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FINALCONFERENCEREPORT DutchMul4na4onalBusinesses,DutchGovernmentandthePromo4onofProduc4ve

EmploymentinSub-SaharaAfrica:ACompara4veStudyofKenyaandNigeria1

Friday,15September2017|PieterdelaCourt|Wassenaarseweg52|2333AKLeiden

Present: Winnie Mitullah (University of Nairobi UON), Ton Dietz (ASCL), Chibuike Uche (ASCL),Catherine Mukoko (Kenyan AssociaCon of Manufacturers KAM), Joyce Njogu (KAM), Paul Kamau(UoN), Bethuel Kinyanjui (UoN), ChrisCaan Buijnsters (FMO), ElsieOnsongo (CFIA-ISS), MarleenDekker (ASCL/INCLUDE),MariaVerscheer (NWO-WOTRO),RobertvanderHum(MINBUZA), IfeanyiOkoye(EnuguChamberofCommerce,Industries,MinesandAgricultureECCIMA),YarovanHeugten(MINBUZA), Anouk Baron (MINBUZA), ChiChi Nwosu (Crowland), Ifediora Amobi (African HeritageInsCtute), Haye Hazenberg (TU DelV, CFIA), Agnieszka Kazimierczuk (ASCL), Akinyinka Akinyoade(ASCL).

OpeningRemarksThemeeCngstartedwithawarmwelcometoalltheparCcipantsbytheprojectleaderProf.ChibuikeUche and a round of introducCons. The parCcipants represented a good mix of academics,pracCConersandpolicymakers.AwarmwelcomewasalsoextendedtoprojectpartnersandMariaVerscheer represenCng NWO-WOTRO. Prof. Uche gave a short introducCon to the project andpresentedthestatusoftheresearchprojectandthe(finalandforthcoming)researchoutcomes.Theresearchprojectisexpectedtodeliverfivebackgroundstudypapersandninecasestudypapers(seeTable1belowfordetails).Thebriefoutcomesandkeypolicymessagesfrommostofthepaperswillbepresentedinthecourseoftheday.

TheAfrican-basedprojectpartnerswere invited to reflecton their experiencewith regards to thejointcollaboraConwiththeAfricaStudiesCentreLeiden(ASCL)onthisproject.Prof.WinnieMitullahfromUniversityofNairobi(UoN,IDS)appreciatedmostthemulCdisciplinarycharacteroftheprojectand a possibility to work with a non-academic partner, like Kenyan AssociaCon ofManufacturers(KAM). Ms. Joyce Njogu from KAM highlighted the relevance of the research outcomes for theadvocacy work that KAM is engaged with in Kenya, parCcularly in relaCon to their work inMulCnaConal Companies (MNCs) Caucasus, Sustainable Development Goals (SDG), energy, TIVETtraining, industrializaConandlocalcontent.Theresearchproject isofparCcularvaluetoKAMas itwas able to generate valuable and reliable sectorial data that is not generally available from thenaConalstaCsCcsoffice.

Dr.IfeanyiOkoyefromEnuguChamberofCommercehighlightedtheresilienceofDutchMNCsinadifficultbusinessenvironmentinNigeriaandtheirmajorcontribuContolocalemployment.Healso

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1ThisresearchprojectispartoftheresearchagendaoftheKnowledgePla`ormonInclusiveDevelopment

PoliciesandfundedbytheMinistryofForeignAffairsthroughNWO-WOTRO

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talked of the added value ofworkingwith business associaCons from Kenya, like KAM. Finally,Dr. Ifediora Amobi, (former) Director of the African Heritage InsCtute complemented the mulC-stakeholder construcCon of the consorCum and the ability to deliver evidence-based research onsuch important topicsasproducCveemployment (PE).Theoutcomeswillberelevant for localandnaConal policymaking in Nigeria. A final word in this secCon was given to Prof. Marleen Dekker,coordinatorof the INCLUDEKnowledgePla`orm,whoappreciated thewell-balancedoutcomesoftheproject(theoreCcalcontribuConandmorepracCcalcasestudies),aswellasthecomposiConoftheresearchteam,whichisagoodmixofacademicsandpracCConers.

Table1.Projectexpectedoutcomes

BackgroundPapers

Thefirst part of the presentaCons focusedon thebackground studies.Dr. Paul Kamau (UoN, IDS)presented thepreliminaryfindingsandkeypolicymessagesonproducCveemploymentpolicies inKenya, while Dr. Bethuel Kinuthia (UoN, Economics) presented on industrial policies in Kenya. Dr.AkinyinkaAkinyoade from theASCL closed this sessionwith apresentaConabouthis forthcomingbookonEntrepreneurshipinAfricaandanarCcleaboutDangoteCement.

