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.

Pays/région	Thème	Période	Budget
Tanzanie	Emploi & développement économique nothemedefined Soutien commerciale & inclusion économique Politique commerciale & system de marché Création d'emplois Politique des finances Développement de petites et moyennes entreprises Dialogue social	01.07.2020 - 31.08.2027	CHF 10’200’000

Le projet en bref

Contexte	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.
Objectifs	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.
Groupes cibles	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.
Effets à moyen terme	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.
Résultats	Principaux résultats attendus: 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.
Direction/office fédéral responsable	DDC
Crédit	Coopération au développement
Partenaire de projet	Partenaire contractuel ONG internationale ou étrangère Secteur privé Organisme des Nations Unies (ONU) Other international or foreign NGO North Secteur privé étranger Nord Sectreur privé étranger Sud/Est Programme des Nations Unies pour le développement
Coordination avec d'autres projets et acteurs	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	Phase en cours Budget de la Suisse CHF 10’200’000 Budget suisse déjà attribué CHF 4’288’165
Phases du projet	Phase 1 01.07.2020 - 31.08.2027 (Phase en cours)

Détails techniques supplémentaires

Secteur selon catégorisation du Comité d'aide au développement de l'OCDE	ENTREPRISES ET AUTRES SERVICES POLITIQUE COMMERCIALE ET REGLEMENTATIONS INFRASTRUCTURE ET SERVICES SOCIAUX DIVERS PRODUCTION D’ÉNERGIE, SOURCES NON RENOUVELABLES INDUSTRIES MANUFACTURIERES INFRASTRUCTURE ET SERVICES SOCIAUX DIVERS INDUSTRIES MANUFACTURIERES
Sous-Secteur selon catégorisation du Comité d'aide au développement de l'OCDE	Business support services and institutions Politique commerciale et gestion administrative Politique de l’emploi et gestion administrative Politique des finances et gestion administrative Développement des Petites et moyennes entreprises (PME) Politique de l’emploi et gestion administrative Dialogue social Développement des Petites et moyennes entreprises (PME)
Thème transversal	Le projet contribue à améliorer le fonctionnement de l'organisation partenaire
Type d'aide	Contribution de base Mandat sans gestion de fonds Contribution à des projets ou programmes
Numéro de projet	7F10512