Business Fraternity Can Save the Poorest

Private sector support of local businesses is needed for the poor in developing countries, argues the Minister of the Department for International Development.

Thaindian News
Published: January 21, 2009

London (ANI): Department for International Development (DFID) Minister Mike Foster here has said that the global financial slowdown is putting millions of people in poor countries at a risk of facing greater poverty and they need opportunities that businesses can offer to them.

At an event hosted here by the Department for International Development, the Overseas Development Institute and Business Action for Africa, to launch DFID’’s Private Sector Development Strategy, Mike Foster today said that the downturn had put jobs, profits and poverty reduction at risk, and it needed a new thinking and approaches for a sustained economic growth in poor countries.

“The 90 million people, who face extreme poverty because of the global slowdown, need the opportunities that business provides,” Foster said.

“We know that the private sector is the engine of economic growth, and we know that growth drives development. The corporate social responsibility approach of the last ten years does not go far enough. Supporting development is and must be a core part of what businesses do, not an altruistic add-on,” he added.

Also present on this occasion was the Oxfam CEO Barbara Stocking who said long-term investment was vital in developing countries and key sectors such as agriculture and finance.
Barbara Stocking also said, to ensure sustainable long-term development, there needed to be a dramatic increase in low-carbon private sector development to complement investment in adaptation mechanisms.

Speaker Standard Chartered Vice Chair Ann Grant said: “The biggest contribution the private sector can make to international development is to do business successfully and responsibly. One of the consequences of the global economic downturn will be a more urgent focus on how to harness core business activity as a means of generating more sustainable and effective development outcomes.”

“However, as company resources inevitably come under pressure, we need to place an even greater emphasis on new alliances and ways of working, and build the understanding and capabilities to make this work in practice,” Grant added.

Event sponsor Andy Wales, Head of Sustainable Development at SABMiller said: “At SABMiller, with 80% of our worldwide earnings come from emerging markets, it makes sound business sense for us to contribute directly to economic growth and healthy and prosperous communities in the countries we do business in. As our new Enterprise Development report shows, a key area of focus for us is maximising our business linkages to local economies through our supply and value chains, supporting local suppliers, distributors and businesses, which delivers significant and sustainable local development impacts.”

http://www.thaindian.com/newsportal/world-news/business-fraternity-can-save-the-poorest-from-financial-slowdowns-impact-uk-minister_100145283.html

GS Microfinance Bank Moves to Promote Agriculture in Nigeria

Lender recognizes importance of agriculture in rural areas of Nigeria and provides loans to improve farmers' yields.

Business Day
Oyibo Egwuoniso
Published: January 1, 2009

Committed to serving the rural community and promoting agricultural development in the country, GS Microfinance Bank has moved its services to a remote area on the outskirts of Lagos, granting loans to 25 piggery farmers at Oke Aro, Ogun State . Segun Adaju, managing director of the bank announced this during an annual prayer and thanksgiving service organised by the farmers last weekend.

Adaju said the bank’s movement to an interior place like Oke Aro in Ogun State was informed by its outlook of the business of microfinance banking which goes beyond the high street of Lagos to the potential customers who live where bankers would ordinarily not go.

According to him, “the importance of farming in an economy like Nigeria cannot be underestimated as it serves as the bedrock of other sectors,” adding that “the loans are meant to help the farmers improve their production and yield hence increase the output of food in the country and improve the farmers’ standards of living.

While informing those present that this is just the beginning, as it is a test case of the bank’s commitment to the farmers’ financial needs; Adaju assures that measures have been put in place to ensure that monies given are used judiciously.

Such measures, he disclosed, involves personally determining and giving the amount of loans needed by the farmers through an on ground assessment of the farms, encouraging the farmers to work in groups in order to checkmate one another on progress made and the use of special risk management techniques.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=2156:gs-microfinance-bank-moves-to-promote-agriculturen-&catid=107:microfinance&Itemid=288