IN order to ensure small and medium enterprises (SMEs) have access to low-interest loans, the government is set to boost the lending capacity of the state-run Tanzania Investment Bank (TIB).
Plans are also underway to establish an
Industrial Development Bank that would deal with matters related with
the sector including provision of low-interest loans and capital to
support the fifth phase government agenda of industrialization.
The Permanent Secretary (PS) in the
Ministry of Industry, Trade and Investment (MITI) in charge of Industry,
Dr Adelhelm Meru, disclosed this in Dar es Salaam over the weekend
while officiating at a one-day workshop to evaluation implementation of
the 2003 SME development policy.
Dr Meru said it was time the policy was
now reviewed to accommodate new changes, adding that the move would seek
to facilitate a smooth shift to the envisaged middle income by 2025.
He explained further that the SMEs were
made up of almost 98 per cent local industries, and that the sector
would facilitate creation of more employment opportunities.
“Most of Tanzanian youth and business
people who wish to open up small industries fail to do so for lack of
capital investment, and many cannot afford the high loans interest rates
currently charged by the country’s commercial banks.
TIB alone cannot provide low-interest
loans to all the SMEs,” he said, calling on other sectors to support the
country’s economic effort. However, Dr Meru also called for improved
infrastructure development in areas allocated to investors in order to
attract yet more investments.
The PS also underlined the importance of
technology as “the most important part in industrialization” and that
the government was keen on strengthening scientific research centers and
other organizations charged with development of small industries.
"We need to remove barriers in doing
business, including unnecessary taxes and charges since many
institutions have been going after one investor for various collections.
We need to improve ease of doing business by eliminating some taxes
that discourage investors,” Dr Meru stressed.
The ministry’s Assistant Director,
Department of industry and small businesses, Boniface Michael, said the
review had come at the right time when the government was committing
resources to improve the industrial sector.
“Normally the policy needs to be
reviewed at least every five years. But we haven’t done it since 2003
due to shortage of funds,” he explained, adding the policy needs to take
on other sectors such as oil and gas.
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