FSC Development Services Ltd

International Trade Partnership Solutions

BUSINESS DEVELOPMENT SUPPORT FUNDS AND INVESTMENT FINANCE

Developing new business, especially in some of the new emerging markets in Asia, Africa and Southern America, can be expensive, time consuming and require specialist advice. Initiating and developing sustainable partnerships and projects may also need innovative investment and financial partners who understand the business environment in these markets. Fortunately there are a number of programmes, supported by Governments and development/donor institutions, which are designed to assist companies and organisations, both in the UK/Europe and in the markets, undertake research, training and identify assistance and investment.

BUSINESS DEVELOPMENT SUPPORT FUNDS and FACILITIES

There are a range of programmes and funds available to help small/medium sized businesses i.e. SMEs, access new international markets, identify partners, undertake training and introduce new technology.

In the UK the first “port of call” for any business should be their local Business link, Chamber of Commerce or regional International Trade Office. These organisations may be able to help with advice and also indicate any assistance available e.g. to undertake specific training or put together strategy/business plans. For instance the Passport for Export scheme is a programme which is tailored to the needs of new exporters. Additional assistance to undertake market surveys etc can be obtained through the Export Market Research Scheme, operated by the British Chambers of Commerce.

Examples of relevant programmes are:
EASTERN AND CENTRAL EUROPE Since the accession of eight former East European countries into the EU in 2004, programmes such as PHARE have been concluded. However, the TACIS programme for other Eastern European and Central Asia companies is still current and has a range of programmes which include support to private sector and assistance for economic development.

Many of the former Eastern European and Central Asia countries have specific trade, investment and private sector development programmes supported by the EU e.g. through the EBRD (European Bank of Reconstruction and Development. UK/European companies having interest in a specific country in this region should contact FSC Development Services Ltd who can assist in identifying relevant programmes.

AFRICA, CARIBBEAN, PACIFIC
Centre for the Development of Enterprise (CDE) - based in Brussels which can provide assistance for companies wishing to investment and develop partnerships between companies in ACP countries i.e. Africa, Caribbean and the Pacific and in the EU. This can include market/partner research, business planning, technical assistance and training.
Pro€Invest (affiliated to CDE) - assists with the promotion of investment and technical flows to enterprises in the ACP countries, by supporting ACP intermediary organisations and business associations. Typically this would involve programmes involving organisations in more than one country in the EU and a matching organisation(s) in an ACP country(s).

ASIA (including China & India)
Asia-Invest (EU) – provides a range of services, primarily accessed through business development organisations e.g. through implementing Matchmaking Activities, for companies (particularly SMEs) to internationalise their business strategies and facilitate business co-operation between companies in the EU and Asia.

There are a number of EU business support programmes e.g. Small Business programme, which are operated through the EU offices in China. The EU World Trade Office can also assist with contacts and trade information.

LATIN AMERICA (including Mexico)
Al-Invest (EU) – is a similar programme (to Asia-Invest) to promote investment and commercial relations between European and Latin American companies, including know-how and technology transfer to Latin American SMEs.

INVESTMENTS AND LOANS

Once a partnership and/or investment opportunity has been identified additional capital is frequently required. The first phone call by the company should be to their own bank to investigate what branches or “correspondent banks” and other contacts they may have in the targeted country. Failing this there are dedicated institutions which provide loans, investment and other financial support, especially in developing countries and emerging markets. Increasingly there are also venture capital, leasing and hire purchase providers in these countries, often backed by international institutions

.It is essential that you should contact these financial providers at an early stage of the partnership or project development. In many cases they may know your prospective partner and also be able to help you identify other service providers such as lawyers, accountants etc.

Examples of major organisations are:
Africa Development Bank (AFDB) – Provides equity and loans for growth businesses, including partnerships, throughout Africa.
Asian Development Bank (ADB) – supports private sector projects which have clear developmental impact in the financial and infrastructure sectors. This is normally through loans and equity investment.
European Investment Bank (EIB) provides finance to developing countries and emerging markets either through national banks (for SME support) or directly to larger private sector projects (which also have a developmental impact). Support is through loans and investment.