02/07/2022
Development Alternative Initiatives Pty Ltd
Deal Note
SEBABATSO LANOLIN AND COSMETICS (COUNTRY) PARTNERSHIP AGREEMENT WITH DEVELOPMENT ALTERNATIVE INITIATIVES (PTY LTD (DAI)
This document represents the full agreement between Sebabatso Lanolin and Cosmetics and DAI (Pty) Ltd., the implementer of USAID Southern Africa Trade and Investment Hub (USAID TradeHub). This agreement was initiated in February 2022 as part of USAID TradeHub support towards capacity building and market linkages through Swazi Fair Trade (SWIFT). The purpose of this document is to outline the partnership agreement between Sebabatso Lanolin and Cosmetics and the USAID TradeHub reached in February 2022.
BACKGROUND AND PURPOSE OF THE PARTNERSHIP
The USAID TradeHub project has three objectives: i) increasing exports to South Africa from targeted regional countries, ii) increasing the flow of capital (investment and technology) from South Africa to targeted regional countries and ii) enhancing the sustainable utilization of the African Growth and Opportunity Act (AGOA) including supporting exports to the United States under AGOA.
In line with USAID TradeHub’s objectives of increasing trade from targeted regional countries to South Africa and to the United States, the USAID TradeHub-appointed trade promotions service provider (TPSP), SWIFT, will work with identified regional exporters to facilitate market linkages and provide capacity building and technical assistance to meet market entry requirements for both markets.
Sebabatso Lanolin and Cosmetics, a company based in Lesotho, produces raw Unrefined Lanolin oil, Lanolin Body Lotion, Activated Charcoal lanolin soap with Prickly Pear, Lanolin hair food with Shea Butter. Sebabatso Lanolin and Cosmetics sources most of its raw materials locally in Lesotho working closely with and empowering wool and mohair producing communities.
OBJECTIVES OF THE PARTNERSHIP
The objective of this partnership agreement between Sebabatso Lanolin and Cosmetics and USAID TradeHub is to support exports to South African and the United States under AGOA through capacity building support and linkages to South African and U.S. buyers. The support is provided within the broader support that USAID TradeHub has been rendering to firms to export to South Africa and the United States.
AGREEMENT OF THE PARTNERS
To achieve the objectives outlined above, the partners plan to collaborate on the following activities:
USAID TradeHub Contribution
1. To contract SWIFT, to undertake capacity building, technical assistance and business linkages;
2. To support Sebabatso Lanolin and Cosmetics with other activities within the project’s scope related to increasing exports to South Africa and the United States.
Sebabatso Lanolin and Cosmetics Contribution
1. To actively participate in capacity building and technical assistance activities for market linkages support as per the SWIFT program;
2. To be provide on-time feedback to requests, advice and actions required as part of the training, marketing, buyer missions and other activities contained in this scope of work;
3. To produce and ensure products meet South Africa and U.S. market entry requirements and are shipped to South Africa and the United States in good time;
4. To provide quarterly data to the USAID TradeHub on any export deals to the USAID TradeHub until the end of the USAID TradeHub project, and;
5. Provide quarterly data to the USAID TradeHub on any capital raised from South Africa, for the duration of the USAID TradeHub project.
Each of these possible areas of collaboration may require formalization in an agreement as they develop and as the deals materialize. This agreement hence acts as an overarching document to outline the areas of potential and the intention to work together towards South Africa and U.S. market linkages support and production for South African and U.S. markets.
Activity plan
The activity plan is based on implementation and reporting in FY 2022.
Table 1: Activity plan
#
Activity description
Lead
FY2022
Q1
Q2
Q3
Q4
1
Contract the service provider through a Scope of Work (SOW)
USAID TradeHub
2
Applications, selection of exporters receiving support and signing of Deal Note Agreements with exporter
USAID TradeHub and Exporter
3
Preparation of a LookBook and website, capacity building workshops, buyer missions, sharing samples, deal care and progress updates
SWIFT and Exporter
4
Keep a record of exports including ongoing quarterly reporting on exports to South Africa and the United States and participation in the USAID TradeHub annual survey.
