TEMA: COORDENADAS CARTESIANAS DESTREZA CON CRITERIO DE DESEMPEÑO:

The fourth phase of BSPS in Tanzania runs 2013-2019 and is currently in its inception phase. The total budget for BSPS IV is DKK 600 million. The development objective of BSPS IV is “Improved employment and income opportunities for farmers and micro, small and medium enterprises (MSMEs) through green inclusive growth”. The programme has the following three main components:

1. Agricultural Market Development

2. Improved Business Environment, comprising three sub-components: 2.1 Local Investment Climate

2.2 BEST-Dialogue
 2.3 CTI/DI Twinning

3. Improved Access to Finance, comprising two sub-components:

3.1 Continuation of the current support to Financial Sector Deepening Trust

3.2 Continuation of the current support to Private Agriculture Sector Support

Agricultural Market Development (Component 1)

The immediate objective of this component is defined as “Targeted agricultural markets in Tanzania work better”. The support is to be implemented by a multi-donor funded Trust called Agricultural Markets Development Trust (AMDT), which is currently being set up jointly by Danida, Sida, Irish Aid and the Swiss Agency for Development Cooperation.

Once made operational, the AMDT will work with private sector, government stakeholders and civil society organisations to implement a Making Markets Work for the Poor (M4P) approach to value chain development that spurs changes to market systems that have a broad and sustained impact on the lives of small-holder farmers and agricultural MSMEs.

AMDT will also indirectly provide information, advice and support that helps private sector and civil society organisations and smallholder farmers to lobby for reform of sectoral business environments that improve

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the functioning of selected agricultural value chains. Finally, AMDT will improve the capacity of private sector organisations, lead firms, smallholder farmers, civil society organisations and government authorities to intervene in agricultural value chains in a manner that improves the performance of MSMEs and the functioning of selected agricultural value chains.

It is expected that the AMDT during the first phase will engage in 3-5 value chains and 1-2 cross-cutting sectors, and facilitate the equivalent of 100,000 full time jobs and increase income for 300,000 farmers. Only one value chain has been identified for support at this stage, and that is sunflower.

Local Investment Climate (LIC) (sub-component 2.1)

LIC focuses on the critical constraints to business growth and economic development at the district level. It involves both support to public-private dialogue and value chain development. The budget for this support is DKK 107.6 million.

The support aims at helping the Local Government Authorities (LGAs) and the business community to identify and priorities the challenges it faces in the local business environment and will facilitate district- level Public-Private Dialogue (PPD). LIC will support practical reform initiatives within areas as business registration and licensing and local land use and administration that remove local obstacles to business growth. Furthermore, the LIC will establish a Small Industrial Facilities Fund (SIFF). This will facilitate investment in public infrastructure and private business facilities with public good characteristics to unlock critical constraints in local markets and value chains, and create new business opportunities for local business women and men. The investments will be targeting the agribusiness in the region. LIC will provide a combination of technical assistance and funding for investments.

BEST-Dialogue (sub-component 2.2)

This support is focused on advocacy and public private dialogue. It builds on the BSPS III and the BEST- Advocacy (AC) Component that ran from 2008-2013. The objective of BEST-Dialogue (2013-2018) support is to make Tanzania’s business environment more conducive to sustainable private sector growth. BEST-Dialogue will be working with the private sector and other non-state actors to complement the role of the Government of Tanzania in improving the business environment. It will also to support the business community and other non-state actors to design and implement advocacy campaigns, and to participate in public-private dialogue in a more informed, professional and constructive manner. It will support the production of quantifiable evidence that will be used to inform advocacy and dialogue, while improving the skills and management of these processes within the business community. BEST-Dialogue will bolster the efforts of PSOs to engage in public discussions concerning the Tanzanian business environment, the economic coherence and pertinence of value chains and the importance of private sector-led growth. Four outcomes are foreseen under BEST-Dialogue:

 Outcome 1 – The Advocacy and Dialogue Fund: Through its advocacy and dialogue grant funds,

BEST-Dialogue will help PSOs and other targeted non-state CSO actors to research and prepare reform proposals that can be presented to government through PPD processes and advocacy campaigns.

