presentation on bdg poverty policy week made at j. k. nyerere hall wednesday 27, november 2013

Business Development Gateway

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Presentation on BDG

Poverty Policy Week

Made at J. K. Nyerere Hall

Wednesday 27, November 2013


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• Established 4Established 4thth November 1998 November 1998

• To advocate and seek change in public policy for To advocate and seek change in public policy for

better business environment better business environment

• Has 500 members organised in 11 economic clustersHas 500 members organised in 11 economic clusters

• Promotes Private Sector Development Promotes Private Sector Development

• Now pushing for empowerment of local businesses Now pushing for empowerment of local businesses

• Implemented cluster 2 of PSCPImplemented cluster 2 of PSCP

TPSF IN BRIEF


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Background to BDG Programme

• Part of PSCP of GOT programme to realise

Enterprise Development as per NSGRP (MKUKUTA)

• Implemented on behalf of GOT by Tanzania Private

Sector Foundation (TPSF)

• Four (4) years programme funded by IDA Credit

(2008-10), and by DFID (2010-13)

• Covers all 26 regions of URT


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BDG Objectives were

• To inculcate entrepreneurship culture to participants To inculcate entrepreneurship culture to participants

• To teach participants essentials of writing a BP To teach participants essentials of writing a BP

• To teach participants benefits of formalising business To teach participants benefits of formalising business

• To teach marketing, Production and Biz recordsTo teach marketing, Production and Biz records

• To increase business income of participants To increase business income of participants

• To create employment To create employment

• To reduce income poverty To reduce income poverty


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Mafunzo na uwezeshaji

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Programme Implementation

• Identification of Partners (SIDO, ZNCCIA, NMB, PBZ, TCCIA)

• Train technical partners (SIDO, ZNCCIA, Business Advisors)

• High level programme launch – Kilimanjaro Hotel

• Countrywide promotion (TVs, Radios, Newspapers, road

shows)

• Competitive application with deadlines – business

like

• Personal participation – no representation, no

excuses

• Build Competences (train, test, inspect, advice)

• Reward HARD WORK (grants, follow up)

• Aftercare Services – Business Clubs


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Programme Results - SMEs

• Over 33,000 applications in four years 33,000 applications in four years

• Over 9,200 trained in practical business Over 9,200 trained in practical business

development development

• TZS 20 bn disbursed in seed grants in 4 years TZS 20 bn disbursed in seed grants in 4 years

• 6, 000 Winners awarded SEED grants 6, 000 Winners awarded SEED grants

• 42% women, 42% women, 40% youth participants 40% youth participants

• 85% formalised, 40% created jobs in first year

• 82% increased incomes, 80% increased profits

• 142 BDSPs trained on Innovation and 142 BDSPs trained on Innovation and

competitiveness competitiveness


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Programme Results – Partners

• TPSF known in all parts of the country TPSF known in all parts of the country

• TCCIA – Promotion and member recruitment TCCIA – Promotion and member recruitment

• ZNCCIA – Promotion and member recruitment ZNCCIA – Promotion and member recruitment

• SIDO – Promotion, training, assessing, records SIDO – Promotion, training, assessing, records custody custody

• NMB Bank - Has NMB Bank - Has developeddeveloped special loan for BDG special loan for BDG

• PBZ, Zanzibar - Developing special loan for BDGPBZ, Zanzibar - Developing special loan for BDG

• ZIFA – Training ZIFA – Training

• COSTECH – Promotion and recruitment of clients COSTECH – Promotion and recruitment of clients

• TIC – Promotion and integration TIC – Promotion and integration


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Why establish and support TECC (I)Why establish and support TECC (I)

• Successor institution to BDG and CCPSuccessor institution to BDG and CCP

• Evident need for an institution with practical focus Evident need for an institution with practical focus

on Enhancing Innovation and Enterprise on Enhancing Innovation and Enterprise

Competitiveness (BDG & CCP experience)Competitiveness (BDG & CCP experience)

• Time to think of innovative approaches to SMEs Time to think of innovative approaches to SMEs

interventions (going beyond the current equation) interventions (going beyond the current equation)

IDEA+TRAINING+SEED MONEY=SUCCESS IDEA+TRAINING+SEED MONEY=SUCCESS

• Evident cases of potential medium-large scale Evident cases of potential medium-large scale

industrialists industrialists


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Why establish and supportWhy establish and support TECC (II)

• ManyMany more SMEs need skills more SMEs need skills (3.1m in 2012 survey)

• Scale-up After Care Services for BDG & CCP AlumniScale-up After Care Services for BDG & CCP Alumni

• Business to Business Linkage (investment, markets)Business to Business Linkage (investment, markets)

• Business Growth Support (BDS, Finance, Incubation)Business Growth Support (BDS, Finance, Incubation)

• Focus on Innovation and CompetitivenessFocus on Innovation and Competitiveness

• Capacity Building of BMOs, BDSPs, LGAsCapacity Building of BMOs, BDSPs, LGAs

• Training Cluster Initiative FacilitatorsTraining Cluster Initiative Facilitators

• Resources for growth finance , risk capital, innovationResources for growth finance , risk capital, innovation


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Conclusions• TPSF has demonstrated capability to supervise

• BDG programme has effected changes to businesses

• BDG programme brings positive results in lives

• Sales, Incomes, Employment, Taxes, Confidence

• BDG programme has just shown a way, more is needed

• Build capacity for innovation and competitiveness

• Build capacity to access business growth resources

• Business Finance, Business Services

• Mentoring and handholding

• Train BDSPs and LGAs on innovation and competitiveness

• Tanzania need all support it can get to become competitive


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Young Beneficiaries Young Beneficiaries Harieth Kaduma in Mtwara, aged 24 years. Prior to joining

BDG she had one old sewing machine which she worked

with on a veranda in front of someone’s shop. She did not

have many clients because she was not trusted and had

no capital to buy materials. She participated in BDP and

went through to stage three and won TZS 2.4 million

grant. With the grant she bought several manual and

electrical sewing machines, 2 over-lock machines and

embroidery machine. She is now renting better premises

in a commercial area, employs 2 full time tailors and

trains an average of 4 girls every 6 months. As a result

she can now receive large orders and sufficient raw

materials.


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More Beneficiaries More Beneficiaries


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ENDS

Thank You for your time & Contributions

Godfrey SimbeyeExecutive Director

TPSF – Voice of the Private Sector!

presentation on bdg poverty policy week made at j. k. nyerere hall wednesday 27, november 2013

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