Centre for the Development of Enterprise: Business Development - - PowerPoint PPT Presentation

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Centre for the Development of Enterprise: Business Development Services for the ACP Private Sector

23/ 09/ 2009 CDE - the institution 2

CDE – Centre for the Development of Enterprise

An insti-

tution of the ACP Group and the EU – under Cotonou Agreement

Supports the sustainable development of

the ACP private sector

Financed by the European Development

Fund (EDF)

CDE in brief

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The CDE: key figures

Total number of interventions undertaken= 1 5 .7 3 8 Total number requests received= ±2 1 .5 0 0 Total number entreprises assisted = ±1 1 .6 0 0 Total number of jobs created= ±1 5 .0 0 0 New investments generated or linked to CDE interventions = € 2 .3 1 0 m illions Professional meetings, thematic workshops

• rganized by or linked to CDE = 5 1 7

Number of ACP participants= ±8 .9 0 0 Number of European participants= ±2 .9 6 0

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CDE Achievements 5

• Geographical distribution

Achievements over the last 10 years

4,000 ACP enterprises have been assisted by CDE through some 6,500 interventions

• Sectoral distribution

25% 40% 18% 9% 8%

Agro-Industry Construction, Wood, Metal Leather and Textile Tourism and Services Others

9% 19% 20% 12% 25% 15%

West Africa Central Africa Eastern Africa Southern Africa Caribbean Pacific

Beneficiaries and approaches 6

Eligible Beneficiaries

Private Sector enterprises

• Enterprises in the creation, extension, diversification or

reorganization phase in the ACP countries

• Enterprises must have promising prospects for financial and

economic viability as well as a positive development impact

Private Sector Intermediary

Organizations

• Professional associations, federations, technical centres,

investment promotion bodies, etc

Service Providers

• ACP consultants and consulting firms

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Through Programmes

The CDE intervenes…

Increasingly, CDE interventions are being undertaken within the framework of

Programmes (2/3 of the budget)

Cluster approach – grouped assistance In response to individual requests and prospective investors

Through Ad Hoc Assistance

Priority sectors: manufacturing agro-industry and commercial farming fisheries forestry mining and construction Tourism Trade transport and other related services

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• Private sector SMEs legally established in an ACP

country

• Net assets of at least 80.000 €
• Maximum net assets : 10 m €
• At least five employees
• If new enterprise : same amounts of investments,

turnover and jobs forecast

• Commitment to contribute at least one-third of the

expenditures eligible for assistance

• Compliance with international codes of good

conduct (working conditions and environmental impact)

Key eligibility criteria

CDE Support during…

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Rationale of Program m e approach

• Purpose:
• Identify and select sectors and activities with highest potential for social and

economic development in ACP countries

• Benefits:

Better knowledge of selected sectors and transversal activities Lower average cost per intervention, hence more SMEs can be assisted Improved ability to promote inter-enterprise partnerships Better complementarity and coherence with the priorities of other development actors Prompt and effective response to requests for assistance Higher efficiency by grouped assistance More visibility of CDE-Pro€Invest actors in the field

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Example of CDE programmes ICT – Information and Communication Technologies Cotton & textile Sustainable Forestry & Timber Processing Promotion of Aquaculture Maintenance in the Infrastructure Sector Sector Programmes Cross-cutting Programmes Competitiveness Enhancement

Context

S ector Programmes

Wood Sector

• SFM is based on environmentally, socially

beneficial and economically viable management

• f forests for present and future generations
• The world market for timber and wood products

is more and more geared towards certified products from SFM

• Target countries have significant sustainable

forest resources

Global Objective

• Develop Sustainable Forest Management (SFM),

downstream processing and export

Specific Objectives

• Increase Sustainable Forest Management
• Increase production and marketing of timber

from SFM, including promotion of certification

• Improve productivity and downstream

processing of value-added products

• Promote regional trade and cooperation;

increase export capacity

Sustainable Forest Managem ent SFM and Dow nstream Processing

Continental Aquaculture

Context

S ector Programmes

Fish Sector

The fisheries of the African continent provide vital contributions to the nutrition and food of 200 million people, and involve 10 million persons

Global Objective

Increase the industrial and semi- industrial fish farming production of the continental African countries.

