Opportunities for SMEs in the Agribusiness Sector

Size: px
Start display at page:

Download "Opportunities for SMEs in the Agribusiness Sector"

Transcription

1 Opportunities for SMEs in the Agribusiness Sector

2 2 Opportunities for SMEs in the Agribusiness sector: The Agriculture Sector Agriculture is critical to Sierra Leone s economy Diverse ecologies support growing different varieties of crops Plenty rainfall and irrigation potential Availability of abundant arable land

3 3 Government Policies The Commercialization of Agriculture is supported by The Agenda for Prosperity National Agriculture Sustainable Development Plan A Small Holder Commercialization Programme A National Export Strategy A Local Content Policy A Public-Private Partnership Act (2010) Key Private Sector Reforms(Ease of Doing Business, Registration of Businesses) Attractive Investment Packages

4 4 The Small Holder Commercialization Programme (SCP) The SCP targets value chain development and activities for: Cocoa and Coffee Rice, Cassava, Oil Palm Cashew, Ginger, Fruits and Vegetables Fisheries and Forestry Products The SCP also targets infrastructural development: Development and rehabilitation of feeder roads Processing, marketing and storage facilities

5 5 Key Stakeholders in the SCP Key Stakeholders in the SCP are: SMEs Cooperatives Agriculture Business Centres (ABCs) Farmers Associations

6 6 Opportunities for Stakeholders in SCP Several Opportunities for SMEs, Cooperatives, ABCs and Farmers Associations: Locally Regionally Internationally

7 7 Opportunities for Stakeholders in SCP These Opportunities involve improvements in value chains: by expanding activities to provide services such as collection and transport by product improvements Product Certification Schemes(fair trade, organic, GAP) by helping producers move up the value chain by promoting high quality artisanal production

8 8 Opportunities for Stakeholders in SCP Value Chain improvements can help local SMEs connect to global value chains through: Clustering Arrangements Linkages Programmes with larger companies (internal /external) Supply Chain activities Key Linkage Types: Backward linkages with suppliers Forward linkages with Customers Technology Transfer

9 9 Opportunities for Stakeholders in SCP Value Chain improvements can help local SMEs connect to global value chains through: Clustering Arrangements Linkages Programmes with larger companies (internal /external) Supply Chain activities Key Linkage Types: Backward linkages with suppliers Forward linkages with Customers Technology Transfer

10 10 Opportunities for Stakeholders in SCP Benefits of linkage Programmes to SMEs: Generate additional economic activity Stimulate improvements in the products and services of local suppliers Bring local suppliers into international markets with products meeting international production and quality standards Attracts investments into SME Businesses Creates a strong local supplier base capable of offering quicker delivery times, reduced transportation and inventory costs

11 11 Promotion of Linkages Programmes Several Initiatives to Promote Linkages Programmes for SMEs: Purely donor driven Purely Government driven Public-Private Partnerships Purely Private Sector Driven (Corporate Social Responsibility Programmes)

12 12 Promotion of Linkages Programmes To Participate Successfully in Agribusiness & Linkages Programmes, SMEs must pay attention to: Maintaining high quality standards of products and services Maintaining consistency of supplies Display professionalism and commitment to contracts Innovation, Secialisation and Diversification Frequent upgrading of skills and capacity building

13 ... and SLIEPA has a critical role to play Investment Promotion and Outreach: proactively target investors Investor Facilitation: on the ground hand-holding Investor Aftercare: When an investor begins to export, they will tap into the domestic value chain Export Promotion: Build capacities so exporters can access international markets Export Development: support value chain development and value addition in priority sectors through implementing the National Export Strategy -SL Creates Jobs and Incomes through SMEs 13

14 Thanks Investsierraleone Depart