Saharan Africa.
The goal was to partner with companies to help
smallholders overcome barriers to productivity and
profitability by matching corporate cash and inkind
investments in the development of sustainable and
inclusive business models, effectively buying down the
risk of learning to do business with smallholder farmers
in ways that increase development impact. As evidence
that its corporate partners believe those models make
good business sense, and intend to continue them once
donor funding ends, the foundation requires that their
investments come out of their core operating budgets,
not CSR or philanthropy budgets. The foundation also
helps to convene the other partners that companies
need, whether in business, government, or civil society.
Because many smallholder farmers grow fruit and
multiple inefficiencies along the value chain mean
they generally capture very little of its potential value,
the fruit sector offered great potential for reach and
impact. For example, smallholders are often vulnerable
to crop diseases and pests, affecting their productivity;
they face difficulties accessing quality inputs and the
credit needed to buy them; they lack reliable market
information and connections with buyers; and
geographic dispersion and infrastructure problems
drive up transportation costs. Fruit processing was
particularly interesting to the foundation as a market
for slightly bruised or damaged fruit that would not
sell on the fresh fruit market, and was often left to
rot on the ground as a result. It is estimated that up
TOææOFæCERTAINæFRUITæCROPSæGOæTOæWASTEæATæTHEæFARMæ
level.
The Gates Foundation recognized that Coca-Cola was
THEæWORLDSæLARGESTæJUICEæCOMPANYæANDæINæANæOTHERWISEæ
fragmented fruit market, it was an attractive potential
partner. Another attractive partner was US-based
international non-profit organization TechnoServe,
which has a long history of helping farmers and farmers’
groups, as well as traders and processors, to tap into
larger and more lucrative markets. TechnoServe also
had prior experience working with the foundation.
TechnoServe is a US-based international non-profit
organization that works with enterprising people
in the developing world to build competitive farms,
businesses and industries, with a focus on agriculture,
alternative energy, and tourism. Its goal is to end
poverty by expanding economic opportunity. In
AGRICULTUREæ4ECHNO3ERVEæHELPEDææSMALLHOLDERæ
FARMERSæSELLæ æ MILLIONæ WORTHæ OFæ PRODUCEæ INæ æ
alone.
æ&OUNDEDæINææBYæBUSINESSMANæ%Dæ"ULLARDæ
Drivers for the Project Nurture Partnership
14 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
THEæORGANIZATIONæNOWæWORKSæINæMOREæTHANææCOUNTRIESæ
THROUGHæMOREæTHANææSTAFFæ-ANYæSTAFFæMEMBERSæAREæ
former management consultants and industry experts,
and most are nationals of the countries where they
work.
¯ TechnoServe seeks to increase its impact on
smallholder farmers by partnering with companies to
build inclusive and sustainable value chains
TechnoServe empowers smallholder farmers to improve
their incomes and standards of living by helping them
organize and operate as business groups, strengthen
their agronomic and business skills, and connect with
BUYERSæ INæ LARGERæ MOREæ LUCRATIVEæ MARKETSæ 0ARTNERINGæ
with these buyers – or with even larger companies that
buy from them – enables the organization to target its
work for maximum impact. With companies’ input and
feedback, TechnoServe can ensure that smallholders
HAVEæ JUSTæ THEæ SKILLSæ RESOURCESæ ANDæ CONNECTIONSæ THEYæ
need to supply the right product in the right volumes
at the right levels of quality, and to become productive
and reliable parts of the value chain.
!æ æ Financial Times survey rated TechnoServe
one of the world’s top five NGOs for corporate
PARTNERSHIPSæ 0ARTNERINGæ WITHæ Aæ COMPANYæ OFæ #OCA
Cola’s size and sophistication offered an enormous
opportunity – both to achieve sustainable impact for
smallholders at scale, and to learn how to partner with
companies even more effectively in the future.
¯ TechnoServe seeks to diversify its funding base
Historically, foundations, bilateral donors, and
multilateral organizations have funded most of
TechnoServe’s work. However, growing interest among
companies in developing inclusive business models
and value chains has presented the opportunity for
TechnoServe to diversify its funding base. Though
foundations, bilaterals, and multilaterals are still
important donors, companies also pay TechnoServe
directly for its work – sometimes with matching funds
from donors to cover broader development benefits
THATæ COMPANIESæ CANNOTæ RECOUPæ 0ARTNERINGæ WITHæ4HEæ
Coca-Cola Company and the Gates Foundation
established a large-scale, high-profile example of this
model, and set an important precedent for the future.
Drivers
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 15
T
HROUGHæ0ROJECTæ.URTUREæ4HEæ#OCA#OLAæ#OMPANYæ
the Gates Foundation, and TechnoServe intend
to double the fruit incomes of more than 50,000
SMALLHOLDERæFARMERSæINæ+ENYAæANDæ5GANDAæBYææ4HEæ
partners are using a catalytic approach that combines
core business investment and philanthropy to build
inclusive value chains that generate both business benefit
and development impact.
Core business investment in product development,
marketing, supplier relationships, and procurement
systems enables The Coca-Cola Company to satisfy
its customers and create a market for the fruit that
smallholder farmers produce. Minute Maid Mango,
LAUNCHEDæINæ3EPTEMBERææINæ+ENYAæANDæ-AYææ
in Uganda, was the first product to use locally sourced
JUICEæASæAæRESULTæOFæTHEæPROJECTæ!DDITIONALæCOREæBUSINESSæ
investment from the Company and philanthropic
funding from the Gates Foundation cover the cost
of farmer capacity development and market linkages,
provided by TechnoServe. TechnoServe works to
strengthen smallholder farmers’ agricultural and
business skills and helps them organize into business
groups to access inputs and finance, facilitate
transactions with buyers, and improve their bargaining
power. At the same time, TechnoServe connects
farmers with companies offering quality inputs and
with buyers in three primary markets:
sæ &RUITæPROCESSINGæMARKET
sæ $OMESTICæANDæREGIONALæFRESHæFRUITæMARKET
sæ %XPORTæFRESHæFRUITæMARKET
While The Coca-Cola Company does not benefit from
sales in the fresh fruit markets, the Company realizes that
ITæCANNOTæANDæSHOULDæNOTæABSORBææOFæSMALLHOLDERæ
farmers’ production. Fruit fetches higher prices in the
fresh market, where quality standards are higher. Fruit
can be sold for processing at a lower price if it is slightly
bruised or damaged – though quality standards still
apply. Having multiple market channels for their fruit
enables farmers to optimize their sales and revenues and
reduces their dependence on any one buyer.
The Coca-Cola Company, the Gates Foundation,
and TechnoServe have assembled a complex array of
additional partners as well. The idea is not for the
three founding partners to do everything themselves,
but rather to identify and engage organizations with
comparative advantages in the value chain and broader
enabling environment, helping those organizations
build the business case and capacity they need to work
TOGETHERæEVENæAFTERæ0ROJECTæ.URTUREæENDSæ)NæTHISæWAYæ
the founding partners aim to catalyze value creation
NOTæONLYæDURINGæTHEææPROJECTæPERIODæBUTæALSOæ
long into the future.
Approach
16 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
R
ESULTSæ TOæ DATEæ SUGGESTæ THATæ 0ROJECTæ .URTUREæ ISæ
contributing to both business and development
goals, during the partnership period and beyond.
From a development perspective, the partnership is
linking smallholder farmers into profitable, sustainable
value chains where they can increase their incomes now
and into the future – potentially enabling them and
their families to eat more regular and nutritious diets, go
to school, tap into better economic opportunities, and
address health concerns as they arise. Recognizing the
central role women play in making spending decisions
that benefit the family, the partners have reached out
to women farmers specifically. This also aligns with
4HEæ #OCA#OLAæ #OMPANYSæ BYæ COMMITMENTæ TOæ
economically empower five million women within the
#OCA#OLAæVALUEæCHAINæBYææSEEæBOXæBELOW
From a business perspective,æ 0ROJECTæ .URTUREæ ISæ
developing new sources of fresh mango and passion
fruit, mango puree, and passion fruit concentrate to
meet the needs of The Coca-Cola Company’s growing
JUICEæBUSINESSæ-OREæGENERALLYæTHEæPARTNERSHIPæISæTESTINGæ
and refining a model for developing new, inclusive, and
sustainable sources of supply that is already starting
to be applied to other commodities in other parts of
the world. In replicating the model, The Coca-Cola
Company will not only multiply its business benefits,
but its development impact as well.
0ROJECTæ .URTURESæ BUSINESSæ ANDæ DEVELOPMENTæ GOALSæ
are inextricably linked, each serving to reinforce the
OTHERæ 0ROFITABLEæ BUSINESSæ ACTIVITYæ CREATESæ ECONOMICæ
opportunity for farmers, offering them additional
income and the stability, resilience, health, education,
and other benefits that come with it. Those benefits, in
turn, enable farmers to supply high-quality fruit on a
consistent basis, contributing to supply chain security
and business growth.
Achievements To Date
W
omen play critical roles in agriculture in developing countries,
working on the farm, running farming households, and taking
on other jobs to supplement household farming incomes. Across
EFWFMPQJOHDPVOUSJFTXPNFONBLFVQPGUIFBHSJDVMUVSBMMBCPS
force.
18
In the Project Nurture countries of Kenya and Uganda, that
mHVSF JT DMPTFS UP
19
However, women’s yields are lower than
men’s as a result of limited access to improved seeds and other
inputs, agricultural and business skills training, and access to markets.
&RVBMJ[JOHBDDFTTUPUIFTFSFTPVSDFTDPVMEJODSFBTFXPNFOTZJFMETCZ
20
The Coca-Cola Company has experienced the importance of women
not only in agriculture but throughout its value chain. The Company’s
5by20 initiative aims to enable the economic empowerment of five
million of these women by 2020, strengthening them in their roles
and enabling them to grow even further. 5by20 addresses the most
common barriers women face in the marketplace through programs
and partnerships that offer access to business skills training, financial
services, and connections with peers and mentors.
Project Nurture is one such partnership. TechnoServe is implementing
a comprehensive gender strategy that addresses the barriers women
GBDFUPFRVBMQBSUJDJQBUJPOJOJUTPXOUSBJOJOHQSPHSBNTBOEJOUIFJS
households, Producer Business Groups (PBGs), and communities. For
FYBNQMFUIFPSHBOJ[BUJPOUSBJOTJUTUSBJOFSTJOGBDJMJUBUJPOUFDIOJRVFT
that encourage women to speak up, and makes sure that the location
and timing of training sessions do not inadvertently prevent women
from attending. During training sessions, TechnoServe trainers raise
BXBSFOFTT PG UIF CFOFmUT PG HFOEFSFRVBMJUZ BOE PG UIF MFBEFSTIJQ
skills and traits that women possess. They encourage PBG members
to work together to identify barriers to women’s participation in group
leadership and to develop strategies to overcome them, sometimes
setting targets for women’s representation.
Project Nurture aims to reach at least 15,000 women farmers out of
more than 50,000 overall. As of October 2012, the partnership had
reached 14,000 women farmers out of 42,000 overall, for a total of
8PNFONBLFVQPGUIFMFBEFSTIJQPGUIF1#(TUPXIJDIUIFZ
belong.
Empowering Women Farmers
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 17
Figure 3. Project Nurture Objectives and Achievements To Date
Objectives Achievements To Date
1. Double the fruit income
for over 50,000 smallhold-
er mango and passion
fruit farmers through
improved production and
supply chain linkages
t.PSFUIBOGBSNFSTJOBQQSPYJNBUFMZ1SPEVDFS#VTJOFTT(SPVQTQBSUJDJQBUFJOUIF
program, 14,000 of them women
t5ISPVHIBDPNCJOBUJPOPGJODSFBTFEWPMVNFTBMFTBOEJNQSPWFERVBMJUZQBSUJDJQBUJOHGBSNFST
annual fruit incomes have, on average, already more than doubled
2. Increase local supply of
juice and improve local
processing infrastructure
to allow for the
development of
The Coca-Cola Company’s
local juice business
t.JOVUF.BJE.BOHPUIFmSTUQSPEVDUUPVTFMPDBMMZTPVSDFEKVJDFBTBSFTVMUPG1SPKFDU/VSUVSF
was launched in September 2010 in Kenya and May 2011 in Uganda
t,FOZBCBTFE4VOOZ1SPDFTTPST-UEBOE"MMGSVJU&1;-UEXFSFBQQSPWFEUPTVQQMZNBOHPQVSFF
to Coca-Cola’s bottling partners
t5IFTFUXPQSPDFTTPSTOPXTVQQMZPGUIFNBOHPQVSFFGPS.JOVUF.BJE.BOHPJO,FOZB
6HBOEBUIF%FNPDSBUJD3FQVCMJDPG$POHP;JNCBCXFBOE4PVUI"GSJDB
3. Link project farmers
to diverse profitable
markets, including fresh
domestic and fresh
export markets
t1SPKFDUGBSNFSTBSFOPXTFMMJOHJOUPUISFFNBSLFUDIBOOFMTGSVJUQSPDFTTJOHGSFTIEPNFTUJDBOE
GSFTIFYQPSUBOESFTQFDUJWFMZBTPG0DUPCFS
t7PMVNFTBMFTPGNBOHPCZQBSUJDJQBUJOHGBSNFSTJO,FOZBBOE6HBOEBIBWFNPSFUIBOEPVCMFE
volume sales of passion fruit in Uganda have also more than doubled
t.PSFUIBONFUSJDUPOTPGGSFTIGSVJUGSPN1SPKFDU/VSUVSFIBWFCFFOIBSWFTUFEBOETPME
t'BSNHBUFQSJDFTGPSQBTTJPOGSVJUJO,FOZBBOEGPSNBOHPBOEQBTTJPOGSVJUJO6HBOEBIBWF
increased
4. Increase farmer access
to financial services and
help organize access
to farm inputs for their
crops
tMPBOTXPSUIIBWFCFFOEJTCVSTFEUPmOBODFQBTTJPOGSVJUGBSNJOHTUBSUVQDPTUT
such as seeds, seedlings, poles, and wires
t4FWFSBMQSJWBUFOVSTFSJFTIBWFCFFOTVQQPSUFEUPJODSFBTFUIFRVBOUJUZBOERVBMJUZPGQBTTJPO
fruit seedlings available to farmers
5. Create a successful
business model that can
be replicated in other
markets
t.JOVUF.BJE.BOHPJTQSPmUBCMF
t5IF$PDB$PMB$PNQBOZFYQFDUTUPSFDPVQJUTJOWFTUNFOUJO1SPKFDU/VSUVSFTFWFSBMUJNFTPWFS
in the next 3-5 years through cost optimization and replication in other countries
t5IF$PNQBOZIBTJNQMFNFOUFELFZFMFNFOUTPGUIFNPEFMJO)BJUJBOE*OEJBGVSUIFSSFQMJDBUJPO
JTVOEFSDPOTJEFSBUJPOJO;JNCBCXF/JHFSJBBOEPS(IBOB
t5FDIOP4FSWFBMTPQMBOTUPSFQMJDBUFUIFNPEFMJOGVUVSFQBSUOFSTIJQTXJUINVMUJOBUJPOBM
companies, local businesses, and governments
t)BWJOHTVQQPSUFETFWFSBMTVDIQBSUOFSTIJQTGPSIJHIFSWBMVFDBTIDSPQTUIFGPVOEBUJPOJTOPX
leaving replication to the private sector and governments, and looking to establish similar
additional partnerships for widely-grown staple crops such as rice, maize, and cassava
18 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
P
ROJECTæ.URTUREæBRINGSæTOGETHERæAæCOMPLEXæARRAYæOFæ
players, each with a distinct role to play in building
or operating inclusive and sustainable mango and
passion fruit value chains. These roles include providing
agronomic and business skills training for farmers;
cultivating and selling clean planting material; making
and servicing loans; purchasing, trading, processing,
retailing, and exporting fruit; and manufacturing and
marketing value-added products that use fruit as an
INGREDIENTæ4HEYæAREæSUMMARIZEDæINæ&IGURESææANDæ
The Coca-Cola Company
Multiple divisions of The Coca-Cola Company play
ROLESæINæ0ROJECTæ.URTUREæALONGæTHEæVALUEæCHAINæANDæINæ
PROJECTæ MANAGEMENTæ ANDæ GOVERNANCEæ WHICHæ WILLæ BEæ
DESCRIBEDæINæTHEæNEXTæSECTION
The Central, East & West Africa Business Unit (CEWABU)
LEADSæ 0ROJECTæ .URTUREæ FORæ 4HEæ #OMPANYæ WITHæ THEæ
#OMPANYSæ æ MILLIONæ CASHæ CONTRIBUTIONæ COMINGæ
from the business unit and a supply chain manager
FROMæ THEæ STILLæ BEVERAGESæ DIVISIONæ SERVINGæ ASæ PROJECTæ
MANAGERæ #%7!"5æ PLAYSæ Aæ CENTRALæ ROLEæ INæ CREATINGæ
demand for smallholder farmers’ produce within the
processed fruit channel by spearheading the growth of
THEæ#OMPANYSæJUICEæBUSINESSæINæTHEæREGIONæ)Næ#ENTRALæ
%ASTææ7ESTæ !FRICAæ PERæCAPITAæ JUICEæ CONSUMPTIONæ ISæ
LOWæ SOæ #%7!"5æ MUSTæ WORKæ NOTæ ONLYæ TOæ INCREASEæ
Coca-Cola’s own volume and market share, but also
TOæGROWæTHEæENTIREæJUICEæCATEGORYæ)TæLAUNCHEDæ-INUTEæ
-AIDæ-ANGOæINæ+ENYAæINæ3EPTEMBERææANDæ5GANDAæ
INæ-AYææ!LONGæTHEæVALUEæCHAINæ#%7!"5æWORKSæ
with bottlers in the region to set targets and develop
STRATEGIESæFORæ JUICEæ BUSINESSæGROWTHæ)Tæ SUPPORTSæ THEIRæ
efforts with consumer brand marketing. In addition,
TOGETHERæ WITHæ ''æ #%7!"5æ WORKSæ TOæ DEVELOPæ
LOCALæ SOURCESæ OFæ SUPPLYæ FORæ ITSæ JUICESæ næ FORæ EXAMPLEæ
identifying promising processors like Sunny and
Allfruit and supporting them in their efforts to gain
approval as suppliers to the Coca-Cola system.
