Corporate Leaders Launch Business Alliance Against Chronic Hunger

1 June 2006 - Cape Town

Cooperative multi-industry effort to reduce chronic hunger is the first of its kind

As the World Economic Forum on Africa convened in Cape Town, business leaders united to launch the first ever National Council of the Business Alliance Against Chronic Hunger. This diverse group of business leaders, politicians and representatives from civil society will work together to create innovative and scalable market-based solutions to the persistent problem of chronic hunger in Kenya.

“Business can play an important role in addressing the root causes of chronic hunger,” said William Hickey, Chief Executive Officer of Sealed Air Corporation. “We are ready to commit our experience and expertise to help build solutions to this problem.”

“Chronic hunger is a very real problem in the parts of the world where we operate, and for this reason Unilever has joined the Business Alliance Against Chronic Hunger,” said Diego Bevilacqua, Group Vice-President of Africa, the Middle East and Turkey for Unilever. “By combining our knowledge and interests with those of our partners, we can catalyse concrete actions to reduce chronic hunger and poverty in Kenya,” he said, noting that Unilever can source from farmer cooperatives, increase access to nutritious foods and conduct information campaigns on health and hygiene.

The Kenyan government strongly supports the initiative, said Romano Kiome, Permanent Secretary, Ministry of Agriculture. “We welcome this partnership and believe it will strengthen our ongoing efforts to meet the urgent food and nutrition needs of Kenyans,” he said. The country’s hunger levels worsened considerably this year due to severe drought.

Kiome kick-started the Kenya National Council last week, hosting a meeting of Kenyan companies such as Safaricom, National Oil Corporation of Kenya and First Africa Capital to identify practical actions such as creating workable microfinance schemes or fuel pricing opportunities for groups of small-scale farmers. "The most exciting aspect of the National Council is that it enables Kenyan businesses to take concrete action to reduce poverty and hunger. We heard great enthusiasm for this approach," said Helena Leurent, Associate Director at the World Economic Forum and project manager for the Alliance.

At the World Economic Forum on Africa today, companies across the value chain pledged their support to the initiative: Unilever, Sealed Air, Monsanto, Pick 'n Pay, Motorola, HP, Haco Industries and Sameer Group Investments.

The Alliance will focus its initial efforts on the Siaya District in Western Kenya. "Siaya is the poorest district in Kenya. 64% of its inhabitants live below the poverty line of US$ 1 per day and only 23% have access to safe drinking water. The district has a 24% HIV/AIDS prevalence rate; there is only one doctor for 96,000 people; and more than 20% of children die before reaching their fifth birthday," said Martha Stack, Director, Consumer Industries at the World Economic Forum. "In many ways Siaya has been a forgotten region. But despite these grim statistics, our business leaders are committed to working with government leaders, NGOs and international organizations to build a sustainable economy in Siaya. We will help to empower the residents to lift their community out of extreme poverty."

In discussions at the World Economic Forum on Africa, participating companies discussed specific actions they can take in the Siaya district in the near term. They will evaluate the business case for both local entrepreneurs and larger-scale companies to engage in these opportunities before convening in Nairobi in early September.

The Alliance will collaborate with the Millennium Villages Project, led by economist Jeffrey Sachs, which is working with a group of villages in the district to boost food production, improve health, water and education access as part of a ten-country effort to help communities meet the Millennium Development Goals. Technoserve, a US-based non-profit group specializing in small-scale business development, will also be a core partner in the effort.

The Business Alliance will seek out additional corporate participants, including both Kenyan and multinational companies, to help meet specific needs in the district. “The World Economic Forum is proud to have played a key role in the formation of the Business Alliance Against Chronic Hunger, and looks forward to supporting the Council and catalysing action through its networks, knowledge and convening capacities,” said Jean-Pierre Rosso, Chairman of the Centre for Global Industries at the Forum.

The Business Alliance marks the outcome of a year-long series of meetings and analyses facilitated by the Forum to define the role of business in reducing chronic hunger. At the Forum’s Annual Meeting 2006 in Davos, business and public leaders presented a joint action plan to UN Secretary-General Kofi Annan, who pledged United Nations support for the initiative.

Background Information:

The Forum’s report outlining priorities for business action to reduce hunger may be downloaded at: http://www.weforum.org/pdf/Initiatives/Harnessing_private_sector.pdf

Photos of our events can be downloaded free of charge for journalists at http://www.swiss-image.ch/worldeconomicforum (login required).