Leader with Associate Cooperative Agreement EEM-A-00-04-00002-00 Associate Cooperative Agreement No

Leader with Associate Cooperative Agreement EEM-A-00-04-00002-00 Associate Cooperative Agreement No. AID-621-LA-16-00002

1ST 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 VEGA/IESC and do not necessarily reflect the views of USAID or the United States Government.

Submitted on January 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]

ii iv I. 1 PROGRAM OVERVIEW 1 QUARTERLY PROGRESS REPORT 1 SUMMARY OF RESULTS 1 Deliverables 1 Milestones 1 COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH 1 COMPONENT 2: BUSINESS DEVELOPMENT SERVICES 1 COMPONENT 3: FINANCING FOR GROWTH 2 CHALLENGES AND CRITICAL ISSUES 2 COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH 2 COMPONENT 2: BUSINESS DEVELOPMENT SERVICES 2 COMPONENT 3: FINANCING FOR GROWTH 2 2 COMPONENT 1: IMPLEMENT POLICIES FOR GROWTH 2 COMPONENT 2: BUSINESS DEVELOPMENT SERVICES 3 COMPONENT 3: ACCESS TO FINANCE FOR GROWTH 5 PLANNED ACTIVITIES FOR NEXT REPORTING PERIOD 7 COMPONENT 1: IMPLEMENT POLICIES FOR GROWTH 7 COMPONENT 2: EQUIP BUSINESSES FOR GROWTH 7 COMPONENT 3: ACCESS TO FINANCE FOR GROWTH 8 III. 8 9 SUSTAINABILITY 9 COMMUNICATIONS AND OUTREACH 9 GRANTS 10 GENDER & YOUTH 10 10 ANNEX 1 – ENGINE PROGRESS TOWARD INDICATORS 11 ANNEX 2 – PROGRAM FINANCIAL REPORT 12 ii

ANNEX 3- STAKEHOLDER OUTREACH AND MEETING SUMMARY 27 ANNEX 4- KEY STAKEHOLDERS AND ZANZIBAR ENGAGEMENT 39 COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH 39 COMPONENT 2: BUSINESS DEVELOPMENT SERVICES 39 COMPONENT 3: FINANCING FOR GROWTH 39 ANNEX 5- VOLUNTEER ASSIGNMENTS 40 ANNEX 6- SUCCESS STORIES 42

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AAOR Alternate Agreement Officer Representative AFRICA LEAD Building Capacity for African Agricultural Transformation Project II II AIMS USDA Agribusiness Investment for Market Stimulation Program ALAT Association of Local Government Authorities of Tanzania AO Agreement Officer AOR Agreement Officer's Representative ANSAF Agriculture Non-State Actors Forum ASDP-2 Agriculture Sector Development Program-2 Feed the Future Tanzania Agricultural Sector Policy and Institutional Reform ASPIRES Strengthening Project BDS Business Development Services BDSP Business Development Service Provider BOT Bank of Tanzania CA Cooperative Agreement CAADP Comprehensive Africa Agriculture Development Program COP Chief of Party CPRA Centre for Policy Research and Advocacy (University of Dar es salaam) CRS Catholic Relief Services CSO Civil Society Organization DAC District Advisory Committee DADP District Agricultural Development Plan DBC District Business Council DCA Development Credit Authority DCOP Deputy Chief of Party DDP District Development Plan DED District Executive Director EMMP Environmental Mitigation and Monitoring Plan ENGINE Enabling Growth through Investment and Enterprise Program ESMT Environmental Screening and Management Tool ESRF Economic and Social Research Foundation FAST Finance Alliance for Sustainable Trade FIs Financial Institutions FSDT Financial Sector Deepening Trust FSVC Financial Services Volunteer Corps FtF Feed the Future FY Fiscal Year HO Home Office IAA Institutional Architecture Assessment ICMA International City/County Management Association ICT Information and Communications Technologies iv

IEE Initial Environmental Examination IESC International Executive Service Corps IIAH Iringa Integrated Activities Hub iN4iN Intelligence for Innovation Africa Network ISP Investment Support Project JSR&PER Joint Agriculture Sector and Public Expenditure Review Forum LGA Local Government Authority LGACI Local Government Authority Competitiveness Index MALF Ministry of Agriculture, Livestock and Fisheries Development MANRLF Ministry of Agriculture, Natural Resources, Livestock and Fisheries MEDA Mennonite Economic Development Associates MEL Monitoring, Evaluating, and Learning MFI Microfinance Institution MIVARF Marketing Infrastructure, Value Addition and Rural Finance MnM Mboga na Matunda MoFP Ministry of Finance and Planning MoU Memorandum of Understanding MSME Micro, Small and Medium Enterprise MTIM Ministry of Trade, Industries and Marketing MUCOBA Mufindi Community Bank NEMC National Environment Management Council NMB National Microfinance Bank OPIC Overseas Private Investment Corporation PAG Policy Analysis Group PBZ People’s Bank of Zanzibar PO-RALG President’s Office for Regional Administration and Local Government President’s Office for Regional Administration, Local Government and Special PO-RALGSD Departments PPD Public-Private Dialogue PRIDE Promotion of Rural Initiative and Development Enterprises PRPT Policy Reform Priority Setting Tool PS3 Public Sector Systems Strengthening Project-phase 3 RAS Regional Administrative Secretary RBC Regional Business Council REPOA Policy Research for Development RFA Request for Application RFCN Request for Concept Note RRC Regional Consultative Committee SACCO Savings and Credit Cooperative Organization SAGCOT Southern Agricultural Growth Corridor of Tanzania SC Sector Coordination (PORALG Department) SCCULT Savings and Credit Cooperatives Union League of Tanzania SME Small and Medium Enterprise v

SoW Scope of Work SWM Solid Waste Management TA Technical Assistance TABDS Tanzania Association of Business Development Service Providers TAHA Tanzania Horticultural Association TAHEA Tanzania Home Economics Association TAMWA Tanzania Media Women Association TAMWAZ Tanzania Media Women Association-Zanzibar TANTRADE Tanzania Trade Development Authority TAWLA Tanzania Women Lawyers Association TAWLAE Tanzania Women in Livestock, Agriculture and Environment TAYOA Tanzania Youth Association TCCIA Tanzania Chamber of Commerce, Industry and Agriculture TGNP Tanzania Trade Development Authority TNBC Tanzania National Business Council TOAM Tanzania Organic Agriculture Movement TPSF Tanzania Private Sector Foundation TWB Tanzania Women’s Bank TWCC Tanzania Women Chamber of Commerce TZS Tanzanian Shillings UI User Interface USAID United States Agency for International Development USD United States Dollars UX User Experience UWAZI Association of Small-scale Producers WARIDI Water Resources Integration Development Initiative ZAFELA Zanzibar Female Lawyers Association ZALGA Zanzibar Association of Local Government Authorities ZATI Zanzibar Association of Tourism Investors ZNBC Zanzibar National Business Council ZNCCIA Zanzibar National Chamber of Commerce, Industry and Agriculture ZPC Zanzibar Planning Commission

PROGRAM OVERVIEW

Pursuant to Leader-with-Associate Cooperative Agreement No. EEM-A-00-04-00002-00, Associate Cooperative Agreement No. AID-621-LA-16-00002, IESC is the prime implementer of 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-awardees, International City/County Management Association (ICMA), Mennonite Economic Development Associates (MEDA) and Diligent Consulting Limited. Under this Agreement, VEGA/IESC primarily contributes towards USAID’s Development Objective 2: Inclusive broad-based economic growth sustained, with supporting contributions to Development Objective 1: Women and Youth Empowerment and Development Objective 3: Effective Democratic Governance.

QUARTERLY PROGRESS REPORT

The purpose of this document is to report the program’s progress during the 1st Quarter of FY’19 for the period from October 1, 2018 to December 31, 2018.

SUMMARY OF RESULTS

Deliverables

The 4th Quarter Progress and Second Annual Report was submitted to USAID during this reporting period.

Milestones

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

• Two Institutional Architectural Assessments (IAAs) were conducted and two public/private dialogues were facilitated. As a result of the IAAs and PPDs, action plans were developed for the Chake-Chake and Wete LGAs in Pemba with the support of volunteer experts. • ENGINE developed solid waste management (SWM) action plans for three Unguja LGAs (Urban, West A and West B) in Zanzibar. The action plans inform which policy reforms ENGINE will support in the future. • ENGINE developed an online Policy Reform Priority Setting Tool (PRPT) and improved its Local Government Authority Competitiveness Index (LGACI) through the incorporation of public and private sector comments, which were received during questionnaire’s pretesting and baseline data collection.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

• E-Coupons were distributed to 488 MSMEs to purchase BDS at discounted rates. • Six BDS-focused grants were developed by ENGINE and approved by ENGINE’s Agreement Officer. • ENGINE’s promotional events on the benefits of BDS and the availability of financial services were attended by 336 MSMEs.

COMPONENT 3: FINANCING FOR GROWTH

• Four volunteers completed seven assignments with the Tanzania Institute of Bankers (TIOB) and three financial institution partners, leading to four policy/procedure changes, the establishment of a new Credit Risk Management training course for TIOB, and the successful assessment of 18 NAFAKA- supported producer organizations (POs). • ENGINE developed a training on Non-Performing Loan (NPL) Management, which the TIOB delivered to 19 participants from six financial institutions. • With support from an ENGINE grant, Yetu Microfinance trained eight staff members on Islamic finance, trained 20 youth on leadership, and lent over US $17,700 in agriculture loans to 31 borrowers. • An ENGINE-brokered partnership agreement was finalized between TIOB and Kentara Analytics.

CHALLENGES AND CRITICAL ISSUES

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

• Frequent changes in LGA leadership slowed the implementation of agreed upon policy reforms, while new LGA staff members were oriented to ENGINE’s mission. • ENGINE’s activities are not integrated into LGAs’ Annual Plans and Budget, which makes it difficult to implement program activities, because ENGINE and LGAs are supposed to share implementation costs.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

• The free provision of BDS to MSMEs by donor and government-support programs continues to be ENGINE’s main challenge in the development of the BDS market.