Exporter
MONITORING PERFORMANCE
To ensure that both the Sebabatso Lanolin and Cosmetics objectives and USAID TradeHub requirements for monitoring performance results are met, the company agrees to provide USAID TradeHub with baseline and results data as shown in Table 2. USAID TradeHub’s Monitoring, Evaluation and Learning (MEL) team may work directly with Sebabatso Lanolin and Cosmetics to assist in analyzing performance and fully reflecting the impacts of USAID TradeHub support.
Table 2: Performance Baseline and Results Data
Hub #
Results of USAID TradeHub Support
Backup Documents
Frequency of Data Collection
1
Value and volume of exports/ imports
Quarterly Data forms
Quarterly
2
Value of sales
Quarterly Data forms
Quarterly
3
Value of new investment
Deal Confirmation, Agreements, Technical Reports
Quarterly
4
Number of jobs created
Deal Confirmation, Agreements, Technical Reports
Quarterly
5
Improved profitability
Deal Confirmation, Agreements, Technical Reports
Quarterly
6
Applying improved technology or management practices
Deal Confirmation, Agreements, Technical Reports
Quarterly
7
Finance accessed
Confirmation Letters, Technical Reports
Quarterly
TECHNICAL IMPLEMENTATION TEAM CONTACT INFORMATION
Company name
Name: Thikhoi Phakisi
Phone: +266 5610 4796
Email: [email protected]
Website
USAID Southern Africa Trade & Investment Hub
Name:Tammy Dlamini
Title:Portfolio Manager (Lesotho, Eswatini, Mozambique and Angola)
Phone:+268 7802 5685
Email:[email protected]
Name: Marina Bizabani
Title:Country Representative - Lesotho
Phone:+266 6200 0777
Email:[email protected]
NOTICES
All official notices or communications required by this Agreement or desired to be given hereunder shall be in writing and addressed as follows and effected by facsimile or email transmission and shall be deemed to be effected when received.
The respective organizational cognizant points of contact are:
For Sebabatso Lanolin and Cosmetics
For DAI Pty Ltd (USAID TradeHub)
Thikhoi Phakisi | Chief Executive Officer
Address: Ha T’sosane, Maseru, Lesotho
Email address: [email protected]
Frank O’Brien | Chief of Party
The Corner Office, 410 Lynwood Road
Lynwood, Pretoria 0081
South Africa
[email protected]
Each Party may change its cognizant point of contact by written notice to the other.
DURATION AND TERMINATION
This Agreement shall commence upon signature by both parties and continue with operational implementation until June 30, 2022 and reporting until September 30, 2022. This Agreement may be extended by mutual written consent for any period as set out in such consent.
GOVERNING LAW AND DISPUTE RESOLUTION
This Agreement shall be governed, interpreted and enforced in accordance with the laws of the Republic of South Africa without regard to its conflict of laws rules.
All Parties agree that, should any disputes arise under this Agreement, they shall first endeavor to resolve such disputes amicably through negotiation. If negotiations do not prove effective in resolving any conflict between the Parties, such dispute shall be resolved through binding arbitration in the Republic of South Africa.
ENTIRE AGREEMENT
This Agreement and all exhibits, attachments, and appendices hereto comprise the entire understanding and agreement of the Parties with respect to the subject matter, superseding any prior or contemporaneous written or oral agreements thereon. No understanding is created between the Parties until this Agreement is signed by duly authorized representatives of both Parties. This agreement remains in place until September 2022. Should a party to this agreement have a dispute, they should raise this in writing with the other party. Upon receipt of the complaint, the other party should seek to address the matter under dispute within one month of the complaint. Both parties commit to taking genuine corrective action to resolve the dispute. Failing the dispute being adequately addressed to the satisfaction of both parties, either party to this agreement may thereafter cancel the agreement giving one month’s notice in writing. Both parties to this Agreement confirm that this Agreement does not constitute a legally binding commitment, nor does it constitute a financial commitment between the parties.
SIGNATURES
________________
Signature of duly authorized company/participant representative
______________
DAI GLOBAL LLC
(Signature)
Thikhoi Phakisi, Chief Executive Officer
Ha T’sosane, Maseru, Lesotho
Frank O’Brien, Chief of Party
Southern Africa Trade & Investment Hub
2nd Fl, The Corner Office, 410 Lynnwood Road, Pretoria, 0081
South Africa
________
Date
_________________
Date
