Centre for the Development of Enterprise

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Centre for the Development of Enterprise

• Caribbean Regional Field Office Proposed
  Priority Areas 2009 -2010

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CDE -Centre for the Development of Enterprise

• An institution of the ACP Group and the EU
  under Cotonou Agreement (since 1977)
• Supports the sustainable development of the ACP
  private sector
• Financed by the European Development Fund (EDF)

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CDE Structure

• CDEs headquarters is in Brussels
• There are 4 regional field offices (West, East
  and Southern Africa and the Caribbean and two
  more are being planned (Pacific and Central
  Africa)
• The regional field office for the Caribbean is in
  Dominican Republic
• It supports CDEs operations in the 15 CARIFORUM
  member countries and is responsible for
• Identifying potential programmes/projects
  consistent with the needs of the region
• Collaborating with other development partners in
  joint initiatives
• Facilitating better communication with
  beneficiaries
• Ensuring more efficient processing of requests
  and management of contracts.

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The CDE intervenes

• Through Programmes

• Increasingly, CDE interventions are being
  undertaken within the framework of global
  sector Programmes (In 2009 there are ten
  programmes for about 2/3 of the CDEs operational
  budget and for specific regions)
• Activities or mini-programmes initiated in
  each region (national or regional base) for group
  of enterprises in priority sectors.

• Through Ad Hoc Assistance

• In response to individual requests
• Preferably in regions not sufficiently covered by
  the sector programmes.

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Ad hoc projects

• Key eligibility criteria

• Private sector SMEs legally established in an ACP
  country
• Net assets of at least 80.000 and/or a turnover
  of 250.000
• Maximum net assets 10 m
• At least five employees
• If new enterprise same amounts of investments,
  turnover and jobs forecast
• Commitment to contribute at least one-third of
  the expenditures eligible for assistance
• Compliance with international codes of good
  conduct (working conditions and environmental
  impact).

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Amount of grant

• Maximum 50,000 /year per enterprise with a limit
  of 2/3 of the amount of assistance required
• The enterprise is expected to contribute 1/3 of
  the costs
• CDEs contribution is decided after a review of
  the application by a project committee
• No contribution to current investments and
  expenditures.
• NOTE the contracting party can be the ACP
  promoter, the EU partner or a Consultant but the
  beneficiary is always the ACP organisation.
• How consultants are selected
• lt 5.000 by mutual agreement
• Between 5.000 et 200.000 market
  consultation.

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Global Sector Programmes 2009
Programmes
CDE is actively negotiating with partner
institutions ways to expand the scope of these
programmes
CAR 9.0
EAF 25.8
PAC 3.0
CAF 15.8
SAF 18.5
WAF 27.9
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General remarks for CDEs global Programmes

• Purpose
• Identify and select sectors and activities with
  highest potential for social and economic
  development in ACP countries.
• Benefits
• Better knowledge of selected sectors and
  transversal activities
• Lower average cost per intervention, hence more
  SMEs can be assisted
• Improved ability to promote inter-enterprise
  partnerships
• Better complementarity and coherence with the
  priorities of other development actors
• Prompt and effective response to requests for
  assistance
• Higher efficiency by grouped assistance
• More visibility of CDE-ProInvest actors in the
  field.

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Proposed Priorities Sectors for the Caribbean
Region 2009 -2010

• Agro- Industry
• Manufacturing (mainly Agro-Processing)
• Engineering and Maintenance services by
• SMEs in Mining, Oil Gas, Quarrying,
  Bauxite
• Energy Management - consistent with the CDE
  global project
• Competiveness in Tourism services
• focused on product enhancement and market
  access
• Marine Industrial services
• Forestry, Wood and Furniture consistent with
  CDE global programme for this sector
• ICT professionals service providers
• SME Investment Support Programme consistent
  with CDE global programme

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The Proposed Priorities for the Caribbean have
been determined based on

• CDEs Mandate including a recent review and
  recommendations which also considered the
  CARIFORUM EU EPA
• Studies such as the recent CDE/ UNIDO study on
  Competitiveness and Innovation requested by
  Cariforum
• Requests from and discussions with various sector
  groups
• CDEs own experience and reports of our network
  in the region.

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Agro-Industry

• Proposed Objectives
• Mechanization and the introduction of more
  scientific approaches to agriculture
• New product development and development of niche,
  high end markets, such as organic foods and areas
  where the Caribbean can be competitive (high
  quality cocoa, coffee) among others.
• Justification
• the agricultural sector is a significant
  contributor to GDP in many of the countries of
  the region
• Rising world food prices and other concerns such
  as health and internal security have made agro
  industry a priority sector for most CARIFORUM
  states
• The Caribbean region has relatively high labour
  costs and other challenges in attracting labour
  to agriculture and therefore programmes in
  agriculture must encourage the introduction of
  technology and mechanism.

