Operationalization of UNIDO’s new mandate Partnerships for ISID Operationalization of UNIDO’s new mandate

Development and expansion of UNIDO’s partnership Approach “To achieve inclusive and sustainable industrial development for our member states (…) we need to develop stronger partnerships to make our development impact even bigger. This means further expanding strategic partnerships” 1

WHY PARTNERSHIP (1) Context Lima Declaration: ISID SDGs: The proposed goal 9 DG's vision on partnerships with DFIs and the private sector DFIs' positive stance on supporting industrial development NGOs and Private sector's growing interest in joining forces for development Emergence of South-South development cooperation as complementary to the traditional North-South SDG 17: Revitalize global partnerships for sustainable development

WHY PARTNERSHIP (2) Enhancing the value of UNIDO membership Opportunities Enhancing the value of UNIDO membership Improving both internal and external coordination on partnerships with DFIs , NGOs and the private sector to maximize development impact Increasing the impact and visibility of traditional TC Scaling-up success stories on development partnerships

What does PRM do? DGB 01/2014 and DG info note: Functions of PRM DGB 01/2014 and DG info note: EPU: GEF, GCF, GIP, PAGE CPU: PCPs, DFIs, business/industry RMU: SAP/PPM, TC guidelines, monitoring & reporting SSTIC/BRICS Better internal and external coordination on partnerships Greater synergies between UNIDO and partner interventions Improved monitoring and reporting Value-addition of PRM

Development and expansion of UNIDO’s partnership approach Partnerships are not new to UNIDO. UNIDO always developed and maintained partnerships with Governments, other UN agencies and donors; The 1st ISID Forum identified Industrial Parks as a promising tool for achieving ISID. Industrial Zones require large public and private investments to be successfully implemented; The new partnership approach is putting more emphasis on also including partnerships with the private sector and development financial institutions (DFIs), as well as NGOs; Through the Programme for Country Partnership framework, UNIDO is proactively identifying new partners and supporting the coordination of multi-stakeholder partnerships that can contribute to ISID;

Piloting the Programme for Country Partnership (PCP) PCPs build on the traditional TC services of UNIDO along the three prongs of ISID; it deploys these services in a strategic, more impactful way, which requires thorough coordination with the host Government and potential partners; The pilot PCPs, ETH and SEN, are both engaging with the host Governments at the highest political level, ensuring a strong commitment from the line ministries to the PCPs; The strong leadership and ownership of the Ethiopian and Senegalese Government with respect to the two PCPs has resulted in financial commitment to the PCPs and it has facilitated the forging of new partnerships as well;

Expanding the piloting phase of the PCPs Selection criteria UNIDO PCP selection criteria: Strong country ownership; Clear alignment to UNIDO’s ISID objectives; Closely embedded in national resource mobilization strategies and amenable to partnerships to upscale TC services; Offering an opportunity to deploy a multi-disciplinary array of UNIDO services; Fitted with a rigorous monitoring and reporting mechanism so that our Member States can measure the concrete benefits of this new approach;

Features of pilot PCPs - Ethiopia, Senegal and Peru The rich diversity of experiences amongst pilot PCPs helps develop a robust understanding of the PCP approach in different contexts: Ethiopia and Senegal, both LDCs, share a strong reliance on the agro-processing sector and the wish to develop agro-processing facilities; Ethiopia sees a stronger role of the public sector in the economic space, while Senegal shows a vibrant private sector; The PCP for Peru, a middle-income country, focuses on economic diversification, green technology, and innovation; UNIDO will take the responsibility of selecting additional pilot PCP countries based on the selection criteria to ensure high probability of success; The secretariat will report on progress to UNIDO’s governing bodies to ensure full transparency;

Programme for Country Partnership (PCP) Ethiopia Sectors selected based on their potential for job creation, strong linkages to the agricultural sector, export potential and capacity to attract investment Integrated service provision by different UNIDO branches in the focus areas Aligned with the priority sectors of the Government and other partners

Vertical and horizontal components of the PCP Senegal and technical branches involved

Agenda Introduction – PCP key objective Introduction – PCP overall objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Introduction – PCP key objective

ISID for Senegal : the way forward the industrial renewal The Plan Sénégal Emergent (PSE) is Senegal’s new strategic roadmap for sustainable development operational for 10 years Industry is a central driver for the dynamics of the economic growth of the country Senegal was selected as a pilot country within the framework of UNIDO’s initiative for inclusive and sustainable industrial development (ISID) 20 April 2015: official launch of the PCP-SEN implementation by the Prime Minister

