By partnership, we mean a long-term collaboration, whereby two (or more) partners design and implement a venture together. Whilst partnerships will evolve over time, an interest to pursue a long-term, commercial partnership needs to be present early on, when Connect to Grow commits its support.
Connect to Grow does not prescribe specific organisational or legal forms for partnerships. But the following types of partnerships can be useful to consider. Below are examples of partnership structures that Connect could support:
|Type of partnership||Example|
|Franchise||African company dealing in FMCG sets up as a franchisee of an Indian FMCG company, selling its product and meeting its other brand norms (and pays franchisor)|
|Licensing arrangement||African company seeking a system innovation (such as warehouse receipting, low-cost eye surgery) sets up and uses the innovation of an Indian company, paying a royalty for doing so|
|Distribution partnership||African company providing consumer durables or manufacturing equipment for sale partners with an Indian company to develop the product or market together for long-term expansion with the Indian company as the supplier, African company as distributor, and both investing for return (share of revenue is agreed based on input of effort and risk|
|Joint Venture||African company seeking innovation in a manufacturing process jointly sets up a new business with an Indian company that deploys the Indian company’s process|
|Investment||Indian company that manufactures machinery, takes an equity stake in an African company which then uses the Indian company’s machinery|
|Strategic alliance||African agribusiness agrees jointly with an Indian agribusiness to develop new seed varieties for the African market, with an agreed cost and revenue sharing formula.|
It is important to note that in most cases, the form that the partnership will take between two enterprises will only become clear once significant interaction has taken place between the possible partners and the Connect team. The Connect team will help enterprises come to the most suitable partnership agreement.
Read this Checklist to learn more about developing a mutually beneficial partnering agreement.
Find out more about how Connect Partnerships work in our video ‘Two hands are better than one’