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Backgroundstudy CasestudiesKenya

• ProducCveemploymentpoliciesinKenya

• IndustrialpoliciesinKenya

• FlowersectorinKenya.Surveyresultsandcasestudies

• LakeTurkanaWindPowerProject:poliCcaleconomy

• LakeTurkanaWindPowerProject:employmentandsocialimpact

• Energysectorsurveyresults,includingcasestudiesofVivoEnergy:ShellinKenyaandAdrian:Kenyanrenewableenergycase

• UnileverTeaNigeria

• EntrepreneurshipinAfrica;abook• DangoteCementarCcle• LocalContentpaper

• BreweryIndustry(Heineken)• DairyIndustry(FrieslandCampina)• Food&homecaremanufacturing

(Unilever)• CocoasectorinNigeria.Casestudyof

TulipCocoa

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PlenaryDiscussion

ThefirstQ&AsessionwasmoderatedbyProf.WinnieMitullah (UoN IDS).ThequesCons fromthefloorrelatedtotheissueofwhatproducCveemploymentactuallyisandhowindustrializaConrelatestothe‘decentwork’debate.ItalsocoveredtheextenttowhichmulCnaConalcompaniescanplayarole inpushingtheglobalresponsibilityagenda.TheresearchteamhighlightedtheroleMNCsandprivate sector play in job creaCon and theupgradingof naConalworking standards inAfrica. It isimportant, however, that they acCvely engage with the naConal economy, crucially through thebackwardlinkagestheyhavecreatedand,increasingly,throughthelocalcontentlegalrequirement.The MNCs should also prioriCze the sustainability of their operaCons and engagements in thecountryof theiroperaCons.RegardingtheemploymentcreatedbyDutchMNCs, tosomeextent itcanbeconsideredproducCveifitresultsinanindividualbeingemployedonalong-termcontract,atalevelappropriatetohisorhertraining,andatalevelofpaythatenablesboththeemployeeandhisorherfamilytoliveabovethepovertyline.ThesetypesofjobsareoVencreatedbyMNCs,buttheir number is limited. Furthermore, in pracCce, it is sCll difficult to find all the necessary skills,whichmeansthatnotallemploymentcanbeproducCve.Formanypeoplethough,workingasanon-skilledemployeeissCllanimportantsourceofincomeforsupporCngtheirfamilyandeducaConfortheirchildren,orasameanstoaccumulateenoughcapitaltoaffordthemtheopportunitytoopentheirownbusiness.ThesituaConisverydynamic.

CaseStudies

Followingabreak,thesecondblockofpresentaConsfocusedonthecasestudiesconductedinKenyaandNigeria. CatherineMukokofromKAMpresentedoutcomesandpolicymessagesrelatedtotheflowersectorinKenya,whileAgnieszkaKazimierczukfromASCLdemonstratedthepointsontheLakeTurkanaWindPowerProject,thelargestwindfarminAfrica.RegardingthecasestudiesconductedinNigeria,Dr.OgbuaguEkumankama fromASCLpresentedhis resultsandpolicymessages regardingthecocoa sector,basedon thecase studyofTulipCocoa,andProf.ChibuikeUchepresentedcasestudiesonHeinekenandFrieslandCampina.

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PlenaryDiscussion2

AVerthepresentaConofthecasestudies,Ms.JoyceNjoguopenedthefloorfordiscussion.TheroleofthegovernmentwasinquesCon:shouldthegovernmentcreateanenablingenvironmentand/oract as a provider of raw materials. Furthermore, what level of government are we looking at:naConal or local. In addiCon, the overall role of the private sector in developmentwas raised. Inresponse,theresearchteamconfirmedthatthegovernmenthasamajorroletoplayinsupporCngthe operaCons of the private sector in their country. The naConal polices have the role ofsafeguardingnaConalinterestsandsCmulatelocaleconomythrough,e.g.limiCngtheexportquotasof raw materials (as Cote d’Ivoire did for cocoa exports). Another important aspect for thegovernment is to ensure that the policies are consistent, as this is one of the factors that cansubstanCallyaffecttheeconomy.It ispartlytheroleofacademicstoinvesCgatebusinesshistoryinthe country in order tounearth and informpolicymakers about the (un)intendedeffects of policychangesoverCmeon localand internaConalbusinessoperaCons.Finally, it is importanttoengagewiththelocalgovernment,astheyareinamuchbeoerposiContohelpcompaniesidenCfythe‘real’stakeholders.

