Local Enterprise and Value Chain Enhancement Project—FINAL REPORT

Local Enterprise and Value Chain Enhancement Project—FINAL REPORT Local Enterprise and Value Chain Enhancement (LEVE) Project FINAL PROJECT REPORT LOCAL ENTERPRISE AND VALUE CHAIN ENHANCEMENT (LEVE) PROJECT Final Project Report Contract Number: 521-C-14-00001 Period: December 23, 2013– June 22, 2019 Prepared for United States Agency for International Development (USAID) Blvd. 15 Octobre Tabarre 41 Tabarre, Haiti Prepared by RTI International 3040 Cornwallis Road Post Office Box 12194 Research Triangle Park, NC, USA 27709- 2194 RTI International is an independent, nonprofit research institute dedicated to improving the human condition. Clients rely on us to answer questions that demand an objective and multidisciplinary approach—one that integrates expertise across the social and laboratory sciences, engineering, and international development. 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Unless otherwise noted, photos in this report are from RTI International. iii Local Enterprise and Value Chain Enhancement Project iii CONTENTS EXECUTIVE SUMMARY 1 PROJECT OVERVIEW 9 OBJECTIVES ................................................................................................................................................................. 9 USAID Guidelines ................................................................................................................................................. 10 APPROACH ................................................................................................................................................................. 12 General LEVE Approach ....................................................................................................................................... 12 Apparel Sector Approach ...................................................................................................................................... 13 Agribusiness Sector Approach .............................................................................................................................. 16 Construction Sector Approach .............................................................................................................................. 16 ACTIVITY SUMMARY BY OBJECTIVE ....................................................................................................................... 18 Objective 1 ............................................................................................................................................................ 18 Objective 2 ............................................................................................................................................................ 24 Objective 3 ............................................................................................................................................................ 30 Objective 4 ............................................................................................................................................................ 34 MONITORING AND EVALUATION RESULTS 35 JOB INDICATORS ....................................................................................................................................................... 35 FINANCIAL INDICATORS ........................................................................................................................................... 38 FIRM-LEVEL SUPPORT INDICATORS ....................................................................................................................... 45 ENABLING ENVIRONMENT INDICATORS ................................................................................................................ 48 WORKFORCE DEVELOPMENT INDICATORS .......................................................................................................... 49 SYNERGY INDICATORS ............................................................................................................................................ 51 SECTOR CONTRIBUTIONS ........................................................................................................................................ 53 GENDER AND YOUTH ................................................................................................................................................ 54 LESSONS LEARNED 56 FINANCIAL DISCUSSION 60 Total Expenditures ....................................................................................................................................................... 60 Strategic Investment Fund ........................................................................................................................................... 61 ANNEXES 63 Annex A. Activity List by Objective ............................................................................................................................... 63 Annex B. Strategic Investment Fund ............................................................................................................................ 99 Annex C. IPTT............................................................................................................................................................ 105 iv Local Enterprise and Value Chain Enhancement Project FIGURES AND TABLES List of Figures Figure 1. LEVE’s development hypothesis ................................................................................................................... 10 Figure 2. Jobs created in target sectors in designated economic corridors in Haiti, as measured by FTE (PL1) .................................................................................................................................................................... 36 Figure 3. Projected FTE through December 2020 (PL1) .............................................................................................. 36 Figure 4. Numbers of individuals with new or better employment, cumulative results, 2014–2019 (PL14) .................. 37 Figure 5. Projected new and improved jobs to be created through December 2020 (PL14) ........................................ 37 Figure 6. Number of new and improved jobs created (PL14) and amount of new FTE (PL1), by size of firm .............. 38 Figure 7. Annual percentage change in sales, 2015– 2018 (PL2) ................................................................................ 