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Profiling of Agribusiness SMEs in Tanzania and Uganda

Profiling of Agribusiness SMEs in Tanzania and Uganda

Executive Summary

SMEs play an ever increasing role in creating income and employment. In Tanzania for example, it is estimated that a third of GDP originates from the SME sector while in Uganda it estimated to contribute about 75%. However, most agricultural SMEs are informal, poorly developed, and inadequately supported which limits their ability to compete in global, regional or domestic markets. Their full potential is constrained by developmental and operational challenges that include inadequate capital, weak internal management, limited market access, complex regulatory and administrative environments a well as poor road and agricultural infrastructure. This situation is exacerbated further by inadequate and inaccurate information on agricultural SMEs and their challenges.It is for this reason that the Bill and Melinda Gates Foundation commissioned Kilimo Trust to undertake a study to profile agricultural SMEs. The core objective of the study was to gather accurate information to guide the development of better targeted interventions to support agricultural SMEs in Tanzania and Uganda so as to reduce their risks and challenges in order for them to fully participate in the seven food staple value chains.

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