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Samoa Agritourism Policy Setting Workshop 2016: Ian Buck (ADB) - Regional perspective on opportunities/ experiences to support Agritourism development and investment


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Samoa Agritourism Policy Setting Worskhop 2016
Linking Agriculture and Tourism through Policy setting:
Strengthening the local agrifood sector and promoting agritourism

Workshop organised by the Government of Samoa and CTA
in collaboration with PIPSO

Apia, Samoa, 13-16 December 2016

Published in: Government & Nonprofit
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Samoa Agritourism Policy Setting Workshop 2016: Ian Buck (ADB) - Regional perspective on opportunities/ experiences to support Agritourism development and investment

  1. 1. SABS Samoa AgriBusiness Support Project SAMOA AGRITOURISM POLICY SETTING FORUM Panel 1 “Panel Forum: Regional perspective on opportunities/experiences to support Agritourism development and investment” Samoa Conference Centre, Apia Samoa 13th December 2016 Presented by: Ian M. Buck B.Ag.Sc.,Grad.Dip.Ag.Econ.,Dip.FS(FP).,FAICD.,FAIM. Facility Manager Samoa AgriBusiness Support Project Supported by the Asian Development Bank and The Government of Samoa Promoting Agribusiness & Economic Development 1
  2. 2. The Samoa Agribusiness Support Project SABS What is SABS? • SABS is a pilot project – first of its specific type to be undertaken – Samoa first country to trial the concept; • Established from an initiative of the Asian Development Bank and the Government of Samoa to stimulate agriculture’s role in economic growth and poverty reduction in Samoa. • Rational - to revitalise agriculture & agribusiness to increase the sectors contribution to the economy & GDP through import replacement and export, which aligns with the Governments policy framework and the Strategy for the Development of Samoa. 2
  3. 3. Key Features • SABS is a 7 year Private Sector Development project designed to stimulate development of the agribusiness sector in Samoa - Has a commercial focus; • Provides a combination of financial, technical and managerial support to agribusiness enterprises; • Aims to reverse the decline of the agriculture and agribusiness industries, increase exports, contribute to import substitution and create employment opportunities in rural areas through the provision of; 1. Financial Support to participating agribusinesses, via loans from the participating Commercial Banks in Samoa ;  Access to cost effective interest rates and loan terms has been a major barrier to agribusinesses; 2. Business Support Services to participating agribusiness entities through FM & PMU;  Capacity building to improve weak links in the business operation or improved access to markets etc • Incorporates a Gender Action Plan – to encourage increased participation of women in business; • Incorporates M & E to measure outputs against objectives; SABS 3
  4. 4. • The key players: Samoa Agribusiness Support Project 4 SABS Project Management FM & PMU Commercial Agribusiness Commercial Banks
  5. 5. • ADB provided a Grant to the Government of Samoa - MOF is the EA; • Government of Samoa on-lent the Grant to Participating Financial Intermediaries (PFI or Banks) via Subsidiary Financing Agreement (SFA) between Government of Samoa and each PFI; • Each PFI holds funds in a designated project account which are then proportionally allocated to Subloan A & Subloan B components; Subloan A = Guaranteed Cash Collateral = Security – ALL approved partners; Subloan B = Repayable Supplemental Seed Capital Loan = Top up Equity – SOME; SABS Funding Arrangement
  6. 6. Financial Support Services; • All prospective agribusiness project partners must meet SABS Eligibility Criteria – (Financial & Environmental) to qualify for support; • FM works with partner agribusiness to develop business plan and prepares finance application for submission to bank; • Bank provides the commercial loan - Projects must meet appropriate credit and other risk-related criteria as determined and applied by each commercial bank; • Must use the finance for a “qualified project” in accordance with the conditions detailed in the loan agreement with each bank; • Very Important: All initial discussions with partners held as “Strictly Private & Confidential” & as “Commercial in Confidence”; Trust & Confidence. The SABS Support Services
  7. 7. Business Support Services; • Is about capacity building - Identify the weak links in the business operation – Business Plan; • Tailor the support to the business – Is not a “one size fits all”; • Engage the appropriate specialists - Precise Terms of Reference for specific support required – Indefinite Delivery Contracts; • Be prepared for the unexpected – “the known unknowns” • When working in the commercial/private sector you need quick response times – “Time is money”! • SABS role is to facilitate improvement in agri-business performance and meet target market product standards. The SABS Support Services 7
  8. 8. • Examples of business support services; – Strategic – Tailored Business Planning & Financial management; – Marketing – Market access; labelling; may include joint venture arrangements; – Agro-processing - Food technology; Industrial Chemist; Food Production Engineering services; – Quality Control – Hygiene; Food Safety; Certification (Organic,HACCPS,ISO etc); – Technology – Agriculture, Agribusiness, Business partnerships; • Expenses shared by SABS project and agribusiness project partner on an 80:20 parallel cost sharing basis – Business Support Services Agreement. • Agribusinesses also supported by a small Agribusiness Innovation Fund on a 75:25 parallel cost sharing basis; – Small short term expenditures relating to agribusiness expansion or operation BSS (continued) 8
  9. 9. » Project Design - 2012-14; » Project Inception - September/October 2014; » 2yr Project Implementation - end October 2014 – Process, Procedures & Presentations - build a prospect pipeline; » Official Launch May 2015; » May - November 2015 focus on Financial Support Services. • 9 business plans and finance applications completed & submitted end yr 1. • All approved; 7 drawn down, 2 on hold; • Finance Terms 7 yrs & Interest rate 8.5 – 9%. At the time common agri loan rates (13.5 – 14.5% with 12 mth terms) » 2016 - focus on provision of Business Support Services, including to date; • Accounting and business management services; • Organic certification; Industrial chemist; Food safety training & butchery training; Food production engineer; packaging design support. Progress to date 9
  10. 10. Thank You (Fa’afetai) SABS Contact Details: Facility Manager Level 3 I Ministry of Finance Central Bank Building I Apia I Samoa E: ianb T: 685 34353 or M: 685 7749478 SABS Samoa AgriBusiness Support Project Promoting Agribusiness & Economic Development 10