COMPONENT 3: FINANCING FOR GROWTH

• The financial services sector in Tanzania continues to experience a high degree of turbulence and uncertainty. Two of ENGINE’s four financial institution partners experienced changes in senior leadership during the quarter. While disruptive to the program, the changes are reflective of a larger phenomenon, as at least six other banks, including the country’s three largest, also underwent changes in senior leadership during the same period.

COMPONENT 1: IMPLEMENT POLICIES FOR GROWTH

Business Council Meetings and Public/Private Dialogues (PPDs). District business councils for Kilosa and Morogoro met to review their investment strategies and discussed what actions were needed to establish agri-processing industrial zones in Morogoro.

During the reporting period, several PPDs were conducted including: Mbeya and Iringa strategic plan reviews and SWM assessments or workshops were conducted in three Unguja LGAs and one Iringa LGA. SWM activities align with ENGINE’s core objectives because they create employment opportunities for new entrepreneurial ventures, demonstrate a key element of public and private cooperation and provide the potential for agricultural inputs, including organic manure from food waste.

ENGINE staff and consultant, Jay Gonzalez, LGA By-Law Reforms. SWM by-laws were analyzed, conduct a SWM assessment drafted and consulted on in three Zanzibar LGAs and in the Morogoro Municipal Council. SWM by-law reviews reinforced to business communities the importance of proper waste management policies, provide employment to women and youth, and promote water sanitation and sound agricultural practices. In addition, in Iringa Municipal Council, Mbeya City Council, and Kyela/Mufindi District Councils, ENGINE consulted on activity budgets and discussed, developed, and submitted business license and building permit roadmaps for LGA approval.

Policy Reform Tools. ENGINE met with representatives from the President’s Office for Regional Administration and Local Government’s (PO-RALG) Information and Communication Technology (ICT) and Sector Coordination staff to review the LGACI and PRPT tools. PO-RALGICT recommended that ENGINE consolidate the two tools into one online system where each tool would work independently. In support of this endeavor, ENGINE engaged a consultant to develop an online system with an expected finalized date of January 2019. A working group composed of representatives from PO-RALG, Local Government Training Institute (LGTI) and ENGINE was formed to support the activity.

D-by-D. ENGINE attended a technical review of the Draft National Decentralization Policy and participated in a technical review of D-by-D assessing overlap functions, roles and mandates for MDAs (Ministries, Departments and Agencies), regional administrations and LGAs.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

Formalization of Relations with BDSPs. Two new BDSPs, Lambokile Company Ltd from Iringa and Star Consultants from Zanzibar, developed technical assistance plans and signed collaboration agreements with ENGINE, which brings the total number of BDSPs that have agreed to partner with ENGINE to 114 BDSPs.

Provision of TA to BDSPs. ENGINE screened and categorized 112 BDSPs based on their previous sales record and previous activities with ENGINE. The screening exercise included a review of the technical assistance plans that the BDSPs signed with ENGINE, in order to ensure that the program is providing targeted support to BDSPs who fully participated and contribute towards the program’s growth-related indicators. Based on this analysis, three scopes of work (SOWs) were drafted and recruitment of expert volunteers will be done in the coming quarter.

ENGINE also collaborated with the USAID East Africa Trade and Investment Hub Program to provide a Training of Trainers (ToT) course to 24 BDSPs from ENGINE’s geographic regions on the African Growth and Opportunity Act (AGOA) platform. The topics covered during the training included an overview of the AGOA platform, customs requirements for export to the U.S. market through AGOA, and logistical support for exporters to the U.S. market. The training was delivered in Dar es Salaam and facilitated by representatives from the Board of External Trade, Ministry of Agriculture, Tanzania Chamber of Commerce and the Freight Forwarders Associations. As a result of the training, 34 BDSPs have added 18 new services to their service offerings.

Provision of e-Coupon to MSMEs. During the reporting period, 488 MSMEs received e-Coupons from ENGINE to purchase BDS at discounted prices and 480 enterprises redeemed their e-Coupons. Cumulatively, 978 e-Coupons have been issued to MSMEs and 950 enterprises have redeemed them. Of the 978 issued e-Coupons, approximately 60% of the beneficiary MSMEs are engaged in agriculture or agribusiness-related activities.

Progress of Lead Firm/Value Chain Initiative. Five scopes of work were developed for volunteer experts to undertake BDS-specific interventions for SMEs linked with the three lead value chains. The selected value chains and firms include: Pyrethrum Company of Tanzania (PCT), a pyrethrum manufacturer; Silver Lands, a poultry producer; and Shambani in dairy production. As a starting point, one volunteer expert was mobilized to work with PCT to initiate the process of organizing 16,000 farmers into solidarity groups in order to improve the quantity and quality of pyrethrum.

Outreach to MSMEs. Eight BDSPs in Mbeya were linked with 61 MSMEs (including agro-processors, agro-input dealers and producer groups) through a Business to Business (B2B) event organized jointly by five USAID IPs. Through the event, the BDSPs acquired 20 business deals (worth around 25.5 million TZS) from MSMEs, who are also beneficiaries of the other USAID IPs. Overall, as a result of the outreach ENGINE staff attend a USAID implementing partners B2B activities, during the reporting period, 34 event

BDSPs reported to have sold services to approximately 605 new MSMEs resulting to additional revenue of 311.3 million Tanzanian Shillings.

COMPONENT 3: ACCESS TO FINANCE FOR GROWTH

Volunteer Technical Assistance to Financial Institutions. During the reporting period, four volunteer experts were mobilized to the field. These assignments include:

• A volunteer expert worked with Yetu Microfinance to support Yetu’s individual business lending operations through an assessment of existing systems. The volunteer’s work with Yetu led to four new policy/practices enacted by the bank during this quarter. The new policy/practices are: 1) changes in Yetu’s credit assessment, evaluation and monitoring processes 2) the development of an Islamic loan product for Zanzibar 3) new approaches to expand outreach for individual loan products 4) development ENGINE volunteer, Janet Buresh, meets with representatives from SUGECO as they visit a of a special youth loan product for agribusiness NAFAKA-supported PO in Morogoro. activities. • An SME Risk Management Expert conducted risk management assessments of three MFIs: FINCA, Yetu, and VisionFund. The volunteer expert spent one week with each MFI, presented his findings to management and then led a one-day training to staff. In total, 33 MFI staff were trained on SME risk management. Leveraging this experience, the same volunteer also worked with two local experts from TIOB to develop a new training course on Credit Risk Management. • ENGINE and NAFAKA collaborated on an activity to conduct credit and institutional assessments for 18 NAFAKA-supported PO. The assessments were conducted by five BDSPs and served as on-the-job training because ENGINE provided them with additional support from a volunteer expert on how to improve their training methodologies and institutional and credit assessments as service providers. For further details, please refer to the success story in Annex 6. • A Youth Finance Expert worked with VisionFund to help them develop a new youth lending product to increase access to capital among youth business owners. This initiative is still ongoing and ENGINE plans to provide additional support in the coming quarter.

TIOB. Between 20-22 October, in partnership with ENGINE, TIOB held a training session on NPL Management. In total, 19 participants from six financial institutions attended the training. Following this activity, in December 2018, ENGINE brokered a market linkage between former ENGINE volunteer and finance expert Tara Heusé Kenyon’s firm, Kentara Analytics, and TIOB. The two parties agreed to license training content for TIOB’s newly developed online training platform. For further details, please refer to the attached success story.

Value Chain Financing Opportunities. ENGINE assisted lead firm partner Silverlands Poultry in selecting a financial institution partner to assume a loan book of approximately $150,000 in credit extended to their broader network. Through ENGINE support, FINCA and VisionFund each developed proposals for Silverlands.

ENGINE also began working with the Pyrethrum Company of Tanzania (PCT) to identify financing for several large landowners interested in producing pyrethrum and supplying to PCT at a large scale. Meetings were held with two leasing companies, PASS Trust, and USAID’s Development Credit Authority. Work on this activity will continue into the next quarter.

Credit Readiness for MSMEs

BDSP Follow-Up Support. In December, ENGINE staff traveled to Mbeya, Morogoro, Iringa and Zanzibar to meet with 19 credit-readiness trained BDSPs to assess what further support was required from ENGINE.

MSME Pipeline Development. Representatives from FINCA, VisionFund and Lulu Saccos participated in the “Tukubaliane Pamoja” market linkage event in Mbeya hosted by five USAID programs. Following the event, Lulu Saccos opened two new line of credit accounts through the event and representatives from the other two financial institutions also noted several positive leads stemming from their participation. During the event, 16 MSMEs registered with the Bizfundi platform (with over 80 percent indicating they operate in agriculture).

Bizfundi Linkage Platform

Usage Activity. During the quarter, 37 new users registered on the mobile platform during the quarter, including: 32 SMEs (with 50 percent indicating they operate in agriculture), and five BDSPs, bringing the total number to 2,724. Moreover, there were an additional 75 installs of the mobile app, bringing the total number of mobile applications installed to 625.

Platform Development. New features added to the platform this quarter include a searchable database of over 40 online business training courses, a podcast player featuring content that focuses on doing business in Africa, and full integration of the credit readiness workflow with the Dun & Bradstreet credit reference bureau database. The portal is expected to be completed in the coming quarter.

User Focus Groups and Refresher Training. In December, ENGINE staff met with 120 MSMEs registered on the Bizfundi platform to assess current usage patterns, identify user impediments, and provide a refresher training. One notable finding was that many users had failed to recall their passwords and struggled with the password recovery process. In response, a more simplified user verification process will be implemented in the next quarter.

PLANNED ACTIVITIES FOR NEXT REPORTING PERIOD

COMPONENT 1: IMPLEMENT POLICIES FOR GROWTH

During the 2nd Quarter of FY’19, Component 1 plans to implement its work plan with a greater alignment toward Feed the Future (FtF) objectives. We also plan to deepen our collaboration with other relevant FtF programs.

Support PPDs. In Tanzania Mainland (Morogoro, Mbeya and Iringa), ENGINE will support and facilitate regional and district business councils in six LGAs with a specific emphasis on by-laws reforms related to agriculture and nutrition. Additional activities will include strategic plan reviews in the Kyela District Council (DC) and Kilosa DC, investment promotion strategy reviews in Morogoro Municipal Council (MC), Mbeya City Council (CC) and Mufindi DC, as well as a revenue enhancement plan for Mbeya City Council.

