Innovation for Social Change

Innovation for Social Change © IIH

Switzerland promotes growth of impact-first enterprises in Tanzania through the provision of tailored technical assistance and innovative impact-linked financing (ILF) instruments. Support to enterprises is tied to their potential or proven social impact, measured against the extent of improvements in social and economic well-being among poor youths and young women. Switzerland further promotes strategic policy dialogues, paving way for systemic support to impact-first enterprises.

Land/Region	Thema	Periode	Budget
Tansania	Beschäftigung & Wirtschaftsentwicklung nothemedefined Gewerbeunterstützung & Wirtschaftszugang Handelspolitik & Marktsystem Schaffung von Arbeitsplätzen Finanzsektorpolitik KMU Förderung Sozialdialogs	01.07.2020 - 31.08.2027	CHF 10’200’000

Das Projekt in Kürze

Hintergrund	Small and Medium-sized Enterprises (SMEs) contribute roughly 40% of total employment and 35% of Tanzania’s GDP. Yet, SMEs still face many constraints including inadequate access to capital, regulatory framework, and human capital development. Consequently, Tanzania-based SMEs’ growth rate is often lower than the corresponding failure rate. Women-led SMEs are disproportionately affected, often facing more exclusion from property ownership and access to finance. Whereas the potential from youth engagement is overlooked and undersupported, despite their large population and unique capacity for innovation. Against the backdrop, the Innovation for Social Change programme seeks to support SMEs that prioritize social and economic wellbeing of youth and women – through their operations, products, and services. To achieve the above, capacity building and ILF will be deployed. The rationale behind the intervention strategy is to incentivize beneficiary SMEs to equally embed impact and financial returns as part of their business (growth) models. The Embassy of Switzerland in Tanzania can leverage Switzerland’s political pioneer role in innovative Impact-linked Financing and Private Sector Engagement (PSE) to make this programme a success.
Ziele	The overall goal is to contribute to an ecosystem, in which thriving small and medium sized impact enterprises improve the living standards of Tanzanians, especially poor youth and young women, as customers, suppliers, or employees.
Zielgruppen	Direct beneficiaries: Enterprises that prioritize positive social and economic benefits, particularly among youth and women, as part of their business models. Indirect but ultimate beneficiaries: Low-income population (especially youth and women) as customers, suppliers, or employees.
Mittelfristige Wirkungen	Access to impact capital is increased in Tanzania as a result of the Catalytic Fund and others engaged in the ecosystem. More stakeholders, particularly poor youths and young women, benefit from gainful income-generating opportunities and sustainable livelihoods. Impact-first enterprises and impact investors enjoy holistic and systematic support thanks to improvements in acts and policies, timely and accurate communication, better stakeholder coordination, and effective service delivery.
Resultate	Erwartete Resultate: 250 enterprises receive tailored support in impact identification, monitoring and management. Implementing organizations, AlphaMundi (a Swiss-headquartered impact investment firm) and Small Enterprise Assistance Funds (SEAF) have the capacity to effectively deploy Swiss pioneered ILF tools, within and beyond the ISC programme. 38 enterprises secure suitable financing to enhance social impact and grow their businesses. Tanzania’s enterprise ecosystem is enriched with awareness on the Swiss pioneered ILF tools. Tanzania’s enterprising ecosystem experiences quality and timely stakeholder dialogues, outreach events and strategic partnerships. There is overall improvement in data availability on social impact to inform policy-making.
Verantwortliche Direktion/Bundesamt	DEZA
Kreditbereich	Entwicklungszusammenarbeit
Projektpartner	Vertragspartner Internationale oder ausländische NGO Privatsektor Organisation der Vereinten Nationen (UNO) Andere internationale oder ausländische NGO Norden Ausländischer Privatsektor Norden Ausländischer Privatsektor Süden/Osten Entwicklungsprogramm der Vereinten Nationen
Koordination mit anderen Projekten und Akteuren	There are potential synergies with Aceli Africa project, which is funded by the Global Programme Food Security (GPFS). The ISC programme is also part of the “Heracles Project”, thereby contributing to SDC’s PSE guidance development. Additionally, a review for synergies with the ongoing support to Ifakara Innovation Hub will be conducted.
Budget	Laufende Phase Schweizer Beitrag CHF 10’200’000 Bereits ausgegebenes Schweizer Budget CHF 4’288’165
Projektphasen	Phase 1 01.07.2020 - 31.08.2027 (Laufende Phase)

Weitere technische Details

Sektor nach Kategorisierung des Entwicklungshilfeekomitees der OECD	BUSINESS & OTHER SERVICES HANDELSPOLITIK UND -REGULIERUNGEN OTHER SOCIAL INFRASTRUCTURE AND SERVICES BANKGESCHÄFT UND FINANZDIENSTLEISTUNGEN INDUSTRIE OTHER SOCIAL INFRASTRUCTURE AND SERVICES INDUSTRIE
Sub-Sektor nach Kategorisierung des Entwicklungshilfeekomitees der OECD	Services et institutions de soutien commerciaux Politik und Verwaltung im Handelsbereich Politik und Verwaltung im Beschäftigungsbereich Politik und Verwaltung im Finanzbereich Förderung kleiner und mittlerer Unternehmen (KMU) Politik und Verwaltung im Beschäftigungsbereich Sozialdialog Förderung kleiner und mittlerer Unternehmen (KMU)
Querschnittsthemen	Projekt unterstützt auch Verbesserungen in der Partnerorganisation
Unterstützungsform	Kernbeitrag Auftrag mit treuhänderischer Mittelverwaltung Projekt- und Programmbeitrag
Projektnummer	7F10512