Fighting the market to encourage small business in Tanzania

A new project focusing on selected value chains from seaweed to honey

Most of the farm weeds on the coast of Zanzibar are women. It is a laborious process that involves long hours and heavy loads in the water. So, as the water temperature rises, people are forced to work away from the ground.

The work has provided economic benefits to many women and young people in Tanzania who have been able to support their families through the sale of their products. A new partnership with the International Weed Industry, the International Integrated Framework (IIF) and the United Nations Development Program (UNDP) focuses on this sector, along with four other agri-trade value chains in the country, for the benefit of women and youth through trade development. Host.

Here’s how.

1) Analyze markets

Five selected value chains have been identified that could have a significant impact on the living conditions of the country’s rural population, with a particular focus on women and youth. These include honey, palm products, horticulture, seaweed, and anchovies.

“Instead of looking for a market, we decided to start with the markets,” said Emmanuel Ninko, head of UNDP’s local development pillar, which is implementing the project.

More accessible and competitive markets at the local, regional, and international levels can serve to alleviate poverty and provide a wide range of benefits for sustainable economic growth. Well-functioning markets stimulate investment and encourage small businesses to create, reduce costs, and create jobs.

An analysis of demand in the Middle East, Asia and Europe, as well as regional markets, found what Tanzania could offer. Initial surveys for the sectors have been completed, and plans are underway to develop a project to better support those working within them.

2) Build on previous work

At least as a developed country, the Tanzanian government has been cooperating with the FF for more than a decade as the country strives to grow its business. This includes a series of studies on the business environment, including a recent zero-sum study on Tanzania’s agricultural and tourism potential in 2017. The EFF has also partnered with the Swiss government and a number of partners on the United Nations Cluster Project, linking Agri-Agri-business sectors and tourism.

UNDP has also recently completed a project focusing on horticulture in the country.

“Why horticulture? Vegetation is one of the fastest growing sectors in Tanzania’s agricultural sector, with an average annual growth rate of about 11 percent. This is more than double the overall growth rate of the agricultural sector. The subdivision also provides employment for 4.4 million people in Tanzania, about 400,000 of whom are women.

In the past, the UNDP project has focused on issues related to productivity, the business environment, technology development, and market finance. Extension officers have helped women increase productivity by using drip irrigation and soil health. In Tanzania, the new EIF and UNDP partnership will benefit UNDP women and youth by diversifying their access to established markets.

3) Contact institutions

Providing technical support is an important part of the job. This includes conducting accurate research within the government, including the Ministry of Industry and Trade. As the country lays the foundations for a digital economy, the project is developing an ecommerce framework and strategy for Tanzania.

“We need to have a framework for these activities around digital economic services,” says Ninko. But we expect MSMEs to increase sales and exports, and that will require improvements in business and investment environments, such as the development of friendly policies and regulatory frameworks, which will ultimately boost trade and investment.

4) Use of resources

A collection of resources from various institutions is underway, with $ 2.1 million from the AF, $ 240,000 from the Ministry of Industry and Trade and $ 500,000 from the UNDP. As these efforts continue, more resources are expected to be invested in supporting small businesses.

5) Focus on free trade in Africa

Tanzania is expected to ratify the African Free Trade Agreement (AfCFTA) later this year, and the partnership is preparing an analysis of how the country can better position itself in this new opportunity. The study focuses on an in-depth analysis of price benefits by AFCTA and market access opportunities in Tanzania.

“The document supports the government and informs it of the potential benefits of the AFCFTA and the potential for new markets,” Nko said.

With institutional coordination and targeted support from INF and UNDP, Tanzania continues to maintain a smooth local, regional, and international trade position under Ninko’s “360-degree intervention.”

Leave a Comment