Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Introduction Field of opportunities at Sokoine University Where graduate fit in Agriculture Greatest obstacle Graduates suggested solutions Proposed solution About the model Conditions for the models efficiency Advantages of the model Limitations of the model ASSET-LIABILITY COLLATERAL MODEL Recommendations
CONTENTS
INTRODUCTION
Arising from the Forum on self Employment in Agricultural sector that was organized jointly by CRDB Bank and DAEA-SUA on February 12th 2011, the following proposal has been written to adhere the need of having a steering committee resulted from the Forum. Sokoine University of Agriculture is anticipated to have thousand graduates each year as an outlet to the society, 90% of them being undergraduate level.
Input suppliers, farmers, trade and transport servers, processors, distributors and retailers, consumers and most of all environmentally concerned disposal managers.
GREATEST OBSTACLE
Most graduates fear to engage into self employment in agriculture, the greatest obstacle being inadequate finance
Disadvantages:
Career development might be hindered Collateral has no real commercial value Hinder diversification priority Certificate value measurement may be complicated
Disadvantages:
Disadvantage:
Advantage:
Financial acquisition based on the groups registration as a legal entity Easy to monitor group rather than individuals
Disadvantage:
Difficult to form groups with similar character graduates (in terms of location, interest e.t.c) No specific collateral
PROPOSED SOLUTION
ASSET- LIABILITY COLLATERAL MODEL
GRADUATES
CRDB BANK
BUSINESS PROPOSAL
LOAN
APPLICATION
(FINANCIAL FACILITATOR)
4 (Input delivery)
INPUT DEALERS
6 (Cheque submission)
10
5 (Confirmation Cheque)
7(Cheque Payment)
9( Profit accumulation)
IMPLEMENTATION
LOAN REPAYMENT
A comprehensive written business proposal to guide the idea Initial starting scale for any business should be small Mutual benefit based contract to describe mode of payment and legal rules No cash involved, cheques only based on two signatories (bank and borrower) Initially the title deed is held by the Bank until the loan is fully paid Borrower should open a current account to enable acquisition of cheque book for Input transaction monitoring Borrower should present monthly reports on the business progress to the Bank Borrowers monetary transactions should be issued by respective Bank
The created security will be legally signed Theres an assurance that no other lenders will claim on the assets No third party claims on security The security produce a real commercial value as compared to certificate Easy to reinforce repayment incase of borrowers failure to business High motivation for borrowers commitment no hindrance of graduates career to develop Asset may be transferred to another person who is willing to repay the debt incase of graduates failure The model has mutual benefit for both borrower and lender Success of the model meets the goals for development partners and DAEA s incubator program The model will adhere to the nations policy on YOUTH EMPLOYMENT and MKUKUTA at large
Recommendations
The proposed model is a nations solution equipment for unemployment, but this can only be proved if its given a chance to be applicable in the reality. Putting the model in reality may be done through the use of pilot group of graduates who have feasible business ideas. Also the model can best work if the Bank gives a mutual priority concerning the interest rates involved, the success of the model is only an introductory success for the Bank, Graduates, consulting units, development partners and the government as a whole.