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Digital innovation cluster challenge

CALL FOR DIGITAL INNOVATION CLUSTER PROPOSALS

DIGITAL INNOVATION CLUSTER CHALLENGE APPLICATION FORM

GUIDELINES

CONTEXT

Belize Trade and Investment Development Service (BELTRAIDE) is the national economic development agency, operating within the portfolio of the Ministry of Finance, Economic Development, and Investment. BELTRAIDE’s mission is focused on enabling and facilitating innovative and competitive business development by paving new paths utilizing technology, critical alliances and aggressively promoting investment​. BELTRAIDE consists of four main departments: Belize INVEST; Belize Training and Employment Centre (BTEC); EXPORTBelize; and Small Business Development Centre (SBDCBelize).

Through the implementation of the Inter-American Development Bank Funded (IDB) funded program titled “Digital Innovation to Boost Economic in Belize’’, the Government of Belize (GOB) seeks to incentivize the adoption of digital tools among MSMEs and strengthen the supply of digital services available to MSMEs. According to the Innovation, Firm Performance, and Gender (IFPG) survey that the IDB conducted in 2021, innovation with digital technologies is limited in Belize. Only 10% of firms in Belize used digital payment methods compared to a regional average of 28% and 1.6% of firms reported that their enterprises introduced methods for information processing and communication during three years prior to the survey.   As such, the process of digital transformation is required to improve the state of digital maturity of firms (initial, beginner, competent, and advanced). BELTRAIDE is implementing this Call for Proposals to motivate clustering among Digital Services Providers (DSPs)[1] by developing project proposals of strategic capacity building to narrow the skills gap within the DSP community, equipping them to better support MSMEs with the uptake of digital technologies.

The ‘’Digital Innovation Cluster’ is a group of interconnected DSPs and supporting organizations operating near each other that collaborate and compete to expand current markets. A cluster initiative is a coordinated effort to achieve specific objectives based on priorities and a common vision for the sustainable growth of a particular region. The value of clustering for DSPs lies in the opportunity to collectively service customers, attract new clients or solve production problems in ways that are not possible for businesses operating independently. Firms that actively participate in a cluster initiative can benefit from access to new markets, business development/branding, cost sharing/saving, workforce development, quality standards improvements, supply chain or process improvements, stronger government support, and collaborative research & development to drive long-term innovation and global competitiveness. See examples of clusters: Cluster 1 | Cluster 2 | Cluster 3.


[1] DSPs are companies that provide digital and online services to their clients including cloud services, hosting, software development, data analytics, digital and social media marketing, e-commerce solutions, mobile app development and more. DSPs play a critical role in closing digital divides and fostering the uptake and adoption of digital practices amongst businesses throughout all economic sectors in local economies.

the digital innovation cluster challenge

To inform this call for proposals, we conducted a comprehensive desk review and consultations with Belizean DSPs. This process identified the DSPs visions, goals, service offerings, target markets, and growth strategies. Importantly, the consultations revealed critical skills gaps in five key areas: (i) software development and engineering, (ii) machine learning, (iii) data analytics, (iv) specific accreditations (e.g. Cisco, AWS, Microsoft) and (v) Google Analytics/Facebook Ads. Access to a qualified workforce emerged as a top priority for Belizean DSPs.

This call for proposals aims to stimulate collaborative projects with at least two, Belizean-based DSPs to address the critical skills gap and build a strong human capital foundation. DSPs can implement capacity building and training initiatives that enhance their ability to deliver a wider scope of products and services.[2] This collaborative approach will ultimately increase competitiveness, generate new revenue streams, create employment opportunities, and boost Belize's export of digital services.

BELTRAIDE is seeking proposals to address skills gap:

Developing in-demand technical skills: Programs focused on areas like software development (Python, Java), data analytics (SQL, data visualization tools), cybersecurity, CRM (customer relationship management), and cloud computing (AWS, Azure).

