Thursday Dec 12, 2024
Thursday Dec 12, 2024
Wednesday, 19 March 2014 00:02 - - {{hitsCtrl.values.hits}}
The new business model has created many opportunities for communities in the north, and has been proven to be one of the best models in promoting and sustaining growth in agriculture, fisheries and manufacturing.
The economic recovery phase in the north has been constrained by low capacity and micro nature of the industrial sector, and limited capacity for value addition to create sustainable business entities.
Hitherto the north has been a supplier of raw material that is processed elsewhere in the south to add value. This inequality in trade and business relations has contributed to a negative perception in the minds of the people in the north, affecting the peace and reconciliation process as well.
In this background, and the implications of the existing model for business development and trade relationships, the ILO LEED Project commenced a pilot project related to a new business model covering four sectors viz paddy cultivation, agricultural products (fruits and vegetables), fisheries, and construction, to promote meaningful partnerships between the business entities in the north and the south.
The objective of this approach was to create more income earning opportunities for the vulnerable communities in the north, through backward and forward business and market linkages.
In 2013 the LEED Project contacted the National Chamber of Exporters (NCE), the only private sector chamber which exclusively supports Sri Lankan exporters with a view to establishing meaningful business relationships between the producers and manufacturers in the northern region and exporters in the south.
Following initial assessments, the NCE successfully organised a 10 member business delegation from among its member companies to visit the northern region covering the Vavuniya, Kilinochchi, Mullaitivu and Jaffna Districts to explore business opportunities in the agriculture and fisheries sector.
The visit was facilitated by the office of the LEED project in Kilinochchi and supported by the Chambers of Commerce and Industry in the Kilinochchi and Mullaitivu Districts. Members of the delegation held discussions with the relevant State officials and also visited relevant producer and manufacturing groups.
Although this visit was intended to be only of an exploratory nature the outcomes were beyond expectations, resulting in the successful establishment of firm business linkages. Three member companies of the NCE are already engaged in business activities with producers and manufacturers in the north in the agriculture sector (fruits and vegetables and fibre sub sectors) and in boat building in the fisheries sector. Export orders have already been placed for fruits and vegetables, and suppliers have been able to benefit through the provision of regular supplies for processing, and export.
With a view to building on the successes achieved so far the ILO office in Sri Lanka and the NCE entered into a formal agreement to support a range of business development activities through part funding, with a budget of over Rs. 2 million covering activities that will be implemented during this year under the agreement.
This agreement has the following objectives:
Promote and develop partnerships between the members of the NCE and producers in the north to ensure secure markets for their agriculture and fisheries products, while also ensuring value addition to the supplies at source to the maximum extent possible.
To provide capacity building services to existing and potential exporters in the north to function as direct exporters.
Provide advisory support, and technical assistance related to export procedures, logistics and training on management issues for the relevant enterprises with export potential, and organisations in the north.
Develop strong institutional, trade, and business relations between the north and south, in order to establish a sustainable mechanism of dialogue, and platform for discussions.
Organise business delegations and facilitate exchange of business interests of the partners from the south and north.
Engage in following-up on the business contacts that have already been and will be established, by the member exporters in the delegations that visit the north.
Following the signing of the agreement the NCE is making arrangements to organise a second delegation of its member companies to visit the north towards the end of March. This delegation will comprise of some companies which had earlier established business linkages to further develop and consolidate such linkages, as well as new member companies which have come forward to establish mutually beneficial businesses between their companies and entities in the north.
The initiative of the NCE, in collaboration with the LEED Project of the ILO, will be a signal contribution to the efforts of the Government to fast-track economic development in the Northern Province.
