Tanzania SMEs ready to compete in EAC common market

Dr. Zena Mpenda, Agricultural Economist from Department of Agricultural Economics and Agribusiness (Sokoine University of Agriculture) (standing) instructs a section of entrepreneurs in Dairy and Sunflower oil processing industries, the correct procedure to follow in the value addition chain process. The five-days training for food processing SMEs was organized by Small and Medium Enterprises Competitiveness Facility (SCF) to build their capacity for both domestic and international competitiveness. It was led at Morogoro Top life hotel. Picture by correspondent.   

By Our Correspondent, Morogoro

Small and Medium Entrepreneurs in Dairy and Sunflower oil processing industry in the country are now set to challenge the believed competition imposed by food products imported from the neigbouring countries.

This was revealed by SMEs who attended a five days tailor made training organized by Small and Medium Enterprises Competitiveness Facility (SCF) in collaboration with Sokoine University of Agriculture- Department of Agricultural Economics and Agribusiness (SUA – DAEA) under the auspices of (Sokoine University of Agriculture – Bureau of Agricultural Consultancies and Advisory Services (SUA BACAS), held at Top life hotel in Morogoro.

According to Kalali Women Dairy Cooperative Society Limited Chairperson Nancy Manasseh, dairy products from Kenya has flooded markets in Kilimanjaro and posing a big challenge to locally produced dairy products. “Kenyan dairy products have flooded our markets simply because they are packed in attractive packaging materials, they are well labeled, they have signs showing that they have met all required standards and are being advertised a lot.

“Now that we have been trained on how to improve on our products in the whole value addition chain, we are sure that we are going to meet the required standards which will see our products obtaining standard seal like that of Tanzanian Bureau of Standards (TBS) and a certificate of compliance from Tanzania Food and Drugs Authority (TFDA) as well as having them registered by GS1 Tanzanian for the barcodes. In this manner, we will be able to supply our local and even the regional market with products of nationally and internationally acceptable standards,” said Manasseh.

Michael Mtalika, the Director General for Sunflower Seeds Oil and Cake Agency Company (SSOCA) LTD based in Singida Region, said despites having labeled their products, the competition was still very stiff on their side as they were not sure on how to go about it to obtain TBS seal as well as meeting other standards.

“This training has been an eye opener in terms of how to go about it before we meet the requirements of obtaining the TBS seal and other quality standards. We have realized that we were far much behind in meeting these requirements although our products were seen as safe for human consumption. When we go back, we are going to improve on areas holding us back from reaching our targeted markets. After the intended improvement, we are confident that we will penetrate easily into local, regional and international markets,” said Mtalika.

Jeremiah Theogene, Director General for Yesha Dairy Processing Industry (YDPI), concurred with other trainees that the training has managed to equip them with business management skills that will assist them to operate competitively in terms of producing quality products at reasonable cost with best marketing strategies.

SCF’s Business Manager Michael Bulemo mentioned that the training has managed to meet its target of trying to equip participants with the following skills; financial management skills, marketing, inventory management, cost structure, working capital planning, supply chain alignment, and quality and safety standards issues.

Mr. Bulemo said it is time for Tanzania entrepreneurs to try as much as possible to improve on the quality of their products if they want to favourably compete in this East African common market. “As SCF, we aim at assisting SMEs to meet quality standards required so that their goods can be easily certified to have the right standard. It is not true that there is bureaucracy in obtaining standard seal –like that of TBS- but it is our SMEs who might not know what is required before his/her product is certified. This one of the areas that SCF is working on.

“SCF is also working closely with SMEs to help them build their internal capacity for both domestic and international competitiveness. Though such trainings, we try to help them to improve their company’s internal management competencies, strengthen sourcing and distribution channels and also introduce the basics of quality and food safety standards requirements by niche domestic and international markets,” said Mr. Bulemo.