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Feed AFRICA N°1 - Rural Entrepreneurship

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Feed AFRICA, capitalization notes of the FIDAfrique/IFADAfrica network. – Dakar, October 2010.

Feed AFRICA, capitalization notes of the FIDAfrique/IFADAfrica network. – Dakar, October 2010.

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    Feed AFRICA N°1 - Rural Entrepreneurship Feed AFRICA N°1 - Rural Entrepreneurship Document Transcript

    • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETwOrk N°01 - October 2011©IFAD/Nana Kofi Acquah Rural entrepreneurship
    • SOMMAIRE 1. Editorial 3 2. Introduction to FIDAfrique 4 3. Rural micro and small enterprises: When risk- 5 sharing guarantees sustainable access to credit 4. Business development service: How to improve the 9 performance of micro and small rural enterprises 7. Equipment grant support to graduate apprentices: An effective scheme for business start-up and em- 14 ployment of rural youths in Ghana 8. District exhibitions and trade shows: A market access tool for rural MSE 18 9. Managing Business Development Challenges in Rural Ghana: Through decentralized Business 20 Advisory Centres and Rural Technology Facilities. Appreciation of nk the co-ordinators 10. Boubacar Keita, traditional baker: An example of 25 We would like to tha for the REP 2 projects economic and social empowerment the PROMER 2 and in the contributions of their respective teams 29 y firs t issue of « Feed 11. Resources publication of this ver n also goes to all the AFRI CA ». Our appreciatio ent r Knowledge Managem Communication and/o the FIDAfrique rtners of experts who are pa network . D). d for Agricultural Development (IFA nt N°.1035 of the International FunThis pub lication was realized thanks to Gra ssarily reflect the opin ion of IFAD. bility of the authors and do not neceIts contents are the sole responsi ork. – Dakar, October 2010. s of the FIDAfrique/IFADAfrica netwFeed AFRICA, capitalization note Editorial The policy of the Feed AFRICACoordination: Board is to ensure that cont ents of this issueAbdou FALL , only the are as exact as possible. HoweverEditorial Board: authors are responsible for the content of Hadj ers to pho-Abdou FALL, Foly AKOUSSAN, El each article. We encourage readKASSE, Anthony YOUDEO WEI, Mohamed tocopy and freely dist ribute the articles, but should beKEBBEH the authors and sources thereof mentioned. CONTACTGraphic design & Printing:Imprimerie Graphi-Plus Copyright FRAO 2011 WARF, FIDAfrique-IFADAfrica Tél. (221) 33 869 10 16 General Coordination Dakar - Senegal N° 10075, Sacre Cœur III VDN, CP 13 Dakar Fann – Sénégal Cover photo: ices Tel. (221) 33 865 00 60 Young people attend the Apprent Training Program me at the Ghana National Fax (221) 33 860 66 89 ion, Sefwi Email: contact@fidafrique.net Tailors and Dressmakers Associat Bekwai Branch (©IFAD/Susan Beccio) Site web: www.fidafrique.net 2 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • EDITORIALDear members and partners of the FIDAfrique network,It is a great pleasure for us to share sale of products; the putting in placewith you the very first issue of ‘Feed of a conducive environment for theAFRICA’, a thematic newsletter of the establishment of a business councilIFADAfrica network. centre and equipment manufacturingThe present publication is an added workshops; sustainable access to loansupport to the dissemination of capita- facilities through an innovative risklization products of network members, distribution system.essentially IFAD financed projects in Still, as part of the drive to promoteWest and Central Africa. This first issue rural enterprises, this premier issue ofis devoted to promoting rural micro ‘Feed AFRICA’ describes the itineraryand small enterprises, a sector which of Boubacar Keïta, who, thanks to hisrepresents an important leverage for entrepreneurial spirit and support fromthe fight against poverty and which has PROMER 2 and its partners, especiallyenormous potentials for job creation the State technical departments, wasand for infusing economic dynamism able to modernize his traditionalin the rural areas. In effect, successful bakery business and in so doingrural micro and small enterprises can multiply his turnover eightfoldcontribute towards improving agricultu- within ten years only.ral productivity and to enhancing agri- We hope you will enjoy rea-cultural products through processing. ding this newsletter and weThrough a total of six articles, the ca- can’t wait to receive yourpitalization notes focuses on the expe- comments and contribu-rience of two projects geared towards tions.establishing, consolidating and ensu-ring the sustainability of rural microand small enterprises. The newsletterdescribes, analysis and draws lessonsfrom the various assistance and sup-port strategies given to rural micro andsmall enterprises through the Rural En-terprise Project (REP 2) in Ghana andthe Rural Entrepreneurship PromotionProject (PROMER 2) in Senegal. Thearticles were published thanks to IFA-DAfrica, which supported the concep-tion of the capitalization plans of theafore-mentioned. Fact findi ng mis-sions on identification of themes forpublication of articles, as well as theconvening of exchange and productionworkshops, enabled the projects criti-cally review their experiences and alsoshare, through the articles, the resultsand lessons learnt.The various experiences related tocapacity building and equipment Abdou Fall,subsidy served as a leverage to the Programme Officer at WARFdevelopment of rural micro and small FIDAfrique WCA Co-ordinatorenterprises; the organization of trade Email : contact@fidafrique.netfairs to facilitate market access and Dakar, Senegal.CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 3
    • Introducing FIDAfrique FIDAfrique is a network linking indi- concentrates on the whole of Sub- responsible for the general co-ordi- viduals, organizations and networks Saharan Africa. It has three technical nation of the Sub-Saharan network as and its objective is to promote learn- components: capacity building and well as the co-ordination of the West ing, sharing of experiences and inno- training; support for knowledge gath- and Central programme. The African vations in order to reduce rural pov- ering and sharing and communication Rural and Agricultural Credit Associa- erty in sub-Saharan Africa. and support for consultations on pub- tion (AFRACA), which is headquatered In its current format, FIDAfrique is a lic policies. in Nairobi, co-ordinates the Eastern programme funded by the Internation- It essentially aims at enhancing the and Southern Africa programme. al Fund for Agricultural Development efficacy of projects/programmes and The FIDAfrique-IFADAfrica Steering (IFAD) and its activities are co-ordi- policy consultations by identifying Committee, which is the main gover- nated by the West Africa Rural Foun- innovative learning and sharing pro- nance organ of the network, brings to- dation (WARF). The first two phases of cesses. In so doing, it incorporates the gether mainly farmer associations and the programme (1999-2007) centered vision of WARF and that of IFAD to platforms, but also government repre- exclusively on West and Central Af- strengthen themselves as knowledge- sentatives and international partners rica whilst the third phase, known as based organizations and to use that such IFAD, the International Develop- FIDAfrique-IFADAfrica, was launched knowledge for more efficiency in im- ment Research Center (IDRC) and the in April 2009 in Nairobi. This phase plementing development projects. Technical Center for Agricultural and covers a period of three years and The West Africa Rural Foundation is Rural Cooperation (CTA). ©FIDAfrique4 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • MICRO AND SMALL RURAL ENTERPRISESWhen risk-sharing guaranteessustainable access to creditAhmed Hady Seydi, ameth_hady@hotmail.comIbrahima Sory Diallo, sori02ibrahima@yahoo.frJoint guarantee, combined with risk-sharing, facilitates the sustainable access of ru- mark a real progress in the financing ofral entrepreneurs to the appropriate financial services and guarantees the security micro and small rural enterprises.of the loan portfolio that has been constituted. In the Senegalese experience of What does this risk-sharing strategy en-PROMER’s Rural Finance Support Service (SAFIR), close to 700 rural micro-entre- tail and how does it facilitate access topreneurs in Tambacounda and Thiénaba (region of Thiès) had access to financing credit? This article is meant to provideworth about 58 million francs CFA. The reimbursement rate estimated at over 98%, answers to these questions in the firstattests to the solidity of the portfolio. part. It then talks about the agreements that have been implemented with em-In the regions of Tambacounda and to financing, thanks to a concerted phasis on the experience of traditionalThiès, in Senegal, the micro and small financial risk-sharing. Within this fra- bakeries in the region of Tambacoun-rural enterprises (MSRE) are known mework, the MSRE formed joint ho- da.of Finally, the positive points andfor their inadequate assets (movables, mogenous groups to guarantee their limits noted during the implementationreal property, etc.). Though assisted credibility in their contacts with DFS. of agreements are reviewed and les-by PROMER, the Project for the Pro- The tripartite partnership – between sons drawn.motion of Rural Entrepreneurship, they groups of MSRE, DFS and PROMER –find it difficult to access investment resulting from it , constitutes the ba- A three-actor partnershipcredit and working capital provided sis of a risk-sharing guided by the res- Risk-sharing is a global strategy inby financial institutions, two levers that ponsibility which each party will take which the actor plays a decisive role.are essential for their development. in the perspective of securing a loan. The success of its implementation de-These institutions consider that the ab- Here, there are real innovations illus- pends on the definition of certain pre-sence or scarcity of material guarantees trated by the terms and conditions of conditions which constitute the basicconstitute high financial risks. the participation of each of the three principles (identification of actors,For this reason, the Rural Finance Sup- parties in the global risk, on the one constitution of the group for joint gua-port Service (SAFIR), a PROMER com- hand, and the individual responsibi- rantees).ponent, initiated strategies to resolve lity of MSRE in securing loans, on the Three key actors intervene in the im-this problem with the aim of promoting other. The notions of «joint guarantee» plemented agreements. These aresustainable relations, based on securi- and «risk-sharing», as stated in the si- PROMER, DFS in partnership with SA-ty, confidence and partnership, among gned agreements (DFS/PROMER and FIR, and the joint guarantee group.others. To facilitate the access of micro MSRE/DFS joint guarantee groups),and small enterprises to financing, SA-FIR relies on its partnership with fivedecentralized financial systems (DFS) PROMER 2/ DECENTRALIZEDwhich benefit from a WADB billion FINANCIAL SAFIRfranc CFA line of credit. As a result of PARTNERStheir proximity and flexibility, these Risks related Coverage of debts abandoned byDFS − UIMCEC, URMECS, CAURIE- Decrease in interest rates, in the Guarantee Fund SAFIR (50 to exemptions of the observation to loansMF, lCPS/ASACASE and MEC Dimba- period for needed 70% of debt registering more than a membership... year’s delay in reimbursement).lante –, are the best financial domicilesfor micro and small rural enterprises. Annual coverage of a part of late debt by the guarantee fund of the group (x% of the funds from 3 to 12 months late).The DFS/MSRE partnership, with PRO-MER’s involvement, is based on a com-mon vision in which each party advo- GUARANTEE GROUPcates a secured and sustainable accessCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 5
    • With its different components, its non- The joint guarantee group draws up a member, within the framework offinancial service providers and its tech- a MSRE membership charter, defines joint guarantee, is the moral responsi-nical and financial partners, PROMER the terms and conditions of joint gua- bility of the entire group that exertsprovides beneficiaries with capacity rantees and mobilises a guarantee fund social pressure on the beneficiary ofbuilding support. It set up a guarantee meant to cover part of the portfolio’s the loan. However, to be efficient,fund in charge of covering 50 to 75% bad debts (the level of coverage will joint guarantee entails the possibilityof bad debts (loans registering more be defined in the agreement which of fines in case of failure to reimbursethan a year’s delay in reimbursement) binds the group to the DFS). loans. It is the raison d’être of the gua-from the portfolio constituted through rantee fund set up by members. Asthe WADB line of credit. Security and guarantee a way of sharing the risks incurred byThe DFS, partners of PROMER – cur- the joint guarantee group, it is meant Joint guarantee has facilitated the di-rently UIMCEC and URMECS –, re- to cover part of the bad debts. sadvantaged populations’ access toceive financial support thanks to the financial services all over the world. While the guarantee funds are oftenline of credit. They are the financial In the experiences of Tambacounda considered as demobilising cash re-domiciles of the joint guarantee group and Thies, the joint guarantee group serves – examples of dilapidation ofwith which they sign a partnership is based on the principle of joint gua- these funds are commonplace −, itagreement. They process the finan- rantee which is a response to the non is admitted that for them to functioncing application, grant loans and en- existence of real estates to offer as properly, they are required to be insure follow-up. They also manage the guarantee, transaction costs for the line with an agreement which calls forfunds kept in their accounts. Moreo- provision of financing and the high consistent, transparent and collectivever, within the framework of risk-sha- risks of loans, three key factors that management. The funds thus kept in aring, the DFS grant derogations to joint explain the exclusion of the poor from term account will be mobilised accor-guarantee group on certain provisions the financing market. ding to the terms and conditions de-which block access to loans: the man- fined in the agreement which moreo- Indeed, the financial institutions havedatory waiting period, the interest rate, ver fixes the interest rate and types of always considered that the financingthe collateral process, etc. loans that will be backed by it. of the poor was incompatible withAs the third actor, the joint guarantee their viability requirement. Based ongroup is composed of micro and small the principle of solidarity and mutual Securitizing Instrumentrural enterprises that are PROMER assistance, joint guarantee brought fi- In South-Eastern Senegal, the risk-beneficiaries. They are clients of de- nancial institutions closer to their poor sharing strategy, initiated by the jointcentralised financial systems working clients. It was an alternative to the ab- guarantee group of members of thein partnership with the project. The sence of real estates to serve as a gua- professional organisation of traditionaljoint guarantee group whose condi- rantee to secure financing. In a way, it bakers of the region of Tambacounda,tions of creation are defined below, is a method adopted by micro-finance was a response to the crisis whichwill provide a guarantee to the debtor to establish confidence between them opposed it to a financial institution,MSRE. It is represented by an office and their poor clients. UIMCEC. Following the negative out-that is a signatory of the agreement come of a collective financing granted Joint guarantee is underpinned by awith the DFS. The office approves in August 2007, the relations between homogenous and organized group.the financing request issued by the the institution and the professional or- In this nucleus, the personal and reci-MSRE and supports the DFS to recover ganisation deteriorated seriously: The procal acquaintance of members is aoutstanding debts. 