TECHNONETTECHNONET AfricaAfrica

Presentation to the Swiss Agency for Presentation to the Swiss Agency for Development and Cooperation Agency (SDC),Development and Cooperation Agency (SDC),

And collaborating Partners in TanzaniaAnd collaborating Partners in Tanzania

13, September 200613, September 2006

TECHNONET AFRICATECHNONET AFRICA

BACK GROUNDBACK GROUNDTICAD 1 1993TICAD 1 1993

TICAD 11 1998TICAD 11 1998TOKYO Agenda for ActionTOKYO Agenda for Action

What is TECHNONET Africa?What is TECHNONET Africa?

• Network of 10 African organizations in 7 countries that help SMEs

• Aim to share experiences, pool best practices, and learn from the experiences of Asia in SME promotion

• Seeks to promote business ties between Asia and Africa and within Africa and the rest of the world

• Based on Technonet Asia, which has been operating for the last 30 years

VISIONVISION

• CREAT A VIBRANT ENTREPRENEURIAL SOCIETY IN AFRICA

• PRODUCE PRODUCTS THAT ARE GLOBALLY COMPETITIVE

MISSIONMISSION

• TO ENHANCE THE INSTITUTIONAL CAPACITY AND MANAGERIAL COMPETENCE OF THE SMES IN AFRICA THROUGH THE AFRICA-ASIA SME NETWORK

PROGRAM FOCUSPROGRAM FOCUS

• FOOD PROCESSING

• AGRO BASED INDUSTRIES

• METAL WORKING AN ENGINEERING

• TRADE AND INVESTMENTS

• INSTITUTIONAL AND POLICY REFORMS

FOUNDING MEMBERSFOUNDING MEMBERS

• SOUTH AFRICA: SEDA AND CHAMSA• MOZAMBIQUE: Small Scale Industry Development

Fund• TANZANIA: Small Industries Development Organisation• UGANDA: Management Training and Advisory Centre• CAMEROON: Cameroon Chamber of Commerce and

Industry, Mines and Crafts• GHANA: Association of Ghana Industries, National

Board of Small Scale Industries• Nigeria – MAN and NASSI

Donors and SponsorsDonors and Sponsors

• United Nations Development Programme• Japan International Cooperation Agency• Government of South Africa• Government of Malaysia• Government of Thailand• Partner organizations that form the

network• Payments in Kind

Major Strategic Areas of FocusMajor Strategic Areas of Focus

• Access to windows of SME Financing in Africa

• Promoting trade and investments between Asia and Africa and the rest of the world

• Promoting global technology matching and Asset Exchanges

• State of Art Studies (STARS)

Activities: Three Major Activities: Three Major OutcomesOutcomes

• Establishing and managing the network and the program

• Promoting institutional and policy reforms

• Increasing capacity to promote trade an investment

Outcome One: Setting Up & Outcome One: Setting Up & Managing the NetworkManaging the Network

• TECHNONET Africa Secretariat Established

• Convened Governing Council and Executive Committee meetings

• Building Capacity of partner organizations to communicate and implement activities

Outcome Two: Policy and Outcome Two: Policy and Institutional ReformsInstitutional Reforms

Completed Activities

• Needs Assessment Study (Dec 04-Jan 05)

• Study Tour of Asia (April 05)

• SME Bank Training Workshop (Jan 06)

• Credit and Risk analysis (July 06)

Planned Activities

• State of the Art Studies (Early 2007)

• High-Level Workshop on SME Policies (Nov 2006)

• Symposium on SME Financing (Jan 2007)

Outcome Three: Trade and Outcome Three: Trade and InvestmentInvestment

Completed Activities

• Training of Trainers workshop on Entrepreneurship Development (Mar/April 2006)

Planned Activities

• Quality & Standards Development Training (Mar 2007)

• Technology Matching (May 2007)

WHY SME FINANCINGWHY SME FINANCING

• Studies have shown that 85% of SMEs are unable to access Finance.

• 60% - skills, Business leadership, Management, Financial analysis and book keeping, Business plans etc.

• 30% Enabling environment – industrial parks, incubation centres, market access,

• 29% ICT, connectivity, etc

SME FINANCING SYMPOSIUMSME FINANCING SYMPOSIUM

• Review the current policies on SME financing in African countries

• Discuss, Share, Learn from the best practices of Asia and Africa

• Clarify conditions under which the multilateral conditions are willing to support the SME financing in Africa

• Develop joint policy recommendations for African governments and international financial institutions in the area of SME financing.

Expected outcomes of the Expected outcomes of the SymposiumSymposium

• Increased appreciation of the SME financing opportunities

• Consensus on the best financing approaches and strategies

• Agree on new areas that UNDP and Multilateral partners can provide support to the African governments on SME financing

• Booklet of the best financing practices around the world but adaptable to African situation.

• Development of a network of government officials, development partners interested in promoting SME financing.

SME Financing Symposium SME Financing Symposium expectations.expectations.

• Support the production and printing of the case studies

• Provide scholarships for participants

• Conference venue, interpretation equipment, interpreters,

• Publicity etc.

ConclusionConclusion

• Private sector development if the engine of growth.

• Poverty reduction is a major concern in line with the Millenium Development Goals

• Wider participation of all stakeholders in realising a better world for all.

THANK YOU