Local Business Initiatives

A promising innovation to integrate Nicaraguan smallholders into global value chains in a sustainable manner

Corstiaan van AalsburgPueblos en Acción Comunitaria, Nicaragua

www.apac.org.ni

Content

1. Country description2. Description of the organization3. Organizational development PAC4. Development Model: MADEL-PAC5. Local Business Initiatives6. Case study: Tomato7. Challenges

1. Country description

• Spanish colony• Violent 20th century• 2nd poorest country of

western hemisphere• Economy based on

imports• Free Trade

Agreements• Economic instability

2. Description of PAC• Member based organization for rural sustainable

development• Grew out of farmers interest during nineties• Corporative vision and social responsibility

Corporative mission: Create favorable environment for local economic development with participation of private actors in a transparent way

Corporative vision: Constitute as a national organization that catalyze local economic development

3. Organizational Development1. Formation and institutional incubation

• Program co-execution• Establishment of services

2. Strengthening of institutional capacities• Separate technical and administrative team• Development of strategic guidances

3. Operational self sustainability• Self sustainable operations• Design of MADEL-PAC

4. Development of development corporation

4. Development Model

Local Development

ECA

CSR

SOFRE

Actors of the model:• Farmer groups• Business Groups• Middle men• Supplying enterprises• Technology providers• Trading Companies

5. Local Business Initiative• Production according demand• Integration of value chains• Participation of as much actors as possible• Execution:

– Definition of LBI– Business plan formulation– Monitoring and Evaluation of impact of LBI

6. Case study• CAFTA opportunity:

Tomato export to El Salvador

• Idea discussed with actors

• BP with price negotiation

• M&E and redistribution among actors

Activity Income

Sales of technical assistance and seedlings

2,586.70

Trading services 8,872.46

Input sales 1,500.00

Total Income (US$) 12,959.16

7. Challenges

1. Scale planning: from LBI BP to OYP2. Updating ERP to new institutional

activities3. Improve measurement of impact

Let’s begin rebuilding right away! Nehemiah 2:18