Mozal Linkages Program IFC PEP Africa PEP

Mozal Linkages Program (IFC PEP Africa)

PEP Africa Pipeline in Mozambique q Mozlink II q Tourism Anchor Project q SME EDI q IFC Against AIDS

Background on Linkages Business Linkages with Mozal have evolved into a model with a strong contribution to SME development in Mozambique The goal is to: Programs SMEELP Mozlink phase 1 (Mozal construction (Mozal Operations phase) 15 SMEs 25 SMEs $ 5, 000 contracts $15, 000 2001 2003 Mozlink phase 2 (Extended linkages – inclusion of other LCs) 100 SMEs $30, 000 plus 2004 Æ Develop SME Competitiveness Æ Transfer knowledge and best practices to Mozambique 2006 2007 How SME Development Knowledge Sharing project Centre - Sharing Best Practice - Benchmarking -Mozambique Business Network -Mozlink website Supply Analysis New products and services to be supplied locally

1 st Mozlink Pillar - SME Development Centre “Measuring and visualizing performance improvement is a key factor for SME development” q First Assessment • q done by Coaches/Mentors through site visits and interviews with the SME owner/ manager & team First Workshop • • Scoring Baseline for each SME – Business, H&S, Maintenance and Quality Each SME owner/ manager presents his/her improvement plan to create buy-in. Baseline for the SME group q Second Assessment Mentors/Coaches Compare Improvement in relation to the First q Second Workshop Assessment q q Sharing Learnings and Benchmarks - Encourage people to visit the SMEs Best Practice Awards for the best improvements in each area and for Overall Best

Training The assessment led to the identification of what types of training was required by each SME • • Tendering course Business/management training Marketing, Management HR, Stock Manag Fin Manag Take a few moments to complete an exercise: MKT Manual • Share with the class how you have organized marketing activities in your company • Give examples of where marketing activities in your company have increased sales.

2 nd Mozlink Pillar - Knowledge sharing The purpose of this project is to facilitate the sharing of information between local suppliers, Corporates, the Government and Development Agencies q Mozambique Business Network ( SME network forum) Topics: • Business opportunities • How to work with banks • Business Conduct • HIV in the workplace q Web site

Mozlink II Components 3 year program Total cost = $ 1, 5 mil q Supply side: Enhance SME business & technical competency ü q Demand side: internalize linkage processes within industry ü q Output: Management systems formalized within industry partners Increase SME access to finance ü q Output: 70 SMEs will complete the supplier development program Output: Direct link to SME finance institutions; Use of trade credit/ leasing, etc Bridge demand/ supply information flow gaps among SMEs, industry, government and financing institutions ü Output: SME website and database established that provides timely accurate information on SME capabilities and industry tendering opportunities

The way forward Mozlink phase II – New LCs joining the program Limpopo Corridor Sands Areias Pesadas do Chibuto • Supply chain analysis • Share best practices Identify common items to be supplied locally