Tourism & Hospitality Sector

About the Private Enterprise Programme Zambia (PEPZ):

Funded by UKaid, PEPZ supports the development of a thriving Zambian private sector in order to create job and income opportunities, increased investment and value addition in the local economy.

The core of the PEPZ value offer to potential partners is formulated under four headings:

  • Capital: Our cost-sharing financial intervention mechanisms designed to incentivise business innovation that will benefit Zambian Micro, Small and Medium Enterprises (MSMEs);
  • Capacity: Our internal expertise and our network of external specialist consultants who can help intervention partners design and implement solutions;
  • Connections: Our networks and contacts that allow us to facilitate business connections and transactions; and
  • Compliance: Our understanding of the formal and informal rules of focus sector markets means that we can help businesses to meet legal/regulatory requirements and client/consumer needs.

PEPZ works across four focus sectors. Each sector has its own overall strategic goal that shapes our work in that sector:

  • Food and Agriculture: To increase productivity at the farm level, promote value addition through processing and get more Zambian products into consumer markets
  • Mining and Mining Services: To increase the positive, sustainable and inclusive economic impact of the mining industry in Zambia
  • Tourism and Hospitality: To increase tourist numbers and spend in Zambia and increase the proportion of tourist revenues captured by local businesses
  • Business Services for Investment and Growth: To increase access to financial and non-financial business services and sources of finance that support growth-oriented Zambian businesses

The core PEPZ mandate is to promote inclusive economic growth and poverty reduction through the distribution as well as the growth of wealth in Zambia. Each of our initiatives and intervention partnerships supports investment in business innovation – new products, services or business models – designed to address the systemic constraints that limit market access and market participation for many Zambian MSMEs. We want to see more Zambian MSMEs participating – and participating more fully – in their relevant sectors so as to secure a greater proportion of the profits in the sector.

Our target beneficiaries are working-age Zambians who live in poverty or near poverty, and we make strenuous efforts to ensure that the most economically disadvantaged and marginalised groups – women and youth, rural communities and people with disabilities – also share in the benefits of economic growth.

The structure of PEPZ’s Tourism and Hospitality Sector is shown below:

Context of this Call for Investment Project Concepts:

As part of our 2019 strategy, we aim for larger, more complex and diversified initiatives that take on substantial challenges and opportunities in the Zambian Tourism and Hospitality sectors. In line with this goal, PEPZ is soliciting Project Concepts under several initiatives, which we will consider for support through 1) grants for technical assistance, 2) grants to incentivise/de-risk investment, 3) support for market linkages facilitation and 4) general business support.

The approximate budget allocations available for the following Activity Streams are listed below; please contact PEPZ prior to submission for concepts outside of the indicative ranges.

Activity Stream Approximate budget allocationIndicative grant range
Developing Competitive Tourism Hubs (focus on Livingstone)registry £450,000 £50,000 up to£150,000
Crafts Sector Development£175,000 £10,000 up to £50,000
Sustainable Tourism and Conservation£125,000 £15,000 up to £40,000

We have listed below a number of types of benefits that we are looking for under each Initiative, but the lists are not exhaustive. Of primary importance is that concepts are focused on commercially addressing barriers that inhibit Zambian MSMEs from fully participating – and benefiting from – market engagement in whichever sector they operate within.

Tourism Hubs Initiative

Under this Initiative, PEPZ is focused on improving the tourism offer in/around Livingstone. Proposed investment concepts should be limited to the Livingstone area and deliver benefits along these lines:

  • Improved collaboration among tourism stakeholders in Livingstone to promote an overall concept of Livingstone as a “City of Heritage and Culture”;
  • Promotion of Livingstone’s heritage (natural and man-made) and culture (historic, inherited and contemporary)
  • New, innovative experiences that lead tourists to extend their stay in Livingstone and spend more (directly and indirectly);
  • Increased local micro, small and medium enterprise (MSME) access to tourists and tourist spend;
  • More interaction between tourists staying in all-inclusive establishments and the local MSME economy;
  • Improved tourism workforce skill levels, professionalism and capacity for better customer service;
  • Investments that add greater awareness of activities available in/around Livingstone;
  • Investments that better connect tourists/potential tourists to Livingstone and highlight Livingstone as a preferred tourism destination;
  • Investments that improve Livingstone and Zambia as a middle-market tourism option for potential visitors;
  • Provision of opportunities for job creation and income growth for local communities.
  • Investment concepts that improve commercially beneficial linkages between larger tour operators and local MSMEs.

