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The Alliance’s founders recommended initiating action in one specific location to develop a model for business partnership to reduce hunger which can be scaled up and adapted to other regions. Following evaluation of several potential locations, the Alliance selected Siaya District, Kenya as its initial pilot location. The factors in this decision included:
- High levels of hunger in the District, combined with high potential to increase food production
- A diverse, dynamic and strongly invested private sector (including multinational companies, regional and national firms, small and medium enterprises, social entrepreneurs and micro-enterprise)
- Stable democratic governance at the national level
- Strong commitment from local partners who are highly engaged, experienced and trusted in the local community
- Strong support from the government of Kenya
Profile of Siaya District
Siaya has at times been ranked as the poorest district in Kenya, and experiences high levels of chronic and seasonal hunger. Challenges facing the district include:
- Poverty: 64% of the population live below the poverty line
- Hunger: 38% of the children are stunted by malnutrition, and 22% are underweight
- Health: There is one doctor for every 96,000 people. Life expectancy is 37 years for men and 43 years for women. An estimated 24% are infected with HIV/AIDS
- Environment: 30% have access to safe drinking water
- Infrastructure: 1% of households have electricity
Businesses have significant and unique abilities to combat the root causes of hunger. The pioneering approach of the Business Alliance Against Chronic Hunger (BAACH) harnesses business expertise to generate sustainable, market-based solutions to hunger and poverty.
The Alliance’s Strategy for Siaya District
BAACH Kenya partners – ranging from global CEOs to poor farmers – worked together to develop a joint strategy for business-led action to strengthen food value chains in the district. Alliance partners are now undertaking pilot-scale business initiatives on the ground in Siaya District, testing and developing specific business models with a goal of defining scalable, commercially viable models that can be applied in other regions. The results of the pilot initiatives to date are outlined in BAACH’s January 2008 report, “The Business Role in Achieving a Green Revolution for Africa: A report on the experience to date of the World Economic Forum’s Business Alliance Against Chronic Hunger.”
Piloting Business Models in Kenya
In 2008, ongoing Alliance pilot activities in Siaya District include the following:
Improving Staple Crop Production
- Agricultural Input Programme: Expanding farmers’ access to seeds and fertilizer through agro-dealer expansion, training and finance
- Supply Chain Efficiency: Mapping and assessing gaps in existing transport and storage infrastructure, and defining market centres
- Maize Purchase Agreement: Acting as “honest brokers” to buy farmers’ maize and soy
Growing and Processing High Value Crops
- Herb and Spice Sourcing: Working with farmers to produce and sell herbs and spices
- Beekeeping and Honey Sourcing: Training and financing farmers to start beekeeping and purchasing their honey
- Horticulture Production and Sourcing: Producing vegetables to meet quality standards and purchasing them for retail sale
- Sorghum Production and Sourcing: Expanding sorghum production for local processing
- Packaging Solutions: Developing appropriate technology packaging and training for small-scale soya processors to expand producer incomes and community nutrition
Expanding Retail Entrepreneurship
- Retailers’ Diversification: Expanding essential products and services offered by small rural retailers including fortified foods, kerosene fuel and financial-transfer services
- Retail Supply Networks: Training and financing bicycle delivery entrepreneurs to supply small rural retailers
Strengthening Local Capacity
- Strengthening Competitiveness: A BAACH study identified local products which offer the best prospects for market competitiveness and social benefit
- Training Producers and Entrepreneurs: Alliance partners are training farmers, processors and retailers to boost their productivity
- Public-Private Partnership: Engagement with government of Kenya programmes and input into regional development strategies
Leveraging Kenya Learnings for Broader Impact
The Alliance’s work in Kenya serves as a “learning laboratory” to develop scalable business solutions to hunger that can be applied more broadly. BAACH encourages broader application of its business models through collaboration with the Government of Kenya, regional partners, and large-scale initiatives such as the Alliance for a Green Revolution in Africa.
BAACH Kenya National Council
In 2008, BAACH will broaden its network of African business partners to encourage regional adoption of its business models in coordination with other stakeholders.
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