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Business Sector

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

The Business Sector Programme Support (BSPS), currently in its fourth phase (BSPS IV), focuses on smallholder farmers and businesses related to agriculture including local processing of agricultural crops to add value to the crops. The aim of BSPS IV is to increase employment and income opportunities for farms and Micro, Small and Medium Enterprises (MSME) in a way that is environmentally sound, and where businesses respect and promote human rights.

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.

Through three main initiatives, the design of BSPS IV addresses some of the major factors hindering private sector growth and employment:

Agricultural Markets Development Trust (AMDT)

AMDT forms the heart of the programme. Denmark – in collaboration with other donors in Tanzania – supports farmers and businesses within sunflower oil, maize and pulses production and processing in order to realize their growth potential. Key interventions include linking the farmers and the agri-businesses to relevant markets and supporting removal of obstacles, which prevent farmers and business from realizing their growth potential. Interventions under this, adding value locally to the selected crops, are facilitated and managed by AMDT, which is jointly financed by Denmark, Sweden, Ireland and Switzerland.

Improved Business Climate (LIC)

The initiative supports local government authorities and business communities in selected geographical regions of Dodoma and Kigoma to identify obstacles to business development and improve the implementation of the existing legal framework. Small infrastructure investments shall address identified obstacles, and thus help unlock local business potential and economic development.

Improved Access to Finance

This initiative focuses 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.