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Business Sector

Danida has been supporting the Tanzanian business sector since the late 1990’s.  The purpose is to improve the business environment that is necessary for businesses to be competitive, grow and develop. The program is currently in its fourth phase, which has a total budget of 600 million DKK for the period 2013-2019.

Women shopping at grocery - by Mikkel Ostergaard

This support has been delivered through a Business Sector Programme Support (BSPS), which is currently in its fourth phase (BSPS IV). This phase focuses on small holder farmers and businesses related to agriculture including local processing of agricultural crops to add value to the crops. It has a total budget of 600 million DKK, and is being implemented for the period 2013-2019.

The aim of the fourth phase is to increase employment and income opportunities for farmers and Micro, Small and Medium enterprises (MSMEs) - in a way that is environmentally sound and where businesses respect and promote human rights. The programme targets to raise the incomes of 300,000 farmers and create a total of 100,000 jobs. Furthermore, the programme targets an increased access to financial services for about 2 million Tanzanians.  

Previous phases of the program: Phase number one and two ran from 1998 and 2003 respectively. The third phase (BSPS III) with a budget of 550 million DKK started in July 2008 and most of its interventions will be completed in 2014. 

Why is Denmark supporting the Business Sector?

Denmark intends to contribute to Tanzania’s vision of becoming a middle income country by 2020; Analysis shows that Tanzania needs a competitive business sector which can create wealth, productive jobs and contribute to government revenue through paying tax.

How is Denmark supporting the Business Sector?

The current Business Sector Programme is designed to address some of the major factors that hinder the private sector from growing and creating employment. This will be done through 3 main initiatives:

  1. Agricultural Markets Development forms the heart of the programme. Denmark, in collaboration with other donors in Tanzania, will support farmers and businesses within Sunflower oil, maize and pulses production and processing in order to realize their growth potential.  The key interventions include linking the farmers and the agri-businesses to relevant markets; supporting removal of obstacles which prevent farmers and businesses from realizing their growth potential. The interventions under this, which will add value locally to the selected crops, will be facilitated and managed by the Agricultural Markets Development Trust (AMDT), which will be jointly financed by Denmark, Sweden, Ireland and Switzerland.
  2. Improved Business Climate. In selected geographical regions of Dodoma and Kigoma, local government authorities and business communities will be supported to identify obstacles to business development and improve the implementation of the existing legal framework. Small infrastructure investments will be facilitated to address identified obstacles and therefore help to unlock local business potential and economic development.
  3. Improved Access to Finance. This initiative will focus on finance for small and medium sized enterprises, agricultural finance and mobile money. The support is continuations and expansions of the Financial Sector Deepening Trust (FSDT) and the Private Agricultural Sector Support (PASS) Trust. Both organisations have been successful in facilitating access to finance for a large group of Tanzanians. The continued support will allow PASS and FSDT to reach a larger number of MSMEs, farmers and agribusinesses.