LocationsUNDP Participants: Dr. (Ms) Pratibha Mehta, UNDP RR/RC; Zebo Jalilova, TL on SED
Date and time: 12 February 2021, 14:00 p.m
Venue: SCISPM
I. Objectives:
· Discuss cooperation with UNDP and future perspectives.
· Identify needs for technical assistance, entry points for research and data generation, and potential for promotion of SDG/innovative/alternative financing
II. Key points for discussion
Policy support: State Program for Development of Private Sector in Tajikistan till 2030
In 2020 UNDP supported SCISPM and the working group of national experts with evaluation of results of the previous program on entrepreneurship promotion and to develop a new program until 2030, the State Program for Private Sector Development. The draft of the program is finalized and is currently under the final review by the Government.
Also, taking into account the impact of COVID, UNDP conducted Assessment of socio-economic impact on lives, livelihoods and MSMEs, which provided ample data and evidence on needs and gaps faced by people and businesses to survive and recover from crisis. The Assessment results were widely disseminated, including during the events organized jointly with SCISPM last year.
In 2021 UNDP will support SCISPM to disseminate the new program among different stakeholders, to localize its provision through local development plans, etc.
Continued policy support for promoting of favorable environment for investments and private sector development remains UNDP sphere of interest and we are ready to discuss future entry points and demands of the Government for international expertise and technical assistance.
In 2021 and beyond UNDP considers continuing support for evidence generation, research, assessments in the different spheres, aimed to promote sustainable economic development and favorable environment for private sector development, especially focusing on the needs of young people, women, and other vulnerable groups.
Support to Business Incubator:
UNDP provided support to SCISPM, in the past to shape the legal and operational framework for creation/establishing the State Institution Formation and Development of Entrepreneurship (SI FDE), aka Business Incubator. Since SI FDE and regional branches establishment, UNDP invested over USD160k to equip and strengthen potential of this center. UNDP funding was catalytical to bring over USD500k from other donors to support new institution.
In 2021 and beyond UNDP will continue cooperation with Business Incubator and its regional branches to promote services for entrepreneurs, to strengthen adaptation capacities of SMEs and to expand startup ecosystem in the country.
According to our data, to date, SI FDE serviced almost 800 entrepreneurs, and in 2021 UNDP will partner to reach out additional 300 SMEs with consultancy and mentoring services. Series of events on development of startup ecosystem, particularly on conducting sessions of Startup Choikhona, hackathons, business connects, planned for 2021.
Promotion of innovations in business
Assessment of impact of COVID revealed weak capacity of MSMEs to quickly adapt to changing circumstances and weak potential to apply digital solutions. Digitalization remains one of the opportunities for quick recovery and adaptation to new context and it critical for success of Tajik business in the future.
Currently, UNDP is working jointly with SCISPM team and with the Secretariat of the Consultative Council on Improvement of Investment Climate under the President of Tajikistan to draft Law of the Republic of Tajikistan “On technological parks and IT parks”. The revised law will provide enabling space for the entrepreneurs and for the government to improve knowledge and skills of young people, to expand engagement of youth into new professions and to promote innovative solutions for business and social development.
In 2021 UNDP is going to focus its technical support on promotion of digitalization of businesses and e-commerce opportunities for MSMEs. UNDP is ready to hear ideas of SCISPM with regards to development of national e-commerce regulatory framework and piloting relevant joint initiatives together.
In the framework of its ongoing projects UNDP is going to partner with private sector and state institutions to pilot digital tools and online platforms for business consultancy and access to integrated state services for entrepreneurs.
As you know, on 25th of February, UNDP jointly with ITC and Governments of 4 Central Asian countries is launching the new Central Asian portal for Trade Intelligence, which will provide integrated access to information about rules, procedures, quality requirements, regulations, etc.
In 2021 UNDP plans to scale up its Start-Up Choikhona platform to the regional level and to conduct event with attraction of entrepreneurs and investors from Uzbekistan and Kyrgyzstan. UNDP team will work closely with SCISPM and other partners to promote Start-Up Choikhona as national flagship initiative for innovative entrepreneurship.
New niche for cooperation: Innovative Financing
To support the SCISPM and the Government with attraction of additional financing resources from private sector, UNDP envisages to provide research of local regulatory framework, policy support to strengthen enabling environment for innovative financing and consultancy support to implementing partners.
In the framework of the joint UN project on SDG Financing, UNDP intends to work closely with SCISPM and other government institutions (National Bank, MEDT, MinFin) to establish a national taskforce on Innovative financing. The purpose is to provide access to international best practices and knowledge, to strengthen capacities of national counterparts for promotion of new forms of financing for development and to support necessary change in regulatory framework.
