Newsletter: Volume 3

TANZANIA IMARISHA SEKTA BINAFSI

TANZANIA PRIVATE SECTOR STRENGTHENING ACTIVITY

AMPLIFYING THE VOICES OF YOUNG PEOPLE Exposure to local and international forums allows youth enterprises to voice their concerns, expand their network, and be inspired to improve their businesses.

Youth in Tanzania are often missing from critical decision-making processes. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi (USAID-Feed the Future Tanzania Private Sector Strengthening Activity) advocates for young people to be seen and heard. During Quarter Four (July - September 2023) of Fiscal Year 2023, youth entrepreneurs contributed to dialogues, round table discussions and international conventions, increasing stakeholders’ understanding of their unique needs and challenges within the entrepreneurship ecosystem. Through USAID-Feed the Future Tanzania Imarisha Sekta Binafsi, they were given formal platforms at local and international conventions to engage with leaders and create solutions together; their voices were amplified through important speaking opportunities.

Mkami Matere Youth Entrepreneur from Morogoro, during AGRF 2023

“ Attending this convention has been a privilege. I have been aspiring to enter the African market, and AGRF presented a fantastic opportunity to connect and assess the market. It has been an invaluable platform to gain insights and forge meaningful connections.

AGRF 2023

Excitement was at the peak among the ten youth enterprises sponsored by USAID-Feed the Future Tanzania Imarisha Sekta Binafsi, at AGRF 2023.

In preparation for the conference, the sponsored youth entrepreneurs participated in coaching sessions facilitated by an expert from the project's Business Development Services Provider (BDSP) database. This ensured effective contributions and engagement at the convention. The sessions covered several topics, including design think- ing, crafting authentic pitches, and how to make mean- ingful and professional connections when networking. Through the support of the project, the youth enterprises sharpened their skills and created lasting relationships to improve their businesses.

President of the United Republic of Tanzania, H.E. Samia Suluhu Hassan, called upon African nations to recognize the pivotal role youth play in Africa’s agricultural future. The President made these remarks during a keynote address at the 2023 Africa Green Revolution Forum (AGRF) under the theme Recover, Regenerate, Act: Africa’s Solutions to Food Systems Transformation , held on 5 - 8 September at the Julius Nyerere International Convention Center in Dar es Salaam, Tanzania. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi sponsored ten youth entrepreneurs from Iringa, Mbeya, Morogoro and Zanzibar to join more than 5,400 delegates from 90 countries at the 2023 AGRF to engage with potential supporters and key stakeholders in the agricultural value chain in Africa. Farmers, youth, and women represented 57% of the speakers. Youth form a large segment of the African population; they, too, must raise their voice in matters that affect their life. Our gathering at the Youth Town Hall gives an exclusive opportunity to listen to them. As we have agreed and already stated, it is important to hear their concerns, challenges and hopes to enrich our discussions as we chart the way towards improving agribusiness for the young population. ” H.E. Samia Suluhu Hassan President of the United Republic of Tanzania, during AGRF 2023 “

“ During AGRF, I participated in six sessions and learned a lot in terms of investment in technology, innovation and infrastructures on food security and agriculture.

Rehema Mohamed (22) , youth entrepreneur and member of Tanzania Women Chamber of Commerce (TWCC-Iringa) during AGRF 2023 ”

“ Participating in AGRF has given me an opportunity to exchange experience with fellow entrepreneurs, especially in the beekeeping and honey sector. This has enabled me to improve the quality of my products and be a better competitor in the market.

Mansur Salum Rashid (18) , youth entrepreneur and member of Association of Zanzibar for Social and Economic Empowerment (AZSEE), during AGRF 2023

Youth Engagement in Zanzibar Regional Dialogues

USAID’s Global Food Crisis Coordinator and Feed the Future Deputy Coordinator for Development, Dina Esposito, emphasized the importance of ongoing dialogue with the government to address youth enterprise constraints. Round Table Discussion with Youth Entrepreneurs She made these remarks during her address at the Youth Enterprise Round Table, a side event during AGRF 2023, coordinated by USAID/Tanzania. Eight Youth entrepreneurs from Feed the Future Tanzania Imarisha Sekta Binafsi were in attendance, with representatives from Zanzibar and the mainland (Mbeya, Iringa and Morogoro). The session focused on exploring the journeys of these youth enterprises and understanding the challenges youth face in starting and expanding their businesses in Tanzania. She further encouraged the youth entrepreneurs to focus on business growth while capitalizing on available opportunities for engagement with stakeholders to resolve these issues. Among the challenges highlighted by the youth participants were policy barriers, such as the lack of business registration harmonization between Zanzibar and the Mainland. Additionally, they emphasized concerns about the complicated and expensive procedures in product standard registration through the Bureau of Standards. Access to finance was another major obstacle highlighted, with high-interest rates posing a significant hindrance to youth enterprises. Capacity building on export procedures was also identified as requiring attention and development. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi implements several initiatives to address the mentioned challenges, including policy analysis, public-private dialogues, tailored capacity building for youth enterprises, and the development of a Youth Access to Finance Roadmap.

