IFAD - studijska posjeta Makedoniji

Sead Mašić: sead.masic@aldi.ba
ALDI u.g.
Goražde, 02/06/2005

U okviru IFAD projekta ˝Razvoj stočarstva i ruralnog finansiranja˝, na preporuku i uz saglasnost IFAD-a i UNOPS-a u periodu 23-27. maj 2005. godine organizovana je posjeta Republici Makedoniji. Posjetu Jedinici za koordinaciju poljoprivrednih projekata, Ministarstva za poljoprivredu, šumarstvo i vodoprivredu Republike Makedonije obavili su predstavnici:

• Jedinice za koordinaciju poljoprivrednih projekata (APCU) Ministarstva poljoprivrede, šumarstva i vodoprivrede Republike Srpske,
• Ured za koordinaciju projekata (PCU) Federalnog Ministarstva poljoprivrede, vodoprivrede i šumarstva,
• ALDI, Goražde – pružaoc usluga za MSP,
• Nove Banjalučke Banke,
• Vakufske banke,
• UPI banke.

Tokom petodnevne posjete delegacija je imala priliku da posjeti Jedinicu za koordinaciju poljoprivrednih projekata Makedonije, korisnike kredita (individualni poljoprivredni proizvođači, mala i srednja preduzeća) kao i banke koje vrše kreditiranje i da se upozna sa modelom i iskustvima u realizciji IFAD-ovog projekta u Makedoniji koji takođe finansira Međunarodni fond za razvoj poljoprivrede (IFAD).

Cilj posjete je da se kroz razmjenu iskustva određena pozitivna iskustva iz Makedonije primjene u Bosni i Hercegovini na realizaciji IFAD-ovog projekta ˝Razvoj stočarstva i ruralnog finansiranja˝.

ALDI organised visit to the 72. International Agricultural Fair in Novi Sad

Sead Mašić: sead.masic@aldi.ba
ALDI u.g.
Goražde, 23/04/2005

In scope of the project 'Livestock and Rural Finance Development' ALDI organised visit to the 72. International Agricultural Fair in Novi Sad for representatives of the enterprises that participate in the project. The visit lasted from May 17 th to May 19 th, 2005. During the visit to this Fair representatives of the enterprises had opportunity to meet the most important world achievements in agriculture, food industry and agricultural mechanisation as well as to establish contacts with other enterprises that work in field related to agriculture.

Training for SMEs in scope of the IFAD project

Sead Mašić:  sead.masic@aldi.ba
ALDI u.g.
Goražde, 07/03/2005

In scope of the IFAD project 'Livestock and Rural Finance Development' training organised by ALDI u.g. for enterprises receivers of credits from the project credit line was held from March 1 to March 4, 2005 in hotel 'Karavan' Sokolac. The Training programme was from the following areas:

• Marketing,
• Organisation and management,
• Accounting,
• Finances.

Lecturer for all mentioned subjects was Mr Fuad Tabak, M.A., one of the leading consultants in area of economics science in Bosnia and Herzegovina.

Goal of the training was, in addition to provision of sources of new investments financing, with non-financial support to development, to provide to enterprises non-financial support to development of internal capacities through trainings from the given areas. This training programme is intended to answer the needs for improvement of knowledge of small enterprises from four areas that may considerably facilitate management of small enterprises in growth. Marketing, accounting, finances and organisation of business are four very important areas of business administration that can help with enterprise management.

Business development of the company a.d. «Hladnjaca» from S.Gorazde
Goražde 22.  June 2004

Agency for Local Development Initiatives defined the detailed projection of business development for cooling plant a.d. ‘Hladnjaca’ from S. Gorazde . Long-term projection includes a detailed analytical prediction of all components of income and expenditure from one side, and sources of financing from the other side. Also, radical increase of capacities for berry fruit production was anticipated through the project and that presented a qualitative input for additional employment of 10 new workers. 

The Business plan was approved by the bank a.d. 'Nova Banjalucka banka' from Banja Luka .

In April 2004, Agency for Local Development Initiatives defined a business development plan for the company d.o.o. 'Masic company' S. Gorazde. The business plan included introduction of new technological line for tannage and processing of leather into final product. New technological line means increase of technological capacities, which is, at increased function of demand, a basis for competitive advantages achievement.  The planned number of new employments is 2 workers.

'Livestock and Rural Finance Development' project is the third project of International Fund for Agriculture Development (IFAD) for Bosnia and Herzegovina and the second one for Republic of Srpska . This project is financed by IFAD through credit for BiH. Participation of IFAD in total amount of the project is 2/3, while entity government provides 1/3. Differently from the previous two projects that had character of urgent social interventions, the 'Livestock and Rural Finance Development' project has developing character. 

Objectives and tasks in scope of the 'Livestock and Rural Finance Development' project have been defined in the Contract signed between Agency for Local Development Initiatives (ALDI) from Gorazde and Agricultural Projects Coordination Unit (APCU) from Banja Luka . The Contract has been signed on December 30, 2003 . Objective of the project is to support small and medium sized enterprises (SMEs) with special credit line and with advising services for business development of SMEs.  

