BEST – ACBEST – AC..

the Advocacy Component

Ministry of Industries, Trade & Marketing and

Private Sector Development Partners

1 March 2012

the BEST-AC projectthe BEST-AC project

• initially 5th component of BEST programme

• private sector driven Grant Fund

• 60 advocacy projects supported to date

• phase 1: 2004 – 2008

• phase 2: 2009 – 2013

• donors: Denmark, Sweden, UK, Netherlands

key targetskey targets

• enhance private sector competence to effectively dialogue with government for a more inviting and enabling business environment

• support private sector participation in national frameworks to reform the business environment e.g. RoadMap

eligible organisationseligible organisations

• Chambers of Commerce - Industry - Agriculture

national - regional - district

• economic sector membership associations

• producer associations, cooperations or groups

• women & youth support organisations (economic focus)

• civil society organisations supporting private sector

vehicles of achievementvehicles of achievement

• grants to support dialogue with government with viable evidence-based arguments

• grants to enhance capacity and competence of private sector membership organisations

• capacity-building to trainers & consultants in advocacy and project management skills

• support for improved business journalism and business advocacy reporting

• means: surveys, research, training, coaching

type type of projectsof projects• government policy and macro-economy

• research and private–public dialogue

• legislative and regulatory frameworks

• infrastructure - power, water, telecoms

• access to finance

• institutional support to PSOs

• skills training to PSOs and to consultants

• media sector – business & fiscal journalism

examexample of ACT projectple of ACT projectAgricultural Council of Tanzania

lack of attractive incentives in agriculture

• agriculture remains mostly traditional, peasant-based, characterized by low output

• low flexibility and slow adjustment to local, regional and global market demands

GDP low, due to dominance agro-sector (70%)

low value addition, such as food processingexport opportunities not fully utilized

results ACT projectresults ACT project

• research findings and stakeholders recommended a set of agric incentives

• citing best practice in other countries

positive reception of report by government

in 2010/2011 govt removed 8 types of taxes, duties and levies in agric sector

in 2010/2011 govt introduced 5 non-tax incentives in agric sector

risk for this ACT successrisk for this ACT success

• government unexpectedly reintroduced the Business Licenses Act in 2011

• as a threshold in formalizing businesses and in terms of cost & administrative burden this has yet unspecified consequences

ACT, HAT and VIBINDO are currently working on measures to counter a negative impact

examexample of TANEXA projectple of TANEXA projectTanzania Exporters Association

Tanzanian SMEs have poor access to

credit and export guarantee schemes

– challenging conditions for access to credit– slow, inefficient processing of credits

SMEs starved of operational capital export opportunities not fully utilized

results of TANEXA projectresults of TANEXA projectwork in progress

• research has exposed root causes • citing best practice in other countries

positive reception of report by government

broad consensus obtained joint private - public sector committee preparation of proposal for new scheme

• ACT : farm-gate cess / subsidized agricultural inputs

• ATE : skills development levy

• CTI : cost of power failure

• HAT : licensing fees

• RULU Arts : copyright enforcement

• TAMPA : regulatory environment in dairy sector

• TCCIA-Arusha : cross-border trade

• ZACPO : liberalization of clove market

other examples of projectsother examples of projects

officesofficeslocated at 3rd floor of

TPSF Private Sector House1288 Mwaya Road

PO Box 6983Dar es Salaam

(022) 260 1168info@best-ac.org

www.best-ac.org

thank youthank you