7 million CFA francs used to finance key element. The debts incurred by 42 micro and small rural enterprises, were reimbursed with over a year’s delay, after being transformed into waived debts. After the regularization of this situa- tion, SAFIR invited the different parties – professional organisation, financial institution and PROMER’s Southern branch – to come together and reflect on the causes of such a setback. De- lays in payment were due to the fact that the purpose of the loan was se- riously diverted and debtors were not properly monitored. There was thus ©PROMER 2 need to rapidly remedy this situation so as to provide micro and small rural enterprises with access to financing in order to carry out their activities suc- cessfully.6 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • The financial institution was no lon-ger prepared to renew the financingin the same conditions as before –thesaying has it that “once burned, twiceshy”. SAFIR, which sought to facilitatethe sustainable access of MSRE to fi-nancial services, then proposed a so-lution: risk-sharing among the institu-tion, the professional organisation andPROMER. The guarantee fund emana-ting from the WADB line of credit wasto serve as a loan securing instrument.This original approach marked a total ©PROMER 2break with what existed before then.The participation of the professionalorganisation in the risk incurred byfuture financing supposed the organi-sation of its members into joint gua- In the region of Tambacounda, the fi- request for financing, in the form of arantee group. The funding will thus nancing of traditional bakers has be- letter of credit. This is a very impor-be done within the framework of an come a reality. The President of the tant stage and represents an innova-agreement signed between the finan- professional organisation, Bouba- tion as the first level of control of thecial institution and the joint guarantee car Keïta, was pleased with the glo- relevance of the request. It is also thegroup. This agreement defines the spe- bally fruitful results of the first finan- first milestone of a participation in se-cific provisions for the provision and cing cycle of close to 8 000 000 CFA curing the loan and sharing risks. It ismanagement of the loan. francs. The group’s satisfaction was thus tantamount to the caution that theBeyond the conditions linked to the group provides to the member MSRE, particularly due to the possibility it hasnotion of joint guarantee on which it is in accordance with the terms and to directly negotiate its members’ ac-based, the formation of the joint gua- conditions of the joint guarantee. cess to financial services. Three otherrantee group of bakers of the Tamba agreements are being finalized (two After the approval of the loan appli-region complied with specific provi- in Thiénaba and one in Tambacoun- cation by the Loan Committee of thesions. The group opened a collective da). This triggered enthusiasm among DFS, the micro enterprise receives theaccount at UIMCEC and urged mem- MSRE benefitting from PROMER, as information and goes to the counterber MSRE to do so as well. A guarantee well as the adherence of financial ins- of the financial institution, signs anfund to which each MSRE contributed, titutions to this approach. individual loan contract and pays thewas kept there. The guarantee fund Thanks to this approach, access to application fee. The loan amount willwill be mobilised in compliance with financing was facilitated for close to be paid into his account to ensure thethe provisions defined in the agree- 693 people. They received a total of traceability of the funds and the indivi-ment signed by the two sides, and ac- 58 200 000 CFA francs. The interest of dual accountability of the MSRE. Thecording to the level of commitment of the approach also lies in the fact that latter is fully responsible for reimbur-the MSRE. The group provides the de- the most vulnerable populations may sements and will not receive any gua-btors with moral support. The « joint have access to financing. For example, rantee except in cases where failure toguarantee group/DFS » agreement 93% of MSRE regrouped into joint pay is established. Then the guaranteewhich incorporates the «Refinancing/ guarantee groups and benefiting from fund is mobilised according to the pro-Guarantee Fund» links PROMER to the loans are women. In addition to the visions stipulated in the agreement (co-financial institution. amount provided, the quality of the verage of part of the loans registeringThe joint guarantee group will have a delay of between 3 to 12 months). portfolio is an important reason for sa-access to financing under a certain tisfaction. On the whole, the declarednumber of conditions. To be eligible 98% reimbursement rate reimbursement rate is over 98% for afor a loan, member MSRE should, be- portfolio with close to zero risk forforehand, be PROMER partners and The strategy consisting in facilitating more than 90 days.members of the decentralised finan- MSRE’s access to credit through their joint guarantee groups has become From the viewpoint of the group’s or-cial system and have an account there. ganisation, the participation of the dif- increasingly relevant judging by theThey should moreover benefit from results obtained. At this stage of the ferent actors in the risks incurred whenprior support (pre-diagnosis and dia- implementation of PROMER’s pro- the loans are put in place enhance thegnosis) and be a member of the joint gramme dubbed «Access to finan- establishment of confidence. The indi-guarantee group according to the cial services», three agreements have vidual accountability of debtor MSREconditions defined. Besides, their been jointly signed between guarantee which agree to share the risk promotesrequests for financing should be va- groups and DFS partners of the pro- the sustainability of the arrangementlid and their financial needs justified. ject (one in Tambacounda, one in Kao- and the securing of financing.The bureau of the group validates the lack and one in Thiénaba).CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 7
    • However, the implementation of therisk-sharing strategy by PROMER, DFSand Joint guarantee groups, came upagainst difficulties like lack of involve-ment of the majority of members in theactivities of the joint guarantee group.There were also problems linked tothe effective dissemination of informa-tion. Finally, the relationship betweenDFS and Joint guarantee groups occursin an environment marked by the dif- ©PROMER 2ferent levels of technical capacities.Thus, the partnership is not managedwith the same level of appreciation.Providing services to a neglectedclientele mobilising funds at least cost (interest BIBLIOGRAPHY:Risk-sharing as a tool to facilitate ac- rate of 2 to 3%), steady savings which PROMER II Strategic and Operationalcess to credit by PROMER beneficiary enables the counter to practice sustai- GuideMSREs needs to be replicated in IFAD nable financing».(International Fund for agricultural Partnership Agreement Professional Beyond access to credit and the se-Development) projects’ intervention Organisation of Bakers and UIMCEC curity of granted loans, risk-sharingareas. However, its success entails its guarantees the durability of relations Partnership Agreement Cashew Nutsimplementation through joint gua- between the DFS and the MSRE. In- Women Processsors of Thiènéba/rantee groups. Seen from this angle, deed, as was said by Ibrahima Sory URMECSit represents real prospects for pro- Diallo, provider in charge of financial «Refinancing/Guarantee Fund »fessional organisations that constitute support to the Tambacounda Ope- Agreement, PROMER/UIMCECnaturally homogeneous and organised rational Unit, « if it is effectively ma-groups. naged, the guarantee fund set up byThe approach is all the more credible joint guarantee groups will outlivesince in addition to access to finan- PROMER which is a fixed durationcing, the securing of funds is at play. project. As long as this fund exists, the relationship with the financial institu-This is the real issue perceived by DFS, Visit tion will continue ».which consider this process as a way www.fidafrique.net/?lang=enof serving an abandoned clientele. The joint guarantee group, which de-Moreover, the concerted action for the pends on professional organisationsdefinition of the terms and conditions are important stages in the establish-of risk-sharing and the validation of ment of surety companies which willMRSE applications were a real innova- be coordinated by inter-sector consul-tion in the management of their needs tation frameworks. There is need toin financial services. explore this axis to ensure an effectiveEl Hadji Moussa Diongue, URMECS and appropriate financing of operatorsDirector, said he was pleased with the of the sectors.agreement signed with women activein the processing of cashew nuts in ABBREVIATIONS ANDSThiénaba, adding: « In initiating this ACRONYMS:approach, SAFIR did well since it is SAFIR: Service d’Appui à la Financea way of securing loans. By partici- Rurale/Rural Finance Support Servicepating in the group’s guarantee fund,each debtor feels responsible for the BOAD /WADB: West African Deve-reimbursement of the loans. By pre- lopment Bankserving their guarantee fund which DFS: Decentralized Financial Systemshould cover 15% of loans registering MSRE: Micro and Small Rural Enter-repayment delays of three to twelve prisesmonths, they ensure the security ofPROMER’s guarantee fund which is PO: Professional Organisationsmobilised to cover loans with over a IFAD: International Fund for Agricul-year’s reimbursement delay. Further- tural Developmentmore, the guarantee fund (15% of theloan amount) is an efficient way of8 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • BUSINESS DEVELOPMENT SERVICEHow to improve the performance ofmicro and small rural enterprisesFatoumata Sané Guissé, atoumata.sane@promer-sn.orgOusseynou Ndiaye, osendiaye@yahoo.frHawa Diarra, masagne58@yahoo.frA quality business development service guarantees the performance and competi- These advisers were selected on thetiveness of micro and small rural enterprises (MSRE). The experience of business basis of a call for candidatures and in-development service markets launched within the Project for the promotion of rural terviews.entrepreneurship of Senegal (PROMER) shows that the availability of service pro-viders with established skills, methodological tools and the appropriate standards The lessons learnt from this expe-can bring about an increase in MSRE productivity and jobs. It also improves the rience, at the end of PROMER I, ledquality of products, facilitates access to local markets and provides opportunities in the project to externalize this functionnational and regional markets. during its second phase. The latter thus sought to go further by granting autonomy and a sense of responsibi- lity to non-financial service providers with the aim of perpetuating a quality close-by offer for the development of MSRE. Fortified by this conviction, PROMER considers that a high-qua- lity business development service fa- cilitates the effective performance and competitiveness of micro and small rural enterprises defined as businesses established in the rural areas and em- ploying not more than 20 people with a turnover of not more than 25 million CFAF for service providers, or ©PROMER 2 50 million CFAF for operators involved in the delivery of goods. The principle of implementing PRO- MER support is based on «getting something done». It seeks to develop a permanent and sustainable market of financial and non-financial supportPrior to the implementation of the first (MSRE), emerged with the advent services. The approach consists inphase of the Project for the promotion of PROMER. During its first phase,of rural micro-enterprises (PROMER), identifying, selecting and strengthe- PROMER had a pool of 24 internalthe business development service was ning local providers to enable them business advisers disseminated in aspractically non-existent. The few of- to offer quality services, accessible to many Proximity Business Advisoryfers available in this sector came from MSRE. These services translated into Service Zones (ZAEP). They wereurban centres to the rural areas. There an improvement of productivity in the responsible for sensitization and pro-was a real problem to match the sup- various sub-sectors in which PROMER viding guidance about the opportu-ply and the demand and this impeded intervenes (best turnover and job crea- nities, opening of current and savingsthe productivity and competitiveness tion) and competitiveness of products accounts, identification of proponentsof rural enterprises. of concerned businesses (availability of business initiatives, providing themThe business development service, and access to local, regional and na- with support to prepare project docu-for micro and small rural enterprises tional markets). ments and their monitoring-assistance.CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 9
