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QUICK POINTS - DPG Main – 3 February 2015
Women empowerment, youth, and entrepreneurship
Dr. Donath Olomi, Chief Executive Officer, Institute of Management and Entrepreneurship
Development, presented the key issues and gaps related to youth and women entrepreneurship in
Tanzania.
The discussion emphasized on: i) the need for more tangible data especially related to youth
entrepreneurship and the opportunities to collect data through mobile phone surveys; ii) the need to
simplify the regulatory environment which currently is a great obstacle for entrepreneurship,
especially for the youth; iii) the challenge of market distortions, such as low prices for rice, tea and
sunflower oil as well as fake fertilizers and fake seeds, which discourage the informed youth to
become entrepreneurs; iv) the potential of financial institutions and community banks which are
providing capacity building to their customers; v) the need to show case good projects and sustaining
investments in projects which worked well; vi) the need to look at the broader context of women
economic empowerment and obstacles women face due to the exposure of corruption, violence as
well as the roles of women in care-taking, etc; and vii) the need for different approaches for capacity
development for entrepreneurs in the formal and informal sector.
BS update
BS DPs met with the Parliament Budget Committee to discuss the DPs requirements for
disbursements, challenges in budget implementation, and the parliament’s budget committee’s role
as an accountability institution.
DPs are preparing to meet again with GoT and continue the high level dialogue on critical issues.
AoB
Government Circular for DSA rates starting from 1 July, 2015: GoT has raised DSA rates for his Civil
Servants starting from 1 July, 2015. DPs agreed to ask the PFM WG to do further analysis and then
agree on formal response to GoT at the next DPG Main meeting to re-commit to follow the 2012
allowance guidelines.
DPG Fieldtrip: DPs were reminded that the deadline to sign up for the DPG Fieldtrip to Iringa region
from 25-27 (or 28) February is Friday 6/2.
UNDAP 2011-2016 Evaluation: The UNDAP evaluation team is currently collecting data and conducting
interviews with UN staff and partners. Initial findings of the UNDAP Evaluation, the Situation Analysis,
and the UN stakeholder perception survey, will be presented at an external stakeholders meeting on 5/3.
Upcoming event: UN Women informed the meeting that the gender country profile is expected to be
launched on the International Women’s Day on 8/3.
Next meeting: 3 March 2015
Minutes of DPG Main
3 February 2015
SWEDEN/FINLAND EMBASSY CONFERENCE ROOM
1. Welcome and adoption of agenda and approval of DPG December 2014 minutes
DPG Co-Chair, Ms Maria van Berlekom, opened the meeting and welcomed Dr. Donath Olomi, Chief
Executive Officer, Institute of Management and Entrepreneurship Development (IMED).
The agenda was adopted and the minutes of the DPG January 2015 meeting were approved, with a small
amendment regarding the BS update.
2. Special Session: Women empowerment, youth, and entrepreneurship
Dr. Donath Olomi, Chief Executive Officer, Institute of Management and Entrepreneurship Development,
presented the key issues and gaps related to youth and women entrepreneurship in Tanzania. The 2012
Micro, Small, and Medium Enterprises (MSMEs) survey report highlighted i) that women access more
informal financial sources and less formal financial sources; ii) that the biggest challenge women owned
enterprises face is limited awareness, education and capacity; iii) that 75% of women owned enterprises
have 1 employee; iv) that 47% of MEMEs owners are less than 35 years; and that v) there is little
knowledge and analysis on how youth are engaged in owning and running enterprises.
With approximately 1 million joining the labour market annually and limited formal employment
opportunities, youth unemployment is increasing. While policies and initiatives are in place to address
youth unemployment, policies often remain unimplemented (e.g. entrepreneurship curricula in schools,
etc.) and existing initiatives may not always be adequate and/or are not being scaled-up for a greater
impact. In addition, the business environment is characterized by inefficient infrastructure and serious
market distortions. Barriers for women entrepreneurship are, amongst others, related to gaps in the legal
and regulatory system, which does not recognize the actual environment for women appropriately, access
to assets, market and technology, access to gender-sensitive business development services and financial
services; and effective leadership, promotion and advocacy for women owned businesses.
Key issues which need to be addressed to improve the environment for women and young entrepreneurs
are: i) to align legal and regulatory framework further; ii) to improve quality and coverage of financial
services; iii) to improve the provision of business development services increase to the poorest which
become entrepreneurs out of necessity; and iv) to improve advocacy associations for both women and
youth.