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Agro-Industry

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• The Cocoa Industry for 7 CAR countries
  addressing
• market access, quality management, value added
  products,
• labour and mechanization through possible
  solutions such
• as a technical centre/ demonstration projects
• Coffee for DOR a mini programme to address
  market access
• Dairy for DOR a mini programmes to address
  Good Manufacturing Practices
• Vegetables and tropical fruit introduction of
  technology such as green house technology and
  ICT in agriculture addressing such issues as
  traceability
• Seafood and fisheries for GUYSUR, BEL a mini
  programme to address HACCP certification.

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Manufacturing (mainly agro-procesing)

• Proposed Objectives
• Measures to reduce operating costs and increase
  efficiency
• Modernization of plant and equipment
• Introduction of standards to support market
  access including GMP, Food Safety, Environmental
  Management, Quality Management.
• Justification
• The manufacturing sector is not competitive due
  to high production costs resulting from small
  production volumes , high energy and wage costs
  and less competitive financing costs
• In terms of contribution to GDP, manufacturing is
  most important in Dominican Republic, Jamaica,
  Guyana and Suriname and in Trinidad and Tobago.

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Manufacturing

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• Introduction of Integrated Management Systems
  IMS ( Food Safety and Environmental Management)
  for groups 1 proposed in the OECS
• Quality Management programme in the Dominican
  Republic This is a priority area for the Export
  Promotion agency who has embarked on an
  initiative to encourage the introduction of ISO
  standards in the country
• Plant, facilities upgrades - CDE has received a
  number of individual Ad hoc requests from SMEs
  for example in Suriname for support in plant,
  facilities upgrades. These could be grouped.

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Engineering and Maintenance By SMEs in Mining,
Oil Gas, Quarrying and Bauxite)

• Proposed Objectives
• Support to projects that encourage more local
  content, linkages with the local economy and
  other sectors
• Support for the Introduction of Environmental
  Management Standards.
• Justification
• These sectors are important contributors to GDP
  in, Guyana, Jamaica, Suriname and Trinidad and
  Tobago
• Sustainable impact requires more involvement of
  local service providers
• They traditionally have low linkages with the
  rest of the economy. Where the local players
  have opportunities to provide services, the local
  players must be internationally competitive
• Increasing concerns about green house emissions
  and global warming, require improved environment
  management standards and systems.

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Engineering and Maintenance By SMEs in Mining,
Oil Gas, Quarrying and Bauxite)

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• Activity for building the capacity of road
  maintenance contractors and subcontractors in
  Haiti
• Capacity building of companies in the Mining
  Quarry Association of Jamaica in collaboration
  with the Mines Geology Division of Jamaica and
  in particular support for a Mission to HillHead
  Quarrying Exhibition 2009
• A mini programme has been developed for the SME
  service providers operating in the Oil and Gas
  sectors in Trinidad and Tobago. The project
  proposes competency analysis and development of
  63 jobs where SMEs can provide services, gap
  analysis among SMEs and capacity building of
  companies in common areas of needs. The project
  will ensure sustainability through training and
  accreditation.

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Supporting Optimal Energy Management

• Proposed Objectives
• Consistent with the theme of CDE global Energy
  Management
• Programme Contribute to overall competitiveness
  and environmental performance of ACP industries
  by optimizing their energy consumption
• and assisting the development of cost effective
  renewable energy sources.
• Justification
• Energy costs is a significant operational cost
  for CARIFORUM countries and in particular, the
  OECS countries, Haiti and Dominican Republic are
  vulnerable
• Across all industries but in particular in the
  tourism sector, energy cost impacts on
  competitiveness. The sector is dominated by small
  and medium sized independent enterprises with 75
  rooms or less. The current high and rising price
  of fuel and cost of electricity which is a major
  operating cost add to the challenges faced by the
  sector.

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Supporting Optimal Energy Management

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• CDE is requesting presentation of requests for
  proposals for Supporting Optimal Energy
  Management by SMEs
• CDE will also participate in a CHTA/ IADB
  initiative The Caribbean Hotel Energy Efficiency
  Action Programme (CHENACT) project where CDE
  would be involved in Assessing energy consumption
  patterns of Caribbean hotels and defining options
  for reducing energy consumption, thereby
  effecting cost savings and improving competitive
  potential.

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Competiveness in Tourism

• Proposed Objectives
• Upgrading and improving the overall product
  offering and standards of the hotel sector
• Assistance in repositioning and developing niche,
  higher end markets.
• Justification
• Tourism is a major contributor to GDP in most
  economies of the region but the product is mature
  and diversity and renovation is required
• Minimum international standards such as food
  safety and sanitation as well as environmental
  management support efforts to reduce energy
  costs but also support sustainable use of natural
  resources and contribute to product enhancement
• Linkages with local economy are also important to
  increase the impact of tourism spend and further
  enhance the product.

