Integra’s SME fund in South Sudan provides risk capital and technical assistance for start up SMEs.
|Project name||Sudan SMEs|
|Location||Wau, Liethnom South Sudan|
|Date case study completed||14 June 2011|
|Contact details||Allan Bussard, Integra|
|For more information on this project contact the TBN office at firstname.lastname@example.org|
|Background, purpose and progress to date|
|What was the problem / opportunity?||Very little economic activity in South Sudan outside of Juba.|
|What is the ProjectÍs vision?||To invest in start up SMEs that provide jobs and stimulate economic activity.|
|How is this vision to be achieved?||An investment fund to which potential entrepreneurs can apply for debt or equity funding.|
|What progress has been made to date?||Businesses started: guesthouse, river boat transport, bakery, flour mill, mechanic workshop, savings and loan village bank|
|When will the project be self funding, i.e. cost covered by earned income?||External investment into these companies stopped in 2009, and all continue to function.|
|What has been the direct and indirect impact of the project to date?||Significant time savings for women in milling and preparing bread. Approximately 800 daily clients for the bakery. Market, health and other access to remote areas through renewed river transport.|
|Specifically, how many FTE jobs* have been created or sustained?||32 permanent jobs, 18 casual jobs|
|How much direct and indirect investment has been made to date?||EUR 160,000|
|What lessons have been learned? What do you know now that you wish you knew at the outset?||Stable local partnerships to provide TA and accountability is key. Businesses need to be selected based primarily on criteria of economic viability.|
|Expansion and replication|
|What are your plans to expand or replicate the project?||Currently looking to focus on commercial food production projects: honey, vegetables, gum Arabic|
|How many FTE jobs do you expect to have been created or sustained in 3 years?||approximately 80|
|What help do you need to achieve your goals?||investment funding|
|Could this project be replicated by others elsewhere? What would be needed to do this?||yes. These are not complicated businesses to set up, as long as the local partner is available for monitoring.|
|Are there documents to aid replication in the TBN resource library?||No, can be provided.|
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This description and background information was written in 2007. See case study above for most up to date information.
Proposed investment projects
In the project region, there are no businesses above the micro-enterprise size. During the Pilot Project, a thorough investigation into potential SME investments was made. Project staff as well as business development consultants and rural development specialists from Nairobi were engaged. Most importantly, the local community was involved in a discussion/awareness program to gain their input.
As a result of this process, there emerged the following recommended new business investments:
- Grain Milling: maize, wheat, sorghum, dried cassave, rice and millet
- Coooking Oil Extraction: groundnuts, sesame seeds, and sunflower seeds
- Guest House: used by government officials, aid workers and traders
- Bakery: production of bread and posta from locally grown grain or WFP food dropped grain
- River Transportation: two boats, one for goods and one for people
Each business would be locally managed, but supported by a resident business development specialist for the duration of the business launch (2-3 years).
Other potential business ideas were discussed and do merit further consideration in the future. These include: rice growing, wholesale and trucking, brick making, tailoring, pharmacy, soap making, airtime rental, solar panel sales and repairs, seedling purchase and distribution, irrigation systems, private schools, generator solar panel charging, clean burning charcoal, and a hairdresser and barber shop.
The economic level of the Liethnom area is characterised by inefficient subsistence agriculture and market trading. There are no “enterprises”. Key to the development of the community is the establishment of enterprises that can create wealth and provide employment. the goal after 5 years is to have at least 5 companies in the community that are profitable, well-run and locally owned.
The development objectives of these investments are:
- Increase incomes
- Increase employment in the project area
- Enhance skills and human capital development
- Increased agricultural production to increase food security
- Enhance diet variety
- Provision of essential goods and services
- Create profitable and sustainable businesses that contribute to the local community and economy
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