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www.amsco.org OUR IMPACT STORY ZAMBIA

ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

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Page 1: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

www.amsco.org

OUR IMPACT STORY

ZAMBIA

Page 2: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

We rise by lifting others- Robert Ingersoll

“Our shared vision with AMSCO not only speaks to our values and goals but also to an Africa wide initiative to see the skills gap in the continent recede. AfDB is one of the key custodians of development initiatives and AMSCO a strong partner towards implementation. Our combined determination continues to find synergies through the practical and measurable efforts that seek to accelerate growth through skills development”

Kodeidja Diallo, Director of Private Sector Operations, African Development Bank (AfDB)

“UNDP is pleased to collaborate with AMSCO’s African Training and Management Services Project to promote Africa’s sustainable development agenda and contribute to a positive and lasting change in people’s lives”

Abdoulaye Mar Dieye, Assistant Administrator and Director, Regional Bureau for Africa, United Nations Development Programme

“The ATMS Foundation remains intimately linked to the operations of AMSCO. The Foundation has disbursed over US $6 million over the course of ATMS V to assist in achieving the objectives set up for the ATMS Project, namely growing SMEs and capacitating African employees with solid skills”

Jan Berteling, ATMS Foundation Chairman

Page 3: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

A WORD OF WELCOME

AMSCO’s ability to develop local management skills and strategically place globally experienced talent in client companies contributes to the overall growth and health of the businesses as well as the economies within which they operate. AMSCO is working with governments to specifically focus on empowering private sector enterprises, mostly SMEs, to improve their profitability and sustainability, resulting in greater employment creation and poverty eradication.

Kofi Andah – Director of Operations, AMSCO Group

AMSCO is driven by the vision to address the human capital gaps that continue to plague the continent. Working with African Governments, development role players and private sector, our aspiration is to continue building management capacity within African enterprises, and public institutions, through the provision of integrated human capital development solutions, to develop influential African leaders. Our 28 year success in partnerships with UNDP, IFC, AfDB, other role players and 29 African Governments, has given AMSCO a deep understanding that enables us to identify, co-design and implement bespoke solutions to improve skills on the continent. From agriculture, finance, education, energy, infrastructure, manufacturing, Fast Moving Consumer Goods (FMCG), Information and Communication Technology (ICT), technical services and transport sectors, skills shortage continues to be a bottleneck. We will continue to focus on meaningful and lasting impact on the continent - improving lives, growing economies and enhancing skills levels. This is an exciting time for AMSCO and we look forward to sharing the journey ahead with you.

Paul Malherbe – CEO & Managing Director, AMSCO Group

African Countries under AMSCO

Operations

20+Interventions with

revenue growth during our engagement

>80%Jobs

Supported

500 000+

1AMSCO IN ZAMBIA – Our Impact Story

Page 4: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

OUR JOURNEY ACROSS THE CONTINENT

AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria, South Africa and Zambia.

Our main aim is to advance private sector development through partnerships with governments, private companies and development agencies who share the same development goals. We do this by leveraging Public Private Partnerships (PPPs) for the socio-economic advancement of African enterprises.

AMSCO is established in the Netherlands to implement the African Training and Management Services (ATMS) Project.

A regional office opens in Nairobi, Kenya to cater for the East Africa market and in Lagos, Nigeria to cater for the Anglophone West Africa market.

Two more offices are set up – one in Ghana to serve Anglophone West Africa and another in Cameroon for the Francophone Africa market.

The new AMSCO strategy for private sector development in Africa is approved.

The AMSCO Mozambique office is established.

First office set up in Zimbabwe and launched by the former Minister of Trade and Industry Hon. Nathan Shamuyarira.

The Zimbabwe office relocates to Johannesburg, South Africa to serve as the regional office for Southern Africa and the Operational Head Office.

CEO Paul Malherbe takes over from Ayisi Makatiani to drive private sector development.

The AMSCO Zambia office is established.

