Tanzania commits to empowering small and mid-sized businesses

Dar es Salaam. The government has reaffirmed its commitment to fostering a conducive environment for micro, small, and medium enterprises (MSMEs), which encounter numerous challenges.

Exaud Kigahe, Deputy Minister for Industry and Trade, made this declaration today, July 5, during the Mwananchi Forum for MSME Stakeholders 2024.

He emphasized that the government acknowledges the significant role MSMEs play in the nation's economy.

"Reports indicate that 95 percent of businesses are MSMEs, contributing 40 percent to employment and 35 percent to GDP," he highlighted.

However, Kigahe acknowledged that MSMEs face various challenges, including difficulties in accessing loans due to lack of collateral, inadequate technology, skills, and training for business operations, and a lack of market access hindering business growth.

To address these issues, he stated that the government has been proactive in providing guidance and implementing policies through the Ministry of Industry and Trade to create a supportive environment for MSMEs.

"In 2023, we began reviewing our policies to ensure they are conducive for small-scale industries and businesses," he noted.

He mentioned that the government has instructed the Small Industries Development Organization (SIDO) to extend its outreach to districts and divisions to educate and train entrepreneurs, as well as provide technology for processing raw materials.

Additionally, Kigahe stressed the importance of enhancing infrastructure to enable MSMEs to produce high-quality products and emphasized the need to explore new markets, citing market access as a primary challenge for MSMEs.

"We are committed to addressing the market challenge," he affirmed.

In conclusion, Kigahe reiterated the government's unwavering commitment to supporting MSMEs and fostering an environment where these enterprises can thrive and contribute even more significantly to the nation's economic development.