    • training modules: GERME level 1, GERME classical and TRIE/CREE and Follow-up. Providers undergo trai- ners’ training courses taught by ILO experts and are then coached up to certification. Providers also undergo training in dia- gnosis techniques to acquire the abi- lity to effectively conduct a business diagnosis, a key phase of the rural en- terprise assistance mechanism. Some providers benefit from enhanced ©PROMER 2 training in specific areas like gender, marketing, quality control and the ma- nagement of supplies. Moreover, res- killing workshops are regularly held to inform and sensitize providers about the different sub-sectors, the MSRE Evaluation of service providers by a BIT trainer focusing on quality and PROMER environment or, more generally, to strengthen their capaci-This article is intended to show how based on objective criteria. The pro- ties.PROMER provided its support and vider of non-financial service provider The training of providers and microguidance to put in place an offer adap- (NFSP) is an independent professional and small rural enterprises is a keyted to the MSRE development service consultant or a group of consultants component in the PROMER strategy.in order to draw the necessary lessons (research consultancy, firm, associa- It includes several aspects: businessfor possible replication. The in-depth tion, training structure) specialized in management, capacitation of profes-analysis of the SDE/PROMER issue as a providing business advice services (in- sional organisations, pre-diagnosistool likely to boost the development of formation, diagnosis, assistance, mo- and diagnosis techniques… Moreover,micro rural enterprises will then lead nitoring.), training services (technical, PROMER II rapidly understood that into the review of the quality offer, the management, literacy) and specific addition to strengthening the capacityimprovement of MSRE performance, support services (commercial innova- of providers, there was need –to makethe competitiveness and sustainability tion, commercial promotion, technical them more operational- to increaseprospects. and technological innovation). their level of equipment. For this rea- The process begins with the identifica- son, these providers are assisted toTraining of Trainers tion of non-financial service providers. access credit. Thierno Ibrahima Dial-The development of micro-enterprises Applicants fill an information form on lo, a non-financial service provider inin the rural areas is a wonderful op- their profile (firm, specialized training Kaolack thus obtained a credit of 1portunity for poverty reduction in the institution, independent consultant, 755 000 CFAF which he used to buy aSenegalese countryside. It can pro- corporate name, address, contacts, motorcycle, computers (desk top andmote the emergence of proximity ser- legal form, trade registration number, portable) and office furniture.vices and facilitate access to inputs. human resources, physical resources, experience, references). A technical Meeting the needs of ruralPROMER I helped to develop andadapt methodological tools in support commission then selects applicants on populationsof rural micro enterprises (RME) es- the basis of criteria listed in a grid. The The actors participating in this initia-sentially based on communication and final selection is done by a committee tive – PROMER, non-financial serviceguidance, the identification of propo- comprising representatives of ILO (In- providers, micro and small rural en-nents of business initiatives, pre-dia- ternational Labour Office) and PRO- terprises, professional organisationsgnosis, diagnosis, monitoring and sup- MER, with the help of a guide. The – contributed to the success and pro-port counselling. The second phase selection criteria are based on the le- gress registered.is meant to consolidate the accom- vel of education, experience in mana- gement and setting up a business, the PROMER informs and sensitizes mi-plishments of the pilot experience by understanding of the stages of business cro and small rural enterprises aboutimplementing the « getting something creation and management, training ac- the importance of the business de-done» strategy. By organizing the tivities performed, motivation, availa- velopment service. It also identi-supply and secured demand, this ap- bility and ability to take initiatives. fies the providers with whom it hasproach brought about the emergence contract-based links to meet the sup-and consolidation of services offered The selected providers undergo a se- port needs of enterprises. To that end,to micro and small rural enterprises ries of training. The training of trainers it strengthens their capacity before(MSRE) to ensure their sustenance. prepares them to assist proponents entrusting them with pre-diagnosis,Thus, a system of service providers of business initiatives and micro and diagnosis, support in the definitionwas set up using a selection process small rural enterprises in the pursuing of financing and training plans. After10 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • undergoing the appropriate training, sufficiently equipped to offer quality, The effects of this project supportthese providers may also provide trai- accessible and permanent services to are perceptible among entrepreneursning and management support. micro and small rural enterprises. through their familiarity with instru-At the technical level, non-financial In fact, the quality approach, which ments and processes used to processservice providers assist proponents underpins this innovative approach, and preserve products. The informa-of business initiatives and micro and partly contributed to the performance tion deriving from the monitoring-as-small rural enterprises. The assistance of PROMER-backed MSREs, marked sistance of 48 % of MSRE reveal theranges from diagnosing their follow- by an increase in their productivity creation of 427 new rural jobs andup activities to training and support- and turnover. This situation is illustra- the consolidation of 1977 others, andcounselling. The providers are located ted by the quantitative, qualitative and a 26% increase in the turnover of en-in 6 regions, 12 concentration zones impact analysis of PROMER’s techni- trepreneurs between September 2009and 33 rural communities. cal achievements report for 2010. A and September 2010. The accumu- network of 71 non-financial service lated turnover rose from 1 030 787Micro and small rural enterprises are providers formed since the commen- 969 FCFA to 1 298 939596 CFAF, anthe receptacle of all the support pro- cement of the project (including 47 increase of 268 151 627 CFAF in ab-vided by PROMER through its opera- operational NFSP) contributed to solute terms.tional partners. The MSRE include pro- achieving the following results.ponents of business initiatives, income Despite the innovations and advan-generating activities, rural micro enter- At the quantitative level, 352 MSRE out tages introduced by this approachprises) and small rural enterprises. The of an initial target of 405 were set up which promotes the emergence andMSREs deliver a service as well as and consolidated in 2010, i.e. an 87 % availability of a local quality service of-products of quality to meet the needs accomplishment rate which brings the fer leading to enhanced performance,of the rural populations. They seek to global portfolio of supported MSRE a few social and economic difficultiesperpetuate the offer by satisfying the (setting up and consolidation) to 1101 are observed. Illiteracy is still very highdemand. MSRE out of the project’s global target and there are real difficulties to access of 1330, i.e. a 83 % accomplishment investment financing.The actors also include professional rate two years away from the end oforganisations, a regrouping of people the project. At the qualitative level, Increase in competitivenessor rural micro enterprises around the the use of non-financial support in Here, the competitiveness of MSREsame chain. The professional organisa- technical training, management and corresponds to their capacity to satisfytion or PO is a platform for the capa- apprenticeship, promoted the deve- the local and national market both incity building of its members. It is also lopment of a strong MSRE network, quality and in quantity. Actually, thea credible point of contact for political the structuring of short distribution implementation of PROMER I, like itsauthorities and development partners, chains in the intervention areas as well second phase, helped create favou-in the defence of the interest of its as the emergence of local professional rable conditions which enabled mi-members. organisations and the effectiveness of cro and small rural enterprises to takeWithin the framework of a partnership frameworks for sub and inter-sector advantage of all market opportunities.agreement, the International Labour consultations. The RME shop, in the first phase andOffice, between 2006 and Septem-ber 2010, provided methodologicalsupport in the application of GERMEstandards for the acquisition of a po-tentially profitable marketfor the bene-fit of providers.427 new rural jobsThe key missions of PROMER2 in-cludes support for the emergence andconsolidation of the non-financialservices offer to MSRE through theorganisation of demand and supplyand the sustainable development of ©PROMER 2an appropriate support service mar-ket for MSRE. The implementationof this recommendation, drawn fromthe lessons of PROMER I, is based onthe establishment of contractual linkswith non-financial service providers.The approach consists in making athorough selection of local providersCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 11
    • then the commercial/chain infrastruc- food products and the preparation of representing an increase of over 45%.ture, in the second phase, falls within guides for good practices stepped up This qualitative leap is due to the qua-this framework. the competitiveness of MSRE products lity assistance given to MSREs by non-The actions taken generated noticeable at both local and regional levels, as il- financial service providers, which mo-results in terms of improving the com- lustrated in the cases referred to. At the nitor them regularly.petitiveness of MSRE. For example, national and sub-regional levels, tradein the region of Kolda, the analysis of fairs and professional meetings are MSREs ready to pay for servicesreports on the monitoring-assistance important barometers to measure the The sustainability of the supply andof local milk processing units shows competitiveness of MSRE products. demand is measured through the MS-that the support received from PRO- The participation of PROMER-backed RE’s contribution to the costs of ser-MER for the acquisition of equipment MSRE in the twelve editions of the vices and the providers’ access to theand financing, but especially for com- FIARA ( International Fair for Agri- market. The evaluation of the situationmercial support (packaging, develop- culture and Animal Resources ), a shows an insignificant participation ofment of a logo and event concept to showcase for the promotion of MSRE MSREs to the costs of services. Prior tolaunch new products) helped increase products at national and sub-regional PROMER’s mid-course review, no mo-their annual earnings by about 30 % in level, attests to PROMER’s commit- nitoring-assistance activity had been2010. The annual turnover estimated at ment to promote these products. The undertaken by the project because7 300 000 CFA F reached 9 490 000 last two FIARA editions, in 2010 and in the MSREs had to pay up to 33% ofwith daily earnings of 30 000 to 35 2011, registered an increase in turno- costs during the first year, 66% during000. Today, thanks to PROMER’s com- ver. The turnover of MSREs during the the second year and 100% in the thirdmercial support, quality improvement, 2010 FIARA was 2 776 875 CFAF and year. The activity was able to kick-offthe financing of microbiological tests several contacts were established. In only after the IFAD mission decided toto obtain authorisation to fabricate 2011, it rose to about 3 900 000 CFAF, provide monitoring-assistance free of TRAINING FOR PERFORMANCE The training of providers and micro fessional organisations to better as- niques. The MSRE diagnosis mission and small rural enterprises is a key sume their roles and responsibilities consists in an objective evaluation component in the PROMER strategy. as platforms of services for micro and of the characteristics and functions It includes several aspects: business small enterprises in the rural areas. It of enterprises which results in an management, empowerment of pro- is a reference tool for the Ministry of operational and realistic plan. It is fessional organisations, pre-diagnosis Agriculture and Rural Development, intended to conduct an in-depth ana- and diagnosis techniques…. the International Fund for Agricultu- lysis of the enterprise by examining Better Manage your Business. This ral Development (IFAD) and the ILO all its functions (supply, production, training addressed to both poten- sub-regional Office for the Sahel in human resource management, finan- tial entrepreneurs and those already Dakar, which strives to provide sup- cing, marketing) and its environment in activity, seeks to sustainably im- port in training with a view to equip- (market, competition). The obstacles prove MSRE performance. The to- ping professional organisations with and solutionsshould be identified and ols used, according to a participatory tools and documents to help them analysed in a participatory manner. approach, are simple, practical and carry out training activities for their The purpose of the exercise is to adapted to reality. There is a comple- members. give a sense of responsibility to MSRE mentary tool based on the corporate Today, the PACTE is implemented in and autonomy to carry out activities game. In order to adapt the tools to more than nine countries. Its metho- at all levels with minimum outside in- PROMER targets, GERME level 1 dology is based on a three-phase tervention. They should be made to (training in business management triangular approach: learn to know us feel responsible for its successes and adapted to entrepreneurs with low better ; reflect together on solutions failures, and this encourages them literacy skills) was initiated. It consists to our problems ; act to progress to- to undergo training in order to make in a set of modules addressed to tar- gether. This triangular approach, fun- progress with regard to its results. gets with low literacy skills engaged damentally participatory with a view The MSRE’s autonomy is also reflec- in income-generating type (IGA) mi- to creating a collective dynamics, ted in the financing of activities