Background and the Current Situation
The Government of Tanzania is focusing on industrialization of as targeted in "Vision 2025" and making efforts of improving its business environment through enhancement of their productivity, management capacity and international competitiveness.
However, to realize the dynamic private sector development, so many challenges are still remaining. Some Tanzanian large enterprises are growing steadily, but a large majority of MSMEs remain stagnant while agglomeration of the relevant industries is emerging in some areas. The access to finance, management capacity, quality, and productivity improvement are still significant challenges for MSMEs. Consequently, Tanzania ranked 141st out of 190 countries in "Doing Business 2020" by the World Bank.
| Rwanda | Kenya | Uganda | Tanzania | Ethiopia | |
|---|---|---|---|---|---|
| Rank for D/B [1] | 38 | 56 | 116 | 141 | 159 |
| GDP per capita | $825 | $1,998 | $770 | $1,105 | $951.1 |
Towards "industrialization", which is the core agenda of the National Five Year Development Plan (FYDP) III (2021/22 to 2025/26) dated in June 2021, Japan's assistance focuses on:
- 1 . Presenting clear and realistic policy for industrialization
- 2 . Ensuring business environment with policy coherence
- 3 . Creating vital private sector
Note
[1] Doing Business 2020 (World Bank) (external link)
JICA's Policy on Development Challenges
Based on the above situation, JICA is mainly supporting following issues in order to promote industrialization
- 1 . To strengthen manufacturing enterprises through quality and productivity improvement (KAIZEN)
- 2 . To improve environment of financial accessibility for MSMEs
- 3 . To develop capacity for trade facilitation and border control
- 4 . To enhance startups through NINJA (Next INnovation with JApan) Competition and Proof of Concept (PoC) supports
Furthermore, JICA especially considers about the synergy and harmonization effect among each project (not only in the industrial development area, but also agriculture or other related areas) in order to support Tanzania's "industrialization" comprehensively.
KAIZEN Project: A case of a Tanzanian company who has implemented KAIZEN activities (Left: Before KAIZEN / Right: After KAIZEN). The company has increased its productivity by 10% through KAIZEN.
NINJA PoC: One of the selected company organized a seminar to disseminate their service to farmers in Moshi
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