Tanzania's government is working on a unified policy framework designed to remove obstacles facing businesses and improve access to financing and investment land, according to the Permanent Secretary in the President's Office responsible for Investments, Dr Fred Msemwa. The reforms aim to bring informal businesses into the formal system, allowing them to access credit, markets and social protection services. Dr Msemwa said businesses operating outside the formal economy often cannot reach credit, technology, expertise and insurance.
Formalisation would allow businesses to operate within a recognised framework and provide workers with social security benefits, Dr Msemwa said. The proposed National Investment Policy will replace the 2022 policy and address challenges facing businesses and investors, according to the Tanzania National Chamber of Commerce. Access to capital remains a major challenge for domestic investors seeking to establish or expand operations.
The Tanzania Bankers Association said the policy would strengthen the financial sector's role in supporting development. Banks are ready to support micro, small and medium-sized enterprises, youth-led businesses, women entrepreneurs and manufacturing ventures, the association's Executive Director said. However, formalising informal businesses is critical because many lack the reliable financial records banks need to assess creditworthiness.
The banking sector has urged businesses to adopt digital payment systems. Electronic transactions can improve transparency and build reliable financial records that help lenders evaluate loan applications, the Tanzania Bankers Association said.