Role played by SMEs in the transformation of agriculture in Tanzania

Agriculture is the main economic activity in Tanzania taking more than 70% of its workforce. By May 2022, agriculture has contributed roughly 33.4 trillion TZS (14.3 billion USD) to the country’s GDP. This contribution means agriculture is the biggest contributor to the GDP by 28%.

There is a critical role played by SMEs in the transformation of agriculture in Tanzania. SMEs face challenges among others, financial and personnel capacity that leads to failure in making use of the opportunities designed to boost their operational and investment capacity.

TAPBDS is proud to have been part of the agencies that work to address the challenges impeding the development of agriculture in Tanzania. Recently, 156 Agri-SMEs received BDS services including support in developing business plans (Project Proposals) and linkage to Financial Services Providers in this case Banks and Government 10% Local Government Loan Facility. This was through the partnership between Alliance for a Green Revolution in Africa (AGRA) and Government of Tanzania through Ministry under President’s Office Regional Administration and Local Government (PO-RALG).

A total of TZS 5,107,192, 180/= was filed for loan and at the end, 33 out of 156 SMEs including Individual SMEs and Group Enterprises managed to secure loan approvals worth TZS 901,000,000/= (USD 391,739.13). This is yet another proof on the value of BDS in spearheading change in agriculture through ensuring that Agri-SMEs have enough capital and thereby boost their investment and operational capacity.