39 Figure 8. Annual percentage change in sales along value chain, 2015–2018 (PL6) .................................................... 39 Figure 9. Annual percentage change in investments, 2015– 2018 (PL3) ...................................................................... 40 Figure 10. Trend in overall value of sales, cumulative results, 2015–2019 (U.S. dollars) (PL2) .................................. 40 Figure 11. Trend in value of cumulative sales within value chain, cumulative results, 2015–2019 (U.S. dollars) (PL6) ....................................................................................................................................................... 41 Figure 12. Number of firms reporting sales increases, cumulative results, 2014– 2019 (PL5) ...................................... 42 Figure 13. Number of firms reporting sales increases, by firm size, 2015– 2019 (PL5) ................................................ 42 Figure 14. Cumulative value of investments made by LEVE-supported firms, 2015– 2019 (U.S. dollars) (PL3) .......... 43 Figure 15. Number of LEVE-supported firms reporting increased investments, cumulative results, 2014– 2019 (PL12) .................................................................................................................................................................. 44 Figure 16. Number of firms reporting increased investments, by firm size, 2015–2019 (PL12) ................................... 44 Figure 17. Number of LEVE-supported firms receiving short-term technical assistance (STTA), cumulative results, 2014– 2019 (PL9) .................................................................................................................................... 45 Figure 18. Number of LEVE-supported firms receiving STTA, by firm size, 2015– 2019 (PL9) .................................... 46 Figure 19. Number of times LEVE-supported firms improved management practices or introduced new technologies, cumulative results, 2014–2019 (PL10) .......................................................................................... 46 Figure 20. Number of times LEVE-supported firms improved management practices or introduced new technologies, by firm size, 2014– 2019 (PL10) ..................................................................................................... 47 Figure 21. Number of LEVE-participating microenterprises supported by a lead firm, cumulative results, 2014– 2019 (PL7) ................................................................................................................................................. 47 Figure 22. Percentage change in firms completing OCA, 2015– 2018 (PL21) .............................................................. 48 Figure 23. Number of organizations considered for OCA, cumulative results, 2014– 2019 (PL22)............................... 48 Figure 24. Cumulative numbers of advocacy activities, 2014–2019 (PL13) ................................................................. 49 Figure 25. Number of workforce providers reporting improved services, cumulative results, 2014– 2019 (PL2) .......... 50 Local Enterprise and Value Chain Enhancement Project v Figure 26. Percentage change in job placement rates, 2015– 2019 (PL15) ................................................................. 50 Figure 27. Numbers of individuals placed in jobs, cumulative results, 2014– 2019 (PL15) ........................................... 50 Figure 28. Numbers of individuals reporting improved skills, cumulative results, 2014– 2019 (PL25) .......................... 51 Figure 29. Numbers of individuals trained, cumulative results, 2014–2019 (PL18) ...................................................... 51 Figure 30. Number of complementary program activities coordinated and carried out, cumulative results, 2014– 2019 (PL24) ............................................................................................................................................... 52 Figure 31. Value of collaborative funding expended, cumulative results, 2014–2019, in U.S. dollars (PL23) .............. 53 Figure 32. Word map of responses from the LEVE internal survey .............................................................................. 56 List of Tables Table 1. Sales results by sector: Total values and percentages .................................................................................. 41 Table 2. Sales results by sector: Total values and averages per firm (U.S. dollars) .................................................... 41 Table 3. Value of private firms’ investments, by sector ................................................................................................ 43 Table 4. Number of firms reporting repeated investments over 1 to 4 years ................................................................ 44 Table 5. LEVE financial accruals through end of project, June 30, 2019 ..................................................................... 60 Table 6. SIF summary .................................................................................................................................................. 61 Table 7. LEVE’s cost per job (apparel multiplier applied) ............................................................................................. 62 Table B-1. Grants Awarded .......................................................................................................................................... 99 Table B-2. Activities Impacting Women ...................................................................................................................... 102 Table B-3. Activities Impacting Youth ......................................................................................................................... 