Crafts Development Initiative

Under this Initiative, PEPZ is developing a more competitive artisanal crafts sector in Zambia – especially for export markets – through improvements in product design and diversification, quality, market access and awareness of Zambian crafts. We are looking for investment project concepts to deliver these types of benefits:

  • Improved, sustainable linkages between and among networks of artisans, export agents and relevant service providers (insurance, fumigation logistics, testing, etc.) to improve market functions at all areas of the value chain;
  • Improved market access for artisans through better commercial linkages to international buyers;
  • Improved diversification, variety and volumes of quality, in-demand craft products;
  • Improved access to design and production business services and facilities;
  • Improvements in production, value addition and distribution of craft products;
  • Innovative, commercial ways to increase craft exports where possible;
  • Improved local, regional and global marketing of Zambian artisans and crafts;
  • Models that add more value to the artisans themselves;
  • More formalised job creation and income growth for artisans.

Sustainable Tourism and Conservation

Under this Initiative, PEPZ is seeking investment project concepts that sustainably and sensitively (culturally, ecologically, etc.) improve commercialisation of Zambia’s natural assets (National Parks, game management areas, wildlife, geographies, places of historical importance, etc.). Of particular emphasis are investments that provide economic incentives for improved community engagement in and management of natural assets within GMAs, National Parks or other protected or sensitive geographical regions. Types of benefits that these concepts should offer include:

  • Greater numbers of tourist visits to Zambia’s natural assets
  • Increased product offerings utilising Zambia’s natural assets
  • Increased benefits for communities at/surrounding these natural assets
  • Leveraging off of existing product offerings to create new, commercially sustainable products
  • Strengthened collaboration between National Parks/GMAs and local communities
  • Greater opportunities for communities at/surrounding natural assets to access diversified income or livelihood opportunities
  • Improved conservation of natural assets
  • New jobs and creation of diversified income opportunities

Criteria for Competitive Concepts:

Project Concepts must meet the following criteria:

  • Proposals must be shown to be commercially viable to ensure sustainability.
  • Applicants need to display sufficient capacity (technical, management and financial) to implement the project successfully.
  • Proposals must address sector constraints in a systematic, targeted way. This does not mean they must address all constraints in a given sector, but they need to be focused on addressing clear market challenges faced by large numbers of MSMEs within the value chain.
  • Proposals must introduce some level of innovation in terms of an innovative business model, a new product or service, or a new way of addressing sector constraints that keep Zambian MSMEs from fully and profitably engaging in markets.
  • There must be a substantial cost-sharing element to each proposal concept. For private sector intervention partners, we target a 50/50 cost share between the partner and PEPZ. Non-private sector entities’ investments will be reviewed on individual bases to ensure adequate level of financial contribution and commitment to project delivery.
  • All other considerations being equal, concepts likely to deliver greater outcomes and in which the partner contributes a larger proportion of the total project budget will be more competitive for funding.
  • Projects must be completed by 31 December 2019.

Eligibility and Submission Guidelines:

Who may apply?

  • For-profit and non-profit companies are eligible to apply.
  • For-profit companies should target cost-share of 50% of the overall investment project cost. Non-profits will be assessed on a case-by-case basis. In general, the higher cost-share percentage borne by the investor, the more attractive the proposal will be to PEPZ.

Investment Project Concept development guidance:

  • Applicants should complete the PEPZ Concept Note in as much detail as possible. After PEPZ’s review, feedback will be given to all applicants. Selected projects will then be requested to complete a fully detailed Investment Project Proposal template.
  • PEPZ has a limited budget, so we are looking for high-impact investment projects that meaningfully benefit relatively large numbers of Zambian MSMEs. Competition for support is likely to be high, so be advised that only the most convincing, value-for-money and high-impact projects will be requested to develop full proposals for funding consideration, and funding is not guaranteed.
  • As above, concepts in which the investing partner intends to contribute a higher proportion of the total budget, the more competitive the concept will be.
  • Investment projects need to be completed by 31 December 2019.

Concept Submission Guidance:

  • Please submit a fully completed concept note template – and any related backup documentation – to [email protected]
  • Please also submit fully completed Information Form and Banking Details templates with the concept note.
  • Applications will be accepted on a rolling basis through June 2019, and may be extended beyond that pending funding considerations. Applications will be reviewed on a first-come, first reviewed basis.
  • PEPZ’s decisions on applicants requested to provide full proposals are final.

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