TechnoServe Report on the RMGC Potential Private Sector Impact 8 - - PowerPoint PPT Presentation
TechnoServe Report on the RMGC Potential Private Sector Impact 8 July 2010 Objectives and Content PRESENTATION OBJECTIVE Present the potential sustainable development impact of the RMGC project on the Romanian private sector CONTENTS 1.
PRESENTATION OBJECTIVE Present the potential sustainable development impact of the RMGC project on the Romanian private sector CONTENTS
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Technoserve Mission: TechnoServe helps entrepreneurial men and women to build businesses that create income, opportunity and economic growth for their families, their communities, and their countries. Technoserve Approach
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Empower Entrepreneurs
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Build Businesses & Industries
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Transform Lives Technoserve Engagement with RMGC To develop a plan to maximize the project’s sustainable development impact
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economic growth and positive social change; a hand up is better than a handout.
Bullard, who pioneered the private-enterprise approach to solving poverty.
former management consultants or industry experts.
corporate, non-profit and government partners.
agencies, multi-lateral organizations, corporations, foundations and individuals.
Partners Company
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Active Programs
Honduras India Kenya Mozambique Nicaragua Peru Rwanda South Africa Swaziland Tanzania Uganda Venezuela Zambia Benin Bolivia Brazil Burkina Faso Chile Colombia Côte d'Ivoire Ecuador El Salvador Ethiopia Ghana Guatemala Haiti
Past Work (extensive) Democratic Republic
Guinea-Bissau Madagascar Mali Sudan Belize Costa Rica Dominica Panama Poland
Norwalk, CT Office Washington, DC Office London, UK Office
Emerging Programs Guinea Malawi Mexico Nigeria Zimbabwe
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for Social Entrepreneurship
“TechnoServe’s partnership with our government is
bringing concrete results in the fight against poverty: jobs, opportunities, and globally competitive industries.” — Aiuba Cuereneia, Minister of Planning and Development, Mozambique "I was greatly impressed by the variety of sectors that TechnoServe is involved with and the tremendous impact that TechnoServe’s work is having with regards to economic development and job creation." — Titus Brenninkmeijer, Founder of Solgenix and Energy Access Foundation and TechnoServe member since 1998 “Google is an entrepreneurial company, so we appreciate TechnoServe’s business focused approach to development…Together we are helping men and women turn their good business ideas into thriving enterprises. — Rachel Payne, Google.org manager
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Context
Opportunity to develop small and medium enterprises within the Cajamarca region in partnership with the Yanacocha gold and silver mine. The mine is a high-value buyer of diverse products and services that can be supplied locally, serving as a springboard for regional, national and export markets.
Our solution
Identify 54 high-potential small and medium enterprise businesses in diverse sectors of the region. Deliver comprehensive entrepreneurship skills training program. Deliver practical and technical training. Facilitate access to finance. Improve the enabling environment by establishing SME financing relationships and funding models.
Results
Dissemination of the model for replication with other natural resource companies throughout Latin America and Africa. 54 small and medium enterprise entrepreneurs trained, resulting in US $1.8 million in incremental sales, 373 new jobs, and purchases from more than 1,500 local suppliers of agricultural primary products.
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Context
Opportunity to develop local, regional, and national enterprises in South Africa in partnership the Lonmin Platinum mine. Focus on supporting women and minority owned businesses.
Our solution
Develop a network of over 500 minority owned businesses in South Africa. Restructure procurement policies and procedures to reach local businesses. Deliver comprehensive entrepreneurship and technical skills training program. Facilitated access to finance
Results
Increased procurement from women and minority owned South African firms to over USD 500 million annually, 55% of USD 1 billion annual spend Developed 70 start up new suppliers and new joint ventures
contracts Diversified local suppliers with goal of over 50% of sales from non mine sources.
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Projections RMGC Plan Additional Potential Total Potential Local purchase of goods and services 120 million 110 million 230 million Local economic development
Total 694 million Projections RMGC Plan Additional Potential Total Potential Romanian purchase of goods and services (including local) 2.5 billion 880 million 3.4 billion Local Economic Development Regional and National Procurement of Goods and Services
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Population Jan-063 Nov-081 % Change Rosia Montana 3,557 3,227
Abrud 5,980 5,809
Campeni 8,178 7,805
Total 17,715 16,841
Population Characteristics
employment2, therefore high potential for unreported unemployment and underemployment
1 Report of the Socio-Economic State of the Roşia Montana Village, Socio-Economic Research
and Development Center “Muntii Apuseni” Association, December 2009.