if, cro-activities and intending to mi- should be fully understood by PACTE from the onset, financial or mate- grate towards an enterprise. trainer advisers and be taken into ac- rial support is necessary to launch Partnership for concerted actions count in the development of the to- the activities. Monitoring leads the through transfers and exchanges ols. Training, based on the demand, MSRE to enhance the support by in- (PACTE). PACTE is a training meant is done using a package of modules. creasing profits in order to be able to strengthen the capacities of pro- Pre diagnosis and diagnosis tech- to reinvest in the activities.12 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • The second lesson to be learnt from the emergence of a business develop- ment service market in the rural areas is the fact that providers of non-finan- cial services are empowered to take ownership of the tools and adapt them to the needs of PROMER targets, ac- cording to their level of education and literacy. Thus, the need to manage with greater care the selection of non- financial service providers. Finally, GERME level 1 is a benefi- cial innovation in PROMER’s SDE ©PROMER 2 approach, since it takes into account in its support strategy, those who are literate in local languages. However, for it to be more efficient, it should be translated into local languages. The totally illiterate targets, who have not yet been catered for in the bu-charge for the first time. In any case, PROMER. There is room for hope siness management training, need tothe payment of the service, especially since, from 2007 to 2010, there has be given special attention within thefor the first time, is inherent in the qua- been a net increase in the amounts of research/development framework oflity of the services rendered and thus providers’ benefits, as shown in the training modules meant to completeto the provider’s capacity to develop graph below. PROMER’s support strategy.the entrepreneur’s activity.The interviewed MSREs said they A beneficial innovationwould gladly pay for the service if they The availability of a quality business BIBLIOGRAPHY:matched their interests. An MSRE like development service offer in the rural 1. PROMER 2 Pre-evaluation Report (RPE)Sira Fofana said it was ready to pay areas guarantees the emergence and 2. Operational Strategy Guidefor the service because it addressed viability of micro and small enterprises (GUISOP)its concerns, notably its training and that are either freshly set up or beingpackaging needs through the provi- consolidated. However, to ensure that 3. Manual of Technical Operationsder assisting it. Entrepreneur Wassa the perpetuation of the service, the (MET)Senghor of Dassilamé Socé, who is training modules should, at all times, 4. MSRE Monitoring-Assistanceengaged in the processing of cashew be adapted to the context and targets. Reports 4 (Sud- East Kolda Branch)nuts, said he was prepared to pay for In other words, the best developmentthe service provided that the expertise 5. PROMER 2 Annual Report 2010 strategy is the one that adapts to theacquired would help him develop his realities of the environment and not 6. Final External Evaluation Reportactivity. Boubacar Keita, of the Tam- the one that would expect the envi- on the Impact of the Non-Financialbacounda bakers MSRE said he too ronment to adapt to it. This is the first Service Providers’ interventionwas ready to pay for it even after the lesson that we wanted to demonstrate 7. Report of the PROMER II Mid-project ends because « monitoring-as- and share through the PROMER expe- Course Reviewsistance enables the MSRE to apply ac- rience within the context of the SDEcounting rules and hygiene and quality approach.standards ».According to the non-financial ser-vice provider, Thierno Abdoul Diallo, Evolu on of amounts paid to the NFSP by PROMER 2 2007 à 2010to ensure perpetuation of the service 35000000even after the end of the project, 30000000there was need to « establish a rela- 25000000tionship of confidence by encouraging Amount 20000000the MSREs to consider the NFSP as Amount 15000000advisers and not as simple providers Year». This work can involve chairmen of 10000000rural councils. There is also need to 50000000reinforce/recycle the technical and 0institutional skills of providers. The lat- 2007 2008 2009 2010ter should also diversify their income Yearby accessing other markets outsideCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 13
    • EqUIPMENT GRANT SUPPORT TO GRADUATE APPRENTICESAn Effective Scheme for BusinessStart-up and Employment of RuralYouths in GhanaCletus Kayenwee, cletuskayenwee@gmail.comFelix Appiah Gambrah, gambeegh@gmail.comJustice Darko, justicedarko@gmail.com ©REP2 The workshop of graduate apprentice supported by REP in Juaso, Asante Akim South DistrictThe provision of equipment grant support to graduate apprentices facilitates early establishment, development and promotion ofbusinesses. This had been realised since 2006 through collaboration between the REP, the District Assemblies and the graduateapprentices in the project intervention districts. Support consisted of procurement of the start-up equipment through a cost-sharing arrangement involving the Project and the District Assemblies and complemented by commitments from the youths.Since 2006, the Rural Enterprises themselves after successfully complet- equipment grant support scheme toProject (REP) has supported graduate ing apprenticeships. The inability of the graduate apprentices is to facilitateapprentices with basic equipment and graduate apprentices to start their own business establishment, create job op-tools to start their businesses in rural businesses is due to the lack of start- portunities, improve standards of liv-areas of Ghana. In rural communi- up capital, which is a consequence ing and ultimately reduce poverty inties of Ghana,, many young people of the relatively high poverty levels in the rural areas.face serious challenges to establish the rural areas. The objective of the14 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • Equipment grant support to graduateapprentices was part of the integrat-ed activities of the Rural EnterprisesProject. This activity was targeted atyoung people who successfully gradu-ate from traditional apprenticeship inall the sixty-six (66) Project districts inthe 10 regions of Ghana. To benefitfrom this facility the Project developedstandard criteria for grant allocation tointerested individual graduate appren-tices aimed at achieving effectivenessand sustainability. ©REP2The experience of REP with this ini-tiative strongly suggests that providingequipment as grant to graduate ap-prentices in the rural areas of Ghanafacilitates business establishment, de- A graduate apprentice supported by REP II at his Bicycle repairer shop in Donkorkromvelopment and promotion. also targeted at the families of the reci- GRATIS Foundation. The MLGRD pro-Traditional Apprenticeship and pient graduate apprentices who would vided strategic direction in Project im-Youth Targeting otherwise have had to find resources plementation and served on the pro- to set up their wards in business. ject steering committee. The GRATISIn Ghana, apprenticeship has been or- Foundation was the key Implementingganized mainly through the traditional Stakeholders and Develop- Agency for the provision of techno-system where the youth are attached ment Partners logy promotion and apprenticeshipto master crafts persons to acquire training.skills through learning on the job. The The major stakeholders involved in theduration of traditional apprenticeship Category 3 comprised the Project equipment grant support intervention beneficiaries, including the participa-ranged from 2 to 3 years, with the and their roles can be grouped into ting District Assemblies (DAs) whichcosts involved usually borne by the three categorises as follows. were the seat of Project implementa-apprentices themselves and/or their Category 1 comprised the major fi- tion, and provided counterpart fun-guardians or sponsors. nanciers of the Project, namely the ding; Local Business AssociationsOn the successful completion of the Ministry of Trade and Industry (MOTI), (LBAs) which helped to identify bene-apprenticeship, opportunities become the International Fund for Agricultural ficiaries and Project clients who wereavailable for employment in existing Development (IFAD) and the African the eventual owners of the Project. Development Bank (AfDB). MOTIestablishments or through the estab- Finally a key stakeholder was the Pro- was the Executing Agency and Super-lishment of their own business. How- ject management which had responsi- vising Ministry for the Project, provi-ever, in the rural areas where poverty bility for the overall management of ding policy and strategic directions forlevels are relatively high, many gradu- project implementation. Project implementation. MOTI alsoate apprentices are unable to acquire chaired the Project Steering Com- The Project specifically targeted thethe equipment to set-up their own mittee meetings (PSC). IFAD was a vulnerable rural youth who demons-businesses. Consequently some of key development partner providing trated commitment through skills ac-these young graduate apprentices con- development assistance funds for the quisition. A cost sharing arrangementtinue to remain attached to their mas- Business Development Services, Rural was established between the Projectters even for several years after gradu- Financial Services, Institutional De- and DAs for financing the grant equip-ation, while others accept menial jobs velopment and Project Management ment awarded to beneficiary graduatein unrelated trades or migrate to the components of REP II. AfDB was also apprentices. The beneficiaries provi-urban centres to hassle in the hope of a key development partner which pro- ded their own working space and wor- vided funding for the Technology Pro- king capital as an indication of theirfinding some form of employment. motion and Support to Apprenticeship readiness to benefit from the scheme.To address these challenges, REP’s component and Business Develop- Implementing the equipment grantintervention targeted the vulnerable ment Services for the implementation support protocol involved sensitiza-rural traditional graduate apprentices of REP II. in some districts. tion of participating District Assem-between the ages of 18 - 30 years who blies, assessment of equipment needs Category 2 consisted of representativesdemonstrated potentials to use the of the Government of Ghana, from the of the graduate apprentices by theskills obtained from training to improve Ministry of Local Government and BACs/RTFs, selection of the beneficia-their communities. REP activities were Rural Development (MLGRD) and the ries by the District Assemblies throughCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 15
    • ©REP2 The Monitoring and Evaluation Officer of REP in a hand shake with a graduate apprentice at his workshop at Sogakope in the Volta Regionthe BACs and RTFs, procurement of ment grant support at the district level For example, many of the beneficiariesthe equipment by the Project.Distribu- generated growing interest among the of this programme are currently offe-tion of grant equipment to beneficia- youth to undertake apprenticeship trai- ring complimentary services to peopleries, follow-up technical backstopping ning to acquire practical and manage- who are engaged in various forms ofto assist in establishing and operating ment skills and possibly to also receive agricultural activities, e.g. welders,the businesses. support for starting up their own enter- fabricators and blacksmiths who are prises. Some District Assemblies, for producing basic farm implements andEquipment Grant Support for example the Mporhor Wassa East Dis- providing equipment repair servicesBusiness Establishment and trict Assembly, had also taken up the for farmers and agro- processors. Gra- challenge to implement this activity in duate apprentices operating as auto-Development their districts without Project support,. electricians and auto-mechanics inOver the last five years of REP imple- the rural areas are providing vital re- Business establishment: In the area ofmentation of the equipment grant sup- pair services for agricultural machinery business establishment, an effectiveport scheme substantial impact has and transport in the agricultural sector. mechanism was created for providingbeen evident on the lives of the tar- A further impact of establishment of young people with business start-upget groups. Impacts occurred in three businesses by supported graduate ap- capital.. To date, 3,182 rural youthmain areas, namely (i) access to equip- prentices is the creation of jobs and had benefited from the activity, out ofment as grant; (ii) business establish- generation of incomes for the bene- which, over 70% have already esta-ment, and (iii) business development ficiaries and their employees. So far, blished their businesses. Consequently,and promotion. 