Grove 2 Glass Trading Services GmbH (G2G) is a
Company subsidiary that serves as the procurement
ARMæ OFæ #OCA#OLASæ 'LOBALæ *UICEæ #ENTERæ ''æ ISæ
RESPONSIBLEæ FORæ FRUITæ JUICEæ ANDæ PUREEæ PURCHASESæ FORæ
the entire Coca-Cola system around the world, and
INæTHISæCAPACITYæHASæWORKEDæWITHæ#%7!"5æTOæBRINGæ
processors Sunny and Allfruit into the supply chain.
''æALSOæCONTRACTSæWITHæ3UNNYæANDæ!LLFRUITæTOæSUPPLYæ
Coca-Cola Juices Kenya, Century Bottling Company,
and other bottlers, aggregating demand to offer large
orders and obtain bulk pricing.
The Research and Innovation (R&I) team tests new
ingredients and develops new Coca-Cola products.
"ASEDæINæ "RUSSELSæ 2)æ SUPPORTSæ0ROJECTæ.URTUREæBYæ
ANALYZINGæ THEæ FRUITSæGROWNæ INæ PROJECTæ AREASæ ASSESSINGæ
their suitability for processing, and coming up with
PRODUCTæIDEASæAROUNDæTHEMænæINCLUDINGæJUICEæBLENDSæ
fruit bits, and flavor extracts that can be used in
sparkling beverages. This work is important not only to
0ROJECTæ.URTUREæBUTæBEYONDænæINæSOæDOINGæ4HEæ#OCA
Cola Company is helping to bring new mango varieties
onto the world market, establishing alternatives to the
current benchmark varieties from India.
Public Affairs and Communications (PAC) manages
MEDIAæ ANDæ EXTERNALæ STAKEHOLDERæ RELATIONSæ FORæ 0ROJECTæ
Nurture. With team members at the business unit level
in Nairobi and at corporate headquarters in Atlanta,
0!#æ FIELDSæ INQUIRIESæ ANDæ COMMUNICATESæ TOæ Aæ BROADæ
audience about the Coca-Cola system’s involvement in
THEæPROJECTæITSæOBJECTIVESæITSæPROGRESSæANDæITSæIMPACTæONæ
local communities, particularly smallholder farmers.
0!#æ ALSOæ MANAGESæ RELATIONSæ AMONGæ THEæ #OMPANYæ
the Gates Foundation, and TechnoServe at a global
headquarters level.
The Chief Sustainability Office (CSO)æ OVERSEESæ 0ROJECTæ
Nurture and a range of similar pilots around the
world, assessing impact, and using the lessons learned
to develop The Coca-Cola Company’s sustainable
agriculture strategy and manage progress against its
targets and commitments.
Roles and Responsibilities Along the Value Chain
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 19
Partner Role
The Coca-Cola Company
The Coca-Cola Company (TCCC)’s
Central, East & West Africa Business
Unit (CEWABU)
$POUSJCVUFENJMMJPOJODBTIUPGVOE5FDIOP4FSWFQSPWJEFTEBZUPEBZQSPKFDUNBOBHFNFOUGPSUIF
partnership. Spearheads growth of Coca-Cola’s juice business in the region and works with G2G to develop
local sources of supply like Sunny and Allfruit.
Grove 2 Glass Trading Services
GmbH
TCCC subsidiary that serves as procurement arm for the Global Juice Center, responsible for fruit juice and
QVSFFQVSDIBTFTGPSUIF$PDB$PMBTZTUFNXPSLTUPEFWFMPQMPDBMTPVSDFTPGTVQQMZMJLF4VOOZBOE"MMGSVJU
Research & Innovation Team (R&I) Analyzes fruits grown in project areas, assessing suitability for processing, and comes up with product ideas
including juice blends, fruit bits, and flavor extracts.
Public Affairs & Communications .BOBHFTNFEJBBOEFYUFSOBMTUBLFIPMEFSSFMBUJPOTGPS1SPKFDU/VSUVSFGBDJMJUBUFTQBSUOFSSFMBUJPOTBUUIF
global level.
Chief Sustainability Office Oversees and uses lessons learned from Project Nurture and other pilots to develop the Company’s
sustainable agriculture strategy and manage progress against targets
Donor
Bill & Melinda Gates Foundation $POUSJCVUFENJMMJPOJODBTIUPGVOE5FDIOP4FSWFQMBZFEDSJUJDBMVQGSPOUSPMFDPOWFOJOHUIFQBSUOFST
BOEEFTJHOJOH1SPKFDU/VSUVSFQSPWJEFTTUSBUFHJDEJSFDUJPOBOEPWFSTJHIUPOUIF4UFFSJOH$PNNJUUFF
Value Chain Facilitator
TechnoServe 1SPWJEFTGBSNFSTXJUIBHSJDVMUVSBMBOECVTJOFTTTLJMMTUSBJOJOHTUSFOHUIFOTGBSNFSTCVTJOFTTHSPVQTBOE
connects farmers with inputs, credit, and buyers. Also works with buyers to strengthen their smallholder
procurement systems.
Other Farmer Support Services Providers
Real IPM %FWFMPQFENBOVBMTGPSNBOHPBOEQBTTJPOGSVJUQSPEVDUJPOTVQQPSUT5FDIOP4FSWFBOEGBSNFSTXJUI
agronomic expertise.
Farm Concern International (Kenya) Complements TechnoServe’s role supporting farmers and farmers’ business groups in Eastern Kenya.
Agribusiness Management
Associates (Uganda)
Complements TechnoServe’s role supporting farmers and farmers’ business groups in Uganda.
Agricultural Research Institutes
Kenya Agricultural Research
Institute
%FWFMPQFEJNQSPWFEWBSJFUJFTPGTXFFUZFMMPXQBTTJPOGSVJUVTFTGVOEJOHGSPN5FDIOP4FSWFUPDVMUJWBUF
seeds and seedlings for sale to nurseries and farmers.
National Crops Resources Research
Institute (Uganda)
%FWFMPQFEJNQSPWFEWBSJFUZPGZFMMPXQBTTJPOGSVJUVTFTGVOEJOHGSPN5FDIOP4FSWFUPDVMUJWBUFTFFETGPS
sale to nurseries and farmers.
Financial Institutions
&RVJUZ#BOL,FOZB Provides financing for Project Nurture farmers taking up passion fruit production.
Centenary Bank (Uganda) Provides financing for Project Nurture farmers taking up passion fruit production.
Processors
Sunny Processors Ltd (Kenya) 1VSDIBTFT/HPXFNBOHPFTGSPN1SPKFDU/VSUVSFGBSNFSTQSPEVDFTNBOHPQVSFFGPSTBMFUP$PDB$PMBCPUUMFST
"MMGSVJU&1;-UE,FOZB 1VSDIBTFT/HPXFNBOHPFTGSPN1SPKFDU/VSUVSFGBSNFSTQSPEVDFTNBOHPQVSFFGPSTBMFUP$PDB$PMBCPUUMFST
Beverage Manufacturers
Coca-Cola Juices Kenya Ltd 1VSDIBTFTNBOHPQVSFFGSPN4VOOZNBOVGBDUVSFT$PDB$PMBT.JOVUF.BJE.BOHPKVJDFBOETFMMTJUUPPUIFS
bottlers for distribution.
Century Bottling Company
(Uganda)
1VSDIBTFTNBOHPQVSFFGSPN4VOOZBOE"MMGSVJUNBOVGBDUVSFTBOEEJTUSJCVUFT$PDB$PMBT.JOVUF.BJE
Mango juice.
Britania Allied Industries (Uganda) Purchases Sena mangoes from Project Nurture farmers for use in its own Ladid brand mango juice.
Exporter
East African Growers (Kenya) 1VSDIBTFTIJHIRVBMJUZNBOHPFTGSPN1SPKFDU/VSUVSFGBSNFSTGPSGSFTINBSLFUFYQPSUT
National Governments
Kenyan Ministry of Agriculture Provides strategic direction and oversight on the Steering Committee.
Ugandan Ministry of Agriculture,
Animal Industries and Fisheries
Provides strategic direction and oversight on the Steering Committee.
Figure 4. Project Nurture Partner Roles
20 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Bill & Melinda Gates Foundation
TechnoServe
Real IPM
(Kenya &
Uganda)
Farm Concern
International
(Kenya)
Agribusiness
Management
Associates
(Uganda)
Traders
Marketing Agents
Britania
(Uganda)
Domestic and
Regional
Wholesalers
East African
Growers (Kenya)
Other Exporters
Traders
PRODUCER BUSINESS
GROUP
Farmer
Farmer
Farmer
Equity Bank
(Kenya) /
Centenary Bank
(Uganda)
Private
Nurseries
Kenya Agricultural
Research Institute
(Kenya) /
National Crops
Resources Research
Institute (Uganda)
Agent
Traders
Traders
Allfruit
(Kenya)
Sunny
(Kenya)
Processors
Beverage
Manufacturers
Figure 5. The Project Nurture Mango and Passion Fruit Value Chain
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 21
TechnoServe The Coca-Cola Company
Grove 2 Glass
PARTNERS
Century Bottlers (Uganda)
Coca-Cola Juices
(Kenya)
Distributors Retailers
Traditional
Distributors
Micro Distribution
Centers
Small Shops
and Kiosks
End
Consumers
Retailers
High-end Outlets
End
Consumers
PROCESSING CHANNEL
DOMESTIC & REGIONAL
FRESH MARKET CHANNEL
Supermarket
Chains
End
Consumers
FRESH EXPORT CHANNEL
DOMESTIC & REGIONAL
FRESH MARKET CHANNEL
End
Consumers
MANGO and PASSION FRUIT VALUE CHAINS
MANGOES
PASSION FRUIT
Smaller Hotels and
Superettes
Beverage
Manufacturers
Distributors Retailers
Figure 5. The Project Nurture Mango and Passion Fruit Value Chain
Other Bottlers in Kenya
and Other Countries
Other Bottlers (DRC,
South Africa, Zimbabwe)
Large Hotels and
Supermarkets
22 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Roles and Responsibilities Along the Value Chain
Donor
The Bill & Melinda Gates Foundation ISæPROVIDINGææ
million in grant funding to support TechnoServe’s
activities. The foundation typically provides a dollar
for dollar match of corporate partners’ financial
contributions and a percentage match of its partners’
in-kind contributions in R&D, capital investments,
technical assistance, and purchase guarantees in direct
support of the initiative. These in-kind contributions
leverage corporate partners’ core competencies and
are considered a critical component of the match. In
0ROJECTæ .URTUREæ TOæ ACHIEVEæ THEæ NECESSARYæ SCALEæ ANDæ
economic viability of the smallholder-based fruit
supply chain and to ensure a robust value proposition
to the farmers, it was also important to support
the development of additional marketing channels
BEYONDæFRUITæPROCESSINGæFORæJUICEæSUCHæASæTHEæLUCRATIVEæ
fresh market, which actually comprises the bulk of
smallholder farmers’ sales. As a result, the foundation
provided additional funding, beyond matching Coca-
#OLASæ æ MILLIONæ CASHæ ANDæ æ MILLIONæ INKINDæ
contributions. In addition to funding, the foundation
played a critical role in mobilizing and developing the
0ROJECTæ.URTUREæPARTNERSHIPæANDæCONTINUESæTOæPLAYæANæ
active role in partnership governance, as described in
the next section.
Value Chain Facilitator
TechnoServe LEADSæ0ROJECTæ.URTURESæWORKæWITHæFARMERSæ
with funding from the Gates Foundation and The
Coca-Cola Company. The organization is responsible
for recruiting farmers to participate and supporting
them at four levels:
t Improving farm productivity and quality: TechnoServe
trains farmers in agronomic techniques to improve
productivity and quality both directly and through
CONTRACTORSæ INCLUDINGæ 2EALæ )0-æ ANDæ &ARMæ
Concern International in Kenya and Agribusiness
Management Associates in Uganda. Training takes
place at model farms, where techniques can be
demonstrated and results observed. These sessions
AREæ SUPPLEMENTEDæ BYæ #OMMUNITYæ %XTENSIONæ
3ERVICEæ 0ROVIDERSæ #%30Sæ INDIVIDUALSæ FROMæ
participating farming communities who are trained
and paid a stipend to support farmers on a day-to-
day basis as they have questions or as issues arise.
Issues that cannot be addressed at the local level can
BEæREFERREDæTOæ4ECHNO3ERVEæANDæ2EALæ)0-æSTAFFæONæ
call. In Kenya, TechnoServe is also disseminating
key information via Twitter, which most farmers
can follow on their cell phones.
t Connecting farmers with sources of inputs and credit:
As part of the agronomic training and support
farmers receive, they learn which inputs they need
– such as pesticides or fruit fly traps – and where
to purchase them. In addition, TechnoServe has
actively identified sources of planting material and
credit and connected farmers to them. For instance,
because passion fruit is highly susceptible to disease,
the organization has provided funding to help the
+ENYAæ !GRICULTURALæ 2ESEARCHæ )NSTITUTEæ +!2)æ
produce and commercialize seeds of improved
VARIETIESæ OFæ 3WEETæ 9ELLOWæ 0ASSIONæ &RUITæ 390æ
TechnoServe has also created a market for those
SEEDSæBYæRAISINGæFARMERSæAWARENESSæOFæ390SæPOSITIVEæ
attributes – such as disease resistance, sweetness,
ANDæ HIGHæ JUICEæ CONTENTæ næ ANDæ BYæ ENCOURAGINGæ
private nurseries to cultivate seedlings to sell to the
farmers. Because this passion fruit variety is a new
crop for many farmers, TechnoServe has also forged
RELATIONSHIPSæ WITHæ TWOæ BANKSæ %QUITYæ "ANKæ INæ
Kenya and Centenary Bank in Uganda, to provide
credit to farmers needing to finance start-up costs
like seeds, seedlings, poles, and wires.
t Strengthening farmers’ groups: It can be difficult for
individual smallholder farmers – sometimes with as
FEWæASææMANGOæTREESænæTOæPARTICIPATEæINæMARKETSæ
effectively on their own. So TechnoServe works
TOæ STRENGTHENæ FARMERSæ GROUPSæ CALLEDæ 0RODUCERæ
"USINESSæ 'ROUPSæ 0"'Sæ WITHæ GOVERNANCEæ ANDæ
BUSINESSæ SKILLSæ TRAININGæ 0"'Sæ SERVEæ ASæ COLLECTIVEæ
marketing organizations, giving farmers more
bargaining power and enabling buyers to reach
them more cost-effectively.
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 23
sæ Building market linkages: Finally, TechnoServe works
TOæ CONNECTæ 0"'Sæ WITHæ BUYERSæ INæ SEVERALæ DIFFERENTæ
channels, as depicted in Figure 5: fruit processing,
fresh domestic and regional markets, and fresh
export markets. The organization has mapped
the players in these markets along the entire value
chain. It now reaches out to these players, framing
THEæBUSINESSæCASEæFORæBUYINGæFROMæ0ROJECTæ.URTUREæ
farmers and establishing connections. Often the
first link is a trader, who TechnoServe will connect
with participating farmers by helping to develop
route maps and pick-up schedules. TechnoServe
has also built more direct connections between
FARMERSæANDæLARGERæ BUYERSæ INCLUDINGæ %ASTæ !FRICANæ
Growers, a fresh produce exporter in Kenya, and
Britania, a beverage manufacturer outside of the
Coca-Cola system in Uganda. TechnoServe has
worked with these companies to develop strong,
efficient systems for procuring from smallholder
farmers.
Other Farmer Support Services Providers
0ARTæ OFæ 0ROJECTæ .URTURESæ STRATEGYæ FORæ SUSTAINABLEæ
impact is local institutional capacity-building. As
part of this strategy, the Gates Foundation required
THATæATæLEASTææOFæITSæGRANTæTOæ4ECHNO3ERVEæBEæSUB
granted to local organizations that could support and
complement its work with specialized knowledge,
skills, local connections or implementation capacity.
TechnoServe oversees and pays these organizations for
their work.
