THE
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His Excellency
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The workshop Chairman,
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The USAID Director Dr. Ray Kirkland,
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Permanent Secretaries,
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Regional Administrative Secretaries,
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District Executive Directors,
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Private Sector Representatives,
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Donors,
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Partners,
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Invited
Guests,
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Members of the Press,
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Ladies and gentlemen.
First I wish to
express my gratitude for the kind invitation extended to me to make a few
remarks at this extremely important workshop convened to launch Private
Enterprise Support Activities (PESA) for MICRO-SMALL ENTERPRISES (MSE)
activities in the country. Let me, at the outset, take this opportunity to
thank and applaud the organizers of this event particularly USAID and
Development Alternatives Inc. for taking the lead to host this
workshop.
Mr. Chairman,
The workshop
represents a special occasion and I believe all people gathered here today from
government, private and other organizations will find it not simply useful but
absolutely necessary to examine the road taken by partners in fulfilling the
objective of contributing to the economic growth of the country. This is opportune
in that it is taking place when the Government is committed to addressing
issues of micro, small and medium enterprise development, poverty reduction,
unemployment and as already spelt out the role of private sector in the
national economy. I am optimistic that the outcome of this workshop will
contribute to a better understanding on how to grapple with these pertinent
issues that affect the lives of the people engaged in small enterprise
activities.
Most
important, we policy makers, recognize the importance of creating a conducive
business environment for the Private sector in their noble cause of creating
employment, generating income and ultimately contributing towards poverty
reduction. Poverty has remained deep and pervasive where an estimated 80% of
the rural population live under poverty line with a disposable income of less
than US $ 1 per day. This situation has led to lack of income opportunities,
inability to meet basic needs, and vulnerability. The poor, the hungry and the
diseased cannot be expected to do much above their own pressing struggle to
survive.
That is why it
is important to initiate sustainable development programmes which can guarantee
availability of food and employment for the vast majority of our people through
promoting activities which would raise incomes and improve affordability. To
achieve that, we need social and economic transformation, which is essential in
empowering poor communities to manage and own resources for a better
livelihood. The thrust is to identify activities to be undertaken for economic
sustainability.
To a great extent agricultural produce and
other natural resources based products are still processed in markets outside
our country thus hindering faster technological transfer acquisition and
diffusion. Therefore, there is a need to develop methods that will make
technology development endogenous so as to internalize it and stimulate
economic growth. We are aware that MSE tend to add value to local resources and
use technologies which are easy to acquire. In this regard the generous support
of the donor community to economic reform efforts, for instance through PESA,
is very much appreciated.
Empowering
people at the grassroot level through Local Government Reform is seen as the
only way to improve governance and accountability. The Government is
re-examining responsibilities among various stakeholders, government, civil
society, NGOs, private sector, international partners and researchers and the
academia in order to increase transparency, mutual trust and democratic
decision-making mechanisms for accepted decisions and joint action. The reform
process enables the facilitation of Local Government to perform its function including support to
local initiatives which incorporate people’s needs. Within the same spirit, I
hope Business Associations in identified regions are facilitated to have their
voice heard in the endeavor to articulate the concerns of those they represent.
Where they are still weak they are being consolidated and strengthened to take
the lead in grassroot activities.
The ongoing liberalization and
privatization efforts have not led to the envisaged marketing that would have
ensured rural producers of competitive prices. Further, MSE are of great
potential in terms of creating employment opportunities, expanding domestic
production and increasing incomes as well as involving the majority of the
people who would otherwise not be effectively involved in the economy.
Estimates show that out of about 700,000 new entrants into the labor force
every year, it is only 40,000 that are employed by the public sector. Yet, in accordance with a recent (2000/01)
Tanzania Mainland Labour Survey, there are about 2.3 million people who are
unemployed, the majority of whom are the unskilled youth. I hope this workshop today will come up with
suggestions particularly to employment in MSE, improve access to markets and
credit institutions and establish relationship for better working and
productive partnerships.
Indeed as we look ahead, there is
need to mobilize human resource and harmonize it with economic activities in order to attract increased
sound investments. Mr. Chairman, at a meeting like this, time does not permit
for much details but suffice it to say that capacity building has to be
enshrined in your programme for quick tangible results. I hope MSE will provide
the ground for transfer of business
management and entrepreneurship skills through training and awareness
programmes. Training should include information on how to access finances and
marketing strategies.
In particular I wish to request
this workshop to draw up some strategies for assisting small scale farmers to
have access to new markets such as in the
Further, I seriously request PESA
to assist our small scale farmers to locate overseas food processors who can
form partnerships with individual farmers or cooperatives to invest in rural
areas. PESA in collaboration with business associations such as TCCIA, CTI and
Board of External Trade and in conjunction with the Tanzania Government could
advise rural farmers on products for which our country has comparative
advantage and encourage extensive promotion of such goods for export.
Funds should be available to
enable SMEs to make use of them individually or in joint venture partnerships
in order to increase production for export.
In addition, promotion of SACCOS should be strongly encouraged so as to
be another source of funding for small grassroots credit ventures.
I do, however, appreciate your
endeavors to create MSE in identified regions in the country. I am sure they
will essentially be transformed into viable enterprises with contribution to
poverty reduction, absorption of the unemployed and contribute towards economic
growth.
To conclude, I trust that your
deliberations to-day and tomorrow will bring partners much closer and be able
to chart out priority areas of concern based on mutual commitment, for improved
linkages in information exchange. I wish
you fruitful workshop deliberations and look forward to the results of this
meeting.
Mr. Chairman, Your Excellency,
distinguished guests, workshop participants, ladies and Gentlemen, may I now
have the honour and pleasure of declaring this important PESA workshop formally
opened and
THANK YOU FOR YOUR ATTENTION.