A N e w s l e t t e r F o r F r i e n d s O f Te c h n o S e r v e • S u m m e r / F a l l 2 0 0 6
committed to strengthen-
Artemisia Program Saves Lives
ing its existing programs
while also expanding to
help more people in more
and Reduces Poverty
places. Recently, I visited U2 singer Bono led a delegation
some of our clients in of business executives and health profes-
Central America, including winners sionals to Africa in May to see programs
of our business plan competition in that are successfully addressing the
Guatemala (one of our newest pro- continent’s most challenging issues.
grams) and smallholder farmers in Their itinerary included a visit to
Nicaragua (one of our more estab- TechnoServe’s Artemisia program in
lished programs). It was heartening northern Tanzania, to see how it is
to see people feeling empowered to empowering Africans to fight the African
improve their lives by launching or
problems of malaria and poverty.
Since early 2005 TechnoServe has
Last year, we improved the lives
been assisting an East African company
of more than 760,000 individuals living
by introducing a new cash crop alterna-
in rural poverty. This year we hope to
serve even more. We have been pursu- tive – the herb Artemisia – to farmers in U2’s Bono visits TechnoServe-assisted
ing new ventures, including the launch the region. This is raising rural incomes Artemisia farmers in northern Tanzania.
of a coffee project in Colombia; new while also benefiting sick people by
partnerships in Brazil and Ecuador; the increasing the supply of the malaria
treatment most recommended by the based Combination Therapies (ACTs),
establishment of a new office in India; based on an extract of Artemisia – has
an agreement to provide business and World Health Organization.
Ninety percent of all malaria-related been primarily sourced from Vietnam
market services to the Millennium and China. TechnoServe determined
Villages development project in Africa, deaths occur in Sub-Saharan Africa,
where the disease kills about a million that rising demand for this treatment
and research on using bio-energy and presented an opportunity for Africans
new digital technologies to develop people annually (the majority of them
children), despite the fact that the disease to fight malaria while simultaneously
sustainable energy solutions. You’ll creating new economic opportunities
be reading more about some of these is both preventable and treatable. The
most effective treatment – Artemisinin- for the continent’s poor.
exciting projects in future issues.
TechnoServe – with funding from
We are also pleased to announce
WHO, USAID, the BetterWorld Together
our “Double Our Strength” campaign.
Foundation and private supporters – has
We’re hoping all our supporters will help
partnered with Advanced Bio-Extracts
make this a great success. Read more
Ltd (ABE) to assist in dramatically
about this initiative on the back page.
All of these initiatives are very increasing its supply of Artemisia. It
exciting, not just for TechnoServe, but has linked the company to East African
for the thousands of people who will farmers keen to diversify by adding a
have the opportunity to improve their profitable cash crop to complement
lives. We thank you for your continued traditional food crops such as maize.
support and your commitment to The broad-based initiative
change the world. involves identifying optimal growing
Bruce McNamer areas, sourcing seeds, organizing
President and CEO A Tanzanian farming family with their nurseries to supply seedlings, training
(continued on page 2)
The Roots of Success
in Nicaragua Building
they were able to produce they sold to
intermediaries who paid $5 for every
100 lbs, taking advantage of the farm-
ers’ lack of access to information about
the potential value of their crops. Since 2002, TechnoServe has
All that has changed. At the end been working to bring new opportu-
of 2004, TechnoServe launched a nities to the developing world with
program designed to help farmers in its business plan competitions
regions producing low-quality coffee to (BPCs), which help fledgling entre-
diversify into more profitable crops and preneurs turn good ideas into
to help farmers realize higher profits workable businesses. These compe-
Pablo Montenegro, president of the Jorge Salazar from their new products. Instead of titions identify and encourage
Cooperative (left), with his father Renaldo. slicing up a single quequisque root and promising entrepreneurs, give them
sowing the pieces, Montenegro learned business skills and seed money, and
A year and a half ago, the inhabi- to extract small buds from the root offer a forum for investors to find
tants of the rural highland community using a spoon-like tool. This resulted deserving projects. Since its debut,
of Tuma-La Dalia, Nicaragua were in consistent crop quality, and farmers the BPC program has helped launch
struggling to eke out a living. Many could cultivate more plants from a or expand 165 businesses that have
farmers in the region are former com- single root. generated $8.2 million in additional
batants who traded in guns for plows Today, Montenegro and the mem- revenues and created more than
and started new lives as small-scale bers of the Jorge Salazar cooperative 1,000 new jobs.
coffee farmers. When coffee prices have doubled their yields and sell The beneficiaries include Arturo
plummeted, many of them sought new their produce for an average price of Enrique Paiz Guirola and Mario Yon,
crops such as the root crop quequisque. $20 for every 100 lbs. Last year, the winners of Guatemala’s first BPC this
Despite their hard work, farmers cooperative exported two large ship- year. The BPC allowed them to real-
such as Pablo Montenegro, president of ping containers of quequisque. Already ize their dream of creating the first
the Jorge Salazar Cooperative, lacked in 2006, they have shipped more than Central American sawmill operation
the technical know-how to take advan- 40 containers. Their increased produc- to produce specialized pallets (previ-
tage of these crops. They experienced tivity has also generated 80 new jobs ously only imported from Europe) for
inconsistent crop quality, and the little in processing and packing. the regional construction market.