USAID-Feed the Future Tanzania Imarisha Sekta Binafsi recognizes that youth participation is significant in decision-making and policy dialogues in Tanzania. As part of its strategy to involve young people in decision-making, the Activity supports youth entrepreneurs with opportunities to voice their concerns in local public-private dialogues (PPDs). Three public-private dialogues were hosted by grantee Popular Inspiring & Relief Organization (PIRO) in North and South Pemba from July to August 2023 to address hurdles youth agripreneurs face within the entrepreneurship ecosystem, explicitly looking at challenges in initiating, operating and formalizing their businesses. Ninety-three (93) youth enterprises (female 45, male 48) attended the PPDs; ten youth entrepreneurs had speaking roles.

Highlights from the dialogues

Lack of Youth Voices at Regional Business Councils Regional business councils predominantly consist of elders, established business owners and representatives; young entrepreneurs’ voices are not heard, so their unique challenges cannot be addressed. Poor Business Enabling Environment Bureaucracy and lack of proper infrastructure hinder business efficiency and growth of youth enterprises. Intense Market Competition Youth entrepreneurs often face fierce competition in the market. Establishing a unique marketing strategy and building a good reputation is crucial for the success of the youth-led business. Access to Finance Banks and financial institutions often have strict requirements and high-interest rates for young startups, making it difficult for many young people to obtain sufficient funding to grow their businesses.

Promoting Youth Inclusion and Empowerment Ensuring youth issues are included in the agriculture policy review process.

At the AGRF2023, Isobel Coleman, USAID Deputy Administrator for Policy and Programming, and Dina Esposito, Feed the Future Deputy Coordinator for Development, visited USAID-Feed the Future Tanzania Imarisha Sekta Binafsi booth to learn how the project is creating economic opportunities and improving the business enabling environment for youth entrepreneurs.

Youth enterprises demonstrate their products during the 2023 Tanzania International Agriculture Trade Show (Nanenane) in Mbeya to increase access to reliable market opportunities, increase their sales and strengthen their customer network.

YOUTH ENTERPRISES ACCESS RELIABLE MARKETS DURING SABASABA AND NANENANE

FIND VIDEO SUCCESS STORIES HERE

International exhibition events like the Dar es Salaam International Trade Fair (DITF), commonly known as Sabasaba and the Tanzania International Agriculture Trade Show, commonly known as Nanenane are important platforms to connect consumers and producers across the country. However, many youth enterprises have limited access to these platforms and struggle to establish connections with potential buyers, suppliers and distributors. USAID-Feed the Future Tanzania Imarisha Sekta Binfsi sponsored 72 youth enterprises to attend Nanenane (1 - 8 July 2023) and 10 youth enterprises to attend Sabasaba (28 June - 13 July 2023) to showcase their products to new customers, increase their sales and strengthen their customer network. USAID-Feed the Future Tanzania Imarisha Sekta Binfsi recognizes the importance of integrating youth-led enterprises into reliable markets, providing opportunities to generate income, and reducing poverty. These platforms allow youth efforts to be seen and heard. Youth were also connected to government and private sector partners for business improvement. USAID-Feed the Future Tanzania Imarisha Sekta Binfsi understands the vital role Youth Enterprises play in driving economic growth in Tanzania. The project implements efforts to unlock the transformative potential of youth-led enterprises by connecting them to economic opportunities available in the agricultural value chains, including participation in international exhibitions to empower them to access new markets and strengthen their presence in the agriculture value chain.

