In 2004 the Government of the United Republic of Tanzania designed the Private Sector Competitiveness Project (PSCP) as part of implementing Enterprise Development Component of MKUKUTA I. The Objective of PSCP was to make the Tanzanian private sector more competitive and to create sustainable conditions for enterprise creation and growth. PSCP is funded by the International Development Agency (IDA) credit and a range of bilateral donors, including the UK AID (DFID) and DANIDA. According to the 2005 PSCP appraisal document, the project is to achieve its objectives by, among others, increasing the capacity of the local private sector to participate in domestic and international markets and to access appropriate financial services.
PSCP had three components. Component 3 aimed at increasing the competitiveness of Tanzanian enterprises through the Enterprise Development Programme, comprised of four major programmes, namely:Matching Grants:
- Tanzania Business Development Scheme (TBDS) & Technical Innovation Applied Research Scheme (TIAS)(2008-11)
- Cluster Competitiveness Programme (CCP); (2009-13)
- Business Development Gateway Programme(BDG(2009-13)
- Business Schools Linkage & CEO Scholarship Fund (BSL & CSF).
Component 3 was placed at Tanzania Private Sector Foundation (TPSF) for implementation and coordinated by the Prime Minister’s Office (PMO).
Thanks to the unique competitive methodology, implemented together with partners (TPSF, COSTECH, SIDO, TCCIA, ZNCCIA, NMB, PBZ), more than 11,000 MSEs from more than 120 districts had their capacity built from among 35,000 applicants. More than 85% of participants have formalised their businesses, obtained business licenses and, pay taxes. Other successes achieved include tax payments (73%), the acquisition of improved working equipment (84.9%), the marketing of products (70.9%), increased income (85.6%) as well as increased profit (80.2%). There are 26 Business Clubs – one in each region – established in the country and which are being nurtured by programme experts to develop into support hubs that provide additional business support services to entrepreneurs.
On order to ensure sustainability component 3 has been institutionalised into a Tanzania Entrepreneurship and Competitiveness Centre (TECC). The Trustees Incorporation Act has been issued on 9 April 2013 and First and Second board of trustees meetings held on April 20, 2013 and May 13, 2013 respectively. TECC Executive Director has been appointed and acting since April 22, 2013.