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Download Financial and Technical Assistance Resources for Adoption
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Financial and Technical Assistance Resources for Adoption of Technology by Youth in Agribusiness www.afap-partnership.org Agribusiness Partnership Contracts APCs APCs are agreements to provide AFAP assistance to small and medium agribusiness as they seek to develop emerging smallholder markets. AFAP assistance may include any combination of payment and/or credit guarantees, matching grant investments in demonstration equipment and facility, technical consultations, logistical support and management training. In return for AFAP’s assistance agribusinesses commit to making significant market development contributions that further the goal of boosting responsible fertilizer use and availability to smallholder farmers in Africa. Hub Agrodealers To alleviate the many challenges that both suppliers and rural agro-dealers face in supply and distribution, AFAP is working with COMESA and the African Development Bank to create and strengthen 500 HUB AGRODEEALERS Limited capital and storage constrains ability to buy in bulk, resulting in multiple small transactions SUPPLIERS / IMPORTERS 3 MT 3 MT RURAL AGRO-DEALERS 3 MT 3 MT Hub agro-dealers benefit from slightly higher margins, but their greatest advantage is the ability to sell large volumes “HUB” RURAL AGRO-DEALERS A GRO-DEALERS SUPPLIERS / 10 20 MT MT IMPORTERS 10 MT 3 MT The Value of AFAP’s “Hub & Spoke” Approach Increased Aggregate Demand Storage Capacity Hubs handle much higher volumes than rural agro-dealers, lowering distribution and transaction costs for suppliers; higher volume orders enable volume discounts which are passed on to rural agro-dealers. Hub agro-dealers (often) have storage capacity, which facilitates large purchases from suppliers, lowering transaction costs, and helps rural agro-dealers minimize their risk of stock-outs. Fewer Points of Sales Better Serve Local Agro-Dealers Servicing fewer hub dealers (i.e. ~150 hubs in TZ), lowers costs for the importers/suppliers. Additionally, closer business relationships and trust can be created that enable trade credit facilities to be extended. Hub agro-dealers are geographically closer, have greater working capital flexibility, often have an agronomist on staff and are closer to the end-user market. Consequently, hubs can better supply and support local/rural agro-dealers. More Intensive Specialized Training Business and Technical Training lays the foundation for the flow of credit and investment. As our Hub Agrodealer work continues to scale-up and deepen, we will continue to offer more specialized training, particularly in: Training Topics Business • Inventory & Stock Keeping • Basic Accounting • Building Creditor Relationships • Customer Relations • Marketing • Production Cost Analysis • Business/Project Plans & Analysis • Cash Management Technical • Bench-Scale Laboratory Processing • Proper Storage & Handling of Goods • Pilot-Plant Processing • Management Advising • Environmental Assessments • Workplace Safety • Mineral Resource Evaluation THANK YOU!
