Strive to be transparent, SMEs urged

KPMG Partner Vincent Onjala speaks at the launch of the seventh Tanzania Top 100 Mid-sized Companies’ Survey in Dar es Salaam yesterday. With him are Mwananchi Communications Limited Executive Editor Bakari Machumu (centre) and Softnet Technologies Limited Director and Chief Information Officer Gilbert Herman. PHOTO | SALIM SHAO

What you need to know:

  • Speaking during the launch of the Tanzania Top 100 Mid-sized Companies’ Survey for 2017 yesterday, the Executive Editor of Mwananchi Communications Ltd (MCL), Mr Bakari Machumu, said participants in the survey including small and mid-sized entrepreneurs have to uphold transparency especially if they have a desire to win government contracts.

Dar es Salaam. Small and medium sized enterprises must increase transparency in their dealings for them to benefit from procurement opportunities offered by the government and the private sector.

Speaking during the launch of the Tanzania Top 100 Mid-sized Companies’ Survey for 2017 yesterday, the Executive Editor of Mwananchi Communications Ltd (MCL), Mr Bakari Machumu, said participants in the survey including small and mid-sized entrepreneurs have to uphold transparency especially if they have a desire to win government contracts.

“The government is fully committed to supporting SMEs but briefcase businesses are no longer practical in today’s Tanzania. It is better to be open so that you increase your chances of grab opportunities that are initiated by public and private sectors,” he said, adding:

“Through the amendment of the Procurement Act last year, mid-sized companies are currently able to win public and private tenders if they have the qualification.”

In its endeavour to promote the use of locally manufactured goods and related services in international competitive tendering and building capacity to local firms in procurement undertakings, the government amended the Public Procurement Act of 2011 last year.

Under the amendments, small scale producers—like those growing tomatoes, carrots and onions—will now be able to participate in government procurement processes, with up to 30 per cent of the money budgeted for buying several products for use by entities like armed forces, prisons and schools set aside for people in this category.

According to Mr Machumu, the government is currently very keen on the anti-corruption war and has increased revenue collection efforts, which means, to be open and on the governmemnt’s good books is most crucial.

He further called on mid-sized companies to participate in the Top 100 survey for better exposure and trust.

The winner of the Top 100 Mid-sized Companies Survey for 2016, Mr Munawer Dhirani, who is also Flightlink Ltd managing director, stated that being open in business has played a big role to his success.

“By showing-up the balance sheet of my business and the certificate of being a participant and winner for Top 100 Mid-sized Companies Survey, individuals and institutions are now recognising and trusting me more,” he said.

He noted that it has now become easier for him to get financial support from various banks and other lending institutions.

“In my three years as a participant in the Top 100, I have met a lot of significant people, some of whom have ended up becoming my customers, thanks to The Citizen, KPGM and other initiators for the exposure,” he noted.

According to him, it could have been difficult and too expensive for him to reach such a great number of people by himself, but it has become much easier due to big support from the initiators.

On the other hand, the KPGM Audit Partner Vincent Onjala said that the aim of initiating Top 100 surveys was to identify Tanzania’s fastest growing medium-sized companies with a view to showcasing their business excellence and highlight their best entrepreneurship stories.

“Over the last six years, we have had over 1,000 companies seeking to be among the Top 100 mid-sized companies. However, not all have been eligible for participation,” he noted.