Enhancing soft skills: Initiatives that cultivate critical thinking, problem-solving, communication, collaboration, creativity, project management, and client service skill.

Proposals must be submitted by a cluster of at least three entities with a minimum of two (2) Belizean-based DSPs that will form the core of the cluster. The private sector proponent entities should be registered and located in Belize. Cluster projects should prioritize including Belizean registered entities such as academia, industry associations, BSOs, NGOs, research, or government agencies as part of the cluster.

Qualifying clusters will receive grant funding to support consultancy services focused solely on human capital and skills development. These grants will be awarded competitively based on a rigorous review process by an independent Investment Panel (IP) in collaboration with BELTRAIDE.

​
[2] Preliminary assessment of the MSME market digitalization need are as follows:
MSMEs with incipient or intermediary digital maturity: (i) Web design and social media development, (ii) Digital marketing/SEO, (iii) Administrative and financial management, (iv)Inventory management, (v) Customer relationship management (CRM), (vi) Client data analytics, (vii) MIS system capacity to integrate with existing and future APIs and (viii) Digital Point of Sale (POS).​
MSMEs with Advanced digital maturity: (i) Automation of production and logistics processes, (ii) Upgrading of human resource capabilities, (iii) Adoption of cloud services, (iv) Investment and deployment of cybersecurity resources, (v) Implementation of e-commerce capabilities, (vi) Investment and deployment of new digital tools, (vii) software and hardware and (viii) Digital-based product and service development. 

AWARDS

BELTRAIDE is offering non-reimbursable technical assistance grants[3] to support projects focused on human capital development. These grants will cover expenses directly related to technical assistance services, such as consultation, coaching, facilitation, training, and information sharing. The CfP will also consider the acquisition of certain licenses, subscription, software and equipment that are  critical to achieving the project objective(s) and complementary to the project activities being proposed.

Proposals can request up to a maximum of BZ$100,000[4]. However, the grant will cover a maximum of 80% of the total project budget. Therefore, the proponent entities contribute at  least 20% of the total project budget. This contribution can be either financial or in-kind. For example,  if the cluster requests a grant of BZ$100,000, the total project budget must be at least BZ$120,000 (BZ$100,000 grant / 0.8 = BZ$120,000 minimum budget). This means your firm would need to contribute a minimum of BZ$20,000 (BZ$120,000 total budget - BZ$100,000 grant). This contribution could be financial (cash or other funding) or in-kind (staff time, office space, etc.).
Similarly, if the cluster requests a grant of BZ$75,000, the total project budget must be at least BZ$90,000 (BZ$75,000 grant / 0.8 = BZ$90,000 minimum budget). This would require a minimum counterpart contribution of BZ$15,000 (BZ$90,000 total budget - BZ$75,000 grant).

Funds will be awarded to winning cluster projects, subject to the following conditions: (a) the cluster project proposals will be rigorously reviewed by an independent Investment Panel (IP); and (b) Projects recommended for funding by the IP will then undergo a final review and approval process by BELTRAIDE. Note: the IP and BELTRAIDE may have additional requirements, prior to disbursement of funds. 

Eligible Expenses
This CfP may finance the following expenses following procurement procedures[5][6]:
  • Consulting fees- Specialized expertise, training and capacity building, etc.
  • Cost of organizing consultations
  • Purchase of certain licenses, subscriptions and software.
  • Purchase of certain equipment ( Max 30%  of project budget, exclusive of counterpart funding).[7] 


[3]  Do note that there will not be a direct transfer of funds to the winning DSP cluster, but the technical assistance will be procured on behalf of the cluster by the Central Executing Unit at the Ministry of Finance, Economic Development and Investment in collaboration with Beltraide.
[4] The budget should be developed inclusive of any  taxes.
[5] https://www.iadb.org/document.cfm?id=EZSHARE-1132444900-23306     
[6] https://www.iadb.org/document.cfm?id=EZSHARE-1132444900-23305  
[7] Up to thirty percent (30%) of the grant resources may be used for the purchase of equipment and supplies that are directly related to achieving the  project objective and complementary to the project activities. Please note a justification on why these expenses cannot be covered by the counterpart resources that will have to be provided. 