Real IPM is a Kenyan company that markets affordable,
biological crop protection products in Kenya, South
!FRICAæ %THIOPIAæANDæ OTHERæ !FRICANæ COUNTRIESæ ASæ WELLæ
ASæ %UROPEæ ANDæ #ANADAæ 4HEæ COMPANYæ ALSOæ PROVIDESæ
ITSæCUSTOMERSæ WITHæ TECHNICALæSUPPORTæ7ITHINæ0ROJECTæ
.URTUREæ 2EALæ )0-Sæ ROLEæ ISæ TOæ SUPPORTæ 4ECHNO3ERVEæ
STAFFæ#%30SæANDæFARMERSæINæBOTHæ+ENYAæANDæ5GANDAæ
WITHæAGRONOMICæEXPERTISEæ2EALæ)0-æDEVELOPEDæMANUALSæ
for good agricultural practices and environmental
stewardship in mango and passion fruit production,
WHICHæFORMæTHEæTECHNICALæBASISæFORæALLæ0ROJECTæ.URTUREæ
training activities and are publicly available for use
OUTSIDEæTHEæPARTNERSHIPæ2EALæ)0-æALSOæSUPPORTSæ#%30Sæ
and farmers through refresher trainings and individual
guidance upon referral.
Farm Concern International (FCI) is a non-governmental
organization that works to build pro-poor business
models and value chains and to increase smallholder
farmers’ competitiveness in the marketplace. On its
OWNæ&#)æ HASæRECEIVEDæMOREæTHANææ MILLIONæFROMæ
the Gates Foundation to create effective marketing
mechanisms for smallholder horticultural production
in Kenya, Tanzania, Malawi, and Rwanda. Within
0ROJECTæ.URTUREæ&#)æISæ4ECHNO3ERVESæLOCALæPARTNERæINæ
Kenya. In Mbeere, in eastern Kenya, FCI takes the lead
INæ MOBILIZINGæ FARMERSæ SUPPORTINGæ 0"'æ FORMATIONæ
and providing agricultural, business, and financial
SKILLSæTRAININGæ4HEæORGANIZATIONæCONNECTSæ0"'SæWITHæ
traders channeling fruit into the fruit processing, fresh
domestic and regional, and export markets. FCI also
MONITORSæ PROJECTæ IMPLEMENTATIONæ INæ -BEEREæ ASæ PARTæ
OFæ THEæ 0ROJECTæ .URTUREæ MONITORINGæ ANDæ EVALUATIONæ
-%æ PLANæ /UTSIDEæ OFæ -BEEREæ &#)æ PROVIDESæ
logistical support for training-of-trainers and farmer
exchange visits to markets and processing facilities.
FCI coordinates closely with TechnoServe to ensure
that their respective trainings are complementary and
mutually reinforcing.
Agribusiness Management Associates (AMA) Uganda
Ltd. is a private company offering agribusiness develop-
ment and management services, including marketing
and institutional capacity-building for smallholder
FARMERSæ ANDæ THEIRæ ORGANIZATIONSæ 7ITHINæ 0ROJECTæ
Nurture, AMA is TechnoServe’s local partner in
Uganda. The organization works with TechnoServe
ANDæ2EALæ)0-æTOæDESIGNæTRAININGSæPROVIDESæFIELDBASEDæ
TECHNICALæTRAININGæANDæ ADVICEæ IDENTIFIESæ #%30SæANDæ
SUPPORTSæ THEMæTOæ TRAINæ THEæMEMBERSæ OFæ THEIRæ0"'Sæ
!-!æALSOæFACILITATESæFARMERæVISITSæTOæSUCCESSFULæ0"'Sæ
and provides logistical support for training-of-trainers
sessions and refresher courses.
24 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Agricultural Research Institutes
The Kenya Agricultural Research Institute (KARI),
FOUNDEDæINææISæAæ+ENYANæGOVERNMENTæENTITYæTHATæ
focuses on food, horticultural, and industrial crops;
animal production and health; socioeconomics and
biometrics of crops, livestock, and natural resources;
ANDæLANDæ ANDæWATERæ MANAGEMENTæ&ORæMOREæ THANææ
years, KARI has used funding from international
DONORSæTOæDEVELOPæNEWæVARIETIESæOFæ3WEETæ9ELLOWæ0ASSIONæ
&RUITæ 390æ FEATURINGæ HEIGHTENEDæ DISEASEæ RESISTANCEæ
GREATERæSWEETNESSæHIGHERæJUICEæCONTENTæFORæPROCESSINGæ
ANDæHIGHERæYIELDSæ0ROJECTæ.URTUREæHASæOFFEREDæ+!2)æ
the opportunity to commercialize those new varieties.
TechnoServe has provided funding to enable the
institute to cultivate and sell seeds and seedlings,
and connected it to customers including farmers and
private nurseries. TechnoServe has also worked to raise
AWARENESSæOFæ 390æ WHICHæ WASæ NOTæ WELLæ KNOWNæ INæ THEæ
market, for example by involving KARI representatives
in farmer trainings.
The National Crops Resources Research Institute
(NaCRRI)æWASæFOUNDEDæINææBYæTHEæ%MPIREæ#OTTONæ
Growing Corporation of Britain and handed over to the
5GANDANæGOVERNMENTæINææ)NæTHEæSæ.A#22)æ
expanded beyond cotton, and now focuses on fruits
and vegetables, beans, cassava, coffee, cereals, and
sweet potatoes. NaCCRI had developed an improved
variety of yellow passion fruit called the Kawnda
HYBRIDæANDæ0ROJECTæ.URTUREæOFFEREDæTHEæOPPORTUNITYæTOæ
commercialize it. TechnoServe has provided funding to
enable the institute to cultivate seeds for the Kawnda
variety and a traditional variety already grown by local
farmers for sale to private nurseries and to farmers
directly. The initiative is still in its early stages.
Financial Institutions
Equity BankæFOUNDEDæINææISæTHEæLARGESTæBANKæINæ
terms of customer base in Africa, with more than eight
million customers in Kenya, Uganda, South Sudan,
Rwanda, and Tanzania. Its mission is to offer inclusive
financial services that socially and economically
empower its clients and other stakeholders. Within
0ROJECTæ .URTUREæ %QUITYæ "ANKæ FINANCESæ SMALLHOLDERæ
farmers taking up passion fruit cultivation in Kenya.
First, the bank conducts eight-week trainings with
farmers, building financial literacy and helping them
to form lending groups, or “cells.” The bank then lends
to qualifying individuals, with the other members of
their cells serving as guarantors. Cell members also
help identify household items, such as furniture, that
can be used as collateral. TechnoServe has provided
%QUITYæ"ANKæWITHæAææCASHæGUARANTEEæBUTæTHEæ
bank considers the group co-guarantee and collateral
sufficient hedge against the risk an individual borrower
will default. Instead, TechnoServe’s guarantee serves as
protection against systemic shocks, such as a drought,
that would reduce farmers’ ability to repay their loans
ACROSSæ THEæ BOARDæ %QUITYæ "ANKæ ISæ ALSOæ ABLEæ TOæ INVESTæ
that money, using the earnings to help compensate
FORæTHEæREDUCEDæRATESæITæOFFERSæ0ROJECTæ.URTUREæFARMERSæ
æ COMPAREDæ TOæ Aæ MARKETæ RATEæ OFæ APPROXIMATELYæ
æWHENæTHEæAGREEMENTæWASæSIGNEDæ0ROJECTæ.URTUREæ
ALSOæINTRODUCESæ%QUITYæ"ANKæTOæNEWæCLIENTSæANæADDEDæ
incentive for the bank to offer these reduced rates. In
previous partnerships, the bank has found that these
clients often remain customers when the partnership
ends, utilizing additional services and paying full
market rates when they need new loans.
Centenary BankæFOUNDEDæINææISæTHEæSIXTHæLARGESTæ
bank in Uganda and the second largest indigenous
Ugandan bank. It is involved in all areas of commercial
banking, with an emphasis on microfinance and loans
to smallholder farmers, agricultural processors, small
manufacturers and traders, importers, and exporters.
7ITHINæ 0ROJECTæ .URTUREæ #ENTENARYæ "ANKæ FINANCESæ
smallholder farmers taking up passion fruit cultivation
in Uganda. As per its protocol, the bank conducts
training on the value of savings, credit terms and loan
MANAGEMENTæ ,IKEæ %QUITYæ "ANKæ #ENTENARYæ "ANKæ
lends to individual farmers using household items as
collateral, but without the group co-guarantee. As a
RESULTæTHEæBANKæCOUNTSæONæAææCASHæGUARANTEEæ
from TechnoServe to help protect it in the event an
individual borrower defaults. The guarantee also serves
as protection against systemic shocks. Centenary Bank
Roles and Responsibilities Along the Value Chain
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 25
does not earn interest on the guarantee; however,
THEæ BANKæ AGREEDæ TOæ FIXæ THEæ INTERESTæ RATEæ ATæ æ
approximately the market rate at the time. As with
%QUITYæ "ANKæ 0ROJECTæ .URTUREæ INTRODUCESæ #ENTENARYæ
Bank to new clients who may remain customers when
the partnership ends, utilizing additional services and
paying full market rates when they need new loans.
Processors
Sunny Processors Limited (Sunny)æESTABLISHEDæINææ
is a fruit processor based in Ruiru in Kenya. Sunny
was the first processor approved to supply the Coca-
#OLAæSYSTEMæUNDERæ0ROJECTæ.URTUREæ4HEæCOMPANYæHASæ
PROCUREDæ MANGOESæ FROMæ 0ROJECTæ .URTUREæ FARMERSæ FORæ
two seasons, with the third season approaching. The
company processes those mangoes into puree, which
ITæ THENæ CONTRACTSæ WITHæ ''æ TOæ SUPPLYæ TOæ BOTTLERSæ INæ
various countries, including Coca-Cola Juices in
Kenya, Century Bottling Company in Uganda, and
other bottlers in the Democratic Republic of Congo,
3OUTHæ!FRICAæANDæ:IMBABWEæ%ACHæBATCHæOFæPUREEæISæ
submitted to chemical, physical, and micro-biological
tests at the processing plant, and samples are then
sent to Coca-Cola Midi in France for certification.
For Sunny, supplying the Coca-Cola system is a good
alternative to selling through agents, who are not as
transparent about their customers’ needs, the prices
they receive, and the margins they take. In addition, if
#OCA#OLASæJUICEæBUSINESSæGROWSæASæPLANNEDæITæCREATESæ
significant opportunity for Sunny’s to grow, too.
Going forward, TechnoServe will be helping Sunny
TAILORæITSæPROCUREMENTæSYSTEMæTOæREACHæ0ROJECTæ.URTUREæ
farmers more directly and effectively, building on its
success and lessons learned in working with Britania in
5GANDAæDESCRIBEDæBELOW
Allfruit EPZ Ltd (Allfruit)æESTABLISHEDæINææISæAæFRUITæ
and vegetable processor based in Mombasa in Kenya.
The company focuses on mango, yellow passion fruit,
and chilies. Allfruit is the second processor approved to
SUPPLYæTHEæ#OCA#OLAæSYSTEMæUNDERæ0ROJECTæ.URTUREæ
)TæHASæPROCUREDæMANGOESæFROMæ0ROJECTæ.URTUREæFARMERSæ
for one season, with the second season approaching.
Because it is located in the coastal region of Kenya,
where Ngowe, the mango that goes into Minute
Maid Mango, grows best, the company benefits from
lower transportation costs for fresh fruit. Allfruit’s
relationship with the Coca-Cola system works the
SAMEæ WAYæ ASæ 3UNNYSæ WITHæ ''æ CONTRACTINGæ THEæ
company to supply mango puree to various bottlers,
and Coca-Cola Midi testing samples from each batch
for quality and safety.
Beverage Manufacturers
Coca-Cola Juices Kenya LtdæFOUNDEDæINææANDæBASEDæ
in Nairobi’s industrial area, is a Coca-Cola bottling
partner focused on manufacturing still beverages –
INCLUDINGæWATERæANDæJUICESænæFORæTHEæREGIONALæMARKETæ
Because it is relatively new to the market, unlike most
bottlers, it does not operate its own distribution system,
but rather sells finished product to six other Kenyan
bottlers that focus on sparkling beverages and already
have well-developed distribution systems throughout
the country – including small-scale Micro Distribution
Centers that serve the ubiquitous small shops and
kiosks in crowded, urban areas with frequent, small
deliveries of product. Coca-Cola Juices also exports
finished product to Uganda, Tanzania, Mauritius,
:IMBABWEæ :AMBIAæ ANDæ $JIBOUTIæ 4HEæ COMPANYæ
SOURCESææOFæ THEæMANGOæ PUREEæFORæ-INUTEæ-AIDæ
Mango from Sunny according to contracts negotiated
BYæ''
Century Bottling Company (CBC), acquired by Coca-
#OLAæ3ABCOæINææISæ#OCA#OLASæBOTTLINGæPARTNERæINæ
Uganda, manufacturing still and sparkling beverages
in facilities in Mbarara in Western Uganda and in
.AMANVEæ JUSTæ OUTSIDEæ THEæ CAPITALæ CITYæ OFæ +AMPALAæ
#"#æDISTRIBUTESæPRODUCTæDIRECTLYæTHROUGHææ-ICROæ
Distribution Centers serving small shops and kiosks
and through more traditional methods, such as lorry
TRUCKæTOæLARGERæCUSTOMERSæ#"#æSOURCESææOFæTHEæ
mango puree for Minute Maid Mango from Sunny and
Allfruit in Kenya according to contracts negotiated by
''æWITHæSUPPORTæFROMæ#OCA#OLAæ3ABCO
26 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Britania Allied Industries Ltd (Britania) was established
INæ 5GANDAæ INæ æ ASæ Aæ BREADæ ANDæ BISCUITæ MAKERæ
and later diversified to include fruit and vegetable
PROCESSINGæ ANDæ THEæ PRODUCTIONæ OFæ JUICESæ 5NLIKEæ
CCJK and CBC, Britania does not supply the Coca-
#OLAæ SYSTEMæ RATHERæ ITSæ JUICEæ BRANDSæ COMPETEæ WITHæ
The Coca-Cola Company’s. Britania procures and
PROCESSESæ MANGOESæ FROMæ 0ROJECTæ .URTUREæ FARMERSæ INæ
Uganda, where the Ngowe variety required for Minute
Maid Mango does not grow. The company uses the
local Sena variety mango for its Ladid brand marketed
in Uganda and South Sudan. TechnoServe has helped
the company develop a procurement system targeting
0ROJECTæ.URTUREæFARMERSæINCLUDINGæDESIGNATEDæAGENTSæ
pick-up schedules, route maps, and forums like factory
visits for communicating directly with farmers about
demand, quality specifications, and prices.
Exporter
East African Growers (EAG), based in Nairobi, is a leading
grower, processor, packer, and exporter of vegetables,
fruits, and flowers to premium markets primarily in
%UROPEæ %!'æ SOURCESæ HIGHQUALITYæ MANGOESæ FROMæ
0ROJECTæ .URTUREæ FARMERSæ INæ +ENYAæ 4ECHNO3ERVEæ HASæ
HELPEDæ %!'æ ESTABLISHæ RELATIVELYæ DIRECTæ CONNECTIONSæ
– through company staff or in some cases a single
middleman – enabling the company to capture a
greater share of the value than if it were to rely on longer
SUPPLYæCHAINSæ%!'æJOINSæ FARMERæTRAININGæSESSIONSæTOæ
explain quality specifications for exportable fruit, and
to provide guidance on production, harvesting and
PACKINGæ!TæSUCHæMEETINGSæ%!'æALSOæCOMMUNICATESæITSæ
volume demands for the season.
National Governments
The Kenyan Ministry of Agriculture (MOA) participates
with nine other ministries
in the Kenyan government’s
Agriculture Sector Coordination Unit, which was
ESTABLISHEDæ INæ æ TOæ ADDRESSæ THEæ FRAGMENTATIONæ
of responsibilities across ministries tasked with
implementing the Strategy for Revitalizing Agriculture
in Kenya. Today, it seeks to transform agriculture from
a subsistence activity into a business activity offering
income growth and rising standards of living for its
citizens, in line with the government’s Agriculture
3ECTORæ $EVELOPMENTæ 3TRATEGYæ æ !Sæ PARTæ
of this vision, the Kenyan government has put special
emphasis on high-value horticultural crops and
ONæ PARTNERINGæ STRATEGIESæ 4HEæ -/!æ SEESæ 0ROJECTæ
Nurture as a welcome contribution to these priorities.
Dr. Wilson Songa, Agriculture Secretary, participates in
PARTNERSHIPæGOVERNANCEæASæPARTæOFæTHEæ0ROJECTæ.URTUREæ
Steering Committee, described in the next section.
The Ugandan Ministry of Agriculture, Animal Industries
and Fisheries (MAAIF) also participates in partnership
GOVERNANCEæ FORæ 0ROJECTæ .URTUREæ WITHæ $Ræ /KAASAIæ
Opolot, Director of Crop Resources, serving on the
3TEERINGæ #OMMITTEEæ 0ROJECTæ .URTUREæ FITSæ SQUARELYæ
within the Ugandan government’s five-year Agriculture
3ECTORæ $EVELOPMENTæ 3TRATEGYæ ANDæ )NVESTMENTæ 0LANæ
æWHICHæPRIORITIZESæPRODUCTIVITYæANDæ
market access. For agriculture and other sectors, the
Ugandan government is pursuing public-private
PARTNERSHIPSæ THROUGHæ FORUMSæ LIKEæ THEæ 0RESIDENTIALæ
Investment Roundtable, designed to attract investment
and catalyze development.
Roles and Responsibilities Along the Value Chain
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 27
W
ith three founding partners and a host
of others involved, clear operating and
governance structures are critical.