1999

1989

2001

2004

2011

2016

2003

2008

2012

2

Page 5: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

SME Developm

ent

Impact M

apping

Impact D

esign

Impact A

ssess

ment

Recruitm

ent

Train

ing &

Develo

pment

Human R

esourc

e Consu

lting

ENTERPRISE DEVELOPMENT

PROGRAMMES

IMPACT

ADVISORY SERVICESDEVELOPMENT

ADVISORY SOLUTIONS

HUMAN RESOURCE

ADVISORY

Development Assistance

Programm

e Design

Programm

e Implem

entation

WHAT WE DO

Our service offering

3AMSCO IN ZAMBIA – Our Impact Story

Page 6: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

A SAMPLE OF OUR WORK

We have expertise in many different sectors but here are some stories from across the continent that we are particularly proud of.

Client: Women Business Improvement Training (WOBI) Location: South Sudan

Enterprise development training for women entrepreneurs in Juba and Nimule to strengthen their entrepreneurial and business management skills and competencies, and ability to take advantage of existing trade opportunities to increase their income.

Working in consultation with South Sudan’s Women Entrepreneurs Association (SSWEA), South Sudan Chamber of Women Entrepreneurs (CoWE) and TradeMark East Africa (TMEA), the team delivered customised interventions that resulted in 1, 371 Women in Cross Border Trade and Women Entrepreneurs being trained and 230 follow ups and assessments completed. 19 SSWEA and CoWE board members and management teams were trained to strengthen their capacity to empower and effectively support their members.

Client: La Fayette MFB Location: Nigeria

La Fayette Microfinance Bank Ltd (LMFB) was incorporated in 2012 as a state Microfinance Bank focussing on the financially underserved MSME market in Western Nigeria’s Oyo State.

Due to the dearth of skills in the micro-credit industry in Nigeria, AMSCO seconded 5 senior technical experts, including the MD, COO and CFO, to assist in setting up and managing the newly established entity. LMFB has grown significantly since commencing operations and has 8 branches within the state. The staff complement grew from 2 to 321, and the bank clientele grew from 0 to 25,962, with over US $5 million portfolio loans within 4 years. Skills transfer has taken place leading to local staff succeeding 4 of the technical experts.

EDUCATION FINANCIAL INCLUSION

MANUFACTURINGPROFESSIONAL & TECHNICAL

SERVICES

ICT GENDER

Client: DANMOZ Location: Mozambique

DANMOZ is the primary buyer of all milk produced by smallholders through four dairy cooperatives established in Manica, Mozambique.

The cooperatives have 284 farmer members and each month DANMOZ introduces +/- US $18,000 into the rural micro-economy – a total of over US $216,000 per year and growing for Manica province. AMSCO contributed with the secondment of a General Manager and a Factory Manager.

FMCG

4

Page 7: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

AGRICULTURE & FORESTRY

Client: Advans Côte d’Ivoire Location: Côte d’Ivoire

Advans Côte d’Ivoire (Advans CI) is the sixth microfinance institution to be established by international microfinance group Advans SA.

Advans CI officially opened its doors in March 2012, shortly after the Côte d’Ivoire 2010-2011 post-election crisis. To assist with the establishment of the company, AMSCO seconded three managers to Advans CI. These included a General Manager, Network Expansion Manager and SME Credit Project Manager. Just 22 months after the start of operations, Advans CI already served over 9,400 active clients for an outstanding loan portfolio of US $8.7 million.

Client: Wilderness Safaris Namibia Location: Namibia

Wilderness Safaris is a diversified safari and tour operator in Botswana which was founded in 1983.

The company has operated successfully for 21 years and has developed and built over 46 lodges throughout Southern Africa (Botswana, Malawi, Namibia, South Africa, Zambia, Zimbabwe and Seychelles). The Lodge hosts over 26 000 guests each year.

AMSCO’s assistance has been sought in sourcing, recruiting and seconding a Group Standards and Training Manager for an initial period of three years to Wilderness Safaris Namibia.

TOURISM & HOSPITALITY

HEALTH

Agriculture is an increasingly significant part

of AMSCO’s portfolio and our continued support of this sector is driven by the

knowledge that the potential for agriculture to drive

inclusive economic growth, improve food security and

create opportunities for millions of Africans

is enormous.

MICROFINANCE INFRASTRUCTURE ENERGY TRANSPORT AND

WAREHOUSING

Client: AFGRI Corporation Zambia Location: Zambia

AFGRI Corporation Zambia is a leading provider of a wide range of inputs and services to farmers in Zambia. They are also the sole agent for John Deere tractors and other related agricultural equipment in Zambia.

