Project Summary

Project General Description

The proposed Technical Assistance (TA) program of US $1.25 million is to help develop capacity of local Micro and Small Medium Enterprises (MSMEs) along the 1,445 km East African Crude Oil Pipeline (EACOP) in Uganda and Tanzania. The TA will maximize the amount of inputs procured by large companies operating on the planned EACOP in both Uganda and Tanzania through creation of durable and mutually beneficial partnerships between the large companies and MSMEs, thus enhancing the productive capacity, efficiency, competitiveness and sustainability of their relationship. Additionally, MSMEs will be exposed to new market opportunities and involved in the creation of business linkages with large, blue-chip companies. This will, ultimately support inclusive private sector growth in Uganda and Tanzania. The TA will support SME Business linkages along the EACOP through two inter-linked components namely: (i) Capacity building in business development which will involve identification of target MSME’s and conducting needs assessments, facilitate trainings in relevant topics to enhance creation of a platforms for networking and market linkages between micro and small/medium enterprises with national, regional and international businesses and organisations and (ii) Administration, monitoring and evaluation, which will involve recruitment of staff and procurement of services. The TA program will be undertaken over a period of 24 months.

Project Objectives

The specific project objectives include: (i) Capacity building of at least 200 MSMEs, as a process of enabling them to meet large companies’ supplier criteria; commercial banks’ lending requirements; and have potential to access new markets; (ii) Establishment of a minimum of 50 business linkages between Micro enterprises and Small Medium Enterprises and 20 linkages between large companies to SMEs; (iii) Establishment of a framework for the sustainability of a business linkage program between Micro enterprises, SME’s and large companies in Uganda and Tanzania.

Beneficiaries

The targeted beneficiaries include the local business enterprises. It is estimated that 200 MSMEs along the EACOP will benefit directly. The target is to have at least 20% of the targeted MSMEs owned by women. Other beneficiaries will include; local communities who will benefit from job opportunities, the associations of oil and gas service providers in both Uganda and Tanzania together with the private sector foundations in Tanzania and Uganda and the commercial Banks, which may lend to the enterprises. The main contractors will also benefit from buy-in by the communities since they will virtually own the project. The two governments will be beneficiaries since they will have an increased revenue base due to businesses created by the TA.

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