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Onthe roleof theprivate sector indevelopment, it is imperaCve toacknowledge that theprivatesector is not the soluCon as such, but it is a means to achieve sustainability. Researchers andpolicymakersmustexaminewhereandhowjobsarecreated,whogetsthem,whatisthebenefittothelocalcommunityandwhatistheeffectonlocalinequaliCes–aretheyacceleratedordiminishedbythepresenceofaMNC?ThiswaspartlyaddressedinthecasestudiesoftheLakeTurkanaWindPowerProjectandtheflowersector inKenya.Consequently,MNCsmustbeawareofandopentoassessingtheirownlocalimpactonsocialissues,naConaleconomics(especiallythebackwardsandforward linkages, as well as the role of the middleman), their (opCmal) land use and theirinteracConswithlocalcommuniCes.Thisaspectwasprimarilyaddressedthroughtheproject’scasestudy of Heineken in Nigeria. It is extremely important to consider and engage with localcommuniCeswheninvesCnginAfrica.

TheresearchteamalsoarguedthatcarefullydesignedandlocallyconsultedsocialinvestmentsareacrucialelementofMNCs’operaConsinAfricaandcancontributetoareducConinlocalinequaliCes.MNCscanbecome‘SDG-consciouscompanies’andhaveaposiCveimpactondevelopment,butitisimpossibleforonecompanytoaddressallexisCngchallenges.Overall,naConalgovernmentscannotexpect the private sector to do their work for them and outsource the development andoperaConalizaConofnaConalpolicestomulCnaConalcompanies.

WhilewaiCngforMrDebiroMsheila,delayedatSchipholairport,Prof.TonDietzfacilitatedadebateon ‘decent work’. What is decent work and how should it be measured? The concept is gainingprominencethankstotheSDGsandILOagendas,aswellasanumberofnaConal iniCaCves.ManyAfricancountrieshavea legalminimumwagerequirement,but it isoVenlowerthana livingwageanditismorallydifficulttoagreewheretodrawaline.Itisalsomorallydifficulttodefine‘indecentwork’,asshownbytheexampleofatobaccoprogrammeinKenya,whichwasiniCallyproposedaspartoftheKenyanfoodsecurityagenda,butsubsequentlyrejected.AnintenseaspectofthisdebateisthatlaborforceparCcipaConinAfricaisaffectedmorebyunderemployment–andinthecurrentsituaCon where populaCon growth is increasing at a rate faster than economic growth (oreconomies)–andthiswillconCnuetobethecase,giventhehighlevelofinformalemploymenteveninsomeoftheso-calledmiddle-incomeSSAeconomies.Oneofpossiblealleystoexploreistolookinto the informal sector (which currently generates the majority of jobs) and see if there is apossibilitytoimprovetheworkingcondiConsbyformalizingit.

Prof.UchethankedtheparCcipantsfortheirpresenceandacCveparCcipaCon.WithMrMsheilasCllstrandedatSchiphol, theteampromisedtosharethewrioentesCmonyofhisownproject impactpathway(seesecConbelow).ThemeeCngwasclosed.

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ProjectImpactPathway:successstoryofYakubuA.MsheliaDebiro

Mr.YakubuA.MsheliaDebiroisafarmerbyprofession,andthemanagingdirectorofDebiroAgro-Chemical&Farms,inBiuLocalGovernmentArea,BornoState.Since2006,hehasrankedamongthetopfivefarmersinNigeriaandhehasestablishedfarmcomplexesinatleastfivedifferentlocaConsin the country. The destabilizaCon of North-east Nigeria by the Boko Haram conflict led to hisrelocaContothesouthernstateofKaduna,whichisontheborderofAbuja(Nigeria’sFederalcapitalTerritory).

Link to the Dutch MNC Produc4ve Employment Project: Mr. Mshelia was recommended andintroduced by Dr. Omo (Senior Technical Adviser to the former Minister of Agriculture & RuralDevelopment, 2014). This led toMr.Mshelia’s presence at the first stakeholder workshop of theprojectheldinLagosinJanuary2016.

First result:Mr Mshelia’s interacCon with the Deputy Ambassador at the workshop led to hisinvitaContoaworkshoporganizedbytheDutchEmbassyinLagos,todiscussthestandardizaConofbeansproductsinNigeriaandexporttotheNetherlands.AtthismeeCng,Mr.MshelialaidbaretheacCviCes of middlemen, which had been jeopardising quality control. To curbmalpracCce of themiddlemen, an interim arrangement was made to deal with the merchants to enable them tounderstandtheclasses/gradesofgrainsbeforeaoempCngexport.

OtherResults:Mr.MsheliaalsoparCcipated in thesecondstakeholderworkshopof theproject inAbuja, June 27-28 2016,where he brought over 40 small-scale sorghum farmers fromNorth-eastNigeria tobepartof themeeCng.At theendof themeeCng, the40 farmersexpressedaposiCveassessment that indicated: (i) acquisiCon of greater awareness and enlightenment on GoodAgriculturalPracCces(GAP),whichwouldhelpthemtoexpandtheirfarmsandproducCvity;and(ii)opportuniCesforbeoerinteracConbetweenfarmersandnomadiccaolerearers.