PCP-SEN overall objective: operationalize PSE industrial development 5 key objectives 1 Accelerate domestic inclusive and sustainable industrial development through an industrial decentralization and the rebalancing of territories 2 Emphasize strengthening of capacities and competitiveness of Senegalese industrial companies 3 Institutional capacity building for implementing industrial policy, including Technology and Innovation as well as Skills development 4 Develop and promote Senegal as a preferred entry point for international investors in West Africa 5 Rationalization of technical and financial partners’ mode of intervention on PSE industrial development Figures TBU

Agenda Introduction – PCP key objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Alignment of the PCP with the PSE

PCP components in conjunction with PSE industrial components Alignment PCP-PSE : ISID approach in harmony with the inclusive approach of the PSE Vertical components of PCP Alignment with PSE Integrated industrial platforms Mobilization of technical and financial partners Integrated agro-poles Regional mining hub Integrated Pari industriel Horizontal components of the PCP Private sector development Environment and energy Trade facilitation Investment promotion South-south and triangular cooperation Science, Innovation and Technology Objectives of UNIDO interventions: Reinforce synergies between each component and the impact of technical assistance delivery through anintegrated and multidisciplinary method Rationalization and institutionalization of partner and donor mobilization

2 | Alignment of the PCP components with the industrial part of PSE Integrated Industrial Platforms PSE Objective Accelerate industrial development through 2-3 integrated industrial platforms – First site at Diamniadio Description Accelerated development of local industry through dynamic existing links: agro-business, construction, garment/manufacturing Supported by the creation of 2-3 zones Promotion of local products and “local consumption” PCP Operationalization of existing industrial platforms and parks Development of new park and platforms for promotion and support of regional and local industrial activities Outcome Expected results Creation of sustainable cities and eco-industrial parks in Senegal, with robust green industry initiatives; Improvement of services and facilities established in the parks and the platforms, in particular access to financing and quality certification services for SMEs; Establishment of community and multifunctional production workshops in rural and semi-urban areas Cadre regulatorie : . visa, normes de qualité et de sécurité, homologation des hôtels, loi foncier, etc.

2 | Alignment of the PCP components with the industrial part of PSE Agro-poles PSE Objective Strengthening of value added for agricultural production and reduce dependence on imports on agro-business products Description Creation of 3 agro-business transformation centers with specific functions (e.g. fruits and vegetables, oils, diary products, cereals and poultry) combined with: Infrastructures/shared services Attractive and simplified set of incentives Specific opportunities for agro-business PCP Industrial support of Senegal through agricultural value chains for the development and the operationalization of competitive and integrated agro- poles Outcome Expected results Operationalization of 3 competitive agro-poles on value chains to build business incubators Establishment of facilities and services dedicated to SMEs, in particular access to financing and quality certification services for SMEs; Establishment of 20 Rural Transformation Centers (RTC) around each agro- pole Cadre regulatorie : . visa, normes de qualité et de sécurité, homologation des hôtels, loi foncier, etc.

2 | Alignment of the PCP components with the industrial part of PSE Regional mining hub PSE Transform Senegal into a center of excellence for mining services in West Africa Objective Description Establish an ecosystem based on 3 components to attract the best providers of mining services: Service hub: operational sub-contracting including catering, raw materials, and facility management Logistic hub : centers of distribution Academic hub: training centers, specialized institutions PCP Transform Senegal into an international service platform for sub-regional mining industries Maximize the impact of the mining industry in the regional development through the development of competitiveness of the local private sector Outcome Expected results Operationalization of regional industrial parks and platforms through cluster development and industrial upgrading Creation of a Senegalese industrial supplier network for the formulation of components, equipment and industrial services Strengthening local private sector capacities building for the provision of mining services Cadre regulatorie : . visa, normes de qualité et de sécurité, homologation des hôtels, loi foncier, etc.

Agenda Introduction – PCP overall objective Action BOS Agenda Introduction – PCP overall objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Perspectives for 2016 Introduction – PCP key objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges PCP coordination and management

3 | Modalities of interaction among all stakeholders for implementing the PCP Strong synergies among all stakeholders PRIME MINISTER’S OFFICE Coordination of PCP by the Ministry of Industry Follow-up of implementation by the BOS Involvement of different sectorial Ministries UNIDO’s interventions with different stakeholders Establishment of a Steering Committee BOS Central dynamic Ministry of Investment Promotion Ministry of Agriculture Coordination Ministry of Industry Ministry of Finance Other Ministries UNIDO Technical and Financial Partners Private sector

