1. USAID West Africa Trade Hub
Roger Brou
Business & Finance Director
March 2013

2. West Africa Trade Hub
In 21 countries, with UEMOA, ECOWAS, & CEMAC
Offices in Accra, Dakar, & Arlington;
Virtual team in Ouaga, Abuja, & 18 ARCs
•+/-300 million inhabitants
•GDP est. $500 billion USD

3. Value Chain Approach Informs Trade
Policy & Infrastructure Improvements

4. People, Planet and Profit:
The triple bottom line – a market
driven approach to development

5. The Problem
In West Africa, 75% of the population live on
less than US$2 per day.
The Question IS:
How to create jobs and lift incomes in a
sustainable fashion?

6. • Traditional crop
• Millions rural Production to
women Market
• Weeks of work
DISCONNECTED…
• April to September
• Kernel quality Limited
defined transparency!
• Price takers
• Commence selling • < 10 major buyers
@ < $150 per ton
• Export, process &
kernel
• 1,000s of nut formulate
traders • Erratic price @ $250 -
• Consolidate & $800 per ton kernel
finance • Quality variation high
• Commence selling • Zero traceability
@ > $250 per ton
kernel
• Quality deteriorates
• Limited value added

7. The Global Shea Alliance annual conference connects an
industry, leveraging resources to drive business
opportunities

8. Shea 2013
GSA conference offers training and opportunity on:
•Access to Finance
•Transportation
•Cosmetic formulation
•Packaging
Business to Business
Conference and presentations
Exhibition
Field trips

9. Exporters’ #1 Hurdle: Access
to Competitive Financing
Partnering with international financial institutions,
regional banks and investors to improve lending and
investing opportunities for exporters.
Product & Process Development: Innovative
approaches to trade finance for commercial banks.
Promoting Best Practices and Training:
Bringing banks and companies together to develop
relationships that are mutually beneficial. Hosting
annual Financing Trade Regional Conference.
Technical Assistance: Helping bankers develop
products/processes. Facilitating exporters to apply for
loans, develop financial projections and business
plans.

10. Financial Services Approach
Based on Value Chain approach the Trade Hub:
Facilitates dialogue with regulatory authorities
Leverages partnerships:
Commercial Banks
Multi- and Bi-lateral Institutions
Investors
Buyers
Provides industry-specific financial training
Assists with company-specific technical needs Trade
Hub
LCs, Purchase
Orders
Commercial ERC
Banks New products &
services
Increased Jobs and
Wealth Creation
Government &
Multi-lateral
Investors 10
Institutions

11. Performance-based Financial
Service Providers
 Business Plans
 Investment
Promotion
 Financial Structuring
 Negotiations
 Management
Coaching
 Product costing and
Pricing

12. MSMEs Type of Financial Needs
 Short-Term (1 year max)
– Procurement financing
– Working Capital Financing
– Trade Financing/ Term loan
 Medium to Long-Term (more than 1 year)
– CAPEX financing for expansion, acquisition of
new equipment (leasing or direct purchase) or
new factory construction

13. Long Term Financing
 EBID-USAID-ACA MoU
 BOAD-USAID-ACA MoU
 Private Equity Funds for medium/ long-term
 Strategic partnership (JV, M&A, etc)

14. MSMEs Sources of Financing
1. Equity Financing
2. Debt Financing
3. Trade Financing
4. Government/ NGOs grants

15. Equity Finance Sources
 Triodos
 Octave Company
 Nova Capital
 Phoenix Capital

16. Debt and Trade Finance Sources
 MFIs
 Commercial banks
 Social Impact Investment Funds
– Root Capital www.rootcapital.org
– Grassroot Business Funds www.gbfund.org
– Acumen Funds www.acumenfund.org
– ResponsAbility Funds www.responsAbility.com

18. Find out more
www.watradehub.com
www.globalshea.com
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THANK YOU