3Rd Quarter Progress Report Fiscal Year 2019

Cooperative Agreement No. AID-621-LA-16-00002

3RD QUARTER PROGRESS REPORT FISCAL YEAR 2019

This quarterly progress report was made possible through support provided by Feed the Future through the U.S. Agency for International Development. The opinions expressed herein are the sole responsibility of the International Executive Service Corps (IESC) and do not necessarily reflect the views of USAID or the United States Government.

Submitted on July 30, 2019 by: IESC Contact: Andrea Patrick Associate Vice President International Executive Service Corps (IESC) 1900 M Street NW, Suite 500 Washington, DC 20036 Email: [email protected]

Acronyms and Abbreviations iv Activity/Overview Summary 1 Program Overview 1 Quarterly Progress Report 1 Milestones 1 Component 1: Implementing Policies for Growth 1 Component 2: Business Development Services 1 Component 3: Financing for Growth 2 Cross-cutting: Value Chain Investment Opportunities 2 Challenges and Critical Issues 2 Component 1: Implementing Policies for Growth 2 Component 2: Business Development Services 2 Component 3: Financing for Growth 3 Third Quarter FY19 Progress 3 Component 1: Implementing Policies for GROWTH 3 Component 2: Business Development Services 4 Component 3: Financing for Growth 5 Cross-cutting: Value Chain Investment Opportunities 6 Planned Activities for Next Reporting Period 7 Component 1: Implementing Policies for Growth 7 Component 2: Business Development Services 7 Component 3: Financing for Growth 8 Cross-cutting: Value Chain Investment Opportunities 8 Finance and Administrative Highlights and Issues 9 Crosscutting Issues and USAID Forward Priorities 9 Communications and Outreach 9 Grants 9 Environmental Compliance 10 Gender and Youth 10 Sustainability 10 Monitoring, Evaluation, and Learning 10 Annex 1: ENGINE Progress Towards Indicators I Annex 2: Program Financial Report XI Annex 3: Stakeholder Outeach and Meeting SUmmary XII Annex 4: Key Stakeholders and Zanzibar Engagement XXIII Annex 5: Volunteer Assignments XXIV Annex 6: Success Stories XXVI iii

AYA Advancing Youth Activity B2B Business to Business BDS Business Development Services BDSP Business Development Service Provider BFS Business Formalization Survey CC City Council DBC District Business Council DC District Council ENGINE Enabling Growth through Investment and Enterprise Program FIs Financial Institutions FY Fiscal Year HO Home Office ICMA International City/County Management Association ICT Information and Communications Technologies IESC International Executive Service Corps LGA Local Government Authority LGACI Local Government Authority Competitiveness Index LGTI Local Government Training Institute MC Municipal Council MEDA Mennonite Economic Development Associates MEL Monitoring, Evaluating, and Learning MFI Microfinance Institution MoU Memorandum of Understanding MSME Micro, Small and Medium Enterprise MTIM Ministry of Trade, Industries and Marketing OCGS Office of the Chief Government Statistician PBZ People’s Bank of Zanzibar PCT Pyrethrum Company of Tanzania PO-RALG President’s Office for Regional Administration and Local Government PPD Public-Private Dialogue PRPT Policy Reform Priority Setting Tool RBC Regional Business Council RFA Request for Application SCSC Swahili Coast Salt Company SME Small and Medium Enterprise SoW Scope of Work SUGECO Sokoine University Graduate Entrepreneurs Cooperative TA Technical Assistance TADB Tanzanian Agricultural Development Bank TCCIA Tanzania Chamber of Commerce, Industry and Agriculture iv

TIOB Tanzania Institute of Bankers TOT Training of Trainers TZS Tanzanian Shillings UI User Interface USAID United States Agency for International Development USD United States Dollars UX User Experience ZALGA Zanzibar Association of Local Government Authorities ZNCCIA Zanzibar National Chamber of Commerce, Industry and Agriculture

PROGRAM OVERVIEW

Pursuant to Cooperative Agreement No. AID-621-LA-16-00002, the International Executive Service Corps (IESC) implements the Feed the Future Tanzania Enabling Growth Through Investment and Enterprise Program (ENGINE). The period of performance for the award is September 1, 2016 – August 31, 2020.

IESC is the lead implementer of ENGINE, joined by sub-contractors the International City/County Management Association (ICMA), Mennonite Economic Development Associates (MEDA) and Diligent Consulting Limited. Under this Agreement, IESC supports USAID’s Development Objective 2: Inclusive broad-based economic growth sustained.

QUARTERLY PROGRESS REPORT

The purpose of this document is to report the program’s progress during the 3rd Quarter, Fiscal Year 2019 (FY19). The 2nd Quarterly report was submitted during this reporting period.

Milestones

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

 ENGINE supported six local government authorities (LGA) – Mbeya, Morogoro, Iringa and Urban Municipal Council (MC), West A and West B in Unguja – review and align their investment promotion strategies with the current National Industrialization Strategy and Policy.  The Policy Reform Priority Setting Tool (PRPT) and LGA Competitiveness Index (LGACI) online system was completed, tested in the Morogoro and Iringa LGAs; then refined and presented to the President’s Office for Regional Administration and Local Government (PO-RALG) Management for approval.  Supported the Ministry of Trade, Industries and Marketing (MTIM) and Office of the Chief Government Statistician (OCGS) to disseminate business formalization survey reports to their stakeholders.  Supported and facilitated the finalization of the city council (CC) of Mbeya’s revenue enhancement plan.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

 Two volunteer experts delivered technical assistance (TA) to 42 business development service providers (BDSPs).  Four additional BDSPs signed Collaboration Agreements with the ENGINE Program.  41 BDSPs sold services to 974 MSMEs worth approximately $145,600 USD.

COMPONENT 3: FINANCING FOR GROWTH

 Seven volunteer assignments were completed supporting FINCA Tanzania, VisionFund Tanzania, and the Tanzania Institute of Bankers. Another four volunteers—all female—provided remote User Interface/User Experience (UI/UX) testing for the Bizfundi platform.  54 bankers received training during the quarter, including 27 trained on credit risk modeling through the Tanzania Institute of Bankers’ (TIOB’s) online training platform and ten who attended TIOB’s five-day course on agriculture finance. Both courses were developed with support from ENGINE.  Through their loan activity with ENGINE, Yetu Microfinance issued 346 agriculture micro-loans this quarter to borrowers in Morogoro and Iringa, valued at 251 million TZS (approximately $110,000 USD).  This quarter, BDSPs trained by ENGINE on credit readiness reported facilitating 34 loans to seven financial institutions worth a total of 495 million TZS (approximately $215,000 USD).

CROSS-CUTTING: VALUE CHAIN INVESTMENT OPPORTUNITIES

 Finalized action plans for investment facilitation in the poultry, salt and pyrethrum value chains and received buy-in from all three lead firms on the planned approach.  Identified promising tie-in between salt and seaweed production by using seaweed as a source for locally- sourced iodine.  Brokered a meeting between the Pyrethrum Company of Tanzania (PCT) and Sokoine University Graduate Entrepreneurs Cooperative (SUGECO) to discuss farm management needs and employment opportunities.  Linked the Swahili Coast Salt Company (SCSC) with Amana Bank in Zanzibar to promote Sharia-compliant lending to salt farmers in Pemba.  Secured an initial sale of 200 chickens from Silverlands to Makifu village.

CHALLENGES AND CRITICAL ISSUES

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

 Recurring bureaucratic setbacks and frequent leadership changes at LGAs led to interruptions and delays of planned activities.  Difficulty in sourcing needed volunteer experts to facilitate and execute this quarter’s planned activities.  Planned Solid Waste Management activities were halted, impacting work programmed for the quarter.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

 Expansion of business development services (BDS) to cooperatives has been delayed by the Tanzania Commission of Cooperatives Development and Moshi Cooperatives University, who have yet to sign a memorandum of understanding (MOU) with the Program to implement the strategy to increase the number of private cooperative trainers.

COMPONENT 3: FINANCING FOR GROWTH

 Partnering with financial institutions (FIs) continues to prove difficult; FIs are generally slow to respond and reluctant to commit.  The financial services sector remains sluggish. A recent report from the World Bank cited the magnitude of non-performing loans and high borrowing costs as primary causes. 1  Senior leadership changes among FIs serve as both a response to sluggish performance and further cause of disruption. This quarter FINCA hired, and subsequently fired, its new CEO. VisionFund continues to operate with an acting-CEO. Furthermore, ENGINE grant applicant UMI Microfinance indicated that an internal re- organization will preclude them from participating in receiving technical assistance support from ENGINE in the next quarter.

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

Facilitation of Public Private Dialogues (PPD): ENGINE supported and facilitated 15 PPDs (eight with Mainland LGAs and seven with Zanzibar LGAs) in the following activities and events: a Revenue Enhancement Plan workshop in Mbeya CC; Investment Promotion Strategy validation workshops; a Regional Business Council (RBC) meeting in Mbeya; one PPD was conducted in Morogoro MC during Morogoro Regional Business Council and another PPD during LGACI & PRPT online system pretesting; Kyela District Business Council meeting; Iringa MC during LGACI and PRPT online pretesting and Mufindi District Council’s (DC) Business Formalization Survey (BFS) Report dissemination workshop.

Policy Reform Tools PRPT and LGACI: The LGACI excel-based tools development was completed and converted into an online system and tested in three Unguja LGAs, as well as Morogoro MC, Mbeya CC and Iringa MC.

In collaboration with ENGINE and the President’s Office for Regional Administration and Local Government (PO- RALG) technical teams, the PRPT and LGACI Online System was further improved by pre-testing of both tools by Local Government Training Institute (LGTI) consultants in Morogoro MC and Iringa MC. Further refinement of the system was done by incorporating comments from the testing phase and PO-RALG – Information and Communications Technologies (ICT) Directorate in Dodoma.

The final version of the online system was presented to PO-RALG senior management in Dodoma, where the go- ahead was granted for next steps to complete the online system. These include conducting Training of Trainers (ToT) in six ENGINE LGAs, launching the online system, and rolling the system out to all mainland LGAs.

Institutional Strengthening, Capacity Building through Volunteer Experts and Consultants Assignments: Volunteer expert Michael Malinoff, who partnered with local consultant Noel Kaombwe, developed the Mbeya City Revenue

1 Tanzania Economic Update, World Bank, July 2019; http://documents.worldbank.org/curated/en/873031563454513018/pdf/Tanzania- Economic-Update-Human-Capital-The-Real-Wealth-of-Nations.pdf

Enhancement Plan. Other activities included preparation of Investment Promotion Strategies (three LGAs in Unguja, plus Morogoro MC, Mufindi DC and Mbeya CC), LGA Strategic Plan reviews in Kyela DC and Kilosa DC. The PRPT and LGACI Online System development has been ongoing and facilitated by Tanzanian consultants.

Roadmaps: ENGINE facilitated approval and publicized three roadmaps that were uploaded onto the Morogoro MC website: ‘Building Permit Procedures’, ‘Building Permit Fee Schedule’, and ‘Fish Farming Business Procedures’. All three roadmaps were approved during the second quarter.

