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LIMAS value chains

LIMAS value chains. DESEMP Poultry , Honey, Sesame , Cashew Open call for business proposa ls (business forums, media) ( Organic ) pulses, Rice, S unflower , Horticulture Supporting services to VC primary producers

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LIMAS value chains

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  1. LIMAS valuechains • DESEMP Poultry, Honey, Sesame, Cashew • Open call for business proposals (business forums, media) (Organic) pulses, Rice, Sunflower, Horticulture • Supporting services to VC primary producers BDS, VBAs, Tractor service, Poultryfeed sales/feedmill, Extension service. • Not VC related (business model introduction) Farm-block, MATI ”incubator” , Contractfarming, Organiccertification

  2. Some key strategic agribusiness support approaches • Demand driven activities –open to new opportunities • Introduction of new business models for multiplication • Support based on client business plans & profitability • Business formalisation –not business as usual; learning through formalisation • Long term support/on-site mentoring –short term formal training not effective • Support should not distort competition excessively • Strengtheninternal value chain collaboration –CF; market, finance, trust building, TA transfer (2 ways) • Key players are the VC stakeholders, not LIMAS; the project close and then 2

  3. Some key strategic agribusiness support approaches • Development of local private BDS service –DCs/NGOs not business oriented; ex. DADP funds not utilized effectively. • LIMAS does not manage any business or buy any commodities –no commercial experience, unfair to the private competitors • Development of VC business service provision -cluster development. • Handling of business information –confidentiality; not for public consumption. • Strengthenprivate sector; effective demands for services from the public sector • PPP is less feasible when the private sector is as weak as in Mtwara/Lindi. • Private-public dialog through business forums and specific investment support; raising taxation issues, utility provision etc.

  4. District distribution of LIMAS agribusiness support

  5. Key LIMAS business support services • Business registration and BP formulation (incl. stakeholder consultations, training assessments) • Business training/mentoring • Market linkages & information • Pilot technology transfer & skills • Land/water titles and processes • Finance sourcing; no LIMAS loan facility. Internal savings LIMAS cannot fund: • Machinery & equipment except for pilot technology • Raw materials, salaries etc.

  6. Business support sequence • Value chainassessment • Business support applications • Application assessment (scoring) & selection • Memorandum of Agreement for support • Business plan preparation; plan scoring assessment • LIMAS support action plan/budget • Support implementation

  7. Somelessons • Up-country businesseswith experience/financeareready toinvestmentin the region • Lack of finance/cash management for investment, especiallyamonglocalbusinesses (delayed/reducedcashewpayments a seriousconstraint in thisregard). • Manycompanieslack proper accounting systems andfinancial statement • Land procurementand titleissuesareoftendelayinginvestment • Contractfarmingneeds time to mature and some processors needTA for CF management • ”Political” influencein commoditymarkets and farmer organisation an issue.

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