West Africa
Improved Access to Credit for West African Export Ready Companies (ERCs) and Small to Medium-Sized Enterprises (SMEs) Project
Prime Implementing Organization:
IESC
The VEGA Improved Access to Credit for Export-Ready Companies and Small- to Medium-sized Enterprises Project (VEGA/IACES) was conceived to facilitate greater trade competitiveness in West Africa by: 1) Improving the ability of export-ready companies to provide requisite loan request materials; and, 2) Improving the banking sector's capacity to channel credit and provide appropriate financial products to ERCs and SMEs. IESC was the prime implementing organization IESC and partnered with FSVC, with expertise in the lending process and IIE, specializing in training.
During the duration of the project, VEGA/IACES developed and implemented four training workshops in business planning, general and financial management and the credit policies and practices of Ecobank specifically related to ERCs. The goals of these activities were to improve lending processes, provide faster service and loan turnaround for prospective borrowers particularly in the area of export finance, and generally improve customer satisfaction among ERCs. Other results included improved awareness, knowledge and understanding of constraints among the parties in order to change perceptions of risk and as a result provide for lower bank interest rates and charges.
Program Achievements
- Conducted Four Training Workshops:
- “Understanding Your Business" and "Know Your Partners," - August 28-30, 2007, 64 participants,
- "Understanding and Strengthening Financial Management," - September 24-27, 2007, 85 participants
- "Corporate Governance," "Change Management," and "Risk Management," - October 29-30, 2007, 79 participants
- Comprehensive Loan Process Review" and "Risk Rating, Risk Management and Internal Risk Management
- Coordinated with West Africa Trade Hub/Accra and Ecobank to leverage existing activities and identify opportunities for the organizations to complement one another;
- Organized a regional conference of West African Banks to disseminate the best practices and lessons learned from the project regarding trade finance for ERCs; and
- USAID/ West Africa awarded VEGA’s Chief of Party for this Program, Ernest Jecty, a Certificate of Appreciation for his dedication and initiative
Strategies," - November 6-8, 2007, 89 participants
Volunteer Expert Testimonial
After working at IBM for twenty five years, volunteer expert Gary Mutz brought Sales and Marketing expertise as well as in-depth knowledge of Total Quality Management (TQM) to the West Africa project as he conducted a three day training module called “Understanding your Business and Knowing your Partners.” The objective was to improve partnership between selected export ready companies (ERCs) and Ecobank in order for the ERCs to obtain pre-shipment, post-shipment and investment financing.
He guided the participants through the steps of developing a business plan and effectively using it as well as properly assessing a pricing and costing plan by understand transactional risks, responsibility, cost factors and ways to increase profit. The USAID officials who were present stated that Gary had a winning formula for delivering this kind of presentation.
The training took place in Accra, Ghana and included modules which coached the leaders of these companies on how to insure:
- Quality
- Price competitiveness
- Acceptable working conditions
- Market access speed and,
- Focused marketing plans
Gary acknowledges the benefits of those with private sector experience engaging themselves as volunteers and stepping outside their comfort zones, “you get an instant reward, each session is unique, private sector can become routine, but here you are trying to do as a good a job you can with the unexpected and very challenging. Go with an open mind, share everything you know, don’t go as an expert, go as a team leader.”
-Gary Mutz
Volunteer Expert
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