Discussion
 DPs thanked Dr. Olomi for the short but comprehensive presentation and noted that while the overall
policy and regulatory systems need to be simplified, providing an obstacle for entrepreneurs,
especially women and youth, the greatest gaps are related to the implementation of legal and
regulatory frameworks.
 Given the lack of tangible data and that the mean age in Tanzania is 17, the question was raised of
how this key population can best be targeted. IMED emphasized the need for more tangible data
especially related to youth entrepreneurship and the opportunities to collect data through mobile
phone surveys. Related to the data used in the presentation held, it was further clarified that the data
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on the number of people entering the labour marker annually is based on estimated of how many
people would graduate looking at school enrollment rates.
DPs raised the question of how to best find and support women entrepreneurs. IMED offered support
to facilitate reaching out to women entrepreneurs, amongst other, through organizations like SIDO
and a USAID supported project targeting women entrepreneurs. It was further emphasized that it is
important to show case role models of successful entrepreneurs (the ‘gazelles’) as well as of successful
projects which could be scaled-up. While DPs specifically focus on women, traditionally programs
supporting private sector development do not consider the age of the targeted beneficiaries.
Regarding the business environment, it was clarified that progress is slow not only due to inefficient
infrastructure, but also due to serious market distortions. For example, the market prices for rice, tea
and sunflower oil have been low during the last two years. At the same time the market was distorted
with fake inputs, such as fake fertilizers and fake seeds. This has had dis-incentivizing effects,
especially on young people. It was further noted that an important by-product on the work done on
anti-corruption is that it will encourage people to become entrepreneurs.
The potential of financial institutions and community banks which are providing capacity building to
their customers in addition to financial services was emphasized. A number of banks have separate
foundations that provide capacity development to customers with a positive effect as this allows for
a greater scale of people to be reached enhancing sustainability. In addition, it is beneficial as the
banks have a stake in their customers becoming successful as entrepreneurs. Similarly, community
banks are more and more involved in providing credit and extension services in partnership with other
providers.
DPs noted that studies show that if women have access to finance, assets, etc., they usually
outperform men. However, if a women owned business is successful, the male counterpart often take
over showing that also when women move into success they remain vulnerable. To support successful
female entrepreneurs, IMED emphasized that education and leadership skills are key. Businesses have
to grow together with the owner. However, may businesses grow horizontally rather than vertically
due to a lack of leadership. It was further clarified that most women owned enterprises are
concentrated in informal, low income, and low growth activities. Amongst other, these include: food
vending, food processing, tailoring, and pottery. Entry barriers especially for female entrepreneurs
are high in the processing industry which is more complex with longer value-chains.
The need to look at the broader context of women economic empowerment and obstacles women
face due to the exposure of corruption, violence as well as the roles of women in care-taking, was
highlighted. It was reminded that these obstacles are not only related to the capacity of women, but
to larger social barriers and power relations which need to be addressed.
Looking at the gaps related to working in the informal sector, such as having a legal framework, access
to finance, access to training etc., the question was raised if it is a disadvantage for women to stay in
the informal sector. It was emphasized that while it is a dominant to think that the shift from informal
to the formal sector is beneficial, it should not be a problem to start in the informal sector and to
formalize once the business is growing.
It was clarified that IMED is an institution which offers trainings to entrepreneurs and organizations
dealing with entrepreneurs as well as research and consulting services.
Looking at the changing environment of Tanzanian entrepreneurs through foreign entrepreneurs
coming in and increasing the competitive environment, it was noted that this would usually increase
innovation and have a positive effect, however, that the enforcement of the regularity framework is
key.
DPs raised the question of how youth and women were put forward in the Big Results Now Labs on
Strengthening the Business Environment. IMED emphasized that issues of youth and women were not
explicitly addressed, but are within the six priority areas. If measures within the six priority areas are
properly addresses, the results will benefit youth and women entrepreneurship. IMED further noted
that the Private Sector would like to be involved further in the implementation of the BRN initiative
on strengthening the business environment. In addition, it is not clear what will happen with the BRN
initiative after the elections. It was clarified that the business environment lab is housed within the
President’s Office/PDB with several institutions being responsible for the individual key areas, for
example a Ministerial Delivery Unit under the Ministry of Justice is responsible for anti-corruption and
enforcement of laws, etc.
