ITC 2022-2026 ITC 2022-2026 ITC is a UN Agency and a major actor globally with a strong capacity to work at several levels of implementation (micro/meso/macro levels). As such, apart from working at the global and national policy level, ITC is the only UN organization that works directly with micro, small, and medium sized enterprises (MSMEs) at the grassroots level to support their capacity to partake in international trade. ITC works with both private sector capacity building, as well as international regulations and standards in trade for implementation at the local and regional levels. This singles ITC out as a strategic partner for continued support as ITC enables Sida to leverage its strategic role to play support the inclusion of MSMEs in regional and international value chains, and support these enterprises in the green transition. This support is provided to ITC to support their work of making international trade more environmentally sustainable and inclusive for MSMEs. ITC är FN-organisation och en viktig aktör globalt med en god förmåga att verka på flera implementeringsnivåer (mikro/meso/makronivåer). Förutom sitt arbete på global och nationell policynivå, är ITC den enda FN-organisationen som arbetar direkt med (mikro- små- och medelstora företag MSME:er) på gräsrotsnivå för att stödja deras förmåga att delta i internationell handel. ITC arbetar både med kapacitetsuppbyggnad inom den privata sektorn, såväl som implementering av internationella regler och standarder inom handel på både lokal och regional nivå. Detta gör ITC till en strategisk partner för fortsatt stöd, eftersom ITC gör det möjligt för Sida att nyttja deras strategiska roll för att stödja inkluderingen av mikro- små- och medelstora företag genom hela den internationella värdekedjan samt stödja dessa företag i grön omställning. Detta stöd ges till ITC för att stärka deras arbete för en mer miljömässigt hållbar och inkluderande internationell handel för MSME:er. The purpose of this intervention is to support ITC's operations to drive sustainable and inclusive livelihoods by boosting the competitiveness of MSMEs, placing trade-led growth at the centre of public policy, and building supportive business ecosystems in developing countries. ITC thus combines a focus on expanding trade opportunities for MSMEs to achieve sustainable development. To deliver on this, ITC utilizes a mix of Core Services and Impact Areas. The Impact Areas guides what ITC will do, while Core Services guides how they will do it. There are four (4) core Services and five (5) Impact Areas, as shown below. 

Core Services 

Throughout the Strategic Plan 2022-2025, ITC will maintain a modular approach to its services offer. ITC groups its core services around the three intervention levels (macro, meso, micro) that influence MSME competitiveness. The fourth core service, which is an implicit part of the MSME competitiveness model, offers public goods on business, trade, and market intelligence. These four areas of technical expertise have been developed over the lifetime of the organization. Sida assesses these Core Services to be relevant to ITC operations and the overarching goal of supporting the competitiveness of MSMEs. The main features of the Core Services are presented below:

1) Improved MSME firm-level capacities to trade: ITC addresses the managerial, strategic, and operational needs of MSMEs and helps create market linkages. ITCs approach to assessing and building firm-level capacities will be harmonized, yet modular to address particular situations. ITCs tools and methodologies can be adapted to various degrees of trade readiness and maturity. ITC will concentrate on increasing firm resilience through improving management practices and identifying and securing the network, market, and value-addition opportunities. Over the planned period and depending on the level of funding, ITC aims to support 75,000 MSMEs in making changes to their business operations. ITC will support MSMEs to become climate resilient by enhancing resource use and implementing circular production practices. ITC is also developing training modules on organic agricultural practices and develop financial products with financial intermediaries on selected climate technologies.

2) A more supportive business ecosystem for MSMEs: Businesses have a greater chance to succeed when they benefit from an ecosystem that provides support and services for growth. The services provided in this ecosystem can cover a very broad range of activities provided by different actors such as information provision, training, legal and financial advice, logistical and technical support, marketing, and advocacy. Business Support Organizations (BSOs), which range from trade and investment organizations to sector associations, social enterprises, women's business associations, business incubators, tech hubs, vocational training institutions, cooperatives, and others, benefit widely from ITC benchmarking and diagnostic tools as well as advisory services. According to their Strategic Plan 2022-2025, ITC will support BSOs to expand their services for MSMEs, including management training and skills development, enabling access to finance and investment, providing guidance in implementing environmental, social, and governance (ESG) factors, increasing digital literacy and e-commerce capabilities, facilitating cooperation between enterprises and providing effective advocacy.