Since 2007, AMSCO seconded senior experts in management, grain handling and trading, agri-finance and mechanization, who have added significant value to the business. In addition, AMSCO seconded 8 technicians in 2014 and recruited graduate technician interns who are undergoing intensive training in John Deere mechanics. AFGRI has invested in a training centre that offers a 5-year full certification programme to support this project. Among the many successions and promotions, by the end of 2016, the mechanisation department alone had produced 14 apprentices, and the Finance Manager was promoted to Chief Financial Officer and Company Secretary.

5AMSCO IN ZAMBIA – Our Impact Story

Page 8: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

WHAT WE HAVE DONE IN THE LAST 10 YEARS…

2,947AMSCO managers seconded to Beneficiary Organisations

1,810Beneficiary Organisations

supported

1,886Training programmes

implemented

44%of those trained

were women

Significant numbers have

been trained on critical issues such as HIV and AIDS,

Health and Safety and Environmental

Standards.

For more than two decades, AMSCO has

supported African Enterprises through its range of training

programmes for improved efficiency, productivity, dynamic leadership and good

governance. Two of its more recent programmes are The Strategic Thinking Applied programme which

enables management teams to create their own strategies and the Family Business

Management Programme to cater for the growing number of family owned businesses

across the continent.

6

Page 9: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

…AND WHAT WE HAVE ACHIEVED IN THIS TIME

The economic impact

Our impact on the businesses we support

US $466.3 Million

Taxes paid by Beneficiary Organisations to African

Governments

41,042People trained

US $22 BillionTotal revenue of Beneficiary Organisations

>57%of managers have

started developing their local successors

US $2.5 Billion

Total net profit of Beneficiary Organisations

78%of Beneficiary Organisations

were SMEs

544,299Jobs supported

by Beneficiary Organisations

US $22.6 Million

in grant funding disbursed

AMSCO’s focus on

inclusive growth is key as client growth leads

to broad societal growth.

By contributing to the expansion

and profitability of its client companies, through its

managers and training, the ATMS Project has contributed significant revenue from taxation and customs providing host

governments with the funds needed to invest in development, relieve poverty and

deliver public services directed toward the physical and

social infrastructure required for long

term growth.

7AMSCO IN ZAMBIA – Our Impact Story

Page 10: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

A SPOTLIGHT ON DAS

OUR IMPACT

• 31 Business Development Service Providers (BDSPs) trained, and are now counselling the MSMEs on Management and Financial Skills.

• 74 MSMEs trained; who noted business improvements and have succeeded in accessing finance from financial institutions.

• Immediate follow-up mentoring and coaching by the BDSPs was done for over 51 MSMEs in Management Skills and 51 MSMEs in Financial Management Skills.

• Training conducted for 12 Business Associations.

• As a result of the partnership, an association of BDSPs was set up to ensure that the service provided to the MSMEs is up to standard and accessible.

Zambia MSME Access To Finance Programme

This programme was aimed at strengthening selected financial institutions on Micro, Small and Medium Enterprises (MSME) lending, Business Development Service Providers (BDSPs) on dealing with MSMEs, and for MSMEs on how to grow and sustain their businesses through better management and preparation of bankable proposals for funding.

OUR INVOLVEMENT

AMSCO managed the Technical Assistance (TA) grant of US $980,842 from the resources of the Fund for African Private Sector Assistance (FAPA – a trust fund led by the Government of Japan).

8

Page 11: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

OUR IMPACT

• 42 loans were advanced to GOWE beneficiaries with total financing provided being US $2.5 million.

• 254 GOWE beneficiaries were trained on Business Planning; 237 were trained in Business Strategy and 70 were training in Business Operations.

• 42 Business Development Service Providers underwent knowledge enhancement through the Training of Trainers (ToTs) programme.

• 20 Mentors were trained and equipped with appropriate mentoring skills.

• 12 Women Entrepreneurship Associations were assisted in strengthening their organisations, and 70 of their officers completed training.

• GOWE beneficiaries trained have shown at least 57% increase in employment growth.

• GOWE beneficiaries trained have experienced at least a 15% increase in turnover.

Growth Oriented Women Enterprises (GOWE)

Launched in 2006 by the African Development Bank in partnership with the International Labour Organisation, the objective was to improve the managerial capacity of women led enterprises, comprising of local banks, women’s enterprise associations and women entrepreneurs. Targeted beneficiaries were younger, educated women and the aim was to assist them in growing their businesses.