 Outcome 2 – Capacity building: BEST-Dialogue will help selected PSOs to be more effective in

their advocacy and dialogue efforts through the development of strategic competencies and capacities. The BEST-Dialogue will use a wide range of approaches to strengthen the capacity of Tanzania’s private sector organisations.

 Outcome 3 – Communications and media: BEST-Dialogue will work with the media to encourage

the development of media markets in which business issues are presented and discussed. BEST- Dialogue will also provide support for the development of business journalism.

 Outcome 4 – Research and knowledge management: Education, training and research on

business and investor concerns influence the ways in which public policy for business is formulated and revised. This programme outcome draws on the knowledge generated by the programme and its partners (i.e. PSOs, universities, government) to contribute to a broader understanding of business environment reform issues and how these can be addressed.

Confederation of Tanzanian Industries (CTI) and Confederation of Danish Industries (DI) Twinning (sub-component 2.3)

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This sub-component will support the capacity of the private sector to engage in fruitful public-private dialogue processes by revitalising the partnership between the Confederation of Tanzanian Industries (CTI) and the Danish Confederation of Industries (DI). The objective is to strengthen CTI’s institutional capacity to serve its members and build increased awareness on EAC and environmental issues

The latest CTI/DI twinning project ran from 2003-2005. During this period DI and CTI worked in areas as strategy development, membership relations, communication, business development services and especially policy advocacy. Earlier support has created a solid foundation, but CTI needs to further consolidate its role as representing the industry in Tanzania. Furthermore, CTI represent a group of larger enterprises that have resources and in many cases will be first movers and set the agenda amongst the private sector stakeholders in Tanzania. The sub-component objective is CTI’s institutional capacity strengthened to serve its members and build increased awareness on EAC and Environmental issues. Three outcomes are foreseen under this support:

 Outcome 1 – CTI established as a key knowledge provider for all issues related to the framework

conditions for industry.
The sub-component aims to strengthen the Confederation of Tanzanian

Industries (CTI) through support to the organisation’s strategic development.

 Outcome 2 – Integration of Tanzanian companies in East Africa improved. The sub-component

will support CTI to advocate at a regional level to decrease trade friction costs and increase the share of non-traditional trade. Furthermore, the project will increase CTI’s capacity to assist its members to engage in business activities across the regional borders.

 Outcome 3 – Energy efficiency in Tanzanian companies improved.

Private Agriculture Sector Support (PASS) (sub-component 3.2)

This support, which falls under Component 3 (Improved access to finance), is focused on agricultural value chain development. The objective is to accelerate investments, financing and growth of commercial agriculture, agribusiness and agro-processing.

The Private Agricultural Sector Support (PASS) was first introduced in 2001 under Danida’s Agricultural Sector Programme Support with the view to enhance the access of farmers and agribusinesses to finance. In 2007, it was established as an independent trust. To date PASS has facilitated 2,000 loans with a value of DKK 350 million, benefitting approximately 100,000 farmers and agribusinesses. PASS serves as an important catalysing factor for making finance accessible to Tanzanian farmers and agribusiness. New products have been developed that hold a significant potential for up scaling and increasing the number of beneficiaries – it is this up scaling that BSPS IV supports.

The strategic goals for PASS 2013-2018 include: i) Expanding the number of beneficiaries significantly, amongst other by introducing a range of new products that allow a shift from working directly with all end beneficiaries to working with a wider range of financial intermediaries that have a significantly larger outreach; ii) Continued geographical expansion; iii) Provision of business incubation services to agribusiness SMEs (starting in sunflower and horticulture) and iv) Introduction of environmentally sound practices in agriculture and agribusiness – e.g. organic farming or investments in renewable energy solutions.

In the period 2013-2017 PASS foresees reaching about 250,000 small and medium agro-entrepreneurs (individual and in groups) directly and via intermediate financial institutions. This will again potentially link closely to work under outcome area 3.