New horizons: Accelerating Sustainable Development through Inclusive Business in Kenya
As a global advocacy and leadership platorm, Business Call to Acton (BCtA) challenges companies to make measurable commitments towards the Sustainable Development Goals (SDGs) through inclusive business models. If the SDGs are to be achieved by 2030, the role of the private sector cannot be underestimated: businesses are a key source of the innovations and investments needed to achieve these goals. While businesses can contribute in many ways, inclusive business models provide companies of all sizes with opportunities to tap into new markets and leverage their core businesses to fulfill the SDGs by directly impacting people living in poverty – and leaving no one behind. This publication is the first in a series of three produced by BCtA to highlight the efforts of its members and other inclusive businesses in Kenya, the Philippines and Colombia, focusing on both the opportunities and challenges of inclusive business. It aims to encourage companies’ engagement in inclusive business and contribution to the SDGs by ofering examples of successful and emerging approaches, and indicatng how governments and other stakeholders can support their establishment and scaling up. Inclusive business models provide goods, services and livelihoods in a commercially viable manner to people living at the base of the economic pyramid (BoP), integratng them into companies’ value chains as suppliers, employees, distributors, retailers or customers. Globally, the 4.5 billion people living at the base of the economic pyramid (BoP) are estmated to spend over US$5 trillion per year (in terms of 2005 purchasing power parity), making this a bigger consumpton segment than middle- and higher-income earners combined. In Kenya, the BoP market segment accounts for 84 percent of yearly household consumption. While inclusive business represents significant opportunities in Kenya, building commercially viable and impactful businesses requires patience, collaboration and innovation to develop an attractive value propositions for people at the BoP. Inclusive businesses also benefit from a supportive ecosystem comprised of other companies, government, civil society, academia and development partners – all of whom can enable inclusive business models to reach scale and have positive social impacts. This report highlights opportunities for inclusive business across five sectors: financial services, food and beverages, healthcare, infrastructure and skills building and education. It also shares insights gained from a survey, interviews and workshops on how inclusive business can be scaled to accelerate achievement of the SDGs by 2030.