Who can participate (Eligibility)

This Digital Innovation Cluster Challenge is open to private sector firms and other Belizean entities. The eligibility criteria are the following:
  • Proposals must be submitted by a minimum of three entities, with a minimum of at least two (2) Belizean-based and registered digital service providers.[8]
  • For other entities, we highly encourage proposals to include a minimum of at least one entity registered in Belize such as universities, business support organizations (BSOs), industry associations, trade, and investment authorities; business association organizations; NGOs, government institutions, etc.
  • The lead entity must be a Belizean-based digital service provider (lead institution) and formally registered private entity. The lead entity must provide proof of legal constitution/incorporation.
  • The project proposal can recommend collaborations with entities not registered in Belize, but these partners cannot be beneficiaries of the project funds.
  • Do note that the supplier[9] of the technical assistance can not form part of the cluster as the proposal will be required to include at least three suppliers per technical assistance activity being proposed. The proposed supplier(s) will be selected in accordance with the IDB’s Procurement policy.
  • The proponent entities should provide written proof of counterpart resources valued at a minimum of 20% of the total project budget to implement the cluster project. The counterpart resources can be in-kind at relevant market rates.
  • Proposals must stimulate collaborative projects among Belizean-DSPs that address the critical digital skills gap and build a strong workforce; thus, this will enhance the competitiveness of both the cluster and DSPs.
  • Firms that have received BELTRAIDE grants within the past 12 months are not eligible to apply.

[8] A minimum of two (2) Belizean-based and registered DSPs are the beneficiaries of the project proposals but must include at least one (1) non-beneficiary entity.
[9] Supplier is a consultant or consulting firm that should provide 


How to participate

The leading private entity should complete the Application Form.
  • Submitted proposals will be reviewed only if they fully comply with the stipulated evaluation criteria and requirements. BELTRAIDE may contact applicants at any time during the application process.
  • Proposals should be submitted in ENGLISH only. BELTRAIDE cannot guarantee compatibility with all file formats, so ensure your documents are uploaded successfully.
  • Eligibility documents must be submitted in English. 
  • Short-listed proposals will undergo a due diligence visit by BELTRAIDE to verify the project and visit the potential parties and project sites. Subject to the outcome of the due diligence visit, the selected proposals will proceed to the next phase.
  • The Investment Panel (IP) will review proposals that pass due diligence. Selected proposals will proceed for final approval, which is subject to internal BELTRAIDE procedures.
  • Project execution will be planned for a period of up to 12 months.

Evaluation Criteria

The cluster projects will be evaluated according to the following criteria:
  1. Project feasibility (~40%) – (i) Proposal identifies specific skills gaps or areas for development among DSPs, (ii) the proposed capacity building targets skills critical for successful digital service provision to MSMEs, (iii) potential capacity of cluster to provide digital services to MSMEs in Belize, (iv) the cluster provides evidence of sufficient resources (human, financial, technological) to absorb technical assistance and sustain the required changes; and (v) clear commitment from the private firms involved and support from relevant institutions. 
  2. Innovative (~20%) – The extent to which the cluster project is providing innovative solutions to addressing the key skills gap affecting the sector. Considerations for gender, diversity, climate change and/or sustainable development.
  3. Impact (~20%) – The extent to which the project will lead to measurable impacts and results that will be achieved under the project to serve the digital service needs of Belizean businesses. (i.e. profitability of cluster, employment, new markets, delivery of services for MSMEs, etc.)
  4. Sustainability (~20%) – The likelihood of the project's results being sustained after the BELTRAIDE support ends. The associated risks will also be assessed under these criteria. Proposals that demonstrate strong collaboration with relevant academic or industry associations will be considered favorably.