104 vi Local Enterprise and Value Chain Enhancement Project ACRONYMS AND ABBREVIATIONS ACRONYM DEFINITION ADIH Association d’Industries d’Haïti AHEC Association Haitienne d’Entreprises dans la Construction AIBMRD Association des Irrigants de Bas Maître et Rive Droite AmCham American Chamber of Commerce in Haiti ANAPAAAH Association Nationale des Producteurs Agricoles pour l’Avancement de l’Agriculture en Haïti APS Annual Program Statement AREA Appui à la Recherche et au Développement Agricole Project AVANSE Appui à la Valorisation du Potentiel Agricole du Nord, pour la Sécurité Économique et Environnementale Project BMST Bureau de la Médiatrice Spéciale du Travail CBTPA Caribbean Basin Trade Partnership Act CCIN Chambre de Commerce et des Industries du Nord CCINE Chambre de Commerce et d'Industrie du Nord-Est CDRO Capacity Development Recipient Organization CETAI Centre de Transformation Agro- Industriel CFI Centre de Facilitation des Investissements CH Caribbean Harvest CHAGA Chambre d'Agriculture et des Professions d’Haïti CHAPE Centre Haïtien d’Appui et de Promotion des Entreprises CLP Chanje Lavi Plantè Project CMAH Chambre des Métiers et de l’Artisanat d’Haiti CNIAH College National des Ingénieurs et Architectes Haïtiens COR Contracting Officer’s Representative Local Enterprise and Value Chain Enhancement Project vii CTMO-HOPE Commission Tripartite de Mise en Œuvre de la Loi HOPE CWB Canadian Welding Bureau DOT Design, Organization, and Training (center) EDF Électricité de France EDN Etoile du Nord S.A. EMAVA Ecole Moyenne d’Agriculture de la Vallée de l’Artibonite EMMP Environmental Mitigation and Monitoring Plan EOI Expression of Interest EPCH École Professionnelle du Cap- Haïtien EPFV École Professionnelle Fondation Vincent EPPLS Entreprise Publique de Promotion de Logements Sociaux EPSE École Professionnelle Saint-Esprit EPSJA École Professionnelle Saint Joseph Artisan FTE Full-time equivalent (positions) FY Fiscal Year FX Foreign Exchange GMC Global Manufacturers and Contractors GOH Government of Haiti HAC Haitian Apparel Center HACCP Hazard Analysis and Critical Control Points HICD Human and Institutional Capacity Development HOME Home Ownership and Mortgage Expansion program HOPE/HELP Hemispheric Opportunity through Partnership Encouragement / Haiti Economic Lift Program ICC International Codes Council IDB Inter-American Development Bank IDEJEN Initiative pour le Développement des Jeunes en Dehors du Milieu Scolaire viii Local Enterprise and Value Chain Enhancement Project INDEPCO Institut National pour le Développement et la Promotion de la Couture INFP Institut National de Formation Professionnelle IPTT Indicator Performance Tracking Table LEAD Leveraging Effective Application of Direct Investments LEVE Local Enterprise and Value Chain Enhancement project M&E Monitoring and Evaluation MCI Ministère du Commerce et de l’Industrie MPBA Mouveman Peyizan Ba Atibonit MSME Micro, Small, and Medium Enterprises MTPTC Ministère des Travaux Publics Transports et Communications NICRA Negotiated Indirect Cost Rate Agreement OCA Organizational and Capacity Assessment PIC Parc Industriel Caracol PIM Parc Industriel Metropolitain PIRS Performance Indicator Reference Sheets Q Quarter RFP Request for Proposals RTI International Registered trade name and trademark of Research Triangle Institute SARA Stand Alone Roads Activity SHAISA Société Haïtienne Agro-Industrielle SIF Strategic Investment Fund SISA Star Industries S.A. SMASH Smallholder Alliance for Sorghum in Haiti SMEs Small and Medium Enterprises SONAPI Société Nationale des Parcs Industriels STTA Short-term Technical Assistance Local Enterprise and Value Chain Enhancement Project ix TASC Textile and Apparel Service Center TRANSAGRI Société Haïtienne de Transformation des Produits Agricoles TVET Technical and V ocational Education and Training USAID United States Agency for International Development USG United States Government WINNER Watershed Initiative for National Natural Environmental Resources Project 1 Local Enterprise and Value Chain Enhancement Project 1 EXECUTIVE SUMMARY The United States Agency for International Development (USAID)-funded Local Enterprise and Value Chain Enhancement (LEVE) project is living proof that when a supportive ecosystem is developed for micro, small, and medium enterprises ( MSMEs), they will flourish and grow, creating contagious enthusiasm in the process. Despite ongoing personal insecurity, political instability, a depreciating currency, and weak supportive environment , LEVE’s partners showed a willingness and commitment to advance and grow, building trust along the way. Although it is not reasonable to expect another donor or the Government of Haiti (GOH) to replicate the project, LEVE has shown the potential should future efforts be directed at this sector of the economy. LEVE’s success is due entirely to the commitment and efforts of Haitian private sector actors with whom the project worked (see Celebrating the Legacy) and is best summarized by Jene Thomas, USAID Mission Director to Haiti, who stated in April 2019: “There is so much economic, partnership, and trade potential in Haiti, and LEVE worked tirelessly to improve the competitiveness of selected value chains in the three sectors. The project’s success is deeply rooted in the leadership of the private sector firms and business-people who have led these value chain upgrading efforts.” Using a facilitative, demand-driven approach, combined with adaptive management, LEVE achieved most of the goals and objectives that were set out at the beginning of the project. In terms of overall impact for Haiti, LEVE produced a benefit-cost ratio of 3.04:1 1 , i.e., for every dollar that the US Government (USG) invested in Haiti, $3.04 dollars were generated in the Haitian economy. This is the equivalent of a 35.1% internal rate of return 2 and a net present value of $47.8 million in 2014 US 1 Woollacott, J. C., Walsh, A. C., & O’Connor, A. C. (2019, June). LEVE: Benefit Cost Analysis Report . Washington, DC: USAID 2 Target is 12%. Belt, J. A. B. (2014). Strengthening cost -benefit analysis in USAID, 2011–2013: Lessons learned and future directions. Retrieved from https://pdf.usaid.gov/pdf_docs/PA00JQSP.pdf . 2 Local Enterprise and Value Chain Enhancement Project dollar (USD) equivalents. LEVE produced such a significant impact because of the creation of formal sector jobs that the project supported, primarily in the apparel sector (93%), which in the current socio-political environment holds the most potential for formal job creation in Haiti. In addition, for each job created in the apparel sector, another 0.28 of a job was created in the supply chain and 0.33 of a job was created as a result of the increased purchasing power of the apparel sector workers in providers of goods and services. 