Strengthening TSIs

TSIs such as government administrations, TPOs and other entities such as chambers of commerce or sector organizations, are a priority of ITC’s technical assistance activities. Because ITC has limited presence in partner countries, it relies on the sizeable network of TSIs to instill Export Impact for Good at the country and regional levels. TSIs are therefore recipients of technical assistance and vital partners in the delivery of the vast majority of work carried out by ITC. In 2011, ITC’s work with TSIs focused on four main areas: developing targeted global public goods for TSI development; providing tailor-made support for overall TSI performance; providing specialized support for targeted TSI services; and facilitating a holistic approach to the export development infrastructure in a sector, country or region.

GLOBAL PUBLIC GOODS FOR TSIs

TSI picture

As a small organization, ITC is unable to provide tailor-made solutions to all TSIs in partner countries. In 2010 and 2011, ITC was able to support directly 36 TSIs out of the total 964 operating in the developing world, each year. In order to broaden its reach beyond direct technical assistance, ITC develops and maintains a suite of tools that TSIs can use to improve their performance in servicing SMEs in developing countries.

In 2011, ITC improved its portfolio of global public goods, for roll-out in 2012. Three training modules designed to build TSI capacity have been completed and two more are currently under development. These modules focus on institutional assessment, strategy and management, service portfolios, networking and performance measurement. From 2012, the training modules will be integrated into programmes focused on strengthening TSIs.

Assessing organizational effectiveness is vital to improving TSI performance. In this regard, ITC provides TPOs with an independent perspective based on comparison with good business practices of similar organizations. Powered by a maturity-based model of analysis designed and developed by ITC, the benchmarking programme enables TPOs to identify their strengths and weaknesses while offering a flexible learning platform for improvement. Supported by ITF Window I funds, this resulted in an innovative pilot programme in 2011 focusing on a representative group of TPOs: MATRADE from Malaysia, PROEXPORT from Colombia, UEPB from Uganda, AUSTRADE from Australia, FINPRO from Finland and BEDIA from Botswana. The benchmarking methodology was agreed, inputs consolidated and specific tools designed and tested by the pilot TPOs. Their detailed feedback will guide full implementation in 2012 and the project will expand to wider audience of TSIs after 2013.

STRENGTHENING TSI PERFORMANCE

ITC provides solutions to improve the performance of TSIs in developing countries. In 2011, support was provided to a number of organizations, including Apex-Brasil, IPEX Mozambique, and the network of TSIs in Peru’s northern corridor regions.

Since 2009, ITC has advised Apex-Brasil in a number of areas prioritized by the agency. Two components of this tailor-made support, funded directly by Brazil, were concluded in 2010. In 2011, ITC assisted the organization in identifying strengths and weaknesses by mapping its products and services. A core team in the agency was trained to develop mechanisms for measuring service efficiency and effectiveness, and these skills were used in the development of a new corporate strategy aligned to desired outcomes for the exporter community.

Through its EnACT programme, ITC supported TSIs to optimize the efficiency and quality of services following the social, economic and political changes emerging from the Arab Spring. Most TSIs in the Arab region are positioning themselves to be in line with the new dynamics and adopting a role of outreach to the respective countries. Through EnACT, ITC worked with TSIs including ALGEX and ONA in Algeria, FTTC in Egypt, JEDCO in Jordan, FEDIC and Maroc Export in Morocco, and FTTC and ONAT in Tunisia.

To improve the operational and strategic management capacities of the Palestine Trade Centre, PALTRADE, ITC carried out an institutional assessment that led to the identification of capacitybuilding areas within the Centre. These needs will be addressed during 2012 through a mix of capacity-building training courses and networking interventions to link PALTRADE to other best-in-class TPOs. A client survey has been commissioned, with the assistance of ITC, to identify barriers to trade and what PALTRADE can do to help.