PRPT. Once the online system is developed, ENGINE will conduct trainings on its use and develop a user- operational manual in collaboration with the PORALG-ICT team. Following the roll out of the online system, ENGINE will support and facilitate the adoption of the system in all 11 LGAs.

Volunteer /Consultant Assignments. Upcoming volunteer assignments include; Revenue Enhancement Plan for Mbeya City Council, TCCIA Organizational Development Assessment in Kyela District Council and Mufindi DC, Iringa Municipal investment, and Agri-Nutrition Projects Design and Mobilization Training to ten institutions in Iringa. In addition, ENGINE will engage consultants to facilitate Kilosa, Kyela DC strategic plan reviews and facilitate the development of three Unguja LGA Strategic Plans, as well as facilitate review of Investment Promotion Strategies for Mufindi DC, Mbeya CC, Morogoro MC and Unguja 3 LGAs. Consultant and volunteer experts will also conduct needs assessment of Morogoro community-based organizations (CBOs) and capacity building in SWM, recycling technologies, as well as conducting activities linking community-based organizations to BDSPs. ENGINE will also partner with SAGCOT to lead an assessment of the Mbarali cluster that will develop a strategy for expanding the participation of agricultural SMES and replicate this approach in the other five SAGCOT clusters.

COMPONENT 2: EQUIP BUSINESSES FOR GROWTH

Lead Firm/Value Chain Activities. One volunteer expert will design training materials and train BDSPs to organize pyrethrum small holder farmers into solidarity groups and provide the groups with a basic knowledge of business management skills and pyrethrum agronomy. Another expert volunteer will train and conduct a ToT for BDSPs to recruit and train veterinarians for the poultry lead firm, to expand the availability of poultry feed and basic extension services to poultry small holder farmers. As a focal point, ENGINE will also field a medium-term consultant to work with the lead firms and develop further volunteer and consultant SoWs.

Provision of Technical Assistance to BDS Providers. At least five scopes of work will be finalized for volunteer experts to provide trainings and technical assistance on the following topics: market linkages

for small holder famers; business formalization processes; resource mobilization; quality control and assurance; and strategic planning. In addition, one volunteer expert will be recruited to work with Moshi Cooperative University and the Commission of Cooperatives to develop a capacity building plan for private cooperative trainers.

e-Coupon System. In the coming quarter, the e-Coupon arrangement will be revised with the objective to give more priority to MSMEs linked with the three value chains and agribusiness related activities. A select group of BDSPs offering services to the value chain MSMEs will be trained to use the e-Coupon support in order to expand BDS to MSMEs linked with the lead firms and agricultural value chains.

COMPONENT 3: ACCESS TO FINANCE FOR GROWTH

Financial Institution Training. In response to the feedback that ENGINE received from BDSPs, two-day agriculture finance trainings are being planned with TIOB in Morogoro, Iringa and Mbeya. Training sessions will be open to both BDSPs’ and financial institution’s staff. In addition, ENGINE will also initiate recruitment for volunteer experts to offer institution-specific support on topics including trade finance, customer service, product development, marketing, and International Financial Reporting Standards (IFRS) reporting.

Value Chain Financing. ENGINE will continue to link potential pyrethrum growers with leasing and working capital. Support to SMEs working in dairy supply chains is also planned for the near future.

Credit Readiness Service for SMEs. ENGINE will seek to finalize agreements with additional financial institutions, including Amana Bank and the Tanzania Angel Investors Network (TAIN), to participate in the credit readiness trainings.

BizFundi Platform. ENGINE will develop a work plan to transition the Bizfundi platform to a local host institution. Additional features on the platform to be undertaken during the quarter include finalization of the financial institution portal, development of an online marketplace, and a targeting messaging feature for BDSPs. Further user experience testing is also planned. III.

Staff Recruitment and Key Personnel Turnover. In coordination with USAID, IESC transitioned to an interim Chief of Party on 3 December 2019. A transition plan was presented to USAID and open recruitment is underway for a new Chief of Party. Recruitment for this position will be finalized during the next quarter. ENGINE also welcomed two medium-term peace corps volunteers. The volunteers’ assignments are six and nine months, respectively, and their SoWs focus on providing communications, grants and technical support to the program.

Security Contractor. Following the theft of ENGINE’s Toyota Land Cruiser on 13 April 2018, IESC fully cooperated with the police and insurance company and took further theft mitigation precautions.

Following the insurance company’s reimbursement for the stolen vehicle in the 4th Quarter, ENGINE conducted a full and open competition and selected a new security company, which will be mobilized in January 2019.

Value-Added Tax (VAT). IESC has been working with its finance teams to ensure that the program’s approach to VAT billings aligns with the AO’s guidance provided during September 2018. A memorandum documenting these steps will be submitted during the next quarter.

SUSTAINABILITY

Component 1. In support of its anchor institutions, ENGINE will continue to partner with LGTI to incorporate the LGACI training into its training curricula. The LGACI, as a business enabling environment tool, ranks LGAs’ performance based on the level of service delivery with the objective of promoting healthy competition. In addition, ENGINE is also partnering with PO-RALG to develop the PRPT as an online tool that PO-RALG will continue to utilize after ENGINE is completed.

Component 2. The sustainability of ENGINE’s BDS activities continues to be rooted in building the capacity of local BDSPs, and close collaboration with key government institutions with mandates in business formalization, regulation and facilitation. Local BDSPs are being trained to offer market-driven, specialized services to MSMEs working in its three agricultural value chains. This approach coupled with expanding efforts to link BDSPs with key government institutions will be replicated in other value chains in the country, guaranteeing sustainable growth in the BDS market.

Component 3. This quarter, ENGINE worked with TIOB and BDSPs to build their capacity and develop new sources of revenue. In addition, the transfer of the Bizfundi platform to a local host and the promotion of linkages within ENGINE’s selected value chains—both of which remain ongoing efforts— will also make a significant and lasting contribution to ENGINE’s post-program impact.

COMMUNICATIONS AND OUTREACH

During the reporting period, ENGINE’s communications team finalized a contract to prepare twelve, two-minute videos depicting BDSP and MSME scenarios and in addition, drafted a communications plan, which will identify project target audiences and the best communications mediums. Both of these tools will be finalized during the next quarter. In addition to these activities, ENGINE continued to use Facebook for outreach and to create awareness of its activities. Out of 280 people who responded to three Facebook advertisements, 92 were women and 154 were youth.

GRANTS

Component 1. ENGINE continued to support LGTI’s revision, pretesting and administration of the LGACI in ENGINE’s first six LGAs and the Office of Chief Government Statistics (OCGS) grant to conduct a business formalization survey.

Component 2. Six BDSPs (three from Mbeya, two from Iringa and one from Morogoro) received approval for their matching grant applications from the USAID Agreement Officer. The purpose of these grants is to support the design and promotion of innovative BDS products to new markets and clients with an emphasis on MSMEs involved in agriculture and agribusiness related activities. During the next quarter, the post award sessions for the BDSP grants will be finalized and activities to expand BDSP to new markets and clients will commence.

Component 3. ENGINE continued to select and issue awards to financial institutions. Under the Yetu Microfinance grant, loans are now issued. ENGINE also completed a pre-award assessment for Lulu Saccos. In addition, on September 17, 2018, it was agreed that the FINCA Microfinance Bank Limited grant could proceed and a post-award orientation and training was held. In the upcoming quarter, approval requests will be submitted to USAID to issue grants to the following financial institutions: Lulu Saccos, Visionfund, Tanzania Microfinance Bank, Amana Bank Limited, UMI Saccos Limited and Jumuiya ya Changamoto Saccos.

ENVIRONMENTAL COMPLIANCE

At the time of ENGINE’s environmental management trainings, the National Environment Management Council (NEMC) was revising its Environment Impact Assessment (EIA) and Audit Regulations. As the revision has been completed, ENGINE will now disseminate NEMC’s Environmental Management (Environmental Impact Assessment and Audit) (Amendment) Regulations, 2018 to BDSP managers.

GENDER & YOUTH

ENGINE has continued its discussions related to the ‘Facilitation of Loans for Women, Youth and People with Disabilities’ (formerly the LGA Women and Youth Empowerment Funds) with PO-RALG. Once the regulations to operationalize this policy are finalized, they will be shared with ENGINE to identify potential areas of collaboration. During the next quarter, ENGINE’s Gender & Youth Working Group, will work with a gender and youth consultant to review past activities and current programming on gender/youth integration in relation to USAID’s current policies and priorities.

ENGINE’s MEL team continued to conduct field verification visits and update the program’s aggregation systems and data collection forms to reflect USAID’s approval of the revised MEL Plan on October 9, 2018. Further information on the program’s MEL activities can be found in Annex 1.

ANNEX 1 – ENGINE PROGRESS TOWARD INDICATORS

During the reporting period, field verification visits were also conducted by the MEL team from November 26 to December 12, 2018 to follow up on a number of policy reforms that were reported to have reached final approval and full and effective implementation at the end of FY’18, an achievement that was reached much earlier than previously projected. In support of this endeavor, ENGINE staff visited and carried out in-depth interviews of representatives from the Mbeya City Council, Kyela District Council, Iringa Municipal Council, Mufindi District Council, Morogoro Municipal Council and TCCIA chapters in Mbeya, Iringa, and Morogoro. The discussions and observations from the field verification visits were recorded and shared with component teams and management for use in improving the design of Component 1 implementation activities going forward.

Upcoming Activities: The focus of MEL efforts during the next quarter will be to work with component teams to improve the capture and reporting of indicators where the program continues to lag. With the commencement of BDS activities with lead firms, the MEL team will support the collection of baseline data from the farmer networks of these firms (those which supply their raw materials) in second quarter. This baseline data will be useful in future impact assessments related to the effects of the intervention activity on production, farmer income, investment and potentially new employment created on their farms.

In addition, with the development and roll-out of the LGACI by ENGINE grantee, LGTI, the MEL team will monitor the usage/application of baselines collected from local government authorities (LGAs)- and provide technical support where necessary to ensure correct and accurate analysis when capturing the year on year change in the LGA’s index during reporting for Custom indicator 1A.

Field verification activities will also be carried out between February and March 2019. The indicator results to be verified will be decided during discussions with senior management and component teams following the presentation of first quarter’s aggregated results.

