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Business Advisory And Financial Services- Spotlight For The Week Of May 9, 2022.

Business Advisory and Financial Services- Spotlight for the Week of May 9, 2022.

The USAID-funded Feed the Future Uganda Inclusive Agricultural Markets (FtF IAM) Activity recently concluded a joint monitoring exercise with BiD Capital Partners (BCP), a partner business advisory firm, to assess the tangible and intangible benefits observed by agribusinesses receiving transaction advisory services. The five agribusiness beneficiaries visited are mainly agro-processors with demonstrated linkages to farmers in the FtF IAM zone of influence. The firms appreciated how BCP’s services helped them prepare company documentation, develop market and local context analyses, and supported investor matching (many of them met at least 3 investors each). In addition, they discussed the ongoing handholding that BCP provides to help them adopt improved business management practices mainly on governance and finance. It was noted that the progress in raising capital is taking time and those that had made significant progress had built trust in their relationship with BCP  and are dedicating time to the process. To date, BCP has completed due diligence for a total of 32 companies; 21 of these have moved to investment readiness and there are three companies at advanced deal-making with draft term sheets.

Open Capital Advisors (OCA), a business advisory partner that is catalyzing Gender Lens Investment (GLI) in Uganda, plans to hold its first training for enterprises in its pipeline the first two weeks of June for six inclusive businesses selected as part of the transaction advisory support. The sessions will go beyond investor readiness and business management support and cover impact measurement, leadership, and inclusive internal policies based on the gaps that OCA identified using its GLI framework. OCA has also scoped the next six inclusive businesses, now having selected a total of 12 inclusive businesses, with the aim of raising at least USD 5 million for at least six of these businesses. OCA is also planning its first learning event for the second week of July that will target a mix of businesses, investors, and enablers. OCA is preparing a 1 pager on the theme of the event and FtF IAM will share this with USAID in case there is interest to attend.

FtF IAM partner, Patasente, a factoring agent purchasing receivables from milk buyers and providing advances to milk aggregators and traders, financed the delivery of 302,374 liters of milk worth UGX 483,798,400 (es. $135,000) by its aggregators to Brookside, Amos and Rainbow Dairies at a fee of 1.5%, with payments expected within 15 days. The company also distributed point-of-sale devices (tablets) to an additional 14 dairy cooperatives, making a total of 40 dairy cooperatives with point-of-sale devices. The tablets have an MIS digital platform that will enable the cooperatives to capture and track farmers’ milk supplies as well as enable the cooperative and SHFs to access factoring and advances based on transaction history. They will also use the system to make payments, mobile money, and bank transfers using their Patasente wallets after deducting any advance payments made.  FtF IAM is considering working with Patasante to enter into the USAID 2022 Digital Development Awards.

 

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