Furthermore,Mr.Mshelia parCcipated in another stakeholder workshop for the project in Lagos,January26-272017,hostedby theDutchembassy. It led to the introducConofMr.Debiro toMr.HenkWymenga, ExecuCve Director of Nigerian Brewery Limited andMr. UzodinmaOnuoha, RawMaterialDevelopmentManager also ofNigerianBrewery Limited. ThemeeCng resulted in officialagreementthatMr.Msheliawouldgrowandprovide10,500MTofCSR01&02(whiteSorghum)forthecompany (NBL), commencing from the2017wet farming season.The small-scale farmers thatparCcipated in the June 2016 Abuja meeCng have been co-opted to parCcipate in this scheme,starCngwithonehectareeach,soastofulfiltheSorghumpre-order.

OtherlinkagesthatarosefromtheLagosworkshophaveresultedinaddiConalagreementbetweenMr. Mshelia and Nigeria’s Federal Ministry of Agriculture and Rural Development, in which theformer will produce 450MT of sorghum seeds that the Ministry will share among farmers tosCmulatefurtherproducConofsorghuminsixNigerianstates.

Basedon thesesuccesses,Mr.Msheliawas invited to theproject’s stakeholdermeeCng inNairobiKenyaFebruary23-24,2017.TheforumprovidedanopportunityforMr.Msheliatomeetwithkeystakeholders inKenyanAgriculture.AtthemeeCng,he interactedwithsomefarmersandenquiredabouttheviabilityofsorghuminKenya.HecreatedalotofawarenessbyhighlighCngtheadvantagesofsorghumovermaize.SitevisitsconductedbyMr.MshelialedtothediscoverythattheCSR01&02varieCesofsorghumwilldowellintheKenyanterrain.ThesevarieCesofwhitesorghumare

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highlynutriCous,especiallyforpregnantandnursingmothers,andareexpectedtocontributetothealleviaCon of malnutriCon in the sub-region. Mr. Mshelia held promising discussions withrepresentaCvesoftheEastAfricaSeedCompany,forseedexchangeandresearch.Mr.Msheliaalsomet with the Director Ministry of Kenyan Agriculture and the Special Adviser to President onAgriculture. Discussions were held on potenCal areas of collaboraCon with respect to sorghumculCvaConandconsistencyofgovernmentpolicies.

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FINALCONFERENCEPROGRAMMEDutchMul4na4onalBusinesses,DutchGovernmentandthePromo4onofProduc4ve

EmploymentinSub-SaharaAfrica:ACompara4veStudyofKenyaandNigeria

Friday,15September2017Room:FSWBoardroom(1stfloor);FSWBuilding,PieterdelaCourt,

Wassenaarseweg52,2333AKLeiden

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PROGRAMMECOORDINATOR:AKINYINKAAKINYOADE

TIME ACTIVITY RESPONSIBILITY

8:30–9:00 ArrivalandRegistraCon ASCL

9:00–9:20 WelcomeandprojectintroducCon Prof.ChibuikeUche-ASCL

9:20–9:40 Welcomefromtheprojectpartners

Prof.WinnieMitullah–UniversityofNairobi(IDS)JoyceNjogu–KenyanAssociaConofManufacturersDr.IfeanyiOkoye–EnuguChamberofCommerceDr.IfedioraAmobi–AfricanHeritageInsCtuCon

9:40–9:45 WelcomefromtheINCLUDE Prof.MarleenDekker

BACKGROUNDSTUDIES

9:45–10:15

• ProducCveemploymentpoliciesinKenya

• IndustrialpoliciesinKenya• EntrepreneurshipinAfrica&Dangote

Cement

Dr.PaulKamau–UoN

Dr.BethuelKinuthia-UoNDr.AkinyinkaAkinyoade–ASCL

10:15–11:00 Q&AsessionmoderatedbyProf.WinnieMitullah–UniversityofNairobi(IDS)

11:00–11:15 Break

CASESTUDIES

11:15–12:00

• Flowersector• EnergySector/LakeTurkanaWind

PowerProject• TulipCocoa• FrieslandCampina• Heineken

CatherineMukoko–KAMAgnieszkaKazimierczuk–ASCL

Dr.OgbuaguEkumankama–ASCLProf.ChibuikeUche–ASCLProf.ChibuikeUche–ASCL

12:00–12:45 Q&AsessionmoderatedbyJoyceNjogu–KenyanAssociaConofManufacturers

12:45–13:15Projectimpactpathway:InterviewwithMsheilaDebirofromDebiroAgro-Chemicals&FarmbyDr.IfedioraAmobi&Dr.IfeanyiOkoye

13:15–13:30 Finalremarks Prof.ChibuikeUche-ASCL

13:30–14:30 Lunch