OUR INVOLVEMENT

AMSCO was appointed to manage the technical assistance component of GOWE through the implementation of ILO accredited training. The technical assistance grant managed by AMSCO was a total of US $1.7m for Kenya and US $0.5m for Cameroon.

DAS promotes:

Gender equality with focused programmes targeting female entrepreneurs.

Agri-business solutions assisting thousands of smallholder farmers with grants, capacity building and technical assistance.

Financial inclusion, implementing governance initiatives and private sector partnerships to help strengthen SMEs through financial intermediaries and access to markets.

9AMSCO IN ZAMBIA – Our Impact Story

Page 12: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

WHERE WE FOCUS 

WHAT WE VALUE 

FINANCIAL INCLUSION

We engage with the financial sector in Africa to increase capital flows to the private sector. We focus on microfinance institutions, SME finance, impact investing, micro-insurance and quasi-pension schemes targeting low income sectors.

INCLUSIVE BUSINESS

We offer direct support to SMEs and community enterprises by building their capacity to access the formal economy as credible suppliers, distributors and service providers for larger businesses. This results in well-developed SME-friendly ecosystems, access to markets and improved livelihoods for the bottom of the pyramid.

AGRICULTURE & AGRI-BUSINESS

We provide management and technical skills and training to companies engaged in agriculture. We often develop value chains from the farm to the market and support partnerships between commercial and smallholder farmers including out-grower schemes.

FRAGILE & CONFLICT-AFFECTED STATES

Targeting priority areas for economic development, AMSCO works with governments in fragile and conflict-affected states to roll out private sector development plans and address the needs of businesses for growth. We also partner with various development agencies to balance the need for human and financial capital. Ultimately AMSCO strives to develop skills, create jobs and eradicate poverty.

PEOPLEEveryone matters

PASSIONPersonifies our ambition

TEAMWORKCollaboration takes us further

EXCELLENCENothing less is acceptable

CUSTOMER SATISFACTION

The foundation of our business

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Page 13: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

OUR IMPACT ON THE BUSINESSES WE

SUPPORT IN ZAMBIA

77,659Jobs supported by

Beneficiary Organisations

603AMSCO Technical Experts seconded

to Beneficiary Organisations

332Beneficiary Organisations

AMSCO began operating in Zambia in 1993 and subsequently established the AMSCO ZAMBIA office 2012 where, to date, 603 technical experts have been placed and supported within 332 beneficiary organisations.

AMSCO’s focus in Zambia has been on the provision of integrated human capital development interventions in both the private and public sector.

Generating significant growth in both revenue and profitability for these organisations, these initiatives have also significantly increased the taxes paid by beneficiary organisations to the Zambian Government.

In addition, the skills transfer between AMSCO placed experts and local managers has contributed to the creation of resource capacity in local industry.

INTRODUCING AMSCO ZAMBIA

11AMSCO IN ZAMBIA – Our Impact Story

Page 14: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

FOCUS: ZAMBIA

OUR ECONOMIC IMPACT

US $11.4 MillionTaxes paid by

Beneficiary Organisations

80% of Beneficiary Organisations were SMEs

US $3.1 BillionTotal revenue of

Beneficiary Organisations

US $34.5 MillionTotal net profit of

Beneficiary Organisations

AMSCO has a diverse clientele ranging from small to large business entities and provides support to the following sectors in Zambia:

• Accommodation and Tourism Services• Agriculture and Forestry• Chemicals, Construction and Real Estate• Finance and Insurance• Food and Beverages• Health Care• Industrial and Consumer Products• Information Technology• Investment Vehicles• Non Metallic Mineral Product Manufacturing• Primary Metals• Professional and Technical Services• Retail• Textiles, Apparel and Leather• Transportation and Warehousing• Utility and Wholesale

Our local initiatives have significantly contributed to the economy of Zambia through income generation, skills transfer and development, social development, capacity development and market linkage promotion.

We are proud of the impact we have had on the businesses that have been supported thus far and in turn, of the positive impact that they continue to have on the Zambian economy.

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Page 15: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

Zambia’s Vision 2030 aspires to position the country as a leading and prosperous middle-income African nation by 2030.

