Enterprise Development Programmes in Tanzania and Zambia

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Enterprise Development Programmes in Tanzania and Zambia Sida Evaluation 03/36 Enterprise Development Programmes in Tanzania and Zambia Kim Forss Mikael Lundström Oliver Saasa Fortunata Temu Department for Finance and Corporate Development Enterprise Development Programmes in Tanzania and Zambia Kim Forss Mikael Lundström Oliver Saasa Fortunata Temu Sida Evaluation 03/36 Department for Finance and Corporate Development This report is part of Sida Evaluations, a series comprising evaluations of Swedish development assistance. Sida’s other series concerned with evaluations, Sida Studies in Evaluation, concerns methodologically oriented studies commissioned by Sida. Both series are administered by the Department for Evaluation and Internal Audit, an independent department reporting directly to Sida’s Board of Directors. Reports may be ordered from: Infocenter, Sida S-105 25 Stockholm Telephone: (+46) (0)8 779 96 50 Telefax: (+46) (0)8 779 96 10 E-mail: [email protected], Reports are also available to download at: http://www.sida.se Authors: Kim Forss, Mikael Lundström, Oliver Saasa, Fortunata Temu. The views and interpretations expressed in this report are the authors’ and do not necessarily reflect those of the Swedish Inter- national Development Cooperation Agency, Sida. Sida Evaluation 03/36 Commissioned by Sida, Department for Finance and Corporate Development Copyright: Sida and the authors Registration No.: 1995-0110 Date of Final Report: September 2003 Printed by Edita Art. no. Sida3359en ISBN 91-586-8546-4 ISSN 1401–0402 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Address: S-105 25 Stockholm, Sweden. Office: Sveavägen 20, Stockholm Telephone: +46 (0)8-698 50 00. Telefax: +46 (0)8-20 88 64 Telegram: sida stockholm. Postgiro: 1 56 34-9 E-mail: [email protected]. Website: http://www.sida.se Table of Contents Executive summary ......................................................................................................................... 1 Chapter 1. Introduction................................................................................................................. 3 Background to the Enterprise Development Programmes ..................................................... 3 Purpose of the evaluation ........................................................................................................ 3 Evaluation methods................................................................................................................... 4 Guide to the reader ................................................................................................................... 5 Chapter 2. Results of the Enterprise Development Programmes ...................................... 6 Extent of the programmes outreach......................................................................................... 6 Creation of lasting business relations ...................................................................................... 6 Working with firms that are survivors ...................................................................................... 9 Productivity, quality and business development...................................................................... 13 Employment and gender .......................................................................................................... 13 Programme impact at enterprise level ..................................................................................... 17 Chapter 3. Impact of the EDP ..................................................................................................... 21 Conditions for a well-functioning private business sector. ...................................................... 21 The EDPs’ level of intervention............................................................................................... 23 Production and employment .................................................................................................... 24 Cost-effectiveness ...................................................................................................................... 25 Chapter 4. Conclusions .................................................................................................................. 27 Conceptualising the programmes ............................................................................................. 27 Dialogue and presence.............................................................................................................. 28 Selection of companies ............................................................................................................. 29 Follow-up and control ............................................................................................................... 30 Roles and responsibilities.......................................................................................................... 30 A final word ............................................................................................................................... 31 Annex 1. Terms of reference .......................................................................................................... 32 EVALUATION OF ENTERPRISE DEVELOPMENT PROGRAMMES IN TANZANIA AND ZAMBIA .......................................................................................................................... 32 1. Background........................................................................................................................ 32 2. Purpose and Scope of the Evaluation ............................................................................. 32 3. The Assignment (issues to be covered in the evaluation) ............................................... 32 Administration ................................................................................................................... 33 4. Methodology, Evaluation Team and Time Schedule ...................................................... 33 Phase I, Preparation ......................................................................................................... 33 Phase II, Field work .......................................................................................................... 33 Phase III Analysis and Draft reporting............................................................................. 33 Phase IV Final report........................................................................................................ 34 5. Reporting ........................................................................................................................... 34 Annex 2. Growth and development issues in Tanzania and Zambia ................................. 35 Growth and development issues............................................................................................... 35 The small industries sector ........................................................................................................ 39 Private sector development....................................................................................................... 42 Foreign aid, the private sector, and poverty alleviation .......................................................... 44 Annex 3. Interview guidelines ...................................................................................................... 47 Guidelines for company interviews regarding Enterprise Development Program ................ 47 A. Introduction............................................................................................................. 47 B. Company history in brief ....................................................................................... 47 C. Production ............................................................................................................... 47 D. Marketing & Sales ................................................................................................... 48 E. Personnel ................................................................................................................. 48 F. Capital supply ........................................................................................................ 49 G. Result ....................................................................................................................... 49 H. Final question ........................................................................................................ 49 Annex 4. List of companies visited and persons interviewed .............................................. 50 ENTERPRISE DEVELOPMENT PROGRAMMES IN TANZANIA AND ZAMBIA – INEC’s MANAGEMENT RESPONSE TO THE EVALUATION .......................................... 53 1. Background........................................................................................................................ 53 2. Summary of the Evaluation Results ................................................................................ 53 3. Sida’s Comments and Analysis......................................................................................... 53 The Concept ...................................................................................................................... 53 Management and Steering of the Programmes .............................................................. 54 4. Lessons Learnt ................................................................................................................... 55 Executive summary The Enterprise Development Programmes (EDP) were initiated in
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