ADJUSTMENTS BASED ON THE LEARNING AGENDA

Through a series of one-on-one meetings with 19 credit readiness-trained BDSPs in December, it was revealed that BDSPs were providing credit readiness services to their clients, but their efforts weren’t being captured through ENGINE’s data collection process. In total, 14 BDSPs had offered credit readiness services to 62 MSME clients, with 11 MSMEs so far linked to four financial institutions. The most frequently cited reason for the variance in approach was because BDSPs steer their clients toward financial institutions who offer lower interest rates than what is available through ENGINE’s partner FIs, as well as those with which they stronger relationships. Moving forward, ENGINE has amended its data collection procedures to capture the broader impact of the credit readiness activity. ENGINE is working to expand the number of financial institutions that it partners with.

Performance Total Total MEL Plan ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Year Year Disaggregation Total Y3 Cumulative Indicator (source of One Two Y3 Q1FY19 LOP Indicator Actuals % Actuals to % Type information) (FY17) (FY18) Target Actuals Target to date Date Actuals Actuals Activity Purpose: Increase private sector investment leading to inclusive, broad-based economic growth in the SAGCOT, plus Zanzibar USD USD USD USD USD USD Aggregate N/A 89% 62% 2,236,739 3,134,871 2,788,250 2,788,250 8,097,766 5,024,989 USD USD USD USD Morogoro N/A N/A N/A Value of new 828,237 1,166,868 1,166,868 1,995,105 private sector Custom/ USD USD USD USD P1 investment Iringa N/A N/A N/A Outcome 598,017 735,217 735,217 1,333,234 facilitated by USD USD USD USD ENGINE Mbeya N/A N/A N/A 673,776 852,396 852,396 1,526,172 USD USD USD Zanzibar N/A N/A N/A USD 160,501 127,705 32,797 32,797 Component 1: Implementing policies for growth Data Data Data At least Percent of target Aggregate N/A 50% N/A N/A 0% unavailable unavailable unavailable 50% of All LGAs with Data Data Data 11 target improved or Morogoro N/A N/A N/A unavailable unavailable unavailable LGAs maintained Local Custom/ Data Data Data maintain 1A Government Iringa N/A N/A N/A Outcome unavailable unavailable unavailable or Authority improve Competitiveness Data Data Data Mbeya N/A N/A their N/A Index (LGACI) unavailable unavailable unavailable Data Data Data LGACI scores Zanzibar N/A N/A N/A unavailable unavailable unavailable scores Number of Aggregate 71 326 160 83 83 52% 480 480 100% business enabling Stage 1 29 101 80 23 23 29% 240 153 64% environment Stage 2 37 158 40 46 46 115% 120 241 201% policies Custom/ analyzed, Stage 3 3 45 30 11 11 37% 70 59 84% 1B Output and consulted on, Outcome Stage 4 2 16 10 2 2 20% 30 20 67% drafted or revised, Stage 5 0 6 N/A 1 1 20 7 35% approved, and Total Policies implemented with Passing 1 or More 12 114 N/A 16 16 N/A 142 USG assistance Steps

MEL Plan Performance Disaggregation Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Indicator Indicator (source of Year Year Y3 Q1FY19 Total % LOP Cumulative % Type information) One Two Target Actuals Y3 Target Actuals to (FY17) (FY18) Actuals Date Actuals Actuals to date 1C Custom/ Number of policies Aggregate 80 167 80 20 20 25% 243 267 110% Outcome with reform Morogoro Municipal 21 10 N/A 0 0 N/A 31 recommendations Council made to the relevant authority in forums Kilosa District 0 16 N/A 0 0 N/A 16 with key Council stakeholders present Iringa Municipal 21 18 N/A 4 4 N/A 43 Council Mufindi District 0 13 N/A 0 0 N/A 13 Council Mbeya City Council 13 5 N/A 4 4 N/A 22 Kyela District 0 21 N/A 0 0 N/A 21 Council Zanzibar Urban 0 13 N/A 1 1 N/A 14 Municipal Council Chake Chake Town 0 7 N/A 1 1 N/A 8 Council Wete Town Council 0 7 N/A 1 1 N/A 8 West A Municipal 0 13 N/A 1 1 N/A 14 Council West B Municipal 0 18 N/A 1 1 N/A 19 Council Morogoro 21 26 N/A 0 0 N/A 47 Iringa 21 31 N/A 4 4 N/A 56 Mbeya 13 26 N/A 4 4 N/A 43 Zanzibar 0 58 N/A 5 5 N/A 63

MEL Plan Performance Disaggregation Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Indicator Indicator (source of Year One Year Y3 Q1FY19 Total Y3 % LOP Cumulative % Type information) (FY17) Two Target Actuals Actuals Target Actuals to Actuals (FY18) to date Date Actuals 1D Custom/ Number of Aggregate 0 6 16 2 2 13% 26 8 31% Output roadmaps for Morogoro Municipal 0 2 N/A 0 0 N/A 2 regulations and Council administrative procedures made Kilosa District 0 2 N/A 0 0 N/A 2 publicly available Council Iringa Municipal 0 2 N/A 0 0 N/A 2 Council Mufindi District 0 0 N/A 0 0 N/A 0 Council Mbeya City Council 0 0 N/A 2 2 N/A 2 Kyela District 0 0 N/A 0 0 N/A 0 Council Zanzibar Urban 0 0 N/A 0 0 N/A 0 Municipal Council Chake Chake Town 0 0 N/A 0 0 N/A 0 Council Wete Town Council 0 0 N/A 0 0 N/A 0 West A Municipal 0 0 N/A 0 0 N/A 0 Council West B Municipal 0 0 N/A 0 0 N/A 0 Council 1E Custom/ Number of broad Aggregate 14 27 24 11 11 46% 67 52 78% Output public and private Morogoro 3 11 N/A 3 3 N/A 17 stakeholders’ business enabling Iringa 5 5 N/A 3 3 N/A 13 environment (BEE) policy forums Mbeya 3 7 N/A 1 1 N/A 11 established or Zanzibar 1 3 N/A 4 4 N/A 8 supported

MEL Plan Performance Disaggregation Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Indicator Indicator (source of Year One Year Y3 Q1FY19 Total % LOP Cumulative % Type information) (FY17) Two Target Actuals Y3 Target Actuals to Actuals (FY18) Actuals Date Actuals to date 1F Custom/ Average percent Aggregate N/A 56% 7% N/A N/A N/A At least 56% 281% Outcome change from 20% Morogoro N/A 14% N/A N/A N/A 14% previous year in increase Municipal Council business licenses from issued across all Kilosa District N/A 33% N/A N/A N/A baseline as 33% target LGAs Council an average Iringa Municipal N/A 44% N/A N/A N/A across all 44% Council mainland Mufindi District N/A Data N/A N/A N/A target N/A Council unavailable LGAs, and Mbeya City Council N/A 20% N/A N/A N/A at least 20% 10% Kyela District N/A 170% N/A N/A N/A 170% across all Council targeted Zanzibar Urban N/A Data N/A N/A N/A LGAs in N/A Municipal Council unavailable Zanzibar Chake Chake N/A Data N/A N/A N/A N/A Town Council unavailable Wete Town Council N/A Data N/A N/A N/A N/A unavailable West A Municipal N/A Data N/A N/A N/A N/A Council unavailable West B Municipal N/A Data N/A N/A N/A N/A Council unavailable 1G Custom/ Number of Aggregate 253 404 600 369 369 62% 1500 1026 68% Output individuals trained Women 182 144 N/A 143 143 N/A 469 on the job in women/youth Youth 71 168 N/A 176 176 N/A 415 integration, policy analysis, policy Public Sector Data 285 N/A 221 221 N/A 506 design, advocacy, Affiliated unavailable and Private Sector Data 119 N/A 148 148 N/A 267 implementation Affiliated unavailable

Performance Total MEL Plan Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Year Disaggregation Year One Total Y3 Cumulative Indicator (source of Two Y3 Q1FY19 LOP Indicator (FY17) Actuals % Actuals to % Type information) (FY18) Target Actuals Target Actuals to date Date Actuals Number of operating units Custom/ across target LGAs 1H Aggregate 51 127 140 61 61 44% 377 239 63% Outcome receiving policy analysis capacity building Number of Aggregate 9 39 58 13 13 22% 150 61 41% institutions Public Sector Data Custom/ engaged in policy 28 N/A 11 11 N/A 39 1I Affiliated unavailable Output reform work Private Sector Data strengthened 11 N/A 2 2 N/A 13 and/or established Affiliated unavailable Component 2: Equipping for growth USD USD USD USD USD Aggregate N/A 37% USD 483,269 36% 333,682 400,000 149,586 149,586 1,360,000 Value of sales by Custom/ Women USD USD USD 2A ENGINE supported N/A N/A N/A USD 180,704 Outcome Owned/Managed 113,645 67,059 67,059 BDS providers Youth USD USD USD N/A N/A N/A USD 217,223 Owned/Managed 119,094 98,129 98,129

Performance Total Total MEL Plan ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Year Year Total Disaggregation Cumulative Indicator (source of One Two Y3 Q1FY19 Y3 LOP Indicator % Actuals to % Type information) (FY17) (FY18) Target Actuals Actuals Target Date Actuals Actuals to date Aggregate N/A 8% 5% 8% 8% 158% 8% 53% Women N/A 9% N/A 7% 7% 8% Owned/Managed Jointly N/A 10% N/A 9% 9% 9% Owned/Managed Percent change in Youth N/A 8% N/A 9% 9% 15% 9% revenue of MSMEs Owned/Managed Increase within the ZOI Custom/ Morogoro N/A 9% N/A 9% 9% On 9% 2B purchasing services Outcome average from ENGINE- Iringa N/A 9% N/A 10% 10% 9% from supported BDS Mbeya N/A 5% N/A 7% 7% Baseline 6% providers Zanzibar N/A 10% N/A 10% 10% 10% Micro N/A 8% N/A 8% 8% 8% Small N/A 10% N/A 6% 6% 8% Medium N/A 8% N/A N/A N/A 8% Aggregate N/A 199 824 37 37 4% 2186 236 11% Number of jobs Women N/A 107 N/A 16 16 N/A 122 created by private enterprises, Youth N/A 186 N/A 36 36 N/A 222 Custom/ business 2C Outcome associations, and Morogoro N/A 34 N/A 14 14 N/A 47 CSOs within the Iringa N/A 31 N/A 10 10 N/A 40 ZOI who received ENGINE assistance Mbeya N/A 113 N/A 10 10 N/A 123 Zanzibar N/A 23 N/A 3 3 N/A 25

