Tanzania's SIDO ventures into private partnerships

Image result for sido tanzaniaSmall Industries Development Organisation (SIDO) has ventured into public private partnership (PPP) as a strategy to reduce its dependence on government subsidy.

SIDO, the catalyst of small scale industries in the country, saw its funding plummet recently thus hindering implementation of its objectives and mission.

SIDO Director General Eng Omar Bakari said that PPP was among strategies to rejuvenate the three decade-old organisation which in 1980s was the spring-board for small and medium factories.

“The way forward is not to depend directly on the government, but to partner with other businesses under PPP to make things done,” Eng Bakari said.

The DG said for instance SIDO signed an over 4bn/-project with Match Maker Association for citrus and beans projects in Tanga.

The Match Maker is committed to equitable economic growth through sustainable, market-based investments that involve African smallholders.

SIDO commissioned Match Maker to research the fresh and processed citrus fruit sub-sector in Tanga Region with funding from the International Fund for Agricultural Development (IFAD).

Research included value chain governance, horizontal and vertical integration, and impacts on small and medium enterprises.

Eng Bakari said SIDO started to implement PPP way back as currently MUVI project that covers six regions is basically operating under the same strategy.

MUVI is a combination of villages’ entrepreneurship. He hinted that SIDO was about to sign another PPP agreements with TISCO Associates, Business Care and Price Water-House Coopers (PWC) under the same vein.

The organisation has also signed an agreement with International Trade Centre (ITC) for construction of a packaging centre at SIDO’s Vingunguti Industrial Area where 100,000 US dollars has been committed for the project 
“We are waiting for the arrival of packaging machines from India... the technicians have been trained in India already.” Fen Bakari said.

He added: “under the packaging centre, talks are also under way to involve big manufacturers to help the centre as well.” The project will be fully implemented in five years.

The packaging centre will involve training, producing and raising awareness for SMEs to add value on their packaging materials thus attract customers in and outside the country.

SIDO was established in 1973 with the objective of developing the small industry sector in Tanzania.

SIDO was expected to fulfil a very wide range of functions, from policy formulation to direct support to industries, to hands-on involvement in the establishment of SMEs in both rural and urban areas.
Source: Daily News, reported by Abduel Elinaza, from Dar es Salaam, Tanzania

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