The principles that underpin Vision 2030 are:

• Gender responsive sustainable development;

• Democracy;

• Respect for human rights;

• Good traditional and family values;

• Positive attitude towards work;

• Peaceful coexistence; and

• Private-public partnerships.

AMSCO Zambia is working hard with the Zambian Government to support the Zambian national development plans, policies and strategies.

AMSCO has ensured that its Enterprise Development Programme is aligned with the 2030 vision, with AMSCO providing the following specific services:

AMSCO believes that by supporting and leveraging both private sector companies and institutions involved in Public Private Partnerships, it can positively contribute to the socio-economic development of Zambia.

Zambians, by 2030, aspire to live in a strong and dynamic middle-income industrial nation that provides opportunities for improving the well being of all, embodying values of socio-economic justice.” Republic of Zambia: Vision 2030

Recruitment and secondment of AMSCO Technical Experts to management and technical capabilities of beneficiary organisations

Recruitment of locals to be understudied and trained by Technical Experts

Provision of training, coaching and mentoring programmes to impart and reinforce skills transfer within the beneficiary organisations

The design and implementation of the Enterprise Development Programme on a sectoral basis

13AMSCO IN ZAMBIA – Our Impact Story

Page 16: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

A LOOK AT RENT-TO-OWN

FOCUS: Zambia | SECTOR: Agribusiness and Microfinance

OUR INVOLVEMENT

In 2011, AMSCO assisted RTO with the secondment of the current Chief Executive Officer (CEO), who was mandated with the task of formulating RTO’s future direction, overseeing the implementation of the business’s strategic plans and policies as well as establishing performance measures. RTO needed the relevant systems and procedures required to carry out its mission, hence the CEO’s direction was necessary for the business.

After the secondment of the AMSCO Technical Expert, RTO began developing effective and efficient systems and procedures that assisted in managing and tracking the distribution of assets, improved payment terms through the introduction of a sales force, aligned their focus to serving specific entrepreneurs in Zambia and improved assessment of its clients’ credit worthiness. In addition, the CEO assisted with building the client base, the products and service offering, as well as a strong operational team on the ground. In 2013, AMSCO provided training to field staff and agents that was extremely beneficial as it empowered staff and agents to perform more efficiently.

THE SITUATION

Rent-to-Own (RTO) is an agricultural equipment leasing social enterprise founded by Mark Hemsworth in 2010. RTO distributes productivity-increasing assets (assets) through its local agents to micro and small scale entrepreneurs in rural Zambia.

Unlike the traditional microfinance model, RTO’s model is implemented through a unique innovative financing structure that ultimately transfers ownership of the equipment to the entrepreneurs. RTO contributes to Zambia’s economic growth by granting the entrepreneurs access to equipment to help them grow their business.

OUR IMPACT

• RTO has catalysed business growth opportunities for innovative rural entrepreneurs by building their asset base and improving their livelihoods.

• RTO has increased the availability and accessibility of productivity-increasing equipment through innovative asset financing. Since its establishment, RTO has channelled over US $1 million of productivity-increasing assets to rural entrepreneurs.

• RTO has disbursed 2000 assets of which ownership of 1300 assets were transferred to the entrepreneurs.

• Taking into account that a substantial number of Zambians live below the US $2.50 / day poverty line, RTO has been able to break the cycle of poverty by impacting approximately 15,000 Zambians (rural entrepreneurs and their households).

• RTO has expanded its field operations and now spans 8 districts and 3 provinces in Zambia.

• By demonstrating a high potential for impact and growth, the Lundin Foundation invested US $175 000 in the form of combined equity and debt to RTO in 2011.

• In 2013, RTO was featured in an article on Forbes.com entitled “How to Engineer a Changemaker: George Roter’s Engineers Without Borders (Canada) Model.”

“AMSCO played a key role in formalising the business into more of a corporate structure where we were able to scale up from having one hundred clients to three hundred clients. Having AMSCO work with us has been one of the important elements in that growth.”

– Mark Hemsworth, CEO, Rent-To-Own

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Page 17: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

Sustainable Development

Goals (SDGs)

MOST RECENT AWARDS

• RTO was recently selected as a new investee by the African Enterprise Challenge Fund (AECF), placing RTO at the receiving end of a US $500,000 interest free loan that is repayable starting in 2017. In addition to the loan, RTO received a US $200,000 grant.