“ USAID-Feed the Future Tanzania Private Sector Strengthening Activity has opened my eyes and inspired me to formalise the way I run my business. ”

Amina Awesi (20) , member of PIRO, during Sabasaba in Dar es Salaam

“ Thank you for enabling me, as an entrepreneur, to attend the Nanenane exhibitions to promote my business. I have acquired new customers who will help boost my business further. ”

Maria S. Mwasi (20) , member of KMC, during Nanenane in Mbeya

“ I have learnt a lot of things about packaging. I have seen other exhibitors have good packages with various sizes to fit all kinds of customers; for example, there are packets that cost TZS 400/= shillings (less than 17 cents USD) which anyone can afford to buy. Also, many customers want flour which is ready to use without cooking, so after this trade fair I’m going to work on it. ”

Zuwena Haruna (32) , member of TWCC Iringa, during Sabasaba in Dar es Salaam

“ My participation in Nanenane enabled me to promote our business to new customers. I have received an order for 20 litres of milk daily in Mbalizi. ”

Agustino Yaulen (24) , member of KMC, during Nanenane in Mbeya

“ Sabasaba helped us to promote our business, learn from others, link with people and exchange contacts. It is different from other local trade fairs where we participated in terms of the number of visitor and exhibitors, branding, sectorial arrangements and coordination done by TWCC. ”

Erick Mkulasi (25) , member of TWCC Iringa, during Sabasaba in Dar es Salaam

“ Participating in exhibitions goes beyond selling our offerings; it’s an opportunity to establish new connections, access fresh markets, and learn from other businesses. This year’s Sabasaba stands out, thanks to the well-organized TWCC pavilion, impressive branding, effective coordination, and high-quality products on display. These factors drew a substantial number of visitors to our pavilion, giving them the chance to explore our products and engage with our offerings. ”

Justine Mgeni (27) , member of TWCC Iringa, during Sabasaba in Dar es Salaam

“ I am extremely grateful of the USAID-Feed the Future Tanzania Imarisha Sekta Binafsi Project through AZSEE for supporting me to participate in Nanenane. I have managed to realize substantial sales as well as obtain an exceptional order of 200.15 tons of organic fertilizer amounting to TZS 26,000,000/=. ”

Mwamtoro Abdalla Khamis (30) , member of AZSEE, during Nanenane in Zanzibar

CONNECTING YOUTH ENTREPRENEURS TO RELIABLE INPUT AND MARKET SOURCES In Tanzania, as well as in many developing countries, smallholder farmers have challenges accessing reliable farm inputs. Youth enterprises face additional difficulties in accessing inputs since they frequently lack the required knowledge of input supply structures and have limited networks and contacts with buyers and suppliers. Miriam Charles Mkisi, 24, needs an endless supply of fresh chilies for her home-based business that produces chili sauce. “I struggled to find a reliable producer of good-quality scotch bonnet chili at a fair price,” says Miriam, “consistent access to reliable raw materials is the foundation of food processing to remain competitive in the marketplace.” Business Development Services (BDS) are designed to help youth entrepreneurs like Miriam solve challenges in accessing farm inputs and further enhance their capacity to access finance. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi supports private sector institutions to engage Business Develop- ment Service Providers (BDSPs) to deliver BDS to young entrepreneurs. Miriam spent considerable time searching for suppliers until she was selected to participate in 2 BDS workshops: Business Formalization and Access to Finance. The workshops were facilitated by Khebhandza Marketing Company Limited (KMC), a USAID-Feed the Future Tanzania Imarisha Sekta Binafsi partner that strengthens youth enterprises in the agricultural value chain through the provision of BDS. The workshops covered various thematic areas, including business registration, financial planning, marketing and business management; enhancing youth business skills to facilitate informed decision-making for market access and sustainable financial services. The workshops further enabled peer-to-peer connections among youth enterprises within the agricultural value chain. As a solution to Miriam’s input problem, PSSA linked Miriam with Ernest Mwampamba, a 33-year-old chilli irrigation farmer from Mbarali, Mbeya, at the business formalization workshop. The partnership has enabled her to access chili produce throughout the year and Ernest to have a secured client. Miriam and Ernest can now operate competitively in the district through their partnership, and they now have assured earning capacity for the future. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi has partnered with KMC as part of a larger effort to help youth overcome their unique barriers and promote their growth. Miriam and Ernest are among the 1,346 (females 706, males 641) youth entrepreneurs who have received BDSP support through the Activity. Through the BDS services provided, Miriam and Ernest are now equipped to receive further support for start-up kits to increase their production and improve their sales. Rural youth are the future of the agriculture sector in Tanzania; access to BDS is necessary to boost productivity, increase income, and lift them out of poverty.