Up to the end of 2011, ITC formed part of a joint implementation team with UNIDO to improve the business environment and trade facilitation in Mozambique. ITC’s primary objective in this EUfunded project was to strengthen IPEX, the principal TPO of the country. IPEX leadership has been enabled to bring together public and private stakeholders behind a joint National Export Strategy, which awaits final approval by policymakers. The services of IPEX to the SME community in Mozambique have been strengthened through the provision of regular, relevant trade intelligence on a web-based platform, including information on packaging.

Intensive collaboration between TSIs, SMEs and policymakers took place in Peru during the update of the country’s national export strategy in 2009 and 2010. During this process, the need to strengthen business development services in the northern corridor region of Peru was identified by stakeholders. A three-year programme, funded by Switzerland, began in 2011 aiming to strengthen the capacity of local TSIs to provide services that address the needs of the region’s agri-food exporters. In 2011, the network of TSIs improved its business offering to local enterprises, as it was better able to identify their needs. Work is also underway to enhance the design and delivery of services. An informal consultation mechanism has been established to strengthen the dialogue with national authorities on structural problems that undermine the long-term export potential for the region. This will be consolidated going forward. The early achievements of this programme are a result of strong collaboration and active participation of private, public and academic institutions.

SPECIALIZED SUPPORT TO TSIs

In 2011, specialized support was provided in fields such as access to finance, legal aspects of foreign trade, quality management, trade intelligence and foreign trade representation.

In Zambia, ITC worked in partnership with the Zambian Development Agency and local banks such as Zanaco and Investrust to improve access to finance for exporting SMEs. Forty-five Zambian SMEs were able to develop bankable business plans and conduct sound financial management after receiving coaching through the partner TSIs. Local banks are now more aware of the business potential as well as the risks associated with SME loans, and are committed to faster processing and more accurate assessment of loan applications using dedicated tools.

In Haiti, ITC worked with public- and private-sector institutions to improve the management of the country’s participation in international treaties. In 2011, a country report on the legal framework for international trade was completed, and stakeholders defined 43 priority international conventions for the next biennium.

ITC contributes to the WTO’s STDF to improve the capacity of developing countries to meet export standards. In 2011, ITC assisted Nigeria in building the capacity of the sesame seed and shea butter sectors with regard to SPS measures, in partnership with the Nigerian Export Promotion Council. In the United Republic of Tanzania, the Horticultural Development Council established the infrastructure and scope of its future service delivery system in order to improve its standards and quality related business development services to the industry. This has positioned the council as the lead TSI in horticulture and tourism to address linkages between the value chains.

Enhancing the capacity of a country’s foreign service to represent its business interests has been a highdemand service from ITC. In 2011, improving the trade-promotion and export-development skills of foreign trade representatives formed part of a number of projects such as EnACT Algeria, the Programme d’Appui au Commerce et à l’Intégration Régionale (PACIR) in Côte d’Ivoire and NTF II in Bangladesh.

BUILDING THE INFRASTRUCTURE FOR EXPORT DEVELOPMENT

Strengthening all the TSIs within a selected value chain towards a common purpose enables a holistic approach to developing the soft infrastructure that supports trade promotion and export development in a country or region. This approach takes time and entails risk; however, there is much to be gained in terms of sustainability of results and local ownership. ITC employs this holistic approach to TSI strengthening in a number of its large programmes, including PACT II, NTF II and the All African Caribbean Pacific Agricultural Commodities Programme (AAACP).

The overarching goal of PACT II is regional integration through international trade within its three programme regions in Africa: COMESA, ECCAS and ECOWAS. Development of a regional structure of TSIs supporting a regionally integrated private sector is an important outcome for the programme. In each region, ITC assists so-called “apex TSIs” to establish a network of national and regional TSIs and to institute systems to manage for results. A TSI mapping system allows the apex TSIs to identify the expertise and synergies of TSIs in the network, and assess the network’s strengths and weaknesses. In 2011, institutional mapping was conducted in all three regions to varying degrees. The platform for the institutional networking structure was established in each region and will be administered locally. RBM tools were integrated into the operations of the secretariats and TSIs in the three regions. More information about PACT II can be found in the case story in this section.