70% of the recipients have successfully the level of economic activities hadAccess to grant equipment: As a result increased significantly in the benefi- established their own businesses. Asof easy access to equipment as grants, ciary districts. Through the increased at March 201, 2,227 direct jobs werethe equipment support activity spread economic activities, the owners of the created The businesses and jobs crea-rapidly to 52 districts in the country. enterprises earn incomes to support ted enabled beneficiaries to generateThis spread of equipment grant sup- their families as well as contribute to incomes reduce rural-urban drift andport contributed to an equitable dis- the overall development of the districts contribute to the GDP at the district le-tribution of the national development through the payment of various levies vel. Besides direct or indirect employ-programme and bridging of the gap and taxes. ment, the graduate apprentices havebetween employment opportuni- also created opportunities for other The establishment of businesses by the young people in the rural areas to un-ties gap between the rural and urban graduate apprentices has also resulted dergo apprenticeshipsareas. Furthermore, access to equip- in value addition to the rural economy.16 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • Business development & promotion: ters square, 8 inches pinches) – GHc committed to contribute resources toThe third area of impact from the 442.50 ($295); and dressmaking (sew- the graduate apprentices. Furthermore,equipment support activity is in bu- ing machine, electric iron, box iron, more efficient monitoring and super-siness development and promotion in medium sized scissors, large sized scis- vision of the use of equipment by therural communities. Continuous support sors, over-lock machine) – GHc 368.70 BACs and RTFs should be introducedis provided to young entrepreneurs ($245). Others are welding (electric and beneficiaries should be given ini-through further training to strengthen welding machine, welding cable, tial training in a Start Your Businesstheir entrepreneurial capacities and welding earth cable, electrode holder, Workshop to equip them with practicalhelp them to learn new ways of offering transformer oil, electric drill, bench entrepreneurial knowledge and skills.quality services to customers. In addi- vice, measuring tape, hammers, chip-tion to capacity development through ping hammer, angle grinder) – GHc Conclusions and the Waytraining, follow-up and business coun- 1151.00 ($767); and auto-mechanics Forwardselling services were also offered to (open ended spanner, combinationyoung entrepreneurs to motivate them spanner, mechanical puller, heavy duty To improve implementation of thisto improve their competences. shifting spanner, heavy duty shifting equipment grant scheme, to build on spanner, wheel spanners screw driv- and optimize the current achieve-One key result of the equipment sup- ments, a few critical issues need to beport is the interest of the young entre- ers, hydraulic jack, tools box) – GHc 451.00 ($300). addressed. Firstly, the Local Businesspreneurs to formalise their business as Associations (LBAs) should be more in-early as feasible. The project has so far Implementation of this equipment volved in the selection of beneficiaries.supported 41 enterprises owned by grant scheme encountered interesting This will ensure greater transparencygraduate apprentices to register their challenges, including lack of interest and minimise undesirable interferencebusinesses with the Registrar General’s from a few districts that consequently in the scheme. Secondly, more youngDepartment. These enterprises have had not taken advantage of the facility. women should be encouraged to par-gained credibility in the business com- This negatively affected the objective ticipate in distinctly male-dominatedmunity and are now in a position to of promoting rapid establishment of trades and should be given equipmentcompete more effectively in the mar- new businesses by the youth in all the after graduation to set up their own bu-ket place. project districts.. The Project was also sinesses. Thirdly, the project should in-The increased production and levels of unable to respond adequately to the crease the number of beneficiaries perproduct sale by enterprises established high levels of demand for the interven- district every year. Fourthly, in orderby the beneficiaries served as a catalyst tion. to ensure sustainability of the scheme,for the creation of other businesses (e.g. Although standard guidelines were District Assemblies should be encou-suppliers/retailers) within the districts. prepared to ensure smooth selection of raged to allocate funds, in their annualThe increased assets base of the enter- beneficiaries, the process sometimes budgets, for equipment support to gra-prises established by the beneficiaries created conflicts amongst various inte- duate apprentices. Fifthly, there shouldleads to higher levels of sustainability rest groups such as LBAs, DAs (autho- be a platform for sharing experiencesof the businesses. rity and assembly members), and RTFs/ with other institutions implementing BACs competing for the limited num- this or similar activities to achieve grea-Funding Arrangements and ber of available places...A further chal- ter impact. For example collaborationChallenges lenge was the unauthorized relocation should be established with the Natio- of some beneficiaries to other loca- nal Youth Employment ProgrammeREP and participating DAs contribute tions, making it difficult for the RTFs or (NYEP) which provides apprenticeshiptowards the funding of the equipment BACs to track them. Other challenges and equipment support to unemployedsupport scheme. The total cost in- were; lack of willingness of some of youths.volved in the acquisition of the equip- the beneficiaries to make further in-ment for the 3,182 beneficiaries was During the past five years of project vestments in the business by paying life, REP has provided equipment sup-GHc 1,800,000 (= US$ 1,200,000). for training, weak record keeping andREP contributed about 80% and DAs port to the rural youths who, othe- unwillingness by some beneficiaries rwise, would probably never be able20% of the funds, while the target ben- to share information and experienceseficiaries are expected to contribute by to set up their own business. about their businesses especially on fi-providing workshop space and work- nancial transactions, as well as access The experience of REP in undertakinging capital. Examples of equipment and to credits to cover working capital for this scheme is consistent with the po-their average costs are as follows: hair new enterprises. verty reduction component of thedressing (hair drier, hand drier, rollers, Project. This scheme has contributedrollers stand, set of combs, hair dress- Despite these constraints, there is significantly to facilitating the establish-ers washing basin, scissors, hair brash) strong evidence to show that imple- ment, development and promotion of– GHc 206.30 ($150); carpentry (sand- mentation of the equipment grant businesses by the youth in rural Ghana.ing machine, iron plan, bit and brace, scheme to graduate apprentices facili- tated early business establishment, de- The Graduate Apprentice Equipmentspoke shave, glass cutter, F-clamp, Grant support Scheme is a major tooltape measure, 25mm hammer, 20mm velopment and promotion. However, higher levels of success can be achie- for fast-tracking youth employmenthammer, claw hammer, hand saw 24 and should be up-scaled and replica-inches,18inches hand saw, carpen- ved if the clients and the DAs remain ted by other development partners.CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 17
    • DISTRICT ExhIBITIONS AND TRADE ShOwSA Market Access Tool for Rural Microand Small Enterprises Elizabeth Nguah, betnguah@yahoo.com ; Marina Serwaa Kusi, marinakusi@yahoo.com ; Roland Roosevelt, Agodzo agodzzo@gmail.com ©REP2 REP Clients’ Exhibition & Trade show ground recording high patronageThe Rural Enterprises Project orga- expanded markets and increased pro- Tradeshows and exhibitions providenized district exhibitions and trade ducts sales. opportunities for entrepreneurs to dis-shows to create opportunities for mi- MSEs in Ghana encounter a variety of play their products and thus serve ascro and small enterprises (MSEs) to demand and market access challenges a Market Access Tool for rural microexhibit their products, and to seek such as poor product quality and limi- and small enterprisesnew business opportunities, especially ted business opportunities. Therefore,market outlets outside their home dis- they are unable to explore markets Organization of exhibitionstricts. These events also enabled en- beyond their localities and thus fail to and trade shows by the Ruraltrepreneurs to share knowledge and expand their market share to increase Enterprises Projectexperiences as well as acquiring new products sales.techniques which will generate new The organization of Trade Fairs in Gha-ideas on products. The participation Exhibitions and trade shows are an- na was initiated by the Ghana Tradeof MSEs in exhibitions and trades- nual stage-set trade events which faci- Fair Authority in 1967. Since then,hows thus created opportunities for litate direct contacts between manu- international trade fairs have been or- facturers, distributors and consumers. ganized mainly for medium and large18 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • enterprises in Accra and in selectedregional capitals. However, MSEshave had limited access to internatio-nal fairs because of high participationcosts and lack of sufficient capacity toparticipate in such events. Therefore,the Rural Enterprises Project (REP) I or-ganized district exhibitions and tradeshows to assist rural micro and smallenterprises display their products andthus explore new and potential mar-kets beyond their rural communities.The first such event was organized inthe Techiman district of the Brong-Ahafo region where clients from thethirteen (13) participating districts ofthe Project exhibited their products.The event was named “REP Clients’ ©REP2Exhibition and Trade Show” to depictthe exclusiveness of the event for Pro-ject Clients. Subsequently this eventwas institutionalized in line with pro-ject services. An Exhibitor being assisted by a Project staff to display her wares,Organization of the tradeshows in- Asamankese exhibition groundsvolves the participation of severalstakeholders who play different roles business linkages established during tradeshow six months later. The eventto ensure success of the event. Stake- the tradeshow. exposed the trade potentials of theholders include International Fund for The Project clients are given the op- host districts and recorded a high tur-Agricultural Development (IFAD), Afri- portunity to exhibit agro processed nover of visitors who occupied all thecan Development Bank (AfDB), Dis- products (cassava based products, major guest houses and hotels.trict Assemblies and various Clients. palm oil, soap, cashew, sheanut); agri- The organization of the clients’ exhibi-The Project has organized nine (9) dis- culture and forest products (grasscut- tion and tradeshow was capital inten-trict tradeshows for 1,507 operators ter, guinea fowl, rabbit, bee keeping, sive and sustainability of the event wasincluding 48% women entrepreneurs. mushroom, fish farming); traditional a major challenge. Therefore, the Ru-The total cost of organising a client ex- crafts (batik tie & dye, pottery, leathe- ral Enterprise Project therefore planshibition and trade show for 200 exhi- rworks); primary fabrication and re- to sensitize the District Assemblies tobitors was about Ghana Cedi 102,075 pairs of agro-processing equipment, take full responsibility for the organi-(= US$68,050) farm implements and tools as well as zation of the event on rotational basis.Tradeshows were organized in res- the display of clothes, garments, and The Ghana Trade Fair Authority willponse to demands from and commit- beauty care products. also be sensitized to consider esta-ments by the host districts and clients, blishing partnerships with the Districtthus a demand driven approach was Experiences Assemblies to organize district trades-adopted for the organization of these hows. Furthermore, exhibitors are en- The participation of rural MSEs inevents. Successful organisation of tra- couraged to contribute to the cost of tradeshows created opportunities fordeshows involved selection of a host the events. expanded markets, and increased pro-district with high levels of commercial duct sales. For example, in 2009, theactivities and financial commitment tradeshow in Asamankese resulted in Conclusionto support the event. The District As- 800 business executives expressing District exhibitions and tradeshowsembly should also become involved interest in the products of clients. Fur- were essential for improving marketthrough forming a planning committee thermore, 140 out of the 232 client ex- access for rural MSEs and has provenwith different experts overseeing the hibitors gained customers outside their to be a more effective and appropriateselection and preparation of appro- home districts. During the event which marketing strategy to provide ade-priate venue, publicity, and logistical lasted for one week, total sales revenue quate exposure and visibility for ruralarrangements of the exhibitors. In ad- of Ghana Cedi 55,059 (=US$36,706) MSEs within and beyond their districts.dition, the exhibitors are selected and was realized and on their return from Endorsement of these events by hostprepared at the district level based on the tradeshows, to their communities, District Assemblies, clients and otherthe marketability of their products and the records of clients revealed in- stakeholders demonstrated that parti-ability to be fully responsible for their creasing sales trends. There was also a cipation of rural MSEs in tradeshowsparticipation in the tradeshow. Fur- spill-over effect of the client exhibition created opportunities for expandedthermore, business development ser- and trade show at Asamankese where markets and increased product sales.vice was provided to clients to harness a local FM station organized a similarCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 19
