Innovation hubs set for bigger role
MOROGORO: THE government will continue improving the business environment to help innovation hubs and business incubators grow into engines of business expansion, job creation, exports and economic growth.
Deputy Minister for Industry and Trade Dennis Londo said the government will pursue policy, legal and regulatory reforms, strengthen access to finance for Small and Medium Enterprises (SMEs) and expand innovation hubs in high-potential sectors to enhance the competitiveness of local businesses.
He said this yesterday while officiating the National Conference on the Contribution of Innovation Hubs and Business Incubators to the Growth of SMEs in Tanzania, organised by the Uongozi Institute in Morogoro.
Mr Londo said the government has already improved about 374 tax regulations based on recommendations of the Presidential Tax Reform Commission to attract both local and foreign investment.
He added that reforms will continue to reduce bureaucracy and the cost of doing business, while expanding access to finance through financial institutions, development funds, commercial banks and credit guarantee schemes for SMEs.
The government will also continue establishing and strengthening innovation hubs and business incubators in high-potential sectors, including agro-processing, mining, leather, pharmaceuticals, digital technology, the blue economy, clean energy and creative industries.
Mr Londo said continued investment in industrial infrastructure, Information and Communication Technology (ICT), energy and transport will lower production costs and improve the competitiveness of local enterprises.
“We are also strengthening institutions such as SIDO, COSTECH, TIRDO, VETA and NEEC to enable them provide better services to entrepreneurs and small businesses,” he said.
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Meanwhile, Uongozi Institute Chief Executive Officer Kadar Singo said the institute, in collaboration with the Ministry of Industry and Trade, conducted a study to assess the contribution of innovation hubs and business incubators to SME growth in Tanzania.
He said the study examined how the centres promote entrepreneurship and innovation while improving access to technology, finance, markets and business advisory services for SMEs.
On her part, Tanzania Women Chamber of Commerce (TWCC) Executive Director Mwajuma Hamza said about 78 per cent of businesses in Tanzania operate in the informal sector.
She urged the government to establish a unified digital system for collecting fees and issuing business licences, saying it would reduce bureaucracy and make it easier for businesses to operate.
