It has been argued that small and medium enterprises (SMEs) are currently able to contribute 35% of GDP.
According to a recent report by global telecommunications company GSMA worldwide it has said that now 95 percent of all small businesses, while with industry and agriculture (SMEs), generally make up 35 percent GDP.
The statement, which is available on the GSMA network, https://www.gsmaintelligence.com said SMEs have been a major catalyst for economic growth and development in the country because they include key sectors such as agriculture, transportation and trade.
It said SMEs in collaboration with various organizations and companies have helped to bring positive change to the local economy by creating jobs, promoting innovation, providing services and products to low-income people.
The report further stated that economic growth in the country is gender sensitive as women, men and young people are fully involved so it is clear that SMEs will help Tanzania grow economically by the middle of 2025.
The report said apart from the expected 2025 achievements but there are various challenges that have hindered people from running out of capital and citing some of the challenges as economic, political and social issues.
In addition, other challenges facing SMEs include difficulty in accessing financial services, lack of robust internet access and uncertainty in various parts of the country, especially in rural areas.
The report, however, has praised some of the private sector as being at the forefront of ensuring that they seek solutions to these challenges. And to give an example Tigo Company in Tanzania is one of the examples where it has been working to ensure it improves the business environment to ensure that SMSes are growing daily.
The statement stated that Tigo recently announced the launch of an office internet service, a service that has been introduced to ensure it improves accessibility in SMEs. The service offers up to 32 devices at a time when the device will have 4G + high speed internet access, and be able to use a variety of applications through Microsoft 365.
Besides, owners of small and medium businesses can gain other benefits by becoming Tigo-Pesa service agents. By doing so they will facilitate business by connecting with more than 70,000 companies that accept payment by phone and pay various invoices through Tigo Money and Wallet.