Sme Policy

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UNITED REPUBLIC OF TANZANIA MINISTRY OF INDUSTRY AND TRADE

SMALL AND MEDIUM ENTERPRISE DEVELOPMENT POLICY 2002

TABLE OF CONTENTS PAGE ABBREVIATIONS………………………………………………………………… FOREWORD 1.0 2.0 INTRODUCTION SME DEVELOPMENT 2.1 2.2 2.3 2.4 ………………………………………………………………………………. IN TANZANIA…………………………………………………….……… Definition ………………………………………..........…………. Importance of Small and Medium Enterprises ………………………… Government Effort…………………………………………… ……………… 5 Constraints faced by SMEs in Tanzania ……………………………….. …………………….………..……… iii v 1 3 3 4 8 10 11 11 11 11 11

3.0 4.0

RATIONALE FOR THE SME DEVELOPMENT POLICY OBJECTIVES OF THE SME POLICY 4.1 4.2 4.3 4.4

……………………………………………….………...

Vision ……………………………………………………………..……… Mission …………………………………………………….…….. Overall Objective ………………………………………….……… Scope of the Policy …………………………………………………… 12

5.0

POLICIES AND STRATEGIES FOR DEVELOPMENT OF SME SECTOR … 5.1 5.2 5.3

5.4 5.5 5.6 5.7

Legal and Regulatory Framework…………………………………….. 12 Physical Infrastructure …………………………………………….. 13 Business Development Services.. ………………………….. 13 5.3.1 Entrepreneurship Development … ……………………..….. 15 5.3.2 Business Training………………………………………………… 15 5.3.3 Information……………………………………………………. 15 5.3.4 Technology ……………………………………………… ……………. 15 5.3.5 Marketing …………………………………………………………… .. 16 Access to Finance……………………………………………………………. 17 Institutional framework for SMEs Development ………………………… 18 Rural Industrialisation ……………………………………………………… 18 Cross Cutting Issues …………………………………………………… 19 5.7.1 Environment ………………………………..… 19 5.7.2 Gender and the Disadvantaged Groups………. 20 5.7.3 HIV-AIDS ……………………………..………… 20

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6.0

ROLES AND RESPONSIBILITIES UNDER THE SME DEVELOPMENT POLICY 6.1 Government

……………

22 22 22 22 23 23 23 24 25

6.1.1 6.1.2

………………………………………………………………………. Developmental Role …………………………………………. Supervisory role -The Ministry of Industry and Trade ….

6.2 Private Sector ……………………………………………………………………… 6.3 Non Governmental Organizations (NGOs) ………………………………………… 6.4 Development Partners …………………………………………………………… 7.0 POLICY MONITORING AND EVALUATION Annex ………………………………………….

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ACRONYMS and ABBREVIATIONS BET
BIS BoT BOs BDS BEST BRELA CAMARTEC CDTF COSTECH CRDB CBE CTI COSOTA DFID DIT EDC FAWETA ISOs ISP IPI ITDT MCM MEDA MFIs MIT MSEs MSME MoE MoL MoF MoH MCDWC NCPT NEDF NEMC NGOs NIGP NMB PSRC PTF PSI PRIDE RFF ROSCA RALG SACCOS SADC

- Board of External Trade
- Basic Industrial Strategy - Bank of Tanzania - Business Organisations - Business Development Services - Business Environment Strengthening for Tanzania - Business Registration and Licensing Agency - Centre for Agricultural Mechanization and Rural Technology - Community Development Trust Fund - Tanzania Commission for Science and Technology - Co-operative and Rural Development Bank - Collage for Business Education - Confederation for Tanzanian Industries - Copyright Society of Tanzania - Department for International Development - United Kingdom - Dar-es-Salaam Institute of Technology - Entrepreneurship Development Centre - Federation of Associations of Women Entrepreneurs Tanzania - Institutional Support Organisations - Information Service Providers - Institute of Promotion Innovation - Institute for Technology Development and Transfer - Ministry of Cooperatives and Marketing - Mennonite Development Associates - Micro-finance Institutions - Ministry of Industry and Trade - Micro and Small Enterprises - Micro Small and Medium Enterprises - Ministry of Education - Ministry of Labour - Ministry of Finance - Ministry of Health - Ministry of Community Development, Women and Children - National Cleaner Production Tanzania - National Entrepreneurship Development Fund - National Environmental Management Commission - Non-Governmental Organisations - National Income Generation Program - National Micro-finance Bank - Parastatal Sector Reform Commission - Presidential Trust Fund - Private Sector Initiative - Promotion of Rural Initiatives and...
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