USAID-Tanzania RFI-621-EG-21-DA01.pdf

Request for Information (RFI) Number: RFI-621-EG-21-DA01 Issuance Date: August 12, 2021 Response Due Date and Time: August 26, 2021 17:00 (EAT)

Dear Interested Parties:

The United States Agency for International Development (USAID) Mission in Dar es Salaam, Tanzania posts this Request for Information (RFI) to seek information/input/comments/feedback from capable and interested organizations for an upcoming activity designed to increase economic opportunities for youth by strengthening the capacity of private sector associations/organizations to advocate for the implementation of policies and provide support services that are beneficial and responsive to the needs of youth entrepreneurs, startups, and businesses in the agricultural sector in Tanzania.

The purpose of this RFI is to: 1) solicit feedback on the attached draft concept; 2) identify qualified organizations capable of implementing the program; and 3) identify potential areas of engagement with the private sector and other key stakeholders under this activity.

The attached concept document presents the draft objectives and expected results of the activity. The level of funding allocated for this activity is expected to be $7-$12 million over a four to five year implementation period.

This RFI is not a Request for Application (RFA)/Request for Proposal (RFP) or Notice of Funding Opportunity and in no way commits USAID to issue an RFA/RFP or to make an award. Please note that responding to this RFI will not give any advantage to or preclude any organization or individual from any solicitation that may be subsequently issued, as any/all comments received will be strictly for information gathering purposes only. USAID will not pay for any costs associated with responding to this RFI. Information received in response to this RFI shall become the property of USAID; therefore, information that cannot be shared publicly should not be sent.

Responses to this RFI must be submitted by email to usaidtzco@usaid.gov and Anna Lugenge (alugenge@usaid.gov), no later than the date and time shown above. When responding, please include RFI-621-EG-21-DA01 in the email subject line. Responders will not receive individualized feedback. All inquiries concerning this RFI must be directed only to the email addresses identified above. Hard copy submissions will not be accepted, nor will phone inquiries be entertained.

We look forward to receiving your comments.

Best Regards, David Arnett Contracting/Agreement Officer mailto:usaidtzco@usaid.gov

RESPONSE REQUIREMENTS

USAID/Tanzania is interested in receiving feedback on its proposed activity to increase economic opportunities for youth by strengthening the capacity of private sector associations/organizations to advocate for implementation of policies and provide support services that are beneficial and responsive to the needs of youth entrepreneurs, startups, and businesses, particularly in Tanzania’s agricultural sector. USAID encourages responses to this RFI from private sector companies and associations, youth organizations, government representatives, and other interested parties.

USAID is also interested in learning about local, regional, and/or international organizations that may be interested in applying to implement this activity, if it is awarded.

Please do not submit any documents or information beyond what is requested below, and please adhere to the page limits mentioned.

1. Cover page, not to exceed one (1) page, that includes:

a. Your association/organization name and address.

b. Point of contact name and contact information.

c. Brief description of your organization’s work or purpose

2. Comments on USAID’s proposed activity design, not to exceed two (2) pages. USAID is interested in feedback on the following:

a. The development hypothesis, including the purpose, objectives, expected results, activities, and/or indicators. Do the objectives contribute to addressing the stated problem? Are the expected activities and results realistic and appropriate? Are the indicators realistic and appropriate?

b. USAID is interested to understand if, by strengthening the ability of private sector associations to advocate for implementation of policies that would benefit private sector youth and providing access to support services that youth entrepreneurs, startups, and businesses need, this intervention has the potential to create economic opportunities for youth (ages 15 to 35). Are there other critical business barriers for youth that could be addressed through private sector associations/organizations?

c. This intervention would strengthen relationships between the private sector, youth advocates, government, and other key stakeholders engaged in improving the enabling environment and strengthening service provision for youth entrepreneurships, startups, and businesses. Are there best practices for engaging with the private sector, youth, and/or government that should be included in this activity? Are there existing virtual platforms that help youth connect, share resources, and engage with private sector services and financing that this activity may be able to utilize?

d. Other comments are also welcome. This is not a formal question period; therefore, USAID will not be providing responses to comments on the proposed activity design. All comments will merely serve to inform USAID.

Organizations/associations that are interested in participating in this activity, if it is funded, are requested to provide the following additional information. Please note that this RFI does not commit USAID to issuing any RFP/RFA or other grant or award.

3. Statement of interest in participating in this activity, not to exceed one (1) page.

USAID is interested in learning about local, regional, or international organizations that may be able to work with USAID to implement this activity, if USAID does issue an RFA/RFP. If your organization is interested in working with USAID to implement this activity, please briefly describe your organization’s experience with building the capacity of private sector associations, collecting data on policy implementation, advocating for policy implementation, and/or increasing youth awareness of and access to business development services, non-traditional financing opportunities, innovation hubs, market research, or other areas of technical expertise relevant to the objectives of this activity. USAID may allocate some amount of funds for this activity for Grants. Interested parties should explain how grant funds will be used to support the activity objectives.

