1. BSPS IV & LIC Brief to TNBC Team Friday 19 th - 2014

2. Business Sector Programme Support Phase IV: Development Objective (DO): “Improved employment and income opportunities for farmers and micro, small and medium enterprises (MSMEs) through green inclusive growth”. Green Growth: Efficient and effective use of resources with environmentally friendly focus. Inclusive growth: Including all members of society (especially marginalized groups) in the growth process rather than distributing the wealth to them after a period of steep growth. BSPS IV Components: 1. Agricultural Markets Development - AMDT – Value chain M4P approach 2. Improved Business Climate – LIC, BEST Dialogue and CTI/DI 3. Access to Finance – FSDT & PASS Focus will be centered around a number of selected value chains which are particularly promising for creating decent employment and increased income. The three components of BSPS IV are designed to address some of the major factors that can contribute to unleashing private sector growth and employment creation.

3. Local Investment Climate LIC Objective: Improved conditions for sustained business growth and investment in selected LGAs. Why LIC (Rationale): Previous support to reforms of the business sector environment has focused on the national policy framework – but practical implementation has been slow. LGA expenditure patterns are, to a large extent, a reflection of Central Government priorities and budget allocations: LGAs depend for more than 90 percent of their budgets on Central Government transfers The scan of LGAs within Dodoma and Kigoma Regions has found that very little formal interaction exists between LGAs and the local business community. Conditions to be improved: “Investment Climate”: Describes a broad range of issues affecting the development of the private sector i.e. rule of law, the presence of open financial markets, economic predictability, infrastructure, political stability, efficient labour markets “Business Environment”: Defined to be a sub set of investment climate i.e. policy, legal, institutional, and regulatory conditions that govern business activities(includes rtnships between public, private and civil actors.

4. LIC strategic Approach: Understanding and work on the critical constraints to business growth and economic development at the district level. - Studies Supports a change in the mindset of LGA officials, both elected and staff. i.e. Changing the ways LGAs approach and work with local business. – ownership, capacity building & dialogue Provide support PSOs to identify and prioritize the challenges it faces in the local business environment and facilitate the creation of district-level Public-Private Dialogue (PPD) mechanisms. – Capacity building & dialogue Involve interventions designed to transform strategic value chains on which many poor households rely. – Value chain and M4P Approach Facilitate linkages between the AMDT and the targeted districts. – Value chain & M4P approach Small Industrial Facilities Fund (SIFF) to support local business investment growth. – Investment and business growth stimulation Documentation of lessons learned by government and the business community in this programme and share with other regions across the country. - Communication and knowledge sharing Working with strategic national partners, such as PMO-RALG, Association of Local Authorities in Tanzania (ALAT), Tanzania Private Sector Foundation (TPSF), TCCIA, SIDO, UNIDO, TNBC – Partnership and resource sharing.

5. Summary Issues & Actors InterventionsResults LIC Reforms (LICR/LBER) Monitoring & knowledge mgt (Documenting lessons)

6. Issue for discussion on PPDs operations Number and composition of members and inclusion – proposed 20??? 40??? Structure PPD secretariat – employed? Seconded? Sustainable way of developing agendas – Through secretariat??? Sustainable operations – Funding??? How do make LGAs and PSO fund PPD operations – ownership??? Follow on agreed issues (Action/Reform plans) – Small committees??? Sound name of the platforms How to implement one forum rule????