FRIENDS Consult’s Work on Agribusiness Capacity Building
Something that works
Under a contract with aBi Development Ltd, FRIENDS Consult Limited (FCL) has been working on the challenge of unlocking suitable financing for Uganda’s agribusiness sector amid the evolving economic landscape. Traditional grants fall far short in mobilizing the needed capital for sustainable agribusiness growth, while ordinary bank loans are often too expensive unless the enterprise shows evident viability and promise. FCL has worked to bridge this gap, for partner-agribusiness companies of aBi development, through the business advisory services targeted at increasing productivity, improving production processes, rationalizing resources, strengthening governance, streamlining financial management, greening operations and facilitating access to more affordable financing.
Approach to the solutions
FCL’s approach integrates comprehensive needs assessments with tailored BDS and technical assistance to improve the companies’ operations, products and results, thus make them more attractive to financiers. This, is phased:
- In Phase I: diagnostic evaluations identifying gaps in governance, operations, operations, sustainability, finance, and risk management and then working with the company management/ directors to address the gaps
- Phase II: transactional advisory services including developing strategic plans, bankable business plans, financial proposals, investor matchmaking, pitch decks, preparing partners for investment readiness, and working with them to approach and conclude financing with the most suitable institutions.
Emerging results and continued commitment
Using this approach, FCL has so far worked with five agribusiness companies of which two have secured suitable financing and one is about to.
This project underscores FCL’s commitment to fostering competitiveness and growth of agribusiness and other enterprise types through highly responsive advisory services. Looking ahead, FCL continues its commitment with capacity building for growth and financial inclusion of agribusiness.