The Government of the United Republic of Tanzania began its first major attempt to promote the small industries sector as far back as 1966 with the formation of the National Small Industries Corporation (NSIC) under the National Development Corporation (NDC). The emphasis of the NSIC was to establish small industrial clusters, essentially training-production workshops, which in 1973 were taken over by the Small Industries Development Corporation (SIDO), and continue to operate. Development partners, donors and NGOs have over the years influenced the regulatory reform process in creating the right regulatory framework and institutions, and developing sectoral policies and programmes. They have also implemented, and continue to implement, grassroots skills training and micro-finance programmes to encourage income-generating activities.
It would appear that an inventory of these past and current MSME development initiatives has not been compiled, nor has there been a systematic effort to learn lessons from project assessments. This has limited the exchange of “good practice” models and approaches.
In September 2002, the University of Dar es Salaam completed a report on recent donor efforts on behalf of the DAC Private Sector Development Group Tanzania and the International Working Group for SME Development of the OECD Committee of Donor Agencies (Olomi and Nchimbi, November 2002). This review took stock of these efforts and drew up lessons learned and best practices to guide future interventions by governments, donor, and other agencies.23 The report noted that efforts should be made to improve coordination between donors supporting the SME sector. Achieving coordination at the governmental level is also seen as a critical factor in improving the policy and programme environment for MSMEs (MIT, 2002).
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