Tanzania launched its industrial and SME policies in Dodoma on 4 November 2026, setting out measures to expand manufacturing, business financing and market access.
Prime Minister Mwigulu Nchemba officiated on behalf of President Samia Suluhu Hassan at the Jakaya Kikwete Convention Centre, launching the Sustainable Industrial Development Policy 2025 and the Small and Medium Enterprises (SMEs) Development Policy 2003, 2025 Edition.
The accompanying implementation strategies set financing requirements, deadlines, and targets through 2035, including establishing an industrial development fund by June 2027 and increasing SME lending to TZS 4.7 trillion by June 2035.
The industrial strategy estimates TZS 76.96 trillion will be required for implementation, mobilised through government budgets, private investment and development partners over a ten-year period beginning in 2025/26.
It targets 40 new factories using modern technology and 15 new industrial areas with modern infrastructure by June 2035, alongside a 30% increase in industrial projects financed through public-private partnerships.
Sector targets include establishing or developing 35 machinery and equipment factories, 20 factories producing machinery and vehicle spare parts, and five robotics and microchip factories by June 2035.
The strategy also targets a 60% increase in sales of domestically manufactured products and a 40% increase in the value of strategic industries’ exports by June 2035.
The industrial policy prioritises processing agricultural, livestock, fisheries, mineral and forestry resources, alongside investment in strategic industries, research, innovation and market access.
It provides for financing through an Industrial Development Fund and other sources, adequate production infrastructure, skilled workers and insurance to protect invested capital.
Strategic industries identified in the policy include machinery, chemicals, microchips, mineral value addition, textiles and garments, defence equipment and vehicle manufacturing.
The SME implementation strategy estimates TZS 1.79 trillion in implementation resources from government, the private sector, development partners and other stakeholders during 2025–2035.
It targets an increase in loans extended to SMEs from TZS 945.7 billion to TZS 4.7 trillion by June 2035, connecting five million enterprises with financial institutions and enabling one million start-ups to obtain capital from financial institutions.
Infrastructure targets include increasing SME industrial clusters from 57 to 114, factory buildings from 467 to 654, and warehouses from 328 to 1,000 by June 2035.
The strategy also targets increasing formal businesses covered by its formalisation measure from 16,489 in 2024 to 80,000 by June 2035, and business incubators from six to 26.
For market access, it aims to link 1.9 million SMEs with large domestic companies and 500,000 with large foreign companies by June 2035.
The revised SME policy commits to improving access to finance and start-up capital, strengthening business advisory and extension services, developing production premises and cold-storage facilities, and encouraging technology adoption.
It also distinguishes manufacturing from trade and services when classifying enterprises by workforce and capital, as shown below.
| Enterprise | Sector | Employees | Capital |
|---|---|---|---|
| Micro | Trade/services | Fewer than 5 | Below TZS 50 million |
| Micro | Manufacturing | Fewer than 20 | Below TZS 100 million |
| Small | Trade/services | 5–50 | TZS 50 million–1 billion |
| Small | Manufacturing | 20–100 | TZS 100 million–2 billion |
| Medium | Trade/services | More than 50–100 | Above TZS 1 billion–5 billion |
| Medium | Manufacturing | More than 100–300 | Above TZS 2 billion–10 billion |
The policy defines capital as including cash, raw materials, finished goods and production infrastructure; its use of small enterprises also includes microenterprises.
At the launch, Nchemba directed public institutions to use locally manufactured goods and called for legal provisions obstructing their use to be reviewed.
“This should start within government. Even when we construct government buildings, we should use products manufactured here,” he said, translated from Swahili.
The Minister for Industry and Trade, Judith Kapinga, said implementation would be guided by annual targets and monitoring, while the Minister of State responsible for Planning and Investment, Professor Kitila Mkumbo, linked the policies to Tanzania Development Vision 2050.
The industrial policy replaces the 1996-2020 framework, while the SME policy updates the 2003 framework to reflect technological change, emerging business activities, and revised enterprise classifications.
Both documents identify constraints including inadequate infrastructure, limited capital and technology, skills gaps and difficulties accessing markets.
Download the official documents (Swahili): Industrial Development Policy 2025; Industrial Policy Implementation Strategy; SME Development Policy, 2025 Edition; SME Policy Implementation Strategy.
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