LIMAS value chains DESEMP Poultry Honey Sesame Cashew

LIMAS value chains ►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, Poultry feed sales/feedmill, Extension service. ►Not VC related (business model introduction) Farm-block, MATI ”incubator” , Contract farming, Organic certification

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 ►Strengthen internal 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

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. ► Strengthen private 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.

District distribution of LIMAS agribusiness support

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.

Business support sequence ►Value chain assessment ►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

Some lessons ► Up-country businesses with experience/finance are ready to investment in the region ► Lack of finance/cash management for investment, especially among local businesses (delayed/reduced cashew payments a serious constraint in this regard). ► Many companies lack proper accounting systems and financial statement ► Land procurement and title issues are often delaying investment ► Contract farming needs time to mature and some processors need TA for CF management ► ”Political” influence in commodity markets and farmer organisation an issue.