Their success was recently
featured in an Inter-American
Artemisia Program (continued from page 1) Development Bank (IDB) video that
agricultural workers, forming village One such beneficiary is Mika Abel. was part of Building Opportunities
training clubs, setting up administrative He and his family planted Artemisia for the Majority, an IDB initiative
structures to service growers, and forging on about three acres of land. This has focused on improving conditions
solid farmer-buyer relationships. yielded nearly 4,700 pounds of dried for people in Latin America and
As a result, the area of land being Artemisia leaf, worth more than $1,550; the Caribbean who are living and
cultivated for Artemisia in northern this is more than three times what they working at the bottom of the region’s
Tanzania is increasing rapidly, from could have earned by growing maize economic pyramid.
zero to more than 600 acres in just the and beans. Mika has also earned money TechnoServe/Guatemala’s first
first year of TechnoServe’s involvement. working as a nursery man for the local business plan competition, entitled
In 2005, 132 metric tons of Artemisia area. He has used his higher profits to ¡Idea Tu Empresa!, drew 380 applica-
leaves were harvested in this area, pay school fees for his daughters and to tions and attracted major government
enough to produce the active ingredient invest in his family’s future. support. President Oscar Berger
for 1.1 million ACT treatments. In East Bono declared that he was spoke at the award ceremony. The
Africa overall, 500 metric tons of impressed with how TechnoServe’s competition concluded with 12 win-
Artemisia leaves were harvested, program brings 21st-century ideas, ners receiving $10,000 in seed capital
enough to produce the active ingredient business skills and technology to to start or expand their businesses.
for 4.5 million ACT treatments. traditional communities, which opens “¡Idea Tu Empresa! helped us to
More than 1,100 smallholder the door to new opportunities for develop a business plan and to put our
farmers in northern Tanzania will earn these farmers. He also complimented idea on paper, an idea that was bank-
at least $320,000 in increased income TechnoServe’s team on their commit- able that we could go sell,” said Yon.
this year by growing Artemisia. ment to fighting poverty.
Tanzanian Coffee Program Takes Success
to New Heights
A TechnoServe program to help fresh water.” TechnoServe is partnering Starbucks recently certified that a
Tanzanian smallholders produce and with the World Bank to help farmers group of KILICAFE farmers meets its
sell more profitable “specialty coffee” reduce financial risk by adopting price C.A.F.E. (Coffee and Farmer Equity)
has increased farmers’ incomes by an risk-management tools and developing Practices, which reflects high stan-
average of 70 percent. Several new a weather insurance scheme. dards of social and environmental sus-
alliances are building on that success KILICAFE has also received tainability. More farmers will be certi-
and expanding the program’s reach. approval for a $1 million credit facility fied over the next two months.
from Exim Bank, a local commercial All of these developments will keep
“My income has bank; this will enable KILICAFE to pay KILICAFE on a successful course. Its
farmers as they deliver their coffee while member groups are expected to clear $4
quadrupled since processing and exporting the coffee to million in sales from this year’s harvest.
joining KILICAFE.” overseas buyers. Capital investment loan
agreements have also been signed with
TechnoServe – with funding from EcoLogic Finance (for $225,000) and
USAID, the Swiss State Secretariat for local coffee exporter Taylor Winch
Economic Affairs (seco), the Swiss (for $50,000). These cash infusions will
Agency for Development and Coop- fund 27 new central pulperies and 10
eration and private donors – has created upgrades, more than doubling the num-
a unique “farmer business group” model ber of central pulperies (for a total of
that helps small-scale growers improve 56). As well as producing higher-quality
quality, obtain financing, establish coffee beans, these processing facilities
contracts with overseas buyers, and will use the latest environmentally
ultimately increase profits. TechnoServe friendly technology, which reduces
also helped establish KILICAFE, a water usage.
farmer-owned association that now To promote good farm-
supports 102 groups representing more ing and business practices to
than 10,000 smallholder coffee growers. the broader farming communi-
This successful track record A KILICAFE member
ty, TechnoServe has partnered
processes coffee with
prompted World Bank President with an NGO called Mediae a new central pulpery
Paul Wolfowitz to meet with program to feature story lines about in southern Tanzania.
staffers and beneficiaries recently. “My coffee farming in a popular
income has quadrupled since joining radio soap opera called World Bank President
KILICAFE,” Emmeline Swai, chairper- “Pilika Pilika.” KILICAFE Paul Wolfowitz enjoys
a cup of coffee made
son of KILICAFE’s north chapter, told leaders will also be frequent with beans grown by
him, “which has allowed me to renovate guests on a newsmagazine KILICAFE members.
my house and connect to electricity and program.
