USAID West Africa Trade Hub           Roger Brou     Business & Finance Director             March 2013
West Africa Trade HubIn 21 countries, with UEMOA, ECOWAS, & CEMAC             Offices in Accra, Dakar, & Arlington;       ...
Value Chain Approach Informs TradePolicy & Infrastructure Improvements
People, Planet and Profit:The triple bottom line – a marketdriven approach to development
The ProblemIn West Africa, 75% of the population live on  less than US$2 per day.               The Question IS:    How to...
•   Traditional crop•   Millions rural           Production to    women                         Market•   Weeks of work   ...
The Global Shea Alliance annual conference connects anindustry, leveraging resources to drive businessopportunities
Shea 2013GSA conference offers training and opportunity on:•Access to Finance•Transportation•Cosmetic formulation•Packagin...
Exporters’ #1 Hurdle: Access to Competitive Financing              Partnering with international financial institutions,  ...
Financial Services ApproachBased on Value Chain approach the Trade Hub:Facilitates dialogue with regulatory authoritiesL...
Performance-based FinancialService Providers   Business Plans   Investment    Promotion   Financial Structuring   Nego...
MSMEs Type of Financial Needs   Short-Term (1 year max)    –   Procurement financing    –   Working Capital Financing    ...
Long Term Financing   EBID-USAID-ACA MoU   BOAD-USAID-ACA MoU   Private Equity Funds for medium/ long-term   Strategic...
MSMEs Sources of Financing1.   Equity Financing2.   Debt Financing3.   Trade Financing4.   Government/ NGOs grants
Equity Finance Sources   Triodos   Octave Company   Nova Capital   Phoenix Capital
Debt and Trade Finance Sources   MFIs   Commercial banks   Social Impact Investment Funds    –   Root Capital          ...
Find out more       www.watradehub.com        www.globalshea.com    Subscribe to Tradewinds,        Monthly e-newsletter: ...
The USAID West Africa Trade Hub
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The USAID West Africa Trade Hub

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The USAID West Africa Trade Hub

  1. 1. USAID West Africa Trade Hub Roger Brou Business & Finance Director March 2013
  2. 2. West Africa Trade HubIn 21 countries, with UEMOA, ECOWAS, & CEMAC Offices in Accra, Dakar, & Arlington; Virtual team in Ouaga, Abuja, & 18 ARCs •+/-300 million inhabitants •GDP est. $500 billion USD
  3. 3. Value Chain Approach Informs TradePolicy & Infrastructure Improvements
  4. 4. People, Planet and Profit:The triple bottom line – a marketdriven approach to development
  5. 5. The ProblemIn West Africa, 75% of the population live on less than US$2 per day. The Question IS: How to create jobs and lift incomes in a sustainable fashion?
  6. 6. • Traditional crop• Millions rural Production to women Market• Weeks of work DISCONNECTED…• April to September• Kernel quality Limited defined transparency!• Price takers• Commence selling • < 10 major buyers @ < $150 per ton • Export, process & kernel• 1,000s of nut formulate traders • Erratic price @ $250 -• Consolidate & $800 per ton kernel finance • Quality variation high• Commence selling • Zero traceability @ > $250 per ton kernel• Quality deteriorates• Limited value added
  7. 7. The Global Shea Alliance annual conference connects anindustry, leveraging resources to drive businessopportunities
  8. 8. Shea 2013GSA conference offers training and opportunity on:•Access to Finance•Transportation•Cosmetic formulation•PackagingBusiness to BusinessConference and presentationsExhibitionField trips
  9. 9. Exporters’ #1 Hurdle: Access to Competitive Financing Partnering with international financial institutions, regional banks and investors to improve lending and investing opportunities for exporters. Product & Process Development: Innovative approaches to trade finance for commercial banks. Promoting Best Practices and Training: Bringing banks and companies together to develop relationships that are mutually beneficial. Hosting annual Financing Trade Regional Conference. Technical Assistance: Helping bankers develop products/processes. Facilitating exporters to apply for loans, develop financial projections and business plans.
  10. 10. Financial Services ApproachBased on Value Chain approach the Trade Hub:Facilitates dialogue with regulatory authoritiesLeverages partnerships: Commercial Banks Multi- and Bi-lateral Institutions Investors BuyersProvides industry-specific financial trainingAssists with company-specific technical needs Trade Hub LCs, Purchase Orders Commercial ERC Banks New products & services Increased Jobs and Wealth Creation Government & Multi-lateral Investors 10 Institutions
  11. 11. Performance-based FinancialService Providers Business Plans Investment Promotion Financial Structuring Negotiations Management Coaching Product costing and Pricing
  12. 12. MSMEs Type of Financial Needs Short-Term (1 year max) – Procurement financing – Working Capital Financing – Trade Financing/ Term loan Medium to Long-Term (more than 1 year) – CAPEX financing for expansion, acquisition of new equipment (leasing or direct purchase) or new factory construction
  13. 13. Long Term Financing EBID-USAID-ACA MoU BOAD-USAID-ACA MoU Private Equity Funds for medium/ long-term Strategic partnership (JV, M&A, etc)
  14. 14. MSMEs Sources of Financing1. Equity Financing2. Debt Financing3. Trade Financing4. Government/ NGOs grants
  15. 15. Equity Finance Sources Triodos Octave Company Nova Capital Phoenix Capital
  16. 16. Debt and Trade Finance Sources MFIs Commercial banks Social Impact Investment Funds – Root Capital www.rootcapital.org – Grassroot Business Funds www.gbfund.org – Acumen Funds www.acumenfund.org – ResponsAbility Funds www.responsAbility.com
  17. 17. Find out more www.watradehub.com www.globalshea.com Subscribe to Tradewinds, Monthly e-newsletter: info@watradehub.comTHANK YOU

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