Confederação das Associações Económicas de Moçambique (Maputo)

20 February 2013

Mozambique: Inclusive Business in Mozambique

Maputo — On February 15, the Inclusive Business Council of Mozambique, (which the CTA is one of its founding members) organized a conference on "Models and strategies for the implementation of Inclusive Business", led by Javier Ayala, a South American expert in Inclusive Business.

It defines the Inclusive Business initiatives as trade profitable, environmentally and socially sustainable, built on the basis of a long-term relationship with low-income communities. He stressed that these initiatives were not actions of philanthropy or corporate social responsibility, but represent a mutual social and economic benefit.

The low-income communities are often characterized by:

- Restricted access to markets,

- Informality,

- Basic needs unmet,

- Rurality (70% depend on agriculture).

These communities are also a large consumer market.

Javier Ayala presented lessons learned from experiences.

Thus, Inclusive Business work with any type of business: from micro to large enterprise, in all sectors and are sustainable solutions.

Up to now, 500,000 low-income families in 20 countries have participated, directly or indirectly, to Inclusive Business initiatives.

How can we apply this concept in Mozambique?

- First, we need to identify the needs and demands of business.

Second, the community have to respond to the market demand and offer a suitable product.

Inclusive Affairs must include the innovation aspect.

How the public sector can support initiatives Inclusive Business?

- Doing legal reforms. For example, in Indonesia, the government issued a decree requiring all businesses with a social or environmental impact to invest 5% of their profits in Inclusive Business initiatives.

One of the challenges of the Inclusive Business is to ensure the loyalty of the communities receiving technical assistance from the companies.

How can we meet this loyalty?

- With market mechanisms such as:

• Higher price,

• Better quality, better price,

• Higher volume, better price.

Javier Ayala noted a strong link between the company and the community should be woven to make these Inclusive Business initiatives a success.

For example, the company can send some of its staff or a doctor to give technical assistance to the communities.

Note that the Inclusive Business Council of Mozambique aims at promoting and implementing Inclusive Business Models in Mozambique. It is an entity made up by the private sector (CTA), government agencies, non-governmental organizations, civil society, which is the result of the Maputo Declaration on Inclusive Business made in 2011.

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