By-Laws: Component One facilitated and supported the drafts of 18 by-laws in Zanzibar LGAs: ten in Pemba (Wete and Chake Chake) and eight in Unguja (Urban MC, West A and West B LGAs). Morogoro MC was supported to undertake three by-law reviews in 29 Wards and re-drafting of three by-laws. Following the completion of consultative meetings in 36 wards, the Mbeya CC conducted an analysis of these comments to improve eight draft by-laws. These will be later introduced for statutory committees’ and full council’s approval next quarter.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

Identification and Engagement of New BDSPs: Ten new BDSPs were identified (three in Mbeya, six in Morogoro, and one in Iringa). Of these, five BDSPs signed collaboration agreements with the program. Cumulatively, by the end of the reporting period, 121 BDSPs had developed plans to receive TA from the program.

Provision of TA to BDSPs: Two volunteer experts provided TA to 42 BDSPs from the four program locations. One volunteer expert, Ms. Diana Lilla, trained and coached 11 BDSPs from Iringa and Mbeya on how to support the formation and training of small holder farmer groups. Another volunteer expert, Ms. Gladys Situma, trained and coached 42 BDSPs from all four program locations on how to improve their training skills and materials. Overall, as a result of the TA provided, 13 BDSPs reported to have developed 23 new products/services that attracted 974 new MSMEs to purchase BDS.

Facilitation of Linkages Between BDSPs and MSMEs: BDS Coordinators participated in four meetings where they introduced and linked ENGINE-supported BDSPs to MSMEs operating in the horticulture and rice value chains. In Zanzibar, the Program collaborated with the Mboga na Matunda Program to introduce ENGINE-supported BDSPs to 45 MSMEs involved in horticulture. In Iringa, ENGINE-supported BDSPs were introduced to a group of 50 women entrepreneurs during an entrepreneurship training organized by the local government. In Mbeya, 150 rice farmers and processors were introduced to ENGINE-supported BDSPs. In Morogoro, the Mboga na Matunda Program helped to introduce ENGINE supported BDSPs to eight vegetable producer groups. As a result of these linkages and networking meetings, 41 BDSPs reported to have sold services to 974 MSMEs during the reporting period.

Facilitation of Linkages Between BDSPs and Key Government Institutions: The program organized a meeting that brought together government institutions responsible for business formalization/compliance procedures and Mbeya ENGINE-supported BDSPs. The meeting was attended by 34 participants: 19 from government institutions; 12 from BDSPs; and, three from other USAID IPs). Through that meeting, the ENGINE-supported BDSPs increased their knowledge of formalization and compliance procedures which is vital in improving service offerings to MSMEs.

COMPONENT 3: FINANCING FOR GROWTH

Consultant and Volunteer-led Support: Tara Heusé Kenyon completed a five-week assignment supporting the Tanzania Institute of Bankers (TIOB) in developing their three-year strategic plan. The plan will play a critical role in ensuring that TIOB is meeting their members’ needs while identifying opportunities for broadening their sources of revenue. The TIOB Governing Council approved the strategy, which is the first of three elements of the plan.

Michael Seufert spent two weeks working with FINCA Tanzania to improve their project management capabilities. As a result of Mr. Seufert’s support, FINCA created an IT Steering Committee and elected its project manager as the secretary. The new committee is being used to make major decisions for all projects at FINCA and to promote closer collaboration among technical, business, and management staff working on projects.

Dr. James Small spent two weeks with VisionFund Tanzania to improve their leadership skills. Dr. Small produced a dozen recommendations for VisionFund’s senior leadership which are currently under review.

Grants to Financial Institutions: Through their grant with ENGINE, Yetu Microfinance provided 346 loans valued at 251 million TZS. In addition, Yetu trained 212 youth across four villages in the Morogoro region on financial literacy, horticulture farming, and group formation, leading to the creation of youth clubs in Mofu, Mlimba, Namawala, and Msolwa Ujamaa. In Zanzibar, Yetu developed a prototype Islamic lending product, trained eight of their staff on the new product, and conducted awareness raising events attended by 91 people. Lending on the new product is planned for the next quarter.

FINCA’s grant activity to develop an alternative scoring mechanism was suspended by their newly appointed CEO as part of a larger assessment of core and non-core activities. Progress on the activity resumed after the departure of the same CEO later in the quarter. ENGINE is now reviewing the grant to determine whether the activity will be continued.

TIOB-led Financial Sector Strengthening: In June, TIOB held their fourth Agriculture Finance training. Ten bankers from two banks, Tanzanian Agricultural Development Bank (TADB) and the People’s Bank of Zanzibar (PBZ), attended the five-day training course. Another 27 bankers received training on credit risk modeling through TIOB’s online training platform. Both training courses were developed with support from ENGINE.

Credit Readiness for MSMEs: ENGINE worked with three FI partners to develop a loan product guide intended as a tool to assist BDSPs when working with MSME clients. The table includes information about 25 different lending products, including funding range, rates and fees, and requirements. ENGINE plans to continue to expand the tool to include information from more FIs.

ENGINE organized a Business to Business (B2B) event in Zanzibar for 21 BDSPs to attend a presentation from Amana Bank to learn about Amana’s Sharia-compliant savings and lending products.

To date, BDSPs have reported over 700 credit readiness inquiries from MSMEs, nearly 400 of which have received or are currently receiving credit readiness support, resulting in 64 MSMEs linked to nine financial institutions. This quarter, credit readiness-trained BDSPs reported MSME clients receiving 34 loans worth over 200,000 USD.

MSME Outreach and Awareness Raising: ENGINE partnered with the Feed the Future Tanzania Advancing Youth Activity (AYA) to train 58 community mobilizers on BDS, financing, and the Bizfundi platform. These mobilizers are expected to share this information with over 1,000 AYA youth beneficiaries in the coming quarter. Three-hundred and twenty businesses signed up to Bizfundi through Facebook promotion. ENGINE staff also participated in two youth-focused events: Mzumbe University’s Entrepreneurship Camp; and, SUGECO’s Jiajiri Business Dialogue. A total of 278 university students were reached through these events.

Bizfundi Market and Information Linkage Platform: This quarter, 344 new users registered on the platform, including 338 MSMEs (60 percent female and 77 percent youth), four BDSPs and two FIs. By the close of the quarter, the total number of registered users was 3,511. There were also 95 new app downloads, bringing the total to 821. Bizfundi also launched an online marketplace for users to promote their products and services to other users. In addition, a help feature was added to the login function to improve usability. Forty-seven percent of BDSPs surveyed this quarter reported getting new business contacts through the platform.

CROSS-CUTTING: VALUE CHAIN INVESTMENT OPPORTUNITIES

Poultry Value Chain, Iringa and Zanzibar: After identifying an opportunity for the village of Makifu to supply poultry products to lodges in neighboring Ruaha National Park, commitments were secured with Silverlands to supply chickens and feed to the village of Makifu so that they may raise chickens for eggs and meat. Over 200 residents in Makifu village agreed to join one of two new producer groups. In addition, two potential breeders were identified in the village. Due to strict regulations for abattoirs, the village is only able to sell eggs to the lodges. The chickens will either be sold locally or transported to Iringa for slaughter. By the end of the quarter, an initial order of 200 chickens was placed with Silverlands.

A similar arrangement was identified in Zanzibar, where ENGINE identified a representative of 30 hotels on the island of Unguja who would like to capacitate a village poultry operation. A willing village has been identified; the plan is to start with 100 chickens, selling eggs and eventually meat to the area hotels.

Salt Value Chain, Zanzibar: ENGINE brokered two meetings with Amana Bank and SCSC to explore financing of salt farmers in Pemba. The first meeting was with Amana’s relationship officer in Zanzibar. The second was with its branch manager. At the time of writing, a third meeting is being planned in early July with Amana’s senior leadership in Dar es Salaam. The opportunity consists of two parts, the first is equipment financing to salt farmers. The second is a transfer of existing loans to ten salt farmers from UMI Microfinance to Amana Bank. In addition, ENGINE is working with its BDSP network in Zanzibar to offer business training to SCSC’s salt producers in Pemba and identifying new engineering and hydrology experts who can help upgrade salt farms’ productivity on a fee basis.

Pyrethrum Value Chain, Iringa and Mbeya: ENGINE spearheaded a market linkage between PCT and SUGECO, a training institute in Morogoro that trains youth in farm management. PCT has identified large landholders interested

in growing pyrethrum but lack dedicated and trained farm managers. SUGECO has a pipeline of trained farm managers looking for work. ENGINE set up a meeting between the CEO of PCT and SUGECO. ENGINE is also marketing business training to PCT’s newly-formed pyrethrum producer groups.

PLANNED ACTIVITIES FOR NEXT REPORTING PERIOD

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

ENGINE will continue to support PPDs across several areas and settings in all 11 LGAs. These will include the development of Strategic Plans, Investment Promotion Strategies, Revenue Enhancement Plans, PRPT and LGACI online ToTs, RBCs, district business councils (DBC), and PPDs during by-law reform activities, among others.

Volunteer Experts and Consultant Assignments: ENGINE will engage three volunteer experts to support private sector development on a district level through strengthening Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) district chapters of Kilosa, Kyela and Mufindi and undertake an organizational development assignment. ENGINE will support the development of Communication and Marketing strategies for Morogoro, Mbeya, and Iringa Regional chapters of TCCIA. Zanzibar National Chamber of Commerce, Industry and Agriculture (ZNCCIA) will also engage a volunteer expert to develop an advocacy strategy to enhance their sustainability.

Other potential assignments include support to the Zanzibar Planning Commission to review the Zanzibar Vision 2020 and advise on the Zanzibar 2050 Development Strategy. The program also intends to support five LGAs in Unguja and Pemba to undertake Strategic Planning to improve their administrative procedures.

Roadmap development will continue in several LGAs and include but are not limited to: Right of Occupancy (title deeds) acquisition procedures and payment rates; and environmental and agriculture by-laws roadmaps.

PRPT and LGACI: ENGINE will continue working with PO-RALG and other development partners to undertake ToTs as well as support LGAs in using the online system to implement improved policies and improve service delivery. After the training, the online system will be handed over to and be launched by PO-RALG, who will provide the system to the remaining LGAs on both the Mainland and in Zanzibar.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

Provision of Technical Assistance to BDS Providers: Three volunteer experts and one local consultant will provide technical assistance to a minimum of 40 BDSPs in the coming quarter. Two volunteer experts will assist on aspects of strategic planning and facilitation of market linkages to BDSPs in Mbeya and Iringa. Another volunteer expert will work on aspects of resource mobilization with Zanzibar and Mbeya BDSPs. A local consultant will compile a full package of business formalization and compliance procedures and orient BDSPs in Mbeya, Iringa, and Morogoro on how to utilize the package while assisting MSMEs’ business formalization and compliance issues. e-Coupon System: The e-Coupon mechanism will be re-instated in the coming quarter to provide support to MSMEs operating in the ENGINE priority value chains (Pyrethrum, Poultry and Salt) and in agribusiness and nutrition enterprises. Refresher trainings and orientation of BDSPs to the revised criteria for MSMEs to access e-Coupons will

be conducted at the beginning of the quarter. Issuance of e-Coupons is expected to commence before the end of August 2019.

