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AMSCO PRESENTATION TO NEPAD HR DIASPORA

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.

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AMSCO PRESENTATION TO NEPAD HR DIASPORA

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  1. AMSCO PRESENTATION TO NEPAD HR DIASPORA

  2. 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.

  3. AMSCO SHAREHOLDERS AMSCO’s shareholders include the following: United Nations & other multi-state Institutions –

  4. AMSCO SHAREHOLDERS (Cont’d) One of AMSCO’s DFI shareholders is -

  5. AMSCO SHAREHOLDERS (Cont’d) AMSCO’s private sector stakeholders include

  6. 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

  7. 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.

  8. 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.

  9. 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

  10. 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 3 years. In exceptional cases the secondment may exceed 3 years. • AMSCO Managers cannot be citizens or residents of the countries to which they are seconded as they would not qualify for the various AMSCOdiplomatic immunities and privileges.

  11. SUMMARY OF AMSCO BENEFITS (Cont’d) • Facilitation of residence and work permits. AMSCO seconded managers do not require ordinary work permits in the countries of operation. They are accredited by the Ministries of Foreign Affairs under the auspices of UNDP. They can therefore start working immediately their accreditations are completed by the UNDP • AMSCO Managers are not required to pay income tax on their emoluments. A possible tax break for the businesses. • AMSCO Managers are entitled to import personal effects (including a vehicle) duty-free within the first six months of their assignments.

  12. Other Benefits: • Business Linkages and networking using AMSCO's extensive network. • Possible references to potential Equity and Loan partners. • Fund raising (grant funding) from AMSCO's stakeholders.

  13. DETAILS ON AMSCO ROLE AMSCO'S CORPORATE MANAGEMENT DEVELOPMENT PROGRAMME FALLS UNDER THE FOLLOWING CATEGORIES: • Management Assistance • the recruitment and secondment of experts with the appropriate skills and experience to client companies. • The mandate of the AMSCO managers is to assist the client companies to inter alia, - set up the businesses, - install management systems, - improve operational and financial performance and - transfer capacity to local managers to succeed the AMSCO personnel. AMSCO may also help businesses arrange technical rehabilitation.

  14. DETAILS ON AMSCO ROLE (Cont’d) • Training / Capacity Building • Because AMSCO's role in any company is intended to be transitional, it seeks to ensure that local successor managers undertake comprehensive management development programmes with the objective of building a well-trained team of local senior executives in each client company. The services of AMSCO are provided to client companies under contract at cost (including recovery of actual expenses). • Using grant subsidies provided by donors, AMSCO may subsidize the cost of the programme to SMEs who cannot afford to pay the full cost. In conjunction with the Client Companies, AMSCO designs practical job-orientated management development programmes fitted to their particular needs and specific educational and professional background of the respective trainees.

  15. CRITERIA FOR ALLOCATION OF STICHTING SUBSIDIES/GRANT FUNDING 1. In principle, AMSCO's SME clients may qualify for a training subsidy to assist in meeting a portion of the cost of AMSCO sponsored management development and training programmes for staff of the companies in line with the overall objective of the ATMS Project. Larger clients may qualify for training subsidy only in exceptional cases (i.e. compelling development case) with prior approval from AMSCO's Stichting (Trust Fund) Board.

  16. CRITERIA FOR ALLOCATION OF STICHTING SUBSIDIES (Cont’d) • Any subsidy for training shall not exceed 33% of the total training budget of the company as determined by AMSCO through a review and determination of the company’s training requirements. The training budget must clearly indicate cost items, total amount, and the allocation between the client and Stichting. • Clients must cover a minimum of 67% of the training cost to demonstrate an interest in and recognition of the value of staff development as a worthwhile investment to ensure the long-term survival of the enterprise

  17. CRITERIA FOR ALLOCATION OF STICHTING SUBSIDIES (Cont’d) 3. The client must agree, as part of the management services agreement and also part of the contract with the Stichting, to implement the training programme identified and based on a need assessment by AMSCO, and to provide periodic reports to AMSCO on the progress of the training programme including agreed targets and performance indicators.

  18. 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

  19. DETAILS OF SME’s • Small enterprises • up to 50 employees, • asset size US$3m, • turnover US$3m. • Medium enterprises • up to 300 employees, • assets size US$15m, and • turnover US$15m • Large enterprises • everything bigger than medium

  20. Portfolio Review - General Between 1989 and 2000, AMSCO appointed some 520 Managers to 240 mainly small & medium sized companies in 26 countries in Sub-Saharan Africa for an average of 3 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

  21. 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

  22. 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

  23. 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.

  24. 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.

  25. REVIEW OF SAMPLE AMSCO PROJECT IN SOUTH AFRICA BREATHETEX CORPORATION Port Elizabeth

  26. Breathetex Corp. (Pty) Ltd.An SME success story • South African CSIR develop textile technology in high performance breathable fabrics over 5 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)

  27. 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

  28. 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

  29. 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.

  30. 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)

  31. 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

  32. AMSCO HR CONTACT • Johannesburg : Pulane Mogoere (+27 11 219 5012) ( + 27 11 268 0088) e-mail : pulane@amscobv.com

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