WOMEN PLAY A KEY ROLE IN THE PRIVATE SECTOR AND MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN TANZANIA

This amounted to 1.716 million WOEs, over 99 per cent of which are microenterprises with fewer than five employees and almost three-quarters have only one employee.

The majority of women entrepreneurs is aged between 25 and 40 years, faced with low level of education. On the one hand, these women entrepreneurs are a potential motors for the economy to generate jobs and reduce poverty.

On the other hand, multiple obstacles continue to impede their capacities to start and grow businesses in sectors that generate quality jobs.

Although many women have an untapped potential for entrepreneurial development, they are often impeded by a lack of the necessary capacities, skills and resources.

They face more disadvantages than men due to legal impediments, cultural attitudes, less mobility and their businesses tend to be younger and smaller than men’s.

All of these areas came through in the report, to varying degrees.

A key barrier is the cultural environment that makes it more difficult for women to start and run enterprises based on traditional reproductive roles and power relations. Gender-related impediments also include challenges in claiming rights to property and assets which could be pledged as collateral for loans and inequality in inheritance rights.

Most WOEs in Tanzania are concentrated in informal, micro, low growth, and low profit activities, where entry barriers are low but price competition is intense.

These include trade, food vending, tailoring, batik making, beauty salons, decorations, local brewing, catering, pottery, food processing and charcoal selling.

Most WOEs sell their products in the local market, with only small percentages selling regionally of internationally.

Other challenges are laws and regulations affecting businesses (including licensing procedures) which are designed for relatively large projects and are therefore difficult for MSMEs and WOEs to comply with.

Corruption and bureaucracy make matters worse, especially for women, who are more vulnerable to pressure from corrupt officials.

Some women mentioned that they are being sexually harassed by different government officials (tax and municipal officials) when these officials find their business has some problems.

These challenges happen because most women are not aware of their rights and do not know who to go for help when such problems occur.

Environment and Challenges for Women Entrepreneurs The government of Tanzania has expressed commitment to support women’s entrepreneurship through a number of policy pronouncements as well as specific support programmes.

However, women entrepreneurs continue to face a challenging environment that contributes to stifling the growth of their enterprises.

A key barrier is the cultural environment that makes it more difficult for women to start and run enterprises due to their traditional reproductive roles and power relations.

Women divide their time between their traditional family and community roles and running the business and therefore they have less time to spend than men on their business than men.

Further, power relations both at the household level and in the environment impede their capacity to act fully upon their potential.

Due to customary law, their capacity to claim their rights to property which could be pledged as collateral for loans is significantly different to men’s.

Women who participated in the rural focus group discussions mentioned that it is common to find parents-in-laws discouraging their daughters-in-law from using their own property as collateral for fear that they will not manage to repay the loan.

Finally, some cultural and religious values restrict women from socialising and hence broadening their networks which could be useful for their business.

Speaking in Dare s Salaam on Wednesday during the launch of the ‘Women’s Entrepreneurship Development National Action Plan (WED NAP) 2016-2020, the Minister for Industries, trade and investment, Charles Mwijage said that although 50 per cent of women are entrepreneurs but they have not dared to invest in big industries.

However, he said that the launch of the National Action Plan (NAP) would provide a guideline to address the problem so as to achieve the overall goal of women empowerment.

 “Entrepreneurship is far beyond of only selling rice bans, but rather is the construction of economic industries of products that include many people in society, like the processing of agricultural products.

” Mwijage said if the 50 per cent of women entrepreneurs will decide to invest in industries could create employment opportunities, produce more products of high quality that meet local and international market standards, and increase the national Gross Domestic Product (GDP), and Increases country’s revenue by widening tax base.

For his part, the International Labour Organisation (ILO) Acting Director, Jealous Chirove, said that his Organisation has been in the forefront to support women in different areas.

Support development of business development service provider ILO has also developed a cadre of qualified the start and improve your business (SIYB) and women‘s entrepreneurship development (WED) tools trainers and business development support (BDS) provider, the traded trainer reached out over 1500 women (54 per cent young women and 43 per cent rural women).

Support to Women Cross border Trade Development of simplified information packages, to support women entrepreneurs understand trade rules and procedures to benefit the large market provided by EAC member states.

Remaining to be done Finalising of the info packs this will include editing, formatting editorial and printing of Kiswahili version.

Translation of the info pack to simple Kiswahili Language, formatting editorial and printing of the Kiswahili version, finalisation of the training modules, this will include editorial, designing and printing.

(Translation of training modules will be done by individual countries based on the needs); and launch of the modules at EAC level.

Others are training of additional trainers on Improve Your Exhibiting Skills (IYES) plus; currently there are total 20 trainers trained (12 BDS providers, 3 government officials and 4 ILO/ Women’s Entrepreneurship Development and Economic Empowerment(WEDEE staff) from the three project countries of Kenya, Uganda and Tanzania, new trainers are also needed in Rwanda, Burundi and South Sudan.

 Training of more BDS providers will increase outreach to women traders in all member states.

Capacity building of national platforms for women cross border trader’s associations and networks to deliver better services to formal and informal women traders on international buyer requirements, rights and duties of exporters and importers and custom procedures using the simplified information packages. 

Public Procurement ILO supports advocacy work for review of public procurement Act to mainstream Gender and to provide at least 30 per cent of the tenders to women youth and PWDs.

He further said that the Act of public procurement has been amended and signed by President John Pombe Magufuli, what they are waiting for are the regulations which ILO has already provided inputs to the formulation process. Remaining work Awareness creation on the amended Act, this will include support translation of amended act, and production of brailed text for people with visual impairment.

Institutional capacity building targeting women, youth, elderly and Palmyrah workers’ development society (PWDS) to enhance skills and knowledge on public procurement system and tendering processes.

This started in Dare es Salaam, Arusha and Mwanza, need support to rollout to other regions. Develop simple procurement guides and translation of lender documents of tender documents to simple and Swahili language Advocacy work targeting banks and BDs providers to provide affordable financial and BDS services to the special groups focusing on procurement services.

WED NAP Key areas for future interventions Capacity building of WEAS and business association in Public –private sector policy dialogue; strengthen access to technology; promote women access to and ownership of assets, among others.

For her part, Noreen Toroka Coordinator for Women’s Entrepreneurship Development and Economic Empowerment (WEDEE) said that the key objectives to promote Gender sensitive legal and regulatory system that advances women’s economic empowerment, promote effective leadership and coordination for promoting Wed Others are to strengthen access to gender-sensitive financial services, provide WEs with better Access to gender –sensitive business development support (BDS) services, strengthen access to market s and technology and to promote representation and participation of women entrepreneurs in policy dialogue.