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Press Release
7 May 2008
Two companies unveil new plans to boost economic growth in Kenya
Today, at the Business Call to Action event in London, Cisco and
Vodafone, two of the world’s leading companies, announced new initiatives that
will help boost economic growth in Kenya..
UK Prime Minister Gordon Brown, the Administrator of the United Nations Development Programme, Kemal Dervis, and UK Secretary of State for International Development Douglas Alexander welcomed more than 80 CEOs from the world’s largest companies to the Business Call to Action event to discuss how they can use their core business activities to help reduce poverty in the developing world. The Business Call to Action event highlighted initiatives by more than a dozen global companies, including Citi Group, Coca-Cola, Diageo, Microsoft, Thomson Reuters, Sumitomo Chemical, and Vodafone – with a view to inspiring others to do the same.
Over the next five years, the initiatives are expected to create thousands of jobs and potentially benefit the lives of millions of poor people across Africa, Asia and Latin America. They are part of a concerted push to meet the Millennium Development Goals (MDGs) that will enable poor people to access up to the minute information, money and business expertise as well as creating new businesses and employment opportunities.
At the event Cisco announced plans to expand LifeLines, a phone-based agricultural advice service, to help up to 500,000 Kenyan farmers boost productivity, while Vodafone’s M-PESA money transfer service in Kenya was showcased as an example of how companies can use their core business to help reduce poverty in the developing world.
President John Kufuor of Ghana and President Paul Kagame of Rwanda will attend the event.
Douglas Alexander said:
“Although we are over halfway towards the MDG target date of 2015, we are not halfway to meeting the MDGs. It is time to take concerted action to save lives and business has a key role to play in the push against poverty. Long term economic growth is vital to the fight against global poverty and business investment is vital to building economic growth.
“Africa and other parts of the developing world offer a wealth of business opportunities that make real commercial sense. I am hopeful that after today’s event businesses will be inspired to make concrete commitments and to speed up action they have already planned. These commitments could have a life changing impact on literally millions of poor people.”
At the UN in July 2007, the Prime Minister made a Call to Action to governments, businesses, NGOs and faith groups to focus resources and effort on delivering the MDGs by 2015, recognising that without a collective effort these goals will not be met. Some of the world’s leading companies signed up to the Call to Action, and this event is the next step in that process.
Kemal Derviş, UNDP Administrator said:
“In the race to achieve the MDGs, one of the greatest untapped resources is the private sector. Businesses are engines of growth and sustainable development. Innovative business leaders, both in the North and the South, are changing the way that many businesses operate. They are expanding beyond traditional business practices, to also focus on the needs of those locked out of the global market, bringing them in as partners in growth and wealth creation. Such creative approaches and partnerships are essential in catalysing vibrant new markets that can contribute to advancing inclusive growth and development.
“The Business Call to Action is not a one off event, but a commitment to speed up progress on the MDGs, to create a prosperous world for all. In that spirit, UN Secretary-General Ban Ki-moon, will convene, in September, a high-level meeting on the MDGs, bringing together world leaders, civil society and the private sector to help translate existing commitments into action and bolster the global partnership for development.”
In announcing the Cisco’s initiative Senior Vice President Tae Yoo said:
“Cisco believes corporations can play a key role in global social economic development, especially by bringing their core business skills to multi-stakeholder partnerships that focus on addressing complex development issues such the 'digital divide' and 'global education’. The success of LifeLines demonstrates the power of collaboration among the private sector and NGOs partners to develop relevant ICT solutions that transform individuals’ lives and improve economic development opportunities for rural communities around the globe.”
Cisco, in association with BT and OneWorld, is planning to expand the LifeLines service which currently provides productivity enhancing agricultural advice to 40,000 farmers in 700 villages in India. Cisco estimates that the LifeLines service can be developed over 5 years to provide information on pesticides, crop yields, animal husbandry and market opportunities to 500 000 farmers in Kenya.
In announcing Vodafone’s initiative Arun Sarin, Chief Executive Vodafone Group plc said: “The remarkable growth of mobile technology has not only provided access to communications for millions but also has helped stimulate economic development in emerging markets through increasing access to basic financial services. For example Vodafone's money transfer service, M-PESA was launched last year in Kenya and now has over 2 million customers. Our commitment to the Millennium Development Goals is to ensure that we build on this success. We will launch M-PESA in India within the next 12 months.” Vodafone’s M-PESA service enables people to transfer money using their mobile phone. Cash is paid in to and withdrawn from a customer’s M-PESA account at Agent outlets, which typically include the local mobile phone dealers, petrol stations, supermarkets, local shops and even bank branches. Through this expansion, basic financial services will be available to people in Kenya thereby enabling economic development.
Commenting on the initiatives DFID Kenya Head of Office Simon Bland said:
“These business initiatives are especially welcome in Kenya, to help economic recovery after the election crisis. There is an urgent need to boost agricultural production, in light of the damage to food production from post-election violence, rising world food prices and potential drought conditions this year. Effective additional financial services and agricultural advice will contribute significantly.”
The Business Call to Action is not about philanthropy
It challenges companies to use their core business – whether it be manufacturing, finance, telecommunications – in a way that contributes both to the MDGs and to their commercial success. It aims to inspire CEOs and companies to realise that reducing poverty also makes good business sense. By building a safer and more prosperous world, businesses are securing future commercial success. It’s been just over seven years since 189 world leaders endorsed the MDGs. The Goals represent a global partnership to promote poverty reduction, education, maternal health, gender equality, and aim at combating child mortality, AIDS and other diseases. More than halfway to the target year, the MDG track record is mixed. Considerable progress is being made, but many countries are falling behind, with sub-Saharan Africa most at risk. The region is not on track to meet a single MDG by 2015.
Plans are being put in place to monitor the commitments companies make. By learning lessons on what works well for both businesses and poor communities, this can be replicated globally.
The Business Call to Action is part of a major campaign called the
Call to Action, which seeks to accelerate progress towards meeting the MDGs by 2015.
During 2008 - a critical year for action on the MDGs - the campaign and its
supporters aim to build momentum and galvanise initiatives from businesses,
governments, NGOs, faith groups and civil society. A pivotal moment will be the
UN Secretary General's high-level event on the MDGs in New York on 25 September.
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Notes for editors
1. The Business Call to Action event is taking place in London on 6 May, hosted by HMG and UNDP.
2. A
video
and audio news release is also available now – this showcases seven of the initiatives from Citi Group, Coca-Cola,
Diageo, Microsoft, Sumitomo Chemical, Thomson Reuters and Vodafone, and includes
footage of their global CEOs talking about the transformational impact that the
projects will have.
3. The Millennium Development Goals are eight goals to reduce global poverty
that were agreed by the international community in 2000, with a target date of
2015. For more information see the accompanying UNDP Fast Facts sheet, or visit
www.undp.org
4. Expanding the Lifelines service to Kenya is expected to result in enhanced productivity and product quality for a community of 500,000 farmers in Kenya. Based on the experience of the project in India this would yield price increases between 25% and 150%. The platform is also capable of delivering other services, which would help support the delivery of a range of MDGs. Cisco will be looking for opportunities to introduce the expansion of other services.
Media contacts: UK Department for International Development - Amanda Rose,
amanda-rose@dfid.gov.uk
United Nations Development Programme - Chandrika Deshpande, +44 (0) 20 7759
8114, e-mail chandrika.deshpande@undp.org
or visit
www.undp.org
Links
- Live webchat with Douglas Alexander - 6 May 2008
- How we fight poverty: Stronger economies
- How we fight poverty: Trade