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Publish Date: 2024-11-01

Harvard Case - Building and Scaling a Cross-Sector Partnership: Oxfam and Swiss Re Empower Farmers in Ethiopia

"Building and Scaling a Cross-Sector Partnership: Oxfam and Swiss Re Empower Farmers in Ethiopia" Harvard business case study is written by Jonathan P. Doh, Ted London. It deals with the challenges in the field of Social Enterprise. The case study is 22 page(s) long and it was first published on : Mar 23, 2012

At Fern Fort University, we recommend that Oxfam and Swiss Re continue to build upon their successful partnership, focusing on scaling their impact through a multi-pronged approach that leverages their respective strengths and addresses the key challenges identified in the case study. This approach should prioritize social innovation, impact investing, and sustainable business models to create a lasting and impactful solution for Ethiopian farmers.

2. Background

This case study examines the partnership between Oxfam, a global non-profit organization focused on alleviating poverty, and Swiss Re, a reinsurance company, in Ethiopia. The partnership aims to empower Ethiopian farmers by providing them with access to weather index insurance, which protects them from financial losses due to adverse weather conditions. The program has been successful in its initial stages, demonstrating the potential for cross-sector partnerships to address complex social and economic challenges.

The main protagonists are:

  • Oxfam: A non-profit organization with extensive experience in working with farmers in developing countries and a deep understanding of the challenges they face.
  • Swiss Re: A reinsurance company with expertise in risk assessment and financial products, including weather index insurance.
  • Ethiopian Farmers: The beneficiaries of the program, who are vulnerable to climate change and its impact on their livelihoods.

3. Analysis of the Case Study

This case study highlights the potential of social entrepreneurship and impact investing to create sustainable solutions for poverty alleviation and environmental sustainability in developing countries. The partnership between Oxfam and Swiss Re exemplifies the power of cross-sector collaboration to address complex social issues.

However, the case also reveals several challenges:

  • Scaling the program: Reaching a larger number of farmers while maintaining quality and impact requires significant investment and efficient distribution channels.
  • Financial sustainability: Ensuring the long-term financial viability of the program requires innovative business models and a diverse revenue stream.
  • Building trust and capacity: Farmers need to understand the benefits and workings of weather index insurance, and local partners need to be trained and equipped to effectively deliver the program.
  • Government policy and regulation: A supportive regulatory environment is crucial for the success of the program, including policies that encourage insurance adoption and promote financial inclusion.

4. Recommendations

To address these challenges and scale the program's impact, we recommend the following:

  1. Develop a comprehensive scaling strategy: This strategy should outline the target audience, geographic expansion, and key performance indicators (KPIs) for measuring impact.
  2. Invest in technology and innovation: Leverage digital platforms and mobile technology to enhance program delivery, improve data collection, and create a more efficient and accessible insurance system.
  3. Explore innovative financing mechanisms: Consider impact investing, social impact bonds, and blended finance models to attract additional investment and ensure long-term financial sustainability.
  4. Strengthen partnerships and build local capacity: Expand the partnership network to include local NGOs, microfinance institutions, and government agencies to enhance program delivery and build local expertise.
  5. Advocate for supportive government policies: Engage with policymakers to advocate for regulations that promote financial inclusion, encourage insurance adoption, and support agricultural development.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core competencies and consistency with mission: The recommendations align with both Oxfam's mission to alleviate poverty and Swiss Re's commitment to sustainable development and risk management.
  2. External customers and internal clients: The recommendations prioritize the needs of Ethiopian farmers while ensuring the long-term viability of the program for both partners.
  3. Competitors: The recommendations consider the competitive landscape and identify opportunities to differentiate the program through innovation and a focus on impact.
  4. Attractiveness ' quantitative measures: The recommendations aim to maximize the social and financial return on investment (SROI) by leveraging technology, innovative financing mechanisms, and strategic partnerships.
  5. Assumptions: The recommendations are based on the assumption that there is a strong demand for weather index insurance among Ethiopian farmers and that the program can be scaled effectively with the right resources and partnerships.

6. Conclusion

The partnership between Oxfam and Swiss Re presents a compelling example of social entrepreneurship and impact investing in action. By focusing on scaling the program, building local capacity, and creating a sustainable business model, the partnership can significantly contribute to poverty alleviation, environmental sustainability, and community development in Ethiopia.

7. Discussion

Alternative approaches could include focusing solely on grant-funded programs or relying on government subsidies. However, these options lack the long-term sustainability and scalability of the recommended approach.

Key risks include the potential for program failure due to insufficient funding, lack of government support, or inadequate local capacity. However, these risks can be mitigated through careful planning, strong partnerships, and ongoing monitoring and evaluation.

8. Next Steps

To implement these recommendations, the following steps should be taken:

  • Phase 1 (Year 1): Develop a comprehensive scaling strategy, conduct a pilot program to test new technologies and financing models, and strengthen partnerships with local organizations.
  • Phase 2 (Year 2-3): Expand the program to new regions, refine the business model, and advocate for supportive government policies.
  • Phase 3 (Year 4 onwards): Scale the program nationwide, establish a sustainable financing mechanism, and measure and report on the program's impact.

By taking these steps, Oxfam and Swiss Re can create a lasting and impactful solution for Ethiopian farmers, demonstrating the power of cross-sector partnerships to drive positive social and economic change.

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Case Description

Winner of the 2012 Oikos Foundation Casewriting Competition. Swiss Re, a large global reinsurance company, has partnered with Oxfam America, an international relief and development organization, to provide the poor with risk reduction support. The partnership's evolution shows students many common inter- and intra-organizational challenges. For example, the need to overcome internal biases, adapt to organizational differences, and build the capacity to learn from one another. Students will experience what is required to maintain this type of relationship, as well as understand adjustments needed when partnerships scale.

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