Also, currently UNDP is discussing with SCISPM and Business Incubator a possibility to establish Startups Support Fund under the auspices of the Business Incubator, and also to research the scope for development of Venture Investment market in Tajikistan. For this purpose UNDP has contracted international company, the Fund for Development of Internet Initiatives from Russia to prepare mentors for startup projects, to conduct analysis of venture investment market, as well as to provide consultations to 3 selected companies for their scale up in other countries (Alif Bank, fly.tj and Colibri-IT company).
Localizing reforms:
UNDP is working closely with local investment departments, regional branches of Business Incubator and with other institutions affiliated with SCISPM - e.g. PPP Center.
In partnership with the Consultative Council on Improvement of Investment Climate, UNDP will continue with its support in conduction the analyses of key problems to address the barriers for enabling the business environment in the country and will provide technical support in conduction the consultative council meetings at national level as well as in Rasht, Sughd and Khatlon regions.
Other critical information:
Promoting the Women Entrepreneurship development
The Interdepartmental Working Group for the Support of Women's Entrepreneurship (Gender Tasks Force group (GTFG)) was established in 2015 under the State Committee for Investment and State Property Management of the Republic of Tajikistan. The activities of the secretariat of this Working Group are supported by the Secretariat of the Investment Council under the President of the Republic of Tajikistan. The working group has its own Rules of Procedure and Action Plan drawn up by its members every two years. The activities of the Working Group for 2015-2018 were aimed at raising awareness and increasing women's access to the necessary skills and knowledge, professional retraining of women, training in administration and business management, the development of handicrafts, ensuring access to finance, strengthening their role in agriculture, development of a regional network of business associations of women from Central Asia and Afghanistan.
The Working Group is monitoring of programs and projects concerning the support of women entrepreneurship development, as well as researches and reforms in the country. The reviews helping to identify successful experiences and gaps in this area, as well as learn from the implemented initiatives. The matrices resulting from the reviews helping coordinate efforts and eliminate duplication of initiatives to support women's entrepreneurship. Each member of the Working Group provides preliminary information to the Secretariat of the Working Group on the directions of their activities planned for the next two years. Based on the information received, the Secretariat draws up an Action Plan for the Working Group, which is reviewed and approved, and then distributed to all members to coordinate efforts to implement the activities of this Action Plan.
On 12 of Feb 2021, during the next meeting of GTFG, the Action Plan for period 2021-2023 will be presented and discussed.
UNDP is a member of the Gender Tasks Force group (GTFG). UNDP is closely worked with GTFG since 2015 in promotion the women entrepreneurship by supporting the conduction several Business Forums of Women Entrepreneurs, study tours and capacity building for women.
In 2021, UNDP will continue with provision its support towards the Women Entrepreneurship development through implementation of the Mentorship programme and provision grants for establishment the women-lead enterprises and creation the new jobs for women.
Promoting PPP
· UNDP closely worked with Center for Implementation of State Institution “Public-Private Partnership Projects” (PPP Center) by conducting trainings, development instructions, guides, organization study tour to learn relevant experience of Czech Republic on this sector and other capacity building activities. Also, UNDP supported Center in undertaking capacity development for PPP, reforms in the enabling environment, and PPP project development and supported organization of several events in the regions of Tajikistan.
· In 2019, UNDP supported PPP Center in development of 100 passports of priority projects to be implemented in the regions of Tajikistan. Also, UNDP supported in development of one pagers for implemented PPP projects and other visibility projects. Template of the pre-feasibility study for PPP projects for kindergarten and medical center are developed.
For 2021 and beyond UNDP is ready to continue partnership with PPP Center to develop the feasible projects for rural development and social development of vulnerable groups. Details and needs of SCISPM and PPP Center can be discussed further with the team.
Youth Entrepreneurship / Support to Start-up Ecosystem
· The role of youth in the country’s development should not be underestimated. Smart government policies for youth development can help to turn the demographic opportunity of a large young population into a competitive advantage of Tajikistan. This opportunity should not be wasted. We know of several bright examples in Tajikistan when empowered and educated young people became champions in different business and social endeavors. UNDP involves young men and women as critical stakeholders in its programs aimed at strengthening public-private dialogue, local development and youth economic empowerment.
· Since November 2016, UNDP, jointly with many partners, including the State Investment Committee, UN Volunteers, Business incubator Accelerate Prosperity, the Youth Entrepreneurs Club, the National Association of Women Entrepreneurs of Tajikistan, Serena Hotel, and others, has been supporting an innovative platform called “Start-Up Choikhona”, where young entrepreneurs get together to present innovative business ideas, matching these with potential investors and business partners, and network with each other. This initiative aims to build a functioning youth entrepreneurs’ ecosystem in Tajikistan, to promote start-up ideas and an entrepreneurial spirit among young Tajik men and women. During the 14 Start-up Choikhona events organized in different cities and regions of Tajikistan, including Dushanbe, Rasht, Sugd and Khatlon, more than 300 young people had the opportunity to present their start-up ideas to potential investors.