Please also provide a brief description of your organization’s legal registration status in Tanzania.

If your organization is not currently registered in Tanzania, please describe any proposed partnership with a Tanzanian organization.

4. Organizational work history, not to exceed one (1) page.

Please provide the following information about relevant projects that your organization has implemented in the past, in the following format:

Donor/Funder Name

Location of Project

Time Period of Project Brief Description of your activities and results

No other documents or information is requested at this time. USAID asks respondents to not send any additional information other than what is requested above and to adhere to the page limits mentioned.

BACKGROUND: Challenges and Opportunities

Long seen as a beacon of stability, progress, and potential on the African continent, Tanzania remains an optimistic nation, with a post-independence history known for its rare and renowned blend of pluralism, unity, and inclusivity. Yet, like much of the developing world, many Tanzanians, particularly youth in rural areas, are still unable to pursue or achieve their aspirations as parents, breadwinners, and citizens.

According to the World Bank, Tanzania sustained relatively high economic growth over the last decade prior to 2018, averaging 6–7 percent a year. While this overall growth led to a reduction in the national poverty rate,1 the absolute number of poor citizens has not declined due to offsetting population growth.2 Even prior to the global economic downturn caused by COVID-19, Tanzania’s economic growth had slowed considerably.

Both the Government of Tanzania’s (GOT’s) Agriculture Sector Development Programme II (ASDP II) and USAID/Tanzania’s Country Development Cooperation Strategy (CDCS)3 call for deepening and broadening investments in economic growth. The ASDP II argues that, after 15 years of national growth, not much has changed in terms of rural poverty rates in Tanzania.4 USAID/Tanzania’s CDCS Development Objectives 2 and 3 (DO2 and DO3) call for economic opportunities to be increased (IR 2.2) and for the enabling environment for private sector and civil society organizations to be enhanced (IR 3.2), respectively.

USAID/Tanzania’s CDCS also emphasizes the critical importance of youth, including calls for increasing the empowerment, productivity, and engagement of Tanzanians aged 15-35.

The average Tanzanian is 17.5 years old, and 44 percent of the population is under the age of 15. While the official youth unemployment rate is only four percent, this does not account for those who are underemployed or discouraged workers who have left the workforce.5 Recent analysis shows that the number of formal sector jobs created annually has decreased, with the number of new, private sector jobs a third of what it was in 2013.6 With almost 800,000 new entrants to the workforce every year, and only a small percentage of them able to find formal employment, it is vital to support youth in identifying, creating, linking and obtaining business and employment opportunities. Tanzanian private sector associations are not currently able to effectively promote and support economic opportunities for youth because many associations are in a weakened state, due to factors such as lack of access and ability to analyze market and policy data and diminished revenue streams from membership fees as member businesses are struggling to break even with the pressures of aggressive tax collection, a poor business climate, and the economic disruptions from the COVID pandemic.

This activity is designed to work with private sector associations to improve the business enabling environment and expand economic opportunities for youth by removing obstacles and catalyzing private sector investments in economic growth among young entrepreneurs, youth-led startups, and existing youth-led businesses, particularly within the agriculture sector, which supplies about two-thirds of all jobs in Tanzania -- and represents one of the most promising opportunities for youth employment.

6 Tanzania in Figures 2018, National Bureau of Statistics, 2018.

Unemployment, Youth Total, World Bank, 2019.

4 ASDP II Programme, May 2016, p 1.

3 USAID/Tanzania Country Development Cooperation Strategy, 2020- 2025.

2 https://www.worldbank.org/en/country/tanzania/overview.

1 The most recent Government of Tanzania (GOT) Household Budget Survey notes that poverty dropped from 28.2% in 2011/2012 to 26.4% in 2017/18, before the drop in growth post 2018.

USAID can support private sector associations to strategically rebuild, strengthen operations, and improve service provision for youth entrepreneurs, startups, and businesses.

Building the capacity of private sector associations to advocate for implementation of pro-business and pro-youth policies and deliver high-quality services needed by youth in the private sector will facilitate stronger market systems and more resilient, inclusive youth-led enterprises. Improvements to the business enabling environment for youth should also have broader ripple effects across the Tanzanian private sector, benefiting all businesses and giving them a better chance to grow and thrive. With the new GOT administration's articulated vision of working in partnership with the private sector, this activity has come at an opportune time, as there is scope to engage with government and other stakeholders on the key issues affecting Tanzania’s private sector. In addition, strengthening private sector associations’ capacity to be a driving force for policy implementation and improved service delivery will ensure that they can continue in this role after the activity ends.