3 Growth in this sector also provides desperately needed foreign currency, as well as multimillion investments in buildings, industrial parks, and ports. USAID’s choosing of this sector proved to be a key driver of return on investment for the LEVE project, for the Haitian people, and for the Haitian economy. The cost per job created in the apparel sector was also the lowest of the sectors at US$422 per job, as the main input was training. This compared to over US$8,000 per job in the agribusiness sector, which required more investment in technology, equipment, and technical assistance, and substantially increased the cost of creating a job. The agribusiness sector was made up of mostly MSMEs, which have a much more limited access to capital than larger apparel exporting firms. Objective 1: Enable MSMEs to engage with other value chain actors to mutually create value LEVE was successful in strengthening MSMEs and their respective value chains in the process. Although LEVE did not invest directly in microenterprises, the lead firms— large firms and small and medium enterprises (SMEs)—worked with more than 1,900 microenterprises (51% women owned) as part of their supply chains. Eighty percent of the Strategic Investment Fund (SIF), used by LEVE to fund technical assistance, capacity building, training, and co-funding of investments, went to 93 SMEs: an average of more than US$100,000. To get there, LEVE reviewed close to 300 requests for support of all types. The fact that LEVE continued to work with stakeholders throughout the life of the project resulted in numerous occasions to link stakeholders through sector networking events, communications, informal meet-and- greets, commercial sales events, and capacity building events, including business coaching. Through these frequent encounters, value chain stakeholders got to know each other, eventually built trust, resulting in business collaboration (see Strengthening Value Chains). 3 Woollacott, J. C., Walsh, A. C., & O’Connor, A. C. (2017). LEVE: Measuring job impacts in the Haitian apparel sector. Washington, DC: USAID Creating Linkages to the End! At LEVE’s final close-out event, stakeholders continued to make deals. In May 2019, at the Karibé Hotel, several stakeholders reported that they had made commercial contacts: ♦ Mas Akansyl did not know that Le Jourdain, an SME apparel firm, was located in Cap-Haïtien. Mas was making uniforms for support staff in the factories but were using commercial resources to do so. When they learned that Le Jourdain made uniforms, they agreed to engage to see what Le Jourdain could do for them, creating a large firm and SME linkage. ♦ ATEVERT, a microenterprise small designer from the north, has a sideline business distributing snacks, but import their product from the Dominican Republic. When tasting COHAVETPA’s line of snacks, the two firms entered into an agreement to start sending samples up to the north to test market acceptance. ♦ SONAC, a seafood exporter whose proposed activity with LEVE was rejected for environmental issues, used the interaction with LEVE to prepare a request to the Fonds de Développment Industriel, for financing to upgrade their export activities. ♦ Digneron Manufacturing undertook a solar energy feasibility study to run a manufacturing facility with LEVE’s support. At the event, they met Mas Akansyl, who were interested in doing the same. The two firms agreed to collaborate in moving forward with this initiative. Local Enterprise and Value Chain Enhancement Project 3 Activities with the small designers resulted in strengthening a critical mass of primarily women- owned small businesses, with several of them developing, producing, and marketing their products together (see Small Designers). In the agribusiness sector, the tomato, parboiled rice (see Moulen nan notè), and sorghum value chains were all positively impacted. SMEs producing finished consumable products for retail directly to the public or through supermarkets—again primarily women- owned—increased their collaboration through common activities like food security and safety workshops, Salon Konsomé Lokal , and business coaching; several begun sharing production processes and exchanging ideas. LEVE’s integrated approach to strengthening particularly MSMEs, included not only traditional financial support and capacity building, but important access to international expertise in product design, production processes, and standards. Although individual firms identified individual needs, LEVE’s assessments and work with other firms in the value chain showed that these were common needs. As such, the information from these interventions was shared with value chain stakeholders through workshops, one- on-one consultations, and communication, spreading the impact and cost. Examples include training of apparel sector mechanics, design and production of apparel items, dying processes for apparel manufacturers, strategic development of full-package systems, food safety and security – Hazard Analysis and Critical Control Points ( HACCP), construction industry standards, and introduction to new building methods. Sector events, such as the construction fair, MATCON; the agri-food fair, Konsomé Lokal; and the skills competition, Olympiad; also spread impact and information. In addition to providing direct support to firms, LEVE recognized the importance of working in the enabling environment; as many of Haitian firms’ challenges lie outside of their controllable interests. These challenges include lack of affordable financing, lack of business promotion and learning environments, lack of professional codes and standards, and lack of representation at the political decision- making levels. LEVE supported a number of organizations to promote longer-term change, several of which will have lasting impact: the extension of Hemispheric Opportunity through Partnership Encouragement / Haiti Economic Lift Program (HOPE/HELP), creation of an apparel and textile committee within Association d’Industries d’Haïti (ADIH), promotion of locally grown products through Salon Konsomé Lokal, promotion of construction standards through the Plumbing Code and MATCON, and advocacy for the agribusiness sector through Chambre d'Agriculture et des Professions d’Haïti (CHAGA). Objective 2: Increase MSME access to a productive labor pool with relevant skills and competencies One of LEVE’s mandate s was to strengthen workforce service providers (technical and v ocational education and t raining [TVETs]). Despite a vocational education system that had few linkages to employers, LEVE stimulated the emergence of activities that linked TVETs with labor demand for both the construction and apparel sectors. In total, close to 6,000 Haitians received training or improved their skills through LEVE’s activities through these initiatives. In the construction sector, LEVE was able to link TVETs, Canado Technique, Ecole Professionnelle Saint Esprit, Ecole Professionnelle Fondation Vincent, Ecole Professionnelle du Cap Haitien, Ecole Professionnelle Saint Joseph Artisan, to construction companies in several trades, such as welding, plumbing, masonry, carpentry, and solar installations. In addition, LEVE worked with these TVETs to develop job and internship placement activities, supporting outreach to the business community, as well as developing lists of alumni so that TVETs could track the success of their graduates, a first for Haiti. Finally, through events such as workshops and Labor Day celebrations (May 1), LEVE disseminated these examples to inspire other firms to do similar activities. 