• In 2011, RTO’s Founder, Mr Mark Hemsworth was chosen to join the prestigious Rainer Arnold Fellowship programme. The programme consists of exceptional individuals that have the passion and innovative ideas to impact those living in poverty.

221% Company growth from an initial

14 to currently 45 employees

275% Growth from 20 RTO agents

to 75 agents

Over 3,000 Indirect jobs created

1,850Clients served

US $2.5 Million+ Value of assets disbursed since 2010

ZK 8 Million Revenue in 2016

5x Increase In taxes paid (PAYE, NAPSA and

withholding tax). More than ZK 1 Million has been paid in taxes

Gender Equality Contact points in the field have

changed from previously being 100% men to now being 50% women

Innovation and Technology

• Use of centralised cloud-based management systems which keep each member of the RTO team up-to-date with the latest information on clients

• Use of an automated SMS system to send client reminders and keep them informed of the status of their applications

• Field staff are equipped with tablets which allow them to provide instant feedback from the field

• Introducing new technology for rural entrepreneurs to use solar products

• Uses Zoona to process payments from its clients which allows for the instant processing of payments and provides the clients with the added payment security

IMPACT STATSDuring the period 2010 to 2016

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Page 18: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

OUR INVOLVEMENT

In 2013, AMSCO partnered with Seed Co Limited and MUSIKA to assist in equipping agro-dealers with business skills that would allow them to reach their full potential in agro-inputs, distribution and farm productivity.

The partnership was aimed at building the entrepreneurial acumen of the agro-dealers as well as catalysing the development of last-mile agro-dealer outlets to increase sales. MUSIKA, through Seed Co, provided containers to the agro-dealers in the various highly productive rural markets. AMSCO facilitated a business improvement training programme for the 40 selected Seed Co agro-dealers. The training modules included:

• Marketing;

• Financial Planning;

• Stock Control;

• Customer Relations (people and productivity); and

• Costing, Buying and Record-Keeping.

OUR IMPACT

• After one financial year, the agro-dealers reported an increase in stocks and sales, with some also being able to buy their own distribution trucks.

• After the training, there was an increase in the monthly income:

‒ Off-peak season: US $2000 to US $3000 ‒ Peak season: US $6000 to US $8000

• The volume of hybrid seed for the 2013/14 season outgrew the plan by 84% in one of the regions where Seed Co operates.

• The agro-dealers no longer have to travel long distances to purchase their agro-inputs.

• 66% of the agro-dealers increased their monthly sales by over 30%.

• 30% of agro-dealers increased their sales between 10% and 30%.

A LOOK AT SEED CO LIMITED

FOCUS: Zambia | SECTOR: Agriculture and Agribusiness

THE SITUATION

Seed Co Limited is the leading African seed company listed on the Zimbabwean stock exchange and with its group head office based in Harare. Seed Co Zambia is a subsidiary of Seed Co International and began its operations in Zambia in 1997.

Seed Co Zambia operates a centralised processing factory at the Seed Co Business Complex with a packing capacity of about 300 tons per day. This gives the company great efficiency in meeting big seed orders within a short period of time. With the distribution network anchored around nine depots that are strategically located across the country, seed has been taken closer to the farmers. The depots are supplemented by a network of 800 appointed stockists across the country. In addition, the company has placed container sales points across the country in key agricultural catchment areas.

A few years ago, Seed Co realised that there was a serious lack of agro-dealers skilled in business acumen which impeded their potential to grow their businesses and increase their supply of hybrid seeds.

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Page 19: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

Sustainable Development Goals (SDGs)

“Seed Co has derived long-term sustainable benefits which has assisted in building the value chain in the Zambian agricultural sector.”

– SEED CO

IMPACT STATSDuring the period 2013 to 2014

700 Agro-dealers across Zambia

Over 450 Distributors

Revenue Seed Co turnover grew by

15% to US $30.7M in 2013

375% Growth in sales achieved,

with 473 tons sold

17% Increase in seed volumes

Innovation and technology

• The Zambian centralised processing factory in Lusaka has a packing capacity of over 300 metric tons per day

• All depots are linked to sales software

• All agro-dealers are linked to digital platforms which have built connectivity and eased communication amongst one another

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Page 20: ZAMBIA - amsco.org · OUR JOURNEY ACROSS THE CONTINENT AMSCO is currently active in 20 countries in Sub-Saharan Africa with offices in Ghana, Cameroon, Kenya, Mozambique, Nigeria,

OUR INVOLVEMENT

The Finnish Embassy contracted AMSCO to strengthen the capacity of MICL and NICL to provide technical assistance to various aspects of the project pertaining to governance, management systems and processes and human resources. This resulted in AMSCO facilitating a training programme for the board, MICL and NICL staff and farmers.