The sector development programme funded by the NTF II focuses on enhancing the competitiveness of high-potential sectors in selected countries. This is achieved through strengthening the network of TSIs (general and sector-specific) to deliver improved export-related services to SMEs. For example, in 2011, TSIs in Bangladesh added a business-tobusiness matchmaking service to their service portfolio after successfully linking Bangladeshi SMEs in the information technology (IT) services sector to potential buyers in Europe.

In Uganda, general TSIs and those in the coffee sector are better able to manage for results, while deepening training and advisory services to SMEs. The capacities of coffee sector association NUCAFE were assessed, leading to a new strategic approach to its mission of improving the livelihoods of coffee farmers and farmer associations. A mixed team of international and national consultants surveyed NUCAFE farmer associations to identify their perceptions of the services offered and opportunities to create new services in the future.

In Senegal, the national TPO and horticultural sector associations have increased their specialization in trade information services for the mango sector and now provide advisory services in the area of contract farming. The Fresh Produce Exporters Association of Kenya has increased its specialization in advisory services on fruit trees and plans to integrate its learning into the organization after project completion. In South Africa, the Small Enterprise Development Agency is using knowledge and skills gained through an Export Mentorship and Advisory Training Programme to provide customized advisory services to SMEs to grow their export business. The South African Rooibos Council has developed a holistic approach to strengthen the strategic position of the industry to penetrate new markets. The Durban Automotive Cluster has added an “export readiness gap analysis” service which helps second-tier manufacturers of automotive parts identify weaknesses that are affecting their export competitiveness.

ITC has worked with women-owned enterprises in Peru, first through a project funded by Spain and now through the United Kingdom-funded Women and Trade Programme. Although only starting in 2011, the Peruvian TPO PromPeru is already able to offer specialized advisory services to SMEs in the alpaca sector. Through its work with ITC, PromPeru gained a network of contacts in the United States and enhanced expertise in alpaca garment design, promotion and marketing. From mid-2012 women alpaca entrepreneurs will be able to advance their design skills through a dedicated degree in textile design under an agreement reached with Instituto del Sur (ISUR) in Arequipa. This work has potential to position Arequipa as a world centre for alpaca clothing design. More information about this programme can be found in the case story in this section.

ITC is also working in partnership with Mexican TSIs to empower women-owned businesses producing silver and bead jewellery to transact business in the United States. Since mid-2011, selected companies have improved their knowledge of United States market requirements in terms of design and quality. ITC, in collaboration with Mexico’s Secretaria de Economía, will continue to provide assistance during 2012 to these companies to develop new jewellery lines and establish business linkages.

Strengthening TSIs in a regional value chain for sustainable export results was intrinsic to the EUfunded AAACP, which ended in 2011. This was particularly true for the strategy and sector development of the cotton, textiles and clothing sector in Africa, however, a holistic approach was also instituted for each of the agri-food commodity sectors in programme countries. The approach for cotton was to strengthen national TSIs and the regional network of TSIs supporting the African cotton business. In 2011, the national cotton associations of the United Republic of Tanzania, Uganda and Zambia improved their structure, governance and operations to improve effectiveness for business in the sector. Mozambique, Zambia, Zimbabwe and Malawi established a subregional cooperation arrangement on cotton called MoZaZiMa. The African Cotton Association, which promotes African cotton to Asian markets, endorsed a 2011–2016 business plan, enabling long-term effectiveness for African businesses. It also established a Comité de Commercialisation and defined its work plan. The benefits of these initiatives are likely to be continued with ITC’s support through a follow-up programme in 2012.

A regional approach to strengthening TSIs for SME development in Africa was also an objective of an EU-funded project to strengthen the network of business development service providers on the continent, with a focus on services for quality, packaging and supply-chain management. By strengthening the network of business development specialists in 2011, TSIs now have a more robust infrastructure of skills to provide specialist services to the SME community.