4 Local Enterprise and Value Chain Enhancement Project In the apparel sector, LEVE was successful in developing a public-private- partnership between ADIH and Société Nationale des Parcs Industriels (SONAPI) to deliver training to the apparel sector—the Textile and Apparel Service Center (TASC)—within the Metropolitan Industrial Park of Port-au-Prince (see photo below). TASC was set up as a mixed model that delivers trainings when firms are ready to pay for it, and that can undertake small commercial production runs when there is no training activity going on. Given that the growth of the sector is limited by political instability and insecurity, the rate of growth is difficult to predict. Therefore, the TASC needs to be able to generate other forms of revenue to be sustainable. Although this started occurring under LEVE, ADIH will have to continue to secure outside funding to keep the TASC open and operational. One of LEVE’s most promising and well-received activities was the Skills Olympiad, which was held in conjunction with MATCON in 2015, and as a stand- alone activity in 2017. Enthusiastically welcomed by TVETs and industry alike, six schools and 90 students participated in these two events in three skills – electricity, plumbing and masonry. Several students received job offers and schools used the publicity of being a champion to increase their enrollment. During the 2017 Olympiad, LEVE aligned the activity with international standards by collaborating with WorldSkills USA secure the attendance of Kayleen McCabe, a recognized expert and television personality from the DIY Network in the United States. Despite these two very successful and productive events, including being able to find commercial sponsors, LEVE was not able to secure a willing Haitian partner to continue to organize and sponsor similar Olympiads in latter project years, or future post-project project years (see Olympiad). Objective 3: Improve the sustainability of Haitian organizations serving target sectors and corridors This objective focused on building the internal capabilities of Haitia n firms and organizations. While (primarily) international experts provided technical consultations delivered under Objective 1, Haitian service providers provided capacity building to improve management and administrative shortcomings. Planned as recurring workshops and linked with ongoing firm-level support, these accounting, fiscal management, business planning, and bookkeeping services, helped build the capability of the MSMEs to better manage their resources, production processes, and growth that Local Enterprise and Value Chain Enhancement Project 5 resulted from the support that they received from LEVE. As an immediate result, many of these MSMEs reported consistently higher earnings year-over-year. An exciting activity was the impact that business coaching could have upon these small firms. Often one-person operations, these MSMEs started as an artistic passion or hobby, which morphed into a commercial enterprise. However, the managerial, planning, and visionary skills of the entrepreneurs were still challenged. Starting in late 2017, LEVE tested the concept of business coaching for six SMEs. After tweaking the approach, the project extended this activity to 15 SMEs by closeout. The observation was that the coaching served to coalesce the other types of LEVE support, and produced a result that was greater than the simple sum of the parts. Although difficult to quantify, and not included in the overall calculation of return on investment, it is best explained by the business owners who received the coaching (see Strengthening Haitian Companies Through Business Coaching). One of the most notable successes of LEVE’s capacity building activities was the mentoring of Papyrus S.A. The collaboration with RTI started in 2012 with the preparation of the proposal for USAID, where Papyrus was allocated the responsibility of managing the delivery of local capacity building activities (Objective 3), while being one of the target local firms to eventually bid on and win USAID and other projects (e.g., USAID Forward). Papyrus both implemented and received capacity building under the project. Success was not slow in coming; during the life of the LEVE project, Papyrus was successful in winning one USAID cooperative agreement, Konbit, for US$7.5 million, to continue building local service providers and organizations, and a second contract worth CDN$13 million with Global Affairs Canada to upgrade the maize value chain in Haiti. Haiti now has a woman- owned Haitian firm that is recognized by USAID and other donors as a credible implementer of complex long-term development initiatives. Objective 4: Identify and improve synergies among existing USAID activities. This objective ensured that LEVE collaborated with other projects and initiatives. LEVE was successful in finding ways to collaborate and complement the efforts of others, reducing duplication of efforts and taking advantage of unfinished activities throughout the three sectors. LEVE successfully collaborated with several USAID projects, including Chanje Lavi Plantè (CLP), Watershed Initiative for National Natural Environmental Resources (WINNER), Smallholder Alliance for Sorghum in Haiti (SMASH), Appui à la Recherche et au Développement Agricole (AREA), Leveraging Effective Application of Direct Investments (LEAD), and Home Ownership and Mortgage Expansion (HOME). The project also collaborated with several non- USAID projects, such as with Swiss Aid on workforce development, studying formalization of SMEs with the Programme d’Appui National à la Structuration de l’Entrepreneuriat Haïtien ( PANSEH) project, funded by Global Affairs Canada, and with the Inter-American Development Bank (IDB) and KOICA on workforce training at the Caracol Industrial Park. In total, LEVE collaborated with 37 other donor-funded activities. Graduating