The TechnoServe and CEWABU Project Teams drive day-
TODAYæOPERATIONSæFORæ0ROJECTæ.URTUREæ4HEæ4ECHNO3ERVEæ
0ROJECTæ 4EAMæ ISæ COMPRISEDæ OFæ THEæ 0ROJECTæ .URTUREæ
$IRECTORæ-ONITORINGææ%VALUATIONæ-ANAGERæ"UDGETæ
Analyst, and Kenya and Uganda staff. They contract
and oversee sub-contractors and other partners,
INCLUDINGæ 2EALæ )0-æ &#)æ !-!æ +!2)æ .A##2)æ
%QUITYæ "ANKæ ANDæ #ENTENARYæ "ANKæ 4HEæ #%7!"5æ
0ROJECTæ 4EAMæ ISæ COMPRISEDæ OFæ STAFFæ FROMæ THEæ STILLSæ
business and the public affairs and communications,
finance, and innovation units, and it reports monthly
TOæTHEæ#%7!"5æ0RESIDENTæANDæ$IRECTORSæ%ACHæOFæTHEæ
TWOæ 0ROJECTæ4EAMSæ MEETSæ ONCEæ Aæ WEEKæ ORæ MOREæ ANDæ
they coordinate with one another as needed.
The Core Operating Teamæ BRINGSæ KEYæ 0ROJECTæ 4EAMæ
members together with strategic and technical experts
from The Coca-Cola Company and TechnoServe to
share progress, discuss key issues, brainstorm solutions,
and decide on next steps. The Core Operating Team
also channels information and concerns to the Steering
Committee and Advisory Group for additional
GUIDANCEæ -EMBERSæINCLUDEæ THEæ4ECHNO3ERVEæ0ROJECTæ
.URTUREæ $IRECTORæ ANDæ $EPUTYæ $IRECTORæ FORæ THEæ %ASTæ
!FRICAæ 2EGIONæ THEæ #%7!"5æ 'ENERALæ -ANAGERæ ANDæ
3UPPLYæ#HAINæ -ANAGERæOFæ 3TILLSæ"EVERAGESæTHEæ ''æ
'LOBALæ#ATEGORYæ,EADERæFORæ*UICEæ0ROCUREMENTæANDæ*UICEæ
0ROCUREMENTæ-ANAGERæFORæ!FRICAæ ANDæREPRESENTATIVESæ
OFæ2)æ!SæNEEDEDæSUBJECTæMATTERæEXPERTSæSUPPORTEDæ
by the Gates Foundation also participate to advise on
SPECIFICæ ISSUESæ SUCHæ ASæ OPENINGæ UPæ %UROPEANæ RETAILæ
markets. They interact via monthly conference calls
and quarterly meetings and report semi-annually to
the Steering Committee.
The Steering Committee provides strategic direction
FORæ 0ROJECTæ .URTUREæ USINGæ REPORTSæ FROMæ THEæ #OREæ
Operating Team to assess progress, make key decisions,
and resolve any conflicts that cannot be managed
closer to the ground. The Steering Committee also
advises the Core Operating Team on relevant macro-
level issues and trends, including new opportunities
and technologies, changes in policy and world food
prices, and dynamics in national, regional and global
MARKETSæ -EMBERSæ INCLUDEæ THEæ #%7!"5æ 0RESIDENTæ
the Global Juice Center General Manager, the Gates
&OUNDATIONæ 0ROGRAMæ /FFICERæ THEæ 4ECHNO3ERVEæ %ASTæ
Africa Regional Director, and the Kenyan government’s
Agriculture Secretary and the Ugandan government’s
Director of Crops. The Steering Committee meets on
a semi-annual basis. Should the Steering Committee
put an issue to a vote, each organization casts a single
BALLOTæ IEæ #%7!"5æ ANDæ THEæ 'LOBALæ *UICEæ #ENTERæ
VOTEæTOGETHERæASæ4HEæ#OCA#OLAæ#OMPANYæ4OæDATEæ
the Steering Committee has not had to vote, instead
reaching consensus on ways forward based on data-
driven analysis.
The Advisory Group complements the strategic
direction provided by the Steering Committee by
providing more frequent guidance and support to the
Core Operating Team through monthly calls. Together,
the Advisory Group and Core Operating Team assess
progress, share lessons learned, identify challenges and
risks, and talk about solutions and next steps. The
Advisory Group is comprised of the Gates Foundation
0ROGRAMæ/FFICERæ#OCA#OLAæ#OMPANYæ0UBLICæ!FFAIRSæ
and Communications staff from headquarters in
!TLANTAæ ANDæ THEæ 4ECHNO3ERVEæ %ASTæ !FRICAæ 2EGIONALæ
Director.
Partnership Operating and Governance Structures
Figure 6. Operating and Governance Structures
Steering Committee
Core Operating Team
Advisory
Group
CEWABU Project Team
TechnoServe Project
Team
Sub-contractors and
other partners
28 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
INDICATORS:
t PG1#(TSFQPSUJOHBOJODSFBTFJOTBMFTWPMVNFGSPNQSFWJPVTZFBS
t PGUPOOBHFPGGSVJUUPFYQPSUQSPDFTTPSBOEGSFTIEPNFTUJDNBSLFU
channels per season
t PGGBSNFSTQSBDUJDJOHSFDPNNFOEFEBHSPOPNZQSBDUJDFT
t PGGBSNFSTSFQPSUJOHJODSFBTFTJODSPQZJFMET
t JODSFBTFJOUPUBMQSPEVDUJPOQFSGBSNFS
t JODSFBTFJONBSLFUFEQSPEVDFQFSGBSNFS
INDICATORS:
t "WFSBHFBOOVBMIPVTFIPMEFYQFOEJUVSFGPS
targeted farmers
t "WFSBHFBOOVBMIPVTFIPMEFYQFOEJUVSFGPS
targeted farmers on nutrition, health and
education
t /VNCFSPGUBSHFUFEIPVTFIPMETXJUI
permanent housing
t -FWFMPGGFNBMFQBSUJDJQBUJPOJOIPVTFIPME
decision-making
M
ONITORINGæANDæEVALUATIONæ-%æISæAæCRITICALæPARTæ
OFæ PARTNERSHIPæ OPERATIONSæ ENABLINGæ 0ROJECTæ
Nurture to spot issues and trends, course-correct
as needed, and leverage what is working well.
4EC H N O3E R V EæISæRESPONSIBLEæFORæ-%æRELATEDæTOæ0ROJECTæ
Nurture’s development impact. Using a “logical
framework” model, the organization tracks a wide range
of outputs, including numbers of participating farmers,
numbers of participating farmers implementing good
AGRICULTURALæ PRACTICESæ NUMBERSæ OFæ 0RODUCERæ "USINESSæ
Groups, and sales volumes. These outputs contribute
to outcomes including increases in productivity and
THEæ LEVELSæ OFæ SERVICEæ THATæ 0"'Sæ OFFERæ THEIRæ MEMBERSæ
These outcomes, in turn, contribute toward the overall
goal of increasing smallholder farmers’ fruit incomes.
That goal contributes to the “super goal” of improving
smallholders’ lives in ways that go beyond income.
0ROJECTæ.URTURESæOUTCOMEæGOALæANDæSUPERæGOALæTARGETSæ
and indicators are depicted in Figure 7.
TechnoServe monitors output and outcome indicators
regularly, using a variety of information sources. These
include weekly updates from TechnoServe staff and
TRAININGæPARTNERSæWEEKLYæSALESæREPORTSæFROMæ0"'SæBI
weekly fruit quality reports from processors, quarterly
farmer case studies, and semi-annual purchasing and
lending reports from processors and banks, among
others. This data is aggregated and combined with
farmer surveys to monitor goal and super goal indicators
on an annual basis. TechnoServe conducted a baseline
STUDYæ ATæ THEæ BEGINNINGæ OFæ 0ROJECTæ .URTUREæ ANDæ WILLæ
COMMISSIONæAæTHIRDæPARTYæEVALUATIONæWHENæTHEæPROJECTæ
ENDSæ/FæNOTEæ4EC H NO 3E R VE æMONITORSæ0ROJECTæ.URTURESæ
impact on women explicitly, collecting gender-
disaggregated data for relevant outputs, outcomes,
and goals and looking at gender-specific indicators
LIKEæWOMENSæPARTICIPATIONæINæ0"'æMEETINGSæWOMENSæ
access to and control over income, and women’s
influence over household decision-making.
The Coca-Cola Company is responsible for tracking
0ROJECTæ .URTURESæ BUSINESSæ RESULTSæ SUCHæ ASæ THEæ
profitability of Minute Maid Mango (the product that
USESæPUREEæMADEæFROMæFRUITæFROMæPARTICIPATINGæFARMERSæ
ANDæTHEæRETURNæONæITSææMILLIONæCASHæINVESTMENTæPAIDæ
TOæ 4E C H NO 3E R VE æ -INUTEæ -AIDæ -ANGOæ ISæ CURRENTLYæ
profitable, though there remains room to optimize
costs by streamlining the value chain even further
and helping processors reduce their operating costs.
#%7!"5æ EXPECTSæ TOæ RECOUPæ ITSæ æ MILLIONæ CASHæ
investment several times over in the next three to five
years by implementing these cost optimization measures
ANDæBYæREPLICATINGæKEYæELEMENTSæOFæTHEæ0ROJECTæ.URTUREæ
to capture benefits in other countries and commodities.
0ROJECTæ .URTURESæ #OREæ/PERATINGæ4E A Mæ ANDæ 3TEERINGæ
Committee are the partnership’s first and second lines
of defense when it comes to accountability for results.
!TæTHEæSAMEæTIMEæ-%æFEEDSæINTOæAæLASTæLINEæOFæDEFENSEæ
which is that annual funding disbursements from the
Gates Foundation and The Coca-Cola Company
to TechnoServe depend on the extent to which the
PROJECTSæDEVELOPMENTæIMPACTæTARGETSæAREæACHIEVEDæ4HEæ
donors can choose to disburse funds in full, in part, or
not at all.
Monitoring and Evaluation
Figure 7. Project Nurture Monitoring & Evaluation Framework
OUTCOMES:
t *NQSPWFE1SPEVDFS#VTJOFTT(SPVQTFSWJDFNBSLFUJOHBOEJOQVUTUP
farmer members
t *ODSFBTFEGBSNFSBQQMJDBUJPOPGJNQSPWFEBHSPOPNJDBMQSBDUJDFT
t *ODSFBTFEGBSNQSPEVDUJWJUZGPSTNBMMIPMEFSGBSNFSTJO,FOZBBOE6HBOEB
INDICATORS:
t *ODSFBTFJOTBMFTSFWFOVF
per farmer
t *ODSFBTFJOOFUSFWFOVF
per farmer
SUPER GOAL:
t *NQSPWFEMJWFMJIPPETGPSTNBMMIPMEFSNBOHP
and passion fruit farmers in Kenya and Uganda
GOAL:
t *ODSFBTFEGSVJUJODPNFGPS
smallholder farmers in Kenya
and Uganda
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 29
W
ith one year remaining in Uganda and a year
and a half remaining in Kenya, where the
MANGOæSEASONæENDSæLATERæTHEæ0ROJECTæ.URTUREæ
partners are focused on ensuring sustainability and
SCALEæOFæIMPACTæINæTHEæTWOæPROJECTæCOUNTRIESæASæWELLæASæ
gearing up for replication in other markets.
Ensuring sustainability and scale of
impact in Kenya and Uganda
0ROJECTæ .URTUREæ ISæ ONæ TRACKæ TOæ MEETæ ITSæ OVERARCHINGæ
OBJECTIVEæOFæDOUBLINGæTHEæFRUITæINCOMESæOFæMOREæTHANæ
50,000 smallholder farmers in Kenya and Uganda.
The partners are now taking steps to maximize the
GAINSæTHATæCANæBEæMADEæBYæTHEæTIMEæTHEæPROJECTæENDSænæ
and to make sure those gains are sustainable.
sæ Further aggregating farmers:æ %XISTINGæ 0RODUCERæ
Business Groups aggregate farmers into groups,
giving farmers more bargaining power than they
would have on their own and enabling buyers reach
THEMæ MOREæ COSTEFFECTIVELYæ (OWEVERæ 0"'Sæ AREæ
STILLæRELATIVELYæSMALLæWITHææFARMERSæEACHæANDæ
because they are not legal entities, they are limited
in what they can do. As a result, TechnoServe has
BEGUNæTOæHELPæ0"'SæJOINæTOGETHERæINæLARGERæMOREæ
formal groupings called Market Service Centers
-3#Sæ4HEæTARGETæISæTOæHAVEæFOURæ-3#SæOPERATIONALæ
BYæ THEæ ENDæ OFæ 0ROJECTæ .URTUREæ4HESEæ -3#Sæ WILLæ
AGGREGATEæAPPROXIMATELYææ0"'SæEACHæTOæFACILITATEæ
buyer interaction even more. As legal entities, they
will also be able to attract investment and provide
a broad range of needed agricultural goods and
services, ranging from inputs to transport, as well
as marketing opportunities for products other than
fruit to their members.
sæ Ensuring sustained access to farmer support
services: 0ROJECTæ .URTUREæ FARMERSæ AREæ STILLæ INæ THEæ
process of improving production and learning how
to deal most effectively with buyers in the various
market channels. In addition, markets are always
changing, and farmers will need new information,
new skills, and even new structures – like the MSCs
Next Steps
– to keep up. As a result, TechnoServe is exploring
a variety of strategies for sustaining farmers’ access
to support services when the organization exits
INæ æ 4HESEæ INCLUDEæ HELPINGæ #OMMUNITYæ
%XTENSIONæ3ERVICEæ0ROVIDERSæESTABLISHæTHEMSELVESæASæ
independent businesspeople; inviting government
extension agents to its trainings; and building the
CAPACITYæ OFæ LARGEæ BUYERSæ næ SUCHæ ASæ %ASTæ !FRICANæ
Growers, Sunny, and Britania – to work more
directly with the smallholder farmers that supply
them.
sæ Using Project Nurture passion fruit juice in Coca-Cola
juice beverages: The Company is currently testing
passion fruit concentrate grown and processed in
Kenya, and comparing it to concentrate from other
sources. If it proves competitive, there will be a
need to increase the volume of passion fruit grown
and available to purchase. Here TechnoServe’s work
with nurseries to develop clean planting material
for interested farmers will be key.
sæ Encouraging farmers to plant new mango varieties:
The Company has spent significant time, effort, and
resources testing the varieties of mango and passion
FRUITæGROWNæBYæ0ROJECTæ.URTUREæFARMERSæ7HILEæSOMEæ
HAVEæ PROVENæIDEALæ FORæ JUICEæ næ LIKEæ .GOWEæ !PPLEæ
and Tommy Atkins – other varieties, especially in
Uganda, have proven sub-optimal for reasons of
FLAVORæSWEETNESSæFIBROUSNESSæORæJUICEæCONTENTæ!SæAæ
result of the testing, the partners can now encourage
farmers to plant more of the varieties with the best
markets. However, encouraging farmers to plant
new trees is very different than helping them
improve yields from existing trees. It requires
farmers to invest, with a payback period that may
be years long. This underscores the importance of
sustaining farmers’ access to support services after
0ROJECTæ.URTUREæENDS
sæ Using additional mango varieties in Coca-Cola
beverages: The Company is launching a new
product using the Apple variety mango in the
$EMOCRATICæ 2EPUBLICæ OFæ #ONGOæ INæ EARLYæ æ
30 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Its 5Alive brand in the United Kingdom will use
five different varieties, including both Ngowe and
Apple.
sæ Experimenting with additional products using
existing mango varieties: While some mango
VARIETIESæ GROWNæ BYæ 0ROJECTæ .URTUREæ FARMERSæ HAVEæ
PROVENæ SUBOPTIMALæ FORæ JUICEæ 4HEæ #OCA#OLAæ
Company continues to experiment with innovative
USESæ FORæ THEæ FRUITæ 0OSSIBILITIESæ INCLUDEæ BLENDINGæ
with other ingredients like honey, producing fruit
bits for smoothie-type beverages.
Gearing up for replication
The Coca-Cola Company, the Gates Foundation, and
TechnoServe are each gearing up for replication – but in
dramatically different ways, given their organizational
missions and business models.
The Coca-Cola Company, in the context of its aim to
TRIPLEæ THEæ SIZEæ OFæ ITSæ JUICEæ BUSINESSæ BYæ æ ISæ NOWæ
IDENTIFYINGæLESSONSæLEARNEDæFROMæ0ROJECTæ.URTUREæANDæ
distilling key elements of a model that can be used
to develop sustainable agricultural supply chains
around the world. In a nutshell, that model is strategic
partnership all along the value chain, from “grove to
glass.” Key elements include:
sæ !æFIRMæGROUNDINGæINæWHATæISæNEEDEDæFORæTHEæJUICEæ
product in question
sæ #LOSEæRELATIONSHIPSæBETWEENæPROCESSORSæANDæGROWERS
sæ (IGHæLEVELSæOFæFARMERæAGGREGATIONæUSINGæ0RODUCERæ
Business Groups, Market Service Centers, or other
models, such as nucleus farm-outgrower schemes
sæ 0ARTNERSHIPSæ FORæ FARMERæ CAPACITYBUILDINGæ næ WITHæ
donors or exporters, for example – since the bulk
of a smallholder’s fruit should go into fresh market
channels where it can fetch higher prices
%LEMENTSæOFæ THISæ MODELæ HAVEæ ALREADYæ BEENæ REPLICATEDæ
in Haiti, though with farmers there devastated by the
æEARTHQUAKEæTHEæINTENTæISæPRIMARILYæPHILANTHROPICæ
for now. Further replication is underway in India,
ANDæUNDERæCONSIDERATIONæINæ:IMBABWEæ.IGERIAæAND
or Ghana, where relevant fruit varieties and processor
configurations are under review. A range of mechanisms
are being developed to disseminate information
about the model even more widely, and to encourage
independent decision-makers throughout the Coca-
Cola system to implement it. These include internal
STAFFæ COMMUNICATIONSæ WITHINæ ''æ ANæ IMMERSIONæ
program offered by Company’s Juice University; and
its annual Bottler Conference.
