Doing business with most of the world

Beijing, 31 March 2006 - The Netherlands' development organization SNV and the World Business Council for Sustainable Development (WBCSD) have formed an unconventional alliance to focus on the next big market opportunity: providing business solutions to meet the needs of the developing world, which will be home to 85% of the world’s 9 billion people by 2050.

The 180 WBCSD member companies have a combined annual turnover of more than USD 5 trillion, and their products and services touch the lives of about 2.5 billion people every day. Many are already doing more business in the developing world and are looking for ways to expand their activities.

SNV has deployed over 1,000 technical experts across 30 developing countries to improve producers’ abilities to become reliable and competitive business partners on the world stage to generate jobs and income as well as increase the quality of and access to basic services necessary for sustainable development.

Often considered high-risk, the developing economies could present significant business opportunities for visionary companies equipped to operate within them. Whether they are looking for new markets or ways to reduce their operational costs, big companies are waking up to the fact that low-income communities may provide them with an unusual competitive advantage. In doing so, companies create wealth in the local communities to help people meet their basic needs for food, clean water, housing, education etc, as well as providing opportunities to pursue their own sustainable development.

By working together, the WBCSD, its 55 national partners and SNV will provide a platform for progressive companies to identify and pursue business opportunities with low-income communities. Julio Moura, CEO and chairman of the Latin American holding company GrupoNueva notes that "GrupoNueva has set itself the ambitious target of gaining 10% of its sales revenues from low-income communities. We are looking for creative ways to reach our goal and are very excited that other companies will join in our ambition through this partnership with SNV. Already GrupoNueva is marketing simple irrigation systems that can help Guatemalan farmers triple their incomes."

SNV’s Robert de Jongh, regional director for Latin America, is convinced that "development in emerging markets cannot succeed without business. Conversely, business cannot succeed without an active and engaged civil society, committed to holistic solutions, and most importantly, relentlessly pursuing active partnership with business."

Shona Grant, director of the WBCSD’s Development Focus Area, believes that "this partnership is innovative in that it focuses on building bridges and linkages between parties that would not normally do business together. Our members are enthusiastic about the potential that this partnership brings and are eager to get involved."

As well as making good business sense, this could provide a major contribution to development, in terms of jobs creation, access to basic services and opportunities for self-empowerment. Beyond profit, this partnership could open a route out of poverty for many.

More information:

• Shona Grant, WBCSD Development Focus Area, +41 22 839 31 25

Author WBCSD Publication Date 31 Mar 2006 Document Type Press updates WBCSD news Issue/Topic Development Region Asia Country China Company GrupoNueva S.A. Source WBCSD Include In RSS Business & Development News WBCSD News & Updates