3. Matters Arising
a. BS update
BS DPs met with the Parliament Budget Committee to discuss the DPs requirements for disbursements,
challenges in budget implementation, and the parliament’s budget committee’s role as an accountability
institution. It was expected that the parliament would have a discussion on IPTL during the ongoing bunge
sessions, however this will not happen. At the same time, progress can be seen with regard to the
implementation of the parliament resolution on IPTL. Most recently the following actions have been
taken: the reshuffle of the Cabinet, the resignation of the Minister for Energy and Minerals, the change of
the parliamentary committees chair persons, the change of the TANESCO board, as well as the initiation
of an investigation of two judges by the judiciary committee formed by the chief of justice.
DPs are preparing to meet again with GoT and continue the high level dialogue on critical issues. In
addition, the BS Chair is discussion bilaterally with BS DPs to get a better sense of everyone’s requirements
and timelines. Since the Annual National Policy Dialogue has not taken place, it is being considered to
move ahead with a separate, more closed door Budget Support Annual Review.
4. AoB
a. Government Circular for DSA rates starting from 1 July, 2015
The government has issues a revised schedule on per diems, raising the DSA rates for his civil servants for
national travel starting from 1 July, 2015 with consideration of rise in life expenses to cover travels in the
country. The GoT DSA rates include accommodation, local transport, meals, etc.
In 2011, the DPG had engaged in extensive consultations and reached an agreement on the following
principles for DP financing of allowances laid out in the 2012 allowance guide:
i.
To follow GoT rates for local travel and DSA
ii.
To follow the most cost effective rates from either GoT or UN/respective DP for international
travel and DSA
iii.
To support training initiatives of civil servants as relevant for projects/programs.
iv.
To exclude financing of sitting allowances, salaries, salary top-ups and honoraria to Civil Servants
and Officials, including parallel PIUs.
DPs noted that most planning of activities for the FY 2015/16 is based on the previous DSA rates. As a
consequence, local Government and several other institutions may not be able to afford implementing
the new rates starting in July 2015.
Moving forward, DPs suggested to ask the PFM WG to do further analysis and then agree on formal
response to GoT at the next DPG Main meeting. The formal response would be to restate DPs commitment
to follow the 2012 allowance guidelines, agreeing to use the new DSA rates. DPs would also note in the
response would also express the concern that the change in DSA rates would affect ongoing commitments
which will need to be budgeted to comply with the new DSA rates. At the same time this occasion should
be used for DPs to revisit projects and programs to ensure that all DPs stick at least to the minimum
guidelines which were agreed upon. It was emphasized that DPs should not compete with each other but
help each other to adhere to the principles which were agreed upon and to make sure that the common
approach will continue to make a difference.
It was clarified that Government did not consult DPs on the increase of GoT DSA rates and that there has
not been an agreement that this would need to be done.
It was further proposed to share the study by Norad ‘Hunting for per-diems’ from 2012 and the AfDB
working paper on ‘Uses and Abuses of Per-diems in Africa: A Political Economy of Travel Allowances’ from
2014 with the DPG.
Way forward
 The PFM WG to do further analysis on the increase of DSA rates.
 The DPG Main meeting to agree on whether a formal response should be send to POPSM to restate
DPs commitment to follow the 2012 allowance guidelines.
b. DPG Fieldtrip
The draft program and information on the logistics for the DPG Fieldtrip to Iringa region from 25-27 (or
28) February have been circulated. DPs were reminded that the deadline to sign up for the trip is Friday
6/2.
c. UNDAP 2011 – 2016 Evaluation
The UNDAP Evaluation team is currently collecting data and conducting interviews with UN staff and partners.
On March 5, the initial findings of three studies, namely the UNDAP Evaluation, the Situation Analysis, and
the UN stakeholder perception survey, will be presented at an external stakeholders meeting. The analysis
and recommnedations from the studies and the discussion at the stakeholder meeting will feed into the
formulation of the UNDAP successor.
d. Upcoming event:
UN Women informed the meeting that the gender country profile is expected to be launched on the
International Women’s Day on 8/3. A workshop on this will be held leading up to international women’s
day.
5. Set date for next meeting:
Tuesday, 3 March 2015 (10:00-12:00)