SABS Samoa AgriBusiness Support Project SAMOA AGRITOURISM POLICY SETTING FORUM Panel 1 “Panel Forum: Regional perspective on opportunities/experiences to support Agritourism development and investment” Samoa Conference Centre, Apia Samoa 13 th December 2016 Presented by: Ian M. Buck B.Ag.Sc.,Grad.Dip.Ag.Econ.,Dip.FS(FP).,FAICD.,FAIM. Facility Manager Samoa AgriBusiness Support Project Supported by the Asian Development Bank and The Government of Samoa Promoting Agribusiness & Economic Development 1
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Samoa Agritourism Policy Setting Workshop 2016: Ian Buck (ADB) - Regional perspective on opportunities/ experiences to support Agritourism development and investment
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SABS Samoa AgriBusiness Support Project
SAMOA AGRITOURISM POLICY SETTING FORUM
Panel 1
“Panel Forum: Regional perspective on opportunities/experiences to support Agritourism
development and investment”
Samoa Conference Centre, Apia Samoa 13th December 2016
Presented by: Ian M. Buck B.Ag.Sc.,Grad.Dip.Ag.Econ.,Dip.FS(FP).,FAICD.,FAIM.
Facility Manager
Samoa AgriBusiness Support Project
Supported by the Asian Development Bank and The Government of Samoa
Promoting Agribusiness & Economic Development
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The Samoa Agribusiness Support ProjectSABS
What is SABS?
• SABS is a pilot project – first of its specific type to be undertaken –Samoa first country to trial the concept;
• Established from an initiative of the Asian Development Bank and the Government of Samoa to stimulate agriculture’s role in economic growth and poverty reduction in Samoa.
• Rational - to revitalise agriculture & agribusiness to increase the sectors contribution to the economy & GDP through import replacement and export, which aligns with the Governments policy framework and the
Strategy for the Development of Samoa.
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Key Features• SABS is a 7 year Private Sector Development project designed to stimulate
development of the agribusiness sector in Samoa - Has a commercial focus;• Provides a combination of financial, technical and managerial support to
agribusiness enterprises;• Aims to reverse the decline of the agriculture and agribusiness industries,
increase exports, contribute to import substitution and create employment opportunities in rural areas through the provision of;
1. Financial Support to participating agribusinesses, via loans from the participating Commercial Banks in Samoa ; Access to cost effective interest rates and loan terms has been a major
barrier to agribusinesses;2. Business Support Services to participating agribusiness entities through
FM & PMU; Capacity building to improve weak links in the business operation or
improved access to markets etc• Incorporates a Gender Action Plan – to encourage increased participation of
women in business;• Incorporates M & E to measure outputs against objectives;
SABS
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• The key players:
Samoa Agribusiness Support Project
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SABS Project Management
FM & PMU
Commercial Agribusiness
Commercial Banks
• ADB provided a Grant to the Government of Samoa - MOF is the EA;
• Government of Samoa on-lent the Grant to Participating Financial Intermediaries (PFI or Banks) via Subsidiary Financing Agreement (SFA) between Government of Samoa and each PFI;
• Each PFI holds funds in a designated project account which are then proportionally allocated to Subloan A & Subloan B components;
Subloan A = Guaranteed Cash Collateral = Security – ALL approved partners;
Subloan B = Repayable Supplemental Seed Capital Loan = Top up Equity – SOME;
SABS Funding Arrangement
Financial Support Services;
• All prospective agribusiness project partners must meet SABS Eligibility Criteria – (Financial & Environmental) to qualify for support;
• FM works with partner agribusiness to develop business plan and prepares finance application for submission to bank;
• Bank provides the commercial loan - Projects must meet appropriate credit and other risk-related criteria as determined and applied by each commercial bank;
• Must use the finance for a “qualified project” in accordance with the conditions detailed in the loan agreement with each bank;
• Very Important: All initial discussions with partners held as “Strictly Private & Confidential” & as “Commercial in Confidence”; Trust & Confidence.
The SABS Support Services
Business Support Services;
• Is about capacity building - Identify the weak links in the business operation – Business Plan;
• Tailor the support to the business – Is not a “one size fits all”;
• Engage the appropriate specialists - Precise Terms of Reference for specific support required – Indefinite Delivery Contracts;
• Be prepared for the unexpected – “the known unknowns”
• When working in the commercial/private sector you need quick response times – “Time is money”!
• SABS role is to facilitate improvement in agri-business performance and meet target market product standards.
The SABS Support Services
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• Examples of business support services;– Strategic – Tailored Business Planning & Financial management;
– Marketing – Market access; labelling; may include joint venture arrangements;
– Quality Control – Hygiene; Food Safety; Certification (Organic,HACCPS,ISO etc);
– Technology – Agriculture, Agribusiness, Business partnerships;
• Expenses shared by SABS project and agribusiness project partner on an 80:20 parallel cost sharing basis – Business Support Services Agreement.
• Agribusinesses also supported by a small Agribusiness Innovation Fund on a 75:25 parallel cost sharing basis;– Small short term expenditures relating to agribusiness expansion or operation
BSS (continued)
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» Project Design - 2012-14;
» Project Inception - September/October 2014;
» 2yr Project Implementation - end October 2014 – Process, Procedures & Presentations - build a prospect pipeline;
» Official Launch May 2015;
» May - November 2015 focus on Financial Support Services.
• 9 business plans and finance applications completed & submitted end yr 1.
• All approved; 7 drawn down, 2 on hold;
• Finance Terms 7 yrs & Interest rate 8.5 – 9%. At the time common agriloan rates (13.5 – 14.5% with 12 mth terms)
» 2016 - focus on provision of Business Support Services, including to date;
• Accounting and business management services;
• Organic certification; Industrial chemist; Food safety training & butchery training; Food production engineer; packaging design support.
Progress to date
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Thank You (Fa’afetai)
SABS Contact Details:
Facility Manager
Level 3 I Ministry of Finance
Central Bank Building I Apia I Samoa
E: ianb @sabs.ws
T: 685 34353 or M: 685 7749478
SABS Samoa AgriBusiness Support ProjectPromoting Agribusiness & Economic Development