New Web Site Promotes Tourism Clients
in Northern Mozambique
TechnoServe has launched a web services, we are helping clients – such
site (www.northern-mozambique.com) as Manda Wilderness (Nkwichi), Ibo
that aims to promote and facilitate Island Lodge, Guludo Beach Lodge,
tourism to northern Mozambique. This Divers Eco Operation dive resort, and
off-the-beaten-path region boasts a tour operator named Kaskazini – to
scenic beaches, wildlife and historic develop solid business plans, secure
sites, but it is also plagued by rural financing and run their businesses
poverty. To capitalize on the potential more competitively. We are also
for international ecotourism to provide working to attract new investors to the
jobs and local markets for products and historic Ilha de Moçambique region.
Our Paul and
Strength! Diane Garrett
TechnoServe already aims to be TechnoServe’s country director in
triple the impact of every dollar Tanzania, Thom Dixon. We liked what
we invest by generating three dol- we heard, so we spent a couple of
lars in economic benefits for poor days looking into the organization and
people in the developing world. visiting with the staff in the Dar office.
Now, through our new We later met several other TechnoServe
“Double Our Strength” cam- Paul and Diane Garrett of the BetterWorld country directors, who further confirmed
Together Foundation in Temecula, CA. that TechnoServe and our foundation
paign, we’re working to
have similar interests and goals, i.e.
leverage that impact even more.
finding ways to help poor people in a
TechnoServe is asking each of
our supporters to identify five
friends who might be willing to
Q: What prompted you to
donate money to international
regenerative and sustainable way. We
have been impressed with the talent
within the organization and by the
support our mission of helping
reputation it’s earned over the years.
the world’s poorest people to
help themselves by building suc-
cessful businesses. TechnoServe
A: There are such extreme needs
in Africa, and a tremendous
amount of under-employment. We
will contact each of them – the
beginning of what we hope will
be a chain reaction of hope and
began looking for ways to use capital
to create work, profit and sustainability.
Q: How are you deciding which
projects to support?
possibility that will spread across
the world. A: We’re still exploring the
options. We began by donat-
Please enlist in this effort by
DoubleOurStrength or writing to
Q: How did you become inter-
ested in TechnoServe?
ing to a project that is helping farmers
grow the anti-malarial herb Artemisia
in Tanzania. And we’re now also sup-
us at 49 Day Street, Norwalk, CT
06854 with the names and A: We were going to Tanzania
to visit a project that our
BetterWorld Together Foundation was
porting a project that will help more
than 5,000 legume farmers in western
Kenya to start a company to earn more
addresses of five potential
supporting in the northern part of the money by selling in bulk and getting
country. We decided to fly out early to access to bank accounts and supplies.
Together, we can multiply our
fit in a visit to Dar es Salaam. We were We’re about to go to East Africa to
impact around the world.
talking with the passenger sitting next visit those projects and see first-hand
to us on the plane, who turned out to the impact they are having.
WAYS YOU CAN SUPPORT TECHNOSERVE
Direct Contributions Bequest Contributions Charitable Gift Annuities
Gifts of cash, real estate or personal property will By including a gift to TechnoServe in your A charitable gift annuity contract with TechnoServe
support our work in Latin America and Africa. will, you can provide a meaningful contri- provides a guaranteed lifetime income for you and a
Appreciated Stock Contributions bution to either current operations or tax deduction based on the estimated principal that
TechnoServe’s endowment. will be left to TechnoServe.
Gifts of stock or other investments which have
recently grown in value can be more advantageous Pooled Income Fund Contributions Charitable Remainder Trusts
than cash as they can leverage your tax benefits. A charitable remainder trust naming TechnoServe as a
Contributing to TechnoServe’s Pooled
Memorial and Honorary Gifts Income Fund results in income for you beneficiary can provide income for you and a tax deduc-
Contributions can be made in memory or honor of proportionate to your contribution and a tion based on the amount that will be left to charity.
a relative, friend or colleague. Your gift will be tax deduction based on the estimated For more information please write or call Darlene
acknowledged to the honored person or family. principal that will be left to TechnoServe. Brown at 1-800-99-WORKS.
Paul E. Tierney, Jr., Chairman For more information, contact us at 49 Day Street, Norwalk, CT 06854
Bruce McNamer, President and CEO (203) 852-0377 or (800) 999-6757
e-mail: email@example.com web: http://www.technoserve.org
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4 Since its inception in 1968, TechnoServe has helped to create or expand more than 1,500 businesses, benefitting
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