    • MANAGING BUSINESS DEVELOPMENT ChALLENGES INRURAL GhANAThrough decentralized BusinessAdvisory Centres and RuralTechnology FacilitiesRichard Boateng, rboateng1952@yahoo.comMrs Juliana Adubofour, jadubofour@yahoo.comNanabanyin Brown-Addo, nabaddo@gmail.comOppong IsaacDecentralized Business Advisory Cen-ters (BACs) and Rural Technology Fa-cilities (RFTs) are designed to createa favourable environment for the esta-blishment and sustained growth of ru-ral Micro and Small Enterprises(MSEs)in Ghana.Prior to 1995, Ghanaian rural entre-preneurs often went to national andregional capitals to seek solutions totheir business development challengesbecause of the absence of permanentdistrict-owned structures responsiblefor delivering business development ©REP2services. The establishment of BusinessAdvisory Centres (BACs) and RuralTechnology Facilities (RTFs) at the dis-trict level brought these services close BAC in Asante Akim North Municipalto rural micro and small enterprises(MSEs) to create the enabling environ- sources and highly restricted engage- Foundation operated through regionalment for the development and growth ment of MSEs in policy dialogues. Business Advisory Centres (BACs) andof MSEs, sustainability of business de- the Intermediate Technology Transfer MSEs Entrepreneurs were thereforevelopment services as well as opening Units (ITTUs) respectively. compelled to travel relatively longup opportunities for employment cre-ation. Thus permanent district-owned struc- distances from the districts to the re- tures responsible for addressing bu- gional and national capitals to seek so- siness development challenges of rural lutions to their business managementUntil 1995, state sponsored support for MSEs were not available to entrepre- problems.small business development in Ghana neurs. The challenges confronting This paper describes the experienceswas concentrated in the urban areas, business development included limi- gained and the lessons learned duringespecially in Accra, and the regional ted access to business management implementation of the Rural Enterprisecapitals. The key national Micro and skills training, low levels of business Project to examine how “Decentral-Small Enterprises (MSE) support insti- counselling and advisory services and ized BACs and RTFs create a favoura-tutions include the National Board for inefficient transfer of relevant techno- ble environment for the establishmentSmall Scale Industries (NBSSI), GRATIS logies. Other challenges include the and sustained growth of rural MSEs”Foundation and the EMPRETEC Ghana rudimentary nature of apprenticeship and the implications of the findings forFoundation. The NBSSI and GRATIS training, poor access to financial re- district socio-economic development.20 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • Institutions and stakeholders delivery. The REP provided financial Up-Scaling of BACs and RTFs:supporting the development of and material resources as well as tech- Between 1997 and 2002, the concept nical support to the BACs and the Dis- was scaled up to 11 additional districtsMSEs trict Councils. with increased commitment of the Dis-The concept of decentralized BACs trict Councils including provision ofand RTFs in Ghana was an interven- Outputs of the intervention office space and setting up a Districttion initiated by the Rural Enterprises Implementation Committee (DIC). Pro- Five (5) main steps are adopted in the fessional staff (Business DevelopmentProject (REP) in 1995 to address the process of establishing a BAC and RTF Officer [BDO]) were also seconded toproblem of rural MSEs entrepreneurs in a district. First, a sensitization semi- the BAC, to complement the staff pro-undertaking relatively long distance nar on the Project was organized for vided by NBSSI.travels to seek management solutions the leadership of all District Councils,their business development challenges. Under REP Phase II, activities were fur- followed by a formal expression ofThe first two BACs and RTFs were es- ther scaled up to cover 53 additional interest by the District Council. Thetablished in the Sekyere West (now districts. Project then conducted on-site assess-Mampong Municipal) and Techiman The District Assemblies provided two ment of the preparations made by theDistricts. District based BACs and RTFs staff (an Administrative Assistant and a District Council to contribute towardswere established to provide business BDO) to the BAC and four staff (2 tech- implementation of the Project, throughdevelopment services and to stimulate nicians, General Duty Clerk and Secu- providing office accommodation, fur-the establishment and growth of rural rity person) to the RTFs and paid their niture and equipment; project staff;MSEs, to contribute to employment salaries. The DAs also provided office and some indicative commitment ofcreation, increase incomes of rural space, furniture and an air conditioner budgetary allocation for the operationscommunities and address issues of po- and contributed to operational expens- of the BAC/RTF. At the same time, theverty reduction es in an increasing order from zero in Project liaised with NBSSI and GRA-Target beneficiaries for these initia- year one; 25% in year two; 50% in TIS Foundation to provide staff for year three; 75% in year four and 100%tives were the rural micro and small- the BACs and RTFs respectively. After after wean-off. Furthermore, DAs con-scale entrepreneurs who constitute the these issues were resolved, a District tributed to the construction of the RTFmajor players in rural socio-economic Start-up workshop was organized to workshop and provided utilities to theactivities The other beneficiaries targe- launch the Project in the district. RTF site.ted were the District Councils which The first two district-based pilot BACs The Project provided vehicles, traininghave the overall responsibility for pro- and RTFs operated in the Sekyere funds general operating funds in a de-moting the socio-economic develop- West (now Mampong Municipal) and creasing order from 100% in year one;ment of rural communities.. Techiman districts from 1995 to 1997, 75% in year two; 50% in year threeStakeholders: A variety of stakeholders with direct involvement of the District and 25% in year four. The Project alsocontributed to the implementation of Councils. District Assemblies (DAs) provided office equipment and imple-this innovative intervention. The stake- provided land for the construction of mented capacity development pro-holders and their contributions were as office facilities and a workshop, access grammes, through training, for the fieldfollows: (i) the Ministry of Trade and In- road, as well as utilities, namely water staff.dustry, the Supervising Ministry for the and electricity on the site. NBSSI and the GRATIS FoundationProject, provided policy and strategic The Project management constructed provided staff, paid their salaries anddirection in Project implementation. organized capacity development activ-(ii) The Ministry of Local Government the office building and provided vehi- cles, office equipment, furniture and ities, through practical training, as welland Rural Development - provided as undertaking technical backstoppingstrategic direction in Project imple- funded training activities and operatio- nal expenditures. NBSSI and GRATIS missions to monitor the activities of thementation with particular reference to BACs and RTFs.the district councils; and (iii) the Dis- provided staff for the two units andtrict Councils, which were the centres paid their salaries and other emolu- These outputs were achieved through ments. financial and other resource commit-of Project implementation, and led the ments amounting to US$12,213,819co-ordination of project activities of By March 2011, the BACs and RTFs contributed by the Government ofrelevant stakeholders. Other stakehold- had delivered business development Ghana, the International Fund forers included the National Board for services to a total of 207,048 clients. Agricultural Development (IFAD), theSmall Scale Industries (NBSSI) which These beneficiaries included 171,342 African Development Bank (AfDB)was the key Implementing Agency for clients trained in Community Based and the District Assemblies for the 53the provision of business development & Small Enterprises Skills, Business REP-II districts during 2010; while US$services in the districts; GRATIS Foun- Management & Marketing; 3,519 mas- 208,310 was spent for the REP districtsdation which was the Implementing ter-craftpersons trained; 11,358 ap- during the 2008 operating project year.Agency responsible for the provision of prentices trained; 3,182 graduate ap- These costs included the amountstechnology promotion and apprentice prentices supported with equipment spent on the provision of equipmenttraining; Community and Rural Banks and the sum of GH¢ 2,200,000.00 and furniture; vehicles; staff trainingwhich provided financial resources in- credit funds was disbursed to 5,081 and operational funds; payment of sa-cluding savings mobilization and credit entrepreneurs. laries of project staff.CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 21
    • Collaboration and partnership: Du-ring project implementation, theBACs and RTFs established collabo-ration and partnerships with relevantinstitutions and non-governmental or-ganizations (NGO) in the delivery ofbusiness development services. Colla-borating partners included Sinapi AbaTrust – to provide credit educationand loans to Project clients; Roots andTuber Improvement and MarketingProgramme and CARE International –to manufacture improved equipmentfor agro-processing. The following ins- ©REP2titutions collaborated with the BACsand RTFs through offering Skills andsmall business management trainingservices, The Hunger Project Ghana,Millennium Villages Project, Metho- Donkorkrom RTFdist Development and Relief Servicesand Presbyterian Relief Services and signing; aquaculture (clients trained Tano North, Amansie Central, Offin-Development. Other collaborators 130; adoption 73%) and fish process- so North, Sekyere Afram Plains, andwere the National Vocational and ing (clients trained 286; adoption 71%) Pru districts. Others are Tain, SefwiTechnical Institute which provided along the coastal areas; beekeeping Akontombra, Sissala West, Ellem-certification for apprentices in the va- (clients trained 2895; adoption 61%); belle, Lambushie and Bosome Freho.rious trade areas and the International guinea fowl production (clients trained The Sissala West District AssemblyCenter for Enterprises and Sustainable 1143; adoption 57%) and grass cutter has supported the construction of aDevelopment. rearing (clients trained 3056; adoption structure to be used by an RTF. This 37%) initiative has motivated the ProjectExperiences and lessons management to supply the facility with The RTFs supported rural MSEs withlearned: successes of the fabricating equipment eg agro-pro- workshop equipment.intervention cessing equipment. They also fabricat- National instruments for the promo-Favourable environment for MSE ed farm implements, and small scale tion and growth of MSE: Two impor-establishment and growth: By March mining equipment. As at March 2011, tant instruments to promote the esta-2011, 66 BACs and 21 RTFs had been the RTFs demonstrated improved blishment and to support the growthestablished in 66 municipalities and equipment to 2,013 entrepreneurs of MSE were developed. These are (i)districts across the ten regions of Gha- consisting of 889 males and 1,124 fe- the Establishment of MSE sub-com-na and touched 211,604 beneficiaries males. The equipment demonstrated mittees within the District AssemblyBACs and RTFs are permanent insti- included cassava processing equip- system and (ii) Legislative Instrumenttutional structures at the district level ment such as graters, single screw 1961 which seeks to establish a De-whose services are easily available to press, solar dryer; oil palm process- partment of Trade, Industry and Tou-rural MSE entrepreneurs. The services ing equipment such as digester, single rism within the District Assemblies.provided included Community Based screw press, palm oil expeller, palm Through these instruments, the pro-& Small Enterprises Skills training; fruit stripper; maize threshers and motion of MSE was mainstreamedBusiness Management & Marketing shellers; shea nut and and groundnut within the District Assembly systemtraining; apprentices training; master- cracker About 70% of 3,182 graduate to facilitate local socio-economic de-cratftpersons training business coun- apprentices who benefited from the velopment through integrating fundsseling, facilitation of access to credit, Project’s Equipment Support Scheme into annual budgets of the 66 Districtequipment manufacture; field demon- have set up their own businesses. Assemblies, to support annual workstration of equipment manufactured, Some District Councils directly re- programmes of the BACs and RTFs, .occupation, safety, health and envi- cruited Assistant BDO and national The BACs and RTFs have developedronmental management. service personnel to the BACs. under into the focal points of all issues re-Beneficiaries by July 2010 included REP-I, and Asante Akim South and lating MSE promotion within the dis-agro – processing such as cassava (cli- Mfantseman under REP-II. tricts. As at March 2011, the BACs andents trained 534; adoption 85%) and Spill-over Effect: Districts which were RTFs were effectively collaboratingoil palm (clients trained 270; adoption created from existing Project districts with eleven (11) other MSE support74%) processing; clothing and tex- established their own BACs and are institutions. These included CAREtiles such as batik tie and dye (clients funding activities in order to pro- International, Ghana, The Hungertrained 1794; adoption 45%), kente vide business development services Project-Ghana, Millennium Villagesand smock weaving and fashion de- to their MSEs. These districts include Project, Methodist Development and22 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • Relief Services, Presbyterian Relief Ser- tions of the BACs and RTFs were suc- support from GTZ, the German In-vices and Development, Sinapi Aba cessfully integrated into the District ternational Cooperation to provide aTrust, National Vocational and Tech- Assembly’s development plans and decent work environment for MSEs.nical Institute and International Center annual budgets, thereby establishing Five (5) newly established districts, na-for Enterprises and Sustainable De- ownership of the BACs and RTFs by mely Tano North, Pru, Offinso North,velopment. Collaboration with these the District Councils. Eleven (11) out of Sekyere Afram Plains and Tain, haveMSE support institutions created syner- the 13 REP-I districts established MSE also established BACs and are suppor-gies and leveraging of resources in the Sub-Committees which are now fully ting them.promotion and development of district operational. These districts are: Afigya Continuous investment in the BACsrural enterprises. For example in the Sekyere, Sekyere West, Ejura-Sekyedu- and RTFs by the District Councils: Dis-Asante Akim South District, a total of mase and Offinso and Tano, Berekum, trict Assemblies appreciated the impactGH¢622,278.33 was leveraged by the Jaman, Wenchi and Atebubu. of the activities of the REP-I BACs andBAC for MSE promotion.. In the Asante Akim South, Fanteakwa RTFs on their development agendasIn the context of transformation of and Sefwi Wiawso districts, the MSE and provided the necessary financialthe business environment in the rural Sub Committees formed monitoring resources to support them. By 2008,areas, the BACs and RTFs supported sub-committees to monitor micro and the total support received by these dis-796 businesses to register with the Re- small scale enterprises within their tricts amounted to GH¢249,972.00gistrar General’s Department between districts to identify their development Employment creation: Fifty three (53)April and September 2010. Business concerns and the areas for which the participating districts of REP-II estab-registration assisted the MSEs to forma- District Assembly could provide assis- lished thriving micro enterprises whichlize their business plans and increased tance.. created jobs for the youth in rural com-access to business services and orders The NBSSI and GRATIS Foundation munities. By March 2011, BACs andfrom the District Councils as well as continued to provide support for the RTFs established 25,702 micro andfrom formal public and private sector operations of the BACs and RTFs. Sup- small businesses which created 52,486institutions. port includes the payment of the sala- jobs. These include jobs created di- ries of staff appointed to the two units. rectly by new