TOP 100 SMES AWARDS: Make the new SMEs policy inclusive, Mufuruki calls

Dar es Salaam. Stakeholders on Friday night called for collective action in promoting the Small and Medium Sized Enterprises (SMEs) including engaging the group in preparations of a new SMEs development policy.

They are optimistic in so doing the SMEs’ contribution to the gross domestic product (GDP), which currently stands at 35 per cent, would increase.

They were speaking at a gala dinner event to announce the winners of the Top 100 Mid-Sized Companies Survey, whose main sponsor is CRDB Bank Plc.

The survey, which recognises mid-sized firms that have shown entrepreneurial excellence, is a brainchild of Mwananchi Communications Ltd through The Citizen brand, and KPMG, an audit, tax and advisory firm.

Speaking at the event, chief guest Ali Mufuruki, who is the founder and chairman of Infotech Investment Group, commended government’s plan to come up with a new SMEs development policy but said private sector should full take part in the process.

Early this week Industry and Trade minister Innocent Bashungwa said the preparations of new SMEs development policy, with a view to improving their business undertakings, was in the final stages

“This is a good step but I am afraid those who participated in the preparation are the well educated people who are not familiar with the business environment,” said Mr Mufuruki.

“At that event, they do not know what exactly is happening on the ground,” he argued.

He was of the view that SMEs should be fully engaged in the preparation of the new policy.

He said efforts to build the private sector have not been enough to enable it drive the economy through tax and employment generation.

To empower the private sector there is a need for government to research and understand the SMEs.

The questions to be answered are like where are the owners, what are they doing, and how many people are employed by them.

“Then and only then will it be able to make informed decisions about the sector,” noted Mr Mufuruki, who doubles as the chairman of the Board of Trustees of the National Environment Trust Fund (NETF).

He said for decades the agricultural sector has been named as the backbone of the country, but surprisingly it has been lagging behind.

According to him farmers don’t need just money but they need markets to sell their products and make profit for them to prosper.

He stressed that the government has not made adequate research to understand the sector and called on it to collaborate with academicians, private sector to do a research that will identify benefits, challenges, solutions and way forward.

KPMG Partner Alex Njombe said there was the need to strengthen the SME sector to enable it to be at part with other sectors.

“In so doing the sector would stand a chance to prosper,” noted Mr Njombe.

Azam TV programs manager Fatma Mohamed said for SMEs to grow quality services emanated from innovative technology should be in place.

“We welcome all companies in here to come and grow with us,” said Ms Mohamed.

CRDB managing director Abdulmajid Nsekela said the bank has been working with SMEs to strengthen their businesses, to help them understand how to keep records and identify new markets.

According to him, the bank provides loans of short to long terms to all walks of life including farmers, large, and medium and small enterprises, among others.

“Over the last 10 years, we have issued loans worth Sh3.2 trillion,” noted Mr Nsekela.

The Financial Sector Deepening Trust (FSDT) head of SME Finance, Dr Peter Kingu, said there was need for a data base to identify those who win in the competition and build their capacity.

Dar es Salaam Serena Hotel senior sales marketing manager Jack Namatovu said considering the contribution of SMEs to the economy, their management had promised to be part of sponsorship to even more to come.