A total of 142 farmers (MICL) and 100 farmers (NICL) were trained, enhancing their understanding of their roles as employees and shareholders of the company. The training also improved the farmers’ knowledge in financial management which greatly assisted them in running their businesses and households.

AMSCO provided institutional management support to the governance systems of MICL and NICL by reviewing the organisational structure of each business, by providing advice on board composition, and developing a board charter to strengthen the capacity of the board. As a result, the board members took part in a Corporate Governance Programme which has resulted in the Board of Directors taking charge of the business.

AMSCO also facilitated the recruitment of the General Managers, Irrigation Engineers, Agronomists and Finance Managers for MICL and NICL.

OUR IMPACT

• As a result of the project, the institutional capacities both at MICL and NICL were strengthened through the training of the established boards and management teams. MICL and NICL now have fully constituted boards that are already making decisions for the benefit of the shareholder farmers.

• Increased revenue of the companies through expanding the area under irrigated agriculture.

• By establishing the companies, the schemes at Manyonyo (MICL) have become linked to large commercial outgrower operators. Zambia Sugar has provided a market quota of 595 Ha and MICL has already sold 2 batches of sugarcane to them, putting them in the position to be able to soon declare a profit share to the farmers.

• MICL elected a female as the first board chairperson and developed six small-scale irrigation schemes in Mazabuka and Sinazongwe Districts for crop production.

• Increased income generating opportunities of the small scale farmers in the Mazabuka and Sinazongwe Districts.

• AMSCO introduced Vision Fund Zambia (MFI) and Madison Finance (SME Finance) to the farmers at MCIL through a financial literacy programme. This is expected to open doors to access to finance.

FOCUS: Zambia | SECTOR: Agriculture and Agribusiness

A LOOK AT THE EMBASSY OF FINLAND IN LUSAKA AND ITS PARTNERSHIP WITH THE SMALL SCALE IRRIGATION PROJECT (SSIP) IN THE MINISTRY OF AGRICULTURE

THE SITUATION

Irrigation plays a pivotal role in the Zambian agricultural sector as articulated in the National Agricultural Investment Plan (NAIP), the National Agricultural Policy (NAP) and the Revised National Development Plan (R-SNDP). It is against this background that the government of Zambia, through the Ministry of Agriculture and Livestock, has been establishing irrigation systems across the various provinces in Zambia. With support from various stakeholders, the government of Zambia commenced with the Small-Scale Irrigation Project (SSIP). SSIP strives to improve the livelihoods of farming communities in Zambia. The project received funding from the Embassy of Finland in Lusaka, Zambia and, in partnership with AMSCO, the Small Scale Irrigation Project (SIP) and the Ministry of Agriculture and Livestock, the project has formalised two farmer aggregator companies, the Manyonyo Irrigation Company Limited (MICL) near Mazabuka and the Nzenga Irrigation Company Limited (NICL) in Sinazongwe.

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Sustainable Development Goals (SDGs)

“The project has significantly assisted the farmers in the Mazabuka and Sinazongwe districts in contributing towards economic growth, food security and improving their livelihood which is critical for Zambia’s future.”

– Mr G Phiri – National Coordinator, Upscaling Smallholder Irrigating Project (USIP) for the Ministry of Agriculture

IMPACT STATSDuring the period 2015 to 2016

242 Farmers were trained

1,200 Beneficiary population

164 Farmers irrigating at Manyonyo

US $9.2 Million Cost of infrastructure at

both MICL & NICL

Women and Youth

Women and youth are actively involved in the scheme governance and allocation of plots

Over 500 Youth employed during the

project’s construction phase

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CLIENT HIGHLIGHTS 

AGRICULTURE /AQUACULTURE

AMSCO’s secondment of a Head of Farming Operations, Grow Out Manager, Hatchery Manger and Technical Manager has resulted in a fully established aquaculture operation, ready to achieve its targets.

