10021316-Lot 1: Strengthening MSME Competitiveness, Market Access and Business Environment Reform in Benin

Benin's economy has experienced sustained economic growth in recent years, with GDP growth estimated at approximately 6.4% in 2023 and 7.5% in 2024. Despite this positive trend, micro, small and medium-sized enterprises (MSMEs), which represent more than 95% of registered enterprises in Benin, continue to face major structural constraints limiting their competitiveness and job creation potential. These constraints include limited managerial and technical capacities, weak market integration, insufficient access to finance and qualified labour, low levels of digitalisation, and limited access to quality infrastructure and certification services.

The Government of Benin has identified private sector development, employment promotion and economic transformation as key priorities through the National Development Plan 2018-2025, the national SME promotion strategy and the national employment promotion strategy. In parallel, the implementation of the African Continental Free Trade Area (AfCFTA) creates new opportunities for regional and international trade, while increasing the need for enterprises to comply with quality and certification requirements.

In this context, the project "Employment-oriented promotion of the competitiveness of micro, small and medium-sized enterprises" (ProPME 2), implemented by GIZ, aims to strengthen the competitiveness of MSMEs with employment impact. The project focuses particularly on MSMEs operating in sectors with high employment potential, including agri-food processing, renewable energies, crafts and services. Special attention is given to women-led enterprises, young entrepreneurs and enterprises located in northern regions of Benin.

The overall objective of the module is: "The competitiveness of micro, small and medium-sized enterprises in selected regions and sectors in Benin has been improved with employment impact."

In addition, the project contributes to the implementation of the Alliance for Product Quality in Africa (AfPQ), jointly implemented by GIZ and PTB, which supports African enterprises in improving product quality and compliance with regional and international market requirements under the AfCFTA framework.

The project is structured around three main outputs: - Output 1: Strengthening the entrepreneurial, technical and market integration capacities of MSMEs. - Output 2: Strengthening the institutional environment for MSME promotion, including quality infrastructure and public-private dialogue. - Output 3: Improving labour market intermediation and the alignment between vocational training and MSME needs.

The mission of the contractor is to contribute in an integrated manner to strengthening the competitiveness of MSMEs in Benin.

The contractor contributes in particular to the achievement of: - Output Indicator 1.1: Improvement of entrepreneurial and technical capacities of MSMEs in selected sectors and value chains. o Contractor target: support to 150 MSMEs, including women-led, youth-led and northern-based enterprises, in product quality management and market access. - Output Indicator 2.1: Measures implemented to improve the business environment for MSMEs, including quality infrastructure. o Contractor target: contribution to one measure related to quality infrastructure and SME support systems.

The contractor will implement three complementary work packages:

Work package 1: Product quality and market access The contractor will support 150 MSMEs through training and coaching on quality management, food safety, traceability, hygiene practices and agroecological standards. In addition, 15 SMEs will receive tailored support to obtain regional or international certifications and approvals, including ECOWAS/UEMOA accreditations and private certifications such as Global G.A.P., Fairtrade or EU Organic.

Work package 2: Quality infrastructure and compliance The contractor will support 50 MSMEs in obtaining Marketing Authorisations (MA) or Beninese Standards (NB) certification, in close cooperation with national quality infrastructure institutions such as ABSSA and ANM. Activities include diagnostics, training, coaching, audit preparation and support for compliance measures.

Work package 3: Institutionalisation of the SME Loop The contractor will support national MSME support institutions, particularly ADPME and CCI Benin/IRAE, in institutionalising the SME Loop entrepreneurial support methodology. This includes the development of national quality standards, certification frameworks, monitoring and evaluation tools, and capacity development measures for national stakeholders. All activities will be implemented in close collaboration with GIZ and relevant public and private partners to ensure sustainability, institutional ownership and improved competitiveness of MSMEs in Benin.