Facilitation of Linkages Between BDSPs and MSMEs: The Program will facilitate at least three linkage meetings to introduce ENGINE supported BDSPs to MSMEs operating along the three priority value chains, as well as in agribusiness and nutrition enterprises.

Facilitation of Linkages Between BDSPs and Government Institutions: The program will also organize a meeting in Morogoro to link ENGINE-supported BDSPs and key government institutions responsible for business formalization and compliance. The objective is to enhance the capacity of Morogoro BDSPs to improve their service offering to MSMEs on aspects of business formalization and compliance procedures.

COMPONENT 3: FINANCING FOR GROWTH This agriculture Technical Assistance to Financial Institutions: Tara Kenyon will return to Tanzania to training will help banks conduct a masterclass on credit risk analytics and credit availability to MSMEs for invest more and take economic growth. She will conduct an abbreviated version of the training more risks on actors in to Tanzanian bank CEOs and a workshop on financial analytics to staff from the Bank of the agri-chain with Tanzania, Tier 2 financial institutions and banks. Another volunteer expert will work expectation of delivering economic with staff from Bank of Africa on customer service. ENGINE will recruit another impact to Tanzania’s volunteer expert will work with staff from Yetu Microfinance on Islamic Finance, leading rural areas. to the launch of a new Islamic finance lending product by Yetu in Zanzibar. - Feedback from bank staff participant of ENGINE will launch a print and radio promotion for credit readiness services. TIOB’s June Agriculture Finance training. Bizfundi Upgrades: The Bizfundi marketplace will be fully integrated with the Ninayo agriculture marketplace. The financial institution portal will be launched on the Bizfundi platform. ENGINE will issue a call for expressions of interest from organizations interested in obtaining ownership of the Bizfundi platform.

CROSS-CUTTING: VALUE CHAIN INVESTMENT OPPORTUNITIES

 An RFP will be issued to BDSPs to offer training on poultry as a business and recordkeeping in Iringa for Makifu village producer groups.  An RFP will be issued to BDSPs for training salt producer groups on business skills and financial management.  A volunteer expert will be recruited to develop marketing materials to promote pyrethrum cultivation among large landholders and to promote SUGECO’s farm manager program.  Pending results of iodine testing, further efforts will be undertaken to explore the viability of linking the seaweed value chain with the salt value chain in Zanzibar. ENGINE has already met with the UN in Tanzania, which is supporting 24,000 seaweed workers in Zanzibar and would be interested in collaborating on iodine.

Staff Recruitment and Personnel Changes: There were no changes of key personnel during the reporting period. The field office hired Mercy Nyanda as the Program’s Communication Specialist in May, filling a role that had been open since December 2018. Elizabeth Masseri joined the human resources (HR) and operations team as an HR/Administrative Assistant in June. The Program’s System Development Coordinator, Canicius Mwita, resigned in order to continue his education at the University of Georgia. Home-office personnel changes were also completed during this quarter, with David Stein becoming the home-office program manager, replacing Jessica Feldman who resigned in June.

Audit: Per local regulations, the ENGINE team submitted the annual NGO submission report for the mainland. The submission consisted of the Program’s annual performance report and audited financial reports for 2018.

Value-Added Tax (VAT): On May 20, ENGINE received two separate refunds from the Government of Tanzania for 73,499,994 TZS. The Program received another payment on June 25 of 22,339,598 TZS. In total, 95,839,592 TZS, or approximately 40,000 USD, was refunded to ENGINE.

COMMUNICATIONS AND OUTREACH

During the reporting period, ENGINE’s Communications team produced and edited seventeen short videos showcasing BDSPs and MSMEs and distributed them on social media channels. ENGINE’s promotional materials were updated, and new materials developed. ENGINE continued to use Facebook for outreach and to raise awareness of its activities. The Communications team began work with the other components to plan Nane Nane celebrations in three regions.

GRANTS

Component 1. Training of four LGAs on the LGACI through the LGTI Sub-grant were completed during the reported quarter. The LGTI sub-grant close out is underway and will be finalized at the end of July. The dissemination of the business formalization survey report conducted through OCGS sub-grant was conducted in April 2019. Sub-grant closeout was expected to take place at the end of April but was delayed to June 30, 2019 per the Technical Steering Committee request to obtain additional support from OCGS.

Component 2. ENGINE continued to support the design and promotion of innovative BDS products for new markets and MSMEs involved in agriculture and agribusiness through six BDSPs who received sub-grants.

Component 3. On June 21, ENGINE received approval for the Amana Bank Limited sub-grant. The agreement is expected to be signed in July. ENGINE continued to support YETU Microfinance Bank to implement the Women and Youth Enterprises Financing sub-activity. During the quarter, YETU Microfinance Bank finalized the development of the Islamic Agro-business loan product and initiated an Islamic financing activity in Zanzibar. ENGINE was notified by

FINCA Microfinance Bank on its decision to resume sub grant activity. Activities under this grant will start in July, once ENGINE and FINCA agree on a strategy to ensure achievement of project impact given the remaining time.

ENVIRONMENTAL COMPLIANCE

ENGINE and Amana Bank updated terms of their partnership agreement and finalized the scope of work for an environmental compliance consultant to develop the Amana Bank environmental compliance policy. The consultancy will be conducted during the next quarter.

ENGINE disseminated Environmental Management 2018 Regulations to ENGINE affiliated BDSP managers in Mbeya. Dissemination was conducted during a meeting held on May 30, 2019 between BDSPs and key government institutions regarding business formalization and compliance issues. A total of 12 BDSP managers were in attendance.

GENDER AND YOUTH

ENGINE participated in a Gender and Youth Midterm Review process facilitated by an international consultant which culminated in a Year 4 Action Plan. In collaboration with USAID’s Advancing Youth Program, ENGINE facilitated training to community mobilizers to instruct youth savings groups on how to access BDS through the Bizfundi digital platform. Additionally, ENGINE showcased and presented the Bizfundi digital platform to youth at the Mzumbe University Entrepreneurship Camp and SUGECO Jiajiri Business Dialogue events.

SUSTAINABILITY

ENGINE reached consensus with PO-RALG to have the PRPT and LGACI systems uploaded into their server, and to jointly conduct ToTs to all six ENGINE LGAs. This approach will ensure sustainability and continuous application of these tools developed under Component 1 after the Program’s conclusion.

The Monitoring, Evaluation and Learning (MEL) team supported a Data Quality Assessment (DQA) of FY’18 reported results for three Standard Indicators EG.3.2-27 (Value of agriculture-related financing accessed as a result of USG assistance), EG 3.1-12 (Number of agricultural and nutritional enabling environment policies analysed, consulted on, drafted or revised, approved or repealed, and implemented with USG assistance) and YOUTH-3 (Percentage of participants in USG-assisted programs designed to increase access to productive economic resources who are youth). Several meetings were held with the DQA team at the ENGINE head office, as well as in Iringa and Mbeya with ENGINE field staff, four partner LGAs and two private sector institutions. A final DQA debrief session where the findings from the DQA will be shared with senior management and MEL team at the ENGINE head office is tentatively scheduled for the first week of August 2019.

ANNEX 1: ENGINE PROGRESS TOWARDS INDICATORS

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Activity Purpose: Increase private sector investment leading to inclusive, broad-based economic growth in the SAGCOT, plus Zanzibar Aggregate N/A USD 2,236,739 USD USD 2,788,250 USD 2,887,343 USD 1,748,463 USD 7,424,055 237% USD USD 9,660,794 119% 3,134,871 8,097,766 Value of new private sector Custom/ Morogoro N/A USD 828,237 N/A USD 1,166,868 USD 1,021,890 USD 692,961 USD 2,881,719 N/A USD 3,709,956 P1 investment facilitated by Outcome ENGINE Iringa N/A USD 598,017 N/A USD 735,217 USD 765,250 USD 577,666 USD 2,078,133 N/A USD 2,676,150 Mbeya N/A USD 673,776 N/A USD 852,396 USD 1,049,980 USD 406,938 USD 2,309,314 N/A USD 2,983,090 Zanzibar N/A USD 127,705 N/A USD 32,797 USD 47,445 USD 64,786 USD 145,027 N/A USD 272,732 Component 1: Implementing policies for growth Aggregate N/A Data unavailable 50% Data unavailable Data unavailable Data unavailable Data unavailable N/A At least 50% N/A 0% of All 11 Percent of target LGAs with Morogoro N/A Data unavailable N/A Data unavailable Data unavailable Data unavailable Data unavailable target LGAs N/A improved or maintained Custom/ maintain or 1A Local Government Authority N/A Data unavailable N/A Data unavailable Data unavailable Data unavailable Data unavailable N/A Outcome Iringa improve their Competitiveness Index N/A Data unavailable N/A Data unavailable Data unavailable Data unavailable Data unavailable LGACI N/A (LGACI) scores Mbeya scores Zanzibar N/A Data unavailable N/A Data unavailable Data unavailable Data unavailable Data unavailable N/A Aggregate 71 326 160 83 238 89 410 256% 480 807 168% Stage 1 29 101 80 23 75 26 124 155% 240 254 106% Number of business Custom/ enabling environment Stage 2 37 158 40 46 96 42 184 460% 120 379 316% Output policies analyzed, consulted 3 45 30 11 51 19 81 270% 70 129 184% 1B Stage 3 and on, drafted or revised, Stage 4 2 16 10 2 16 0 18 180% 30 36 120% Outcome approved, and implemented with USG assistance Stage 5 0 6 0 1 0 2 3 20 9 45% Total Policies Passing 12 114 N/A 16 33 32 81 N/A 207 1 or More Steps Aggregate 80 167 80 20 24 12 56 70% 243 303 125% Morogoro Municipal 21 10 N/A 0 1 3 4 N/A 35 Number of policies with Council 1C reform recommendations Custom/ 0 16 N/A 0 0 0 0 N/A 16 made to the relevant Kilosa District Council Outcome authority in forums with key Iringa Municipal 21 18 N/A 4 1 0 5 N/A 44

stakeholders present Council Mufindi District 0 13 N/A 0 1 2 3 N/A 16 Council

I – Annex One

II – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Number of broad public and Aggregate 14 27 24 11 12 8 31 129% 67 72 107% private stakeholders’ Morogoro 3 11 N/A 3 2 2 7 N/A 21 Custom/ business enabling 1E Iringa 5 5 N/A 3 2 0 5 N/A 15 Output environment (BEE) policy forums established or Mbeya 3 7 N/A 1 2 4 7 N/A 17 supported Zanzibar 1 3 N/A 4 5 2 11 N/A 15 Aggregate N/A 56.2% 7.0% N/A N/A N/A N/A N/A 56% 281% Morogoro Municipal N/A 14.5% N/A N/A N/A N/A N/A 14% Council Kilosa District Council N/A 32.8% N/A N/A N/A N/A N/A 33% Iringa Municipal At least 20% N/A 44.1% N/A N/A N/A N/A N/A 44% Council increase Mufindi District from N/A Data unavailable N/A N/A N/A N/A N/A N/A Council baseline as an average Average percent change Mbeya City Council N/A 19.7% N/A N/A N/A N/A N/A across all 20% Custom/ from previous year in 1F mainland Outcome business licenses issued Kyela District Council N/A 169.8% N/A N/A N/A N/A N/A 170% Zanzibar Urban target LGAs, across all target LGAs N/A Data unavailable N/A N/A N/A N/A N/A N/A Municipal Council and at least 10% across Chake Chake Town N/A Data unavailable N/A N/A N/A N/A N/A all targeted N/A Council LGAs in Wete Town Council N/A Data unavailable N/A N/A N/A N/A N/A Zanzibar N/A West A Municipal N/A Data unavailable N/A N/A N/A N/A N/A N/A Council West B Municipal N/A Data unavailable N/A N/A N/A N/A N/A N/A Council Aggregate 253 404 600 369 159 199 727 121% 1500 1384 92% Number of individuals Women 182 144 N/A 143 46 50 239 N/A 565 trained on the job in Custom/ women/youth integration, Youth 71 168 N/A 176 80 92 348 N/A 587 1G Data Output policy analysis, policy Public Sector Affiliated 285 N/A 221 118 159 498 N/A 783 design, advocacy, and unavailable Private Sector Data implementation 119 N/A 148 41 40 229 N/A 348 Affiliated unavailable

III – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Number of operating units Custom/ across target LGAs 1H Aggregate 51 127 140 61 76 85 222 159% 377 400 106% Outcome receiving policy analysis capacity building Aggregate 9 39 58 13 7 17 37 64% 150 85 57% Number of institutions Data Custom/ engaged in policy reform Public Sector Affiliated 28 N/A 11 6 14 31 N/A 59 1I unavailable Output work strengthened and/or Private Sector Data established 11 N/A 2 1 3 6 N/A 17 Affiliated unavailable Component 2: Equipping for growth USD USD Aggregate N/A USD 333,682 USD 149,586 USD 107,560 USD 145,567 USD 402,713 101% USD 736,395 54% 400,000 1,360,000 Custom/ Value of sales by ENGINE Women 2A N/A USD 113,645 N/A USD 67,059 USD 47,670 USD 70,742 USD 185,471 N/A USD 299,116 Outcome supported BDS providers Owned/Managed Youth N/A USD 119,094 N/A USD 98,129 USD 55,791 USD 66,825 USD 220,744 N/A USD 339,838 Owned/Managed Aggregate N/A 8.1% 5.0% 7.9% 7.3% 8.9% 8.1% 161% 8.1% 54% Women N/A 8.6% N/A 6.9% 7.2% 7.9% 7.4% 8.6% Owned/Managed Jointly N/A 9.9% N/A 8.8% 10.5% 13.5% 10.9% 9.9% Owned/Managed Percent change in revenue Youth 15% of MSMEs within the ZOI N/A 8.1% N/A 9.0% 8.1% 8.1% 8.4% Increase On 8.1% Custom/ Owned/Managed 2B purchasing services from average Outcome Morogoro N/A 9.2% N/A 9.3% 9.5% 11.3% 10.0% 9.2% ENGINE-supported BDS Iringa N/A 9.2% N/A 9.7% 9.0% 8.0% 8.9% from 9.2% providers Baseline Mbeya N/A 5.5% N/A 6.6% 5.6% 6.0% 6.1% 5.5% Zanzibar N/A 9.9% N/A 10.0% 8.0% 12.1% 10.0% 9.9% Micro N/A 8.3% N/A 8.1% 7.4% 8.8% 8.1% 8.3% Small N/A 10.0% N/A 6.3% 3.0% 10.5% 6.6% 10.0% Medium N/A 8.0% N/A N/A N/A N/A N/A 8.0% Number of jobs created by Aggregate N/A 199 824 37 144 183 364 44% 2186 563 26% private enterprises, Women N/A 107 N/A 16 62 75 152 N/A 258 Custom/ business associations, and 2C Youth N/A 186 N/A 36 130 165 330 N/A 516 Outcome CSOs within the ZOI who received ENGINE Morogoro N/A 34 N/A 14 20 8 42 N/A 75 assistance Iringa N/A 31 N/A 10 24 51 84 N/A 115 IV – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Mbeya N/A 113 N/A 10 72 71 153 N/A 265 Zanzibar N/A 23 N/A 3 18 46 66 N/A 89 Aggregate N/A 479 525 388 148 183 719 137% 1404 1198 85% Sex: Female N/A 150 N/A 155 43 46 244 N/A 394 Sex: Male N/A 317 N/A 232 103 136 471 N/A 788 Sex: N/A N/A 12 N/A 1 2 1 4 N/A 16 Age: Youth (15-35) N/A 194 N/A 191 67 85 343 N/A 537 Age: Non-Youth (35+) N/A 266 N/A 185 78 96 359 N/A 625 Number of individuals Age: N/A N/A 19 N/A 12 3 2 17 N/A 36 EG3.2/Ou 2D participating in USG food Type of Individual: tput N/A 291 N/A 223 117 156 496 N/A 787 security programs People in Government Type of Individual: Proprietors of USG- N/A 72 N/A 25 15 6 46 N/A 118 assisted private sector firms Type of Individual: N/A 116 N/A 140 16 21 177 N/A 293 People in civil society Aggregate N/A 4308 1000 1191 1034 974 3199 320% 2600 7507 289% Women N/A 1926 N/A 313 444 185 942 N/A 2868 Owned/Managed Youth N/A 2228 N/A 293 344 635 1272 N/A 3500 Owned/Managed Number of MSMEs Morogoro N/A 534 N/A 521 208 277 1006 N/A 1540 Custom purchasing services from 2E /Output ENGINE-supported BDS Iringa N/A 1097 N/A 73 614 364 1051 N/A 2148 providers Mbeya N/A 1535 N/A 331 36 235 602 N/A 2137 Zanzibar N/A 1142 N/A 266 176 98 540 N/A 1682 Micro N/A 3299 N/A 553 973 955 2481 N/A 5780 Small N/A 288 N/A 63 53 19 135 N/A 423 Medium N/A 85 N/A 12 8 0 20 N/A 105 Aggregate 691 3945 2000 377 1910 425 2712 136% 5700 7348 129% Number of MSMEs Custom/ Women 2F informed about BDS and 368 1793 N/A 133 811 275 1219 N/A 3380 Output Owned/Managed financial services Youth 147 2254 N/A 240 1231 322 1793 N/A 4194 Owned/Managed V – Annex One

Number of new products or Custom/ 2I services offered by Aggregate 0 193 20 18 36 23 77 385% 48 270 563% Outcome ENGINE-supported BDSPs

Component 3: Financing for growth Percent of DCA utilization Custom/ 3A among partner financial Aggregate N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Outcome institutions Value of Loans- USD USD N/A USD 716,890 USD 1,624,450 USD 1,816,611 USD 844,716 USD 4,285,777 515% USD 5,002,667 277% Aggregate 832,500 1,803,750 Value of Loans- EG 3.2- Value of agriculture-related N/A USD 319,994 N/A USD 790,416 USD 843,389 USD 449,929 USD 2,083,734 N/A N/A USD 2,403,728 Women Owned 3B 27/ financing accessed as a Value of Loans- Male Output result of USG assistance N/A USD 393,914 N/A USD 830,407 USD 969,235 USD 394,787 USD 2,194,429 N/A N/A USD 2,588,343 Owned Value of Loans- Jointly N/A USD 0 N/A USD 3,627 USD 0 USD 0 USD 3,627 N/A N/A USD 3,627 Owned: Gender

VI – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Value of Loans- N/A: N/A USD 2,982 N/A USD 0 USD 3,987 USD 0 USD 3,987 N/A N/A USD 6,968 Gender Value of Loans- Youth N/A USD 206,011 N/A USD 456,354 USD 598,330 USD 264,964 USD 1,319,648 N/A N/A USD 1,525,659 Owned Value of Loans- Non- N/A USD 510,879 N/A USD 1,118,890 USD 1,218,216 USD 579,752 USD 2,916,858 N/A N/A USD 3,427,738 Youth Owned Value of Loans- Jointly N/A USD 0 N/A USD 48,943 USD 0 USD 0 USD 48,943 N/A N/A USD 48,943 Owned: Youth Value of Loans- N/A: N/A USD 0 N/A USD 262 USD 64 USD 0 USD 326 N/A N/A USD 326 Youth Value of Loans- Micro N/A USD 499,360 N/A USD 1,233,048 USD 1,539,432 USD 796,598 USD 3,569,078 N/A N/A USD 4,068,438 Value of Loans- Small N/A USD 217,530 N/A USD 260,303 USD 277,179 USD 48,118 USD 585,600 N/A N/A USD 803,130 Value of Loans- N/A USD 0 N/A USD 131,099 USD 0 USD 0 USD 131,099 N/A N/A USD 131,099 Medium # of Loans- Aggregate N/A 1631 N/A 3,818 4,598 2,845 11,261 N/A N/A 12,892 # of Loans- Women N/A 880 N/A 2,305 2,473 1,620 6,398 N/A N/A 7,278 Owned # of Loans- Male N/A 738 N/A 1,506 2,117 1,225 4,848 N/A N/A 5,586 Owned # of Loans- Jointly N/A 0 N/A 7 0 0 7 N/A N/A 7 Owned: Gender # of Loans- N/A: N/A 13 N/A 0 8 0 8 N/A N/A 21 Gender # of Loans- Youth N/A 663 N/A 1,400 1,725 964 4,089 N/A N/A 4,752 Owned # of Loans- Non-Youth N/A 968 N/A 2,289 2,872 1,881 7,042 N/A N/A 8,010 Owned # of Loans- Jointly N/A 0 N/A 128 0 0 128 N/A N/A 128 Owned: Youth # of Loans- N/A: Youth N/A 0 N/A 1 1 0 2 N/A N/A 2 # of Loans- Micro N/A 1500 N/A 3,778 4,559 2,836 11,173 N/A N/A 12,673 # of Loans- Small N/A 131 N/A 38 39 9 86 N/A N/A 217 # of Loans- Medium N/A 0 N/A 2 0 0 2 N/A N/A 2 3C Aggregate N/A 8.3% 5% 3.6% -9.6% -0.3% -2.1% -42% 15% 8% 55%