Agenda Introduction – PCP key objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Perspectives for 2016 Deliverables and impact for Senegal

4 | Summary of UNIDO’s TA impact/fallout within the framework of the PCP-SEN Leadership at the highest level – Sensitization on the central role of industry for economic development Enhanced visibility to promote international investors and partnership mobilization Improved feasability of projects Build framework for the implementation phase Accelerated implementation of projects

4 | Impact analysis of UNIDO’s TA on PSE projects (1/3) PCP Component Industrial park Pre-PCP situation The current impact of UNIDO’s interventions Specialized national agency for the development of industrial zones One-stop shop for investors Regulatory constraints Lack of transparency and confusion of roles of national institutions Proposal of a model for management and administration based on international best practices Management based on the creation of a public-private business entity, involving the private sector and clarifying the roles and responsibilities of each stakeholder (APIX, APROSI, HAZES, DGPU, etc) Management and Governance Incentive packages Lack of clarity and complexity in incentive schemes offered to investors Fragmentation of efforts without tangible results Proposal of a modern and simplified incentive package (tax aspect, labor legislation, etc.) Structuring of the transformation of Diamniadio into a Special Economic Zone

4 | Pictures of constructions in progress in the industrial park site Beginning of construction in May 2015 Key figures & milestones Mobilization of USD 32 million of public financing for developing phase 1 Current construction on 13ha with the establishment of two standard workshops expected in 2016 4 Delegation visits of Chinese businessmen with the aim of relocating in Senegal February 2016: establishment of the first garments factory (C&H Garments)

4 | Impact analysis of UNIDO’s TA on PSE projects (3/3) PCP Components Agro-poles - GIFIUD Pre-PCP situation The current impact of UNIDO’s interventions Definition of the strategic vision and of general principles for the agro-poles within the framework of the Plan Sénégal Emergent (PSE) Preliminary targeting of establishment sites without substantial elements on value chain selection and integrated activities Study covering the following aspects: Function of the agro-poles (modules, value chains, covered sites) Financing requirement Proposal of an implementation plan Substantial contributions for decision- making for the operational launch of the project Launch of the agro-poles GIFIUD – Industrial policy Industrial development limited to PSE flagship projects (industrial park, PARI industriel initiative, and other industrial projects) Absence of a genuine industrial policy Scientific study based on the revealed comparative advantage (RCA), showing the existing potential within three sectors: horticulture and commercial agriculture, apparel (garments) and leather products Capacity building of the national task force, established to work jointly with UNIDO

Agenda Introduction – PCP key objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Perspectives for 2016 Main challenges

5 | Main challenges to be met to maximize the results (1/2) Envisaged activities to address the identified challenges within the PCP Higher involvement of the private sector within the framework of the industrial park of Diamniadio Pursuit and diversification of delegations comprised of foreign industrial companies visiting Senegal (4 in 2015) Establishment of a public-private dialogue platform to enhance the involvement of the national private sector Definition of a Partnership and Funds mobilization strategy under the guidance of an experienced national consultant Organization of a Partner and Donor Roundtable (mid-March 2016) Establishment of a Partner and Donor Working Group, under the auspices of the Ministry of Economy and Finance Establishment of partnerships and mobilization of resources for the PSE industrial components GEF Integrated Programme on Sustainable Cities in Senegal: Diamniadio as a sustainable city model in West Africa, attracting quality investments Increase of UNIDO’s environmental project portfolio in Senegal: greening of value chains, eco-industrial parks, e-waste management, etc. Inclusion of the environmental and energy dimensions

5 | Main challenges to be met to maximize the results (2/2) Envisaged activities to address the identified challenges within the PCP Several laws to amend and decrees to enact based on the findings of the technical teams Necessity to adopt a transitional solution while waiting for the enactment of legislation (e.g. transformation of Diamniadio into a SEZ) Ownership and implementation of legislation by the Government Accelerated adoption of legislation Deeper involvement of Government institutions (Prime Minister Office, BOS – Presidency -, Ministry of Industry, Ministry of Finance) to better mobilize national institutions UNIDO’s facilitator and coordinator role to mobilize the private sector and; UNIDO’s facilitator and coordinator role to mobilize technical and financial partners: sensitization, mobilization and catalyst of interventions Improvement of the overall PCP coordination Strengthening of promotion activities for industrial projects Finalization of the incentive package for Diamniadio Tailored and personalized support industrial companies in the framework of their establishment by APIX and the BOS Targeted roadshows to build strategic partnerships Investment promotion within PCP vertical integration

