development of panafrican collateral management company

CGS COLLATERAL CONTROL COMPANY LIMITED

is a Collateral Management company registered and

operating in Tanzania with a view of operating in

various countries in Africa.

Discovering CGS Collateral

Full Collateral Management Services

Monitoring Services

Stock Inspection Services

General Inspection Services

• Discharge Survey

• Load Survey

• Quality Control Services

Loan Facilities Arrangements and

Placement

Training on Structured Trade and

Commodity Finance

Consultancy Services

WE SECURE THE ENTIRE TRANSACTION FROM END TO END THROUGH

INTRODUCTION

WHY COLLATERAL MANAGEMENT

STRUCTURES AND SYSTEMS

AVAILABILITY OF RESOURCES

IMPLEMENTATION

CONCLUSION

DEVELOPMENT OF

PAN AFRICAN

COLLATERAL

MANAGEMENT

COMPANY

DEVELOPMENT OF PAN AFRICAN

COLLATERAL MANAGEMENT COMPANY

A collateral management company’s primary business is to secure physical collateral for

lenders.

they act as agent for banks and other providers of trade credit

in securing the physical collateral for such credit,

by ensuring that the value of collateral is secured and comply with the

lender’s requirements.



Collateral management allows input providers to position fertilizers near to farming areas,

so that it can be supplied promptly when needed

Collateral management gives rooms to

such commodity traders to access bank

financing using the same commodities

as security

Collateral management allows

importers to extend low-interest-rate

international loans deep into the

country, to finance goods awaiting

distribution



Improved profitability by the banks and traders due to reduced risk as a result of monitoring

and controls instituted by collateral management

Improved monitoring on the part of the trader due to involvement of a third party in their

operations

A tool that gives banks opportunity to finance transactions that they would normally shy

away from

Gives the banks opportunity to monitor their loan portfolio through regular reports and

updates

Collateral Management forms a backbone of a successful commodity exchange



Collateral management has been used by banks to lend money to clients they would have

shied away from. This is due to the fact that collateral management gives the bank the

highly needed close monitoring and control of their clients’ operation.

Increased size of loans per clients as

limits are dependent on the size of the

business handled by the client.

Reduce Capital required by the

commercial banks as commodity can

be considered a tangible security when

it is under the control of a third party.



The only and the most efficient tool used by banks for transactional lending

Collateral management enables

processors to buy sufficient crop after

the harvest to keep their processing

equipment operating at full capacity

during the whole year

Collateral management permits farmers

to store their crop and get a loan to

meet immediate cash needs, rather

than being forced by cash needs to sell

even when prices are unfavorable



VARIOUS DEPRTMENTS SEPARATED BY FIREWALLS

! PROPOSED COMPANY

STRUCTURE

Marketing

Department

Credit Support

Department

Operations

Department

Internal Audit

Department

Front Office Back Office Technical Board



Marketing Department

Front Office

►NEGOTIATE WITH THE CLIENTS I.E

TRADERS

►ANALYSE THE REQUIREMENTS

►RECOMMEND THE CLIENT TO THE

CREDIT OFFICE



Credit Support

Back Office

►RECEIVES RECOMMENDED CLIENTS FROM

THE FRONT OFFICE

►ANALYSE THE CLIENT’S TRANSACTIONS

FOCUSING ON RISK ASSESSMENT AND

CONTROL PROCEDURES

►APPROVE THE TRANSACTION AS A

COMMITTEE

►PREPARE MANUALS AND OPERATIONAL TO

THE OPERATIONS DEPARTMENT

►REPORT TO THE FINANCING BANK AND THE

BORROWER REGURLARLY



Operations Department

Technical

►RECEIVES INSTRUCTIONS FROM THE

CREDIT SUPPORT DEPARTMENT

►EXECUTE AS PER INSTRUCTIONS AND

REPORT TO THE CSM



Internal Audit Department

Board

►CONDUCT PERIODIC AUDITS

Execution of instructions

Implementation of policies and

procedures

Accuracy and correctness of the

reporting

►REPORT TO THE MANAGEMENT AND

THE BOARD



AVAILABLE

►HUMAN RESOURCES

Existing Collateral Management Companies

Training through existing institution

►TECHNOLOGY

Existing technology through the existing

collateral management companies

Opportunity to develop tailor made solution

for the proposed company exist



AVAILABLE

►EQUIPMENT

Few labouratories

NEEDED



Commercial banks as natural users of the service

Development organisation- playing their key role of developing trade across the continent

Investment banks – in line with their core business of investing for community development

Microfinance Banks – opportunity to save SME’s and ME under one roof

Social security organisations – as an investments opportunity

Traders and Venture Capital Organisations

TARGETED STRATEGIC INVESTORS

IMPLEMENTATION

PROPOSED PROCESS FLOW…

• Design the organisation Structure

• Negotiate with prospect investors

• Registration of the company

• Recommend members of the Board of Directors

• Recommend top management team to the board of directors

• Oversee execution of the first transactions to ensure smooth hand over to the management team.

FORMATION OF STEETING COMMITTEE WHICH WILL :-



While warehouse receipts have been used since Mesopotamian civilization, in 1830 and 1850’s CHICAGO emerged as commodity trading floor using tradable warehouse receipts.

IT IS NOT A NEW

CONCEPT…..

Collateral Management act as a reliable delivery

system for a commodity exchange.

ADDED

ADVANTAGE….

FORMATION OF THE PAN AFRICAN COLLATERAL MANAGEMENT IS

ESSENTIAL FOR THE GROWTH OF ECONOMIES IN AFRICA.

LET US DO IT NOW!

Today the largest collateral managers throughout Latin America and in Turkey are owned by banks.

Email: [email protected] P O Box 19771, Dar es Salaam

Tel: +255 22 2400533 +255 22 2400823 Fax: +255 22 2400528

www.cgscollateral.co.tz

www.cgscollateral.co.tz

CGS COLLATERAL

Email: [email protected] P O Box 19771, Dar es Salaam

Tel: +255 22 2400533 +255 22 2400823 Fax: +255 22 2400528

development of panafrican collateral management company

Presentations & Public Speaking