0ROJECTæ.URTUREæHASæ ENABLEDæ TechnoServe to identify
specific gaps along the mango and passion fruit value
chains that must be addressed for those value chains
to become fully efficient and effective – as drivers of
market value and of positive, long-term impact on all
the players involved. As an organization committed
to helping smallholders build competitive farms and
businesses, TechnoServe now plans to establish a series
of partnerships to address these gaps – both continuing
0ROJECTæ.URTURESæWORKæONæTHEæMANGOæANDæPASSIONæFRUITæ
value chains in Kenya and Uganda and expanding
it to other fruits and other geographies in Africa.
The organization plans to pursue opportunities to
continue working with its key partner The Coca-Cola
#OMPANYæASæITæEXPANDSæANDæMAINSTREAMSæTHEæ0ROJECTæ
Nurture model in supply chain management efforts
THROUGHOUTæTHEæ#ENTRALæ%ASTææ7ESTæ!FRICAæ"USINESSæ
Unit. TechnoServe will also pursue similar partnerships
with other multinationals, local businesses such as
processors, input suppliers, and service providers, and
government agencies.
The Bill & Melinda Gates Foundation seeks to catalyze
business models that are sustainable and have the
potential to lift millions of smallholder farmers out of
hunger and extreme poverty; it is the foundation’s hope
THATæTHEæ0ROJECTæ.URTUREæMODELæCANæBEæREPLICATEDæANDæ
sustained in the long term through new partnerships.
The foundation is confident that the benefits of the
approach have been demonstrated, giving other players
the incentive to fund such partnerships on their own
going forward. In addition to positive financial impact
on the poor, positive impact on business performance
Next Steps
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 31
is a necessary indicator that the model is sustainable
once catalytic support from philanthropy ends. Now
that multiple programs in support of widely-grown,
high-value cash crops have been launched and business
impact has been demonstrated, the foundation has
started to transition its support of these crops to the
private sector and governments as part of its exit
strategy.
32 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
A value chain is only as strong as its weakest link.
0ROJECTæ .URTUREæ HASæ THEREFOREæ TAKENæ ANæ INTEGRATEDæ
approach, working to make sure every player has the
assets and capabilities it needs to be profitable.
sæ At the farmer level, the partnership has built
agricultural, finance, and marketing skills and
market knowledge covering quality specifications,
prices, channels, and individual traders; the
partnership has also opened up access to finance
sæ At the trader level, the partnership has built market
knowledge covering farm locations, varieties,
ANDæ PROJECTEDæ VOLUMESæ ASæ WELLæ ASæ THEæ QUALITYæ
requirements of different buyers
sæ At the buyer level, the partnership has helped
develop new sources of quality supply
sæ For buyers that process fruit for Coca-Cola juices,
the partnership has helped ensure that quality,
phytosanitary, environmental, and workplace
standards are in line with Coca-Cola Company
requirements
sæ For bottlers, the partnership has helped develop
certified sources of key ingredients needed to meet
AGGRESSIVEæJUICEæBUSINESSæGROWTHæGOALS
&ORæ0ROJECTæ.URTUREæTOæWORKæ4HEæ#OCA#OLAæ#OMPANYæ
also had to develop a profitable product: Minute
Maid Mango, which uses the Ngowe variety grown
BYæ0ROJECTæ.URTUREæFARMERSæ4HEæ#OMPANYæCONTINUESæ
to experiment with different mango and passion fruit
varieties, analyzing their taste profiles and suitability
for processing and developing promising blends.
P
ROJECTæ.URTUREæISæAæRICHæSOURCEæOFæLESSONSæLEARNEDæ
for the partners themselves and for other
companies, donors, NGOs, and governments
interested in partnering to build inclusive value chains.
These lessons relate to building inclusive value chains,
building cross-sector partnerships, and building the
capacity for scale. The key take-aways are:
When building inclusive value chains… design for
sustainability: The comparative advantage of business
as a development impact driver is the potential to be
self-sustaining. But unleashing this potential requires
careful attention to the incentives and capabilities of
each player in the value chain and in the enabling
environment. The role of government in creating the
enabling environment is essential.
When building cross-sector partnerships… manage
complexity: Collaboration creates value by channeling
differences in perspective, incentives, and capabilities
toward common goals. These differences exist among
partner organizations and also within them. Internal
complexity is often overlooked – yet it is an important
factor in making the business case, executing smoothly,
and replicating successful models.
When building the capacity for scale… make needed
awareness and capabilities mainstream: While cross-
sector partnerships to develop inclusive value chains
are emerging with increasing frequency, they are still
a niche phenomenon. Many more are needed to meet
today’s business and development goals. This will
require raising awareness, changing mindsets, and
putting capabilities and systems in place within and
across would-be partner organizations.
Lessons Learned
BUILDING INCLUSIVE VALUE CHAINS: Designing for Sustainability
Make sure every player in the value chain is profitable
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 33
While the market linkages TechnoServe has built are
expected to endure, there is some concern that gaps will
be left in areas where it has played the role of service
provider – most notably of agricultural and business
skills training for farmers, who are still in the process of
improving the quality of their crops and in some cases
HAVEæJUSTæBEGUNæTOæGROWæNEWæIMPROVEDæVARIETIESæ
It was necessary for TechnoServe to step up to the plate
as a direct service provider in order to achieve the large-
scale and relatively short-term goal of doubling the
FRUITæINCOMESæOFæMOREæTHANææFARMERSæBYææ
With a time horizon of only four years, recruiting,
training, farmer group strengthening, and marketing
had to begin right away. Quick wins are critical,
showing what is possible and motivating value chain
Just as it is necessary to strengthen the entire value
chain, it is often necessary to strengthen the enabling
environment in which the value chain is embedded.
The enabling environment includes access to
knowledge, skills, technology, financial services, and
water, energy, and transportation infrastructure as
well as supportive regulation and effective public
administration of legal, tax, and other systems. Often,
the enabling environment is most problematic for
THEæ SMALLESTæ PLAYERSæ INæ THEæ VALUEæ CHAINæ næ INæ 0ROJECTæ
Nurture’s case, the smallholder farmers.
Strengthening the enabling environment for farmers
has been the primary role of TechnoServe, with
financial support from The Coca-Cola Company and
the Gates Foundation. On one hand, TechnoServe has
been an important player in its own right as a provider
of market information and agricultural and business
skills training for farmers and traders. On the other
hand, the organization has acted as an intermediary,
BRINGINGæ INæ OTHERæ PLAYERSæ TOæ PROVIDEæ CREDITæ %QUITYæ
"ANKæ INæ +ENYAæ ANDæ #ENTENARYæ "ANKæ INæ 5GANDAæ
improved seed varieties (KARI in Kenya and NaCRRI
INæ 5GANDAæ ANDæ SEEDLINGSæ +!2)æ .A#22)æ ANDæ
NUMEROUSæSMALLæINDEPENDENTæNURSERIESæ4ECHNO3ERVEæ
has also facilitated linkages within the value chain,
BRINGINGæINæEXPORTERSæ%ASTæ!FRICANæ'ROWERSæINæ+ENYAæ
ANDæ PROCESSORSæ "RITANIAæ INæ 5GANDAæ !LLæ OFæ THESEæ
players expect to continue doing business with one
ANOTHERæ WHENæ 0ROJECTæ.URTUREæ COMESæ TOæ Aæ CLOSEæ ANDæ
4ECHNO3ERVEæEXITSæINæ
At the same time, when it comes to strengthening the
enabling environment, there are important roles that
government can play – and often must play, because it
is the only stakeholder with the authority to do so. For
example, only government can set tax rates and tariffs,
regulate the flow of goods across borders, and set safety
and other standards. Most governments are central in
THEæCONSTRUCTIONæOPERATIONæANDORæREGULATIONæOFæROADSæ
rail lines, ports, and water and energy infrastructure.
They educate and often facilitate access to health care
for the labor force. Many governments have long-
standing agricultural extension services as well.
It is important to stress that government policies and
programs affect the enabling environment not only
for smallholder farmers, but for all the players in
the value chain – shaping their economics and their
incentives to do business together. As a result, while
the governments of Kenya and Uganda have served
ONæTHEæ0ROJECTæ.URTUREæ3TEERINGæ#OMMITTEEæTHEREæISæAæ
sense that greater involvement in the implementation
OFæTHEæPROJECTæWOULDæHAVEæBEENæBENEFICIAL
Strengthen the enabling environment
Build institutional capacity and incentives to sustain impact into the long term
BUILDING INCLUSIVE VALUE CHAINS: Designing for Sustainability
BUILDING INCLUSIVE VALUE CHAINS: Designing for Sustainability
34 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
participants for what can otherwise be perceived as a
long haul.
3USTAININGæ THOSEæ GAINSæ BEYONDæ æ WHENæ
TechnoServe exits, requires a different approach.
Markets are constantly changing, and farmers will need
new information, new skills, and even new structures
TOæADAPTæ4HEREæISæSOMEæEVIDENCEæTHATæITæCANæTAKEææ
years or more for inclusive business models and value
chains to solidify and reach scale.
And of course it is
in the long term that development multiplier effects
unfold – that higher incomes translate into improved
health outcomes, for instance, or that newly-educated
children capture new economic opportunities and
bring new skills and services back to their villages.
As a result, in addition to direct service provision,
TechnoServe is pursuing a strategy of institutional
capacity-building, making sure permanent players
in the enabling environment, including processors,
exporters, and government agencies, can pick up
where it leaves off. It can be very difficult to balance
direct service provision to catalyze short-term gains
and institutional capacity-building to ensure those
gains can be sustained, if not multiplied. TechnoServe
is exploring a variety of methods to build the
institutional capacity – and, critically, the incentives
– required. For example, it is helping Community
%XTENSIONæ 3ERVICEæ 0ROVIDERSæ ESTABLISHæ THEMSELVESæ ASæ
independent businessmen, rather than TechnoServe
contractors. It is inviting government extension agents
to its trainings to learn more about mango and passion
fruit. It is exploring technology-based systems, such
ASæTEXTæ MESSAGEæ TOæ DISSEMINATEæINFORMATIONæ 0ERHAPSæ
most importantly, TechnoServe is building the capacity
of larger buyers within the value chain to work more
directly with the smallholder farmers that supply
THEMæ &ORæ EXAMPLEæ %ASTæ !FRICANæ 'ROWERSæ INæ +ENYAæ
is already starting to provide market information like
QUALITYæSPECIFICATIONSæANDæDEMANDæPROJECTIONSæASæWELLæ
as agricultural and business skills training. Britania,
in Uganda, is also providing market information,
contracting dedicated agents to engage with farmers,
and considering how best to provide agricultural
EXTENSIONæSERVICESæ3UNNYæ0ROCESSORSæINæ+ENYAæALREADYæ
has a dedicated agronomist on staff.
Consider how best to engage government
It is increasingly acknowledged that country ownership
of development efforts is critical. For donors
involved in the aid effectiveness movement, “country
ownership” means national government participation
in agenda setting and coordination and the use of
existing country systems to deliver assistance wherever
possible. With many governments plagued by scarce
resources and governance gaps, the division of labor
between public and private sectors in partnerships like
0ROJECTæ.URTUREæHASæBECOMEæAæSUBJECTæOFæDEBATEæ"YæTHEæ
same token, governments “may be wary of partnering
with other sectors because of sensitivities about specific
interest groups seeking to obtain favors or evade public
sector accountability processes. This is particularly
the case with the private sector.”
æ
As a result, new
models of public-private collaboration are emerging,
being tested, and evolving. A three-year research
program on business partnership with governments in
!FRICAæBYæTHEæ'ERMANæDEVELOPMENTæAGENCYæ'):æANDæ
4HEæ 0ARTNERINGæ )NITIATIVEæ 40)æ ATæ THEæ )NTERNATIONALæ
Business Leaders Forum has generated a useful guide
for those developing such models.
0ROJECTæ .URTUREæ HASæ ENGAGEDæ THEæ GOVERNMENTSæ OFæ
Kenya and Uganda at several levels. Operationally, it
has supported agricultural research institutions to
produce and commercialize new varieties of passion
fruit, capitalizing on years of public investment by the
government and international donors. In addition,
TechnoServe has invited agricultural extension agents to
PARTICIPATEæINæTRAININGæOFFEREDæTOæ#OMMUNITYæ%XTENSIONæ
3ERVICEæ 0ROVIDERSæ ANDæ FARMERSæ THOUGHæ ATTENDANCEæ HASæ
Lessons Learned
BUILDING INCLUSIVE VALUE CHAINS: Designing for Sustainability
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 35
For any company considering a multi-year, multi-
million dollar commitment of any kind, the business
case is essential. The business case is also essential for
donors and NGOs like the Gates Foundation and
TechnoServe, which look to catalyze sustainable, scalable
business models that continue generating development
impact long after the grant period. For this reason,
donors and NGOs may even see the business case in
more strictly financial terms than a company.
For a company, the business case may be multi-faceted,
spanning bottom line benefits like lower supply costs
as well as reputational benefits like positive publicity,
a leadership position, and good relationships with
stakeholders such as governments. Reputational benefits
AREæ OFTENæ USEDæ TOæ JUSTIFYæ COMPANIESæ PHILANTHROPICæ
investments, but they can also be an important part
OFæ THEæ JUSTIFICATIONæ FORæ COREæ BUSINESSæ INVESTMENTSæ
especially when those investments are the first of their
kind, intended to pilot new ways of doing business with
UNCERTAINæ FINANCIALæ RETURNSæ )Næ REPLICATIONæ PROJECTSæ næ
when it is easier to gauge expected returns – reputational
benefits may take a back seat in the business case, though
companies will nevertheless want to realize them. The
nature of the business case will affect the nature and
extent of the due diligence that is done. For example,
THEæ FINANCIALæ DUEæ DILIGENCEæ DONEæ FORæ 0ROJECTæ .URTUREæ
WASæFAIRLYæQUICKæ7ITHæTHEæBENEFITæOFæ0ROJECTæ.URTURESæ
experience, the Company was in a position to do more
RIGOROUSæ FINANCIALæ DUEæ DILIGENCEæ FORæ 0ROJECTæ 5NNATIæ Aæ
SIMILARæPROJECTæINITIATEDæLATERæINæ)NDIA
7HENæ THEæ BUSINESSæ CASEæ FORæ Aæ PILOTæ PROJECTæ ISæ MULTI
faceted, it is critical to communicate clearly about
the respective importance and degree of certainty of
the different components. Reputational benefits and
bottom-line benefits were both important parts of
THEæ BUSINESSæ CASEæ FORæ 0ROJECTæ.URTUREæFORæ4HEæ #OCA
Cola Company. But the reputational benefits were
clear, relatively certain and short-term whereas the
bottom-line benefits were not as clear at the outset.
!Sæ Aæ RESULTæ WHENæ THEæ NEWLYAPPROVEDæ PROJECTæ WASæ
handed over to mainstream business managers within
#%7!"5æ TOæ IMPLEMENTæ THEæ INITIALæ CONCLUSIONæ WASæ
THATæ 0ROJECTæ .URTUREæ WASæ NOTæ COREæ BUSINESSæ 4HISæ
perception has since evolved, but it took time to
CHANGEæ !Sæ ITæ HASæ CHANGEDæ #%7!"5Sæ APPROACHæ TOæ
STAFFINGæ ANDæ MANAGINGæ THEæ PROJECTæ HASæ ALSOæ CHANGEDæ
becoming much more embedded in the day-to-day
responsibilities of the still beverage supply chain team.
BEENæLOWæ!TæAæSTRATEGICæLEVELæ0ROJECTæ.URTUREæHASæENGAGEDæ
government representatives as members of the Steering
Committee, where they bring critical public policy
information, point out existing resources and programs
that can be leveraged, facilitate contact with district-
level officials, and help problem-solve by sharing lessons
LEARNEDæFROMæOTHERæINITIATIVESæ)NæADDITIONæ0ROJECTæ.URTUREæ
representatives participate in forums for public-private
dialogue hosted by both governments. In Uganda, for
EXAMPLEæ REPRESENTATIVESæ PARTICIPATEæ INæ THEæ 0RESIDENTIALæ
Investors Roundtable, where the private sector and
government discuss investment opportunities and
challenges and what each party can do to address them.
Could there be better or deeper ways for companies,
donors, NGOs to engage with governments? When it
comes to building sustainable, scalable, and replicable
inclusive business models and value chains, what
is the optimal partnership-government interface?
4HEæ 0ROJECTæ .URTUREæ PARTNERSæ BELIEVEæ THEREæ WOULDæ
be value in engaging governments in the design and
early implementation stages to understand their
priorities for the sector in question, determine how
the partnership could drive progress against those
priorities, and identify actions the government could
undertake as full partners – assuming responsibility,
sharing risk, and gaining value in return.