MEL Performance Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Plan Indicator ENGINE ENGINE Year Year Disaggregation Total Y3 Cumulative Indicator (source of One Two Q1FY19 LOP Indicator Y3 Target Actuals to % Actuals to % Type information) (FY17) (FY18) Actuals Target date Date Actuals Actuals Aggregate N/A 479 525 388 388 74% 1404 867 62% Sex: Female N/A 150 N/A 155 155 N/A 305 Sex: Male N/A 317 N/A 232 232 N/A 549 Sex: N/A N/A 12 N/A 1 1 N/A 13 Number of Age: Youth (15-35) N/A 194 N/A 191 191 N/A 385 individuals participating in Age: Non-Youth (35+) N/A 266 N/A 185 185 N/A 451 2D EG3.2/Output USG food Age: N/A N/A 19 N/A 12 12 N/A 31 security Type of Individual: People in programs N/A 291 N/A 223 223 N/A 514 Government Type of Individual: Proprietors of USG-assisted N/A 72 N/A 25 25 N/A 97 private sector firms Type of Individual: People in N/A 116 N/A 140 140 N/A 256 civil society Aggregate N/A 4308 1000 1191 1191 119% 2600 5499 212% Women Owned/Managed N/A 1926 N/A 313 313 N/A 2239 Youth Owned/Managed N/A 2228 N/A 293 293 N/A 2521 Number of MSMEs Morogoro N/A 534 N/A 521 521 N/A 1055 purchasing Custom Iringa N/A 1097 N/A 73 73 N/A 1170 2E services from /Output ENGINE- Mbeya N/A 1535 N/A 331 331 N/A 1866 supported BDS Zanzibar N/A 1142 N/A 266 266 N/A 1408 providers Micro N/A 3299 N/A 553 553 N/A 3852 Small N/A 288 N/A 63 63 N/A 351 Medium N/A 85 N/A 12 12 N/A 97

Performance Total Total MEL Plan ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Disaggregation Year One Year Two Total Y3 Cumulative Indicator (source of Y3 Q1FY19 LOP Indicator (FY17) (FY18) Actuals % Actuals to % Type information) Target Actuals Target Actuals Actuals to date Date Aggregate 691 3945 2000 377 377 19% 5700 5013 88% Women 368 1793 N/A 133 133 N/A 2294 Owned/Managed Youth Number of MSMEs 147 2254 N/A 240 240 N/A 2641 Custom/ informed about Owned/Managed 2F Output BDS and financial Morogoro 137 1114 N/A 79 79 N/A 1330 services Iringa 155 875 N/A 20 20 N/A 1050 Mbeya 236 955 N/A 90 90 N/A 1281 Zanzibar 163 633 N/A 26 26 N/A 822 Aggregate N/A 490 400 488 488 122% 600 978 163% Number of MSMEs Custom/ Micro N/A 436 N/A 452 452 N/A 888 2G issued with e- Output Coupons Small N/A 53 N/A 35 35 N/A 88 Medium N/A 1 N/A 1 1 N/A 2 Aggregate 95 105 105 33 33 31% 405 233 58% Women 49 40 N/A 16 16 N/A 105 Owned/Managed Youth Number of BDS 27 27 N/A 15 15 N/A 69 Custom/ providers receiving Owned/Managed 2H Outcome ENGINE Morogoro 15 14 N/A 6 6 N/A 35 assistance Iringa 20 20 N/A 8 8 N/A 48 Mbeya 32 40 N/A 16 16 N/A 88 Zanzibar 28 31 N/A 3 3 N/A 62 Number of new products or Custom/ 2I services offered by Aggregate 0 193 20 18 18 90% 48 211 440% Outcome ENGINE- supported BDSPs

Performance Total Total MEL Plan ENGINE Year Three (FY19) Life of Project (LOP) Totals Indicator ENGINE ENGINE Year Year Disaggregation Total Y3 Cumulative Indicator (source of One Two Y3 Q1FY19 LOP Indicator Actuals % Actuals to % Type information) (FY17) (FY18) Target Actuals Target to date Date Actuals Actuals Component 3: Financing for growth Percent of DCA Custom/ utilization among 3A Aggregate N/A N/A N/A N/A N/A N/A N/A N/A N/A Outcome partner financial institutions Value of Loans- USD USD USD USD USD N/A 195% USD 2,341,340 130% Aggregate 716,890 832,500 1,624,450 1,624,450 1,803,750 Value of Loans- USD USD USD N/A N/A N/A N/A USD 1,110,410 Women Owned 319,994 790,416 790,416 Value of Loans- USD USD USD N/A N/A N/A N/A USD 1,224,321 Male Owned 393,914 830,407 830,407 Value of Loans- USD USD Jointly Owned: N/A USD 0 N/A N/A N/A USD 3,627 3,627 3,627 Gender Value of Loans- Value of N/A USD 2,982 N/A USD 0 USD 0 N/A N/A USD 2,982 agriculture-related N/A: Gender EG 3.2-27/ financing Value of Loans- USD USD USD 3B N/A N/A N/A N/A USD 662,365 Output accessed as a Youth Owned 206,011 456,354 456,354 result of USG Value of Loans- USD USD USD N/A N/A N/A N/A USD 1,629,769 assistance Non-Youth Owned 510,879 1,118,890 1,118,890 Value of Loans- USD USD Jointly Owned: N/A USD 0 N/A N/A N/A USD 48,943 48,943 48,943 Youth Value of Loans- N/A USD 0 N/A USD 0 USD 0 N/A N/A USD 0 N/A: Youth Value of Loans- USD USD USD N/A N/A N/A N/A USD 1,732,408 Micro 499,360 1,233,048 1,233,048 Value of Loans- USD USD USD N/A N/A N/A N/A USD 477,833 Small 217,530 260,303 260,303

MEL Performance Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals Plan Indicator ENGINE ENGINE Indi Disaggregation Year One Year Two Total Y3 Indicat (source of Y3 Q1FY19 Cumulative cato (FY17) (FY18) Actuals % LOP Target % or Type information) Target Actuals Actuals to Date r Actuals Actuals to date USD USD Value of Loans- Medium N/A USD 0 N/A N/A N/A USD 131,099 131,099 131,099 # of Loans- Aggregate N/A 1631 N/A 3,818 3,818 N/A N/A 5,449 # of Loans- Women N/A 880 N/A 2,305 2,305 N/A N/A 3,185 Owned # of Loans- Male Owned N/A 738 N/A 1,506 1,506 N/A N/A 2,244 # of Loans- Jointly Owned: N/A 0 N/A 7 7 N/A N/A 7 Gender Value of EG 3.2- agriculture-related # of Loans- N/A: Gender N/A 13 N/A 0 0 N/A N/A 13 3B 27/ financing accessed # of Loans- Youth Owned N/A 663 N/A 1,400 1,400 N/A N/A 2,063 Output as a result of USG # of Loans- Non-Youth assistance N/A 968 N/A 2,289 2,289 N/A N/A 3,257 Owned # of Loans- Jointly Owned: N/A 0 N/A 128 128 N/A N/A 128 Youth # of Loans- N/A: Youth N/A 0 N/A 1 1 N/A N/A 1 # of Loans- Micro N/A 1500 N/A 3,778 3,778 N/A N/A 5,278 # of Loans- Small N/A 131 N/A 38 38 N/A N/A 169 # of Loans- Medium N/A 0 N/A 2 2 N/A N/A 2 Aggregate N/A 8% 5% 4% 4% 72% 15% 6% 40%

Percent increase in Women Owned/Managed N/A -22% N/A -8% -8% N/A N/A -15% number of business Youth Owned/Managed N/A -2% N/A -21% -21% N/A N/A -11% loans issued to Custom/ MSMEs operating FINCA N/A 28% N/A 38% 38% N/A N/A 33% 3C Outcome within the ZOI from financial institutions VISIONFUND N/A -53% N/A -40% -40% N/A N/A -47% receiving ENGINE Not YETU N/A N/A -19% -19% N/A N/A -19% assistance Reported Data Data BANK OF AFRICA N/A 50% N/A N/A N/A 50% unavailable unavailable

MEL Plan Performance Indicator Disaggregation Total Total ENGINE Year Three (FY19) Life of Project (LOP) Totals ENGINE ENGINE Year One Year Two Indicator Indicator (source of information) (FY17) (FY18) Y3 Q1FY19 Total Y3 % LOP Target Cumulative % Type Actuals Actuals Target Actuals Actuals Actuals to to date Date

Cross-Cutting (Volunteerism) CC1 Custom/ Number of volunteer expert Aggregate 28 28 36 10 10 28% 117 66 56% Output assignments mobilized Women 10 9 N/A 6 6 N/A 25 Component 1 11 12 N/A 3 3 N/A 26 Component 2 3 7 N/A 1 1 N/A 11 Component 3 11 9 N/A 5 5 N/A 25 CC2 Custom/ Number of days of Aggregate 587 680 805 274 274 34% 2700 1541 57% Output volunteer expert service Component 1 349 290 N/A 47 47 N/A 686 delivered Component 2 84 224 N/A 41 41 N/A 349 Component 3 91 165 N/A 146 146 N/A 402 CC3 Custom/ Value of volunteer expert Aggregate USD USD USD USD USD 29% USD USD 64% Output service 388,788 473,894 459,775 131,282 131,282 1,548,062 993,963 Component 1 USD USD N/A USD USD N/A USD 192,564 182,049 27,380 27,380 401,993 Component 2 USD 66,393 USD N/A USD USD N/A USD 162,388 29,790 29,790 258,570 Component 3 USD 80,749 USD N/A USD USD N/A USD 129,457 74,112 74,112 284,318 CC4 GNDR-2/ Percentage of female Aggregate N/A 54% 40% 60% 60% 151% 45% 57% 128% Output participants in USG- assisted programs designed to increase access to productive economic resources CC5 YOUTH- Percentage of participants Aggregate N/A 41% 35% 38% 38% 108% 40% 39% 98% 3/Output in USG-assisted programs designed to increase access to productive economic resources who are youth (15-29)

Footnotes:

1. Following the release of the new FTF Handbook in March 2018, ENGINE revised its MEL Plan, which received final approval in FY'18Q4. The number of performance indicators that it will report on has increased to 31 Indicators 4 new FTF Indicators (EG3.2, EG3.2-27, GNDR-2 and YOUTH-3) added to the portfolio, 2 FTF Standard Indicators that were archived by Feed the Future dropped (EG3.2-3, EG3.2-21), and 1 FTF Standard Indicator that was archived transitioned to a custom indicator (EG3.1-12), and will be reported on as such from FY'19 onwards.

