CGS Collateral Control Company Limited is a collateral management company registered in Tanzania that provides full collateral management services such as monitoring, inspection, and loan facilitation. The document discusses developing a pan-African collateral management company, including outlining the company structure with separate departments, available resources, targeted strategic investors, and implementation process. A collateral management company acts as an agent to secure physical collateral for lenders like banks to ensure collateral value is protected and lender requirements are met.

2. CGS COLLATERAL CONTROL COMPANY LIMITED
is a Collateral Management company registered and
operating in Tanzania with a view of operating in
various countries in Africa.
Discovering CGS Collateral
 Full Collateral Management Services
 Monitoring Services
 Stock Inspection Services
 General Inspection Services
• Discharge Survey
• Load Survey
• Quality Control Services
 Loan Facilities Arrangements and
Placement
 Training on Structured Trade and
Commodity Finance
 Consultancy Services
WE SECURE THE ENTIRE TRANSACTION FROM END TO END THROUGH

3. INTRODUCTION
WHY COLLATERAL MANAGEMENT
STRUCTURES AND SYSTEMS
AVAILABILITY OF RESOURCES
IMPLEMENTATION
CONCLUSION
DEVELOPMENT OF
PAN AFRICAN
COLLATERAL
MANAGEMENT
COMPANY

4. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
A collateral management company’s primary business is to secure physical collateral for
lenders.
they act as agent for banks and other providers of trade credit
 in securing the physical collateral for such credit,
 by ensuring that the value of collateral is secured and comply with the
lender’s requirements.

5. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 Collateral management allows input providers to position fertilizers near to farming areas,
so that it can be supplied promptly when needed
 Collateral management gives rooms to
such commodity traders to access bank
financing using the same commodities
as security
 Collateral management allows
importers to extend low-interest-rate
international loans deep into the
country, to finance goods awaiting
distribution

6. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 Improved profitability by the banks and traders due to reduced risk as a result of monitoring
and controls instituted by collateral management
 Improved monitoring on the part of the trader due to involvement of a third party in their
operations
 A tool that gives banks opportunity to finance transactions that they would normally shy
away from
 Gives the banks opportunity to monitor their loan portfolio through regular reports and
updates
 Collateral Management forms a backbone of a successful commodity exchange

7. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 Collateral management has been used by banks to lend money to clients they would have
shied away from. This is due to the fact that collateral management gives the bank the
highly needed close monitoring and control of their clients’ operation.
 Increased size of loans per clients as
limits are dependent on the size of the
business handled by the client.
 Reduce Capital required by the
commercial banks as commodity can
be considered a tangible security when
it is under the control of a third party.

8. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 The only and the most efficient tool used by banks for transactional lending
 Collateral management enables
processors to buy sufficient crop after
the harvest to keep their processing
equipment operating at full capacity
during the whole year
 Collateral management permits farmers
to store their crop and get a loan to
meet immediate cash needs, rather
than being forced by cash needs to sell
even when prices are unfavorable

9. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
VARIOUS DEPRTMENTS SEPARATED BY FIREWALLS
! PROPOSED COMPANY
STRUCTURE
Marketing
Department
Credit Support
Department
Operations
Department
Internal Audit
Department
Front Office Back Office Technical Board

10. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
Marketing Department
Front Office
►NEGOTIATE WITH THE CLIENTS I.E
TRADERS
►ANALYSE THE REQUIREMENTS
►RECOMMEND THE CLIENT TO THE
CREDIT OFFICE

11. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
Credit Support
Back Office
►RECEIVES RECOMMENDED CLIENTS FROM
THE FRONT OFFICE
►ANALYSE THE CLIENT’S TRANSACTIONS
FOCUSING ON RISK ASSESSMENT AND
CONTROL PROCEDURES
►APPROVE THE TRANSACTION AS A
COMMITTEE
►PREPARE MANUALS AND OPERATIONAL TO
THE OPERATIONS DEPARTMENT
►REPORT TO THE FINANCING BANK AND THE
BORROWER REGURLARLY

12. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
Operations Department
Technical
►RECEIVES INSTRUCTIONS FROM THE
CREDIT SUPPORT DEPARTMENT
►EXECUTE AS PER INSTRUCTIONS AND
REPORT TO THE CSM

13. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
Internal Audit Department
Board
►CONDUCT PERIODIC AUDITS
 Execution of instructions
 Implementation of policies and
procedures
 Accuracy and correctness of the
reporting
►REPORT TO THE MANAGEMENT AND
THE BOARD

14. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
AVAILABLE
►HUMAN RESOURCES
 Existing Collateral Management Companies
 Training through existing institution
►TECHNOLOGY
 Existing technology through the existing
collateral management companies
 Opportunity to develop tailor made solution
for the proposed company exist

15. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
AVAILABLE
►EQUIPMENT
 Few labouratories
NEEDED

16. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 Commercial banks as natural users of the
service
 Development organisation- playing their key
role of developing trade across the continent
 Investment banks – in line with their core
business of investing for community
development
 Microfinance Banks – opportunity to save SME’s
and ME under one roof
 Social security organisations – as an
investments opportunity
 Traders and Venture Capital Organisations
TARGETED STRATEGIC INVESTORS

17. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
 Commercial banks as natural users of the
service
 Development organisation- playing their key
role of developing trade across the continent
 Investment banks – in line with their core
business of investing for community
development
 Microfinance Banks – opportunity to save SME’s
and ME under one roof
 Social security organisations – as an
investments opportunity
 Traders and Venture Capital Organisations
TARGETED STRATEGIC INVESTORS

18. IMPLEMENTATION
PROPOSED PROCESS FLOW…
• Design the organisation Structure
• Negotiate with prospect investors
• Registration of the company
• Recommend members of the Board of Directors
• Recommend top management team to the board of
directors
• Oversee execution of the first transactions to ensure
smooth hand over to the management team.
FORMATION OF STEETING COMMITTEE WHICH WILL :-

19. DEVELOPMENT OF PAN AFRICAN
COLLATERAL MANAGEMENT COMPANY
While warehouse receipts have been used since
Mesopotamian civilization, in 1830 and 1850’s
CHICAGO emerged as commodity trading floor using
tradable warehouse receipts.
IT IS NOT A NEW
CONCEPT…..
Collateral Management act as a reliable delivery
system for a commodity exchange.
ADDED
ADVANTAGE….
FORMATION OF THE PAN AFRICAN COLLATERAL MANAGEMENT IS
ESSENTIAL FOR THE GROWTH OF ECONOMIES IN AFRICA.
LET US DO IT NOW!
Today the largest collateral managers throughout
Latin America and in Turkey are owned by banks.

20. Email: info@cgscollateral.co.tz
P O Box 19771, Dar es Salaam
Tel: +255 22 2400533
+255 22 2400823
Fax: +255 22 2400528
www.cgscollateral.co.tz

21. www.cgscollateral.co.tz
CGS COLLATERAL
Email: info@cgscollateral.co.tz
P O Box 19771, Dar es Salaam
Tel: +255 22 2400533
+255 22 2400823
Fax: +255 22 2400528