1. Responding to Global Issues & Trends: The Strategic Role, Resources and Relationships of National Development Finance Institutions 34th ADFIAP Annual Meeting 20-23 April 2011 Kyrenia, North Cyprus Ms. Angela Strachan, Chief, Business Environment Section Division of Business and Institutional Support Plenary One : “Building Up Capacity for SME Development”

3. ITC Builds SME capacities on three levels Business and Trade Policy Trade Support Institution Strengthening Exporter Competitiveness Export Strategy Trade Intelligence Trade Policy Build capacity for trade negotiations Establish an adequate institutional framework Develop and implement strategies Enterprises Conclude commercial transactions Prepare for exports Formulate strategies for exports Trade Support Institutions Advise policymakers Strengthen SME capacities following ITC criteria Improve networks

5. ACCESS TO FINANCE FOR SMEs FOR INTERNATIONAL COMPETITIVENESS Poverty Alleviation, Women Empowerment Global Partnerships for Development Response to Financial Crisis TSIs Financial Institutions In country multiplier for SME capacity building before, during and after the loan Increased SME lending while mitigating risks Restoring dialogue between SMEs and Financial Institutions: ITC OFFERING : A one stop window Knowledge base for SME capacity building in financial management TSI coaching for improved SME support Assistance to financial institutions Partnerships

8. Lack of Trade Finance is a major impediment to ITC’s thrive towards export impact for good: “Financing is the number one constraint cited by SMEs in developing countries” (World Bank) ‏ . ITC's Trade Finance for SMEs Programme aims at assisting SMEs in the value chain, especially export oriented ones, by enhancing access to affordable credit, building entrepreneurs' financial management skills, and encouraging the development of financial instruments and mechanisms tailored to SME needs. Trade Finance for SMEs: The Rationale

9. ITC’s Strategy in response to the SME Financial needs 1- Strengthening the overall management capacities of SME managers, in particular in financial management 4- Broadening the range of financial services targeting SMEs 3- Building better links between international and regional financial institutions and commercial banks 2- Enhancing financial institutions’ understanding of SME needs and risks

10. ITC’s Strategy in response to the SME Financial needs (1) Case Study : Benin : Finnish Funds for e nhancing Pineapple Exports to West Africa and the Maghreb 100 SMEs (cooperatives, associations) are receiving financial management coaching from local 34 certified counselors.

11. ITC’s Strategy in response to the SME Financial needs (2) Case Study : Zambia : AfDB funded project to promote the private sector Two commercial banks, Zanaco and Investrust, are partnering in the project. ITC through its certified 16 counselors is helping 70 SMEs enhance their financial management skills and prepare bankable proposals. Each bank is also provided with tailored risk assessment/management software.

12. ITC’s Strategy in response to the SME Financial needs (3) Case Study : Cambodia : AFD Support Programme to the Rice Millers AFD (French Development Agency) is providing some guarantee funds to ANZ Royal Bank through the Ministry of Commerce to cover the risks related to the loans granted by the bank to 100 Rice Millers to improve their machinery and the quality of rice.

13. ITC’s Strategy in response to the SME Financial needs (4) Case Study : Senegal : Netherland Funds support Programme to promote the mango sector ITC to provide coaching on alternative financial services such as export credit insurance and transaction based financing.

15. Local Institutions Trade Finance for SMEs Approach Regional & International Financial Organizations Commercial Banks & Micro Financial Institutions Trade-Related Technical Assistance Services & Finance Credit & Guarantee Lines SMEs ITC SME Financing Private Sector Development LOANCOM & other tools SME Competence Building

18. Alternative Delivery Mode The programme can be delivered in an à la carte approach to respond to the client’s specific needs.

22. Path for partnering with DFI’s

23. The way forward between ITC and DFI’s: Transaction Based Finance (TBF)

24. Challenges related to the implementation of TBF

29. Thank you! For more information please contact: International Trade Centre 54-56, rue de Montbrillant Palais des Nations 1211 Geneva 10, Switzerland Tel: +4122 / 730.11.11 Fax: +4122 / 730.05.76 email: financefortrade@intracen.org