ARUSHA: Tanzania is positioning inclusive economic growth at the centre of its development strategy, linking broader participation in the economy to social stability, national unity and long-term prosperity, Prime Minister Mwigulu Nchemba said.
Speaking at a Small and Medium Enterprises (SMEs) forum in Arusha, Nchemba said widening access to economic opportunities across all segments of society is essential to sustaining growth and preventing inequality-driven tensions.
“We must build an inclusive economy that involves all groups in society,” he said. “The government will ensure that this agenda is implemented in practice.”
Tanzania’s approach reflects a broader policy shift across developing economies, where governments are increasingly emphasising inclusive growth as a stabilising force. Across sub-Saharan Africa, rapid economic expansion has often been accompanied by uneven distribution of benefits, prompting concerns about inequality, youth unemployment and social cohesion.
Institutions such as the World Bank and the International Monetary Fund have repeatedly highlighted inclusive growth — particularly through job creation, SME development and financial access — as critical to sustaining development gains and reducing poverty.
Analysts say countries that fail to broaden participation risk slower long-term growth and heightened social pressures, particularly as populations expand and urbanisation accelerates.
Nchemba said Tanzania is focusing on SMEs as a key vehicle for inclusive growth, noting that women account for more than half of small businesses in the country.
“Women continue to demonstrate strong discipline in business management and financial decisions,” he said, describing them as central to both household resilience and national economic stability.
Expanding access to finance remains a major priority. The government is promoting targeted funding for women and youth, while encouraging financial institutions to extend credit to underserved groups, including rural entrepreneurs.
Globally, SMEs account for a significant share of employment — often more than 70% in developing economies — but continue to face constraints in financing, market access and regulatory frameworks.
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Tanzania’s economy has grown at an average annual rate of about 6.2%, placing it among the faster-growing economies in East Africa. However, Nchemba said growth must become more inclusive to ensure its benefits are widely shared.
The country aims to achieve upper-middle-income status under its Vision 2050 strategy, targeting per capita income of around $7,000 — a goal that will depend not only on growth rates but also on the quality and distribution of that growth.
Reforms underway include the introduction of more flexible financing mechanisms, such as an export credit guarantee system to support SMEs and young entrepreneurs, as well as broader regulatory adjustments aimed at improving the business environment.
Nchemba called for concrete outcomes from the forum, including a clear implementation roadmap with defined responsibilities and timelines — reflecting a growing emphasis on translating policy commitments into measurable results.
Deputy Minister Pius Chaya said the government would continue strengthening collaboration with investors and SMEs to support long-term ambitions, including building a trillion-dollar economy.
Deputy Minister Dennis Londo said SME development remains central to boosting employment, productivity and tax revenues.
Tanzania’s focus on inclusive growth aligns with a wider global recognition that economic expansion alone is insufficient to guarantee stability. Instead, the extent to which growth creates opportunities across society is increasingly seen as a defining factor in long-term resilience and cohesion.