TZ businesses urged to invest in innovation and to widen market reach

Business tycoon Felix Mosha speaking to Small and Medium-Sized Businesses in Dar es Salaam

Business tycoon Felix Mosha speaking to Small and Medium-Sized Businesses in Dar es Salaam

Operators of Small and Medium Enterprises (SMEs) have been urged to be more innovative and adopt best practices to aid the expansion of their businesses.

Felix Mosha, former Chairman of the East African Business Council said they should look for new ways of doing things to become competitive especially in the growing regional markets.

Mosha was addressing business owners and partners of the country’s Top 100 Mid-sized Companies as ranked by Bank M Tanzania.

“Expanding markets is good. This gives you a platform for global competitiveness and improves quality of produces including packaging … but all in all innovation is the key to success,” he said

The successful business tycoon underscored the potential of the East African Community (EAC) given it boasts of 159 million people, and a GDP of over Sh100 billion.

He also touched on the new tripartite signed by SADC, EAC and COMESA member states bringing together a total market of 600 million people with an equivalent of US$1.4billion GDP.

Mosha used examples of companies like Nokia, Motorola and Blackberry to advise business operators to invest in innovation or risk becoming irrelevant.

Jasper Grosskurth, Managing Director for Research Solutions Africa, says 61% of Tanzania’s SMEs plan to expand their operations in the East African region especially in Kenya.

Grosskurth however, notes businesses are reluctant to borrow capital from banks and instead rely on family and friends to raise money, a fact that might limit their investments.

“Figures indicate this year 60 percent of investment capital originated from owners while 31 percent come from banking institutions this is typical worrisome on how the companies would make investment,” he said.