/ South Sudan Agribusiness Development Programme, South Sudan /

Project director

/ Patricia Schwerzel

Assignment

/ SSADP aims to help to establish or strengthen 250 small and medium businesses and farms in South Sudan that successfully access lending via commercial banks over a period of four years. The focus of the programme is on agribusiness sectors. SSADP disposes

Project location

/ South Sudan – Juba/ southern Equatoria States

Client

/ Netherlands Ministry of Foreign Affairs (DGIS)

Financing Agency

/ Dutch Government

Partners

/ 1) International Training Centre - ILO 2) Rabo Int. Advisory Services -RIAS

Participation

/ As lead firm

Composition of Team

/ BMB Mott MacDonald: Team Leader, Deputy Team Leader, Senior Business Support Services Expert, Business Support Services Expert, Senior Agribusiness Expert, Agribusiness Expert
/ Partner(s): Trainers for Business Support Services (BSS) seminars, Trainers for bank seminars

Period of Assignment

/ From 11-Feb-2013 to 11-Feb-2017

Staff months

/ BMB Mott MacDonald: 199
Partner(s): 9
Total: 208

Background

/ Despite South Sudan’s severe poverty, lack of infrastructure, almost total economic reliance on the oil sector until recently, and a nearly complete absence of private sector employment, the new nation has a very important and promising asset—vast amounts of uncultivated, arable land with excellent potential for agricultural productivity. Agriculture is already the backbone of the economy in South Sudan, employing the majority of the population of more than 8 million, 80 percent of whom live in rural areas, but more than 25 years of conflict have destroyed much of the country’s agricultural production capacity. Production is mainly subsistence oriented, making the country highly dependent on food imports from neighbours such as Uganda and Kenya, and leaving more than 90 percent of South Sudanese to live on less than $1 per day and 52% of the people facing food insecurity. The programme aims to develop entrepreneurship as a means to reduce poverty and improve food security.

Description of project

/ The South Sudanese authorities have indicated that the creation of employment and income is the key priority for the development of the new Republic of South Sudan. Given the natural conditions of the country, the government’s emphasis is on development of agriculture-related sectors (cereals, oil seeds, fruits and vegetables and livestock). This choice is also dictated by the food situation in the country, as large segments of the population are not food-secure. It is recognized the Government can only play a facilitating role, the initiative and the investments need to come from the private sectors which is also one of the pillars of the South Sudanese Development Plan 2011-2013. In response to these policies, the EKN has formulated a programme of support of private enterprises which will focus on agriculture and agribusiness, including agri-processing, storage, cooling, transportation and distribution, input supply, veterinarian services and other key elements of agricultural value chains.
The South Sudan Agribusiness Development Programme (SSADP) is designed as an Entrepreneurial Development Process (EDP) to stimulate entrepreneurship in the agricultural sector and to develop the agribusiness sector as a whole. The specific objective of SSADP is to increase the participation of South Sudanese people in entrepreneurship and agribusiness. More specifically, the project aims to help to establish or strengthen 250 small and medium businesses and farms in South Sudan that successfully access lending via commercial banks over a period of four years.
The programme will initially start in the three southern Equatoria States. SSADP disposes of a combination of support instruments, including training and coaching of entrepreneurs in the pre- and post-project phases, and financial assistance through the establishment of a guarantee facility in support of commercial bank financing.

Services provided

/ The SSADP recognizes the potential for agricultural development offering both an opportunity for diversification and for entrepreneurial activities by Small and Medium Enterprises (SME). But, such a development of the agricultural sector is hampered by two main constraints namely Access to Finance and Access to Business Support Services (BSS). SSADP will overcome these constraints by establishing a guarantee fund to reduce lending risks and transaction costs for commercial banks, providing them with strong incentives to get further engaged in the agricultural sector. Furthermore, SSADP will provide training to banks to develop their capacity in agricultural lending. In addition, SSADP will increase the quality and supply of BSS providers able to provide support to SMEs in the agricultural sector, thereby facilitating the upgrading of selected value chains. The Business Development Services (BDS) market is enhanced by the certification of at least 25 BSS providers in the ILO-SIYB Methodology and the establishment of an ILO-SIYB National Focal Point to ensure continued support.
The SSADP is founded on an Entrepreneurial Development Model aiming to create simultaneously awareness of entrepreneurial opportunities and seeks to make a contribution to the business enabling environment. A particular focus is on Women Entrepreneurs and the youth.
In recognition of the Post-Conflict conditions, the programmes strives towards a flexible approach in combination with a well established Monitoring & Evaluation (M&E) system. Specific attention is paid to Result and Impact Measurement following DCED Standards based upon international best-practices.

Results

/ Results to be achieved by the project are threefold:
i) Business Support Services available to SMEs and farms in South Sudan in an enhanced BDS market and Business Enabling Environment;
ii) Cash Collateral for Agribusiness related enterprises “CCARE” Guarantee Fund established and institutionalized;
iii) Capacity of both BSS providers and banks built so that agribusiness are effectively supported and financed. At least 25 ILO-SIYB Certified BSS providers operating in the BDS market and at least 250 SME succesfully accessed finance in the participating banks.

Senior staff and functions

/ Upto August 2014:
C. Apuoyo - Team Leader / Business Expert (2.52 m/m)
C. Guillemain –Team Leader / Business Expert (2.32 m/m)
J.H. Mulder – Team Leader / Business Expert (3.23 m/m)
Vincent Oywak - Deputy Team Leader (15.45 m/m)
Manasseh Ochieng - Senior Business Support Services Expert (7.41 m/m)
Michael Sworo - Business Support Services Expert (5.41 m/m)
Kenyi Gulli – Business Support Services Expert (8.86 m/m)
Gerard Fischer - Senior Agribusiness Expert; (7.76 m/m)
Denis Poggo - Agribusiness Expert (non-permanent, 16.55 m/m)

BMB Mott MacDonald

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