Local Competitiveness Facility (Rwanda) - Sofie Geerts (BTC Rwanda)
-
Upload
btc-ctb -
Category
Government & Nonprofit
-
view
120 -
download
3
Transcript of Local Competitiveness Facility (Rwanda) - Sofie Geerts (BTC Rwanda)
Local Competitiveness Facility (Rwanda)
Sofie Geerts, International Technical Advisor on LEDRwanda Decentralisation Support Programme
Stimulate partnerships between large, medium, small, micro enterprises
and cooperatives.
Promote value chain development: mitigate cost and risk barriers by partnering
Have positive LED resultsMeet pro-poor developmental objectives
4 objectives
What is LCF?
1.2.
4.3.
LCF = a grant fund with own-funding requirement for grantees: 4 objectives
2
Why LCF?
1.2.
4.3.
• Idea from South Africa – similar fund exists 16 years – positive LED results
• Rwanda policy environment: private sector as engine of job creation; government to create enabling environment
• Feasibility study for LCF conducted: no other similar fund, local potentialities there but no access to finance; lack of finance main barrier to keep small enterprises from growing
LCF: a complementary tool for business environment and LED
3
Different LED approaches:• Value chain
development• Skills development• Cluster development• Public-private
partnerships• Branding of local
economy• Etc.
LED=
Job creation, economic growth, higher
incomes
LCF grant funding + CB
= means to stimulate
private sector development
LCF as complimentary economic model to achieve LED
4
LCF and LED
5
Different LED APPROACHES
to be implemented
COORDINATION and PLANNING:• Planning• Coordination• Harmonisation
BASIC FACTORS in PLACE like infrastructure, business development services, skills, etc.
ACTIVE ECONOMY on the LOCAL
LEVEL
Contribution of RDSP and LCF to LED in Rwanda
5
TFF RDSP: initial concept; GoR/BTC, LCF
South Africa
LCF assessment: feasibility, stakeholders
LCF Programme Document: Rationale, design and why,
governance, TC
LCF Operational manual (including tools):
Consultant, LODA, Districts, TC
LCF pilot implementation
LCF develop
ment process 1.
5.
2.
3.
4.
• Process started in 2015• Many stakeholders consulted• Strong ownership from MINALOC, LODA, local
government• Feasibility assessment• Quality assurance: LCF South Africa, TAs LODA,
BTC, WB, UNCDF, DFID
6
LCF development process
Funding windows available
WINDOW PROJECT VALUE GRANT OWN CONTRIBUTION (cash or in-kind)
Window 1: 5 000 000 - 10 000 000 Rwf (6000 – 12 000 euro)
90% 10%
Window 2: 10 000 000 - 40 000 000 RwF(12 000 and 50 000 euro)
70% 30%
LCF piloted in 4 Districts – 600 000 euro per District available
7
Who can apply?WINDOW 1Two possibilities:• A medium or large company partners with
micro, small companies or cooperativesThe applicant company should be a formal company, others are informal;
• An NGO partners with micro, small companies or cooperativesThe NGO is the applicant organisation; other companies are informal
Note:• At least two companies per partnership• TVET centres (public or private) can be part
of the partnership
WINDOW 2Two possibilities:• Micro, small companies or cooperatives
clustering together• Large/medium companies partner with small
micro enterprises/cooperatives with focus on value chain integration and linking small companies to markets
Note:• All companies should be formal• At least two companies per partnership• TVET centres (public or private) can be part of
the partnership
8
9
• Agribusiness: both agriculture and livestock
• Handcrafts: basketry and mats, embroidery and woven products, hand textiles, ceramics and pottery, leather (products), wood products (carpentry), jewelry (products), metal products (welding)
• Tourism: accommodation, development and operationalization of touristic sites, cultural villages, cultural sites, guides, travel agents, water sports
• ICT: radio, television, cellular phones, computer and network hardware and software, satellite systems, as well as services associated with them (videoconferencing, e-learning, MEIS, mobile money, internet registration services, internet services…)
• Distribution and services sector: in partnership with any of the above sectors; companies in the distribution or services sector alone cannot apply, it should be distribution and services companies as part of a value-chain (e.g. a transport company partnering with an agribusiness company)
Target economic sectors for LCF
9
Launch of LCF
Awareness campaign
Notification to applicants
Evaluation full project proposals
Evaluation of expressions of
interest
Call for expression of interest
Notification of provisional results
Due diligence
Investment Committee Award notice to
winning projectsContracting
First payment
Second payment
Third payment
Fourth payment
Site visits and monitoring reports
Financial AUDIT
Steps for call for proposals 1
Selected projects to submit full
proposal
Purpose:• Build awareness of existence of LCF, how to apply, eligibility, criteria• Mobilise private sector to apply for funding from LCF
WEBSITEwww.lcf.rw
RADIO spot
TV spotBROCHURES
POSTERSBANNERS
AWARENESS meetings
11
Awareness campaign
Technical Committee
Investment Committee
LODA/LED LCF Secretariat
DISTRICT/BDEU LCF Secretariat
BENEFICIARIESPartnerships
LODA BoD
RDSP
Evaluation
Appl
icati
on Feed back
Cont
ract
Grant Agreement
MoU
MEISAdvisory
Advi
sory
EvaluationDistrict
evaluation committee
External evaluation consultants
Evaluation
Governance and management
Important lessons in setting up a new grant fund to enhance LED
13
• Assess feasibility prior to confirming and designing the fund• Start in a limited number of localities (pilot)• Compare with other existing and closed funds – avoid overlap• Involve all relevant stakeholders from the start • Long decision-making process: ensure buy-in of crucial decision-makers at
all stages• Envisage starting under co-management modality, with later shift to grant
agreement modality to ease design and share early risks; ensure ownership• Ensure adequate role of central vs. local government in governance and
decision-making structure
Thank you
Questions?
Evaluation criteria….Expression of interestLCF OBJECTIVE Criteria1. LED IMPACT Potential for extra jobs to be created
Potential for increased salaries Market access Alignment with LED Strategy/DDP
2. PARTNERSHIP Partners to prove their institutional capacity to implement; Demonstrate a win-win objective for all partners involved; Participation and ownership of all partners involved Own-funding requirement available Involvement of TVET Centre
3. INNOVATIVE IDEAS IN VALUE CHAIN DEVELOMENT
Contribution to innovation Focus on value chain development
4. PRO-POOR Pro-poor impact to be shown: potential for job creation for poor people (Ubudehe 1 and 2)
Evaluation criteria….Full proposalCRITERIA KEY ELEMENTS
1. RELEVANCE Appropriate activity schedule Contribute to the profitability of the partnership members Market analysis: competition, target clients, demand, sales
and distribution (only for window 2)
2. FEASIBILITY Technical and organizational capacity of the members to implement the project, including staff
Own-funding requirement proven Financial viability of the project including cost benefit ratio Risk management (only for window 2)
3. SUSTAINABILITY Sustainability of the businesses part of the partnership group
16