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Competiveness in Tourism

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• IMS programmes- CDE is assisting two groups of
  small hotels in Jamaica (5 hotels) and in
  Trinidad (7 hotels) with the implementation of
  Integrated Management Systems addressing Food
  Safety and Sanitation as well as Environmental
  Standards to HACCP or ISO 22000 standards and
  Green Globe respectively
• Reposition and market access a possible
  programme for small group in Jamaica is also
  being considered which would involve an
  assessment of physical and other improvements
  required to serve targeted markets and support in
  market access.

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Marine Industry

• Proposed Objectives
• Support for projects promoting specialized marine
  human resource skills development and
  introduction of environmental standards and
  market expansion.
• Justification
• Studies conducted in 8 countries in the region by
  UN-ECLAC showed that the Marine industry
  contributed more to the economies in terms of
  long term sustainable development than cruise
  tourism. The marine industry comprises the boat
  yards, mariners and service providers marine
  woodworking, fabrication, sail making, mechanics,
  electricians, suppliers, restaurants etc.
  catering to visiting and local yachts, charter
  boats and local leisure crafts and boats
• Following a PROINVEST initiative in the industry,
  a regional body was formed and a number of
  priority areas for developing the industry were
  established.

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Marine Industry

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• Possible programme for OECS mariners under the
  umbrella of Caribbean Marine Association (CMA)
  http//www.caribbeanmarineassociation.com/

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Forestry, Wood and Furniture

• Proposed Objectives
• Consistent with CDE global programme for this
  sector - development of Sustainable Forest
  Management (SFM), downstream processing (DP) and
  export of value added products.
• Justification
• Although furniture is not a priority industry in
  any of the countries of the region, it has very
  strong linkages with the tourism, construction
  and related industries
• There are also a large number of manufacturers
  throughout the region and employment generated
  from these industries is significant.

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Forestry, Wood and Furniture

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• Furniture sector programme in the Dominican
  Republic
• Supported by CDE with a consortium of 4 Spanish
  technical centres specialized in wood and
  furniture
• The first phase is to establish a strategic plan
  to develop the competitiveness of the sector and
  a second phase is envisaged comprising training
  and technical assistance in such areas as
• Supply management
• Production systems
• Furniture systems
• Furniture design
• Finishing and glues
• Computer assisted design
• Marketing
• Costing

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Building Capacities In The ICT Sector

• Proposed Objectives
• Capacity building of ICT service providers and
  support for market access in the higher end
  products and services.
• Justification
• ICT has an important role to play as an enabler
  of competitiveness of SMEs, competitiveness of
  CARIFORUM countries as a whole and as an
  important sector in its own right
• Because of the regions relatively high wage
  costs, but at the same time its strengths in
  terms of the level of education, it is felt that
  the Caribbean should focus more on the higher end
  ICT services
• CDEs support will focus on strengthening the ICT
  providers to develop better products in software,
  consultancy and training services to SMEs to
  increase their adoption of technology.

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Building Capacities In The ICT Sector

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• Jamaica Computer Society (JCS) sector analysis
  and strategy and participation at CeBIT 2009
  Trade Show
• Support to Association Haitienne pour le
  Développement des Technologies de lInformation
  et de la Communication (AHTIC) - Participation
  in the Technology Fair in Dominican Republic
  (TEDCO)
• Consistent with CDE sector programmes, the CAR-
  RFO will encourage requests to Support promotion
  of open source software in SMEs.

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SME Investment Support Programme

• Proposed Objectives
• Consistent with CDE global programme, CDE will
  work in partnership with selected regional risk
  capital/ equity investment entities to improve
  the SME investment process via targeted
  pre-investment technical appraisals.
• Justification
• There is a need to strengthen the technical and
  market aspects of many SME projects in the
  process of accessing investment capital. The
  idea of this facility is to evaluate and
  strengthen the technical and market aspects,
  present the information and risks so that
  investors could make an informed decision.

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SME Investment Support Programme

• Proposed Mini Programmes or Activities for Groups
  of Enterprise
• CDE already has one pilot programme in the region
  with Caribbean Development Capital Limited
  (DEVCAP) and is currently assessing other
  potential partners who operate at a regional
  level and who are involved in equity investments
• SME Diagnostic assessments using the Fundes
  Diagnostic Tool for assessing enterprises.

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Estimates if Programmes are implemented between
2009 to December 2010

• Agro industry 418,714.00 28
• Manufacturing/Agro processing 341,000.00
  23
• Engineering and Maintenance by SMEs 247,336.10
  16
• Energy 150,000.00 10
• Tourism 110,226.53 7
• Furniture 95,497.00 6
• SME Investment Support 61,554.00 4
• Marine 50,000.00 3
• ICT 31,977.00 2
• Total 1,506,304.63 100

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CDE Global Achievements over the last 10 years
4,000 ACP enterprises have been assisted by CDE
through some 6,500 interventions

• Geographical distribution

• Sectoral distribution