Conference Presentation, Panel, Fireside Chat
Bridging Gaps in Development Finance: New Platforms for Frontier Markets
Milken InstituteAnne Heyman, Netanel Oded, Eytan Stibbe, Tally Zingher, Steve Zecher, Tali Zinger, Andrew Taylor
- Emerging market growth rates are projected to remain slightly above 5.5%, significantly outpacing advanced economies expected to grow at under 2%, with these trends continuing through 2014 and purchasing power parity shifts occurring between 2012 and 2013.
- Private capital is identified as essential fuel for growth in regions with underdeveloped credit markets, necessitating a paradigm shift where non-state actors and the private sector replace government monopolies on economic development policy.
- Vital Capital plans to scale affordable housing and village-level power stations (1–5 megawatts) in specific African nations including Angola, Congo, Ghana, Gabon, Ethiopia, Uganda, Mozambique, Djibouti, and Tanzania to address rural population dilemmas and energy needs.
- In Angola, Vital Capital aims to establish a private investment center with the Ministry of Agriculture to increase average family net income from the current $400–$500 range to over $5,000–$6,000 within six to seven years.
- Tali Zinger intends to utilize Kickstarter to fund student research in sustainable development, aiming to cultivate a lifelong cadre of leaders and influence future corporate employees to apply technology in developing markets.
- The Agahoso Shalom Youth Village model plans to expand to serve 100 million orphans in sub-Saharan Africa, leveraging partnerships with IT, modern agriculture, and solar energy sectors, including a specific Power Purchase Agreement with an Israeli solar company.
- The Israeli government is shifting its stance to view emerging markets as an economic necessity, planning to modify R&D subsidies for market-adapted technologies, improve export risk insurance, and expand university programs with voluntary work components in Africa.
- Andrew Taylor expects to fund approximately 300 innovations from low- and middle-income countries with $100,000 grants over 12 to 18 months for proof-of-concept development, utilizing government funding to bridge capital gaps for social enterprises.
- Broader strategic initiatives include creating community centers to teach local culture and skills at near-zero cost to street kids and women, as well as building platforms to facilitate the movement of people, ideas, and technologies between Israel and emerging markets.
- There is a consensus expectation to transform the market view of emerging regions from entities requiring philanthropy to partners requiring engagement, acknowledging opportunities extending to Central America and South Africa alongside African projects.