RATIONALE FOR ACTIVITY

USAID/Tanzania conducted several assessments in 2019 and 2020, including an Inclusive Growth Diagnostic (IGD), a youth assessment, a trade assessment, and a Private Sector Landscape Assessment (PSLA). These assessments help us prioritize focus areas, inform our approach, offer solutions, and suggest partnerships to improve the business enabling environment and private sector engagement in Tanzania, in a way that maximizes economic opportunities for youth. The assessments found that youth entrepreneurs and small businesses struggle to access finance, there are not sufficient business development services in the economy or small businesses cannot access them, and the critical binding constraints to youth participation in the private sector are a disadvantageous trade policy and a cumbersome tax administration.

STATEMENT OF WORK

Targeted Geography, Beneficiaries and Interventions:

In line with USAID/Tanzania’s CDCS, this activity will focus on the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Zanzibar. However, as a core component of this activity is policy advocacy and work with private sector associations, the activity will include a national component as well.

Interventions will prioritize inclusion and expanded opportunities for private sector youth including youth entrepreneurs, startups, and businesses. Beneficiaries may include: private sector associations;

youth entrepreneurs, startups, and businesses; business development service providers; market research firms; financing providers (particularly non-traditional); and public sector actors, such as the GOT and local government authorities. Based on organizational capacity and member needs assessments, capacity building services provided to private sector associations or other organizations will be selected by the offeror based on existing and new analysis, available economic and geographic opportunities, and the offeror’s strategy for strengthening the capacity of private sector associations/organizations to support private sector youth in the agriculture sector. Final selection of beneficiaries will be approved by

USAID.

Theory of Change and Development Hypothesis:

In order to improve the enabling environment for the private sector and increase economic opportunities, particularly for youth, USAID will work together with Tanzania’s private sector, youth institutions/organizations, and the government to seek solutions. As private sector actors become more capable, engaged, and resilient partners in Tanzania’s development and demonstrably advance their interests in youth entrepreneurs, startups, and businesses, future generations will benefit from stronger institutional and governance frameworks and more developed market systems that advance and reflect their aspirations.

If private sector associations strengthen their ability to collect, analyze, and present evidence and successfully encourage policy-makers to implement policies that serve the interests of the private sector, and private sector youth have improved information and access to business development services, financing opportunities (traditional, non-traditional, and government schemes), market data, and other critical services, then businesses (particularly those led by youth) will become stronger, more resilient, and more competitive, resulting in increased economic and employment opportunities for youth.

Purpose, Objectives, Results, Activities, and Indicators:

Purpose: Increase economic opportunities for youth by improving the business enabling environment for youth entrepreneurs, startups, and businesses, particularly within the agriculture sector.

Objective 1: Strengthen select private sector associations/organization’s capacity to advocate for implementation/enforcement of policies that support youth entrepreneurs, startups, and businesses, particularly within the agriculture sector.

Expected Results:

1. Increased awareness of government policies that are most relevant to the private sector and youth.

2. Improved implementation/enforcement of government policies that are most relevant to private sector youth.

3. Improved entrepreneurial environment for youth

Illustrative Indicators

1. CBLD-9: Percent of USG-assisted organizations with improved performance.

2. Percent of Objective 1 action-plans co-funded with association resources.

3. Number of youth participants/youth-led organizations in meetings, webinars, and other events convened by private sector associations with business service providers, financers, innovation hubs, market research firms, government representatives, etc. (participants disaggregated by sex)

4. Number of key policies in various stages of implementation as a result of USG assistance (Phases:

policy identified/evidence collected/advocacy launched/improved implementation/full implementation).

5. (EG 5.1-19) Value (in USD) of investment associated with USG assistance to improve the business enabling environment.

6. Additional indicators will be developed based on which private sector youth enabling policies are prioritized by the activity. Such indicators could include “Number of new youth-led businesses registered in the reporting period” and “Percent change in number of new youth-led businesses registered compared to the same period twelve months ago.”

Objective 2: Partner with private sector associations to establish systems/platforms that inform and link private sector youth to critical services including business development services, financing opportunities, relevant market data, and other services that benefit private sector youth, particularly within the agriculture sector.

Expected Results:

1. Increased use by private sector youth of business development services.

2. Increased private sector youth awareness of and access to financing opportunities, including non-traditional financing (e.g. angel investors, venture capitalists, diaspora, crowdfunding platforms) and government schemes (e.g. National Economic Empowerment Council of Tanzania, Women, Youth, and People with Disabilities Fund).

