Technical Assistance for Small & medium Enterprises Development


Overview

  • Reference: P-LY-KB0-001
  • Approval date: 07/12/2010
  • Start date: 07/12/2011
  • Appraisal Date: 23/07/2010
  • Status: ApprovedAPVD
  • Implementing Agency: THE ACADEMY OF GRADUATE STUDIES
  • Location: TRIPOLI

Description

The Programme is divided into two inter-related components: 1) The first component consists of an Economic and Sector Work on SME development in Libya which will focus on the identification of opportunities and challenges for fast track and sustainable SME development in Libya; 2) The second component focuses on developing Capacity building activities to support SME development through a) the development of a training programme targeting public sector officials and Academy staff and to promote private sector & entrepreneurship; b) the development of a Centre for entrepreneurship to build capacity among existing and potential entrepreneurs,; c) the organization of a forum to bring together entrepreneurs from a range of businesses both locally and internationally; and d) the development of a wide range of activities facilitating the involvement of the Academy's students within private sector activities.

The Academy of Graduate Studies shall assume the role of the Project Executing Agency. It will be responsible for organizing, coordinating, monitoring and implementing the various components of the programme. The Executing Agency shall appoint a Program Coordinator, an Accountant, a secretary and a Procurement Expert, who will facilitate implementation and report on progress and potential problems. These four Officers shall be financed by the Academy of Graduate Studies. The Management Team of the Academy under the leadership of the Head of the Academy shall oversee and monitor the project implementation. The Academy will inform the National Planning Council (the highest planning authority in the country) on the development of all activities and outputs. The activities will involve cooperation with the ministry of industry, economy and commerce.

The program is estimated to be executed in 18 months starting in December 2010 and closing on July 30th, 2012.

The Executing Agency shall be responsible for keeping documents supporting implementation and disbursements as well as details of the accounts kept for the proceeds of the grant, especially as related to the special account. Quarterly status reports will be prepared by the Executing Agency. The disbursement reports will be made available to Bank's supervision missions. Upon the approval of the grant, the AfDB will launch the project. Subsequently, a supervision mission will be taken after 6 months of implementation, which will also review progress and disbursements. An experienced procurement advisor will also be recruited to assist the executing agency during its first 10 months of execution.


Objectives

The specific purpose of the programme is to deliver support with respect to SME and entrepreneurship training and development. The sustainability of the activities is guaranteed through the development of the capacity of the Academy of Graduate Studies to deliver such targeted support.


Rationale

1. Endowed with significant savings and capital surplus, Libya has not made use of Bank lending services after joining the AfDB in 1972. However, Libya and AfDB have recently engaged in enhanced cooperation. After the Bank President's visit to Tripoli, Libya, in December 2008, the Board of Directors approved the Libya Country Engagement Note in March 2009. This renewed engagement materialized through the co-financing of a multinational telecommunications project for the Regional African Satellite Communication Members and the delivery of advisory services to Libya's new Export Promotion Centre. The purpose of the proposed activity is to further consolidate the Bank's engagement with Libya by delivering demand-driven capacity-building and technical assistance in a sustainable manner and prepare the ground for future operations led by the private sector.

2.The operation is aligned with the objectives of MIC TAF, which is partly intended to address critical needs for capacity building, institutional strengthening and private sector development. The underlying argument is that SME development in the country has enormous potential, which is however largely limited by lack of policy consistency, and coordination among multiple agencies involved with SME development. The need for an "external support" and for a comprehensive analysis on SMEs leading to provide policy recommendations has therefore clearly been identified. In addition, despite the government's active support of private sector development through direct funding of entrepreneurs, future entrepreneurs still lack capacity building opportunities in areas such as entrepreneurship development, business management and network building and management. Furthermore, it appeared that students lack the opportunity to fully comprehend and embrace private sector prospects. The Bank in this context is well placed to support the development of the Libyan Private sector through technical assistance and trilateral cooperation activities.

3. The Academy of Graduate Studies, as a renowned knowledge institution and independent agent, has been identified as well placed to act as a powerful convener and facilitator, which can foster debate in the country among different actors. The Academy has both the capacity and capability to become a thriving centre for entrepreneurship and is ideally placed to deliver private sector and entrepreneurship-specific training programmes, host international events and manage the proposed Economic and Sector Work with select partners which will be a key element in determining the various components of the capacity building activities.


Key contacts

CASTEL Vincent Gabriel Pierre - ORNA


Costs

Finance source Amount
MICFUAC 579,780
GovernmentUAC 194,400
DeltaUAC 20
TotalUAC 774,200