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
Build a clear and comprehensive business case
36 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Today’s multinational companies, global NGOs,
public and private donors, and national governments
are complex organizations, operating at multiple levels
through multiple units with their own responsibilities
ANDæINCENTIVESæ!SæAæRESULTæPARTNERINGæCANæINVOLVEæJUSTæ
as much internal collaboration within each partner as
external collaboration among them. One of the golden
RULESæOFæPARTNERSHIPæISæTHATæTOæSUCCEEDæTHEæOBJECTIVESæOFæ
the partners must align. It is equally true – but much
LESSæDISCUSSEDænæTHATæTHEæOBJECTIVESæOFæINDIVIDUALSæANDæ
departments within the partners must align.
In Coca-Cola’s case, for example, while a small set
of senior leaders and working-level champions were
CRITICALæ INæ GETTINGæ 0ROJECTæ .URTUREæ OFFæ THEæ GROUNDæ
IMPLEMENTINGæTHEæPROJECTæMEANTæGETTINGæTHEæ#ENTRALæ
%ASTæ æ 7ESTæ !FRICAæ "USINESSæ 5NITæ 'LOBALæ *UICEæ
#ENTERæ 'ROVEæ æ 'LASSæ THEæ 2ESEARCHæ æ )NNOVATIONæ
UNITæANDæ'LOBALæ0UBLICæ!FFAIRSæANDæ#OMMUNICATIONSæ
all to work together. Coca-Cola staff have also had to
ALIGNæTHEæ#OMPANYSæJUICEæBOTTLINGæPARTNERSæINæ+ENYAæ
and Uganda, Coca-Cola Juices and Century Bottling
Company, and the processors that supply them with
puree – complex, strategic business conversations that
are not easy. Staff from these different groups came
to the table with different backgrounds, perspectives,
interests, and incentives, and aligning them took time.
It is important to remember that hybrid strategies
LIKEæ 0ROJECTæ .URTURESæ næ COMBININGæ COREæ BUSINESSæ
and philanthropy to create business opportunity and
development impact – are still very new. Within the
mainstream business, in particular, staff may have
had little exposure to the idea that it is possible to
do both, or that a foundation and an NGO could
serve as business partners. Deliberate and explicit
COMMUNICATIONæ ISæ NECESSARYæ 0ARTNERSHIPæ OPERATINGæ
and governance structures can help, as outlined below.
Design efficient, effective partnership operating and governance structures
6ERYæSOONæAFTERæTHEæPARTNERSHIPæWASæLAUNCHEDæ0ROJECTæ
Nurture managers from The Coca-Cola Company,
TechnoServe, and the Gates Foundation set up the
Core Operating Team and Steering Committee,
DESCRIBEDæ ONæ PAGEæ æ 4HESEæ STRUCTURESæ HAVEæ PLAYEDæ
Aæ CRITICALæ ROLEæ INæ ALIGNINGæ OBJECTIVESæ ANDæ CHANNELINGæ
organizational complexity in ways that optimize the
value the partnership creates.
First, these were familiar, business-like structures for
#%7!"5SæMAINSTREAMæBUSINESSæMANAGERSæAæWELCOMEæ
surprise to them at the time – an early indication that
the partnership was intended to support mainstream
business operations and deliver business benefits, as
well as development impact and reputational benefits.
Second, the operating procedures of both structures
created regular opportunities for individuals in
different departments as well as different organizations
TOæ INTERACTæ UNDERSTANDæ HOWæ THEIRæ OBJECTIVESæ ALIGNEDæ
FACEæ CHALLENGESæ TOGETHERæ JOINTLYæ PROBLEMSOLVEæ
demonstrate follow-through, and build trust – another
golden rule for partnership, and a process that cannot
be leapfrogged.
&INALLYæ 0ROJECTæ .URTURESæ OPERATINGæ ANDæ GOVERNANCEæ
structures have facilitated learning and course
correction throughout the partnership. There are many
challenges involved in developing inclusive business
models and value chains, and it is impossible to know
all the solutions in advance – it is sometimes difficult
even to identify all the challenges in advance. In
addition, the circumstances under which partnerships
are formed often preclude long research periods, with
political or financial windows of opportunity that
Lessons Learned
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
Align objectives not only among partners, but also within partners
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 37
)NæPROJECTSæINTENDEDæTOæPILOTæNEWæWAYSæOFæDOINGæBUSINESSæ
publicity can raise expectations it is uncertain whether
the partners will be able to fulfill, and which take staff
TIMEæTOæMANAGEæ7HENæ0ROJECTæ.URTUREæWASæLAUNCHEDæ
with an announcement that the partnership would seek
to bring more than 50,000 small farmers into Coca-
Cola’s supply chain, for example, farmers with mangoes
to sell began to flood the Company’s Nairobi office
with calls – and the partners hadn’t even begun farmer
recruiting or certified a processor that could buy and
transform their mangoes into puree for beverages.
At the same time, publicity can be good motivation
for creative thinking and problem-solving when a pilot
PROJECTæHITSæTHEæINEVITABLEæBUMPSæINæTHEæROADæ0ROJECTæ
Nurture has hit several – like the discovery that some
of the mango and passion fruit varieties grown by
participating farmers in Uganda weren’t optimal for
JUICEæ )Fæ THEæ PARTNERSæ HADNTæ ANNOUNCEDæ THEIRæ TARGETSæ
publicly, they might have been tempted simply to
revise them downward. Instead, they doubled down
and found solutions, and are on track to meet their
targets.
The pros and cons of publicity can be balanced, first
and foremost by anticipating and planning for them.
Resources must be budgeted for the staff time required.
A staged approach to communication can also help. For
EXAMPLEæ4HEæ(AITIæ(OPEæ0ROJECTæAæPARTNERSHIPæBETWEENæ
The Coca-Cola Company, USAID, the Multilateral
Investment Fund of the Inter-American Development
Bank, and TechnoServe, replicates key elements of
0ROJECTæ.URTUREæ(OWEVERæ(AITIæ(OPEæWASæCONCEIVEDæ
TOæ HELPæ REBUILDæ (AITIæ AFTERæ THEæ DEVASTATINGæ æ
earthquake, and as such, it is primarily a philanthropic
PROJECTæ)TSæMAINæGOALæISæTOæDOUBLEæTHEæFRUITæINCOMESæOFæ
æSMALLHOLDERæFARMERSæBYæIMPROVINGæPRODUCTIONæ
marketing and sales of fresh mango. The Coca-Cola
Company is also working on the feasibility of sourcing
PUREEæMADEæFROMæTHESEæFARMERSæMANGOESæFORæITSæJUICESæ
which would mean an additional market channel and
source of income. However, communications refrain
from creating the expectation that the Company will
source from participating farmers until they have
reached the necessary levels of productivity and quality,
and until the Company has identified the right variety
and a clear business case.
need to be seized. Learning by doing is essential, but
it does not translate into continuous improvement on
its own. Concrete mechanisms are needed. The Core
Operating Team and Steering Committee helped
translate learning into continuous improvement by
offering regular opportunities to surface and address
issues as they arose, eliminating the need to convene
a special meeting in the event of a problem – which
can be sufficiently awkward as to discourage it from
HAPPENINGæ 0ROJECTæ .URTUREæ HASæ ENJOYEDæ THEæ ADDEDæ
advantage of good personal relationships among the
staff involved. Key individuals from The Coca-Cola
Company, TechnoServe, and the Gates Foundation
share a solutions orientation and get on well with one
another. Rather than point fingers when things don’t
go according to plan, they roll up their sleeves and
figure out what to do next. For example, a key part of
0ROJECTæ.URTUREæHASæBEENæTHEæDEVELOPMENTæANDæLAUNCHæ
OFæAæNEWæJUICEæPRODUCTæ-INUTEæ-AIDæ-ANGOæWHICHæ
uses participating farmers’ fruit. As the product launch
drew closer, it became clear that the Company’s original
PROJECTIONSæOFæDEMANDæFORæMANGOæWEREæHIGHERæTHANæTHEæ
JUICEæSECTORæCOULDæINITIALLYæSUPPORTænæCASTINGæDOUBTæONæ
the partners’ ability to reach the development impact
targets they had set, including farmer reach, volume
sales, and income generated. One option was to revise
those targets downward. However, working together,
THEæPARTNERSæWEREæABLEæTOæADJUSTæTHEIRæSTRATEGYæINæREALæ
time to shift a greater percentage of farmers’ produce
into fresh market channels, and stay on course to meet
their original development impact goals.
Proactively manage the expectations that publicity creates
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
38 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Large, multinational companies report to shareholders
every year, if not every quarter, and they manage
their performance accordingly. Company-level targets
cascade down to the individual level, where staff are
assigned specific roles and held responsible for specific
RESULTSæ 0ILOTæ PROJECTSæ WHICHæ AREæ BYæ DEFINITIONæ NOTæ
guaranteed to lead to the expected results within the
expected timeframe, can be perceived to be extra work
– or, worse, extra opportunity to fail.
4OæGETæPILOTæPROJECTSæTESTINGæNEWæWAYSæOFæDOINGæBUSINESSæ
off the ground, senior leaders must be thinking about
long-term results and creating the space for staff to
work toward them. Within The Coca-Cola Company,
SENIORæ LEADERSHIPæ VISIONæ ANDæ SUPPORTæ FORæ 0ROJECTæ
Nurture came from three levels: the head of the Global
Juice Center, Guy Wollaert; the head of the Central,
%ASTæANDæ7ESTæ!FRICAæ"USINESSæ5NITæ.ATHANæ+ALUMBUæ
and the head of the entire company, Chairman and
#%/æ-UHTARæ+ENT
Working-level champions within the company also play
critical roles, as do strong and inspirational partners
– sometimes even helping to get senior leadership on
board. Within the company, public affairs staff can be
good champions, because their individual performance
GOALSæRELATEæTOæCORPORATEæOBJECTIVESæLIKEæLEADERSHIPæANDæ
relationship building, giving them more flexibility than
the average line manager. But the mainstream business
perspective is important, too. A public affairs executive
ANDæAæJUICEæBUSINESSæSTRATEGISTæWORKEDæTOGETHERæTOæGETæ
0ROJECTæ.URTUREæOFFæTHEæGROUNDæWITHINæ#OCA#OLAæ+EYæ
individuals within The Coca-Cola Company’s external
partner organizations, The Gates Foundation and
TechnoServe, were also instrumental in conveying the
vision and opportunity to Company leadership and
obtaining their buy-in for the partnership.
There are exceptional individuals to be found within
any company. However, company leaders can increase
the pool of great people available to drive initiatives
LIKEæ0ROJECTæ.URTUREæBYæCREATINGæPOSITIONSæOUTSIDEæTHEæ
usual corporate performance management system and
incentive structure. One approach is to assign high-
POTENTIALæ EMPLOYEESæ TOæ RUNæ PILOTæ PROJECTSæ ASæ PARTæ OFæ
leadership development programs. Another common
recommendation is to create separate structures or
skunk-works.
However, experience using such
structures to develop new inclusive business models has
been mixed; more strategic and operational integration
may be needed to survive leadership transitions and
ensure that successful innovations are mainstreamed
into the core business where they can be scaled up.
0ROJECTæ .URTUREæ ISæ TIGHTLYæ LINKEDæ TOæ 4HEæ #OCA#OLAæ
Company’s core business strategy and goals, and it
is now managed by people in a position to scale and
replicate it in other countries and commodities.
Put deliberate strategies and systems in place to bring successful pilots to scale
In the inclusive business field, there is no shortage
of models that appear to work on a small scale, or
in one country – but for some reason, have not been
replicated. This is even true for models developed
by large multinational corporations which, at least
in theory, have greater capacity to replicate than the
average individual entrepreneur.
Of course, differences in culture, consumer preferences,
and the regulatory environment across countries come
into play. For example, regulations affecting the role
mobile network operators can play in providing
financial services have kept the mobile payment models
that have been so successful in countries like Kenya and
THEæ0HILIPPINESæFROMæTAKINGæOFFæINæMANYæOTHERæPLACES
Lessons Learned
Recognize and facilitate the role exceptional individuals play in getting pilot projects off the ground
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
BUILDING CROSS-SECTOR PARTNERSHIPS: Managing Complexity
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 39
!LIGNINGæ OBJECTIVESæ ANDæ BUILDINGæ TRUSTæ AREæ CRITICALæ
to partnership success, and the process cannot be
LEAPFROGGEDæ 0ARTNERSHIPæ OPERATINGæ ANDæ GOVERNANCEæ
structures are vital mechanisms for this. At the same time,
companies, donors, NGOs, and governments can start
preparing the ground even before specific partnership
opportunities are on the table. One approach is to raise
broad-based awareness of hybrid strategies that create
both business opportunity and development impact.
!Sæ DESCRIBEDæ INæ THISæ REPORTæ 0ROJECTæ .URTUREæ USESæ Aæ
hybrid strategy, combining core business investment
and philanthropy to achieve interdependent business
and social goals. It is important to remember that
HYBRIDæSTRATEGIESæLIKEæ0ROJECTæ.URTURESæAREæSTILLæNEWæINæ
theory and in practice. Mainstream business executives,
philanthropic donors, NGO staff, and government
authorities may have had little exposure to the concept.
In addition, there can be skepticism about one or
the other of the two primary approaches that hybrid
strategies combine. On one hand, many philanthropic
donors and NGO staff are mistrustful of the profit
motive and resistant to the idea of “making money off
the poor.” On the other hand, those who recognize the
importance of core business as a driver of development
impact may swing in the other direction entirely,
dismissing philanthropy as ineffectual and out of vogue.
The reality is not so clear-cut. Business activity is the
only sustainable way to alleviate poverty and generate
Another key obstacle is the complexity and decentralized
nature of today’s multinationals. While exceptional
INDIVIDUALSæPLAYæCRITICALæROLESæINæGETTINGæPILOTæPROJECTSæOFFæ
the ground, companies must have deliberate strategies
and systems in place to bring successful pilots to scale
through growth and mainstreaming in their countries
of origin and through replication in other markets.
&ORæ 4HEæ #OCA#OLAæ #OMPANYæ 0ROJECTæ .URTUREæ ISæ
a pilot intended to test new ways of doing business
that, if successful, can be replicated in other markets.
0ROJECTæ 5NNATIæ INæ )NDIAæ ISæ ANOTHERæ EXAMPLEæ 4HEREæ
The Coca-Cola Company and its partner, Jain
Irrigation, the largest manufacturer of drip irrigation
systems worldwide and a leading processor of fruits
and vegetables, are working with farmers to test
high-density planting and drip irrigation techniques
expected to double per acre mango yields. With several
years of experience under its belt, the Company is
now reflecting on both efforts, identifying lessons
learned, and distilling key elements of a model that
can be used to develop sustainable agricultural supply
chains around the world in support of its growing
JUICEæBUSINESSæ4HEæNEXTæSTEPæWILLæBEæTOæDEVELOPæTOOLSæ
and processes for disseminating information about
that model and encouraging independent decision-
makers to implement it. Already, the Company has
MADEæ0ROJECTæ.URTUREæAæFOCUSæOFæITSæ*UICEæ5NIVERSITYSæ
ANNUALæ JUICEæ IMMERSIONæ PROGRAMæ INæ *UNEæ æ INæ
Kenya, where participants explored the Minute Maid
Mango value chain all the way from the smallholder
FARMERæ TOæ THEæ CUSTOMERæ LEARNINGæ HOWæ THEæ 0ROJECTæ
Nurture partnership was helping to grow sustainable
sources of supply and double the fruit incomes of
participating farmers. The Company also showcased
0ROJECTæ.URTUREæATæITSæANNUALæ"OTTLERæ#ONFERENCEæ''æ
routinely shares updates with its associates, which
gives them the information and incentive to take up
ELEMENTSæTHATæMIGHTæBEæOFæBENEFITæTOæTHEMæ''æHASæ
also started to map the various initiatives underway
among its suppliers to understand what they are doing
and where in the value chain the impact is coming
from – growing or processing, for example. A supplier
SURVEYæWASæLAUNCHEDæINææANDæTHEæRESULTSæWILLæBEæ
continuously refreshed over time.
Raise awareness of hybrid strategies that create business opportunity and development impact
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
40 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Sector stereotypes are pervasive. Government is often
considered noble and worthwhile but also slow,
bureaucratic, and occasionally corrupt. Business is often
considered dynamic and exciting but also short-termist
and exploitative. Civil society is often considered
idealistic and purposeful but also disorganized and small
SCALEæ6IEWSæLIKEæTHESEæSHAPEæINDIVIDUALSæCAREERæCHOICESæ
bringing them into the workforce in a particular sector
and sometimes pushing them in different directions as
their experience grows and their perceptions change.
6IEWSæ LIKEæ THESEæ ALSOæ AFFECTæ INDIVIDUALSæ APPETITEæ ANDæ
aptitude for partnership. As a result, as partnership
becomes a more and more important mechanism for
creating business opportunity and development impact,
organizations across sectors must work to break down
sector stereotypes.
One of the biggest shifts in business and international
DEVELOPMENTæOVERæTHEæLASTææYEARSæHASæBEENæAæBLURRINGæ
of the previously neat distinction between business,
government, the donor community, and civil society.