VII – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date Women N/A -21.9% N/A -7.6% -12.7% -3.8% -8.0% N/A N/A -22% Owned/Managed Percent increase in number Youth of business loans issued to N/A -1.8% N/A -21.2% 18.1% 7.3% 1.4% N/A N/A -2% Owned/Managed Custom/ MSMEs operating within the FINCA N/A 28.0% N/A 38.2% 37.5% -1.0% 24.9% N/A N/A 28% Outcome ZOI from financial institutions receiving VISIONFUND N/A -53.2% N/A -40.1% -32.7% -23.4% -32.0% N/A N/A -53% ENGINE assistance YETU N/A Not Reported N/A -19.5% -54.1% 18.1% -18.5% N/A N/A 0% BANK OF AFRICA N/A 50.0% N/A Data unavailable Data unavailable Data unavailable Data unavailable N/A N/A 50% Aggregate N/A 38.6% 5% 6.8% 1.9% -19.0% -3.4% -68% 15% 39% 258% Women N/A -44.7% N/A 0.6% 7.0% -10.4% -0.9% N/A N/A -45% Percent increase in value of Owned/Managed loans issued to MSMEs Youth N/A -27.6% N/A -16.4% 42.8% 2.9% 9.8% N/A N/A -28% Custom/ operating within the ZOI Owned/Managed 3D Outcome from financial institutions FINCA N/A 8.2% N/A 18.4% 18.8% -18.0% 6.4% N/A N/A 8% receiving ENGINE assistance VISIONFUND N/A -44.7% N/A -37.9% -4.7% -18.5% -20.4% N/A N/A -45% YETU N/A Not Reported N/A 5.6% -51.8% -24.4% -23.5% N/A N/A 0% BANK OF AFRICA N/A 152.4% N/A Data unavailable Data unavailable Data unavailable Data unavailable N/A N/A 152% Aggregate 75 109 200 83 10 54 147 74% 550 331 60% Custom/ Number of Financial 3E Women 29 36 N/A 30 0 25 55 N/A 120 Output Institutions staff trained Youth 13 61 N/A 57 8 11 76 N/A 150 Number of financial institution policies or Custom/ practices changed to cater 3F Aggregate N/A 4 3 4 0 2 6 200% 7 10 143% Output to overlooked clients as a result of ENGINE assistance Aggregate 180 2505 400 34 433 358 825 206% 1380 3510 254% Custom/ Number of users registered 3G Women 66 1242 N/A 12 136 217 365 N/A 1673 Outcome on the BizFundi platform Youth 60 1645 N/A 24 322 253 599 N/A 2304 Cross-Cutting (Volunteerism) Aggregate 28 28 36 10 0 9 19 53% 117 75 64% Custom/ Number of volunteer expert CC1 Women 10 9 N/A 6 0 6 12 N/A 31 Output assignments mobilized Component 1 11 12 N/A 3 0 1 4 N/A 27

VIII – Annex One

Footnotes: 1. For Custom Indicator 2A, the value of sales of BDS providers includes both sales of stand-alone BDS by traditional types of BDSPs as well as sales of providers who bundle BDS with other goods/products that they sell to MSME clients. An example of such a bundled BDS product would be agri-input sellers providing BDS extension advice to farmers who purchase fertilizers and chemicals from them, where the cost of that extension advice is bundled with the agri-input sales price. It would be cost-prohibitive to attempt to extrapolate the value of the BDS itself from the sale price and thus the total value is taken. 2. For Custom indicator 3A, CRDB’s guarantee was terminated by DCA in Oct- 2017, CBW had its banking license revoked by the BOT in Jan-2018 and PRIDE’s guarantee was suspended by DCA in Apr-2018. AKIBA indicated a voluntary suspension of participation in DCA and ENGINE-related activities while it undergoes a change in senior leadership and strategic direction. Once new leadership in Akiba has been established, the relationship with DCA and ENGINE will need to be reestablished and any subsequent cooperation would need to be reconsidered. As new DCA loan portfolio guarantees are established by USAID, ENGINE will respond by establishing parallel working relationships and concordant targets.

IX – Annex One

MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Total ENGINE Performance Indicator ENGINE Year Two Title (source of Disaggregation Year One Total Y3 Cumulative Indicator (FY18) Q1FY19 Q2FY19 Q3FY19 LOP Type information) (FY17) Y3 Target Actuals to % Actuals to % Code Actuals Actuals Actuals Actuals Target Actuals date Date 3. "N/A" refers to data points where either no data collection was conducted by ENGINE as the activity implementation was not at a stage to reasonably yield results for the indicator, or data points where no Y2 or LOP targets were set in the MEL Plan. "Data unavailable" refers to data points where the activity implementation has proceeded to a stage to yield results, but no data can be reported due to either reporting issues faced with the partner or other issues related to the indicators reporting period (ie. Quarterly vs Annual reporting). 4. To accommodate Financial Institutions required lead times needed to consolidate their lending records and other data that they report to ENGINE at the end of each quarter, the FI reporting period will conclude one month prior to ENGINE's reporting period, e.g., Sept-Nov, Dec-Feb, Mar-May, Jun-Aug. 5. Due to data limitations relating to Financial Institutions capture of MSMEs employment level in their loans database, the FI's categorize the MSMEs size based on the size of their loans and/or loan product. Each FI based on their target market for loans, have slightly different ranges in loan sizes that define what is a Micro, Small or Medium sized enterprise. Based on secondary research and an analysis of each of their categorizations, ENGINE will define Micro enterprise as those taking loans up to TZS 5million (USD2,170 at current exchange rates), Small enterprise between TZS 5million to TZS 200 million (USD2,170 to USD87,000), and a Medium enterprise as between TZS 200million to TZS 800million (USD 87,000 to USD 347,000). This definition best fits with the FTF global definition based around employment (ie. Micro enterprise has less than 10 employees, Small has between 10 to 49 employees, and Medium has between 50 to 249 employees) and is a consequence of the Tanzanian FI partner database limitations. 6. For the percentage change type custom indicators 2B, 3C and 3D , following a review of the method used to calculate their cumulative LOP actuals (and also taking into account the method used during their target setting) it was agreed that the cumulative LOP actuals would be an annually calculated dataset, calculated by taking the sum of the yearly average percentage point changes. The yearly average would be calculated by taking the average of the percentage change in the indicators during the 4 quarters of the year.

X – Annex One

ANNEX 2: PROGRAM FINANCIAL REPORT

XI – Annex Two

ANNEX 3: STAKEHOLDER OUTEACH AND MEETING SUMMARY

Date Institution Meeting Outcome Component 1 4/4/2019 ENGINE, IMC & TCCIA ENGINE Component 1 success stories and achievement shared Agreed Schedule for By-laws review in Mbeya City, to be on 4/10/2019 Mbeya City Council 15th -20th and 23rd April 2019. 4/11/2019- Morogoro by-law review working Capacity building to the technical working group 4/12/2019 group and ENGINE staff 4/13/2019- Annual general Meeting approved some of the pending ZALGA 4/14/2019 documents and fee structure for membership TCCIA Mbeya and Mbeya City 4/13/2019 Schedule for LGACI pretesting Council Technical working group and 4/15/2019 - Stakeholders consultative meetings completed, and comments Ward Development committees 4/18/2019 collected in the 29 wards of Morogoro MC Joint 3 Unguja LGAs (Urban, West Investment Promotion Strategies presented and discussed by 4/16/2019 A and West B Municipalities) stakeholders 4/17/2019 Technical Steering Committee Prepared and arranged BFS dissemination workshop Ministry of Trade and Industries/ 4/18/2019 Office of Chief Government BFS stakeholder’s dissemination workshop conducted Statistician (MTI/OCGS) 4/19/2019 Iringa Municipal Council & TCCIA Pretested and Improved LGACI Questionnaires Joint 3 Unguja LGAs (Urban, West Stakeholders discussed and validated Local Government 4/23/2019 A and West B Municipalities) Authority Competitiveness Index (LGAACI) Tool 4/29/2019- Morogoro by-law review working Compilation of stakeholders’ comments from 29 wards of 4/30/2019 group and ENGINE staff Morogoro Status update of industrial establishments in each LGA within Morogoro Regional Business 4/30/2019 Morogoro Region given including strategies in place to Council meeting promote industrialization ENGINE-PORALG -DICT meeting Clear way forward towards completing online system agreed 4/30/2019 in Dodoma on Courtesy call was done, and participants were trained on Kilosa DC management and SP objectives, concepts and rationale of strategic planning, 5/6/2019 review consultants and ENGINE training on situational analysis, SWOC and stakeholders’ staff analysis were done successfully. Schedule and logistic arrangements for Investment Promotion 5/7/2019 Mbeya City Council Strategies validation meetings

XII – Annex Three

Date Institution Meeting Outcome 5/14/2019 Mufindi District Council Validated Mufindi’s investment promotion strategy 5/15/2019 Technical Steering Committee Agreed to develop BFS Action plan Morogoro and Iringa Municipal 5/20/2019 Councils & Private Sector Pretested and Refined Online PRPT & LGACI System Representatives. Morogoro & Iringa Municipal 5/21/2019 Council & Private Sector Pretested and Refined Online PRPT & LGACI System Representatives. 5/22/2019 Mbeya City Council Agreed schedule for Data Quality Assessment Morogoro and Iringa Municipal 5/22/2019 Councils & Private Sector Pretested and Refined Online PRPT & LGACI System Representatives. 5/23/2019 Mbeya City Council 2nd year Data Quality Assessed Morogoro and Iringa Municipal 5/23/2019 Councils & Private Sector Pretested and Refined Online PRPT & LGACI System Representatives. 5/24/2019 TCCIA Mbeya 2nd year Data Quality Assessed 5/24/2019 Kyela District Council 2nd year Data Quality Assessed Online system Technical team comprised of ENGINE staff, The technical team presented the completed deliverables to 5/28/2019 PORALG and Consultants and the component one Team Lead Component one team Lead and Policy Analyst 5/29/2019 ENGINE 2nd year Data Quality Assessed 5/30/2019 Iringa Municipal Council 2nd year Data Quality Assessed ENGINE staff, consultants and 5/30/2019 Refined online system presented to PORALG DICT Director PORALG staff 5/31/2019 Mufindi District Council 2nd year Data Quality Assessed ENGINE staff, consultants and Refined online system presented to PORALG management and 6/11/2019 PORALG Management approval given Agreed Schedule for Mbeya City Revenue Enhancement Plan 6/17/2019 Mbeya City Council M&E and Validation Stakeholders’ meeting Kyela District Council and DAS 6/18/2019 DBC meeting scheduled on 20th June 2019. Kyela ENGINE presented the status of ENGINE activities in Zanzibar 6/18/2019 USAID/ENGINE to Integrated Governance Baraza

XIII – Annex Three

Date Institution Meeting Outcome Kyela District Council and DAS Reviewed minutes of 13th February 2019 DBC meeting, 6/20/2019 Kyela photocopied and circulated invitations to members 6/21/2019 Mbeya City Council Official appointment letters to 6 selected participants 6/29/2019 Mufindi District Council Revised Investment Promotion Strategy 6/28/2019 Mbeya City Council Stakeholders’ Validated Revenue Enhancement Plan Component 2 Morogoro BDS Coordinator held a meeting with 10 MSMEs to 4/2/2019 10 MSMEs collect data for Quarter 3 reporting. Iringa BDS Coordinator held a quarterly feedback meeting with 4/8/2019 19 MSMEs 19 MSMEs to collect data for quarter 3 reporting. Morogoro BDS Coordinator held a meeting with 3 BDSs to fill 4/10/2019 MICROPHAS, TCCIA and SUGECO out Quarterly data collection forms and develop an action plan for formation of Morogoro BDSPs network. Zanzibar BDS Coordinator participated in FTF Mboga na Matunda Regional Chapter meeting which was attended by 45 participants including horticulture farmers, input suppliers, extension officers, processors, microfinance institutions, FTF Mboga na Matunda and officials from the Ministry of Agriculture, Natural Resources, 4/10/2019 MSMEs Livestock and Fisheries, Horticulture buyers from Central Market, LGA officials and FTF program partners. The objective of the meeting was to review the horticulture value chain success and challenges and set strategies for addressing the challenges for improved horticulture farming productivity. Iringa BDS Coordinator attended entrepreneurship training Iringa Municipal - Tosamaganga closing ceremony and talked to women entrepreneurs about 4/11/2019 Ward 50 women entrepreneurs business development services ENGINE provide through training closing ceremony BDSPs. The meeting was attended by 50 women entrepreneurs. Morogoro BDS Coordinator conducted an awareness creation MLALI VEGETABLE PRODUCER meeting to Morogoro vegetable producer groups where 4/11/2019 GROUP (Served by Mboga na representatives of 8 groups were sensitized to access BDS Matunda Project) through ENGINE supported BDSPs Iringa BDS Coordinator hosted a meeting with Advanced Youth 4/12/2019 USAID Advancing Youth Team program. The meeting focused more on understanding what ENGINE does and identify areas of collaboration.