2. 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.

3. CRDB’s guarantee was terminated by DCA in October 2017. CBW had its banking license revoked by the BOT in January 2018. PRIDE’s guarantee was suspended by DCA in April 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.

4. "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 compilation and aggregation of the data collected.

5. 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.

6. Under CC1 and CC2, the aggregate number of days and assignments does not match the individual breakdown sum because one of the program’s Peace Corps volunteers works with ENGINE’s cross-cutting units.

7. For Custom Indicators C1-C3, during FY’18, ENGINE and its partners conducted data checks of each of the volunteer’s contributions and the number of days reported. During this check, ENGINE found discrepancies in the number of days and the value of assignments reported due to changes in exchange rates and in the recording of preparation days. These indicators have been updated to reflect the updated totals.

ANNEX 2 – PROGRAM FINANCIAL REPORT

Percent Cost Category Budget Expenditures Remaining Remaining to Date Balance Personnel $3,304,250 $1,965,259 $1,338,991 41%

Fringe Benefits $1,192,326 $551,610 $640,716 54%

Travel and $722,523 $422,803 $299,720 41% Transportation

Equipment $142,990 $74,730 $68,260 48% Supplies $107,053 $86,174 $20,879 20% Contractual $8,971,058 $4,028,162 $4,942,896 55% Other Direct $1,452,171 $1,069,886 $382,285 26% Costs

Indirect Costs $4,106,908 $3,345,215 $761,693 19%

Total Federal $19,999,279 $11,543,840 $8,455,439 42% Cost Cost Share $505,947 $769,881 ($263,934) -52% Volunteer $1,370,329 0 $1,370,329 100% Leverage Program $10,371 ($10,371) Income

Total Program $21,875,555 $12,324,092 $9,551,463 44% Value

ANNEX 3- STAKEHOLDER OUTREACH AND MEETING SUMMARY

Please find below a list of stakeholder and outreach meetings conducted by IESC during the reporting period.

Date Institution Meeting Outcome Component 1

10/15/2018- Mbeya CC Problem statement validated 10/19/2018

Council’s departmental functions identified and 10/22/2018 Iringa MC revised

10/23/2018 Iringa MC Council’s gaps and causes identified & reviewed

10/24/2018 Iringa MC Wards data collected reviewed and analyzed

10/25/2018 Iringa MC Problem statement developed

10/26/2018 Iringa MC Problem statement validated

Comments from public and private sector on 10/23/2018- Mbeya City Council strengthening business enabling environment to 10/26/2018 SMEs generated and LGACI tool tested

10/27/2018 Iringa MC Stakeholders recommendations collected

10/29/2018 Urban, West A and West B LGACI tool tested

10/30/2018 Urban, West A and West B LGACI tool tested

10/31/2018 Urban, West A and West B LGCI tool tested trough PPD

Followed-up for Solid Waste Management 11/1/2018- Mbeya City Council Implementation Plan’s status and 11/2/2018 recommendations. A new way forward developed

Waste management assessment project 11/5/2018 Iringa MC introduced and basic information on waste management situation provided

Iringa MC Solid Waste One on one consultation meetings where waste 11/6/2018 stakeholders management situation analyzed

One on one consultation meetings where waste 11/7/2018 Mkwawa University management situational analyzed

One on one consultation meetings where waste 11/8/2018 IRUWASA and CBO management situation analyzed

Iringa Solid Waste One on one consultation meetings where waste 11/9/2018 Management CBOs management situational analyzed

One on one consultation meetings where waste 11/13/2018 Mwangata ward management situational analyzed

11/16/2018 ZCCIA and ZNBC ZCCIA and ZNBC way forward agreed on

Environmental and sanitation bylaw analyzed and 11/19/2018 Iringa MC consulted to Iringa MC stakeholders in PPD meeting

11/20/2018 Iringa MC LGA staff validated the report

11/21/2018 Iringa MC LGA management debriefed

11/13/2018- Solid Waste Management consultative meetings Urban, West A and WEST B 11/21/2018 completed

Urban, West A and West B Waste Management by-law discussed, and 11/22/2018 Municipalities recommendations provided

11/22/2018 Wete Town Council IAA validated

11/23/2018 Chake Chake Town Council IAA validated

Agreed to collaborate against challenges and to fast 11/26/2018 Mbeya City Council track the current efforts on the by-laws between January – March 2019

11/26/2018- Wete Town Council IAA action plan developed 11/27/2018

Discussed challenges for ENGINE program 11/27/2018 TCCIA Mbeya implementation and further program collaborations

Waste Management by-law discussed, and 11/27/2018 Urban Town Council recommendations provided

Agreed to collaborate against challenges and to 11/28/2018 Kyela District Council fast track the current efforts on the by-laws between January – March 2019

Discussed challenges for ENGINE program implementation and further program 11/28/2018 TCCIA Kyela collaborations. The chapter need Organizational Need Assessment beginning Jan- March 2019

LGACI tool questionnaire administered and data 11/28/2018 Morogoro MC and TCCIA from public and private sector stakeholders collected

LGACI tool questionnaire administered and data 11/29/2018 Morogoro MC and TCCIA from public and private sector stakeholders collected

11/28/2018- Chake Chake Town Council IAA action plan developed 11/29/2018

Regional commissioners introduced to 11/29/2018 Siasa ni Kilimo hall development partners

Development of Vision, Mission, Objectives, Key 11/29/2018- Mbeya City Council outcome that will lead to the production of Draft 11/30/2018 Strategic Plan

Strategic plan vision, mission & goal review plan 12/3/2018 Iringa MC and methodologies introduced to Council Management Team

Ministry of Agriculture, Natural USAID Feed the Future IPs meeting conducted, and 12/3/2018 Resources, Livestock and field visit to evidence the project activities Fisheries

Unguja-Urban, West A and LGACI tool questionnaire administered and data 12/3/2018 West B from private sector stakeholders collected

LGACI tool questionnaire administered and data 12/4/2018 Urban, West A and West B from public sector stakeholders collected

LGACI tool questionnaire administered and data 12/5/2018 Urban, West A and West B from public and private sector stakeholders collected

12/5/2018 Morogoro MC District Industrial establishment strategy discussed

12/4/2018- Iringa MC Council’s vision, mission and objectives reviewed 12/7/2018

12/6/2018- Morogoro MC-Environmental Solid waste management by-law analyzed, 12/7/2018 department redrafted

12/18/2018 Kilosa DC-DED ENGINE-Kilosa collaboration agreement finalized

12/14/2018 Mboga na Matunda-Morogoro Contacts established with Mboga na Matunda

12/14/2018 ZNBC Validated Strategic Plan

12/15/2018 ZNCCIA Approved ZNCCIA membership fee restructure

Component 2

Zanzibar BDS coordinator met with four Board members of ZATO to brief them about ENGINE Zanzibar Association of Tour 10/9/2018 Program. The board member expressed their Operators (ZATO) readiness to convince their members to explore the opportunities.

Zanzibar BDS Coordinator participated in ZATI Zanzibar Association of 10/9/2018 Annual General Meeting and presented the Tourism Investors (ZATI) ENGINE Program to 32 ZATI members.

Iringa BDS Coordinator participated on USAID Iringa Hub IPs meeting held at Kilolo District. The 10/10/2018 Iringa Hub Kilolo meeting was hosted by Kilolo LGA and was attended by Kilolo District Commissioner and USAID officials from Dar es Salaam.

Zanzibar National Chamber of Zanzibar BDS Coordinator presented ENGINE Commerce Industries and Program during ZNCCIA breakfast meeting which 11/7/2018 Agriculture (ZNCCIA), Ministry included SMEs involved in external trade and of Trade and Industries, TRA, Logistics sub-sectors and government agencies. 63 Peoples’ Bank of Zanzibar people participated.

Zanzibar BDS Coordinator presented ENGINE Zanzibar National Chamber of Program in ZNCCIA breakfast meeting which 11/10/2018 Commerce Industries and involved ZNCCIA management and leaders of Agriculture (ZNCCIA) different business groups in both urban and rural areas. 50 people participated.

Iringa BDS Coordinator, Expert Volunteer (Diana) and 2 BDSPs conducted interview with 2 11/20/2018- Iringa Region Pyrethrum Pyrethrum Farmer Groups leaders and 2 11/23/2018 farmers representatives from the Group Formation and Management.

Zanzibar BDS Coordinator met with Zanzibar Bureau of Standards (ZBS) management to agree on the Cost-Share Agreement arrangement for Zanzibar Bureau of Standards 11/21/2018 conducting training of trainers (ToT) on (ZBS) Standardization and Quality Assurance for our BDSPs. The Cost-Share Agreement was finalized and approved by CoP.

Morogoro BDS Coordinator met with TRA, LGA and TFDA separately and discussed about holding a TRA-Morogoro, LGA- network meeting between BDSPs and Government 11/29/2018 Morogoro, TFDA Morogoro Intuitions overseeing MSMEs. Follow up meetings Representative were proposed after consultation with their top managements.

Together with the expert volunteer Diana Lilla, Iringa BDS Coordinator held a meeting with the Lutheran World Relief (LWR) 11/29/2018 LWR's Senior Programme Manager on their Senior Manager in Mbeya experience in Farmer Groups Formation and Management.

Iringa BDS Coordinator and Expert Volunteer 11/30/2018 Mbeya Region Pyrethrum (Diana Lilla) conducted interview with Pyrethrum and farmers Farmer Groups leaders and non-group member 12/1/2018 farmers on Group Formation and Management.

Zanzibar BDS Coordinator participated in USAID, Ministry of Agriculture Natural FTF IPs and Ministry of Agriculture Natural 12/4/2018 Resources Livestock and Resources Livestock and Fisheries (MANRLF) Fisheries, USAID and FTF IPs quarterly meeting.

