Tanzania is seeking to make small businesses an integral part of its industrialisation drive under new policies aimed at expanding manufacturing, strengthening local supply chains and creating jobs as the country pursues a $1 trillion economy by 2050.
The government says industrial growth must extend beyond large factories to include small and medium-sized enterprises (SMEs), which need better access to markets, technology, financing and skills to compete and grow.
The Minister for Industry and Trade, Judith Kapinga, said the government had reviewed its industrial development and SME policies to align them with the ambitions of Development Vision 2050 and changing economic conditions.
Speaking in Dodoma on Monday, November 2, 2026, when opening exhibitions showcasing locally manufactured products, she said the industrial sector was expected to contribute 15 per cent of gross domestic product (GDP) under Vision 2050.
The exhibitions bring together large manufacturers, entrepreneurs and institutions under her ministry ahead of the launch of the Sustainable Industrial Development Policy 2025 and the revised Small and Medium Enterprises Development Policy 2025 on Wednesday, November 4.
Kapinga said the policy review was intended to accelerate industrial development while ensuring that entrepreneurs were not excluded from the economic opportunities generated by large investments.
"To move at the pace of the government and achieve the ambition of a $1 trillion economy by 2050, we agreed that reviewing these two policies was necessary to match the country's changing economic and business environment," she said.
She challenged institutions under her ministry to continue supporting entrepreneurs even after they had entered the market, arguing that initial training and access to finance were insufficient without sustained technical assistance.
Kapinga cited leather products displayed at the exhibitions, saying some required better finishing to compete effectively, while packaging and product certification also needed improvement.
She urged the Small Industries Development Organisation (SIDO) and the Tanzania Bureau of Standards (TBS) to strengthen support for small manufacturers through skills development, quality assurance and certification.
"Even when entrepreneurs have received training and entered the market, we should not abandon them. We must continue working with them to improve their products so that they remain competitive," she said.
The government also plans to expand market opportunities through the Tanzania Trade Development Authority (TanTrade), including promoting the Made in Tanzania campaign, while the Business Registrations and Licensing Agency (BRELA) will continue supporting business formalisation.
The push for broader participation in industrialisation comes as the National Development Corporation (NDC) advances strategic investments intended to supply raw materials to domestic manufacturers.
NDC Information Officer Jackson Kelvin Ibrahim said negotiations with an investor for the long-delayed Liganga iron ore and Mchuchuma coal projects in Njombe Region had been completed, with implementation agreements expected to be signed in November or December.
The government has paid TZS15.4 billion in compensation to residents affected by the projects, removing one of the major obstacles to implementation.
Estimated at about $3 billion, the integrated projects are expected to support iron and steel production, create more than 6,600 direct jobs and approximately 26,000 indirect employment opportunities.
Ibrahim said processing iron ore locally into iron billets would allow Tanzania to retain more value from its mineral resources while supplying manufacturers with essential industrial inputs.
"Once the iron ore is extracted and processed into iron billets, value will already have been added locally. The products will then be available for both domestic and export markets," he said.
NDC is also promoting the Maganga Matitu iron ore project in Njombe, involving an estimated investment of $77.45 million, where equipment has been delivered and construction activities have started.
Another priority is the proposed Engaruka Soda Ash project in Arusha, which could supply raw materials to manufacturers of glass, soap and fertiliser, reducing reliance on imports.
Beyond mining, NDC is promoting industrial parks to attract investors and provide space for manufacturing businesses. TAMCO Industrial Park in Kibaha, Coast Region, already hosts about 14 factories, while the corporation is also developing investment opportunities at Kange in Tanga and Mwanza.
Its Kilimanjaro Machine Tools Company is meanwhile producing machinery and spare parts for other industries, helping build domestic engineering capacity and reduce dependence on imported equipment.
Kapinga said the government's responsibility was to create an environment in which businesses could expand, investors could grow and citizens could secure employment.
"When businesses grow, the government benefits and citizens gain employment," she said.