Projects in value chain financing Projects in banking for SME and micro finance
Projects in capacity building for banks and MFIsProjects in micro and SME finance post conflict
VALUE CHAIN FINANCING PROJECTS
In the rapidly changing global economy, value chain development often requires development of alternative financing instruments at several levels of the value chain, from suppliers to producers to investment financing for processors and exporters. Taking a “value chain based” approach to enterprise development and financing has become an important tool in reaching small producers as suppliers to larger businesses, reducing poverty and reinserting youth and ex combatants into the post conflict economy.
Agricultural Value Chain Financing for Ivory Coast Economic Recovery Project
During May through October, 2006, Duggleby and Associates, Inc. assisted development of the project design for the World Bank Cote d'Ivoire Youth Reinsertion Program. The program is designed to expand the Ivoirian economy and generate short and medium term employment for many unemployed youth in value chains with potential for extension or expansion, following the end of the civil war. Working with various stakeholders in the private sector, Government and para statals, the firm conducted “deep dive” analysis of three agricultural value chains, assessing unmet needs for financing and developing responsive products that could be extended via one or more banks. The firm then assisted design of a three part project that will address increased production and value added in several agricultural based value chains, and generate youth employment at three levels: as agricultural producers in associations, as employees of value added SMES in target value chains and as owner/operators of small enterprises in sectors where the investment is going. The firm developed the financing component, including credit products and lending partnerships to finance economic activities at each level.
Agricultural Value Chain Financing for Millennium Challenge Compact in Ghana
During April-May, 2006, the firm president assisted the Millennium Challenge Corporation (MCC) with design of a $547 million project to be implemented in Ghana to increase production, processing and exports for value added agricultural products in 23 Districts in Ghana, with emphasis on 15 where farmers and processors are greatly underserved with production resources, credit and access to markets. The project will assist further expansion of the agric sector through investment in vital infrastructure along several market chains, technical assistance to farmer associations in introduction of new or expansion of existing crops and financing of the working capital and investment needs of producers and input suppliers.
Working with a team of agronomists, Ms, Duggleby assisted the assessment of a number of value chains, analyzing inputs supply lines, production, processing, marketing and domestic and export market opportunities and constraints, and gaps in the supply chains where finance was not available. In response to field findings, she designed two credit products to be extended through commercial banks: a production credit facility enabling farmers in producer associations to secure timely and appropriate credit for production of export and food cash crops, and a supplier credit facility enabling wholesalers to extend working capital credit to retailers willing to locate or expand in the underserved rural districts in Ghana.
East Africa Business Investment Fund (2003 - 2005)
Duggleby and Associates, Inc. assisted the development and capitalization of a private investment fund designed to make direct equity investments in value added rural small scale enterprises in Tanzania, Kenya and Uganda. The firm assisted feasibility analysis, business plan development and capital raising, for a fund that expects to place up to $l5 million in capital investments in predominately agricultural based SMEs, which add value to natural resources and will generate employment and productive assets in less invested areas of the target countries. The approach has been to provide seed capital and management assistance in business development/expansion with the objective of helping small businesses grow into community based industries serving national and regional markets. Some enterprises assisted have both regional and international export potential and could pull small farmers through to larger markets through fund assisted value chain development.
USAID Growing Micro Enterprise Development Project (India, 2004)
During November,2004 to January, 2005, Ms. Joan Hall of Duggleby and Associates assisted the ACDI-VOCA AMAPS BDS Team in conducting the financial markets assessment for agribusinesses in India under the GMED project. She held in depth discussions with individual entrepreneurs in two agric value chains (organic vegetables and fruits and poultry) to determine needs for and access to financing, and with commercial and development bankers and capital markets institutions to identify existing products, terms and appetite to lend to growing supply and marketing businesses. She identified new or adapted financial products needed for expansion and present constraints to addressing those needs in the formal financial sector. She then assisted the team in developing product recommendations.
USAID Eritrea Rural Enterprise Investment Project (2002)
During 2002, Ms. Duggleby served as the Business Finance Specialist for the USAID/Eritrea Rural Enterprise Investment Project (REIP) Assessment, and used her findings as basis for helping USAID to craft its future strategy for supporting the development and financing of value added agriculture-related SMEs in this post conflict market. She assisted the Mission in assessing the performance of the then running (REIP), including a bank line of credit for SMEs and a Rural Enterprise Unit providing BDS to assist rural business recovery following the recent war with Ethiopia. Ms Duggleby assisted assessment of the competitiveness of export potential private enterprises in six sectors, as well as REIP portfolio quality and bank capacity to lend. She made recommendations for future USAID support for credit facilities designed to serve domestic and export potential SMEs on a more market driven basis.