This shift can be traced to a growing understanding of
the role that standard business activity and investment
PLAYæ INæ DEVELOPMENTæ næ BYæ DRIVINGæ JOBæ CREATIONæ SKILL
building, technology transfer, institutional capacity,
and the construction of physical infrastructure; by
generating tax revenues for governments; and by
delivering products and services people need to be
productive. This has triggered a search for ways of
harnessing standard business activity, making it more
inclusive and more impactful.
Many companies, for their part, are taking a much more
deliberate approach to understanding and managing
their impacts. Governments are creating forums for
PUBLICPRIVATEæDIALOGUEæONæPOLICYæLIKEæTHEæ0RESIDENTIALæ
Investors Roundtable in Uganda. Foundations and
bilateral and multilateral development agencies are
investing more and more money in market-based
solutions, and bringing in staff with the business
acumen needed to find the right opportunities. The
'ATESæ&OUNDATIONSæPROGRAMæOFFICERæFORæ0ROJECTæ.URTUREæ
for example, worked for McKinsey & Co. and Kraft
Foods. NGOs like TechnoServe – one of the leaders in
this respect – are carving out a niche using donor funds
to help entrepreneurs and companies build inclusive
business models. Many TechnoServe staff have left
careers in business, and bring with them valuable skills
and local business networks.
These are big changes, and they have unfolded relatively
recently. Would-be partners must recognize this, and
invest time making sure commonly held perceptions of
their organizations and within their organizations catch
up. They can do this by:
sæ 4AILORINGæ COMMUNICATIONæ STRATEGIESæ ANDæ MATERIALSæ
to meet target audiences where they are in their
understanding of the organization and its role,
explicitly emphasizing departures from the norm
wealth; there is simply not enough philanthropic
funding to go around. But philanthropy can play a
critical role in catalyzing business activity that reaches
and engages the poor – what competitiveness guru
-ICHAELæ0ORTERSæCONSULTINGæFIRMæ&3'æCALLSæhEXPANDINGæ
the shared value frontier.”
Hybrid strategies are TechnoServe’s bread and butter.
Other organizations may be more diverse, and while
they may have individuals or departments working on
hybrid strategies, they need to invest in raising broad-
based awareness. The Coca-Cola Company has started
TOæ DOæ THISæ BYæ SHOWCASINGæ0ROJECTæ.URTUREæINæ FORUMSæ
created to share best practices within the Coca-Cola
SYSTEMæLIKEæ''æINTERNALæSTAFFæ COMMUNICATIONSæTHEæ
Juice University immersion program, and the annual
Bottler Conference referenced above.
Break down sector stereotypes
Lessons Learned
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 41
sæ 0ARTICIPATINGæINæPLATFORMSæWHEREæORGANIZATIONSæFROMæ
all sectors share their experiences, discover common
interests, and even identify opportunities to work
together – ranging from the global level (such as the
#LINTONæ'LOBALæ)NITIATIVEæTOæTHEæNATIONALæLEVELæSUCHæ
ASæ 3OUTHæ !FRICASæ "USINESSæ4R U S T æ TOæ THEæ LOCALæ LEVELæ
SUCHæASæTHEæ0ORTLANDæ-ETROæ34%-æ0ARTNERSHIP
sæ (IRINGæ STAFFæ WITHæ EXPERIENCEæ WORKINGæ INæ ORæ WITHæ
organizations in other sectors, and seconding or
assigning staff who do not
Develop a deeper understanding of the core business contribution to cross-sector partnership
From a development perspective, the point of partnering
to build sustainable, inclusive business models is to
leverage companies’ core business operations and value
chains to expand economic opportunity and access
to critical products and services. The most important
contribution a corporate partner makes is to buy from,
distribute through, and sell to the poor. What this means
should be understood in depth and reflected throughout
the partnership.
0ROJECTæ.URTUREæISæINTENDEDæTOæLEVERAGEæ4HEæ#OCA#OLAæ
Company’s core business operations and value chain to
expand economic opportunity for smallholder farmers.
4HEæ#OMPANYSæCONTRIBUTIONæISæOFTENæDESCRIBEDæASææ
MILLIONæINæCASHæPAIDæTOæ4EC H N O3 ER V E æANDææMILLIONæ
in kind, in the form of infrastructure and technical
EXPERTISEæ.EITHERæTHEææMILLIONæFIGUREæNORæTHEæTERMæ
“in kind” convey the fact that the Company has had
to conduct extensive R&D, develop a new product,
identify and certify suppliers of the key ingredient,
negotiate and manage supplier contracts, conduct
ongoing quality testing, market the product to
consumers leveraging its valuable brand, and work with
its bottling partners to manufacture, distribute, and sell
it. All of this has been necessary to create a reliable and
growing processed fruit market channel for smallholder
farmers.
The Coca-Cola Company’s core business contribution
TOæ0ROJECTæ.URTUREæCOULDæBEæUNDERSTOODæMOREæDEEPLYæINæ
both quantitative and qualitative terms. Quantitatively,
the core business contribution is probably higher than
æMILLIONæ0UTTINGæAæMOREæACCURATEæDOLLARæVALUEæONæ
it would be interesting, but difficult to do. The more
closely the partnership is integrated into core business
strategy and operations, the harder it is to distinguish
EXPENDITURESæTHATæRELATEæTOæTHEæPROJECTæFROMæTHOSEæTHATæ
do not. Understanding the Company’s core business
contribution qualitatively is even more fundamental,
as it suggests a range of questions that should go into
the partnering process whenever the purpose is to build
sustainable, inclusive business models and value chains:
How do existing products, services, distribution channels,
and procurement systems need to change? Do new
ones need to be created? Which business functions and
business partners – suppliers, distributors, or retailers –
need to be involved? Do new relationships need to be
cultivated?
A deeper understanding of the core business contribution
to cross-sector partnership is critical to advancing
partnership practice. First, it will prepare companies
for all the hard work that will have to be done, and
enable them to assemble the right teams. For example,
WHILEæ0ROJECTæ.URTUREæWASæCONCEIVEDæINæ!TLANTAæJUICEæ
MANAGERSæ WITHINæ THEæ #ENTRALæ %ASTæ æ 7ESTæ !FRICAæ
"USINESSæ5NITæANDæ'ROVEææ'LASSæ4R A D I N G æFROMæ%UROPEæ
ANDæ3OUTHæ!FRICAæNEEDEDæTOæOWNæANDæRUNæTHEæPROJECTæ
Second, a fuller understanding of the business side of
0ROJECTæ.URTURETYPEæPARTNERSHIPSæWILLæHELPæDONORSæANDæ
NGOs work with companies even more effectively,
helping them engage the right stakeholders, identify
the most important interventions, and stage and
monitor them appropriately. This will require a greater
level of information-sharing between companies and
their donor and NGO partners than is currently the
norm, raising confidentiality issues and highlighting
once again the importance of building trust.
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
42 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
What are all the puzzle pieces that need to be put
in place? Who can do what? What are the goals and
incentives that might bring them to the table? What
are the risks that might drive them away? What
conversations need to be had, and how can we align
OBJECTIVESæANDæINCENTIVESæTOæDRIVEæCOLLABORATIONæ
TechnoServe, the Gates Foundation, and The Coca-
Cola Company have tackled these questions successfully
INæ DEVELOPINGæ 0ROJECTæ .URTUREæ9ETæ MANYæ MOREæ SUCHæ
partnerships – involving many other companies,
donors, NGOs, and governments – are needed to meet
today’s global business and development goals. What
is lacking is a systematic way of making that happen.
Three different models can play a role:
Build partnership brokering platforms
Lessons Learned
Invest in professional partnering capabilities
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
BUILDING THE CAPACITY FOR SCALE: Making Needed Awareness and Capabilities Mainstream
0ROJECTæ .URTUREæ ISæ Aæ COMPLEXæ PARTNERSHIPæ ANDæ ITæ
has made significant progress thanks to highly
professional management from TechnoServe, the
Gates Foundation, and The Coca-Cola Company.
This is not to say a considerable amount of “learning
by doing” was not involved. With partnership
becoming an increasingly important mechanism
for achieving individual organizational and broader
societal goals, it is time for companies, donors, NGOs,
and governments to invest in professional partnering
capabilities. Such capabilities include:
Partnering strategy: Grounded in an organization’s
overall strategy and goals, a partnering strategy covers
questions like:
sæ 7HEREæDOæWEæNEEDæTOæPARTNERæ7HICHæGOALSæDOæWEæ
need help to achieve?
sæ 7HYæDOæWEæNEEDæTOæPARTNERæ7HATæINFORMATIONæ
assets, resources, skills, or networks do we need?
sæ 7HATæINFORMATIONæASSETSæRESOURCESæSKILLSæORæ
networks might we need to share?
sæ 7HATæFORMSæOFæDUEæDILIGENCEæANDæAGREEMENTæAREæ
needed to protect us and our partners?
Partnering talent: 0ARTNERINGæTALENTæ ISæ Aæ COMBINATIONæ
of mindset (including openness, empathy, and
PERSISTENCEæ ANDæ SKILLSæ INCLUDINGæ LISTENINGæ
communication, translation across sectoral and
CULTURALæCONTEXTSæNEGOTIATIONæANDæCONFLICTæRESOLUTIONæ
0ARTNERINGæTALENTæCANæBEæRECRUITEDæASæWELLæASæDEVELOPEDæ
FROMæ WITHINæ4HEæ 0ARTNERINGæ )NITIATIVEæFORæ EXAMPLEæ
offers a range of training courses and materials.
Partnering structures: Organizations can develop
special structures to scope, develop, and manage
partnerships or to support operating units taking
the lead. These structures can act as centers of
excellence, offering – for example – access to the latest
organizational partnering strategy and policies; global,
cross-functional perspective and networks; technical
advice; and facilitation and backstopping as needed.
Such structures can also act as points of entry for
prospective partners, vetting partnering opportunities
and making introductions in relevant parts of the
organization. Within the donor community, the
US Agency for International Development’s Global
$EVELOPMENTæ !LLIANCEæ ANDæ '):Sæ DEVELO000DEæ
program are two examples.
0ARTNERSHIPSæLIKEæ0ROJECTæ.URTUREæAREæHIGHLYæCOMPLEXæ
because the underlying challenges are systemic, cutting
across many different issues, actors, and incentive
systems. And as we have seen, partner organizations
themselves are often complex. As a result, scoping
and brokering inclusive value chain development
partnerships can be difficult and time-consuming.
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 43
sæ Partnership brokering services like those provided
BYæ ASSOCIATESæ OFæ 4HEæ 0ARTNERINGæ )NITIATIVEæ ANDæ
specialized business and development consultancies
such as Dalberg and Inspiris
sæ Regular forums for cross-sector dialogue like the
7ORLDæ%CONOMICæ&ORUMæITSæ'ROWæ!FRICAæINITIATIVEæ
BEINGæ ONEæ SPECIFICæ EXAMPLEæ THEæ #LINTONæ 'LOBALæ
Initiative, and country-level forums like the
Agriculture Sector Coordination Unit in Kenya,
THEæ 0RESIDENTIALæ)NVESTORSæ2OUNDTABLEæ INæ 5GANDAæ
and the Business Trust in South Africa
sæ Partnership brokering platforms like the SAGCOT
Centre in Tanzania, which is designed to drive
modern commercial agricultural development
INæ THEæ COUNTRYSæ 3OUTHERNæ #ORRIDORæ WITHæ MAJORæ
benefits for smallholder farmers, environmental
sustainability, and food security
A relatively new and promising model, the SAGCOT
Centre will use three broad strategies. First, the
SAGCOT Centre will promote a shared vision of
collaborative and responsible commercial agricultural
development in the Corridor. Second, the Centre
will keep track of who in the Corridor is doing
what, in order to provide prospective investors with
information about opportunities, gaps, potential
PARTNERSæNEWæPROJECTSæINæTHEæPIPELINEæANDæMOREæ4HEæ
Centre will also commission research and provide tools
for public policy innovation, smallholder aggregation,
and environmentally sustainable production. Finally,
the SAGCOT Centre will mobilize players to fill
the opportunities and needs identified – ranging
from commercial investment to smallholder support
to financing to infrastructure to policy reform.
æ
0ARTNERSHIPæ BROKERINGæ PLATFORMSæ LIKEæ THEæ 3!'#/4æ
Centre could play a key role in brokering, replicating,
and scaling inclusive value chain development
partnerships in ways that transform entire sectors in
specific geographies.
44 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Inclusive business models and value chains are powerful
engines of business opportunity and development
impact. For business, they open up new market
segments and sources of supply. For the poor, they
expand economic opportunity and access to quality
products and services at prices they can afford. And
in contrast with traditional aid-based development
interventions, inclusive business models and value
chains are financially self-sustaining – with the
potential to reach scale and inspire replication.
Project Nurture illustrates the potential. It has cultivated
new sources of mango and passion fruit that retailers,
exporters, processors, and The Coca-Cola Company
ALLæNEEDæASæTHEæMARKETSæFORæFRESHæFRUITæ ANDæFRUITæJUICEæ
grow. It has also doubled the average fruit incomes of
æSMALLHOLDERæFARMERS
Project Nurture also shows how cross-sector partnership
can help get it done, using a catalytic approach that
combines core business investment and philanthropy
to strengthen the entire value chain in an integrated
manner, ensuring that all the players have the
capabilities and commercial incentives to continue
DOINGæ BUSINESSæ TOGETHERæ EVENæ AFTERæ THEæ PROJECTæ ENDSæ
– generating business benefits and development
impacts that can be sustained. None of the three core
PARTNERSæCOULDæHAVEæIMPLEMENTEDæ0ROJECTæ.URTUREæONæ
its own. The Coca-Cola Company brought its core
competencies in product innovation, marketing, and
supply chain management. TechnoServe brought its
capacity to work with smallholders on the ground, to
advise traders, processors, and exporters, and to build
strong market linkages among them. The Coca-Cola
Company paid for more than a third of TechnoServe’s
work, but since much of that work went beyond the
scope of the Company’s value chain, the Bill & Melinda
Gates Foundation covered the rest. The Foundation
also played a critical role in bringing the other partners
to the table in the first place, making them aware of the
business and development opportunity to be captured
in working together.
Partnering to build inclusive business models and
value chains is not without its challenges. Business,
government, the donor community, and civil society
need to be thinking about:
sæ Designing for sustainability when building
inclusive value chains
sæ Managing complexity within and across
organizations when building cross-sector
partnerships
sæ Making awareness and capabilities mainstream in
order to create the capacity for scale, so that larger
numbers of more effective partnerships can be
developed more easily as time goes on
An enormous shift in thinking about the role of the
private sector in development is underway, with growing
recognition that business activity and investment
AREæ CRITICALæ DEVELOPMENTæ DRIVERSæ næ CREATINGæ JOBSæ
building skills and capacity, transferring technology,
constructing physical infrastructure, generating tax
revenues for governments, and delivering products and
services people need to be productive.
Equally, there is growing recognition that
stakeholders in other sectors have roles to play
in helping to make business activity and
investment more inclusive and more impactful.
If business, government, the donor community,
and civil society can leverage their comparative
advantages through cross-sector partnership to build
inclusive business models and value chains more
systematically and at scale, the benefits could be
transformational – expanding business opportunity
and development impact around the world.
