Karagwe, KageraMay 2014

• Brings disparate actors together

• Goal: common well-being• Faith-based model: Nehemiah• After Babylonian exile,

Jerusalem had to be rebuilt and guarded

• Everyone – rich, poor, lettered, ignorant – took part

• Annual tithe of 10% to the Temple

• Surrounding towns selected 1 of 10 to move to repopulate the city

• Definition: integrated ways to combine trees and shrubs with crops and livestock

• Goal: to increase the value of marginal land to benefit a diversity of life

• Outcome: surmounting the major plights of our planet – addressing the interconnected problems of:• Assured food supplies and year-round food security• Energy supplies• Water sufficiency• Climate change• Sustainable livelihoods and income

• A global virtual organization of experts: • Business• Forestry• Agriculture, permaculture, and food security• Agro-ecology and sustainable livelihoods• Engineering• Value addition and marketing

• Goal: a growing capacity to improve community wellness through learning integrated with earning

CSAL: Linked

toglobal market

sCSEs

producingquality foods

nutrition, health rural

infrastructureICT-based services

innovation for sustainable

living

primary producers in the Karagwe

region

Karagwe CIT

Karagwe CIT

• Initiated locally: leading investment by founders and builders of the Ahakashaka-based Solar Village Institute (SVI)

• This leadership connects with… • Karagwe E.L.C.T. and other faith-based organizations• commercial businesses, including farms and farm organizations• local NGOs including KADERES, CHEMA• foundations anywhere having goals related to health, food, feed,

agri-business, biodiversity, and natural resources management• Karagwe Council

• …To benefit from agroforestry-based learning, and to become potential supporters of, or investors in, Karagwe CSAL Program

• Organizations supporting practical education for enterprise creation, especially in rural areas, are well placed to initiate

• Goal: by empowering youth and women through enterprise to preserve ownership and control of local natural resources and traditional values while concomitantly improving the quality of life

• Example in Karagwe: Solar Village Institute (SVI) with E.L.C.T.-sponsored Bweranyange Secondary School of Girls brings a • sectoral focus on agroforestry linked with • profitable commerce led by local youth

• Intended outcome: to shift the predominantly passive mindset of youth toward an innovative, entrepreneurial approach for sustainable livelihoods through smart self-reliance

• A network of people and organizations of the extended Karagwe community

• Functions • organize• contribute and invest• lead and manage• own and benefit from the CSAL Program

• SVI oversees preparation by a qualified agency of a comprehensive Business Plan for the Program

• SVI presents its vision and ideas to widening circles of leaders in Karagwe

Goal: to create an informal network that is able to lead the Karagwe CSAL Program through its stages of growth

• Schools provide practical courses and extra-curricular learning using agroforestry science and its applications in profitable commerce of interest to youth of the beneficiary community

• The initiator encourages schools to form a Local Area School League (LASL), to function as a key part of the SLEN

• The LASL, an organization having business functions, explores the commercial potential of agroforestry-based learning through research and experimentation, on behalf of its member schools

• The LASL may also become a trainer of school leavers having entrepreneurial minds that prefer to “learn by doing,” through enterprise helping both themselves and others

• Outcome: the CSAL Program teaches, mentors, and helps local entrepreneurial leadership to create profitable CSEs

• Through agroforestry science, land that is considered marginal for growing food is improved, made more productive

• The use of land by the CSAL Program may be contributed as investment by individuals, cooperatives, churches, schools, villages, municipalities, corporations and NGOs

• Contributors of the use of land are compensated by up-front cash and by a share of revenues generated by the Program, as planned rigorously at the outset

• Karagwe BDSCom will be structured to serve as the central business institution of the Karagwe CSAL Program

• It will be modeled on the Certified Benefit Corporation, becoming common in many states of the USA

• BDSCom’s function, resembling that of the World Bank’s Climate Innovation Center program, will be an agroforestry-based learning center for Community Supported Enterprises (CSEs)

• Investors in this Corporation (cash and other value) will receive shares

• CSEs incubated by BDSCom and qualifying for investment will be financed by an endowment called a Community Investment Trust (CIT), providing “patient capital” including private equity for early-stage financing of CSEs

• The value of the Trust to industry with stakes in Karagwe is expected to motivate contributions of capital to this Trust for several years, achieving a sustainable scale of US$50 million in the CIT’s portfolio of private equity by 2023

• In BDSCom’s business plan, assets per share (paid for in cash) will then be 6 times book value; exit by re-issue of shares at new cost base

BDSCom’s operations are structured for growth in two phases: 1. Research phase • With partners for science, technology, and business, ideas and

people are tested, using lands available to BDSCom at Ahakishaka, KARUCO and other participating schools

• A program offering comprehensive Business Development Services (BDS) to client entrepreneurs with good ideas is built and managed by BDSCom

• Training and support for school programs is part of this program 2. Commercial planning phase• The BDS Program , serving as a business incubator during the

Research Phase, assists local entrepreneurial leaders to refine business plans for specific goods and services as products of the Research Phase

• Entrepreneurs pitch plans for CSEs to investors having high demand for financial return, short time horizons, and intolerance of risk

• BDSCom begins operations when:• current revenue from sale of shares and grants covers current

spending • its Business Development Services Program is ready to start• the Community Investment Trust is expected to receive

contributions for use as private equity in investment-ready CSEs

• Over time (e.g., a decade) BDSCom builds an investment portfolio for:• Edible and non-edible oils (consumption + biofuel)• Synergy of irrigation with power generation by biomass, wind,

and sun• Products of agroforestry-based farming: quality foods, legumes

(building soils and fertility), organic carbon, animal husbandry (meat, dairy), honey and beeswax, value-added agri/aquabusiness • Manufactures and services made profitable by affordable energy,

reliable water, and climate security (including transport and ICT)

• Solar and wind systems • Composting to improve soils• Mobile clean water generators• One-acre solar arrays with under

story for grazing by ruminants • Treecrops biofuel, power and

transport • ICT-based trade and finance services

Participating primary and secondary schools may create a Farm-To-School Program investing in:

• Fresh organic produce, especially tomatoes and their products

• Wood and manufactures of wood • Products of pollinators• Village composting • Village dairy• Conversion of agricultural and animal waste to

energy (biogas, briquettes for industrial heat, etc.) • School-based commercial farm kitchen, producing

briquette-fired organic whole grain breads, gourmet cheeses, and other high-value-added foods

• For current students: learn by doing in important new fields, linking learning to life

• For current faculty: improve curricula, motivate learning, improve teaching

• For the School’s business office: new sources of income, and supply of foods, materials, services

• For the School administration: find new ways to expand academic budgets, attract and hold better faculty, and add new grade levels to the curriculum

• For the School’s sponsors: create a stronger case for supporting their School and derive a collective sense of life achievement

• In general, the key for start-up is sourcing funds in the beneficiary Community itself, without creating debt. This can be achieved by local leadership grants and investment complemented by equity crowdfunding by the Community, matched by non-debt-creating external assistance. Key goal is to build Community financial autonomy and independence of external grants when efficient scale is achieved. Main components:

1.Equity seed capital by initiating investors plus donations for creation of the CSAL structure and capacity building in the beneficiary area

2.Capital grants and equity for the start up of the CIT and BDSCom3.“Patient capital” (recoverable grants , Program Related

Investments, private equity) to fund business preparation activities, particularly feasibility studies for an initial pipeline of enterprises

4.Public funding for legal/regulatory reforms and for supporting innovative education/training/research in area schools

5.PE “impact investment” in an expanding portfolio of CSEs Note: In the projections BDSCom does not need external grants

after 2019