Mozal Linkages Program (IFC PEP Africa)

1. Mozal Linkages Program(IFC PEP Africa)

2. PEP Africa Pipeline in Mozambique • Mozlink II • Tourism Anchor Project • SME EDI • IFC Against AIDS

3. Programs SMEELP (Mozal construction phase) 15 SMEs $ 5,000,000 contracts 2006 2007 2003 2004 2001 How • SME Development Centre • Sharing Best Practice • Benchmarking Background on Linkages Business Linkages with Mozal have evolved into a model with a strong contribution to SME development in Mozambique • The goal is to: • Develop SME Competitiveness • Transfer knowledge and best practices to Mozambique Mozlink phase 1 (Mozal Operations phase) 25 SMEs $15,000,000 Mozlink phase 2 (Extended linkages – inclusion of other LCs) 100 SMEs $30,000,000 plus • Knowledge Sharing project • Mozambique Business Network • Mozlink website Supply Analysis New products and services to be supplied locally

4. 1st Mozlink Pillar - SME Development Centre “Measuring and visualizing performance improvement is a key factor for SME development” • First Assessment • done by Coaches/Mentors through site visits and interviews with the SME owner/ manager & team • First Workshop • Scoring • Baseline for each SME – Business, H&S, Maintenance and Quality • Each SME owner/ manager presents his/her improvement plan to create buy-in . • Baseline for the SME group • Second AssessmentMentors/Coaches Compare Improvement in relation to the First Assessment • Second Workshop • Sharing Learnings and Benchmarks - Encourage people to visit the SMEs Best Practice • Awards for the best improvements in each area and for Overall Best

5. Training The assessment led to the identification of what types of training was required by each SME • Tendering course • Business/management training Marketing, Management HR, Stock Manag Fin Manag MKT Manual • Take a few moments to complete an exercise: • Share with the class how you have organized marketing activities in your company • Give examples of where marketing activities in your company have increased sales.

6. 2nd Mozlink Pillar - Knowledge sharing The purpose of this project is to facilitate the sharing of information between local suppliers, Corporates, the Government and Development Agencies • Mozambique Business Network ( SME network forum) • Web site • Topics: • Business opportunities • How to work with banks • Business Conduct • HIV in the workplace

7. Mozlink II Components 3 year program Total cost = $ 1,5 mil • Supply side: Enhance SME business & technical competency • Output: 70 SMEs will complete the supplier development program • Demand side: internalize linkage processes within industry • Output: Management systems formalized within industry partners • Increase SME access to finance • Output: Direct link to SME finance institutions; Use of trade credit/ leasing, etc • Bridge demand/ supply information flow gaps among SMEs, industry, government and financing institutions • Output: SME website and database established that provides timely accurate information on SME capabilities and industry tendering opportunities

8. Limpopo Corridor Sands Areias Pesadas do Chibuto The way forward Mozlink phase II – New LCs joining the program • Supply chain analysis • Share best practices Identify common items to be supplied locally