Conclusion
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 45
Appendix: Project Nurture Partnership Mobilization Timeline
September 2008:
The Gates Foundation,
The Coca-Cola Company
meet in Brussels to
explore opportunities
Fall 2008-Spring 2009:
The Gates Foundation
commissions Dalberg
Global Development
Advisors to do fruit
sector market research
June 2009:
The Gates
Foundation,
The Coca-Cola
Company, and
TechnServe meet
in Atlanta to discuss
QBSUOFSTIJQBHSFF
to develop proposal
July 2009:
Partnership
concept
approved by
The Coca-Cola
Company’s Global
Juice Center
November 2009:
TechnoServe grant
proposal approved
by the Gates
Foundation
January 2010:
Project Nurture
partnership
launched
Figure 8. Project Nurture Partnership Mobilization Timeline
46 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
Edward Agaba, Senior Business Manager, Project Nurture,
TechnoServe Uganda
Nicholas M. Ambanya, General Manager, Vegetable and Fruit
Division, East African Growers
Laurent Barbleu, Global Category Leader, Juice Procurement,
Grove 2 Glass Trading Services
Anna Chilczuk, Deputy Regional Director – East Africa,
TechnoServe Kenya
Rachel Claydon, Consultant, Project Nurture, TechnoServe Uganda
Ademerval Garcia, General Manager, Global Juice Trading
Company, Grove 2 Glass Trading Services
Liz Gorski, Global Program Manager, Aluminum Bottle, The Coca-
Cola Company
Ajay N. Gupta, General Manager Operations (Drinks & Sauce),
Britania Allied Industries Ltd
Olivia Karanja, Associate Business Advisor/Training, Project
Nurture, TechnoServe Kenya
Florence Nyawira Kariuki, Relationship Manager, Agriculture
4FDUPS&RVJUZ#BOL
Kakule Mango Farmers Group, Budaka District, Uganda
Abdullah Kaggwa, Fresh Markets Advisor, Project Nurture,
TechnoServe Uganda
Joseph Kayongo, Business Advisor, Project Nurture, TechnoServe
Uganda
Kiambamba Mango Farmers Self-Help Group, Kenya
Winifred Kiarie, Program Assistant, Project Nurture, TechnoServe
Kenya
Erastus Kibugu, Country Director, TechnoServe Uganda
Wanjiku Kimamo, Project Nurture Director, TechnoServe Kenya
Norton Kingwill, Country Manager/Managing Director, Century
Bottling Company
Isaiah Kirema, Senior Business Advisor/Agronomist, Project
Nurture, TechnoServe Kenya
Denise Knight, Director, Sustainable Agriculture, Office of
Sustainability, The Coca-Cola Company
Casper Kruger, Procurement Manager, Juice – Africa,
Grove 2 Glass Trading Services
Maureen Kyomuhendo, Public Affairs & Communications Manager,
Century Bottling Company
Louise Labuschagne, Joint Managing Director, Real IPM
Lionel Marumahoko, General Manager, Still Beverages, Central,
East & West Africa Business Unit, The Coca-Cola Company
Marika McCauley Sine, Director, International Government
Relations and Public Affairs, The Coca-Cola Company
Isaac Mugwelo, Sales & Marketing Manager, Coca-Cola Juices
Kenya Ltd
Phyllis M. Mungai, Programmes Manager, Market Development &
Research, Farm Concern International
Kennedy Muthama, Business Advisor, Project Nurture,
TechnoServe Kenya
Ann Marie Sabano Mwaka, Supervisor, Agricultural Credit,
Centenary Rural Development Bank Ltd
Nakawa Market Vendors Association, Kampala, Uganda
Juliet Namono, Associate Business Advisor, Project Nurture,
TechnoServe Uganda
Fred Njogu, Supply Chain Manager, Stills Beverages, Central, East &
West Africa Business Unit, The Coca-Cola Company
Fred Obondo, Operations Manager, Coca-Cola Juices Kenya Ltd
Felix Odingo, IPM Trainer, Real IPM
Norah Odwesso, Public Affairs & Communications Director, Central,
East & West Africa Business Unit, The Coca-Cola Company
Bob Okello, Public Affairs and Government Relations Manager,
East Africa, Central, East & West Africa Business Unit, The Coca-Cola
Company
Okaasai S. Opolot, Director, Crop Resources, Ministry of Agriculture,
Animal Industry and Fisheries, Republic of Uganda
Kushal Patel, Chief Executive Officer, Sunny Processors Ltd
Jennifer Ragland, Director, International Government Relations
and Public Affairs, The Coca-Cola Company
Wilson A. Songa, Agriculture Secretary, Ministry of Agriculture,
Republic of Kenya
Tubaana Passion Fruit Farmers Group, Manafwa District, Uganda
Robert Paul Wamulimah, Senior Business Advisor, Project Nurture,
TechnoServe Uganda
Thomas Warirah, Finance Manager, Coca-Cola Juices Kenya Ltd
Appendix: Stakeholders Consulted
PROJECT NURTURE: Partnering for Business Opportunity and Development Impact 47
Endnotes
1. World Bank. 2005. “World Development
Report 2005: A Better Investment Climate for
Everyone.” Washington, DC: World Bank.
2. Nelson, Jane. 2003. “Economic Multipliers:
Revisiting the Core Responsibility and
Contribution of Business to Development.”
International Business Leaders Forum (IBLF)
Policy Paper 2003 No. 4.
3. Berg, Andrew G. and Jonathan D. Ostry.
i*OFRVBMJUZBOE6OTVTUBJOBCMF(SPXUI
Two Sides of the Same Coin?” IMF Staff
Discussion Note SDN/11/08. Washington, DC:
International Monetary Fund.
4. International Finance Corporation (IFC).
2011. “Accelerating Inclusive Business
Opportunities: Business Models that Make a
Difference.” Washington, DC: IFC.
5. This has been observed in the literature
by a range of inclusive business thought
leaders, including Allen Hammond of Ashoka,
Erik Simanis of Cornell University, Ashish
Karamchandani and Michael Kubzansky of
Monitor Group, and others.
6. There are exceptions, including Aravind Eye
Care and Jain Irrigation in India and Natura
in Brazil. Another exception is Coca-Cola
Sabco, a Coca-Cola Company bottling partner
in Eastern and Southern Africa and East
Asia, which serves low-income consumers
through a Micro Distribution Center model
in which small-scale, sometimes first-time
FOUSFQSFOFVSTPõFSGSFRVFOUEFMJWFSJFT
of small amounts of product to the small
shops and kiosks that serve them. For more
information, see Nelson, Jane, Eriko Ishikawa,
and Alexis Geaneotes. 2009. “Developing
Inclusive Business Models: A Review of Coca-
Cola’s Manual Distribution Centers in Ethiopia
and Tanzania.” Cambridge, MA: The CSR
Initiative at the Harvard Kennedy School and
the International Finance Corporation.
7. United Nations Development Programme
(UNDP). 2008. “Creating Value for All:
Strategies for Doing Business with the Poor.
New York: UNDP.
8. Gradl, Christina and Beth Jenkins. 2011.
“Tackling Barriers to Scale: From Inclusive
Business Models to Inclusive Business
Ecosystems.” Cambridge, MA: the CSR
Initiative at the Harvard Kennedy School.
9. These include, among others, the Food
Safety System Certification 22000, ISO
9001, relevant Global Food Safety Initiative
certification schemes, and the Company’s
PXO$PDB$PMB0QFSBUJOH3FRVJSFNFOUT
(KORE) and Supplier Guiding Principles.
10. Interbrand. 2012. “The Best Global Brands
2012.” Online at http://www.interbrand.
com/en/best-global-brands/2012/Coca-Cola
(accessed December 6, 2012).
11. The Coca-Cola Company. 2012. “2010/2011
Sustainability Report: From Our CEO.” Online
at http://www.thecoca-colacompany.com/
sustainabilityreport/in-our-company/from-
our-ceo.html (accessed October 18, 2012).
12. World Bank. No date. “Agriculture and
Rural Development.” Online at http://web.
worldbank.org/WBSITE/EXTERNAL/NEWS
/0,,contentMDK:20432940~menuPK:3448
0~pagePK:64257043~piPK:437376~theSi
tePK:4607,00.html (accessed November 5,
2012).
13. Bill & Melinda Gates Foundation (BMGF).
2011. “Agricultural Development
Strategy Overview.” Online at
http://www.gatesfoundation.org/
agriculturaldevelopment/Documents/
agricultural-development-strategy-overview.
pdf (accessed September 5, 2012). Page 4.
14. Pingali, Prabhu. 2012. “The Bill & Melinda
Gates Foundation: Catalyzing Agricultural
Innovation.” International Food Policy
Research Institute Focus 19, Scaling Up
in Agriculture, Rural Development, and
Nutrition, Brief 16. Online at http://www.
ifpri.org/sites/default/files/publications/
focus19_16.pdf (accessed October 16,
2012). Also see BMGF. 2012. “Facts about
Agricultural Development in Africa.” Online
at http://www.gatesfoundation.org/
agriculturaldevelopment/Pages/facts-about-
agricultural-development.aspx (accessed
December 7, 2012).
15. Dalberg Global Development Advisors
research conducted for the Bill & Melinda
Gates Foundation in late 2008-early 2009.
16. TechnoServe. 2012. “Our Impact: 2011
Annual Report.” Online at http://www.
technoserve.org/files/downloads/2011-
annual-report.pdf (accessed October 18,
2012).
17. The Coca-Cola Company. “Coca-Cola 5by20.”
Online at http://www.coca-colacompany.
com/stories/5by20 (accessed December 6,
2012).
18. FAOSTAT, cited in Farming First. No date.
“The Female Face of Farming.” Online at
http://www.farmingfirst.org/women/
(accessed December 7, 2012)]
19. Project Nurture Gender Strategy
20. FAO. 2011. “Closing the Gender Gap in
Agriculture.” Online at http://www.fao.org/
news/story/en/item/52011/icode/ (accessed
December 7, 2012)
21. Including the Ministries of Livestock
Development, Cooperative Development
and Marketing, Fisheries Development,
Water and Irrigation, Lands, Environment and
Mineral Resources, and Forestry and Wildlife,
as well as the Ministry of Development
Authorities and the Ministry of State for the
Development of Northern Kenya and Other
Arid Lands.
22. See, for example, Kubzansky, Mike. 2012.
“The Importance of Business Models.”
Old Problems, New Solutions: Harnessing
Technology and Innovation in the Fight
Against Global Poverty. The 2012 Brookings
Blum Roundtable Policy Briefs. Online
at http://www.brookings.edu/~/media/
SFTFBSDImMFTSFQPSUTCMVN
SPVOEUBCMFCVTJOFTTNPEFMT
kubzansky.pdf (accessed October 22, 2012).
Also see Linn, Johannes. 2012. “Lessons on
Scaling Up: Opportunities and Challenges
for the Future.” International Food Policy
Research Institute Focus 19, Scaling Up
in Agriculture, Rural Development, and
Nutrition, Brief 20. Online at http://www.
ifpri.org/sites/default/files/publications/
focus19_20.pdf (accessed October 22, 2012).
23. Stott, Leda. 2010. “The Partnering with
Governments Navigator: Building Effective
Collaboration with the Public Sector in Africa.”
5IF1BSUOFSJOH*OJUJBUJWFBOE(5;0OMJOF
at http://thepartneringinitiative.org/w/
resources/toolbook-series/the-partnering-
with-governments-navigator/ (accessed
October 22, 2012).
24. Ibid.
25. Simanis, Erik and Mark Milstein. 2012.
“Back to Business Fundamentals: Making
“Bottom of the Pyramid” Relevant to Core
Business.” Field Actions Science Reports,
Special Issue No. 4, page 83.
26. Ibid., pages 84-85.
27. FSG. 2012. “Competing by Saving Lives:
How Pharmaceutical and Medical Device
Companies Create Shared Value in Global
Health.” Online at http://www.fsg.org/
Portals/0/Uploads/Documents/PDF/
Competing_Saving_Lives.pdf (accessed
October 22, 2012).
28. For more information, see http://
thepartneringinitiative.org/w/professional-
development/.
29. Business Fights Poverty. 2012. “Meet Darian
Stibbe, Director, The Partnering Initiative:
Member of the Week.” Online at http://www.
businessfightspoverty.org/profiles/blogs/
meet-darian-stibbe-director-the-partnering-
initiative-member-of (accessed November 6,
2012).
30. Jenkins, Beth. 2012. “Mobilizing the
Southern Agricultural Growth Corridor of
Tanzania.” Cambridge, MA: The CSR Initiative
at the Harvard Kennedy School.
48 PROJECT NURTURE: Partnering for Business Opportunity and Development Impact
About the Authors
Beth Jenkins, a fellow of the Corporate Social Responsibility
Initiative at the Harvard Kennedy School, has spent twelve years
researching and advising on inclusive or base-of-the-pyramid
business models and cross-sector partnerships.
Before becoming a fellow, Beth directed the CSR Initiative’s
Economic Opportunity Program, analyzing, documenting, and
disseminating inclusive business activity together with partners
such as the International Finance Corporation, United Nations
Development Programme, World Business Council for Sustainable
Development, and NGOs and companies around the world. She
authored and edited eight reports in the CSR Initiative’s Economic
Opportunity Series, including a cross-cutting analysis and seven
industry studies in the extractives, financial services, food and
beverage, information and communications technology, health
care, tourism, and utilities sectors. She has developed six inclusive
business reports with IFC and co-authored the UNDP publication
“Creating Value for All: Strategies for Doing Business with the Poor”
with Christina Gradl.
Earlier in her career, Beth was responsible for developing and
disseminating risk management concepts and capabilities at
Booz | Allen | Hamilton, with special emphasis on the strategic
risks companies face as a result of social, environmental, and
international development issues. She also spent five years
working on base-of-the-pyramid business models in the
information and communications technology and housing sectors
at the World Resources Institute and Ashoka. She is a graduate of
Yale University and the Harvard Kennedy School.
Lorin Fries is a research associate at the Corporate Social
Responsibility Initiative at the Harvard Kennedy School. She is
an expert on sustainable agricultural development, with cross-
sectoral experience from Oxfam America and Save the Children,
the United States Agency for International Development, the
Harvard Business School, and a range of corporate players in
the agribusiness and food and beverage sectors. Lorin has deep
familiarity with developing contexts from several years in rural
Uganda and short-term assignments including Haiti, Ethiopia,
Senegal, India, Brazil and South Africa. Lorin received a Masters in
Public Policy from the Harvard Kennedy School in 2012.
The Corporate Social Responsibility Initiative (CSRI) at the
Harvard Kennedy School’s Mossavar-Rahmani Center for Business
and Government (M-RCBG) is a multi-disciplinary and multi-
stakeholder program that seeks to study and enhance the public
contributions of private enterprise. The initiative explores the
intersection of corporate responsibility, corporate governance, and
public policy, with a focus on analyzing institutional innovations
that enhance governance and accountability and help to achieve
key international development goals. It bridges theory and
practice, builds leadership skills, and supports constructive
dialogue and collaboration among business, government, civil
society and academics. Founded in 2004, the CSR Initiative works
with a small Corporate Leadership Group consisting of global
companies that are leaders in the fields of corporate responsibility,
sustainability or creating shared value. The group currently
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)PUFMT(SPVQ.JDSPTPGU/FTUMÏ4"1BOE6OJMFWFS5IF*OJUJBUJWF
also works with other leading CSR and sustainability organizations,
government bodies, non-governmental organizations and
companies to leverage innovative policy research and examples of
good practice in this field.
About the CSR Initiative at the
Harvard Kennedy School
Related CSR Initiative Reports
2012
Mobilizing the Southern Agricultural Growth
Corridor of Tanzania: A Case Study
Beth Jenkins
Building a Strategic Alliance for the Fortification
of Oil and Other Staple Foods: A Case Study
Christina Gradl
2011
Tackling Barriers to Scale: From Inclusive Business
Models to Inclusive Business Ecosystems
Christina Gradl and Beth Jenkins
Expanding Opportunity and Access: Approaches
that harness markets and the private sector to
create business value and development impact
Jane Nelson
2010
Scaling Up Inclusive Business: Advancing the
Knowledge and Action Agenda
Beth Jenkins, Eriko Ishikawa, Alexis Geaneotes, John
H. Paul (CSRI with IFC)
Business Partnerships for Development in Africa:
Redrawing the Boundaries of Possibility
Richard Gilbert and Beth Jenkins (CSRI with Business
Action for Africa)
Unleashing the Power of Convergence to
Advance Mobile Money Ecosystems
Piya Baptista and Soren Heitmann (CSRI with IFC)
2009
Corporate Partnerships for Entrepreneurship:
Building the Ecosystem in the Middle East and
Southeast Asia
Shannon Murphy
Accelerating the Development of Mobile Money
Ecosystems
Jonathan Dolan (CSRI with IFC)
Developing Inclusive Business Models: A Review
of Coca-Cola’s Manual Distribution Centers in
Ethiopia and Tanzania
Jane Nelson, Eriko Ishikawa and Alexis Geaneotes
(CSRI with IFC)
Business Linkages: Enabling Access to Markets at
the Base of the Pyramid
Beth Jenkins and Eriko Eshikawa (CSRI with IFC)
2008
Supporting Entrepreneurship at the Base of the
Pyramid through Business Linkages
Beth Jenkins, Eriko Ishikawa, Marisol Giacomelli, and
Emma Barthes (CSRI with IFC and IBLF)
Developing Mobile Money Ecosystems
Beth Jenkins (CSRI with IFC)
2007
Expanding Economic Opportunity: The Role of
Large Firms
Beth Jenkins
The Role of the Extractive Sector in Expanding
Economic Opportunity
Holly Wise and Sokol Shtylla
The Role of the Financial Services Sector in
Expanding Economic Opportunity
Christopher N. Sutton and Beth Jenkins
The Role of the Food and Beverage Sector in
Expanding Economic Opportunity
Ramya Krishnaswamy and Marc Pfitzer
The Role of the Health Care Sector in Expanding
Economic Opportunity
Adeeb Mahmud and Marcie Parkhurst
The Role of the Information and Communications
Technology Sector in Expanding Economic
Opportunity
William J. Kramer, Beth Jenkins and Robert S. Katz
The Role of the Tourism Sector in Expanding
Economic Opportunity
Caroline Ashley, Peter DeBrine, Amy Lehr, and
Hannah Wilde
The Role of the Utilities Sector in Expanding
Economic Opportunity
Christopher N. Sutton
Business Linkages: Lessons, Opportunities, and
Challenges
Beth Jenkins, Anna Akhalkatsi, Brad Roberts, and
Amanda Gardiner (CSRI with IFC and IBLF)
Building Linkages for Competitive and
Responsible Entrepreneurship: Innovative
Partnerships to Foster Small Enterprise, Promote
Economic Growth, and Reduce Poverty in
Developing Countries
Jane Nelson
2006
Tanzania: Lessons in Building Linkages for
Competitive and Responsible Entrepreneurship
Tamara Bekefi
Viet Nam: Lessons in Building Linkages for
Competitive and Responsible Entrepreneurship
Tamara Bekefi
Business as a Partner in Overcoming
Malnutrition: An Agenda for Action
Jane Nelson (CSRI with The Conference Board
and IBLF)
Business as a Partner in Strengthening Public
Health Systems in Developing Countries: An
Agenda for Action
Jane Nelson (CSRI with the Conference Board and
IBLF)
Investing in Social Innovation: Harnessing the
Potential of Partnership between Corporations
and Social Entrepreneurs
Jane Nelson and Beth Jenkins
CSR Initiative
Harvard Kennedy School
79 John F. Kennedy Street
Cambridge, MA 02138 USA
www.hks.harvard.edu/m-rcbg/CSRI/
