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Compete Project Final Report

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Compete Project Final Report COMPETE PROJECT FINAL REPORT JANUARY 2019 January 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI. COMPETE PROJECT FINAL REPORT JANUARY 2019 Program Title: USAID/Compete Project Sponsoring USAID Office: Economic Growth and Infrastructure Contract Number: AID-294-C-12-00001 Contractor: DAI Date of Publication: January 30, 2019 Author: Compete Project Staff The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. CONTENTS ABBREVIATIONS .............................................................................................................. VI EXECUTIVE SUMMARY ...................................................................................................... 8 PROJECT BACKGROUND ................................................................................................ 14 THE CONTEXT ...................................................................................................................... 15 THEORY OF CHANGE ............................................................................................................ 16 PROJECT IMPLEMENTATION .......................................................................................... 19 ASSESSMENTS ..................................................................................................................... 19 MARKET SYSTEMS APPROACH .............................................................................................. 21 FIRM-LEVEL ASSISTANCE PROGRAM ..................................................................................... 22 IMPLEMENTATION GUIDING PRINCIPLES ................................................................................. 23 MONITORING, EVALUATION, AND LEARNING ............................................................... 26 LOGICAL FRAMEWORK ......................................................................................................... 27 LOGICAL FRAMEWORK—WEST BANK ................................................................................... 28 LOGICAL FRAMEWORK—GAZA ............................................................................................. 28 COMMUNICATIONS .......................................................................................................... 29 ACCOMPLISHMENTS BY SECTOR: WEST BANK .......................................................... 31 AGRIBUSINESS ..................................................................................................................... 32 ICT ...................................................................................................................................... 59 TECHNOLOGY ....................................................................................................................... 65 TOURISM .............................................................................................................................. 68 STONE AND MARBLE ............................................................................................................ 75 ACCOMPLISHMENTS BY SECTOR: GAZA ...................................................................... 80 AGRIBUSINESS ..................................................................................................................... 83 FISH .................................................................................................................................... 88 ICT ...................................................................................................................................... 90 TOURISM .............................................................................................................................. 97 TEXTILE AND GARMENT ........................................................................................................ 99 FURNITURE ........................................................................................................................ 103 PROGRAM OPERATIONS—STAFFING, FINANCE, AND SECURITY ............................ 105 STAFFING ........................................................................................................................... 105 OPERATIONAL MANAGEMENT .............................................................................................. 106 SECURITY .......................................................................................................................... 109 LESSONS LEARNED AND RECOMMENDATIONS ........................................................ 110 ANNEX I: MANAGEMENT INDICATORS ........................................................................ 115 ANNEX II: OPERATIONAL PLAN INDICATORS ............................................................. 116 USAID/COMPETE FINAL REPORT – JANUARY 2019 v ABBREVIATIONS BFTA Bethlehem Fair Trade Artisan BRC British Retail Consortium BSP Business Service Provider BSO Business Support Organization CLAD Certified LabVIEW Associate Developer CIBER Competitiveness Impact of Business Environment Reform COP Chief of Party DAI DAI Global, LLC FLAP Firm Level Technical Assistance Program FAO UN Food and Agriculture Organization GDP Gross Domestic Product GEW Global Entrepreneurship Week Geo-MIS Geographical Management Information System Global GAP Global Good Agriculture Practices HLITOA Holy Land Incoming Tour Operators Association ICT Information and Communications Technology iOS Internet Operating System ISP Internet Service Provider MSA Market Systems Approach MOA Ministry of Agriculture MOTA Ministry of Tourism and Antiquities MoU Memorandum of Understanding NI National Instruments NIS New Israeli Shekel NM Nautical Miles PalTrade Palestine Trade Center PCBS Palestinian Central Bureau of Statistics PIP Palestinian Internship Program PITA Palestine Information Technology Association PPP Public Private Partnership PPR Performance Plan and Report PPU Palestine Polytechnic University RFP Request for Proposal vi USAID/COMPETE FINAL REPORT – JANUARY 2019 SMEs Small and Medium Enterprises TWW Treated Waste Water UAE United Arab Emirates USAID United States Agency for International Development USDA United States Department for Agriculture USM Union of Stone and Marble WB West Bank USAID/COMPETE FINAL REPORT – JANUARY 2019 vii EXECUTIVE SUMMARY DAI is pleased to present the final report for the USAID-funded Enterprise Development for Global Competitiveness (EDGC) (Compete) program. Since 2012, this flagship USAID project has weathered political uncertainty and violence to consistently and effectively support the transformation of targeted sectors within the Palestinian economy into globally competitive industries. Beyond achieving — and, in many cases, exceeding — its contractually mandated targets, USAID/Compete has, through its innovative approach to implementation, developed a new model for building the sustainable capacity of firms in both the West Bank and Gaza, providing tailored solutions that have addressed critical impediments to competitiveness. The Compete Project activities fell into one of two components: Component A: Assist Palestinian Enterprises to Compete in the Global Market Component B: Support to Business Service Organizations and Service Providers Throughout, the project team worked hand-in-hand with local partners and targeted beneficiaries with the potential for growth and export, delivering a broad range of assistance across four key industries in the West Bank (WB): agriculture, information and communications technology (ICT), tourism, and stone and marble. In Gaza, the project delivered a broad range of assistance across four key industries: agriculture, fishing, ICT, and textile and garment. Initial assistance to selected firms in Gaza’s tourism and furniture industries was halted after it became evident that these sectors were not economically feasible. A Snapshot of USAID/Compete Impact All told, more than 1,797 firms received assistance — 1,381 in the WB and 416 in Gaza. Combined, these firms: ● Increased sales by $383 million, with $308 million of that amount generated in the WB and $75 million generated in Gaza. ● Increased exports by $254 million, with $223 million of that amount generated in the WB and $31 million generated in Gaza. ● Created 6,932 jobs, with 5,438 of those generated in the WB and 1,494 generated in Gaza. ● Leveraged $105 million in private-sector investment, with $97.6 million of that amount invested in the WB and $7.5 million invested in Gaza. ● Introduced new technologies to 3,320 hectares, with 2,890 hectares of that land in the WB and 430 hectares of it in Gaza. These gains resulted in impressive returns on USAID’s investment, with each job created costing $4,104 on average and each dollar allocated generating $14 in sales, nine dollars in exports, and three dollars in mobilized investment. 8 USAID/COMPETE FINAL REPORT – JANUARY 2019 Clear-Eyed Theory of Change These results traced to the project’s singular and clearly define objective — a critical mass of competitive Palestinian firms. Getting there required an equally streamlined theory of change, one that predicated systemic transformation of the Palestinian economy, wherein an interconnected ecosystem of firms and business support organizations could successfully compete, upon pairing committed stakeholders across sectors with a range of dynamic assistance packages. These packages,
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