businesses established asSustainability of business For example, NBSSI pays a net month- well as existing businesses supporteddevelopment services in the ly salary of GH¢8661 to the BAC Head by the BACs and RTFs. Performing jobsdistricts and GHc 316.00 to the driver respecti- results in income generation by both vely while GRATIS Foundation pays a employers and employees and leads toMSEs have easier access to Local Ser- net monthly salary of GH¢1,110 to the marked improvements in sustainablevice Providers to satisfy their training RTF Manager and GHc 1,109.00 to the rural livelihoods.needs (skills training, business manage- RTF Supervisor respectively. They also Challenges: The successes achievedment and marketing). By March 2011, support the training and operational by the BACs and RTFs in managinga total of 182 Local service providers expenses of the BACs and RTFs, with the constraints holding back the suc-collaborated with the BACs and RTFs NBSSI supporting the BAC in Atebubu cessful establishment and operationto deliver business development ser- Amantin District with training funds in of rural MSEs experienced interestingvices. Over 67 percent (122) of the Lo- the amount of GH¢28,029 during the challenges. For example, some ruralcal Service Providers were trained by period 2004 – March 2011. It is impor- District Councils were unable to raisethe BACs and RTFs during the Project tant to note that the Atebubu Amantin enough internal revenue to support de-Phase I and the early part of the current District was weaned off direct support velopment activities. They thus relyiedphase of the Project Phase II. of REP II in 2004. The continued sup- heavily on the ‘District Assembly Com-To obtain the services of the Local Ser- port of the NBSSI and the District As- mon Fund’ provided by the Centralvice Providers, clients were required sembly to the district BAC operations Government quarterly. However theto pay a minimum commitment fee demonstrates sustainability of the ins- release of funds from this source wasof 20% of the total training cost. This titutional mechanisms established at always delayed and thus affected thecommitment enabled the clients to the district level by the Project for MSE timely payment of counterpart fundsplace a high value on the intervention promotion. by some District Councils. Further-received and encouraged them to start more, the MSE sub-committees formedtheir businesses. Commitment fees Self initiatives by the District by the District Councils were mainlywere paid in cash and kind to ensure Councils on the promotion and constituted of elected and/or appoin-flexibility in payment and easier accessto Project services. growth of MSEs ted members of the District Councils. Since district council elections areFifty three (53) participating districts Development – oriented self initiatives conducted every four years, this meansof the REP Phase II established their by some District Councils contributed that changes often occur in the mem-MSE sub-committees by March 2011. to enhancing MSE promotion in their bership of MSE sub-committees. AThe District MSE Sub-Committees pro- districts. The Amansie East, Berekum, change in Central Government, whichvided a formal platform for coordinat- Techiman, Sefwi Wiawso, Aowin Sua- appoints District Chief Executives, alsoing all the programme initiatives and man, Asutifi and Tano South Districts results in changes in the leadership ofactivities on MSE promotion within the established Light Industrial Sites with the District Councils. Consequently,entire district. Furthermore, the opera- 1 1 cedi=0,61$ US new leaders have to undergo a periodCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 23
    • tion include favourable environments for MSE establishment and growth; sustainability of business development services in the districts and employ- ment creation. Based on these success factors we conclude that “Decentralized BACs and RTFs create a favourable environ- ment for the establishment and sustai- ned growth rural MSE” The concept of the BACs and RTFs at the district level is an innovation by the Rural Enterprises Project to pro- ©REP2 mote MSEs in rural communities. The lessons learned and the experiences gained from this project should be replicated by other Projects and pro- Training in Pastries making in Nadowli in the Upper West Region grammes in the promotion and deve- lopment of rural MSEsof learning which often slows down This model of district level BACs andimplementation of Project interven- RTFs could therefore be up-scaled totions.To effectively manage these chal- cover all rural districts in the country REFERENCESlenges, the REP created a programme to increase the establishment of busi- Rural Enterprise Project (REP) -IIto periodically engage and sensitise nesses, job creation and improve the Interim Evaluation Report, Julythe ‘new’ leadership of the District quality of life of the vulnerable rural 2010, Prepared by the IFAD InterimCouncils on relevant issues of MSE de- poor. Evaluation Missionvelopment. This sensitization activity The existing BACs and RTFs shouldwas complemented with field visits to Rural Enterprise Project (REP) Progress also be strengthened to deliver quality Report March 2011, Prepared bythe districts by Project Management improvement services to rural MSEsStaff to engage the leadership of the the Project Co-ordination and to diversify their incomes, create new Management UnitDistrict Councils on relevant MSE de- sources of economic growth and ge-velopment issues. Furthermore, the nerate additional employment oppor- Ghana Living Standards Survey, 2006establishment of the District Sub Com- tunities (including self-employment) in (GLSS 2005), Published by Ghanamittees on MSE Promotion provided a rural areas. Statistical Service, Accra,Ghanaformal institutional structure which en- Building partnerships with relevant Ghana: Growth and Povertysured that the operations of the BACs stakeholders in development pro- Reduction Strategy ( GPRSII),and RTFs were fully integrated into the grammes and project activities which (2006 – 2009), Published byDistrict Council’s Medium Term Deve- work with the BACs and RTFs helps to NATIONAL DEVELOPMENTlopment Plan and Annual Work Plans pool resources together and promotes PLANNING COMMISSION,and Budgets complementarity for sustained MSE November 2005Implications for district socio- promotion and job creation at the dis- trict level.economic development Finally, opportunities should be crea-The MSE sub-sector constitutes the ted for relevant MSE support institu-backbone of private sector led dis- tions at the district level to engage intrict community socio-economic de- policy dialogue on MSE promotion invelopment and a major pillar of the order to develop local solutions andeconomies of the districts. This sector ownerships of MSE in rural areas.plays a critical role in absorbing newentrants into the labour force, particu- Conclusionlarly rural women and the youths. This paper describes the establishmentImplementation of the decentralized and operation of district based BACsBACs and RTFs by REP concept has and RTFs as permanent institutionaldemonstrated that building permanent structures for effectively address-institutional structures at the district ing business development challengeslevel to deliver business development faced by rural MSEs entrepreneurs.services helped to promote the deve- Determinants of success factors usedlopment and growth of rural MSEs and to define the benefits of the interven-job creation.24 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • BOUBACAR KEITA, TRADITIONAL BAKERAn example of economic and socialempowermentAhmed Hady Seydi, ameth_hady@hotmail.comHawa Sow Bousso, hawasow.bousso@promer-sn.orgTraditional bakery is a means of economic and social empowerment in rural areas. The case of Boubacar Keita is a perfectexample: from 2000 to 2011, the monthly turnover of his bakery business increased from 300 000 to 2 400 000 CFA francs.Thanks to assistance from PROMER, he was able to establish a small pioneer rural micro enterprise and in so doing develop realexpertise as a local trainer. ©PROMER 2The traditional bakery business has si- cantly improved their living conditions, In 2000, Boubacar, a 26-year oldgnificantly improved in the rural areas are able to survive decently thanks to unemployed youth like many adoles-in Senegal. After an in-depth analysis their activities. cents in his village, decided to aban-of the situation on the ground, PRO- Boubacar Keita is a classical example: don the dangerous trade in contrabandMER has put in place the appropriate based at Mbourkou village, 15 km west goods and ventured into the bakerysupport mechanisms aimed at building of Tambacounda, eastern Senegal, business to meet the ever-increasingthe capacity of the target groups in the this micro-entrepreneur from the rural demand for the local bread – knownintervention zones. The immediate community of Ndoga Boubacar, PRO- as « tapa-lapa » − by the village andimpact, which was felt instantly, trans- MER intervention zone n° 2, is among the environs.lated into the emergence of micro-en- the group of micro-entrepreneurs in- Meeting PROMER in 2000 was a de-trepreneur bakers who, having signifi- volved in the first phase of the project. cisive moment in making his projectCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 25
    • a reality. PROMER, whose main ob- Boubacar’s business became success- opener for Boubacar. Imbued, withjective is poverty alleviation, works ful thanks to the synergy between the entrepreneurial spirit, he started histowards creating revenue and decent- PROMER, its technical and financial business with the very basic of instal-ly paid jobs, by supporting, among partners and the decentralized depart- lations.others, the traditional bakery business. ments of the State. Apart from enhanced productivity andIn so doing, PROMER enhances agri- From the start, PROMER initiated an improvement of the quality of breadcultural production by encouraging the information and awareness creation produced, the acquisition of a newuse of local cereals in bread making. campaign which enabled it to reach oven enabled Boubacar to drasticallyBoubacar, a very enterprising baker, persons with good business plans as reduce consumption of firewood,was able to benefit from the opportuni- well as entrepreneurs who wanted which fell approximately by 25%. Thisties offered by PROMER. The progress to be beneficiaries of the assistance acquisition was made possible thanksof his business is described below with project. Service providers, radio pro- to easy access to financial services bya focus on the capacity building assis- grammes as well as the direct targeting interconnecting Baboucar to financialtance he benefited from. Then follows technique were all used for that pur- institutions and the decentralized fi-an analysis of his success as well as the pose. Particular emphasis was placed nancial bodies which opened localfuture possibilities available for his en- on the modalities of access to project branches. Besides, the building of theterprise. Particular emphasis is placed assistance. The reaction of the target oven is the concretization of the envi-on the increase of his production and populations was beyond expectations, ronmental protection policy advocatedconcomitantly, his income, but also on because they sensed that through en- by the donors (the Government andthe improvement in his living standards trepreneurship, they can get out of IFAD, the International Fund for Agri-and personal progress. poverty. That was the decisive moment cultural Development). for young Boubacar Keita. His applica- The Crédit Mutuel du Sénégal (CMS),A successful enterprise, thanks tion for assistance was accepted and the Alliance par le Crédit et l’Epargneto synergy that represented the beginning of long pour la Production (ACEP) and the partnership with PROMER, from 2000 Union des Institutions MutualistesPROMER is implementing a capa- to-date. Indeed, PROMER assistedcity building programme with both Communautaires d’Epargne et de Cré- him, through its non-financial service dit (UIMCEC) provided financial assis-non-financial and financial support. providers, to conceive a well preparedWith respect to non-financial sup- tance to Boubacar since the first phase business plan, with development ob- of the project. The accounts he openedport, it identifies and recruits, within jectives and analysis based on realisticthe framework of an empowerment at these institutions enabled him access market data. funding practically at all times. Fromprogramme, service providers whoprovide the initial support, prepare bu- The business plan, which served as a 2000 to 2009, five requests for fundingsiness plans and monitor the activities. dash board to Boubacar and the proj- amounting to 2.500.0000 CFA FrancsThese non-finance service providers ect, facilitated needs identification and were processed. The loans contractedtook over from the company advisers provision of support through training enabled Boubacar not only purchaseinvolved in the first phase of the project in management accounts, training in equipment but also set up working(initially known as all purpose econo- business management modules known capital. Since 2010, Boubacar’s bakerymic facilitators). With respect to non-fi- as GERME (Gérer Mieux son Entre- operates on own funds and the wholenancial support, PROMER partners up prise), technical training and exchange business except the building construc-with decentralized financial systems, visits. What he learnt from these train- tion, was financed with his savings ofwhich gives the beneficiaries the pos- ing programmes radically changed 600.000 CFA Francs.sibility of opening bank accounts, mo- Boubacar’s business perception which The initiative not only involved ma-bilize savings and access funding. The is now geared towards its development nagement consultants (first phase ofstakeholders who benefitted from the and profitability. Furthermore, new PROMER) but also service providersnon-financial and financial support are business perspectives now opened up (second phase of PROMER) on infor-the technical and financial partners of to him: training courses in pastry mak- mation, sensitization, analysis, capaci-PROMER ing (2001), in hygiene and quality pro- ty building and monitoring issues. TheThe decentralized and technical units duction (2002), in bread-making and following were involved : the projectof the State played an important role in the use of local cereals in bread mak- team (for financial and non-financialthe assistance given to Boubacar. Thus, ing (2004 and 2008) naturally enabled support, monitoring, quality control),the