By Business Insider Reporter
The government is today expected to launch the revised Small and Medium Enterprises (SMEs) Development Policy, originally introduced in 2003, as part of efforts to strengthen entrepreneurship, expand business opportunities and increase the contribution of general enterprises to Tanzania’s economic transformation.
The launch, organised by the Ministry of Industry and Trade in Dodoma, will be officiated by Prime Minister Dr Mwigulu Nchemba, marking an important step in updating the country’s policy framework to reflect changing economic conditions, technological developments and emerging opportunities in the business environment.
The revised policy, designated the Small and Medium Enterprises Development Policy, 2003 (2025 Edition), seeks to address challenges experienced under the previous framework while creating a more supportive environment for entrepreneurs to establish, formalise, grow and sustain their businesses.
Minister for Industry and Trade Judith Kapinga said the review was necessary to align SME development with current national economic priorities and strengthen the capacity of entrepreneurs to contribute to production, employment creation and economic growth.
Among its key priorities are improving business-supporting infrastructure, expanding access to capital, promoting technology adoption and innovation, and facilitating access to markets for products and services produced by small and medium-sized enterprises.
The framework also places emphasis on expanding entrepreneurship opportunities in both rural and urban areas, with particular attention to women and young people.
The policy revision comes against the backdrop of the government’s ambition to significantly expand the country’s entrepreneurial base. According to Minister Kapinga, Tanzania had about six million small-scale entrepreneurs in 2024, with the government targeting an increase to 16 million by 2035.
Achieving that ambition will require more than increasing the number of people engaged in business. It will also depend on the capacity of enterprises to overcome persistent constraints relating to financing, business formalisation, infrastructure, technology, skills and access to reliable markets.
Access to finance is particularly important, given the difficulties many smaller businesses face in securing affordable capital to expand operations, invest in equipment, improve production and meet market requirements.
The emphasis on technology and innovation also reflects the growing importance of digital solutions in improving business efficiency, expanding customer reach and enabling smaller enterprises to participate in increasingly competitive markets.
Equally important is the policy’s market-access dimension, which seeks to create opportunities for SMEs to supply larger businesses, participate in domestic and regional value chains and progressively develop their capacity to compete beyond the domestic market.
The revised framework is also expected to complement the government’s wider industrialisation agenda, particularly efforts to increase local production, promote value addition and strengthen linkages between small enterprises and larger industrial investments.
The policy is being launched alongside the Sustainable Industrial Development Policy, 2025, reflecting the government’s intention to strengthen the relationship between industrial development and entrepreneurship. The two policy frameworks are expected to support the broader economic transformation agenda under Tanzania Development Vision (Dira) 2050, in which private-sector investment, enterprise development, productivity and competitiveness are important drivers of long-term growth.