XIV – Annex Three

Date Institution Meeting Outcome Zanzibar BDS Coordinator participated at the two-day Annual General Meeting of ZALGA which was officiated by the 4/13/2019- Zanzibar Association of Local Regional Commissioner for Urban West Region and attended 4/14/2019 Government Authorities (ZALGA) by all ZALGA members including 11 LGA Directors, 11 Councilors, ZNCCIA, ANGOZA and media. Morogoro BDSPs Coordinator facilitated a meeting with SIDO, TCCIA, MICROPHAS, BDSSPs to discuss about BDSPs network for BDS Market 4/20/2019 SUGECO and KINSHAGA development. A task force to develop and an MOU for governing the Network was formed. Iringa BDS Coordinator facilitated a volunteer expert visit to 3 Field visit with volunteer expert BDSPs. The main objective of this assignment was to assist 4/27/2019- Gladys - 3 BDSPs followed by one BDSPs in Iringa to improve their training skills and update their 2/28/2019 to one coaching to 6 BDSPs training materials in order to attract more MSMEs to purchase BDS on a regular basis. ENGINE Zanzibar staff met the Director of SMIDA to introduce the ENGINE program and explore possible areas of collaboration. The director informed the ENGINE team about the Khalifa Fund amounting to US$ 1 million grant from Abu Small and Medium Industries 5/8/2019 Dhabi to Zanzibar Government. A large portion of this money Development Agency (SMIDA) is allocated to SMIDA as a revolving fund to provide soft loan to SMEs. SMIDA expressed interests to use ENGINE supported BDSPs to train beneficiaries s of the loans about business plans. Zanzibar BDS Coordinator met with FTF IPs – MnM, Nafaka, and Advancing Youth. Participated in joint meeting of all four 5/9/2019 FTF IP's Feed the Future IPs. The objective of the meeting was to start planning for FTF IPs participation in the forthcoming Nane Agricultural Fair to be held from 1st to 10th August 2019. Zanzibar BDS Coordinator participated in a meeting involving ENGINE supported BDSPs, Zanzibar Bureau of Standards (ZBS) and Business and Property Registration Agency (BPRA) to discuss about involvement of Zanzibar BDSPs in training SMES 5/16/2019 BPRA, SMIDA, BDSPs on how to make soap. With BPRA it was the opportunity for the BDSPs to get awareness of the roles and functions of BPRA and how their Online Business Registration System works. The idea is to utilize BDSPs in providing business registration services to MSMEs

XV – Annex Three

Date Institution Meeting Outcome Mbeya BDS Coordinator attended a one-day grant award Advancing Youth Grants Award event at SIDO ground. The award ceremony was recognized 5/29/2019 ceremony with FtF Advanced Youth program. 9 stakeholders (NGOs, Companies and economic groups) received grants Zanzibar BDS Coordinator held a meeting with 6 BDSPs selected for the process of establishment of Zanzibar BDSPs 5/30/2019 Zanzibar BDSPs Network Team Network. The team discussed on different forms of organizations which can be adopt for Zanzibar BDSPs alliance. Mbeya BDS Coordinator in collaboration with Grant Manager and C2 TL organized a one-day meeting involved 34 participants from TRA, TBS, NIDA, BRELA, NAFAKA, Mboga na Business Formalization and Matunda, Advancing Youth and LGA staff our BDSPs shared 5/30/2019 Compliance Meeting /LGA and some challenges facing MSMEs as far as business registration Mbeya BDSPs and compliance issues is concern. the meeting aimed at establishing close relationship between ENGINE supported BDSPs and Government institutions responsible for business formalization and compliance. Zanzibar BDS Coordinator participate in a meeting with FTF IPs for preparation of Nane agricultural fair. The meeting 5/31/2019 FTF IP's deliberated on roles of each partner in the preparations for participation in the forthcoming Nane Agricultural Fair. Iringa BDS Coordinator visited 7 BDSPs offices. Visiting BDSPs 6/11/2019- Visited 7 BDSPs within Iringa gave an opportunity to share data collection plan for this 6/12/2019 town for quarterly reflection quarter as we aim at reaching more MSMEs who will report. Iringa BDS Coordinator held a meeting with one potential Held a meeting with a new BDSP named DOXA which is an agribusiness and marketing 6/13/2019 potential BDSP who wants to support company with a vision to engage youth and women in collaborate with ENGINE program profitable farming practices, whilst using the available resources in their areas. Zanzibar BDS Coordinator facilitated a meeting for a team of 5 BDS coordinating the establishment of Zanzibar BDSPs Network together with a lawyer, the Director of Zanzibar Female Lawyers Association (ZAFELA).Based on advice from 6/13/2019 Zanzibar BDSPs Network Team the lawyer, the team decided to adopt a Company with Guarantee type of organization for the Zanzibar BDSPs Network and one member volunteered to prepare a draft Memorandum and Articles of Association which will be presented in the next meeting.

XVI – Annex Three

Date Institution Meeting Outcome TIC & TAHA organized Mbeya BDS Coordinator conducted ENGINE program 6/17/201- Horticulture Investment awareness creation to 250+ participants in Mbeya including 4 6/18/2019 Convention Ministers 5 RCs, 6 DCs and 4 DEDs Zanzibar Regional Representative and BDS Coordinator participated in collaboration meeting with SMIDA which discussed on possible areas of collaboration. The meeting 6/20/2019 SMIDA agreed to set a joint technical team for identifying areas of collaboration and prepare a joint work plan for implementation. Zanzibar BDS Coordinator conducted BDSPs feedback and data 6/24/2019- collection meeting which was attended by 18 BDSPs MSMEs and BDSPs 6/25/2019 participants. A total of 18 BDSPs quarterly follow-up forms and 70 MSMEs semi-annual follow-up forms were filled. Zanzibar BDS Coordinator in collaboration with Component 3 colleagues we conducted a networking meeting between 19 6/26/2019 19 BDSPs and Amana Bank BDSPs and Amana Bank, Zanzibar Branch. The objective of the meeting was to give opportunity for Amana Bank to introduce its products and services to ENGINE supported BDSPs. Mbeya Rice organized rice Mbeya BDS Coordinator conducted ENGINE program 6/26/2019 producer groups and rice awareness creation to rice farmers and processors. 150 processors exhibition Participants attended. Component 3 Discussed ENGINE's support on upcoming East African Banking 4/3/2019 TIOB School conference organized by TIOB - 12th to 16th August 2019. Provided input and feedback to TIOB and ENGINE volunteer to 4/5/2019 TIOB feed into TIOB's strategic plan. Introduced Mike Seufert, ENGINE project management 4/15/2019 FINCA volunteer, to counterparts at FINCA. Introduced James Small, leadership volunteer, to counterparts 4/30/2019 VisionFund at VisionFund. Exit briefing and presentation from Mike Seufert, project 5/3/2019 FINCA management volunteer who worked with FINCA. Met to discuss progress on grant with ENGINE and encourage 5/8/2019 Yetu Yetu to accelerate the pace of implementation. Received exit briefing and presentation from volunteer James 5/9/2019 VisionFund Small on his leadership development assignment with VisionFund.

XVII – Annex Three

Date Institution Meeting Outcome Participated in USAID's kick-off meeting for DCA portfolio 5/13/2019 Amana Bank / USAID guarantee at Amana Bank HQ in Dar es Salaam. Participated in introductory meeting of DCA guarantee at 5/14/2019 Amana Bank / USAID Amana's branch in Zanzibar. Discussed MOU modification details of modification to MOU between ENGINE an Amana Bank to include TA--including 5/15/2019 Amana Bank environmental compliance support--cost sharing, data sharing. Reached verbal agreement. Followed up by sending revised MOU for review. ENGINE consultant Remer Lane briefed USAID on SAGCOT 5/16/2019 USAID Mbarali cluster engagement strategy. 5/23/2019 FINCA Had an introductory meeting with FINCA's new CEO. Discussed integration of Ninayo and Bizfundi online 5/30/2019 Ninayo marketplace data, reached agreement on way forward. Discussed TIOB's requested TA and explored opportunities in 6/4/2019 TIOB crop insurance support. Attended AIMS' Annual Bank Forum, for which ENGINE also 6/4/2019 AIMS program helped supply two expert panelists from TADB and NAFAKA to discuss issues and opportunities on warehouse financing. Met with Yetu's MD to get an update on grant activities and the pending Islamic finance SOW, also introduced to a new 6/14/2019 YETU point of contact at Yetu and a new project management team. ENGINE is on the final stages of recruiting for a volunteer to work with Yetu on Islamic Finance. Introduced FINCA to ENGINE's financial institution portal on 6/18/2019 FINCA Bizfundi, trained them on how to create an account. Check-in meeting on TIOB strategic plan development and 6/19/2019 TIOB discussion of follow-on volunteer support Introduced Yetu to ENGINE's financial institution portal on 6/19/2019 YETU Bizfundi, trained them on how to create an account. Yetu's account was created by the end of the quarter. Introduced VisionFund to ENGINE's financial institution portal 6/20/2019 VisionFund on Bizfundi, trained them on how to create an account. VisionFund's account was created by the end of the quarter. Introduced BOA to ENGINE's financial institution portal on 6/25/2019 Bank of Africa Bizfundi, trained them on how to create an account.

