ESAURP, FSDT launches a project of formalization and capacity building of MSMEs in Tanzania.

 Eastern and Southern African Universities Research Programme (ESAURP) has today launched a project geared on formalizing of Micro, Small and Medium entrepreneurs (MSMEs) covering ten (10) regions of mainland Tanzania; Arusha, Kilimanajaro, Mbeya, Iringa, Kagera, Mtwara, Kigoma, Singida, Morogoro, Dodoma.  

The project, sponsored by Financial Sector Deepening Trust (FSDT) will target a total of 1,500 (150 from each region) businesses/ entrepreneurs.

Speaking to reporters, ESAURP Executive Director Professor Ted Maliyamkono said the project aims to help micro and small businesses in the informal sector acquire business skills to help them grow and cross over to the formal economy, enable them to have access to financial services and also to work with partner banks to create a shift in banking culture in the way they assess informal sector projects seeking financial services; particularly loans.

‘The underlying purpose of the project is to build the capacity of 1,500 micro and small businesses in order to grow.  This will be done by creating a replicable training programme aimed at helping small businesses integrate into the formal economy’ said Prof Maliyamkono

Prof Maliyamkono further noted that the project will also create a cadre of experienced trainers who will be able to deliver courses or programs to develop business skills to small businesses throughout the country thus increase the number of business service providers in the country, and expand the country’s business development capacity.

Also speaking at the event, FSDT Technical Director, Sosthenes Kewe said his organization support to this project aligns with their mission of empowering Micro, Small and Medium entrepreneurs to access financial services.

‘Small and medium sized enterprises (SMEs) are increasingly being recognized as a key drivers of economic growth and development for African countries. As contributors to both income generation and job creation, SMEs have the potential to significantly boost private sector growth’ said Mr. Omari Issa, CEO of the President’s Delivery Bureau (PDB) and who was the Chief Guest of Honors.

The project involve conducting business environment formalization review and capacity building programme by way of delivery of a 5 days training sessions to selected entrepreneurs in each region (general business management, financial management, record keeping, governance/business registration, tax matters etc) and a three month mentorship and setting up of business support centers that will operate for three months.

The project is a joint initiative of the FSDT, Eastern and Southern African Universities Research Programme (ESAURP) and committed participating financial institutions.