7/3/00 (BEMc)
EMPRETEC-GHANA

Interview with: Cletus Yenet Kayenwee (CYK), Business Advisor
(Cletus is a recent MBA graduate of Univ.Ghana; has been with Empretec for
about 2 months)
Phone:  233-21-7010203-7
FAX:  233-21-231239
Email: empretec@ncs.com.gh
Website:  www.africaonline.com.gh/empretec

Dr. George Manu, is the CEO of Empretec Ghana (he was out of town on this day)

Relationship between Empretec Ghana and Enterprise Africa:
Empretec founded in Ghana in 1990, after "Empretec" model of enterprise development which started in Argentina.  Empretec means enterprise in Spanish.  Empretec Zimbabwe was founded shortly thereafter.  However, because "empretec" had no real meaning in Africa; the term was changed to "Enterprise" to use for subsequent members in other African countries.  (Mr. Alan Kyerematen (AK), current director of Enterprise Africa was the founding director of Empretec Ghana.)  According to CYK, Enteprise Africa grew out of Empretec Ghana as the concept of business development would be more effective if done continent-wide.

Enterprise Africa is a collaboration with ILO and UNDP.  Empretec Ghana started in 1990 as a UNDP project.   According to CYK (confirmed in a later interview with AK) Empretec Ghana is self-sufficient in funding; it funding now comes from user fees from its business clients.  (AK says Empretec Ghana often accumulates a surplus annually.)

Empretec Ghana's Mission:
Empretec's initial objective was to provide training in business skills to entrepreneurs.  However, it found that to be more effective in developing businesses; it needed to shift the focus to providing services to the businesses themselves.  Target businesses are small to medium size; range from 5 - 100 employees (relative figures accord to CYK).

Empretec's focus is to "lift traditional business to level of modern businesses" using business development strategies such as transparent accounting systems, financial management, marketing, product development, networking; and introduce services like the internet.

Clients:  about 1,000.  CYK says this is accumulative over the years; clients come and go as Empretec consultancy services are utilized.
Empretec clients - include all business sectors: manufacturing, services, 'traders'.

Services provided to businesses:
--small loans/seed money/credit 'sourcing'.  CYK says repayment has been good on the loans.
--loans are to existing businesses; do not loan to start-ups
--average loan is 20million to 50million cedis. (Current exchange rate @5000=$4,000-$10,000.) Payment terms usually 1 year.  Current interest rate is about 30% (lower than current bank rates of 45-50+%.)
--credit sourcing:  Empretec tries to find other loan sources for its business clients. 
   However, CYK says collateral is a big issue when trying to secure bank loans.
--skills training for business owners and their employees
--InfoTech (IT) Department is working to get linked with an ISP.  Current discussions with AfricaOnline.   Empretec is trying to set up a web site at the Empretec office where business clients can advertise. They're trying to get more clients to use internet.  Monthly cost is prohibitive for some businesses.  Need to coordinate ISP/Empretec/business clients for internet services.
--"subcontracting" i.e. Empretec encourages business clients to use each others' services and products; business-to-business transfer of services, information.
Clients are charged user fees for Empretec services.

How does a business access Empretec?
Empretec does outreach to businesses and is proactive in seeking clients.  Many of their clients are referrals from other clients.
1. When a business comes to Empretec office, they do an initial 'chat'/interview.
2. Next, Empretec arranges a 'business diagnostic' - on site visit using written questionnaire. [copy of questionnaire given to BEMc]
3. Business is assessed according to checklist, evaluation items on questionnaire.
4. CYK emphasized (along with AK later) that Empretec/Enterprise Africa is 'selective' in choosing its clients, businesses that have the potential to succeed.
(AK said Enterprise Africa uses "selectivity" but not "exclusivity" in choosing its clients.)

Policy Environment in Ghana/Africa:
Physical infrastructure is better.  Still have problems with basic things like transportation, communication.  Finding finance capital is a problem.

The job market in Ghana needs to be improved.  They are many people looking for work, but they do not have the requisite business skills, computer skills. According to CYK, those with computer skills (Business school graduates, others) do not have a problem finding a job in Ghana.
CYK:  "Nigeria is a very crucial factor in whatever progress there is in Africa."