Schedule

Event​
Date
Launch of Call
May 20th, 2024
Deadline to sign-up for Webinar
May 24th, 2024
Webinar for Questions & Answers
May 27th, 2024
FinTech Symposium
May 31st, 2024
Technical Assistance to Develop Cluster Proposal Projects
June 10-14th, 2024
Deadline to Submit project proposal application
July 12th, 2024 (before midnight, Belize time)
Target announcement date for selected concept notes
​August 5th, 2024
DATES ARE APPROXIMATE AND SUBJECT TO REVISION

For more information you can reach out to our projects department by emailing us at [email protected]

Notice as to disclaimers and reservation of rights

  • BELTRAIDE has the right to choose who participates based on meeting requirements and quality standards.
  • BELTRAIDE will disqualify participants who submit offensive and illegal content, materials that infringe on intellectual property rights, content that disparages BELTRAIDE or other sponsors, and those who are ineligible to participate in IDB Projects or contracting under its sanction protocols.
  • BELTRAIDE reserves the right to verify application details and conduct public record searches.
  • BELTRAIDE will not manage the intellectual property of the submitted proposals.
  • BELTRAIDE reserves the right to disclose applicants’ identity and any other relevant information.
  • Winning participants must sign an agreement with BELTRAIDE outlining project commitments and legal protections.
  • BELTRAIDE’s decisions are final and binding, with no process for appeal.
  • These terms and conditions may be updated at any time and will be made available to all participants online.
  • BELTRAIDE reserves the right to cancel the procurement process at any time.

Activities not eligible for funding

BELTRAIDE does not provide grant funding for projects or companies involved in the production, trade or use of products, substances or activities set forth in the list below.

  1. Those that are illegal according to the laws and regulations of Belize, or pursuant to international conventions and treaties ratified by this.
  2. Weapons and ammunition.
  3. Tobacco[10]
  4. Gambling, casinos and equivalent companies[11]
  5. Animals and wild plants or products derived from them are regulated in accordance with the convention on international trade in endangered species of wild flora and fauna (cites)[12]
  6. Radioactive materials[13]
  7. Not caked asbestos fibres[14]
  8. Projects or forestry operations that are not consistent with the environmental policy and observance of safeguards of the bank (document gn-2208-20)
  9. Compounds of bifenilopoliclorado (pcbs)
  10. Pharmaceuticals products subject to phase-out or international ban [15]
  11. Pesticides and herbicides subject to phase-out or international ban[16]
  12. Ozone-depleting substances subject to phasing out international[17]
  13. Fishing in the maritime environment with drag nets exceeding 2.5 km in length.
  14. Transboundary movements of waste and waste products[18] except non-toxic waste intended for recycling.
  15. Persistent organic pollutants[19]
  16. Breach of the fundamental principles of workers and rights at work[20]
 
[10] Does not apply to sponsors (sponsors) are not substantially involved in these activities. "Not substantially involved" means that the activity is ancillary to the main activities of the sponsor's operations.

[11] Not apply to sponsors (sponsors) are not substantially involved in these activities. "Not substantially involved" means that the activity is ancillary to the main activities of the sponsor of operations.

[12] See http://www.cites.org

[13] Does not apply to the purchase of medical equipment, quality control equipment (metering) and other equipment that can prove that the radioactive source is insignificant and/or is properly covered.

[14] Does not apply to the purchase and use of sheets of cement asbestos caked in which the asbestos content < 20%.

[15] Pharmaceutical products subject to phasing out or banning in United Nations, Banned Products: Consolidated List of Products Whose Consumption and/or Sale Have Been Banned, Withdrawn, Severely Restricted or not Approved by Governments (latest version 2008). http://www.who.int/medicines/areas/quality_safety/safety_efficacy/who_emp_qsm2008.3.pdf  .