3) A more conducive policy and regulatory environment for MSMEs: ITC is an active actor in the global normative discussions, where they focus on achieving sustainable development through the lens of making MSMEs more competitive and bringing their voices into policy-making processes. Relevant forums for this include UN bodies, the WTO, as well as regional and continental conferences or institutions, such as the AfCFTA or AU. The advocacy work is complemented by a substantive body of programmatic work in countries from which they draw lessons and drive impact on the ground. ITCs technical assistance in strategy design and policy formulation helps increase this potential and has a direct bearing on a country's competitiveness, diversification, resilience, and sustainability.

4) Improved business, trade, and market intelligence: ITC provides public goods that promote transparency and advocate for best practices. In an environment where the sources, availability, and value of data have increased exponentially, ITC helps stakeholders translate information into actionable intelligence.  New information and research and analysis will be added regularly on topics at the forefront of global trade and development, including foreign direct investment, sustainability standards, digitalization, and services trade regulations. The SME Trade Academy will continue to update its e-learning offer in line with the clients' evolving needs. Sida considers ITC's work within market intelligence to be of high quality and therefore considers it important to further encourage ITC to foster cross-fertilization between market intelligence and the other core services to ensure that this data truly contributes to the improved business environment and increased competitiveness of MSMEs.

Impact areas

ITC will focus on five impact areas. These areas have been developed over time and Sida has contributed to their design in the past by providing input to ITC Strategic Plans over the years. The Impact Areas for the Strategic Plan 2022-2025 are as follows:

1) Sustainable and resilient value chains: ITC will maintain and sharpen its methodologies for building sustainability and resilience. This includes improving income and employment generation and stimulating positive spillovers to other sectors of the economy. Going forward, ITC will increase its scope of multistakeholder processes in selected sectors to influence how value is created and distributed. ITC will scale up its work in services sectors, including logistics, and on helping MSMEs capture higher value service elements within goods sectors, such as after-sales or pre-production services.

2) Inclusive trade: Women, youth, and people in vulnerable situations: The participation of women and youth in entrepreneurship and trade can unlock boundless possibilities for economic prosperity. ITCs work emphasizes economic empowerment and creating entrepreneurial and remunerative opportunities for women, youth, and people in vulnerable situations.

3) Green trade: Whilst balancing environmental, developmental, and economic goals, ITC supports MSMEs in developing countries in gaining a competitive advantage by promoting sustainability through the GreenToCompete initiative. ITC will strengthen local capacities to mitigate and adapt to a changing climate and promote nature-positive practices in value chains. ITC will support small businesses to limit their environmental footprint through the application of resource efficiency and business practices, and truly circular production cycles. ITC will also promote the alignment of trade- and environment-related policies to contribute to the achievement of the goals of the Paris Agreement and commitments that have subsequently been taken at the Conference of the Parties (COP). 

4) E-commerce and Digitalization: Digitalization has created vast opportunities for the most resourceful, but many have been left behind. Many MSMEs struggle to develop their online presence and are inadequately supported to address their specific barriers. ITC centers its efforts on the digitalization of trade and the specific constraints faced by MSMEs, in particular e-commerce of goods and services. ITC will contribute to improving business ecosystems by collaborating with market partners and equipping BSOs and policy-makers to support MSMEs in the digital economy.

5) Regional integration and South-South trade and investment: ITCs interventions at the regional and inter-regional level will continue to focus on boosting regional trade and advancing South-South trade and investment. ITCs initiatives and projects support the implementation of regional economic integration initiatives in which developing countries participate by enhancing supportive regulatory and institutional environments, including trade-related financial ecosystems, and by integrating MSMEs into regional value chains and connecting them with emerging trade opportunities.