In accordance with the Terms of Reference for business advising services the objectives of SMEs business development are to provide:

• Identification and appraisal of entrepreneurs’ ideas,
• Introduction with credit conditions,
• Introduction with methodology and provision of assistance with development of business plans that are suitable for commercial bank,
• Management training for enterprises that received credits.

Enterprises, potential credit recipients under this credit line should be linked with agriculture.

The following areas may be supported through the project: 

• Production and processing of milk,
• Production and processing of meat,
• Production of eggs,
• Beekeeping and honey making,
• Production and processing of fruit, vegetable and crops,
• Production of inputs and fodder crops,
• Production of mushrooms and flowers,
• Other activities relating food-processing industry.

All other non-agricultural rural activities that enable rural population to be employed and make additional income may be included in credit lines as well. Business development services provision in pilot phase of the project has been planned to be performed in period from December 30, 2003 to March 30, 2005 in the following pilot areas:   

• Municipalities of Derventa  Srpski Brod,
• Municipalities of Rogatica and Srpsko Gorazde,
• Municipalities of Kalinovik, Nevesinje and Berkovici.

All contracted activities on the project are planned to be realized in this time period.

In scope of the Contract on provision of services for business development signed between APCU and ALDI the following project components that are subject of contract were defined:

The first phase

• Project promotion,
• Business opportunities assessment,
• Advisory services provision.

The second phase

• Training organisation,
• Monitoring and evaluation.

Project promotion

During the work on the project promotion preparation it was agreed that project promotion is to be done by ALDI representatives and branch offices of Nova Banjalučka Bank representatives in charge of particular project areas, while the support regarding organisation of project presentation is to be given by representatives of departments for economy from each of seven municipalities.

During the preparation of promotion meetings the process comprising the following steps was prepared: 

• Preparation of promotion meetings with representatives of branch offices of the Nova Banjalucka Bank that were in charge of certain project area,
• Identification of potential number of small and medium sized enterprises,
• Announcement of promotion meetings through both electronic (radio and TV) and written medias,
• Direct contact and invitation sending to enterprises,
• Putting up posters and using services of agricultural producers' associations for informing on promotion meetings,
• Making of promotion materials about the project and services for business development.

In addition to ALDI representatives, branch offices of the Nova Banjalucka Bank representatives, small and medium enterprises (SMEs), representatives of agricultural cooperatives (ZZ) and associations of agricultural enterprises (UPP) the individual agricultural producers attended the promotion meetings as well. Totally 40 enterprises, 10 cooperatives and 11 agricultural associations attended the promotion meetings in all seven municipalities of the project area. Besides the aforementioned, about 250 individual persons attended the promotion meetings.

After completion of promotion meetings the staff that worked on the project contacted each enterprise which had attended the promotion meeting in order:

• That enterprise confirm its interest for the project
• To obtain precise information on type and activity of enterprises
• To obtain basic information on reasons for using the credit

During that subsequent check it was determined that 25 enterprises were interested in using the credit line.

SMEs Business Opportunities Assessment

Business opportunities assessment is the second most important project activity that was completed in the third and forth month of the project implementation.

Methodology that was used for business opportunities comprises four parts as it was described in the proposed methodology. Objective of the business opportunities assessment is:

• Determining of situation with SMEs in project areas;
• Assessment of SMEs, their activities, business opportunities and possibilities for employment of new workers; and
• Possibilities for start-up of new SMEs linked to agricultural processing sector.  During March 2004 the basic questionnaires for enterprises, municipalities and population were defined. Business opportunities assessment will be done on basis of those questionnaires.

During March 2004, the main questionnaires for enterprises, municipalities and population were defined. Business opportunities assessment of small and medium sized enterprises was done on basis of those questionnaires.

The first phase of business opportunities assessment was confirmation of interest by enterprises for credit line and participation in the project. In this phase we have contacted all enterprises that attended promotion meetings. 

After completion of this phase the terms for visits to all enterprises were agreed. Those visits started at the beginning of April 2004. After all enterprises were visited the other important economic information on municipalities will be collected from departments for economy in municipalities and through discussions with agricultural associations as well as through direct talks with farmers in the field. 

Also, parallel with those activities the public opinion in project areas regarding attitudes of population about starting up of own agricultural business was examined.

During those activities we visited 25 enterprises in all seven project municipalities.    

Current activities

For all selected SMEs that meet project criteria and that have potential ALDI is being providing advising services. After potential beneficiaries of credit line had been identified through the previous two phases and after potentials and possibilities for participation in the project were assessed in cooperation with APCU, the selected enterprises are enabled to use advising services in order to prepare their business plans and application forms for banks. Possibility that enterprises do not meet credit criteria due to technical reasons and do not use possibility to participate in the project is reduced in this way.    

The first phase of the complete project would be completed by submission of applications for credits by small and medium sized enterprises.