[16] Pesticides and herbicides subject to phase-out or international ban

[17] Ozone-depleting substances are chemicals that react with stratospheric ozone and deplete it, giving as a result the widely spread "ozone holes". The Montreal Protocol lists these substances and their planned reduction and phase-out dates. The chemicals regulated by the referred Protocol include aerosols, refrigerants, fire extinguishing blowers for foams, solvents and agents. (http://ozone.unep.org/Publications/6ii_publications%20handbooks.shtml).
The fundamental principles and rights at work means: i) freedom of Association and the freedom of Association and the effective recognition of the right to collective bargaining; (ii) the prohibition of all forms of forced or compulsory labour; (iii) the prohibition of child labour, including, without limitation, which it the prohibition that persons under 18 years of age working in hazardous conditions (including construction), performing night work and are declared suitable to work on the basis of a medical examination; and (iv) the Elimination of discrimination in respect of employment and occupation, in which discrimination is defined as any difference, exclusion or preference based on race, color, sex, religion, political opinion or national or social origin. (Organization International Labour, http://www.ilo.org )).


[18] Defined by the Basel Convention (http://www.basel.int).

[19] Defined by the International Convention on reduction and elimination of polluting organic persistent (September 1999) that currently includes the pesticides aldrin, chlordane, dieldrin, endrin, heptachlor, mirex and toxaphene, as well as the chemical chlorobenzenes for industrial use (http://chm.pops.int/).

[20] (Principles and fundamental rights at work means: i) the freedom of Association and the effective recognition of the right to collective bargaining; (ii) the prohibition of all forms of forced or compulsory labour; (iii) the prohibition of child labour, including, without limitation, the prohibition of persons under 18 years of age work in hazardous conditions (including construction), performing night work, are declared fit for work on the basis of a medical examination; and (iv) the Elimination of discrimination in respect of employment and occupation, in which discrimination is defined as any difference, exclusion or preference based on race, color, sex, religion, political opinion or national or social origin. (Organization International Labour, http://www.ilo.org).

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  • BELTRAIDE
    • About Beltraide
    • GEM Report
    • News
  • BelizeINVEST
    • Why Belize? >
      • Skilled Labour
      • Strategic Locations
      • Pro-Business Environment
      • Friendly Tax Regime
      • Investment Incentives
    • Sectors >
      • Tourism & Medical Tourism
      • Offshore Outsourcing
      • Agribusiness & Agro-processing
      • Fisheries & Aquaculture
      • Sustainable Energy
      • Light Manufacturing & Logistics
    • Investment Portfolio >
      • Doing Business in Belize? >
        • Business Registration
        • Company Incorporation
        • Trade License
        • Business Tax Registration
        • General Sales Tax Registration
        • Bank Account Establishment
        • Companies
    • COVID-19: Ongoing Investment Support
  • BTEC
    • BTEC Conference Facility Rentals
    • SkillUp Digital Bootcamp
  • EXPORTBelize
    • Export Helpdesk >
      • Artist Toolkit
      • Export Readiness Self-Assessment
      • Export Process
      • Export Business Plan Guide
      • Financing Guide
      • Export Publications
      • Global Trade Links
    • Market Access >
      • Trade Agreements
      • Trade Shows and Missions
    • CETSuspension
  • SBDCBelize
    • Our Success Stories
    • Your Business Tools >
      • Startups
      • Establishing A Business >
        • Become A Client
      • Policies & Strategies
      • FAQs
  • Resources
    • BELTRAIDE Training Calendar
    • Invest Belize Magazine Vol. 8
    • Investment Services Network
    • Digital Innovation Cluster
    • B.E.E.P.
    • National MSME Roadshow
    • ENTRECON
    • Belize Blue Economy Investment Promotion Strategy
    • Project and Consultancy Opportunities
    • Expo 2025 Osaka
  • Publications