SME

Tanzania Small Medium EnterprisesTanzania Small and Medium Enterprises

95% of the businesses in Tanzania are Small and Medium Enterprises (SMEs), and they represent about 35% of the country’s GDP, according to the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA).

In December 2016, the African Development Bank (AfDB) approved a USD120m Line of Credit (LOC) to Tanzania to finance infrastructure and SME projects.

The LOC is allocated to CRDB, the largest commercial bank in Tanzania, which supports various sectors such as power, manufacturing, agriculture, and SMEs.

By leveraging CRDB’s branch network and agents, the LOC will increase lending to SMEs and women enterprises in both urban and rural areas to create more jobs and to promote inclusive growth for Tanzania’s economy, the AfDB indicates.

In September 2016, Tanzania officially launched the Tanzania Entrepreneurship and Competitiveness Centre (TECC) to promote entrepreneurial innovation and competitiveness in the country.

TECC aims to promote entrepreneurship and competitiveness in SMEs in Tanzania through:

– Skills development in entrepreneurship, innovation and competitiveness

– Promoting local economic development using the triple helix cluster approach (university-industry-government relationships for innovation)

– Providing business intelligence through studies and advisory services

Jenista Mhagama, Minister of State in Tanzania’s Prime Minister’s Office responsible for Policy, Parliamentary Affairs, Labor, Employment, Youth and the Disabled, said that the Government supports the private sector in SMEs promotion and urged companies and institutions to assist TECC.