Institute of Food Technology (ITA) him increase and diversify his produc- the local and administrative authoritiestrained him on bread-making tech- tion which increased from 80 loaves (for project support), the decentralizedniques using local cereals as well as on of bread in 2000, to 800 in 2011, in financial systems (to facilitate fundinghygiene and how to produce quality addition to his pastry-making business. access), the technical departments ofproducts. It also gave Boubacar some the State – the regional trade office –special flour used in traditional bakery. Five dossiers for funding (for monitoring and follow up), profes-CERER built the improved bakery oven The availability of a local market and sional associations (to protect the inte-for him whilst the Department of Fo- the craze by the inhabitants living in rests of the sector, access to loans andrestry and Water Resources handled the outskirts of the urban settlements sustainability of the activity), the Insti-the environmental protection part of for traditional bread (that the modern tute for Food Techniques (for providingthe project. bakeries cannot satisfy) was an eye baking flour), the CERER for building26 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • in place a corporate body of bakers to participate in dialogue on policies concerning recognition of their inte- rests by the State. In deed, restrictive legislation on production and sale of traditional bread is a real constraint, for it limits their sales area. It is forbid- den of them to sell traditional bread in urban settings. From the beginning, Boubacar played a part in the creation of the Bakers Economic Interest Group in Decem- ber 2004. This has evolved into a pro- fessional organization of which he was ©PROMER 2 the Chairman in 2007. It is PROMER’s partner; and PROMER has given it ins- titutional support and advice, particu- larly in regard to sustainable access to funding. The organization has enabled them resolve problems related to sup-the ovens and the Grands Moulins (for tering for their needs and this is quite ply, training of young bakers, easy ac-establishing a purchasing point and wonderful. » cess to credit through the creation of aproviding access to raw materials). joint security group, but also and es- Youth training in traditional baking, pecially for the defense of the corpo- the various training programmes and rate body for better leverage and totalBoubacar has inspired work experience garnered over the years recognition. It was with this in mindethics in children have developed Boubacar’s unde- that a Techno Forum on traditionalThe fact that his production was re- niable technical abilities. Naturally baking was held on the 4th and 5thgular, coupled with his satisfactory geared towards youth training, Bouba- of June, 2010, at Kaolack, the centresupply to the market and to the sa- car makes use of the new PROMER vi- of Senegal. This manifestation was ini-tisfaction of his clientele, made Bou- sion aimed at fostering the emergence tiated by PROMER, together with thebacar a hero in the eyes of his peers of endogenous trainers in order to po- Professional Organization of Tamba-and gained him fame within the local sition himself. counda Bakers and other partners. Itpopulace. People saw him as a model Thus, since 2009, he has been tende- was about ushering in an improvedof professional and social success and ring for and winning PROMER mar- traditional baking system, lobbying,entrusted their children to him to teach kets and other projects. In this vein, sharing views on the different pro-them the trade. Thanks to his success, he carried out three training sessions cesses involved in bread making andthe job of a baker is now well respec-ted and the fact that it brings regular for PROMER and for the NGO Action oven technologies and to capitalize onincome means it is a promising enter- Group for Global Endogenous Deve- the project experience.prise in the eyes of the villagers. lopment. These training sessions ear- Engaged in the fight for the recogni- ned him close to 5 million CFA Francs. tion and emergence of rural bakeryThe role played by Boubacar in thefight against youth unemployment in Increases in his revenue and the projects, Boubacar and his peers tryhis neighbourhood is therefore ob- change of mentality have had a posi- various initiatives that hinge on thevious. Since he set up his bakery bu- tive impact on his social life. In addi- lives of the rural inhabitants. One cansiness, about twenty youngsters have tion, he and his family have access to cite, among others, the initiatives cara-learnt the trade thanks to him, and medical care, his children go to school van, the forum of rural bakers and theas soon as they finished the training, at Tambacounda and there is more va- techno forum on traditional baking.they have set up their own business. riety in the family feeding, based on Boubacar has also contributed to theAs soon as they are established, they the consumption of local cereal pro- information and sensitization of thehave brought in other youth who will ducts obtained from crops. youth on the interest of the networkundergo similar training. Apart from (radio broadcast, village meetings,the creation of about twenty direct Improved Traditional Baking caravan, trainings, fora), to the gua-jobs, more that 84 indirect jobs were Cognizant of the difficulties encoun- ranteeing of the activity by protectingcreated in the rual community. The tered in the traditional baking sector, the environment and the introductiontestimony of the village head is in itself Boubacar very quickly understood of improved ovens. He has helpedquite eloquent: « Boubacar has incul- the interest of the association to har- create awareness about the impor-cated work ethics among our youth monize efforts. Literate in Pulaar, he tance of hygiene, quality and formali-who as a result have now abandoned is immersed in mass movements and zation.fraudulent activities are not lazy any- understands that there is need to putmore. Right now, a lot of them are ca-CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 27
    • ©PROMER 2A Way of Social Promotion functions as a service platform for fu- fessionalizing the sector, through the ture creations in this sector. acquisition adequate tools and buildingIn all, numerous results have been re- technical capacities, prior to qualitygistered, among which are the acqui- According to Boubacar, « the associa- and hygiene demands.sition of an improved oven, kneading tion is a very important pillar for thetables, equipment for bread produc- defense of the interests of the entire bu- In spite of these acquisitions, the chal-tion (shovels, bowls, kneading troughs, siness corporation for recognition and lenges he has to face in traditional ba-tins, plastic bowls, cake tins, two tiled positioning”. He confesses learning that king remain wholesome. Appropriatetables for bread preparation, 30 and financial management and supply ma- technologies should be introduced to20 1iter cans). It is also worth men- nagement are “two big entry points” to reduce consumption of firewood, thetioning the purchase of three bicycles venture in his business; next comes the only way to respond to the legal res-and of one motorcycle, the training of techniques in the use of inputs (flour, trictions imposed on environmentalmore than 20 apprentices who afte- wood, sugar…) and the construction management and on access to urbanrwards established their own business, of an improved oven. Finally, he learnt markets. Stakeholders in this networkthe production of ‘tapa-lapa’ bread, the importance of quality thanks to the should also be organized to have leve-cakes, rich cereal cakes. More over, training programmes (management of rage in political dialogue. It is the suresttwo plots of land have been bought in accounts, literacy, marketing, sprouts, way to have access to some decision-Tambacounda, one of which is under job creation, etc), exchange visits to making authorities in order to haveconstruction, cattle has been acquired access to information, to make them- Morocco and within the area coveredfor breeding and bank accounts have selves known and to form a group that by the project.been opened with CMS, ACEP and can defend their interests. The success of such an enterpriseUIMCEC. Baboucar counts on PROMER’s sup- has mobilized some 2.5 million CFAToday, confident in himself and in the port to expand his work base, acquire Francs, for the acquisition of tools, thetraining he has received, Boubacar other means of mobility to meet the development of the oven, supply ofaims to make inroads into the town demand. He needs this support to raw materials, etc. Among the variousmarket of Tambacounda. His bakery build supplementary ovens in four sur- difficulties encountered, one can cite,has become a reference micro-enter- rounding villages, to promote energy in the first place, constraints relatingprise and Boubacarr himself has be- saving methods and to protect the en- to trade regulations, especially thosecome, thanks to PROMER’s support, a vironment by the installation of solar forbidding the sale of traditional breadmaster trainer in traditional baking in and gas ovens, to obtain permission for in urban settings. Illiteracy among thethe area covered by the project. He sale of rural products, like bread, in the rural inhabitants has also been a si-secures a lot of markets and aims, pre- cities. He however remains convinced gnificant setback. But the experiment,sently, at the markets of Bouroukhou that with the knowledge that he has rich in information, has shown thatand those of the surrounding villages acquired to venture and succeed, he traditional baking is a means of econo-of Tambacounda. In 2011, he benefited “can draw from his own reserves and mic and social elevation for the ruralfrom a pilot programme in gas ovens progress alone, even without external community. Its development howeverto strengthen his activity and ensure it support”. necessitates capacity building and pro-28 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK
    • RESOURCESCapitalisation of Experiences develop their own experience capitali-of Development Projects et zation and exchange plans. While we agree that it is inspired by practicesProgrammes: The Guide that have already been tested in otherThis guide is addressed to personnel similar IFAD-supported projects in La-of IFAD projects and programmes in tin America and Asia, we observe thatWest and Central Africa. It provides an it seeks to maintain a certain specificityapproach that will assist them in the in relation to sharing habits and prac-implementation of an internal reflec- tices which are typically cultural or duetion, experience and knowledge sha- to poverty (oral character, illiteracy),ring process. and imbalanced access to a certainThe document and some of its parti- communication environment.cipatory media could prove useful to Finally, it is addressed to all projectscooperating institutions and IFAD of- and programmes which share the vi-ficials when they engage in reflection, sion whereby sustainable developmentduring supervision missions and/or is a transformation process which takesthose undertaken to prepare the Work place because different actors inter- Available onlinePlan and Annual Budget (WPAB). vene. This means that knowledge has http://www.fidafrique.net/article2380.htmlIt perfectly fits into the strategy of IFA- no value unless it is shared; knowledge or at WARFDAfrica’s network consisting in devi- can be acquired only through expe- Tel. (221) 33 865 00 60sing an approach for IFAD projects and riential learning, regardless of whether Fax (221) 33 860 66 89their partners, in order to help them to the experience is profitable or not. Email: secretary@frao.info Dakar - Senegal)IFAD-Projects Regional Forum in Western and Central Africa - Libreville, 14-17/11/2011The 6th IFAD Regional Forum (previously “Implementation Workshop”) will take place from 14th to 17th of November 2011,in Libreville, Gabon. The forum is being organized and financed jointly with the Ministry of Agriculture, Livestock, Fisheriesand Rural Development of the Republic of Gabon.The central theme of the forum is “Making Small Farms in West and Central Africa More Productive and Profitable”. Thetheme captures the dynamic approach to rural development, and expresses the broad range of contexts and issues that theforum will focus on from the challenges communities are facing in meeting basic food security needs, to helping rural commu-nities engage more profitably with market opportunities.http://www.fidafrique.net/rubrique799.html Read more Women can make it with the right support Market gardening in Avlékété: A response to food insecurity http://www.fidafrique.net/article2 323.html http://www.fidafrique.net/article2829.html Enoc, a peasant crop farmer, diversifies his agric business From petty crime to vegetable plots: Niger Delta’s troubled youths learn http://www.fidafrique.net/article2331.html dry-season farming http://www.fidafrique.net/article2850.html REP Changes the Face of Gari Processing in North Tongu District Agricultural Support Board engages young people in Aguie http://www.fidafrique.net/article2321.html http://www.fidafrique.net/article2848.html Capitalization experiences and institutional innovation in West Africa Micro-livestock: How the cane rat is improving livelihoods in Dasso http://www.fidafrique.net/article2757.html http://www.fidafrique.net/article2851.html FAO: An online Crop calendar Seeding ideas: EU Food Facility Steering Committee Meeting http://www.fidafrique.net/article2751.html http://www.fidafrique.net/article2958.html GHANA - Feasibility study on the use of cassava wastes to produce energy IFAD ESA Regional Implementation Workshop 2011 http://www.fidafrique.net/article2769.html http://www.fidafrique.net/article2997.html Understanding and using market information, by Andrew W. Shepherd 6th IFAD Regional Forum in West and Central Africa (FAO - 2011) http://www.fidafrique.net/article843.html http://www.fidafrique.net/rubrique799.html Saloum Metal solders bright futures for youth Video - FIARA, a showcase for farmers innovations (13min video) http://www.fidafrique.net/article2847.html http://www.fidafrique.net/article2467.html Benin’s Working Farm School: A tool for engaging young people and redu- cing rural poverty http://www.fidafrique.net/article2846.htmlCAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK • Feed Africa 29
    • Visit ww w. fidafriqu e.net/?la ng=en http://www.facebook.com/fidafrique http://twitter.com/fidafrique http://fidafrique.blogspot.com http://www.youtube.com/fidafrique30 Feed Africa • CAPITALIZATION NOTES OF THE FIDAfrique - IFADAfrica NETWORK