2 National Institute of Statistics 3 The County Statistics Department of Alba Iulia.
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Sector RM, Abrud, Campeni 2008 Turnover Food and Beverage 39,557 Construction 19,314 Timber/Furniture Manufacturer 13,809 Copper Mine 12,135 Transport 12,012 Other retail 6,920 Textile Industry and Retail 4,610 Other Service 4,207 Other Wholesale 2,741 Livestock 1,905 Auto Body Repair/Part Sales 906 Other 893 Business Consultancy Services 776 Hotel 375 Total USD 120,160
1 Romanian Companies Database www.romanian-companies.eu/default.asp
Sector Number of Companies Employees Income USD % of Total Food & Beverage 3 180 23,700,617 19.4 % Mining 1 148 11,819,896 9.7% Timber/ Furniture 2 240 10,553,216 8.6% Construction 2 201 10,424,027 8.6% Transport 1 15 5,146,491 4.2% Textile and Retail 1 206 3,728,713 3.1% Total 990 65,372,961 53.5%
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Local Supplier Development Reagents and Consumables Transport Construction Earthworks Drilling and exploration Security Contract Mining Services Cleaning Maintenance (mine fleet) Contract Maintenance Sample Preparation and Analysis Contract Electrical and Instrumentation Light Vehicle Servicing Contract Blasting Services Forestry Monitor& Manage Tire Maintenance and Monitoring Catering Contract Surveying Services Accommodation Courier Rapid Service Closure Demolition (3 yrs only) House Demolition (3 yrs only)
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Sector RMGC Mine Demand Per Year (000k) Local Opportunity (000k) % of 2008 Total Catering 350 17,765 2.0% Construction 3,139 13,761 22.8% Transport 300 12,012 2.5% Auto Body Repair 405 1,905 21.3% Hotel 315 375 84.0% Cleaning 275 63 436.5% Total 4,784 45,881 10.4%
2% 23% 2% 21% 0% 5% 10% 15% 20% 25%
10,000 15,000 20,000 Catering Construction Transport Auto Body Repair
Total Local Economy RM GC % of Total Economy
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Entrepreneurial Needs High Priority
Medium Priority
Program Projections
Increase in Sales over 20 years: 464.0M
at the end of 20 years: 25.8M
increase in sales of 150 companies, with limited growth from Year 5 to Year 20
Program Focus
area
finance, development of new markets, diversification beyond mining
select businesses
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5 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 European Union Romania
Real GDP Growth Rate: Growth Rate of GDP Volume - % change over Prior Year
Romanian Population Characteristics
1 World Bank, World Development Indicators 2008. 2 Harmonized unemployment rate, European Commission – Eurostat 3 European Commission – Eurostat
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Romanian Goods and Services Reagents and Consumables Transport Drilling and exploration Security Contract Mining Services Cleaning Construction Services Social and Environmental Services Earth Works Rehabilitation Services Maintenance (mine fleet) Contract Maintenance Sample Prep and Analysis Contract Electrical and Instrumentation Light Vehicle Servicing Contract Blasting Services Forestry Monitor& Manage Tire Maintenance and Monitoring Catering Contract Surveying Services Accommodation Courier Rapid Service Closure Demolition (3 yrs only) House Demolition (3 yrs only) Potential Romanian Goods and Services Mining Reagents Grinding Media Mechanical Equipment Lubricants
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RMGC with potential suppliers
channels
requirements
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Local Supplier Development Ongoing Program to Identify and Develop Suppliers from the local community:
Regional and National Supplier Development
department to Romanian procurement
Romanian suppliers
advancement of Romanian economy. Local Economic Development 3 Year program to develop local business community:
training
for selected entrepreneurs
sectors (agriculture, timber, etc.) Local Economic Development Regional & National Development
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Local Purchases Supporting the local economy through USD 230 million of purchases over the life of the mine Local Economic Development Supporting the local economy through developing USD 464 million of additional sales for local businesses over the life of the mine Regional & National Purchases Supporting the Romanian economy through USD 3.3 billion of purchases over the life
Regional & National Economic Development Supporting the development of Romanian industries especially including hospitality, construction, earthworks, and mining related services
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