United Nations Development Programme
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GROWING SUSTAINABLE BUSINESS, MALAWI“It is the absence of broad-based business activity, not its presence, that condemns much of humanity to suffering.” Secretary-General Kofi Annan, Financial Times, September 14 2005 
In the 2008-2011 UNDAF, UNDP is slated to take the lead in the outcome: “Sustainable Economic Development and Food Security.” New to the programmatic activities in relation to this goal is the global Growing Sustainable Business (GSB) initiative launched by UNDP in Malawi in February 2007. What is the Growing Sustainable Business programme?The GSB initiative grew out of the 2002 UN Global Compact policy dialogue on “business and sustainable development”. Recognizing the importance of private sector engagement in the advancement of Millennium Development Goals, the GSB programme aims to facilitate business-led solutions to poverty reduction. These solutions range from the creation of employment and livelihood opportunities to increased access to needed goods and services by the poor. The value proposition of GSB to business is to help address challenges at relevant points in the investment cycle and reduce the risks and costs associated with making investments. Currently the GSB initiative is active in twelve countries, including Zambia, Kenya and Tanzania. How does the GSB programme work together with the Government, UN agencies, donors and NGO’s ?One of the key objectives of GSB is to support the Government in its efforts to reform and improve the enabling environment for business activity, and by providing the Government with hands-on examples from pro-poor business investments. Furthermore the GSB Malawi programme is distinct from GSB programmes in neighboring countries in that the GSB Team for the first time has been directly placed at the government investment promotion agency. GSB Malawi offers its support directly to the Malawi Investment Promotion Agency (MIPA) in its endeavors to attract investment, develop business and stimulate trade in the country. In line with UNDAF and “One UN,” the GSB Broker coordinates its efforts closely with all UN agencies and donor activities in Malawi to enhance and build-on existing programmes where possible. How can a business investment help reduce poverty?GSB by attracting pro-poor investment and businesses to Malawi will help bring new employment opportunities to the country as well as providing the poor with much needed goods and services. What advantages come from partnering through GSB?Partnering through the GSB mechanism provides credibility created through a multi-stakeholder approach, which helps remove obstacles to a business investment. The GSB is set up to broker partnerships, which enable a company to engage with the host Government, civil society, the donor community, and investment partners. Such partnerships mitigate investment risks by resolving obstacles and facilitating access to supplementary finance, new markets, and information. Meanwhile, the accumulated expertise of GSB partners represents an opportunity for developing or refining business models that are adapted to the local circumstances and needs, and for identifying opportunities for integrated cross-sector solutions, such as complementary products and risk sharing. What is expected of a company that wants to work together with the GSB initiative?Since the GSB initiative is about doing business, the company is expected to work in a spirit of "enlightened self-interest", apply a long-term perspective, and to be a business leader from start to finish. The company is expected to invest in the development of an adequate business model, which relates directly to the company’s core business or to its value chain. While expected to demand a decent return on its investment, the company is asked to take on capital and operational expenditures when applicable. Finally, the company must be ready to engage in multi-stakeholder & cross-sector partnerships and support innovative and unusual business activities that are critical to success, often in public-private alliances. In short, the company is expected to focus on core competencies, partner with external resources, and localize the value creation. Is the GSB a financing mechanism?In principle all costs associated with a GSB business venture should be borne by the company in the expectation to recover costs from the envisaged profit. However, in certain circumstances, GSB can decide to support research and capacity building activities, which are key to success, but which are also of public value beyond the immediate interests of the project. Which companies are currently participating in the GSB?With operations in 12 countries currently and ambitious expansion plans, examples of GSB projects include: • Ericsson – Rural telecommunications For more information about the GSB programme please visit www.undp.org/partners/business/gsb/ . GSB Malawi contact details:Jan Willem van den Broek Agnes Martha Wierzbicki Lolita Belandres Top |
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