The key objective of this project was to assist micro/small and medium sized enterprises (MSMEs) to improve productivity and achieve international competitiveness resulting in increased employment, higher levels of investment, more bankable companies, greater export capability and growing market share in the domestic market..
The Matching Grants Programme comprised two grant schemes:-
(i) The Tanzania Business Development Scheme (TBDS) provided 50% cost-sharing grants to private firms, for the use of outside services and travel, within a properly-formulated business development plan, aimed at improving competitiveness, and thus boosting sales. The TBDS had a grant fund of $6m. This was committed and disbursed over the three and a half years of operation of the Programme.
(ii) The Technical Innovation Applied Research Scheme (TIAS) provided grants to technical institutions and vocational schools. The main services considered in this scheme were training courses, primarily technical, sold either to individuals or to private firms (grant fund available was $10 m).
The expected outputs were:-
Within three years, the Programme would reach and support a minimum of 1,600 private firms. At least 1000 skilled professionals would be created. TBDS Training Provider Grants world provide services to a minimum of 1000 micro enterprises and their employees in all regions of the country. In collaboration with institutions and target firms, the team would carry out at least 10 research projects focussed on market analyses, production processes and quality standards needed for competitiveness. Research projects would consider the potential of Tanzanian research institutions, technical institutions and vocational schools to respond to private sector needs, as well as strategies to create effective demand for business development services. TIAS would support a minimum of 10 institutions or school-led feasibility studies and complete a minimum of five significant investment projects.
TDI provided one international key expert (Programme Manager) and three local long term experts and a number of short term international and local expertise, as well as local support staff.
MGP Targets Vs Outcome TBDS
Expected Outputs TBDS
Outcome
1. Reach and support 500 firms
ü 1,843 firms registered
ü 1,208 applications received
ü 910 approvals
1. 1,000 skilled professionals will be created
ü 16,784 individuals have received training:
Ø 346 companies staff training approval
Ø Training Programme (in cooperation with EDC).
Ø Training Through Associations
- TCCIA (DSM) - 50 Companies
- Tancraft - 110 companies
- HoT- 30 members
1. TBDS training provider grants will provide services to a minimum of 1,000 micro enterprises and their employees in all regions
ü 13 Service provider Grants
ü 2,010 (at least) micro enterprises and their employees trained in 18 regions.
1. At least 10 research projects
ü 304 Research project undertaken with Private Firms through TBDS
ü 14 Research project undertaken with TIAS institutions
Expected outcomes (from PIM)
Outcomes
1. Each $1 of grant money will generate $15 of additional sales over the following five years.
ü Companies are currently predicting
ü $20 of additional sales for each $1 grant award from phase 1 and
ü $17 of additional sales for each $1 grant award from phase
Other outcomes (from MGP M&E)
1. Companies supported through TBDS already report
ü 64% already increasedsales (20:1 predicted)
ü 63% completed staff training
ü 39% opened new markets
ü 38% achieved new export sales
ü 32% new promotional techniques
· 8% of these are web based
ü 22% new or adapted products
ü 7% already increasedemployment
· % Sales to rise as sales consolidated
ü 6% received Quality Certification
ü 5% increased access to finance
TIAS
Targets Vs Outcome
Expected Outputs
Outcome
1) TIAS - minimum 10 feasibility studies
ü 14 Feasibility Studies Completed
2) TIAS - a minimum of five significant investment projects
ü 9 Significant Investments underway
Ø 7 completed – 3 with minor completion renmaining
Ø 2 Tenders awaiting no-objection
Ø 1 approved and withdrew
Ø 1 Feasibility study not approved
Ø 3 further feasibility studies completed but due to lack of funds not converted to major investment
Other expected outputs (from PIM)
Outcome
3) Grants are aimed at viable investments which will lead to real economic benefits, primarily higher productivity in private firms.
ü 50 new degree and diploma courses created with Private Sector endorsement
ü 9,240 Student intake over three years
ü Fee income generation 198% of TIAS investment