Overview of SME Support Initiatives in Tanzania. Zero Draft - March 2017

Transcription

1 Overview of SME Support Initiatives in Tanzania Zero Draft - March 2017

2 Approach Objectives Learn from previous / current initiatives Highlight key design considerations Provide recommendations Activities (in progress) Inventory of Enterprise Support Initiatives Short-list of initiatives with direct firm level support Interviews / Profiles Donor interviews Review of FYDP II 2

3 A. Inventory of Enterprise Development Initiatives 18 initiatives identified (mix of projects / trusts) Funded by various projects; some single donor / some multi donor 8 completed ; 10 on going / new Mix of policy, BDS, value chains Pending USAID / UNCDF / EU 3

4 B. Completed Initiatives Name Years Donors Focus / Sectors Approach 1 Enterprise Development Program SIDA SMEs Twinning with Swedish companies 2 Private Sector Initiative 2001-xx DFID Twinning with large companies 3 Growing Sustainable Business xx Norway Partnerships 4 Business Development Gateway World Bank, DFID, DANIDA 5 Business Development Scheme / Matching Grants Program (MGP) World Bank, DFID, DANIDA Start-ups, Informal companies Productivity SMEs Business Plan Competition, Diagnostic Program Matching Grants 6 Cluster Competitiveness Program World Bank, DFID, DANIDA 7 Rural Micro Small and Medium Enterprise Support Program (MUVI) Agribusiness, Tourism IFAD Microenterprises 6 regions Geographic Clusters 8 KAIZEN phase JICA Productivity Manufacturing TA for Kaizen 4

5 C. Ongoing / New Initiatives Name Years Donors Focus / Sectors Approach 1 PASS Trust Danida / Sweden (new) Small agroprocessors/ groups 2 BEST BRU Programme Various Business Environment Credit Guarantees 3 BEST - Dialogue DANIDA 4 Financial Sector Deepening Trust (FSDT) DFID, Gates, Financial Inclusion, Ag Fin, SME Fin 5 Africa Enterprise Challenge Fund (AECF) Various through AGRA 6 Agricultural Development Company (AgDevCo) Agribusiness, Clean Energy DFID Agribusiness Medium / Large Strengthening providers Challenge rounds; Loans and TA Investing debt and equity 7 Agricultural Markets Development Trust 2013 DANIDA Agribusiness Strengthening Value Chains 8 Tanzania Entrepreneurship and Competiveness Center (TECC) Private Firms Youth Entrepreneurship Training / Mentoring 5 9 Strengthening Small Business Value Chains DGAC- Canada 10 Tanzania Local Enterprise Development DGAC - Canada Small Business Three regions SMEs Agriculture and Extractive Sectors TA through large companies Training / advisory for SMEs supplying to large companies in 4 regions

6 D. Shortlisted Initiatives PASS Trust Business Development Gateway Matching Grants Program Cluster Competitiveness Program AECF 6 AMDT Kaizen TECC T-LED

7 E. Overview of Shortlisted Initiatives Name Structure Financing Support TA support Value chains 1 PASS Trust Trust Credit Guarantee Limited for business plan Agribusiness 2 Business Development Gateway Project (TPSF + consultant) Seed capital Training All 3 Business Development Scheme / Matching Grants Program (MGP) 4 Cluster Competitiveness Program 5 Africa Enterprise Challenge Fund (AECF) 6 Agricultural Markets Development Trust Project (TPSF + consultant) Project (TPSF + consultant) Project KPMG transitioning to trust Trust Loans and interest free loans Training Studies / Training Limited Through market facilitators All Agribusiness Clean Energy Sunflower Maize, Pulses 7 KAIZEN phase 1 Project - consultant Kaizen Manufacturing 8 Tanzania Entrepreneurship and Competiveness Center (TECC) Trust Linkage to small loans Training All 9 Tanzania Local Enterprise Development Project consultant NGO with local partners Linkage to providers Designing matching grant for technology Training Advisory Various depending on regions 7

8 F. Initial Observations / Lessons Various approaches / instruments Focus on agribusiness limited on manufacturing Program design and making it operational takes time Significant overhead costs Continuity challenge legal structure / funding is important M&E challenges especially baselines Longer term impact rarely tracked 8

9 G. FYDP II Industrialization and Export Scenarios (LOW) Comparative Advantages (HIGH) Zone 3 Strategically worth the effort to enhance/create market niche Zone 4 Not worth the effort Zone 1 Strategic quick wins industries Zone 2 Strategically worth the effort to enhance compekkveness Fig. 3.5 (LOW) Markets (HIGH) Scenarios for Tanzania s Industrialization and Export Specialization Fig. 3.5 Scenarios for Tanzania s Industrialization and Export Specialization 9

10 H. FYDP II Scenarios - products Zone 3 : Products where Tanzania s Comparative Advantage is growing but world demand is falling Zone 1 : Products where both Tanzania s Comparative Advantage and world demand are growing ceramic sinks, wash basins; containers for transportation; fllters (i.e., optical elements); jute and other textile bast fibres; Zone 4: Products where both Tanzania s Comparative Advantage and world demand are falling cashew nuts, cereals (excluding. those which have been hulled); cocoa beans, whole/broken, raw/roasted; coconuts; gold (including gold plated with platinum); oil seeds and oleaginous fruits; oil-cake and other solid residues; precious stones (excluding diamonds) and semi-precious; sesame seeds Zone 2: Products where Tanzania s Comparative Advantage is falling but world demand is rising 10 wooden furniture of a kind used in offices; wood sawn/chipped lengthwise, sliced/peeled; T-shirts, singlets and other vests; electrical transformers (excluding dielectric); durum wheat; bars and rods of iron/non-alloy steel; angles, shapes and sections of iron/non-alloy steel; aerials and aerial reflectors vegetable fats and oils; tanned/crust hides and skins of bovine; sunflower seed /safflower oil; palm kernel/babassu oil; iron and non-alloy steel in primary forms; footwear with outer soles and uppers of rubber/plastic; foliage, branches and other parts of plants; boxes, cases, crates and similar articles; beer made from malt; articles for the conveyance/packing of goods.

11 I. WBG Project Initial TTL / Client ideas 11 P4R approach Firm Level: o Support high growth SMEs along the target value chains (TVC) o Improve technical skills (technology??) o Managerial skills / capacity Spatial: o Support clusters/ industrial parks / SEZ for TVCs o Hard infrastructure o Soft infrastructure Target Value Chains o Agro-Processing o Textiles o Leather o Light Manufacturing

12 J. Design Considerations for Firm Level Support Desired outcomes Jobs; Revenue; Exports; Productivity Type of firms Firm selection Type of support (can be a combination) TA Provided by Instrument Implementation Structure Small / Medium; Start ups / Established Firms Targeting, application, competition Finance Loan / Credit Guarantee Technology TA - training, mentoring, twinning, standards Staff Partners Consultants (pre-selected or firm specific) Grant Matching Grant Legal Entity Project Unit 12

13 K. Initial recommendations Keep program simple / focused Define target value chains clearly Identify firms to support (especially for medium sized firms) Work with existing trusts / projects if possible (at least for Agri-business) Design incremental measurable activities (e.g. adding a value chain or region) If there is a need to design a new implementation structure use trust model Consider supporting BDS providers (e.g. SIDO) 13