‘Inclusive economy fosters unity’

ARUSHA: THE government has reaffirmed its commitment to building an inclusive economy, emphasising that it remains a cornerstone for strengthening peace, unity and shared prosperity among all citizens.

Prime Minister Dr Mwigulu Nchemba expressed the government determination yesterday in his speech delivered at the Small and Medium Enterprises (SMEs) Meeting and Investment and Business Exhibition held in Arusha.

“We must build an inclusive economy that involves all groups in society. On our part, the government will ensure that this agenda is implemented in practice,” he said.

Dr Nchemba said inclusive economic participation is central to transforming livelihoods and ensuring that the benefits of development reach all citizens without leaving anyone behind.

He explained that inclusivity in economic activities strengthens social cohesion by bringing different groups together in productive engagement, thereby promoting peace and national unity.

He noted that the strong participation of stakeholders in the forum reflected commitment and determination to build an economy that serves all citizens.

The Prime Minister commended organisers and participants for their dedication, saying the initiative aligns with Tanzania’s national development agenda and Vision 2050 aspirations.

Dr Nchemba also praised women for their significant contribution to economic growth, saying they continue to play an important role in both household and national development.

He said more than 50 per cent of Small and Medium Enterprises (SMEs) in the country are owned by women, showing clearly that women are major drivers of the economy.

“Women have continued to demonstrate strong discipline in business management and financial decisions, making them central to household and national economic stability,” he said.

He said the government remains committed to working closely with stakeholders to strengthen business development and expand economic opportunities.

Dr Nchemba further explained that Tanzania’s Vision 2050 aims to achieve upper-middle-income status with a per capita income of about 7,000 US dollars, saying the goal is ambitious but achievable through collective effort.

He said although the economy has been growing at an average rate of 6.2 per cent annually, the growth must be more inclusive to ensure meaningful participation of women, youth and informal sector actors.

He highlighted ongoing reforms aimed at improving access to finance, including government funds targeting youth, women and entrepreneurs, as well as local government allocations supporting economic empowerment.

He also pointed to continued efforts by financial institutions to expand credit access to SMEs, including those in rural areas.

In addition, he said regulatory reforms are underway to introduce more flexible financing mechanisms, including an export credit guarantee system to support SMEs and young entrepreneurs.

Dr Nchemba called for a clear action matrix from the summit, which should be submitted to the Office of the Prime Minister to ensure proper follow-up and implementation of all commitments made.

ALSO READ: Unity is Tanzania’s path to progress – Chijoriga

He stressed that recommendations must not remain on paper, but must be translated into measurable actions with responsible institutions and clear timelines.

He also urged financial institutions and stakeholders to make concrete commitments to support enterprises emerging from training and incubation programmes.

On his part, the Deputy Minister in the Office of the President, Planning and Investment, Dr Pius Chaya, said the ministry will continue to strengthen cooperation with SMEs and investors to enable them to grow and contribute towards achieving a one-trillion-dollar economy.

Meanwhile, the Deputy Minister for Industry and Trade, Dennis Londo, said the Government has placed strong emphasis on the growth of SMEs so that they can fully contribute to economic growth, employment creation and national revenue through taxation.