Mozal Linkages Program(IFC PEP Africa)

PEP Africa Pipeline in Mozambique

Mozlink II Tourism Anchor Project SME EDI IFC Against AIDS

Background on Linkages

Business Linkages with Mozal have evolved into a model with a strong contribution to SME development in Mozambique

SME Development Centre

- Sharing Best Practice- Benchmarking

How

SMEELP

(Mozal construction phase)

15 SMEs

$ 5,000,000 contracts

Programs

2001 2003 2004 2006 2007

The goal is to:Develop SME

CompetitivenessTransfer 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

1st Mozlink Pillar - SME Development Centre

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 Assessment Mentors/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

“Measuring and visualizing performance improvement is a key factor for SME development”

Training

• Tendering course • Business/management training

The assessment led to the identification of what types of training was required by each SME

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.

MKT Manual

Marketing, Management

HR, Stock Manag

Fin Manag

2nd Mozlink Pillar - Knowledge sharing

Mozambique Business Network ( SME network forum)

Web site

The purpose of this project is to facilitate the sharing of information between local suppliers, Corporates, the Government and Development Agencies

Topics:

•Business opportunities

•How to work with banks

•Business Conduct

•HIV in the workplace

Mozlink II Components

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

3 year program

Total cost = $ 1,5 mil

The way forward

• Supply chain analysis

• Share best practices

Mozlink phase II – New LCs joining the program

Identify common items to be

supplied locally

Limpopo Corridor Sands

Areias Pesadas do Chibuto