Advisory Overview

AGF believes that the simple provision of capital to SMEs operating in previously non-commercial and difficult environments is usually insufficient. In many cases, the management of these enterprises needs training and assistance as much as the business needs capital. Through AGF’s Post Investment Assistance, the emphasis placed on exiting is tempered by the benefits of the partnership with AGF during the investment period. The entrepreneur can appreciate that, with AGF’s help, his or her business will grow more rapidly, thereby ultimately benefiting the owner, AGF, and AGF’s investors.

Investment support can be provided by the SEAF’s Washington DC and Netherlands based Business Development Units, local investment officers in other countries of operation, and outside specialists.
Investment Support is provided by the three channels:

I. Technical Assistance
Technical Assistance consists of advice that will help the investee company grow. This advice is sourced from three primary groups of people:

1. Internal Assistance from the local AGF Fund:
   AGF's internal assistance is provided by the staff within the local AGF office. This assistance might involve implementing budget and accounting management, cost controls, improvements in operational management, inventory management, or management accounting. Providing advice on an appropriate business strategy, new initiative plans, and marketing plan would be included within the scope of this work.
2. Assistance through the Business Development Units (BDUs) based in Washington DC and in the Netherlands, as well as other SEAF offices:
   BDU provides more globally oriented support and perspective that reaches outside the fund's local marketplace. Support would include market research and global trend analyses, or supporting the development of a regional and/or global market strategy that requires insights that go well beyond the local market. Services could include help in identifying sources of new and used equipment.
   Typically, BDU offers strategy development services to all investees who require additional assistance. For certain investees who have demonstrated a readiness for export, either regionally or internationally, BDU can provide ‘incubation services' through its export assistance program, which help investee companies gain access to western buyers. In isolated instances, BDU will also execute the business strategy until an effective pass-off can be achieved. While basic strategy and research services are provided at no additional cost, incubation and execution of strategy are fee-based.
3. Technical Assistance via experienced and specialized industry consultants:
   SEAF-AGF organizes external technical assistance, utilizing the extensive experience of a range of volunteer consultancy organizations, to advise on technical aspects of a business. Consultants come from such organizations as the Citizens Democracy Corps (CGC), Fundes, the Netherlands Management Cooperation Programme (NMCP), and the German Senioren Experten Service, USAID, among others.
   In Afghanistan, AGF is working closely with various development agencies. To date, AGF has successfully secured funding for external technical assistance of more than $300,000 for some of its portfolio clients through USAID’s ASMED (Afghanistan Small and Medium Enterprise Development) project.

II. Network Development
Network development is designed to foster relationships between investees and other groups or organizations that can help them grow, including customers, suppliers, and producers of technology or complementary products. SEAF’s Washington, DC and Netherlands business development units (BDU) are experienced in providing networking support for investee companies. These efforts include organizing visits to Western companies in the appropriate industries, directing investees to appropriate brokerage services, or helping investee companies navigate the entry paths into corporate supply chains. The BDU also offers marketing advice and connections with a range of technical assistance organizations—with various levels of government support.

III. Education and Training
SEAF has always provided, either via its local offices or its business development unit, appropriate in-house and 'on-the-job' training required to strengthen local management. It has however become increasingly clear that company entrepreneurs - as well as their executive level management - are in need of more robust training particularly in light of globalization and the increased demands of corporations' supply chains.

AGF encourages all of its investee owners and managers to pursue executive management training where available. However, most such programs are not geared to the realistic time constraints and specific needs of SMEs. SEAF is thus driving the establishment of 'The Center for Entrepreneurial and Executive Development' (CEED), which is focused on short-term practical training within a peer learning and networking environment. The program is underway in Bulgaria, Romania, Slovenia, Macedonia, and Montenegro. Expansion to other countries in which SEAF manages SME funds is planned. AGF knows that Afghanistan is in need of such a program and is working to establish CEED in the region so that Afghan SMEs could benefit.

AGF will provide the appropriate combination of technical assistance, with the net result that the portfolio companies can command a higher price in the marketplace because of the acceleration of value that has been added. Such assistance also increases the likelihood that such companies will be sustainable and that the increase in economic activity will spur greater economic development impact overall.

Post-disbursement business enhancement is delivered collaboratively by in-country team with resources and guidance from the Business Development Unit headed by Tom Drum, a 28-year veteran of Proctor and Gamble. Tom has been with AGF now for more than 5 years.