Sector Development and Competitiveness
IBTCI’s Sector Development & Competitiveness (SDC) practice is the longest serving area of our corporate expertise. We provide expertise for environmentally friendly national economic grow the policies, including for sector or industry competitiveness, investment promotion, and international trade. Our expertise is in agriculture, artisan, energy/ power, health, natural resources, telecommunications, transportation, and water. We work with governments to create the necessary institutional reforms that enable sector growth.
IBTCI’s SDC practice also recognizes that a growing and vibrant small enterprise sector is essential to attaining growth with equity and hence we work with governments on policy for the SME sector. We also provide capacity building advice to individual small enterprises to help improve production methods, marketing and product diversification, financial management, and other business functions.
IBTCI works with policy makers to develop the necessary interventions for equity issues related to corporate governance, anti-competitive behavior, and other social safeguards. Testament to IBTCI’s reputation in SDC, our Privatization sub-practice has managed several privatization and post privatization activities, sector studies, and export diversification initiatives around the world for various donor agencies. Since 1992, USAID has awarded five large multi-year indefinite quantity contracts (IQC) to IBTCI in the area of privatization. IBTCI’s SDC Development practice provides services in the following areas:
- Economic and Policy Analysis: IBTCI has the capability to carry out, on behalf of clients, studies and analyses of needs and/or impact of general policy and economic policy issues as they relate to all aspects of economic activity. These policy interventions are designed to assess the impact of current government policies as well as determine the policy and legislative measures that are required to achieve specific goals. The range of capabilities of this Practice and that of our technical professionals can be used in determining these impacts and needs at the national, regional or local levels.
- Enterprise Reform: IBTCI assists entities to rationalize and optimize their operations and overall viability. The practice has often provided assistance and restructuring services as necessary steps towards consolidating operations to make them more attractive to potential investors. While the practice has traditionally offered its services primarily to state owned entities, involvement with recently privatized and private entities has substantially increased as more countries begin to implement post-privatization and private sector development programs. Overall, IBTCI has capabilities in planning, implementing, monitoring and evaluating the process of enterprise reform. Specifically with regard to enterprise assistance, IBTCI offers clients a range of services with application from boards of directors to shop floor levels; services include strategic planning, enterprise restructuring, operational diagnostics, product diversification planning, enhancement of manufacturing processes and operations, improvements in quality, quality control management and methodologies, marketing and sales, overhead reduction, cost control, inventory management, and distribution systems. These services are complemented with assistance designed to improve financial and accounting, management information, data processing, personnel management and other areas related to overall systems improvement.
- Institutional Development and Strengthening: This area includes those services which address the organizational improvements required by entities aboutto be restructured, those who will issue equity securities, entities already undergoing this process, and entities that have already become private concerns through issuance of equities and are listed on the securities market. Specifically, these services include analysis and implementation of restructuring measures enabling entities to carry out their strategic plans effectively; assistance to entities to define their manpower needs in relation to their strategic plans, growth plans and functional expertise requirements as well as the analysis of overall personnel management systems. Finally, IBTCI facilitates the undertaking of diagnostic audits either prior to, or in support of, equity issuance and suggests improvements to optimize overall management.
- Legal and Regulatory Analysis and Compliance:IBTCI provides clients with the means of assessing the impact of enterprise reform, privatization and other laws, regulations or judicial rulings regulating the operations of institutions, or the conduct of transactions at all levels of an economy. IBTCI also provides the capability to determine what procedural actions must take place for compliance with new laws or regulations. The firm provides services to interpret legislation, translate these into compliance procedures, and assess the impact of their applications. In this process, the Practice identifies organizational authority and responsibility permitting the design or assessment of dispute resolution procedures.
- Market Analysis, Trade Development, Export Competitiveness, and Investment Promotion: Under this practice area, we offer clients assistance in market research designed to identify the market potential of specific products and product lines, market size, product demand, competitive position, and competitor strengths, among others. The analysis of part or all of these aspects allows our assistance in the development of market entry or expansion strategies for client organizations. Also under this area, IBTCI’s PSD practice offers specialized services in the enhancement of trade activities through assistance in export and investment promotion. This includes assisting clients in the development and strengthening of export promotion organizations in all aspects of their operations but with particular attention to organizational issues, definition of services, and development of procedures. The practice also offers the ability to carry out trade development studies and definition of strategies designed to improve the export sector.
- Privatization Program Planning, Implementation, Sales, Transactions, and Post Privatization Assistance: Under program planning, our PSD practice offers clients the capability to execute studies on the development, impact and targeting, as well as in the implementation of privatization programs and plans. In this way, the Practice can intervene in the development and assessment of privatization schemes, selection of methodologies, and sector studies intended to assist the identification of both privatization effects on the overall economy and those enterprises best suited for privatization. In the program implementation area, the Practice provides technical advice in the execution of privatization programs such as preparation of entities prior to privatization, valuations, preparation of prospectus and bidding documents, and in the selection of investors. In the area of Privatization Transactions, IBTCI has acted as the investment banker or corporate finance advisor on behalf of buyers and sellers. IBTCI assists sellers in valuation, preparation of information memoranda, investor-targeted public awareness campaigns, negotiations with anchor investors, and in the design of sale contracts. The work in this area has covered industries including machine tools, construction equipment, auto parts, electric motors, construction equipment, chemicals telecommunications equipment, telecommunications, ports, automotive, and chemicals. In Post-Privatization activities, we work with governments and industry to develop regulatory and other frameworks to sustain the benefits of privatization as well as to help publicly divested firms thrive.
- Public Awareness and Education: IBTCI’s Public Awareness programs support the objectives of economic reform by working with governments, the mass public and the international community, and investors. We assist in the design and implementation of public awareness programs to present the merits of privatization and market reform to the mass public. IBTCI also supports high-level Government officials to directly understand the concept and impact of privatization and helps them to effectively communicate their message to their constituents. Additionally, we develop targeted campaigns and manage road shows to reach interested international investors in the privatization process. To achieve the necessary support for reform activities, IBTCI builds its public awareness campaign by understanding the country’s values and traditions as well as by inviting the participation of recognized local leaders. Also, we take into account international best practices and our own lessons learned to develop situation specific models of communications.
- Corporate Governance: Our work in Corporate Governance for private sector development advises governments on strategy and regulatory frameworks, and we also work on instituting reforms to address internal governance problems in particular agencies, institutions, or enterprises. Our Corporate Governance advisory work uses both comparative and country specific approaches as a way of benefiting from earlier experiences while recognizing country and regionally differences in legal arrangements and structures. We continue to work to institute the required frameworks governing publicly divested companies in areas including shareholder protection, management structures, and management reporting procedures. We also work with government agencies to design control and monitoring mechanisms such as corporate governance ratings, as well as corporate governance curricula and training.