Making good business sense has been the philosophy behind BLCF's support for the roll out of Psi (private sector initiative) in Malawi after its success in Tanzania and South Africa. The initiative was designed to bring multinationals and large companies in Malawi together to actively seek ways to better integrate local SMEs into their supply chains and share their experience of working with such SMEs.
In Malawi, the SME peer networking mechanism Business Bridge, facilitated by SBP, connects SMEs with each other and works to improve their access to opportunities -a new addition to the original concept. It facilitates SME peer-to-peer learning and regular direct dialogue with corporations and SME suppliers. The members of Business Bridge have attested to the fact that it ‘opens doors’ as the members are invited to corporate presentations on procurement policies, processes and supply chain opportunities. The Business Bridge members receive advice on preparing tender documentation, marketing and partnerships with corporates and other SMEs.
SBP, an independent private sector development and research company, worked with BP Malawi to gain buy-in from eight other corporate business partners, gaining full endorsement from the Malawi government for this non-philanthropic corporate social responsibility initiative.
A combined SME supplier list was generated and is being used by the nine participating companies to increase corporate outsourcing and procurement from local SMEs, improve the quality of products and services available and increase local skills, efficiency and competitiveness.
The sustainable partnerships and business linkages being developed between large corporations and local SMEs are achieving market-driven local economic growth, supply chain development, increased employment and income opportunities, particularly With the database and dialogue mechanisms in place, the job of the facilitator was done and since 2005 the management of the initiative has been taken on by member companies for women, while closing the gap between small enterprise and large business.
BLCF has now supported Psi in Tanzania, South Africa and Malawi and there is significant potential for sharing best practice with development projects in other parts of sub-Saharan Africa.
For more information contact BLCF fund manager, the Emerging Markets Group at this address