The USAID West Africa Trade Hub
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Transcript of The USAID West Africa Trade Hub
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USAID West Africa Trade Hub
Roger Brou Business & Finance Director
March 2013
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West Africa Trade Hub In 21 countries, with UEMOA, ECOWAS, & CEMAC
•+/-300 million inhabitants •GDP est. $500 billion USD
Offices in Accra, Dakar, & Arlington; Virtual team in Ouaga, Abuja, & 18 ARCs
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Value Chain Approach Informs Trade Policy & Infrastructure Improvements
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People, Planet and Profit: The triple bottom line – a market driven approach to development
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The Problem In West Africa, 75% of the population live on
less than US$2 per day.
The Question IS: How to create jobs and lift incomes in a
sustainable fashion?
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• Traditional crop • Millions rural
women • Weeks of work • April to September • Kernel quality
defined • Price takers • Commence selling
@ < $150 per ton kernel
• 1,000s of nut traders
• Consolidate & finance
• Commence selling @ > $250 per ton kernel
• Quality deteriorates • Limited value added
• < 10 major buyers • Export, process &
formulate • Erratic price @ $250 -
$800 per ton kernel • Quality variation high • Zero traceability
Production to Market
DISCONNECTED… Limited
transparency!
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The Global Shea Alliance annual conference connects an industry, leveraging resources to drive business opportunities
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Shea 2013 GSA conference offers training and opportunity on: •Access to Finance •Transportation •Cosmetic formulation •Packaging Business to Business Conference and presentations Exhibition Field trips
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Partnering with international financial institutions, regional banks and investors to improve lending and investing opportunities for exporters. Product & Process Development: Innovative approaches to trade finance for commercial banks. Promoting Best Practices and Training: Bringing banks and companies together to develop relationships that are mutually beneficial. Hosting annual Financing Trade Regional Conference. Technical Assistance: Helping bankers develop products/processes. Facilitating exporters to apply for loans, develop financial projections and business plans.
Exporters’ #1 Hurdle: Access to Competitive Financing
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Increased Jobs and Wealth Creation
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Based on Value Chain approach the Trade Hub:
Facilitates dialogue with regulatory authorities Leverages partnerships:
Commercial Banks Multi- and Bi-lateral Institutions Investors Buyers
Provides industry-specific financial training Assists with company-specific technical needs
Financial Services Approach
ERC
Trade Hub
Commercial Banks
Investors
LCs, Purchase Orders
New products & services
Government & Multi-lateral Institutions
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Performance-based Financial Service Providers Business Plans Investment
Promotion Financial Structuring Negotiations Management
Coaching Product costing and
Pricing
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MSMEs Type of Financial Needs
Short-Term (1 year max) – Procurement financing – Working Capital Financing – Trade Financing/ Term loan
Medium to Long-Term (more than 1 year) – CAPEX financing for expansion, acquisition of
new equipment (leasing or direct purchase) or new factory construction
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Long Term Financing EBID-USAID-ACA MoU BOAD-USAID-ACA MoU Private Equity Funds for medium/ long-term Strategic partnership (JV, M&A, etc)
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MSMEs Sources of Financing 1. Equity Financing 2. Debt Financing 3. Trade Financing 4. Government/ NGOs grants
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Equity Finance Sources Triodos Octave Company Nova Capital Phoenix Capital
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Debt and Trade Finance Sources MFIs Commercial banks Social Impact Investment Funds
– Root Capital www.rootcapital.org – Grassroot Business Funds www.gbfund.org – Acumen Funds www.acumenfund.org – ResponsAbility Funds www.responsAbility.com
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Find out more
www.watradehub.com
www.globalshea.com
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