3. Increased availability of accurate and timely market data and analysis that is relevant and accessible to youth entrepreneurs, startups, and businesses.

4. Increased youth membership in private sector associations.

5. Online platform established (with sustainability plan), providing relevant market system information, and linking youth to a variety of services, including business development services, innovation hubs, financing opportunities and relevant market data.

Illustrative Indicators (disaggregated by age and sex, where applicable)

1. Percent of Objective 2 action-plan co-funded with association resources.

2. Number of unique users of online platform linking private sector youth to business service and financing opportunities (disaggregated by user engagement metrics such as page views per session, session duration, average time on page, traffic sources, device sources, interactions per visit, and exit pages).

3. Number of youth participants/youth-led organizations representatives in meetings, webinars, and other events convened by private sector associations with business service providers, financers, innovation hubs, market research firms, government representatives, etc.

4. Percent change in youth membership in select private sector associations.

5. Percent change in youth access to finance, business development services, innovation hubs, etc.

among members of private sector associations supported by USAID.

6. Percent change in sales from youth by business development service providers registered on the platform (or as a result of awareness from platform).

7. Percent change in finance accessed by youth as a result of awareness from the platform

(disaggregated by traditional, non-traditional, and government schemes).

8. Value of finance accessed by youth as a result of awareness from the platform (disaggregated by traditional, non-traditional, and government schemes.)

9. (EG 2.12) Number of private sector enterprises with increased access to finance due to USG assistance.

Technical Approach:

The intervention should be implemented with an emphasis on the following approaches:

Market systems approach. Identify root cause constraints that inhibit competitiveness, resilience, or inclusion within a particular sector, industry, or economy -- and work with multiple stakeholders to facilitate solution design and implementation. A market systems approach examines the roles of private and public sector actors, their relationships, and the formal and informal rules that govern how they collaborate, coordinate, and compete for the production and consumption of products and services. It also encourages local ownership and strengthened capacities, both of which foster the likelihood of longer-term sustainability. Learn more about USAID’s market systems approach here:

https://www.marketlinks.org/resources/framework-inclusive-market-system-development

Private Sector Engagement (PSE). Each country must lead its own Journey to Self-Reliance, defined as its ability to plan, finance, and implement solutions to its own development challenges. Engage the private sector to address challenges, alongside host-country governments and civil society, to accelerate self-reliance. Through PSE—and the market-based approaches it leverages— USAID and our partners can support countries in building the requisite skills, resources, knowledge, local institutions, and incentives that enable local systems and markets to become self- sustaining. With a vested interest in sustaining outcomes over the long term, a strong local private sector is an important pillar of countries’ self-reliance. Learn more about USAID’s Private Sector Engagement approach here:

https://www.usaid.gov/work-usaid/private-sector-engagement

Collaboration, learning and adaptation. Enable and promote genuine partnerships between actors at all stages of the activity, including during initial selection of associations through an open and competitive process, assessment and refinement of private sector youth needs, work plan development, implementation, adaptation, and evaluation. Build in performance milestones and routine reflection on “what is working” and “what is not.” Incorporate monitoring processes with quick feedback loops that generate iterative learning used to adjust activities in real-time and track progress in achieving objectives. Learn more about USAID’s collaboration, learning, and adaptation approach here:

https://usaidlearninglab.org/qrg/understanding-cla-0

Local Solutions. Consider the functions of broader local systems to which targeted individuals and organizations contribute, including encouraging that diverse citizen voices contribute to decision making, that development efforts are monitored, and that learning about development in the local context is fed back to help make local systems more adaptive. Decisions about whether and how to strengthen the capacity of local actors, as well as whether and how to engage those actors in implementing our programs, should derive from the understanding of the local system captured in the project design and updated through ongoing learning in implementation. Learn more about USAID’s Local Solutions approach here: https://www.usaid.gov/sites/default/files/documents/1870/LocalSystemsFramework.pdf

Human and Institutional Capacity Development (HICD). Shift thinking about capacity development from a single point-in-time, one dimensional approach to a systems-thinking process. Identify and address the self-prioritized systemic needs of organizational beneficiaries to ensure that capacity development support is relevant to the organization, enjoys broad organizational support and buy-in, and furthers the organization’s purpose. Learn more about USAID’s HICD approach here:

https://pdf.usaid.gov/pdf_docs/PNADW783.pdf https://www.marketlinks.org/resources/framework-inclusive-market-system-development https://www.usaid.gov/work-usaid/private-sector-engagement https://usaidlearninglab.org/qrg/understanding-cla-0 https://www.usaid.gov/sites/default/files/documents/1870/LocalSystemsFramework.pdf https://pdf.usaid.gov/pdf_docs/PNADW783.pdf