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Promoting Private Sector Development in Tanzania

The four-year USAID-funded Private Enterprise Support Activity (PESA) was implemented by Development Alternatives, Inc. (DAI) under the Rural and Agricultural Incomes with a Sustainable Environment (RAISE) project. As a subcontractor to DAI, Abt Global provided a long-term technical advisor (project coordinator) for PESA. The project was tasked with fulfilling USAID/Tanzania Mission strategic objective 9 — to increase micro- and small enterprises (MSE) participation in the economy — and was implemented through seven operative activity areas:
  • Strengthening Business Associations
  • Promoting Public-Private Sector Policy Dialogue
  • Strengthening Capacity of Selected Government Agencies
  • Establishing Market Linkages for Private Enterprise
  • Making Business and Market Information Available
  • Increasing Business and Entrepreneurial Skills
  • The PESA Results Tracking System (including those of SO9 partners)
PESA operated across the six-region area of Tanga, Morogoro, Iringa, Mbeya, Ruvuma and Rukwa, with the primary goal of the facilitating self-sustaining capacity in producer organizations and their membership for the planning and implementation of successful self-management.  This involved capacity-building in management, planning, policy, production and post-harvest handling practices, service support, and marketing.  The secondary goal of the project was to help create an enabling environment for MSEs, in particular for those within the selected commodity value-chains. The project took two complementary approaches:
  • Facilitating integrated subsector development around critical mass agricultural commodity production areas
  • Contributing to the improvement of policy and an enabling environment for private enterprise development
The PESA project supported 19 existing associations and farmer networks in Mbeya and created six farmers associations and one processor's association in Rukwa with a total of 7,968 members (out of about 21,000 in all six project regions).  PESA also conducted strategic planning workshops for all 25 producer organizations and networks, one processors association, two apex associations and 2 district stakeholder alliances and facilitated dialogue amongst members of subsector alliances, including participation of private and public sector stakeholders.  The project conducted subsector studies for horticulture and sunflower in Morogoro, Iringa, Mbeya, and Rukwa, introduced a new variety of sunflower seed which increased yields from an average of 280 kg per acre in 2005 to an estimated 500 kg per acre in 2006, and facilitated sunflower marketing trips to Zambia resulting in one contract. Two rice marketing trips to Zambia and Malawi identified potential buyers of up to $9 million of rice grown in Mbeya. PESA conducted a total of 14 forums for policy dialogue with participants from the private sector, development organizations and GOT representatives, facilitated dialogue on the standardization of weights and measures and the establishment of three market centers in Mbeya, and facilitated the registration of four SACCOS (savings and credit co-operative societies) in Mbeya (serving 1752 members). The project trained 1588 farmers in production and management techniques, provided business and marketing skills training to 6976 farmers and entrepreneurs, and provided overall training to about 14,000 MSEs, of which 34 percent were owned and managed by women.
Sub-Saharan Africa