Fueling Tanzania’s economic renaissance

Tanzania, East Africa's third largest economy, is on a trajectory to bolster investments in the Small and Medium Enterprises (SME) sector as a means to propel economic growth. In a recent interview on CNBC Africa, Oscar Kissanga, the Director of Tanzania Chamber of Commerce, Industry and Agriculture, shed light on the immense potential and significance of the SME sector in the country. With approximately 150,000 SMEs primarily engaged in agriculture, these businesses play a crucial role in contributing to tax revenue and overall economic development. In fact, SMEs are estimated to account for about 35% of Tanzania's GDP, showcasing their substantial impact on the nation's economy. Kissanga highlighted the importance of empowering and capacitating SMEs to foster their growth and contribution to the economy. The recent SME conference hosted by Tanzania Chamber of Commerce served as a platform for SMEs to network, access financing, discuss technology transfer, and explore strategies to tap into domestic and international markets. With Tanzania making significant investments in infrastructure, there is optimism that the country is poised to become a regional powerhouse in East Africa. The potential held by Tanzania's SME sector is seen as a key driver in achieving this goal. However, challenges persist in terms of work permits and free movement of labor within the East African community. Kissanga expressed concerns regarding these obstacles and emphasized the need for collaborative efforts among governments to streamline these processes. Resolving such challenges would not only enhance business interactions within the region but also promote economic integration and growth. By addressing issues such as non-tariff barriers and fostering cross-border trade, Tanzania aims to create a conducive environment for businesses to thrive and expand their reach beyond national boundaries. The vision is to empower SMEs to tap into the vast opportunities offered by the African Continental Free Trade Area, which comprises a market of around 1.6 billion people. By equipping SMEs with the necessary resources, training, and access to technology, Tanzania seeks to position itself as a competitive player in the regional and international business landscape. With a focus on building strong partnerships with neighboring countries and fostering a vibrant private sector ecosystem, Tanzania is poised to harness the full potential of its SME sector and drive sustainable economic renaissance.