MALAWI SMEs DEVELOPMENT CONFERENCEPresenter:WILLYS SIMFUKWEBusiness Incubation Program ManagerFEMCOM SECRETARIAT4/25/2013COMESA FEMCOMEnterprise Capacity Building,Entrepreneurship Skills, Productivity andIndustrial Competitiveness Development
Outline4/25/2013COMESA FEMCOMWho We AreOur MandateWhy Focus on Malawian Women Entrepreneurs?Challenges Facing Women EntrepreneursFEMCOM’s RresponseSome LessonsRecommendations
Who We Are4/25/2013COMESA FEMCOM The Federation of National Associations of Women in Business in Eastern andSouthern Africa (FEMCOM) is a COMESA institution based in Lilongwe FEMCOM Secretariat was established in Lilongwe in 2009 following theagreement and decision of COMESA Heads of State and Government 2007Summit held in Nairobi Kenya FEMCOM mandate is embedded in the COMESA Treaty Artcle 155:Creating an enabling environment for effective participation of women inCommon Market trade and development activities;Promoting special programmes for women in small and medium-sizeenterprises;Eliminating such laws and regulations that hinder women’s access to creditInitiating changes in education and training to enable women and youth toimprove their technical and industrial employment levels (transferable skills)
Who we are?4/25/2013COMESA FEMCOMFEMCOM is hosted by the Malawian government underthe Ministry of Trade and IndustryThe focal point organisation is the National Associationof Business Women (NABW)FEMCOM also works with private sector, SMEassociations, chambers of commerce and otherorganisations that collaborate with COMESA
FEMCOM focus on SME4/25/2013COMESA FEMCOM1. Enable better use of existing local capacity of SMEsentrepreneurs (particularly in women and youth) to accelerateeconomic growth in COMESA region including Malawi2. Women are engaged mostly in labour intensive activities thatare central to job creation/ can contribute to equitabledistribution of income3. Enable women and youth entrepreneurs and enterprises toqualify for/ make better use of foreign investment inCOMESA region4. Many women and youth enterprises in collapse at start-upstage; and those that survive the start-up stage fail togrow5. Enable women and youth’s participation in intra-regionaltrade in the COMESA region
COMESA FEMCOM’ Strategic Response4/25/2013COMESA FEMCOM COMESA theme “Enhancing Intra-COMESA Trade Through MSMEsDevelopment,” COMESA Medium Term Strategic Plan (2011 – 16): strategic objective two -focuses on Building Productive Capacity for Global Competiveness FEMCOM Medium Term Strategic Plan (2009 – 14): strategic priority three –focus on building the capacity of women and youth entrepreneurs to becomecompetitive regionally and internationally. These are in line with the Malawi Growth and Development Strategy (MGDSII, 2011- 16) In line with country plan to accelerate the attainment of MDG targets for2015.
COMESA FEMCOM’s Programme Approach4/25/2013COMESA FEMCOM SME Cluster Development Programme (funded by EU) focusing on Garmentand textiles; agro-processing; and Leather and footwear clusters Host ministry - The Ministry of Trade and Industry Collaborative Partners: National Association of Women in Business (NAWB),Malawi SME association, Malawi Chamber of Commerce and Industry, andWorld VisionKey Activities:Profiling of SMEsBusiness skills trainingTechnical training and procurement of machinery/equipmentFacilitation of access to finance through COMESA institutions(PTA bank)
COMESA FEMCOM Programmatic ApproachBusiness Incubation for African Women Entrepreneurs(BIAWE) Project funded by NEPAD SpanishEight pilot countries (Burundi, Djibouti, Kenya, Malawi,Sudan, Swaziland, Zambia and Zimbabwe)Key activitiesBaseline survey and feasibility study to establish regionalbusiness incubatorFocus on three sectors (agro-processing, handcrafts and ICT)Facilitate establishment of Credit Guarantee Fund for womenentrepreneursPolicy review to ensure favourable environment for businessincubations4/25/2013COMESA FEMCOM
Some lessons to date4/25/2013COMESA FEMCOMSkills training and access to appropriate technology and/orequipment is critical for SME developmentCluster approach improves cooperation among cluster members- working together to service orders, participate in exhibitions,share equipment and expertiseCluster approach leads to improved trust and linkage amongmembers (joint purchase of inputs and job sharing) and enhancedproductivity
Other programmesImplementation of the Regional Food Balance Sheetprogramme (funded by USAID) – FEMCOM is workingwith ACTESA in implementing the Informal Cross borderMonitoring System (ICBMS) of cereal movements at 17border points in Malawi.4/25/2013COMESA FEMCOM
Cassava clusterUganda Kenya Rwanda Burundi MadagascarCapacity building(business and technicaltraining in cassavaprocessing)55 KimonoDistrict50 Busia, Teso,Nzaui50 Rhuhango 52 Kayagoro 80 AmbalaveoCountry partners FTN MakerereUniversity,Uganda SmallScaleEntrepreneurAssociationMinistry ofTrade,AgricultureFarm ConcernInternationalMinistry ofindustrialisation,AgricultureFarm ConcernInternationalMinistry of Trade,RwandaDevelopmentAgency.Farm ConcernInternational,CAPAAD,Direction Regionale duDeveloppement Ruralde Haute Matsiatra(DRDR-HM)FOFIFA CentreResearchMinistry of AgricultureEquipment andmachineryGranters,chippers, dryers;Graters, chippers,dryersGranters, chippersand dryersEquipment deliveryawaiting technicaltrainingEquipment deliveryawaiting technicaltrainingNote: the equipment is to assist cluster groups to produce quality cassava flour, cassava starch forindustrial use and animal feed.
Textile and clothing clusterEthiopia Zambia Malawi Kenya UgandaCapacity building(business andtechnical training)50 100 65 50 50Partners Textile industrydevelopment, MAAGarment, Ethiopiatextile and garmentmanufacturerassociationMinistry of trade,AgricultureEvelyn HoneCollege, LusakaTechnical School,Ministry of trade,TEVETAWorld Vision,Malawi Chamber ofCommerce andIndustry,World Vision,Kabete TechnicalCollegeMinistry ofIndustrialisationTextile DevelopmentAgency,Ministry ofCommerceEquipment andmachineryNot yet Not yet Not yet Not yet Semi automaticsewing machines,embroidery andknitters,
Recommendations4/25/2013COMESA FEMCOM Review SME policies to ensure the acceleration of Cluster Development andBusiness Incubation Initiatives (provide quotas in government procurement forSMEs) Need to support tertiary institutions to engage in Business Incubation activitiesand provide incubation space for SMEs (lessons from ASIA and BRICS) Make use of Peer Review mechanism to enable governments to learn and sharebest practices in SME strategies and implementation practices e.g. Mauritius,Kenya, etc) Review of school/Educational curricula to ensure incorporation ofentrepreneurial learning at early stages of learning Mass community sensitisation to alleviate impact of negative cultural beliefs