a Haitian Firm to a USG Negotiated Indirect Cost Rate Agreement (NICRA) The quote below from Steve Kroll Associates, who helped Papyrus obtain their NICRA, best summarizes the reasons for success: “SKA has participated in numerous RTI/LEVE [project]- funded engagements with Papyrus over a 5-year period. The evolution of the organization has been exceptional and more than exceeded expectations for a ‘foreign organization’ just beginning working with the USG. The key ingredient has been that Papyrus was an eager participant in soaking up knowledge and implementing recommendations during every phase of the organization’s growth cycle. Papyrus grew from a small to a mid- size organization very rapidly. As this growth was occurring, Papyrus had to make major adjustments to many of its administrative operations, including human resources, accounting, finance, and procurement. With the assistance of the LEVE [project] , Papyrus was able to address each of these critical and potentially destructive ‘inflection points’ with a strategic vision and implementation plan to move to the next step without losing momentum.” 6 Local Enterprise and Value Chain Enhancement Project As part of Objective 4, LEVE also tracked activities with the GOH. Although LEVE had no official GOH counterpart, it engaged with key public sector actors that supported the three sectors: Institut National de Formation Professionnelle (INFP), Ministère du Commerce et de l’Industrie (MCI), SONAPI, Ministère des Travaux Publics, Transports et Communications (MTPTC), Bureau de standards, Commission Tripartite de Mise en Œuvre de la Loi HOPE CTMO-HOPE, Bureau de la Médiatrice Spéciale du Travail (BMST), Banque de la République d’Haiti (BRH) and Centre de Facilitation des Investissements (CFI). Unfortunately, collaboration with what logically would have been LEVE’s counterpart, the MCI, was not successful as the Minister and key staff changed five times during the life of the project. There was some success collaborating with entities like INFP, CTMO -HOPE, MTPTC, and SONAPI; however, working with the GOH requires a long timeline, with the precondition that there is early agreement of common goals between USAID and the GOH. Despite the multiple turnovers, the MCI supported of the work being realized by the project, with Ministers appearing at several events – MATCON, TASC, etc. None the less, LEVE was successful in launching several activities in collaboration with the GOH which can be viewed as strong wins. President Jovenel Moïse visited several LEVE partners to see first-hand the work that was being done to foster economic development throughout the country – Société Haïtienne Agro-Industrielle (SHAISA), Moulèn Nan Notè, Caribbean Food Manufacturing (CFM), Association Nationale des Producteurs Agricoles pour l'Avancement de l'Agriculture en Haïti (ANAPAAAH) and Digneron Manufacturing. The LEVE team was able to meet with the Governor of the Haitian Central Bank on several occasions to discuss programmatic priorities. And the project team continued working diligently through to the last week when the new Haitian National Plumbing Code was officially handed over to the Ministère des Travaux Publics, Transports et Communications (MTPTC). Monitoring and Evaluation LEVE came close to achieving targets on most of its key indicators. For jobs created, LEVE supported the creation of 8,457 jobs (10,127 with the apparel sector multiplier), and achieved 13,921 full-time equivalent (FTE) positions, just short of the 14,000 FTE target. Applying the apparel sector multiplier to FTE would place the FTE achieved at 17,628, just short of the initial target of 18,000 FTE. Before closing the project, LEVE was given the figures for what the larger apparel firms intended to do by December 2020, and these would cause the FTE to exceed 30,000 and jobs created 9,807 (both without applying the apparel sector multiplier). By sector, 46 firms contributed to the FTE indicator—26 apparel, 17 agribusiness, and 3 construction—and 83% of the jobs were created by four lead firms (Global Manufacturers and Contractors [GMC], Mas Akansyl, Digneron, and H&H), with another 5% coming from the agribusiness sector. These results support the choice of focusing on the apparel sector as the major generator of formal employment in the Haitian economy, without which the targets would not have been attainable; and al so put in doubt the ability to create massive employment through the agribusiness sector. By firm size, nine large firms contributed 91% of the FTE and 89% of the jobs; 27 SMEs contributed 8% of the FTE and 10.1% of the jobs; and 12 microenterprises contributed 1% of the FTE and 0.1% of the jobs. This underscores the reality that it was easier to achieve massive job creation working through labor intensive industries like the apparel sector; whereas trying to get massive job creation out of MSMEs is a longer term and more capital-intensive process. Sixty-nine percent of the jobs created were filled by women; and a large percentage of the jobs, particularly in the apparel sector would have been for youth (age cut-off of 24). Local Enterprise and Value Chain Enhancement Project 7 For its financial indicators, LEVE surpassed the growth targets for percentage annual change in sales per firm, percentage annual change in sales within value chains, and percentage annual change in investments. However, for numbers of firms with increased annual change in investments and increased annual change in sales, LEVE fell short of the targets, recording 54 against a target of 90 for the former, and 316 against a target of 524 for the latter. Seventy-eight percent of the firms recording better annual sales were MSMEs. Many firms were not initially able to provide LEVE with complete financial statements; a shortcoming that LEVE spent a lot of effort to address; while for investment, firms do not usually invest each year, rather they usually wait for the payback period, before embarking upon new investment. Although LEVE did not target microenterprises, the activities implemented in the agribusiness value chains particularly impacted a large number of microenterprises, mostly in regard to supply chains. LEVE surpassed the target of 1,250 microenterprises, reaching 1,918 by the end of the project. In the area of workforce development, LEVE strengthened 24 TVETs, short of the target of 41. Reasons for this shortcoming are explained throughout this report. However, in terms of improving placement rates for newly trained employees, LEVE