Duggleby & Associates, Inc. - Value Chain Financing


value chain financing banking for SME and micro finance capacity building for banks and MFIs micro and SME finance post conflict
	VALUE CHAIN ANALYSIS AND CREATIVELY FINANCING THE “GAPS” The current market for overseas business development is generating an increasing number of opportunities for US organizations to use a value chain based approach to identify growth sectors and business opportunities that will bring about near term and sustainable growth in developing and recovering economies, and to identify and implement creative products for “financing the gaps”. Successful bidders need to bring together the capacity to deliver the whole technical package required to unlock those opportunities, and do so working in a range of economic contexts including economic recovery in post conflict countries and fragile states. In response to current RFPs emerging from agencies like USAID, The World Bank and OPIC, many US contractors are able to bring in the skills and experience to do value chain assessment, identify business opportunities and make recommendations for developing them. However, in order to address lack of financing, which is almost always a constraint, the prime contractor usually needs to partner with someone that both understands the major value chains and inherent risks, and has worked with creative instruments for providing finance at all levels of the value chain (from supplier to producer credit to investment financing for the processor and export financing).
	Duggleby & Associates, Inc. has a good deal of recent experience in conducting value chain analysis and developing responsive financial products in stable and post conflict situations, in sectors where the investment is going. During the past 12 months, the firm and its Associates have developed the financial sector segments of three value chain based projects: the $547 million Millennium Challenge Corporation funded agricultural transformation project (ATP) in Ghana, the World Bank financed youth reinsertion project in Cote d’Ivoire and the Liberia Enterprise Development Fund (LEDF), which has a $20 million commitment in OPIC financing. In each of these cases, firm members have taken part directly in the screening and analysis of value chains, identification of the greatest growth potentials, assessment of the financing needs of key value chain participants and development of responsive financial products and bank capacity to offer and service them. Duggleby & Associates, Inc. brings to this process a close understanding of the major agricultural value chains and their financing, and some of the non agricultural value chains key to economic recovery. We have adapted our skills and techniques to work with business development in post conflict situations. These call for different responses in terms of assessing needs, developing an economic agenda with the key stakeholders, and continually reengaging with all players until a coherent set of interventions has been developed and agreed.	VALUE CHAIN FINANCING EXAMPLE: GHANA Manufacture of purses for export in Ghana.