USAID-Feed the Future Tanzania Imarisha Sekta Binafsi has played a significant role in elevating us from where we were; and guiding us towards new opportunities.

Miriam Mkisi (24) , youth entrepreneur from Mbeya

FIND VIDEO SUCCESS STORY HERE

BUSINESS FORMALIZATION PROVIDES NEW OPPORTUNITIES Geoffrey Yohana Mbuna (29) started making organic fertilizer in 2022 from a passion for safeguarding the surrounding ecosystem in his community in Mbarali, Mbeya. Geoffrey was delighted that demand for his organic fertilizer from local farmers was increasing; however, to grow as an entrepreneur, he needed to formalize his business. “My informal business had been growing steadily until the lack of being formalized affected my ability to connect to critical stakeholders for expansion of my business.” Many youth entrepreneurs do not see the need for formalization, especially those in rural Tanzania who are often satisfied with what they have; however, formal and reliable markets, with access to customers, competitors and market information, is an important factor that prompts entrepreneurs to seek formalization. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi provides business development services that match youth enterprises’ unique needs to strengthen their operational capacity. In 2023, together with 1,673 (females 619, males 757) other youth enterprises located in Feed the Future Tanzania Imarisha Sekta Binafsi zones of influence Iringa, Mbeya, Morogoro, Unguja and Pemba, Geoffrey participated in business formalization workshops organized by the Activity. Working closely with local government authorities, financial institutions and tax authorities, these workshops help youth enterprises understand the benefits and processes of formalization and directly assist them with their business and tax registration. “The business formalization workshop has changed my business mindset. As an informal business owner, I was afraid of registering my business with the tax authorities,” Geoffrey says, “However, after the workshop, I learnt that I may be exempted from high-income tax payments because my turnover is below a certain threshold.” There are numerous benefits to formalizing youth businesses within the agriculture sector, including access to financial services, access to business development support, access to public procurement and the ability to apply for certifications and licenses to access national and international markets. “After formalizing my business, USAID-Feed the Future Tanzania Imarisha Sekta Binafsi connected me with crucial fertilizer quality control partners, the Tanzania Fertilizer Regulatory Authority and the Tanzania Agriculture Research Institute, who supported me in preparing fertilizer samples currently being tested at the Tanzania Bureau of Standards,” says Geoffery, “I now have a pro license to distribute organic fertilizer with expectations to receive a full license in 2024.” So far, through the support of USAID-Feed the Future Tanzania Imarisha Sekta Binafsi, 100 (females 40, males 60) youth enterprises now have TIN numbers, and 57 (females 49, males 8) have business licenses. Addressing informality among youth enterprises requires business development services that take into account their unique conditions. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi supports youth entrepreneurs to utilize business development services that improve their business systems and give them the freedom to operate in formal markets.

After formalizing my business, USAID-Feed the Future Tanzania Imarisha Sekta Binafsi connected me with crucial fertilizer quality control partners. I now have a pro license to distribute organic fertilizer with expectations to receive a full license in 2024.

FIND VIDEO SUCCESS STORY HERE

Geoffrey Yohana Mbuna , youth entreprenuer from Mbeya

HIGHLIGHTS: OCTOBER 2022 - SEPTEMBER 2023

Youth Policy Analysis Validation Workshops conducted to engage the private and government sector in both Zanzibar and Mainland 2

Partnerships

4 Policies have been reviewed

Signed Memoranda of Understanding (MOUs) with strategic stakeholders:

• Zanzibar Economic

Empowerment Agency (ZEEA) • Tanzania Private Sector Foundation (TPSF) • Southern Agricultural Growth Corridor of Tanzania (SAGCOT) • National Economic Empowerment Council (NEEC) MOUs signed between grantees and private and public sector stakeholders

22

17

Private and Public Sector Engagements

experienced entrepreneurs 96 Youth enterprises profiled through grantees Partnered with 5 grantees 4,279

Public-private dialogues completed involving 197 private sector enterprises. These PPDs play a crucial role in addressing a wide range of challenges encountered by

youth entrepreneurs 27

125

Database of Business Development Service Providers (BDSPs).

Youth enterprises sponsored to participate in Sabasaba, Nane Nane, and/or the Africa Food Systems Forum (AGRF), to exhibit and learn from potential investors and

1,346 Youth enterprises accessed business development services (business formalization and registration services)

73

Youth enterprises accessed finance 140

Youth entrepreneurs facilitated with mentorship programs

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