easily surpassed the target; with 2,332 trainees placed, 73% of whom were women. For both numbers of workers trained and number of workers with improved skills, LEVE surpassed the targets of 4,479 and 3,909 by 5,959 and 5,835, respectively. Lessons Learned As part of LEVE’s ongoing learning system, the team held a retreat in May 2019 to capture lessons learned during the project’s lifetime. The items that were attributed to LEVE’s success were letting the firms lead the way (facilitated approach); having a flexible approach to work planning (adaptive management); being in constant touch with the market (networking); using science and up- to-date information on which to base decisions (evidence- based decision- making); and constantly striving to introduce new ways of doing things, new technology, and new ways of thinking (innovation). In addition, the team considered that the value chain approach caused the activities to be tightly focused and that the integration of capacity building was critical to consolidating and amplifying the impact of other forms of support that was provided. On the challenges side, time was considered to be the one commodity that worked against success, as it is the key component when trying to change behavior. Bureaucracy, particularly with the GOH and USAID Environmental Mitigation and Monitoring Plan (EMMP) approval process, caused unreasonable delays in the implementation of activities. Monitoring and evaluation was difficult under a facilitated project, as traditional norms and standards were challenged, as was the inability to identify capable Haitian monitoring and evaluation expertise. Finally, the lack of commitment and engagement of the GOH was considered to be both a major challenge and a major disappointment to the team. In terms of the choice of sectors, while apparel was a controversial choice, but it was also the sector that drove job creation. This allowed LEVE to focus on strengthening SMEs, without having to be overly concerned about reaching the job creation targets. Focusing on the transformation of agricultural products proved that this driver is needed to strengthen the agricultural sector and agricultural productivity, with the only caveat being the need to find a more efficient way to deal with the approval of EMMPs. The construction sector allowed LEVE to focus on building the linkages between TVETs and commercial construction firms; and to introduce norms and standards. As is depicted in the word- map below, LEVE was able to address a broad range of potential challenges that translated into better lives for thousands of Haitians. More sustainable jobs were created and opportunities increased for MSMEs, which resulted in sustained economic impact. 8 Local Enterprise and Value Chain Enhancement Project A critical piece of LEVE’s success was the vision and commitment of USAID Haiti, in particular the LEVE Contracting Officer’s Representative (COR). LEVE was a unique and very different project, not only for Haiti, but worldwide. The RTI team embraced this project because of its potential to be a break-through initiative. With USAID’s support, understanding, and willingness to take risks, LEVE succeeded in being innovative and in showing what the Haitian private sector can do when it is given a dynamic and supportive ecosystem in which to operate. Furthermore, collaboration between USAID and LEVE was noteworthy, as witnessed by RTI’s participation in the broader USAID learning agenda concerning adaptive management, calculation of labor multipliers and calculation of return on investment. The success of the project would not have been possible without the quality and intensity of the relationship between USAID and the LEVE team. Thank-you. Local Enterprise and Value Chain Enhancement Project 9 PROJECT OVERVIEW OBJECTIVES 4 The United States Agency for International Development (USAID)-funded Local Enterprise and Value Chain Enhancement (LEVE) project was awarded to RTI International in December 2013. It officially ended June 22, 2019, after receiving a 6-month extension in 2018. LEVE’s overarching objective was to increase employment in Haiti by supporting micro, small, and medium enterprises (MSMEs) in selected value chains. The primary sectors targeted were agribusiness, apparel, and construction, along with secondary, or ancillary, sectors that strengthened the viability of the primary sectors. LEVE was expected to contribute to employment generation in the selected sectors across three geographic corridors: Port-au-Prince (Western province), Saint-Marc corridor (Arcadins coastline), and Cap- Haïtien (north corridor). Note that, initially, the project was instructed not to undertake any agribusiness activities in the north due to the presence of another USAID-funded project, Appui à la Valorisation du Potentiel Agricole du Nord, pour la Sécurité Économique et Environnementale (AVANSE). 5 LEVE was responsible for creating more inclusive and productive value chains in the above sectors and corridors that were supported by a productive labor pool, which had the relevant skills and competencies. LEVE was also tasked with helping to increase the number of firms in the targeted value chains that achieved financial benefits as a result of technical assistance and capacity-building activities from the project. These results were attained through improvements in net income and a net increase in the number of jobs created as a result of value chain enhancements and improvements in operations at the individual firm level. The project utilized a demand- driven value chain approach to understand the underlying market system from input suppliers to end-market buyers; the support markets that provide technical, business, and financial services; and the business environment. The project aimed to improve the competitiveness of specific sectors that had growth potential and to improve the quality and efficiency of goods and services, with the expectation that employment for Haitian citizens, including women and youth, would be expanded. This engagement contributed to the US Government’s (USG’s) overarching goal of “a viable and economically stable Haiti.” 6 The development hypothesis underpinning LEVE is shown in Figure 1. 4 This section is taken directly from the LEVE contract, with modifications made by the project for the context of this report. 5 In 2017, the corridor restriction was modified to allow LEVE to work throughout Haiti, except for agribusiness activities in the northern corridor. 