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Agenda Introduction – PCP key objective Alignment of the PCP with the PSE PCP coordination and management Deliverables and impact for Senegal Main challenges Perspectives for 2016 Perspectives for 2016

6| Perspectives and follow-up for PCP-SEN in 2016 (1/5) PURSUIT OF THE TECHNICAL ASSISTANCE ON THE PSE PRIORITY INDUSTRIAL PROJECTS Operationalization of phase I of the Diamniadio Industrial platform: Amendments and additions to the legal, regulatory provisions on IIP, and a clearer framework for investors; Operationalization of the public-private entity for the development, the management and administration of Diamniadio Support for the establishment of international industrial companies within the platform Technical support for financing phase II in Diamniadio and investment promotion Preliminary studies for the 2nd industrial platform Integrated industrial platforms Integrated and competitive agro-poles Implementation of the various feasibility studies for establishing the 1st integrated and competitive agro-poles Establishment of business and investment plans for the agro-poles Technical feasibility studies and environmental and social impact assessments Operationalization of the functional content; Industrial mining hub Technical support to local SMEs through cluster development, upgrading and subcontractingt Profiling and benchmarking of mining companies to develop subcontracting; Start of specific and global upgrading for identified potential suppliers; Pursuit and expansion of the cluster programme and networks in the Hub.

6| Perspectives and follow-up for PCP-SEN in 2016 (2/5) PURSUIT OF THE IMPLEMENTATION OF CROSS-CUTTING PCP-SEN COMPONENT Private sector development Pursuit of the implementation of the local cluster development programme Implementation of SME and value chain Upgrading Programmes Support to the PSE flagship reform – youth entrepreneurship Programme: Inclusive Development and Entrepreneurship for All (IDEA) GEF integrated programme on e-waste management and sustainable cities Climate Technology Centre and Network (CTCN) and Partnership for Action on Green Economy (PAGE) projects Greening of identified agro value chains as part of the establishment of agro- poles and the establishment of eco-industrial parks as part of the technical assistance for IIP The establishment of renewable energy and energy efficiency technologies and services within the IIPs and the agro-poles Environment and energy Trade facilitation Implementation of a quality infrastructure upgrading programme in Senegal within the framework of ECOWAS regional quality system programme

6 | Perspectives and follow-up for PCP-SEN in 2016 (3/5) LAUNCH OF NEW PCP-SEN COMPONENTS TO STRENGTHEN THE PSE OPERATIONALIZATION Implementation of Investment Monitoring Programme: Senegal Investor Survey for ISID Establishment of Investment Monitoring Platform; Capacity building for APIX and relevant national institutions; Technical support to the vertical interventions though investment promotion Investment promotion South-south and triangular industrial cooperation Support to the PSE flagship project “Corridors Céréaliers” – Implementation of a pilot cooperation project on rice production and transformation for Food Security in Senegal Institutionalization of South-south and triangular industrial cooperation in Senegal Science, Technology and Innovation Development of Senegalese capacities in innovation and productivity : Survey of Senegal’s national System of Innovation; National Firm-Level Innovation Study & Productivity Analysis; Establishment of a National Innovation & Productivity Observatory.

6 | Perspectives and follow-up for PCP-SEN in 2016 (4/5) ENSURE AN EFFICIENT, INTEGRATED AND COORDINATED IMPLEMENTAION PCP-SEN coordination Pursue on the work achieved by the PCP-SEN Steering Committee: Overall supervision and strategic guidance on the PCP-SEN Consensus building among PCP-SEN key stakeholders Follow-up and recommendations on PCP-SEN milestones The operationalization of the Partner and Donor Working Group Overall coordination of technical and financial partners’ activities on PSE industrial part; Operationalization of the Partnership and Funds mobilization strategy Expansion of the group to new members; Operationalization of financing mechanisms dedicated to PSE industrial part Dialogue platform on issues related to inclusive and sustainable industrial development Technical and financial partner mobilization Monitoring & Evaluation Adaptation of a monitoring and evaluation framework for operationalizing the PSE industrial part Sensitization workshop between UNIDO, the Government of Senegal and technical and financial partners Capacity building of the BOS and relevant national institutions

6 | Perspectives and follow-up for PCP-SEN in 2016 (1/5) SHARING THE PCP MODEL 5th ISID Forum jointly organized with UNIDO and the Governments of Ethiopia and Senegal coupled with regional workshop to demonstrate the relevance of the PCP model for African industrialization PCP-SEN major events Expression of gratitude and encouragement for their involvement, team-spirit and dedication PCP-SEN Technical Team

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