Presentation by Amanda Fernandez Senior Manager, CARANA Corporation
Utilizing Business Advisory Services to Expand Agribusiness Investment
BAS Providers Central to USAID FinGAP Approach
BAS Assessment – October 2013 • November 2013 Assessment of BAS providers • Incorporation of international lessons learned • CARANA’s experience motivating BAS in West Africa to expand service provision to underserved SMEs • Segmentation of BAS firms (i.e. International, Accounting, Tax, Agribusiness Services, etc.) • Identification of BAS services required
Types of BAS Required by SMiLEs • • • • •
Business plan creation/refinement Matchmaking/financial facilitation Due diligence Market linkages Technical assistance (e.g. equipment purchase recommendations, establishing outgrower schemes) • Feasibility studies • Restructuring existing debt
Pillars of BAS Approach • Sub-sectoral approach (vs. generalized training) – Tie BAS providers to specific opportunities in maize, rice & soy VCs
• SMiLEs share payment of BAS service fees – Phase-out project subsidy to BAS over time
• Focus on BAS providers with capacity and experience (vs. creating BDS centers, or new BDS) – For profit consulting firms—some already being used by banks, SMEs, NBFIs
• Project “light touch”
Technical Approach in Action • Pre-qualification & hiring of more than a dozen BAS firms to date on a performance basis • Plan to have 40 BAS in action • BAS “Making Deals Happen” • $1,600K of financing to SMEs to date, $75M to come over 5 years
Initially Selected BAS Providers • • • • • • • • • • • •
AMSIG Resources EcubeMetrix Limited Growth Mosaic Ltd. Integrated Management Consult Ltd. Internal Advisory Ghana Ltd JPCann Associates Ltd KPMG Management and Economic Development Consultants (MEDCO) Serengeti Capital Partners Ltd VA Investment Solutions Ltd Venturehall Management Consultants Worldwide Investment Company Ltd