FINANCIAL SERVICES

AMSCO’s secondment of a Chief Financial Officer has increased revenue; improved company reporting and the timely submission of reports to the Bank of Zambia; and introduced innovation for data collection and information sharing.

MANUFACTURING

AMSCO’s secondment of a Financial Controller and an Operations Manager has led to increased number of employees, increased revenue and expanded product offerings.

FINANCIAL SERVICES

AMSCO’s secondment of a CEO has led to improved debt collection, increased clientele through new product development and a turnaround of the company.

LIFE INSURANCE

AMSCO recruited and placed a GM- Sales and Marketing, GM- Technical & Operations and a Head of Health Insurance. This has led to an increase in shareholder returns and improved company performance. AMSCO provided funding of US $760,000, and conducted training across the company at various levels.

AGRICULTURE

AMSCO’s secondment of a Chief Financial Officer has led to improved financial controls and increased revenue.

FINANCIAL SERVICES

AMSCO’s secondment of a Chief Operations Officer has contributed to the company’s turnaround from a loss to a profit making operation. The company achieved a strong overall rating of A- from the Credit Rating Agency Limited (CRA). Cavmont Bank is the second bank in Zambia, after ZANACO, to have undergone a credit assessment by the ratings agency.

AGRICULTURE

AMSCO’s secondment of a Managing Director, Emerging Farmers Project Investment Coordinator, Mechanisation Spares & Field Services Manager, Head of Grain Management, Mechanisation Manager and 6 Technicians has led to improved and timely servicing of John Deere equipment, training and mentorship of apprentice technicians and the promotion of local staff into management positions.ENERGY

AMSCO’s secondment of a CEO, Chief Financial Officer and Finance Manager led to the successful installation of a 300MW thermal power plant that generates power for uptake by the national power utility company ZESCO, reducing the interruptions of power supply to the public. An additional 300MW thermal power plant is under construction. This is the second phase of the project and should be completed in the next two years.

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OUR COMMITMENT

If you wish to move mountains tomorrow,

you must start by lifting stones today.

– African proverb

We are committed to supporting the Government of Zambia in realising the objectives of the National Development Plan particularly through our work with SMEs. Our interventions will continue to support the increased contribution of the private sector to economic development through higher productivity, payment of taxes, empowering women and youth, and the creation of quality jobs.

Our legacy is built on a passion for developing people, combined with our ongoing ambition to turn Sub-Saharan SMEs into thriving African enterprises, through the provision of bespoke human capital solutions.

We will continue to offer comprehensive, integrated services that include tailor-made development programmes designed to fulfil the unique needs of the private and public sector in Zambia, and in Southern Africa. Our goal is to assist African enterprises in becoming globally competitive, profitable and sustainable.

Andrew Bamugye, Head of Operations – Zambia

21AMSCO IN ZAMBIA – Our Impact Story

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www.amsco.org

STATUTORY HEAD OFFICE

AMSCO BV Claude Debussylaan 10 1082 MD Amsterdam The Netherlands

T +31 20 664 1916

OPERATIONAL HEAD OFFICE

33 Fricker Road Illovo Boulevard Illovo Johannesburg

T +27 11 219 5000 F +27 11 268 0088

CAMEROON

783, Rue Tokoto Bonapriso P.O. Box 4616 Douala

T +237 33 423 311 F +237 33 423 312

GHANA

Capital Place, Block C 11 Patrice Lumumba Road Airport Residential Accra

T +233 30 702 1239/40

KENYAACS Plaza, 2nd Floor Lenana Road Nairobi

T +254 20 244 1500 F +254 20 387 038

MOZAMBIQUEADCORP Offices Bairro Malhangalene “A” Rua da Amizade N° 89, 1° Andar Maputo

T1 +258 84 524 5822 T2 +258 82 011 5630

NIGERIABlock A, Apartment 1 13 Glover Road off Alfred Rilwanu Road, Ikoyi Lagos

T +234 16 320 820/1

ZAMBIAPlot 3662, Philomena Chambers Suite B, 1st Floor Cnr Njoka/Chakeluka Roads Olympia Lusaka

T +260 21 129 5943 F +260 21 129 5944

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