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. Technoserve Overview  Mission and Approach  Countries and Partners 2. Examples of Work in Mining Communities  Local Development  Regional and National Development 3. RMGC Potential  Summary  Local Development  Regional and National Development 4. Wrap-up  Methodology  Impact 2

TechnoServe Mission and Approach 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 Empower Entrepreneurs 1. Build Businesses & Industries 2. Transform Lives 3. Technoserve Engagement with RMGC To develop a plan to maximize the project’s sustainable development impact on the Romanian economy 3

TechnoServe Company and Partners Company Partners A U.S.-based, nonprofit economic development • organization. Philosophy: Private enterprise can drive • economic growth and positive social change; a hand up is better than a handout. History: Founded in 1968 by businessman Ed • Bullard, who pioneered the private-enterprise approach to solving poverty. Staff: Talented business advisors, many of them • former management consultants or industry experts. Partners: Leverage the expertise of strategic • corporate, non-profit and government partners. Funding Sources: U.S. and foreign government • agencies, multi-lateral organizations, corporations, foundations and individuals. 4

Where We Work London, UK Office Norwalk, CT Office Washington, DC Office Active Programs Benin Honduras Bolivia India Brazil Kenya Burkina Faso Mozambique Chile Nicaragua Past Work (extensive) Colombia Peru Democratic Republic Belize Côte d'Ivoire Rwanda Emerging Programs of Congo Costa Rica Ecuador South Africa Guinea-Bissau Dominica Guinea El Salvador Swaziland Madagascar Panama Malawi Ethiopia Tanzania Mali Poland Mexico Sudan Ghana Uganda Nigeria Guatemala Venezuela Zimbabwe Haiti Zambia 5

TechnoServe Recognition Rated one of the top 5 NGOs for corporate partnerships by the Financial Times • Named one of the world’s “ Outstanding Social Entrepreneurs ” by the Schwab Foundation • for Social Entrepreneurship Rated one of “ America’s 100 Best Charities ” by Worth Magazine • Received the Presidential End Hunger Award from USAID • “ TechnoServe’s partnership with our government is "I was greatly impressed by the bringing concrete results in the fight against poverty: variety of sectors that jobs, opportunities, and globally competitive industries.” TechnoServe is involved with — Aiuba Cuereneia, and the tremendous impact that Minister of Planning and Development, Mozambique TechnoServe’s work is having with regards to economic development and job creation." — Titus Brenninkmeijer, “Google is an entrepreneurial company, so we appreciate Founder of Solgenix and TechnoServe’s business focused approach to Energy Access Foundation development…Together we are helping men and women and TechnoServe member turn their good business ideas into thriving enterprises. since 1998 — Rachel Payne, Google.org manager 6

Contents 1. Technoserve Overview  Mission and Approach  Countries and Partners 2. Examples of Work in Mining Communities  Local Development  Regional and National Development 3. RMGC Potential  Summary  Local Development  Regional and National Development 4. Wrap-up  Methodology  Impact 7

Case 1: Developing Local Entrepreneurs Opportunity to develop small and medium enterprises within the Cajamarca region in partnership with the Yanacocha gold and Context 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. Identify 54 high-potential small and medium enterprise businesses in diverse sectors of the region. Deliver comprehensive entrepreneurship skills training program. Our solution Deliver practical and technical training. Facilitate access to finance. Improve the enabling environment by establishing SME financing relationships and funding models. Dissemination of the model for replication with other natural resource companies throughout Latin America and Africa. 54 small and medium enterprise entrepreneurs trained, resulting Results in US $1.8 million in incremental sales, 373 new jobs, and purchases from more than 1,500 local suppliers of agricultural primary products. 8

Case 2: Developing Regional and National Entrepreneurs Opportunity to develop local, regional, and national enterprises in Context South Africa in partnership the Lonmin Platinum mine. Focus on supporting women and minority owned businesses. Develop a network of over 500 minority owned businesses in South Africa. Restructure procurement policies and procedures Our solution to reach local businesses. Deliver comprehensive entrepreneurship and technical skills training program. Facilitated access to finance 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 Results over a two year period awarding them over USD 100 million in contracts Diversified local suppliers with goal of over 50% of sales from non mine sources. 9

Contents 1. Technoserve Overview  Mission and Approach  Countries and Partners 2. Examples of Work in Mining Communities  Local Development  National Development 3. RMGC Potential  Summary  Local Development  Regional and National Development 4. Wrap-up  Methodology  Impact 10

Summary RMGC Project Projections TechnoServe and RMGC have identified the potential for significant local, regional, and national benefits from the project (USD). Local Economic Development Projections RMGC Plan Additional Total Potential Potential Local purchase of goods and services 120 million 110 million 230 million Local economic development - - 464 million Total 694 million Regional and National Procurement of Goods and Services Projections RMGC Plan Additional Total Potential Potential Romanian purchase of goods and 2.5 billion 880 million 3.4 billion services (including local) 11

Local Context The local population is relatively small with high unemployment and significant out-migration. Population Characteristics  Local : Rosia Montana, Abrud, Campeni  Total Population: 16, 841 1  Aging population, 41% of working age 2  RM 14.86% official unemployment 1, 24.6 % salaried employment 2 , therefore high potential for unreported unemployment and underemployment  5% population loss over two year period Population Jan-06 3 Nov-08 1 % Change Rosia Montana 3,557 3,227 -9.3% Abrud 5,980 5,809 -2.9% Campeni 8,178 7,805 -4.6% Total 17,715 16,841 -4.9% 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. 12

Local Economy The local economy has 439 registered businesses generating 120.2M USD of sales in 2008, although the top ten businesses account for 53.5 % of all sales. 1 RM, Abrud, Campeni Sector 2008 Turnover Number of % of Sector Companies Employees Income USD Food and Beverage 39,557 Total Construction 19,314 Food & 23,700,617 Timber/Furniture 180 3 19.4 % 13,809 Beverage Manufacturer 11,819,896 148 Mining 1 9.7% Copper Mine 12,135 Timber/ 10,553,216 Transport 12,012 2 240 8.6% Furniture Other retail 6,920 10,424,027 201 Construction 2 8.6% Textile Industry and Retail 4,610 5,146,491 Transport 1 15 4.2% Other Service 4,207 Textile and 3,728,713 Other Wholesale 2,741 206 1 3.1% Retail Livestock 1,905 65,372,961 Total 990 53.5% Auto Body Repair/Part Sales 906 Other 893 Business Consultancy 776 Services Hotel 375 1 Romanian Companies Database www.romanian-companies.eu/default.asp Total USD 120,160 13

Local Purchase of Goods and Services Technoserve and RMGC have identified 230M USD of procurement opportunities that could create 445 entrepreneurial jobs locally over the life of the mine. 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) 14