14. CDI EXPERIENCE IN SOAP FACTORY PROJECTS

Over the last ten years the CDI has been involved in a dozen or so soap-making projects. The assistance given to the promoters has included, in particular:

· assistance with commissioning and local staff training,
· training of staff on the manufacturer's premises,
· identification of projects, pre-feasibility and diagnostic studies,
· technical auditing.

The experience acquired in soap factory projects reveals certain shortcomings. Besides technical and staff training problems, which are generally easy to resolve, it should be stressed that projects are often weak in terms of strategic approach and the analysis of their prospects for economic and commercial viability.

Although the needs of developing countries are in theory enormous and easy to identify, the solvent demand - a result of the purchasing process, leading to the satisfaction of a need - is much more difficult to quantify and often hugely overestimated. This weakness can lead to oversized, over-ambitious production lines which may use inappropriate technology and eventually prove incapable of reaching the desired productivity targets.

The aim of the CDI is to contribute towards the creation and strengthening of companies in ACP countries. It finances technical assistance programmes and fosters long-term co-operation between ACP and EU companies through various forms of action and partnership such as joint ventures, management contracts, marketing agreements, licences, franchises and sub-contracting. The priority, for both parties, is the promotion of small businesses.