AMSCO PRESENTATION TO AFRICARECRUIT SEMINAR

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 Projec

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

AMSCO’s shareholders include the following:

United Nations & other multi-state Institutions –

AMSCO SHAREHOLDERS (Cont’d)

One of AMSCO’s DFI shareholders is

-AMSCO SHAREHOLDERS (Cont’d)

AMSCO’s private sector stakeholders include

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

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.

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

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

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 AMSCO diplomatic immunities and privileges

SUMMARY OF AMSCO BENEFITS (Cont’d)

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

on their emoluments A possible tax break for the

businesses

effects (including a vehicle) duty-free within the first

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.

DETAILS ON AMSCO ROLE

AMSCO'S CORPORATE MANAGEMENT DEVELOPMENT PROGRAMME

FALLS UNDER THE FOLLOWING CATEGORIES:

skills and experience to client companies

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.

DETAILS ON AMSCO ROLE (Cont’d)

2 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

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.

CRITERIA FOR ALLOCATION OF STICHTING SUBSIDIES

(Cont’d)

2. 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

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

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

Portfolio Review - General

Between 1989 and 2000, AMSCO appointed

some 520 Managers to 240 mainly small &

medium sized companies in 26 countries in 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

Sub-training AMSCO currently has some 250

Managers seconded to businesses in 23

countries in Africa

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

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

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.

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.

REVIEW OF SAMPLE AMSCO PROJECT IN SOUTH AFRICA

BREATHETEX CORPORATION

Port Elizabeth

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)

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

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

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

Breathetex - The Results

 Doubled production volumes from 597,856 in

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

AMSCO HR CONTACT

 Johannesburg : Pulane Mogoere

(+27 11 219 5012) ( + 27 11 268 0088) e-mail : pulane@amscobv.com