XVIII – Annex Three

Date Institution Meeting Outcome Introduced Amana Bank's Zanzibar staff to ENGINE BDSPs in Zanzibar. Also initiated discussions between Amana and 6/26/2019 Amana Swahili Coast Salt Company regarding the provision of financing to SCSC's salt farmers in Pemba. Grants and Environmental Compliance Vision Fund Tanzania and Both institutions were informed on the findings of Pre-Award April 4, Jumuiya ya Changamto from Assessments and ENGINE decision to continue with its support 2019 Zanzibar. (through Skype) on strengthening their capacity as financial institution. UMI Saccos was informed on the findings of Pre-Award April 5, Assessments and ENGINE decision to continue with its support UMI Saccos Limited 2019 on areas that foster strengthening UMI Saccos capacity as financial institution. The report was disseminated. It was agreed that ENGINE and Office of Chief Government Technical Steering Committee convene another meeting that Statistician (OCGS) other April 17 -18, will discuss the report findings together with Business Formalization Survey 2019 recommendations by stakeholders who participated in the Technical Steering Committee dissemination meeting and agree on the support that ENGINE Members in Zanzibar. program will continue to support its implementation 12 BDSP managers from Mbeya that include: Khebandza Marketing Company Limited, Start and Improve Your Business (SIYB) Association of East Africa, Disseminated Environmental Management (Environmental May 30, HD Agribusiness, Makheya Impact Assessment and Audit) (Amendment) Regulations, 2019 Enterprises, AAM Group, Herge 2018 to ENGINE - affiliated BDSP managers in Mbeya (see the Enterprises, NOVA TERRA list). Solutions LTD, SIDO Mbeya, African Honey Solution, Near Consult, NITA Nellius Enterprises, and ELIMISHA. Together with Component 2 Lead, we met with 3 BDSPs in Mbeya (Khebandza, SYIB and HD Agribusiness) that are Khebandza Marketing Company implementing activities under the grant’s mechanism. These May 31, Limited, Start and Improve Your BDSPs presented the status of activities implemented and the 2019 Business (SIYB) Association of challenges encountered so far. BDSPs were reminded of East Africa and HD Agribusiness. reporting requirements (including technical and financial reporting) and were encouraged to collaborate closely with ENGINE staff as they implement the grants activities.

XIX – Annex Three

Date Institution Meeting Outcome YETU Microfinance Bank Limited staff in Zanzibar that included: Senior Finance Officer, Zanzibar Agency in charge (Anticipated Branch Manager), Credit Officer and Cashier (Assistant Finance Officer) were oriented on: • Workplan in particular to YETU Sub grant activities cycle to strengthen their understanding on activities sequencing after finalization of Islamic agro-loan product. And, staff were May 25, YETU Microfinance Bank Limited oriented on budget line items that will directly be managed at 2019 the branch level in Zanzibar. • Roles and responsibilities for an effective implementation of sub grant activity. • Procurements of items that will be managed at the branch level, orientation were based on ENGINE procurement requirement, procedures required procurement standard and other tailored tools for managing the sub grant. Sub grant verifications, reconciliations and close out visit. During the visit, the following were achieved: • Verified the following expenditures as reported from the last financial report that liquidated an expenditure totaling TZS 30,138,500. These included the expenditure under the June 17, Office of Chief Government following budget line items; Consultant, Other Direct Cost and 2019 Statistician (OCGS) Supplies. • Reconciled all expenditures under OCGS sub grant totaling TZS 141,238,500 as per the final financial/liquidation report. • Established a guidance for documenting OCGS contribution (Cost Share). OCGS respective staff was also oriented on this guidance. USAID Iringa BDS Coordinator hosted a meeting with Advanced Youth 4/12/2019 USAID Advancing Youth Team program. The meeting focused more on understanding what ENGINE does and identify areas of collaboration. Participated in USAID's kick-off meeting for DCA portfolio 5/13/2019 Amana Bank / USAID guarantee at Amana Bank HQ in Dar es Salaam. Participated in introductory meeting of DCA guarantee at 5/14/2019 Amana Bank / USAID Amana's branch in Zanzibar. ENGINE consultant Remer Lane briefed USAID on SAGCOT 5/16/2019 USAID Mbarali cluster engagement strategy.

XX – Annex Three

Date Institution Meeting Outcome ENGINE presented the status of ENGINE activities in Zanzibar 6/18/2019 USAID/ENGINE to Integrated Governance Baraza USAID Partner Meetings No USAID Partner Meetings were held this Quarter. Monitoring, Evaluation, and Learning Data Quality Assessment Orientation Meeting by D4D to 4/15/2019 Data for Development (D4D) Orient ENGINE on rules and Principles of Data Quality Assessment. System Assessment of Indicator EG 3.2-12 and data 4/24/2019 Data for Development (D4D) verification of the values reported in FY18Q4 FTFMS report. Held discussion with external DQA team from D4D who reviewed systems used for reporting on standard indicators 5/9/2019 Data for Development (D4D) (EG 3.2-27 and YOUTH-3) and data verification of the values reported in FY18Q4 FTFMS report. Facilitated Discussion between D4D and Mbeya City Council technical staffs on how ENGINE collaborate with the council on Data for Development (D4D), 5/23/2019 policy reform process (selection of policy to be reformed, Mbeya City Council policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks). Facilitated Discussion between D4D with TTCIA Mbeya management representatives on how ENGINE collaborate with Data for Development, TCCIA 5/24/2019 the chamber on policy reform process (selection of policy to Mbeya be reformed, policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks). Facilitated Discussion between D4D with Kyela District Council technical staffs on how ENGINE collaborate with the council on Data for Development, Kyela 5/27/2019 policy reform process (selection of policy to be reformed, District Council policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks). Facilitated Discussion between D4D with Iringa Municipal Council technical staffs on how ENGINE collaborate with the Data for Development, Iringa 5/30/2019 council on policy reform process (selection of policy to be Municipal Council reformed, policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks). Facilitated Discussion between D4D with TTCIA Iringa Chief Executive Officer on how ENGINE collaborate with the Data for Development, TTCIA 5/30/2019 chamber on policy reform process (selection of policy to be Iringa reformed, policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks).

XXI – Annex Three

Date Institution Meeting Outcome Facilitated Discussion between D4D with Mufindi District Council technical staffs on how ENGINE collaborate with the Data for Development, Mufindi 5/30/2019 council on policy reform process (selection of policy to be District Council reformed, policy definition, stakeholder involvement, storage/record keeping, and system of sharing feedbacks). 1st field DQA debrief meeting at Iringa ENGINE office with the D4D team. It was a general meeting to give an overview of how the whole DQA activity was conducted. D4D requested 5/30/2019 Data for Development (D4D) for sample Evidences of policy reform and highlighted that more details, strength and recommendation will be shared in the final debrief at ENGINE head office, and the DQA report draft will be shared beforehand.

XXII – Annex Three

ANNEX 4: KEY STAKEHOLDERS AND ZANZIBAR ENGAGEMENT

Zanzibar Association of Local Government Authorities (ZALGA): During the quarter, ENGINE supported ZALGA’s extraordinary Annual General Meeting (13th and 14th April). Main agenda was to approve foundation documents (Constitution, Strategic Plan and Communication Strategy) and update membership fee structures, all of which were supported by ENGINE. During the AGM, ZALGA members (LGAs) committed themselves to pay their monthly fees in order to maintain the validity of their memberships, and support ZALGA cost operations.

Ministry of Trade and Industries (MTI) / Office of Chief Government Statistician (OCGS): ENGINE supported two days (April 17th and 18th 2019) workshop dissemination of Business Formalization Survey (BFS) results in Zanzibar, where Ministry of Trade & Industries and Office of Chief Government Statistician shared findings / recommendations to key stakeholders. On 15th May 2019, the Technical Steering Committee (TSC) met to discuss an Action Plan of key areas that could benefits from ENGINE’s support, mostly covered under Component 2, and related to BDSP support in the formalization process.

Zanzibar National Chamber of Commerce Industries and Agriculture (ZNCCIA): Through its SOW to support ZNCCIA advocacy and sustainability, ENGINE liaised with ZNCCIA and a potential volunteer expert to support preparation of a concept note/paper that will be shared with relevant stakeholders for supporting ZNCCIA to establish sustainable sources of revenue for its operations. The volunteer expert agreed to support ZNCCIA remotely.

Local Government Authorities (LGAs): Through its ongoing assignments, ENGINE supported three LGAs in Unguja to prepare investment promotion strategies and participate in a LGACI pretesting assignment. ENGINE also hosted the USAID Integrated Governance Baraza, supported by its Office of Democracy and Governance, and provided members a presentation on its governance related activities on the islands. In Pemba, two LGAs were supported to undertake by-law reviews.

XXIII – Annex Four

ANNEX 5: VOLUNTEER ASSIGNMENTS

VOLUNTEER REPORTING TABLES:

Volunteer Award Total FY2019 Q3 Program to Date Balance Contributions (USD) (USD) (USD) (USD)

Total volunteer cost- $1,548,062 $133,046 $1,121,450 $426,612 share*

Total non-volunteer $0 $0 $7,307 -$7,307 cost share**

Other volunteer $0 $0 0 $0 contributions**

* Balance may be negative to show value exceeding the amount originally planned. ** Includes any volunteer contributions which are not reported under cost share or leverage, i.e. in-kind contributions and cash. *** Volunteer cost share reporting will be reflected on the next month’s financial invoice.

Number of Number of Volunteer Assignments Total Number of Volunteers Volunteer Completed Proposed from Award Assignments Total Male Female Remaining 117 75 44 31 42

Summary of Volunteer Assignments Assignment Assignment Name Length (in Assignment Description Value days) (USD) The objective of the assignment was to navigate and interact with the USAID ENGINE program’s newly-developed digital platform—both online Tarbia 2.38 interface and mobile application—and test its usability and accessibility, $2,213 Minto leading to a series of functionality and design improvement recommendations for a smoother and more consistent user interface. The volunteer worked closely with PCT’s executive team to design and deliver an organizational and operational training course for primarily semi-commercial farmers, emerging commercial farmers, and organized Diana 47 groups of smallholder farmers for the Enabling Growth Through $32,804 Lilla Investment and Enterprise Program (ENGINE) program in Tanzania. It also entailed the development of training materials, Pilot Testing the materials, and Conducting a ToT to a group of 10 local BDSPs.

XXIV – Annex Five

Summary of Volunteer Assignments Assignment Assignment Name Length (in Assignment Description Value days) (USD) This assignment built the capacity of financial institution staff on the practical skills, tools and techniques of project management to achieve Michael 20 organizational objectives and improve performance, first through an $14,876 Seufert assessment of the existing state of the financial institution and then through a formal training session. This assignment built the capacity of Tanzania financial institution James leadership to motivate and develop employees, incentivize and guide 20 $14,876 Small teams, manage change, and effectively influence stakeholders across an organization. The objective of this assignment was to support TIOB draft a Tara 41.63 comprehensive 3-year strategic plan in order to deliver its mandate and $29,938 Kenyon the focused areas mentioned above. The objective of the assignment was to navigate and interact with the USAID ENGINE program’s newly-developed digital platform—both online Joyce Jin 2 interface and mobile application—and test its usability and accessibility, $1,860 leading to a series of functionality and design improvement recommendations for a smoother and more consistent user interface. The objective of the assignment was to navigate and interact with the USAID ENGINE program’s newly-developed digital platform—both online Richa 2.75 interface and mobile application—and test its usability and accessibility, $2,558 Kulkarni leading to a series of functionality and design improvement recommendations for a smoother and more consistent user interface.

