the phytotrade africa value chain approach · • business development, smes, producer...

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The PhytoTrade Africa Value

Chain Approach

The 2nd Biodiversity Economy Indaba

Durban International Convention Centre

KwaZulu Natal, South Africa

6th November 2015

Cyril Lombard

Confidential - do not distribute

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PhytoTrade Africa

Non-profit

75 members, 9 countries in

Southern Africa

Launched 2001

Support members to develop

supply chains, products,

access markets, access

finance

Offices Harare, London,

Presence in France

South Africa office 2015

Registered Botswana and RSA


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Funding

Membership fees

Services

Donors

Government

Development impact,

income for primary

producers, alignment

with industrial

development policies,

NDP, Vision 2030s


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Team/Expertise Core team = 8, plus admin, finance and M&E

Delivery through core team, service providing

members, laboratory/expert network,

consultants

Patent attorney/biochemist

• Market know-how, connectivity, industry experience, network

• Regulatory requirements opening major markets, enabling assertion

in value chain

• Supply chain development, sustainability, traceability, certification

• New product development, innovation, directly led by market

requirements, regulatory compliance

• Business development, SMEs, producer associations, cooperatives,

inclusive models

• Access to finance


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Membership

75 members

SMEs, co-operatives,

service providers,

researchers

SMEs = ingredients

manufacturers and APs

RSA = 8 ingredient

manufacturers

RSA = 8 APs

RSA = 5 new in

process/discussion

Members sign charter –

social, environmental, ABS


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Conceptual framework


Biodiversity

SMMEs/SMEs Markets

PhytoTrade

Africa seeks to

find the sweet

spot at the

intersection of

these three

spheres, ABS

inherent X

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Value chain approach “Focal species”

Addressed supply, product

and key regulation enabling

market access for members

Baobab fruit 2003 to now =

7 factories in 5 countries

Oils = Marula, Ximenia,

Mongongo, Baobab,

Mafurra, Kalahari

melonseed

Pipeline of products

Partnership approach

evolved to ownership

model for local SMEs with

global options


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Strategy Market led, deep knowledge of trends,

industry needs

R&D funding to explore potential of

biodiversity, identify credible

opportunities

Open access to markets, regulatory

compliance

Incubate SMEs to take up the

opportunities, all with ABS compliance

Access to finance for growth


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Challenge 1 Pre-commercial: Combination of grant funding

needed from different sources for different

elements of the commercialisation process

Multiple stakeholders

Different government departments

Different donors

Different support organisation for separate parts

of the process

Stop/start, frustration/unrealised expectation

for communities, loss of industry interest, loss of

IP opportunities


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Commercialisation

process


Market knowledge

required from start

and continuously

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Challenge 2 New or small businesses in new / emerging sectors

need specialised finance to grow

Survey of 22 companies reveals they all have

difficulty obtain affordable and appropriate

finance for growth

Globally, sectors that have dynamic and rapid

growth have funds with specialised knowledge of

the sectors they’re in

The outlook is not good when the sources of

funding do not understand the market, the risks

and opportunities of a sector


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Solutions Establish sector-specific strategy, action plan, targets,

policy and best practices with regulator and industry

Fund industry associations and support organisations to

provide technical assistance to large numbers of

communities, SMMEs/SME, working across the value chain

Objective is to incubate a dynamic pipeline of viable

businesses with clear market orientation and growth

potential

Seek guarantee facilities for finance institutions to invest

into this new sector

Support the establishment of a dedicated fund where the

providers of finance have deep sectorial knowledge and an

appropriately flexible set of instruments matching the

needs of the sector


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Thank you

Questions? Confidential - do not distribute

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Strategy


SMME

SME

Develop sustainable

and inclusive supply chains

Define commercial

product, support

marketing

Facilitate access to finance

Build business skills,

management capacity

Implementation:

• PhytoTrade

team

• PhytoTrade

service

provider

members

• Members/SME

• Partners and

collaborators

the phytotrade africa value chain approach · • business development, smes, producer...

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