6 Assistance Objective under USAID’s Fiscal Year (FY) 2010–2015 Results Framework. 10 Local Enterprise and Value Chain Enhancement Project Figure 1. LEVE’s development hypothesis The project’s key success indicators were the number of jobs created, the increase in firm-level sales, and the increase in firm-level investment in the targeted value chains. LEVE responded to the following four USAID objectives: • Objective 1: Enable MSMEs to engage with other value chain actors to mutually create value. Result 1: Greater integration of MSMEs in selected value chains Result 2: Binding constraints and key opportunities in selected value chains addressed • Objective 2: Increase MSME access to a productive labor pool with relevant skills and competencies. Result 3: Improved skills and competencies of labor pool in target sectors Result 4: Workforce organizations that are more responsive to private sector demand • Objective 3: Improve the sustainability of Haitian organizations serving target sectors and corridors. Result 5: Capacity of Haitian organizations strengthened • Objective 4: Identify and improve synergies among existing USAID activities. Result 6: Synergies leveraged to enhance results USAID GUIDELINES LEVE’s approach was framed by cross-cutting elements and guiding principles, as determined in the contract with USAID. The Agency chose the agribusiness, apparel, and construction sectors for [... middle sections omitted for long document ...] Local Enterprise and Value Chain Enhancement Project 101 Table B-1. Grants Awarded Grantee Gender Youth Approved Amount Date Approved Date Signed Amount Disbursed Peinture Caraibe $24,850 2/3/2015 2/13/2015 $25,775 ProUNIQ $31,557 11/17/2015 1/22/2016 $31,557 Rebuild Globally Haiti S.A. X $50,000 6/1/2018 6/7/2018 $50,000 Sandilou X $24,537 3/10/2015 4/2/2015 $23,089 Sandilou II X $48,306 6/22/2017 6/22/2017 $48,306 SHAISA $300,000 11/7/2016 12/13/2016 $300,000 Simbi X $29,100 5/4/2015 5/22/2015 $28,819 SISA S.A. X $57,000 6/24/2016 6/29/2016 $57,000 Telfils Café Lux $80,000 2/19/2019 2/27/2019 $70,824 Tisaksuk X 38,910 1/18/2019 1/31/2019 $39,155 Transagri $58,400 11/14/2017 4/12/2017 $58,400 Vieux Chardo $65,000 1/25/2019 2/22/2019 $64,695 Wild and Fierce Children Wear X $56,000 4/21/2017 4/24/2017 $55,961 Women of Milot X $85,000 2/2/2016 2/26/2016 $84,999 Your Size X $23,450 3/11/2015 3/20/2015 $24,049 TOTAL $6,311,069 $5,934,484 102 Local Enterprise and Value Chain Enhancement Project Table B-2. Activities Impacting Women Activity Gender Impact GRANT STTA SUB Activity TOTAL ADIH - TASC, Advocacy, Capacity Building Majority women employees in apparel industry $268,667 $173,571 $5,229 $16,841 $464,308 AGA Print Majority women employees $250,000 $250,000 AMPHORE Majority women employees $51,573 $5,423 $9,649 $66,645 Atelier Calla Woman-owned enterprise $22,381 $17,920 $40,301 Ateliers de Vertières Woman-owned enterprise $47,134 $47,134 Ayiti Natives (APS candidate) Woman-owned enterprise $164,378 $40,080 $204,458 Belzeb Woman-owned enterprise $82,000 $10,362 $17,920 $110,282 Caribbean Craft Woman-owned enterprise/Majority of employees are women $23,900 $52,350 $9,649 $55 $85,954 Citadelle Manufacturing Majority women employees $11,763 $124,458 $136,221 Créations Dorées Woman-owned enterprise / Majority of employees are women $35,015 $9,649 $44,664 Créations Pascale Théard Woman-owned enterprise / Majority of employees are women $193,736 $46,946 $240,682 Délices Tropicales Woman-owned enterprise $88,352 $44,881 $3,133 $136,366 Design Operations and Training (DOT) Woman-owned enterprise $112,535 $167,516 $3,000 $283,051 Digneron Majority women employees $280,000 $29,920 $309,920 Fondasyon Klere Promote Women Entreprenuers $3,500 $3,500 GMC (lead firm); other factories and Canado Technique Majority women employees $148,337 $173 $148,510 Local Enterprise and Value Chain Enhancement Project 103 Table B-2. Activities Impacting Women Activity Gender Impact GRANT STTA SUB Activity TOTAL Groupo M Majority women employees $9,628 $9,628 H&H Majority women employees $150,000 $150,000 Haiti Premier Apparel Majority women employees $151,657 $151,657 Hansae (Through TASC) Majority women employees $0 INDEPCO Training women for H&H $267,908 $267,908 Konsomé Lokal Majority women employees $50,000 $101,554 $151,554 Le Jourdain Majority women employees $21,947 $3,775 $25,722 LIFE Majority women employees $351,130 $22,700 $373,830 Maison Menagère Woman-owned enterprise $32,370 $32,370 MAS Akansyl Woman-owned enterprise $225,000 $225,000 Mejeanne Couture Woman-owned enterprise $68,874 $10,000 $78,874 Moulin nan notè Women-owned enterprise $335,000 $3,160 $338,160 Papyrus Woman-owned enterprise $19,816 $8,606 $96,129 $124,551 Rebuild Globally Haiti Woman-owned enterprise $50,000 $38,754 $88,754 Sandilou Woman-owned enterprise $71,395 $25,373 $44,881 $141,649 Simbi Woman-owned enterprise $28,819 $12,443 $41,262 Star Industries Woman owned processing firm $57,000 $12,443 $3,185 $72,628 Sunny Iron Crafts Woman-owned enterprise $17,920 $17,920 Tisaksuk Woman owned processing firm $39,155 $8,700 $9,649 $57,504 Village la Différence Trained 50 women in sewing $86,299 $86,299 Wild and Fierce Woman-owned enterprise $55,961 $55,961 Women of Milot Woman owned enterprise; formalizing cottage industry of 200 women sewers $84,999 $84,999 104 Local Enterprise and Value Chain Enhancement Project Table B-2. Activities Impacting Women Activity Gender Impact GRANT STTA SUB Activity TOTAL Your Size Women owned enterprise; training women micro entrepreneurs $24,049 $24,049 GENDER Totals $3,771,234 $422,412 $800,333 $178,296 $5,172,275 Table B-3. Activities Impacting Youth Activity Youth Impact GRANT STTA SUB/ Activity TOTAL AmCham/CMAH Skills Olympiad 2015; women construction workers participated $0 $0 $25,000 $25,000 Canado Technique Support for Salon de Competences $0 $0 $5,000 $5,000 CFPH Canado Technique Supporting a Certified Welding Program, 25 of 30 women trainees $131,910 $24,822 $30,000 $186,732 Ecole Professionelle du Cap Supporting community outreach capabilities $0 $51,556 $5,000 $56,556 Ecole Professionelle Saint Esprit Supporting community outreach capabilities $24,679 $6,600 $0 $31,279 Fondation Vincent Supporting community outreach capabilities $48,351 $0 $0 $48,351 St. Joseph Artisan Supporting renewable energy trainings $42,230 $0 $0 $42,230 Olympiad Skills Olympiad 2017&2018 $100,000 $5,000 $20,000 $125,000 YOUTH Totals $347,170 $87,978 $85,000 $520,148 Local Enterprise and Value Chain Enhancement Project 105 ANNEX C. IPTT Submitted as a separate file.