Samoa Agritourism Policy Setting Worskhop 2016 Linking Agriculture and Tourism through Policy setting: Strengthening the local agrifood sector and promoting agritourism Workshop organised by the Government of Samoa and CTA in collaboration with PIPSO Apia, Samoa, 13-16 December 2016

1. SABS Samoa AgriBusiness Support Project
SAMOA AGRITOURISM POLICY SETTING FORUM
Panel 1
“Panel Forum: Regional perspective on
opportunities/experiences to support Agritourism
development and investment”
Samoa Conference Centre, Apia Samoa 13th December 2016
Presented by: Ian M. Buck B.Ag.Sc.,Grad.Dip.Ag.Econ.,Dip.FS(FP).,FAICD.,FAIM.
Facility Manager
Samoa AgriBusiness Support Project
Supported by the Asian Development Bank and The Government of Samoa
Promoting Agribusiness & Economic Development
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2. The Samoa Agribusiness Support Project
SABS
What is SABS?
• SABS is a pilot project – first of its specific type to be undertaken –
Samoa first country to trial the concept;
• Established from an initiative of the Asian Development Bank
and the Government of Samoa to stimulate agriculture’s role
in economic growth and poverty reduction in Samoa.
• Rational - to revitalise agriculture & agribusiness to
increase the sectors contribution to the economy & GDP
through import replacement and export, which aligns
with the Governments policy framework and the
Strategy for the Development of Samoa.
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3. Key Features
• SABS is a 7 year Private Sector Development project designed to stimulate
development of the agribusiness sector in Samoa - Has a commercial focus;
• Provides a combination of financial, technical and managerial support to
agribusiness enterprises;
• Aims to reverse the decline of the agriculture and agribusiness industries,
increase exports, contribute to import substitution and create employment
opportunities in rural areas through the provision of;
1. Financial Support to participating agribusinesses, via loans from the
participating Commercial Banks in Samoa ;
 Access to cost effective interest rates and loan terms has been a major
barrier to agribusinesses;
2. Business Support Services to participating agribusiness entities through
FM & PMU;
 Capacity building to improve weak links in the business operation or
improved access to markets etc
• Incorporates a Gender Action Plan – to encourage increased participation of
women in business;
• Incorporates M & E to measure outputs against objectives;
SABS
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4. • The key players:
Samoa Agribusiness Support Project
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SABS Project
Management
FM & PMU
Commercial
Agribusiness
Commercial
Banks

5. • ADB provided a Grant to the Government of Samoa - MOF is the
EA;
• Government of Samoa on-lent the Grant to Participating
Financial Intermediaries (PFI or Banks) via Subsidiary Financing
Agreement (SFA) between Government of Samoa and each PFI;
• Each PFI holds funds in a designated project account which are
then proportionally allocated to Subloan A & Subloan B
components;
Subloan A = Guaranteed Cash Collateral = Security – ALL
approved partners;
Subloan B = Repayable Supplemental Seed Capital Loan = Top
up Equity – SOME;
SABS Funding Arrangement

6. Financial Support Services;
• All prospective agribusiness project partners must meet SABS
Eligibility Criteria – (Financial & Environmental) to qualify for
support;
• FM works with partner agribusiness to develop business plan
and prepares finance application for submission to bank;
• Bank provides the commercial loan - Projects must meet
appropriate credit and other risk-related criteria as determined
and applied by each commercial bank;
• Must use the finance for a “qualified project” in accordance with
the conditions detailed in the loan agreement with each bank;
• Very Important: All initial discussions with partners held as
“Strictly Private & Confidential” & as “Commercial in
Confidence”; Trust & Confidence.
The SABS Support Services

7. Business Support Services;
• Is about capacity building - Identify the weak links in the business
operation – Business Plan;
• Tailor the support to the business – Is not a “one size fits all”;
• Engage the appropriate specialists - Precise Terms of Reference for
specific support required – Indefinite Delivery Contracts;
• Be prepared for the unexpected – “the known unknowns”
• When working in the commercial/private sector you need quick
response times – “Time is money”!
• SABS role is to facilitate improvement in agri-business performance
and meet target market product standards.
The SABS Support Services
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8. • Examples of business support services;
– Strategic – Tailored Business Planning & Financial management;
– Marketing – Market access; labelling; may include joint venture arrangements;
– Agro-processing - Food technology; Industrial Chemist; Food Production
Engineering services;
– Quality Control – Hygiene; Food Safety; Certification (Organic,HACCPS,ISO etc);
– Technology – Agriculture, Agribusiness, Business partnerships;
• Expenses shared by SABS project and agribusiness project partner on
an 80:20 parallel cost sharing basis – Business Support Services
Agreement.
• Agribusinesses also supported by a small Agribusiness Innovation
Fund on a 75:25 parallel cost sharing basis;
– Small short term expenditures relating to agribusiness expansion or operation
BSS (continued)
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9. » Project Design - 2012-14;
» Project Inception - September/October 2014;
» 2yr Project Implementation - end October 2014 – Process, Procedures &
Presentations - build a prospect pipeline;
» Official Launch May 2015;
» May - November 2015 focus on Financial Support Services.
• 9 business plans and finance applications completed & submitted end
yr 1.
• All approved; 7 drawn down, 2 on hold;
• Finance Terms 7 yrs & Interest rate 8.5 – 9%. At the time common agri
loan rates (13.5 – 14.5% with 12 mth terms)
» 2016 - focus on provision of Business Support Services, including to date;
• Accounting and business management services;
• Organic certification; Industrial chemist; Food safety training &
butchery training; Food production engineer; packaging design
support.
Progress to date
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10. Thank You (Fa’afetai)
SABS Contact Details:
Facility Manager
Level 3 I Ministry of Finance
Central Bank Building I Apia I Samoa
E: ianb @sabs.ws
T: 685 34353 or M: 685 7749478
SABS Samoa AgriBusiness Support Project
Promoting Agribusiness & Economic Development
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