While measuring direct job creation in firms we have supported is straightforward, estimating the number of indirect jobs created within these companies’ supply chains is more challenging. To do this cost-effectively, Manufacturing Africa utilises a manufacturing-focused version of the Joint Impact Model, a tool developed by Steward Redqueen and used by leading Development Finance Institutions to measure their portfolio impacts. Using data on firm revenue and local procurement spending, the tool then applies input-output modelling for specific countries and sectors to estimate supply chain output and consequently indirect jobs. We will then check this modelling with actual data once firms the programme have raised finance and established operations.
In addition to employment, the program also seeks to support economic transformation in the countries where it works. To do this, individual deals are evaluated on the extent to which they produce products that either improve the level of sophistication or the diversification of the manufacturing sector in the country, or both. To assess deals on this basis, the programme uses an economic complexity data tool which is available here: https://complexity-compass.stewardredqueen.com/
We aim to ensure that the impact we claim for the programme is credible and proportionate to the support provided, and therefore we assign an attribution percentage to each deal based on the intensity of support provided and presence of other advisors in the business planning and capital raising process.