Program awareness meeting conducted by 12/6/2018 MSMEs Morogoro BDS Coordinator and eight MSMEs attended the meeting.

BDS Coordinator in Morogoro conducted Program awareness creation during the TCCIA 30 years 12/15/2018 TCCIA-Morogoro anniversary commemoration where 53 MSMEs attended the meeting

Zanzibar BDS Coordinator participated in ZNCCIA Zanzibar National Chamber of Annual General meeting which was officiated by 12/15/2018 Commerce Industries and the Second Vice President of Zanzibar Hon. Seif Ali Agriculture (ZNCCIA) Iddi and 99 members participated.

Mbeya BDS Coordinator held a meeting with BDSPs to share updates on BRELA 12/18/2018 Mbeya BDSPs certification/registration of their Network, the registration is on progress waiting for final documentation process from BDSPs.

BDS Coordinators in Zanzibar, Iringa Mbeya and 12/19/2018- BDSPs and MSMEs Morogoro met with BDSPs and MSMEs for 12/22/2018 quarterly feedback and data collection meetings.

Component 3

The 9th annual RFF brought together over 120 investors, industry, policymakers, practitioners and innovators to assess critical challenges facing Africa 10/2/2018 Responsible Finance Forum today as well as its potential to accelerate investments in responsible digital financial services.

Updates on execution of partnership agreement, including integration of D&B credit reference bureau data with Bizfundi’ s credit readiness 10/23/2018 Dun & Bradstreet workflow and sharing of information on credit scoring and financial management to be published on the Bizfundi platform.

Presentation of the Bizfundi platform to range of 3rd Diligent Consulting Annual local and international stakeholders under the 10/26/2018 Stakeholders Conference theme of "SME Financing: Lessons Learnt from using Direct and Indirect Approaches.”

Brokered partnership between TIOB and Kentara 10/31/2018 TIOB Analytics, as well as on development of a new training course on SME Risk Management.

Exploration of equipment leasing for pyrethrum 11/1/2018 Innovare Advisors value chain.

Introduction of Janet Buresh, volunteer expert, and 11/27/2018 NAFAKA discussion of the PO Institutional & credit assessment assignment.

Grants and Environmental Compliance

Conducted Sub Grant Post award/orientation FINCA Microfinance Bank 10/3/2018 session to FINCA staff team who are responsible Limited for sub grant activity implementation.

Grants Evaluation Committee members understood the proposed sub grant activity of each applicant. The discussions were based on the following: UMI Saccos Limited, AMANA • What did Applicant try to do before? Bank, Jumuiya ya Changamoto 11/22/2018- • What was successful and how did Applicant go Saccos and Zanzibar Economic 11/23/2018 about it? Empowerment Fund (ZEEF) and • What was not successful? Vision fund Tanzania • How does the proposed activity build off things that have been tried before? • What is the Applicant (FI) overall performance/condition? Financial indicators….

Conducted sub grant verifications to Office of Chief 12/27/2018- Office of Chief Government Government Statistician in Zanzibar as part of 12/28/2018 Statistician (OCGS) ENGINE sub grant management process

Conducted sub grant verifications to Local 12/27/2018- Local Government Training Government Training Institute as part of ENGINE 12/28/2018 Institute (LGTI) sub grant management process

USAID

Meeting with USAID AOR, Ms. Sara Calvert, and USAID/Tanzania Economic Growth Team. The 10/12/2018 USAID purpose was to introduce ENGINE Interim COP, Mr. Rod Carvajal. Also, in attendance was Faith Patrick, Team Lead for Component 1.

USAID AOR held a meeting with CoP, DCOP, BDS 10/29/2018 USAID AOR and ENGINE Staff Team Lead and Grants Manager to discuss applications for 6 BDSPs

Attendance by ENGINE Interim COP, Mr. Rod Carvajal, and other members of ENGINE's Sr. 11/12/2018 USAID Management at USAID/Tanzania Implementing Partners Conference.

USAID AOR held a meeting with Dalberg and USAID AOR, Dalberg and 11/23/2018 ENGINE staff to discuss BDS Market Assessment ENGINE staff assignment

12/4/2018 USAID staff at ENGINE Office Discussed Gender and Youth

ENGINE presentation to the USAID meeting with USAID meeting with Ministry of 12/4/2018 Ministry of Agriculture Natural Resources Live- Agriculture, Zanzibar stock and Fisheries meeting

Attendance by ENGINE Interim COP, Mr. Rod Carvajal, and other members of ENGINE's Sr. 12/12/2018 USAID Management at meeting/workshop with the Office of Economic Growth, USAID/Tanzania.

USAID Partner Meetings

USAID Development Credit Discussed the possibility of creating a loan 10/25/2018 Authority (DCA) portfolio guarantee for the pyrethrum value chain.

USAID-IPs Economic/Business ENGINE team (Mbeya and some Dar es Salaam Growth workshop-NAFAKA, based staff) participated on USAID IPs network 11/14/2018 WARIDI, ENGINE, Mboga na meeting. 12 BDSPs also attended, more than 20 Matunda and Advancing Youth BDS deals were agreed between BDSPs and program MSMEs.

Monitoring, Evaluation and Learning No meetings were conducted this quarter.

ANNEX 4- KEY STAKEHOLDERS AND ZANZIBAR ENGAGEMENT

COMPONENT 1: IMPLEMENTING POLICIES FOR GROWTH

PO-RALGSD: During the quarter, ENGINE management met with Permanent Secretary of President’s Office for Regional Administration, Local Government and Special Departments (PO-RALGSD) in Zanzibar to notify them of USAID’s instructions to limit support to PORALG-SD in Zanzibar until further notice. However, ENGINE expressed that it will continue to support LGAs as described in its workplan, with their policy reform efforts, in collaboration with the private sector. During the next quarter, ENGINE will also continue to support and facilitate ZNBC to establish and conduct Zanzibar Regional Business Councils (RBCs) and other PPDs geared towards finalizing ZNBC PPDs guidelines and strategic plans.

SWM By-Law Development: As a part of the completed Solid Waste Management assessment in 1st quarter, ENGINE will follow up on the finalization of SWM by-laws in all five Zanzibar LGAs and align the by-laws to agriculture and nutrition in collaboration with Feed the Future Implementing partners.

COMPONENT 2: BUSINESS DEVELOPMENT SERVICES

Provision of Technical Assistance to BDS Providers: In Zanzibar, eight BDSPs will receive a Training of Trainers course on quality assurance and standards. The training which will be jointly organized by Zanzibar Bureau of Standards and the ENGINE Program is meant to capacitate the eight BDSPs to offer quality assurance and standards services to MSMEs on a fee basis.

COMPONENT 3: FINANCING FOR GROWTH

Grants: Yetu Microfinance trained eight of their staff in Zanzibar on Islamic finance as part of their sub- grant focusing on youth agriculture production. Yetu is developing a Sharia-compliant loan product that it will offer to Zanzibari youth clients aiming to work in agriculture. In addition, ENGINE’s Grants Evaluation Committee reviewed proposals from financial institutions for activities specifically aimed at increasing lending among women and youth-owned businesses in Zanzibar. Three financial institutions were selected, Umi Microfinance, Amana Bank, and Jumuiya ya Changamoto. Each will undergo pre- award assessments during the subsequent quarter. A Fourth financial institution, the Zanzibar Economic Empowerment Foundation (ZEEF) was not selected by the committee but was referred to the USDA Farmer-to-Farmer program for possible support under that activity.

ENGINE also convened a grants evaluation committee to review five grant proposals: one from VisionFund and four from financial institutions operating in Zanzibar. The grants evaluation committee decided to move forward with proposals from VisionFund, Umi Microfinance, Amana Bank, and Jumuiya ya Changamoto.

ANNEX 5- VOLUNTEER ASSIGNMENTS

Award Total Quarter 1 Program to Balance FY’19 Date Total volunteer $505,947* $131,282 $993,963 -$488,016 cost-share* Total non- N/A $7,307 $7,307 -$7,307 volunteer cost share**

Total volunteer $1,370,329 0 0 $1,370,329 leverage Total non- N/A N/A N/A N/A volunteer leverage Other volunteer N/A N/A N/A N/A 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.

Total Number of Number of Volunteers Number of Volunteers Volunteers Proposed from Fielded to Date Remaining to be Fielded Award Male Female 117 41 25 51

Summary of Volunteer Assignments

Assignment Name Length (in Assignment Description days)

Formed and supported pyrethrum farmer groups in Iringa and Mbeya to meet the needs of Pyrethrum Company of Tanzania (PCT). Trained Diana Lilia 40.93 Business development service providers to support enterprises in pyrethrum value chain.

This assignment aims to build the capacity of financial institution staff Luis Garate 25 on the practical skills required to address the unique challenges of lending to SMEs and present international best practices for managing

SME loans so that they may change their behavior in ways that lead to an increase in SME lending in Tanzania. Also build the capacity of local banks to introduce sophisticated products and grow their trade finance business, with a focus on Small- and Medium-sized Enterprises (SMEs).

This assignment aims to build the capacity of Tanzania financial institution staff to be able to identify, assess and manage risks associated with lending to SMEs. Assignment will address identified Claude gaps at credit granting processes and present international best Nomsi 32 practices for identifying, measuring, controlling and monitoring credit Mpirat risk. Also address internal controls and operations related to credit, market and operational risk, and how to coordinate credit risk management practices between central management and field/branch staff.

This assignment aims to build the capacity of financial institution staff Mohamed 18 so that they may change their behavior in ways that lead to an Aly Zaki increase in access to capital among youth business owners.

The objective of this assignment is to support 3-5 BDSPs trained by the ENGINE Program and selected by the NAFAKA Program as they conduct credit and institutional assessments of approximately 10 NAFAKA-supported producer organizations. The expert volunteer will Janet 25 work closely with the selected ENGINE BDSPs —at first as a group, Buresh then later individually — and provide mentoring, quality assurance, guidance and ad-hoc training throughout their work to ensure that they are able to successfully accomplish the objectives of their assignment with NAFAKA.

Mickey 19.0 Expert Volunteer for LGA Institutional Architecture Assessment in McGee Zanzibar.

Kristyn 19.5 Expert Volunteer for Waste Management Policy Report Specialists in Oldendorf Iringa/Mbeya.