Specific Objectives

• Increase fish farming production by

private companies

• Increase and improve fish food

processing

• Create a national and regional network of

aquaculture expertise

• Promote local, regional and international

trade

Subcontracting and Maintenance in the I nfrastructure Sector

Context

S ector Programmes

Infrastructure Sector: maintenance

• Roads are essential for economic development
• Lack of maintenance has high cost
• Transfer of road building and management to

private agencies

• Need of capacity-building to SME contractors

Global Objective

Contribute to the improvement and maintenance

• f the African road network through involvement
• f SMEs

Specific Objectives

• Increase capacity of SMEs specialised in road

building and maintenance

• Promote sub-contracting and partnership with

EU companies

• Support professional organisations
• Develop capacity of engineering firms

COOPERATI ON W I TH DEVELOPMENT FI NANCE I NSTI TUTI ONS ( DFI s)

• Regular working relationships with relevant DFIs to seek

complementarity and to achieve maximum impact with pre- investment assistance, i.e. to mobilise investment funding.

• CDE’s technical or management assistance for project

implementation and initial operating phase is a useful complement to DFI financing.

• PRACTI CAL EFFECTS

CDE as interface between promoters and DFIs:

• facilitates access to relevant finance sources
• helps to reduce evaluation cost of DFIs
• provides management and technical assistance to projects financed

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CDE and Venture Capital Funds (VCFs)

• Early involvement in the “pioneer phase” of VCFs in Africa;
• Recognition of equity finance gap typical for SMEs (limited

scope for FDI and joint ventures, structural lack of local private equity, unacceptable debt-equity ratios);

• Need for institutional equity combined with enterprise

support services;

• VCF managers in Africa must often provide “extended

functions” : contribute to business plans and investment studies; assist with technical and market assessment; help locate technical and management expertise; assist in obtaining additional finance; advise/ monitor ongoing investee companies; assist for appropriate accounting and reporting systems.

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CDE’s ASSISTANCE TO Venture Capital Funds

Agreem ents concluded w ith VCFs

• The initial agreements signed in January 2008 with I &P –which invests

particularly in West and Central Africa– and DEVCAP in the Caribbean, were followed by those concluded at the end of 2008 for four African regions as well as for the Pacific:

• Southern Credit Corporation in Kenya, for East Africa,
• I ndustrial Credit Cooperation ( I CC) in Zambia, for Southern Africa (SADC),
• Cauris in Togo, for West African UEMOA countries,
• Makeda Fund in Nigeria, for West African ECOWAS countries,
• Kula Fund in Mauritius, dealing with the Pacific area.

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Private Sector Development Programmes (PSDP)

• W HAT?

PSDP, funded either by ACP countries’ own resources, by European Development Fund (EDF) resources, or by other donors, have sectoral and thematic priorities set by a national or regional committee which includes representatives of both public and private sectors.

• Tailor-made formulation and

Public-Private dialogue

• CDE as executing agency
• Focus on enterprise level
• Exam ples in Sub-

Saharan Africa:

• Democratic Republic
• f Congo (Belgian

trust fund) – EDF national funding under negotiations

• Republic of Gabon –

Gabon own budget

• Côte d’Ivoire – own

budget

• UEMOA – aid for trade

budget

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23/ 09/ 2009 CDE Resources 20

RESOURCES

Human Resources:

• At Headquarters
• In ACP countries
• In Europe

Financial Resources

• European Development Fund (EDF)
• Third parties
• Other programmes

23/ 09/ 2009 CDE Resources 21

Human Resources

• Operations Management : technical & sector

expertise

• Administration
• RFO : Regional Field Offices in each ACP region
• National antennae
• Specialized correspondents (sector and financial specialists)
• Operational correspondents in the institutions of the EU Network
• Mobilization of EU Enterprises and Intermediary Organizations

At Headquarters in Brussels: 2 departments In the ACP regions In Europe

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Contacts

Regional Offices CDE Headquarters - Brussels

E-mail: Paolo Baldan , Head - Private Sector Development Programmes - pba@cde.int CDE website: www.cde.int West Africa: Dakar Mr Aliou Abdoullahi – aab@cde.int Central Africa: Opening in 2010 Eastern Africa: Nairobi Mr Vaflahi Meite - vme@cde.int Southern Africa: Gaborone Mr Sid Boubekeur - sbu@cde.int Caribbean: Santo Domingo Mr Patrick Keene - pke@cde.int Pacific: Opening in 2010