1. Pagina 1 | 26 oktober 2009 | [Presentatie titel invullen] Workshop 19 November Value Chain Finance Emerging lessons and policy implications

2. Pagina 2 | 26 oktober 2009 | [Presentatie titel invullen] Developing policies based on realities of our partners

3. Pagina 3 | 26 oktober 2009 | [Presentatie titel invullen] Lesson: Value Chain Finance needs to and effective Value Chain Needed for effective chains: A puller or lead actor. Effective vertical linkages between primary producers and subsequent value chain operators e.g. traders, processors, exporters A certain ‘chain intelligence’ to serve the requirements of chain actors and financiers (value chain analysis, feasibility studies etc.); Strong horizontal linkages among primary producers (producer organisations) and other chain actors and related service providers such as financial service providers. Management and control functions in the chain to meet the requirements of end-markets and financiers (especially geared to risk mitigation).

4. Pagina 4 | 26 oktober 2009 | [Presentatie titel invullen] The landscape of Value Chain Finance Commercial banks Banks, MFI’s, Companies, Unions Commercial bank, Companies MFI’s, Sacco’s Companies, Associations Long term loans, Guarantees or equity Medium term loan, Leasing, Short and medium term Loans, leasing Short term loans, Savings, group loans Industrial processors exporters Local processors, wholesalers Local traders, Producer associations Small producers and Micro entrepreneurs

5. Pagina 5 | 26 oktober 2009 | [Presentatie titel invullen] Potential products for different levels in the chain 1. Producers: Short term loans for farm inputs and small equipment, special collateral arrangements e.g. Warehouse inventory or embedded finance: contract farming. 2. Traders and processors: Flexible loans and overdrafts, trade loans, leasing 3. Exporters, industrial processors: investments loans and equity finance Need for vertical linkages in the financial chain! Some samples

6. Pagina 6 | 26 oktober 2009 | [Presentatie titel invullen] How to bring these together?? Strategic clarity Appropriate instruments Staff capacity Knowledge management Accountability Value chain Strategic clarity Appropriate instruments Staff capacity Knowledge management Accountability Financial Institution

7. Pagina 7 | 26 oktober 2009 | [Presentatie titel invullen] Issues for donors and investors Strategic clarity: Policy should draw on financial services policies and Value Chain development policies. Staff capacity and development Accountability: Monitoring and evaluation criteria Knowledge management: learning and networking Appropriate instruments: Financial instruments and Capacity building instruments Brokering and networking

8. Pagina 8 | 26 oktober 2009 | [Presentatie titel invullen] Questions for discussion 1. Comment on the observations for smart aid in Value Chain finance. How to smarten the aid in your organisation ? 2. Is there is enough common ground to produce a joint framework on VCF that will enhance collaboration and synergy between organisations ? What would be next steps to develop this? 3. What are niches for your organisation and for other organisations in Value Chain Finance? Space for complementarities and what are areas for collaboration? 4. Do you have suggestions to get the local and international banking sector more involved?

9. Pagina 9 | 26 oktober 2009 | [Presentatie titel invullen] Mariel Mensink P.O. Box 8190 3503 RD Utrecht The Netherlands T +31 (0)30 880 18 96 Mariel.mensink@terrafina.nl www.terrafina.nl