Kathryn 8.8 Expert Volunteer for Organizational Development Specialist in Dodson Zanzibar.

Andria 40 Peace Corps Volunteer who assisted Component 3. Fisanich

Bonita 40 Peace Corps Volunteer who assisted the communications and grants Osborn units.

ANNEX 6- SUCCESS STORIES

TWO ENGINE PARTNERS FORM COMMERCIAL PARTNERSHIP TO BUILD CAPACITY OF THE TANZANIAN BANKING SECTOR

In December 2018, two partners of the USAID Tanzania Feed the Future Enabling Growth through Investment and Enterprise Program (ENGINE) formed a commercial partnership that will much needed technical expertise to the hands of the country’s banking community.

The Tanzania Institute of Bankers (TIOB), an industry association that promotes the banking profession by providing professional banking education and skills development to bank staff in Tanzania, entered into a licensing agreement with Kentara Analytics, a US-based strategic analytics services firm that provides guidance and technical solutions to help banks and other financial institutions reduce their risk exposure. Kentara uses methods such as predictive analytics and risk-based profitability measurement to help its partners track risk- adjusted financial performance and profitability across Patrick Mususa, Executive Director, Tanzania Institute of Bankers (TIOB), speaks to business lines, leading to not only an improvement in lending reporters at the launch of the new online statistics, but also economic growth, since Kentara’s insights learning platform and financial risk modeling often suggest improved performance through increased course. lending to women-owned and youth-owned businesses.

As a mechanism for leveraging the program’s existing resources and increasing the capacity of its Tanzanian stakeholders, ENGINE mobilizes volunteer experts in support of the program’s goals and objectives. Kentara’s President and CEO, Tara Kenyon, initially came to Tanzania in 2017 as a volunteer expert, where she shared her knowledge with two Tanzanian financial institutions.

Later, in 2018, during discussions TIOB’s Executive Director Patrick Mususa and ENGINE’s Deputy Chief of Party Scott Bennett, Mususa mentioned a need for financial modeling expertise to help combat the rising issue of problem loans.

“Patrick mentioned that TIOB was interested in developing an online training course on financial modeling. I remembered that this was an area where Tara had deep expertise.” Bennett said. “We

worked to bring the two parties together, knowing that Kentara was also developing online training content.” Following a series of discussions between the parties, TIOB and Kentara finalized a commercial relationship to provide online knowledge transfer of credit risk modeling for members of TIOB. Speaking of the new partnership, Kenyon says “This is rather unique. It’s very exciting!” Mususa agreed, noting, “It was a godsend!”

The six-month pilot will begin in January 2019. Early promotion has already netted more than 60 applications. Through TIOB’s new Online Learning Platform, credit risk modeling content provided by Kentara Analytics is made available to TIOB users on-demand across all locations and devices.

This new partnership is the latest success for ENGINE where it has identified capacity-building needs in the banking industry and has met these needs through providing tailored services from professional, experienced subject matter experts in specific fields.

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.

Success Story

TWO USAID/TANZANIA FEED THE FUTURE PROJECTS TEAM UP TO SUPPORT PRODUCER ORGANIZATIONS (PO) AND BUSINESS DEVELOPMENT SERVICE PROVIDERS (BDSP).

Between November and December 2018, two USAID/Tanzania Feed the Future programs collaborated to assess 18 producer organizations (POs) in in Morogoro, Iringa, and Mbeya and Songwe using local business development service providers (BDSPs).

The selected producer organizations all work in cereals value chains and have been receiving ongoing support from the Feed the Future NAFAKA II Program. With that program’s leadership shifting its focus toward the sustainability of its impact, NAFAKA wanted to understand how well the POs were leveraging NAFAKA’s training by improving and/or expanding their service delivery to their members in areas access to agricultural market actors, finance, Good Agricultural Practice (GAP) knowledge transfer, and recordkeeping.

In discussing this need with the Deputy Chief of Party of the Feed the Future Tanzania Enabling Growth through Investment and Enterprise Program (ENGINE), it was observed that the assignment could serve as an on-the-job training opportunity for ENGINE-supported Juditha Bernard of SUGECO with women from a BDSPs who had recently capacity building NAFAKA-supported producer organization in training in a structured credit readiness JudithMorogoro.a Bernard of SUGECO with women from a methodology to help their small business NAFAKA-supported producer organization in clients qualify for loans. Morogoro.

Through a competitive process, NAFAKA selected five of these BDSPs to conduct institutional and credit assessments. To support the BDSPs in conducting the assessments, ENGINE paired them with volunteer expert Ms. Janet Buresh, an international banking and finance consultant and farmer and former teacher. Ms. Buresh led a 1½-day workshop with the BDSPs at the start of the assignment, where she led them through review and discussion of the assignment’s deliverables, their methodological approach, scheduling, and the development of data collection and reporting formats. Thereafter, Buresh spent the following two weeks shadowing the BDSPs as they met with the NAFAKA POs, monitoring progress and providing further guidance and feedback. Speaking of Janet’s support, Deo Sabokwigina, a BDSP based in

Iringa noted, “Janet did a great job as a mentor and we are pleased that she took the assignment as a learning experience.”

In the end, the activity was a success. ENGINE-supported BDSPs executed the assignment enabling them to gain valuable consulting experience and develop new business relationships while earning revenue for their respective businesses. Moreover, NAFAKA received assessments that provided critical insights that contributed to their future planning in strengthening their POs so that they can better serve their members beyond the NAFAKA program and well into the future.

“NAFAKA made a deliberate effort to work with ENGINE-supported BDSPs to review our POs while also positioning themselves to establish long-term working relationships that are mutually beneficial to the PO and BDSP for future business opportunities,” said NAFAKA Chief of Party Jim Flock. “The BDSPs, with the guidance of Ms. Buresh, provided comprehensive reports to NAFAKA allowing us understand what activities our technical teams should be concentrating moving forward, allowing us to continue strengthening our network of PO service delivery models.”

Mr. Fabian Mwiga, a service provider based in Iringa further explained, “This was a new experience and I learnt a lot of skills…. Also, I now get an opportunity to work with new clients after figuring out their challenges while doing an assignment with NAFAKA.”

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

Success Story

NETWORKING EVENT CONNECTS BENEFICIARIES FROM FIVE USAID PROGRAMS

In Mbeya City, Tanzania, micro-, small- and medium-sized enterprises (MSMEs) lack opportunities to meet, network and identify business deals with other MSMEs, agricultural input suppliers, millers, food processors, business development service providers (BDSPs), financial institutions, youth and women leaders, traders and insurance companies.

In order to build an environment where these connections thrive, five USAID-funded programs organized a business-to- business forum between 14-15 November 2018 in Mbeya City. The programs involved in the organization of the event included the Feed the Future Tanzania Enabling Growth through Investment and Enterprise Program (ENGINE), Advancing Youth, NAFAKA, Mboga na Matunda (MnM) and WARIDI. Over 130 people representing over 60 private sector organizations attended the event and used the opportunity to discuss potential business opportunities, both formally and informally. Participating in and organizing the event supports ENGINE’s mission of promoting a business-enabling Event attendees meet with ENGINE environment in Tanzania by linking MSMEs with business representatives development service providers and other private sector resources.

The forum featured formal presentations by agriculture-related industry professionals, BDSPs and financial institutions. The potential clients of these organizations quizzed the presenters with many in-depth, knowledgeable questions and many business deals were struck finalized. During the event, one grain supplier noted, “Two grain growers came up to me after one of the sessions and asked about my operations. After discussing prices and schedules, I now have two new sources. The meeting has brought new business to many of us.”

Since the event occurred in November 2018, 27 MSMEs have formally worked with agriculture input suppliers, other youth and women leaders, millers, processors and financial institutions that they met through the event. Their successes include newly- formalized partnerships, newly identified market channels for food processing identified, additional agri-business skills, access to market research on vegetables, packaging improvements, gaining business skills and developing business plans, employing new marketing strategies, and additional distribution channels. As a result of their participation in the event, BSDP participants have reported that they

have found 16 new clients and provided them with the following services: three business plans, nine marketing and promotional skills development training, two accounting and recording-keeping training, one finance training and one micro-finance training. In total, ENGINE BDSPs made business deals in excess of 30,000,000 at the end event. Attendees also expressed a desire for additional forums to better educate themselves in BDS, and to network with others to improve their operations and market opportunities. ENGINE’s participation in the organization of event is reflective of its and other implementing partner’s commitment towards building a strong private sector 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.

ENGINE SUPPORTED CAPACITY BUILDING LEADS TO SUCCESSFUL MANGO CULTIVATION BUSINESS

As a child, in lieu of playing with his friends, John Mwakitalu would opt to work in his family’s garden where he would “help the plants grow”. He was fascinated with the plants’ life cycles and wanted to learn more. In pursuit of this knowledge, John attended Sokoine University of Agriculture, Morogoro, and studied with the SUGECO Business Development Services Provider (BDSP) sponsored by the USAID-funded Feed the Future Tanzania Enabling Growth through Investment and Enterprise Program (ENGINE), whom he credits for much of his success. ENGINE works to connect BDSPs and micro, small and medium enterprises (MSMEs) to create linkages. Business development services, like John’s training, teach business Youth entrepreneur, John Mwakitalu, owner of J & J owners valuable skills and add to their overall Tree and Fruit Tree Seedling Farm capacity.

Before starting his business, John received two degrees in agriculture studies and instead of seeking traditional employment, decided to start his own business in March 2014. However, it was the skills that skills he learned from SUGECO—particularly business planning, business operations and the loan application process that really took his business to the next level. John explained, “The business plan development, record keeping, accounting and profitability that I learned from ENGINE’s training with SUGECO is what gave me the boost to success”.

John now has three full time employees and twelve seasonal, part-time employees. During the growing season, John grows four types of mango saplings and his operation produces 20,000 saplings annually with an annual income of 15,000,000 Tanzanian Shillings. John sells his mangoes all over Tanzania, but much of his business is concentrated in Dar es Salaam, Morogoro, Dodoma and the southern highlands.

John says, “Thanks to ENGINE, I have become an asset to my community. Without ENGINE, my business wouldn’t be where it is today”. He now works with other sapling suppliers, helping them to find markets for their product. As a primary component of ENGINE’s design, business development services play a key role in linking enterprises with valuable services, in order to facilitate a strong private sector.

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