Opportunities for the Majority Portfolio “Comes to Life” at Washington Workshop

 On Tuesday, February 15, 2011, the IDB’s Opportunities for the Majority initiative held a daylong workshop showcasing executives from many of its client companies. The event  demonstrated a wide range of the Base of the Pyramid projects supported by OMJ, and  highlighted what OMJ and its clients have learned about how to develop successful BOP business models. Close to 200 people attended, including IDB staffers, representatives from many of OMJ’s strategic partner organizations, impact investors and others who work in fields related to BOP business development, 

In opening remarks the morning of the workshop, IDB President Luis Alberto Moreno and other senior bank managers recalled that it has been not quite five years since the founding of Opportunities for the Majority. Now, the team has built up a list of over 20 projects that rivals the portfolio of any impact investor.

Harvard Business School professor Michael Chu, a noted expert on BOP business, then spoke about the rapid growth of such projects over the last several years. He said the field is going from “1.0 to 2.0” as more and more companies begin to witness the potential of BOP business.

But the real focus of the day was on meeting the clients who traveled from Latin America to participate. In five thematic panels, executives from a variety of companies spoke of the challenges they had encountered and the successes they have enjoyed as they developed and launched their BOP business projects. All the speakers expressed pride and passion as they described their hard work in innovating new products and services to reach the BoP and generate social impact in the communities where they operate. For members of the audience, it was as if OMJ’s portfolio had suddenly come to life! In between panels, the hallway was crowded with people exchanging business cards and comparing experiences. Innovative new partnerships are already growing out of those coffee break encounters.

The panels were:

• "Using Distribution Platforms to Reach the Last Mile," with Luiz Velasco of Mi Tienda, Marco Gorini of VoxCred Tenda, Ana Cristina Rendon of Empresas Publicas de Medellin and Jose Pablo Arellano of Banco BCI. The panelists discussed how their companies have used innovative partnerships and platforms to achieve scale in their operations and to build effective networks that reach low-income communities.
• "Access to Basic Services for the BOP," with Francisco Vizcaya of FINAE, Julio Santamaria of CEMEX, Luis Sosa of Vision Banco and Francisco Alvarenga of Caja de San Vicente-Fedecredito. The panelists explored how the private sector is using new methodologies and payment systems to provide low-income people with access to key basic services like housing, infrastructure and education.
• "Using Information Technology to Bridge the Financial and Digital Divide," with Gino Picasso of Globokasnet and Juan Carlos Martinez of Movistar. These panelists spoke about how cutting-edge technology can help generate economic inclusion and ensure equal access to information for all people.
• "Investing in the Health Sector," with Caroline Misan of VisionSpring, Mario Ancalmo of Ancalmo Laboratories, Rodolfo Muralles of Salud a Su Alcance and David Green of Conversion Sound. The panelists shared stories about how the private sector is undertaking the challenge of providing quality affordable and accessible health care and nutrition in low income communities,
• "Opportunities for the Rural Poor: The BOP as Core Partners in Market-Based Linkages," with Marco Aldana of Fondo para Pequenos Productores, Pablo Burbano of La Fabril, Ray Clavel of LATCO and Lorenzo Osvaldo Capece of Cooperativa La Riojana. The panelists explained how they are finding win-win solutions by providing small producers with access to working capital, modern production processes and higher value-added products.

Over lunch, impact investor Antonio Moraes Neto and sociologist Luciana Aguiar spoke about some of the unique characteristics of BOP populations in their home country, Brazil. This June, Sao Paulo will be the setting for a large IDB conference on the BOP in Latin America and the Caribbean. The event should be a great opportunity to continue the conversation begun in Washington, and to work together to plan bigger and better projects. Click here to sign up for more information on the conference as it becomes available.

In the meantime, click here to access a video archive of the entire workshop, which should be available until mid-March. And keep checking the MajorityMarkets.org blog—we will bring you some video highlights and more over the coming weeks.