Flash of Inspiration no. 5: Cost-Benefit Analysis

Reply on DGroups | 3 comments

06 Sep 2019, 3:30 p.m.

Siham Boukhali

Dear all,

Thank you for this flash of inspiration!

Last year, along with an external colleague, I conducted a CBA for a SDC project. The objective was to examine the cost effectiveness of four specific components of the project, namely the rice value chain, the green gram value chain, the fishery value chain as well as the WASH sector. We did the CBA separately for each component starting at the lowest level of users (farmers, fishermen) and comparing the situation with and without the project. Then, the data was aggregated according to the project plans (number of farmers / fishermen involved over time) and the project administrated funds were included at this level of analysis. As a final step, the project management costs were added to assess the overall performance of the project towards the funds invested by the project and by the local stakeholders.

I first thought that the concept was quite easy but the ground reality showed otherwise…it turned out to be more difficult than planned, especially regarding data collection and its accuracy.

However this whole exercise highlighted the importance of monitoring and reporting during ongoing phases of a project in order to develop a powerful and meaningful CBA.

If you want to know more about my experience on that CBA, I would be happy to share more directly with interested community members!

Best regards,

Siham Boukhali
Advisor Financial Inclusion and Business Management

HELVETAS Swiss Intercooperation
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Phone: + 41 (0)3 385 10 10 (general); +41 (0)31 385 10 61 (direct)
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06 Sep 2019, 3:40 a.m.

Ninh Nguyen

Very useful, thank you. Ninh.

05 Sep 2019, 11:53 a.m.

Guido Beltrani

***sorry for cross-posting***

Welcome to the fifth ‘Flash of Inspiration’ from the e+i & CEP F2F 2019 on the topic of Cost-Benefit Analysis (CBA).

Did you know that CBA is both mandatory and useful for any SDC-funded project? If CBA is a mystery to you, watch this short video <https: www.youtube.com="" watch?time_continue="8&v=7tdKkeNClPE"> (4 min) and look at the introductory session on CBA <https: www.shareweb.ch="" site="" ei="" pages="" content="" sessionprofile.aspx?sessionid="287"> at the e+i & CEP F2F event.

CBA is closely related to your Monitoring & Evaluation efforts. Most Market Systems Development projects are guided by the DCED Standard for Results Measurement. What does CBA have in common with the DCED Standard? What are the differences? How do programs benefit from both tools? This concise slide deck <https: www.shareweb.ch="" site="" ei="" documents="" howto="" result%20measurement="" sdc%202019%20summary%20dced%20and%20cba.pdf=""> holds the answers to these questions.

You are working in VSD? Lucky you, an easy-to-use CBA tool for VSD is currently being developed. If you want to become engaged in this process or start working with a beta-version, don’t hesitate to contact Andrea Inglin (andrea.inglin@eda.admin.ch <mailto:[Hidden email]>).

Surely, many of you have experience with CBA and have learned their lessons with the tool. Please let the community know:

è Is CBA easy? Is CBA difficult? Is CBA useful?

è What are your best practices to avoid the situation as illustrated in the picture below?
[cid:image002.jpg@01D563F1.53D4F0B0]

If you have any technical issues or individual questions/comments, please contact Annick Vollmar (annick.vollmar@helvetas.org <mailto:[Hidden email]>).
Please note that access to the event documents is limited to registered e+i Shareweb Users. Please click here to register <https: www.shareweb.ch="" site="" ei="" pages="" content="" pages.aspx?smartid="2226&item1=network-registration">.

Best regards,
Guido Beltrani

Dr Guido Beltrani
Head of sectorial policy
Employment & Income │Engagement with the Private Sector│

Federal Department of Foreign Affairs FDFA │ Swiss Agency for Development and Cooperation SDC │ Division Latin America and the Caribbean │
Freiburgstrasse 130, 3003 Bern, Switzerland
Tel.: +41 58 480 19 81