The main objective of this assignment was to assist BDSPs in Morogoro, Iringa, Mbeya and Zanzibar to improve their training skills and update their training materials in order to attract more MSMEs to purchase BDS Gladys 33 on a regular basis. By enhancing BDSPs training methods and training $23,497 Situma material quality, MSMEs will realize more benefits from the offered training and will therefore become more willing to pay for BDS. This will in turn increase BDSPs’ client bases and revenue.

Michael Volunteer expert for 5-Year Revenue Enhancement Development Plan 17.4 $10,425 Mallinoff with the City of Mbeya.

XXV – Annex Five ANNEX 6: SUCCESS STORIES

CREATING SYNERGY AND EFFICIENCY BY FOCUSING ON THE BIG PICTURE

“Working without a good strategic plan is like walking in darkness and losing the direction to the right destination. A lack of allocated funds for the strategic planning process led to our city council using an outdated strategic plan from 2013 to 2019. This hindered most of our developmental plans. Thanks to the ENGINE program for helping us with strategic plan development.” says Edom Mrumah, Acting Mbeya City Council Economist, smiling.

The Feed the Future Tanzania Enabling Growth through Investment and Enterprise (ENGINE) Program has supported the design of an updated strategic plan for the Mbeya City Council. The new, agreed upon, strategy encompasses a five-year plan ENGINE staff, Selemani Mdaba, shaking that the city will use from now through 2024. The plan was developed utilizing the hands with Mr. Edom Mrumah, City ENGINE PPD methodology with input from community members and approved by Council Economist and other officials from Mbeya City Council. the Mbeya City Council Management in March 2019. Several planned activities are now operational through the current Government Budget 2019/2020.

According to Economist Mrumah, the Mbeya City Council has seen several results, which include increased revenue collection of 70 percent in 2018 and 89 percent in June 2019. He says, “With this Strategic Plan we are now well- organized and focused in everything we do. The development process involved many stakeholders including business owners, private citizens and civil societies. This participatory approach has created awareness and helps ward level business owners understand the importance of timely tax payments and service levies. This has already improved revenue collection by our City Council. We look forward to a greater performance in the current financial year 2019/2020.”

Most of the participants in the stakeholders meeting explained that they look forward to greater performance in planned activities and they appreciate the high-quality strategic plan document.

“We have shared our strategic plan with other development partners including the World Bank in Tanzania, where it was presented during a meeting with the President's Office -Regional Administration and Local Government. Discussions included how councils are most supportive in creating good business environments.”

Mrumah further explains how the Mbeya City Council was not well-organized over the past few years. According to his experience, each department worked on its own without knowing what other departments were doing. The new strategic plan is anticipated to create a new team spirit among the diverse City Council departments, as well as the private sector, and to promote effective resource utilization and performance by the Council.

“We now inform one another of planned activities and work together as a team. Before, every department worked on its own with inadequate funds that were

Participants at the strategic planning allocated to each department; this led to the incompletion of many projects.” meeting. Mrumah adds.

The ENGINE Program identified the importance of supporting local government authorities to plan and conduct strategic planning processes to enhance an effective business-enabling environment. To date, two strategic plans are in use: one prepared for Mbeya City Council; and, another for the Iringa Municipal Council. Strategic plans for the Kilosa and Kyela District Councils are being finalized.

Feed the Future is the U.S. Government’s global hunger and food security initiative. With a focus on smallholder farmers, particularly women, Feed the Future supports partner countries in developing their agriculture sectors to spur economic growth and trade that increase incomes and reduce hunger, poverty and undernutrition.

USAID is the lead U.S. Government agency working to end extreme global poverty and enable resilient, democratic societies to realize their potential.

XXVII – Annex Six ENTREPRENEURSHIP BRINGS NEW HOPE TO MOROGORO

Stephano Kingaza, founder of Microphas, became an entrepreneur at seven years of age in primary school by picking up ground nuts and selling them to his classmates. By Grade 7, he was selling the nuts plus sweets, exercise books, and pens from his home. While in secondary school he rented a room and added clothes and dried maize to his stock.

During his university years, Stephano began buying chocolate from missionaries in Tanga to sell on the streets and in supermarkets in Arusha. He moved up to importing plums and beer from Kenya to sell in hotels in Arusha, acting as a distributor. When other university students used their allowances to buy phones and clothes, Stephano bought haircut supplies and a mirror to open a barber shop. Founder of Microphas, Stephano Kingazi

Today, Stephano is the proud founder of Microphas, a business development service provider (BDSP) that helps local enterprises stabilize and grow. Microphas has been working with the Feed the Future Tanzania Enabling Growth through Investment and Enterprise (ENGINE) Program since 2017. Stephano and his employees have learned numerous training techniques and content from the program which they continue to utilize.

Stephano sees the relationship between Microphas and ENGINE as a strong asset in the Morogoro business community. He says, “The ENGINE/Microphas alliance provides services that MSMEs respect and trust. The best piece of advice I give is that you must start small and grow your business smart.”

Stephano has brought together a team of BDSPs including Maria Kinyau (details below). He also matches individual entrepreneurs with appropriate members of that BDSP team (see Sponsa Simoni Moyo, entrepreneur, below).

Maria Kinyau is a Microphas BDSP member and her work focuses on women- and youth-run micro, small, and medium-sized enterprises (MSMEs). She is working on a project sponsored by ENGINE that unites BDSPs to work together to better help MSMEs.

The project started in February 2019 and aims to accomplish the following three phases by January 2020:

1. Conduct a survey of MSME needs and assess the results. Determine the capacity of BDSPs and prepare a supply/demand report. (The survey has been completed and results are being compiled.) 2. Create a new database of MSMEs and update the current database of BDSPs. Provide social media platforms (WhatsApp, Facebook, and websites) for both BDSPs and MSMEs to use for networking. (ENGINE Scope of Work for volunteer experts are underway and the bizFundi platform is being examined for other networking opportunities.)

3. Sponsor a business expo for food and beverage value chain members. At this expo, business issues will be discussed, MSMEs will sell products, and formal dialogue and presentations will take place. The event will be open to the public and consumers. (Planning will proceed after analysis of the survey results.)

The implementation of this project has already received positive feedback. Local government entities such as District Councils have asked that the expo “go on the road” to their locations and have even offered to organize these additional events. Maria says “My work is meaningful and will help so many people. I am so happy to Maria Kinyau, Microphas BDSP have this opportunity!”

Sponsa Simoni Moyo currently runs a small enterprise that packages and sells sesame balls and dried fruits. She has been a Microphas client, working with Stephano and BDSPs, for over two years. Beforehand, Sponsa was a small-scale clothing merchant. As a caretaker of four children and a grandchild, she was barely making ends meet. One day a customer told her about an available training on starting a business that Microphas would provide with ENGINE support. Sponsa went to the training and has continued working with Microphas BDSPs on her new venture. Sponsa Simoni Moyo, local business Sponsa says, “I registered my business, learned to start small and grow by owner and Microphas client. expanding my products as I made profits. I opened a bank account, started saving, and will soon borrow to improve my packaging. I am also planning to use my mobile phone for social media to advertise.” With the guidance and services provided by Microphas, Sponsa is better positioned to take care of her family and contribute to the Morogoro business community.

USAID is the lead U.S. Government agency working to end extreme global poverty and enable resilient, democratic societies to realize their potential.

XXIX – Annex Six CREATING A HUB OF EXCELLENCE FOR THE TANZANIAN FOOD PROCESSING INDUSTRY

Meet wife and husband business development service providers (BDSPs) Joan Stephen Nangawe, Managing Director, and Ladislaus Ikombe, Operations Director, of Food Information Tanzania. This team focuses on the business of food processing, packaging, and safety and quality assurance for their local food industry. They also provide business plan development, certification, marketing, and IT services to their clients. With support from the Feed the Future Tanzania Enabling Growth through Investment and Enterprise (ENGINE) Program, they have assisted 150 clients over the last two years and cite several of them as successes—Rafikielli Food Products, Nado Foods and Doreen Aromas of Uluguru Mountains.

Joan (above) and Ladislaus (below), Joan tells the story of a client who lost his job and, while searching for another owners and managers of the business one, had a “eureka!” moment. He visited them and explained his discovery of an development service provider named Food Information Tanzania. under-utilized resource: chilis. Having seen that the majority of chilis at vendor stands seemed to always be close to rotting, he wanted to find a solution and earn some income. With Joan’s assistance, he now has a registered business preserving chilis using a unique recipe. Today, his business meets all government standards for quality assurance, has unique labeling and packaging, and is sold in various shops across the area.

Although they are able to help turn aspirations into functioning businesses, BDSPs like Food Information Tanzania struggle to find paying clients. Challenges for BDSPs in the food processing industry:

1. Owners do not understand the need to pay for services, especially when services are provided for free from other groups. 2. Capital for business development is very scarce. 3. Small business owners do not understand the need to invest in quality. 4. It is difficult for BDSPs to establish a network of buyers and sellers of processed foods. 5. Many businesses are not legally-registered.

“By far, the biggest challenge is to create an understanding of paying for services. Once that hurdle is overcome, much of our work focuses on getting businesses registered, training quality controls, and bringing the supply chain together to provide good packaging”, states Ladislaus.

This BDSP company is working on establishing an IT platform where small and medium-sized enterprises (SMEs) can access information regarding food processing, packaging tips, food compliance mandates, and other related topics. They hope to improve their income by charging advertising fees on the site, which will be populated with businesses who work within the industry. The goal is to have the site online within a couple of months.

When asked how they gained experience to be BDSPs, Ladislaus, replied that he has a degree in Food Science and Technology and is currently studying for his master’s degree in Food Safety. He was in quality control for five years at a major food processing plant and worked at TUBORESHE CHAKULA, “Let Us Improve Food,” a Feed the Future- funded program. Joan has an undergraduate degree in Food Science and Technology and a master’s degree in Business Administration. She has been working in the food processing field for ten years providing training, advisory services, and coaching.

Joan and Ladislaus say that small business owners are price sensitive rather than quality sensitive. This type of thinking can lead SMEs in the food processing industry to make poor investment decisions. Joan and Ladislaus have found that owners need to be pressured before quality will become an important priority and believe this will come from entities such as the Tanzania Bureau of Standards and Tanzania Food Drug Administration.

“We like working with ENGINE, they help us as we help MSMEs. ENGINE made us aware of the need for electronic- fiscal device (EFD) machines and we are now in the process of getting up to date with technology. The quality of our service has been much improved due to the training—we are now more confident. ENGINE has put us in touch with other BDSPs and we learn from each other. Even though we don’t operate at a profit we are not giving up. We are building capacity with two young graduates from Sokoine University; we have a contract with them to provide hands-on experience. Plus, they are learning how to live as business persons.”

Joan and Ladislaus have a detailed marketing plan for additional clientele, for adding additional products and improving current quality. They believe they have just started making a difference in the food processing businesses in Tanzania!

USAID is the lead U.S. Government agency working to end extreme global poverty and enable resilient, democratic societies to realize their potential.

XXXI – Annex Six