Partnership and Ventures:

MIS Advisory Appointed by the Bank of Industry

MIS Advisory Partners with USAID on its Trade Hub Project

 

In a bid to address challenge of access to credit for SMEs, and to hasten the credit delivery process, the Bank of Industry (BOI) has signed service agreements, engaging some Business Development Service Providers (BDSPs) to increase SMEs' capacity to apply for and secure financing from the Bank.

MIS Advisory is one of the Business Development Service Providers appointed by the BoI to cover the South West Zone.

This move had become imperative because even though SMEs account for over 90% of the companies in Nigeria, account for half of the nation's GDP, and provides employment for more than 30% of its populace, many SMEs have not been able to attract funding because of poorly packaged and non-bankable business plans and proposals submitted to secure funds.

This strategic partnership with BDSPs was in furtherance of the Bank's core mandate "of providing long-term financial and business support services to large, medium and small projects".

MANDATE
Our mandates under the relationship mentioned above include:
  • Identifying credible SMEs that require finance;
  • Developing bankable business plans and proposals for and facilitate their access to finance;
  • Ensuring that a sound business model is developed and presented.

Other services are to provide post-finance services such as mentorship, hand-holding, financial advice and encouraging SMEs to inculcate best practice; while supporting SMEs to develop synergies and linkages with large enterprises, industrial buyers and suppliers along the value chain.

FUNDING FOCUS
Target funding focus is capital expenditure/ asset procurement/ expansion of production facility within the Southwest zone in Nigeria (No services, property development).

Fund size ranges from N20 million to N400 million. The funding is typically term loans, collateralized (150% cover) and does not cover refinancing or working capital on a stand-alone.

 

MIS Advisory and our partner Star Capital Partners has been appointed by the USAID as a Subcontractor under its Trade Hub Project.

Under this partnership; we are expected to:
  • Identify qualifying agriculture focused businesses in West Africa;
  • Help develop business plans/information memorandum, investors' presentation, financial model;
  • Work with them to access funding from investment firms/ financial institutions.

The fees for the Consultancy and Fundraising works carried out by MIS Advisory and Star Capital Partners will be paid for by the USAID Trade Hub Technical Assistance Grant.
The Trade Hub is a regional program intended to increase food security and economic growth in Africa. The project has three integrated components designed to:
  • Expand access to finance and investment, both directly and by growing a regional cadre of financial facilitators or business service providers.
  • Build regional and global trade linkages
  • Streamline regional transport and trade policies through collaboration with advocacy and industry partners.

Launched in March 2014, this USAID project will help West African farmers and firms throughout the 21-country USAID/West Africa region compete, attract investment to the region, and boost regional trade and global trade with the rest of the world.

The Crops covered under the project are:
  • Cashew
  • Shea butter
  • Mango
  • Cassava
  • Rice
  • Maize
  • Palm Oil

Parts of the value chain covered are:

  • Planting/ Cropping
  • Packaging
  • Processing
  • Logistics