AMSCO PRESENTATION TO AFRICARECRUIT SEMINAR

AMSCO PRESENTATION TO NEPAD HR DIASPORA WHAT IS AMSCO?  AMSCO is a joint venture between the UNDP, the private sector arm of the World Bank (IFC), the African Development Bank, several Development Finance Institutions (DFIs) and several corporate giants AMSCO SHAREHOLDERS AMSCO’s shareholders include the following: United Nations & other multi-state Institutions – AMSCO SHAREHOLDERS (Cont’d) One of AMSCO’s DFI shareholders is - AMSCO SHAREHOLDERS (Cont’d) AMSCO’s private sector stakeholders include RESULT OF STAKEHOLDER COLLABORATION  Preparation of African Training and Management Services (ATMS) Project Document  Solicitation of support of all African governments  Creation of trust fund to support delivery of project document COMPONENTS OF ATMS PROJECT DOCUMENT  The African Management Services Company (AMSCO) – a specially constituted joint venture company that acts as the Operational Unit of the ATMS Project  The Capacity Building Fund (Stichting Trust Fund) – A trust which provides grant funds for client companies in Africa assisted by the ATMS Project, but which cannot afford the full costs of the services AMSCO MISSION STATEMENT  To offer world class management and capacity building services to Private Sector companies in Southern Africa, particularly Small & Medium Enterprises (SMEs), to enable them achieve profitable, competitive and sustainable levels of operation AMSCO OPERATIONAL CENTRES  AMSCO Offices are in the following countries and cover the regions against them  Ghana - Anglophone West Africa  Ghana - Francophone West Africa  Kenya - East Africa  South Africa - Southern Africa SUMMARY OF AMSCO BENEFITS  Recruitment of suitably qualified and experienced, hands-on managers and secondment of such managers to African businesses  The Average contract period is years In exceptional cases the secondment may exceed years  AMSCO Managers cannot be citizens or residents of the countries to which they are seconded as they would not qualify for the various AMSCO diplomatic immunities and privileges Subsidy limits for Training Grants  For "stand-alone" companies, a maximum subsidy of US$50,000 may be approved and allocated for training  For a "Group" of companies (e.g., AMSCO clients belonging to the same group with several managers), the maximum subsidy for training may be US$125,000  In exceptional cases, the Stichting Board may approve subsidies beyond the limits stated above DETAILS OF SME’s  Small enterprises     Medium enterprises     up to 50 employees, asset size US$3m, turnover US$3m up to 300 employees, assets size US$15m, and turnover US$15m Large enterprises  everything bigger than medium Portfolio Review - General Between 1989 and 2000, AMSCO appointed some 520 Managers to 240 mainly small & medium sized companies in 26 countries in SubSaharan Africa for an average of years With the assistance of these managers and AMSCO Capacity Building Specialists, more than 7,000 employees received on-the-job training within their companies and/or additional external training AMSCO currently has some 250 Managers seconded to businesses in 23 countries in Africa AMSCO'S PRE-REQUISITES FOR PARTNERSHIP WITH CLIENT COMPANIES  Business Plan and/or Strategy Paper with financial projections for at least three years  Details of Directors of the Company – names and addresses If Directors are corporate entities, then details of Registered Offices and Directors of such entities  Details of Shareholders of the Company - names, addresses and equity stakes If shareholders are companies, then details of Registered Offices and Directors AMSCO'S PRE-REQUISITES (Cont’d)  Job Description for the position(s) in question and remuneration limits  Personal specification (qualifications & experience) required of the expert/manager(s)  Emoluments and benefits package Bearing in mind, the specific needs of each and the collective needs of associated companies in any business grouping, AMSCO works with companies to structure job descriptions and the functions of AMSCO Managers AMSCO'S PRE-REQUISITES (Cont’d)  For going concerns; Annual audited financial results for past three years and projected financials for three years  For newly incorporated companied/operations, projected financials for three years  Details of the current Management Team of the Company - names, positions and number of years in company AMSCO'S PRE-REQUISITES (Cont’d) Upon receipt of the above-described information and following a successful internal review of the information supplied by the applicant for AMSCO assistance, AMSCO begins the process of recruiting and accrediting AMSCO Managers and providing the associated benefits to the business enterprise REVIEW OF SAMPLE AMSCO PROJECT IN SOUTH AFRICA BREATHETEX CORPORATION Port Elizabeth Breathetex Corp (Pty) Ltd An SME success story  South African CSIR develop textile technology in high performance breathable fabrics over yrs on mandate of National Defense Force  In 1999 CSIR decides to commercialize lamination technology  Breathetex consortium including majority black empowerment consortium won bid  Breathetex secure CSIR as technology partner for further R&D and raised funds from stakeholders; Brait technology & innovation fund, Vantage Capital and IDC (through EIB) Breathetex - The Product  Waterproof breathable fabrics  Uses latest screenprint technology  Laminates lightweight breathable membranes to textiles  Generate strong bond between fabric and membrane  Lamination process & products meets environmental requirements Breathetex - The Challenges  Commercialize technology  Build export oriented business  Convert old style govt work ethic into entrepreneurial culture  Overcome perception of “deepest, darkest” Africa  Develop and offer commercially competitive products to international markets worldwide Breathetex – In partnership with AMSCO  Need to improve productivity and capture new markets leads to AMSCO  In Nov.2003, AMSCO seconds expert in lamination technology to fill position of Product Development, Sales & Marketing Manager  Responsibilities include Product development, technical competency training, market development, IT and quality control Breathetex - The Results  Doubled production volumes from 597,856 in 2003 to 1,502,500 in 2004  Turnover improved significantly: R28m (2003), R40m in 2004  Job creation (24): 28 employees 2003; 52 employees (2004) Breathetex - The Awards  Winner, Science & Tech Awards  Winner, Eastern Cape Exporter of the year  Finalist, Technology Top 100, Corporate Category  Winner (Manufacturing Sector) African SMME Award  Winner (Southern Africa) African SMME Award  Overall Winner, African SMME Award 2004 AMSCO HR CONTACT  Johannesburg e-mail : Pulane Mogoere (+27 11 219 5012) ( + 27 11 268 0088) : pulane@amscobv.com ... capacity to local managers to succeed the AMSCO personnel AMSCO may also help businesses arrange technical rehabilitation DETAILS ON AMSCO ROLE (Cont’d) Training / Capacity Building  Because AMSCO' s... Breathetex – In partnership with AMSCO  Need to improve productivity and capture new markets leads to AMSCO  In Nov.2003, AMSCO seconds expert in lamination technology to fill position of Product... networking using AMSCO' s extensive network  Possible references to potential Equity and Loan partners  Fund raising (grant funding) from AMSCO' s stakeholders DETAILS ON AMSCO ROLE AMSCO' S CORPORATE