Cluster Development & Business Linkages
The cluster based development approach enables domestic entrepreneurs’ to integrate their business systems into global value chains by providing economies of scale and recognizing the role of multiple stakeholders in the system.
Cluster development helps to address the challenges of isolation in small firms by creating a critical mass of mutually beneficial business relations.
The Business Linkages Programme is an initiative of linking an SME/clusters to a bigger company including Trans-National Companies (TNC) aimed at promoting the growth and survival of local businesses (SMEs) through capacity and capability enhancement on one hand.
The programme nurtures SMEs to meet regional and international business standards and encourage TNCs to source locally from the SME clusters instead of sourcing from foreign firms
The programme is expected to nurture SMEs to meet international business standards and encourage TNCs to source locally from the SME clusters instead of sourcing from foreign firms. The Programme target linkages in sectors like; Agriculture, Telecommunications, Building/Construction, Real Estate Development, manufacturing and Petroleum oil and gas sectors.
- Improved competitiveness of SMEs through technological, knowledge and management skills transfer and capital injection.
- Behavioral transformation as entrepreneurs display much higher commitment to fulfilment of contracts.
- Improvement in turnover and staff numbers.
- Increased domestic sourcing by TNCs and large local companies – import substitution.
- More quality jobs created and or preserved.
- Ability to attract commercial banks to provide credit and other financial products to SMEs.
- TNCs deeply getting rooted in the local economy.
- A more dynamic private sector.
- Increased capacity to attract Foreign Direct Investment.