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Tanzania: UNDP Boost Drives Private Sector Forward


 

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The Citizen (Dar es Salaam)

22 May 2008
Posted to the web 22 May 2008

Damas Kanyabwoya

A UNDP initiative to help the private sector in Tanzania has recorded remarkable success.

This has been shown by the growth in business, improved efficiency and performance in companies that have embraced it.

The African Training and Management Services (ATMS) project seeks to provide hands-on professional management services to selected private companies and commercially operated public enterprises.

It aims to develop and strengthen local management teams through continuous training and skills transfer.

The project, which has been operational in Tanzania since the early 1990s, is an initiative of the United Nations Development Programme (UNDP).

The World Bank's International Finance Corporation (IFC) acts as the executing agency while the African Development Bank (AfDB) is the regional coordinating agency.

The ATMS project is also supported by a wide range of development-focused institutions and donor countries and implemented by the African Management Services Company (AMSCO).

Speaking in Dar es Salaam recently during a cocktail party hosted by AMSCO for leading Tanzania business men and women, the assistant director of technical co-operation in the President's Office, Ms Roxana Kijazi, recognized the impact the ATMS project has had in a number of Tanzania companies.

A good example, noted Ms Kijazi, was that of Raffia Bags Tanzania Ltd.

"Since the commencement of the contract between Raffia Bags and AMSCO, the company has been able to establish operations in Kenya, Mozambique and South Africa with the Tanzanian operation being the best in terms of quality and productivity.

"The company has, in fact, attracted SwedFund to invest in 30 per cent shareholding of the company," she said.

Other companies that have embraced the ATMS project are AAR health Services Ltd, AAR Insurance Company, AON Insurance Tanzania, Exim Bank Tanzania Ltd, Strategis Insurance Tanzania, Musoma Dairy, Steadman Tanzania and Tanzania Express Cargo.

On his part, the UNDP country director in Tanzania, Mr Alain Noudehou, said the UNDP sees ATMS as a project that will revolutionize the business sector in Africa and ultimately help the continent achieve the Millennium Development Goals (MDGs).

He said Tanzania is among African countries currently benefiting from the ATMS project and promised UNDP's continued support in its development initiatives.

Expressing concern over the shortage of skilled human resources in Tanzania, the regional manager of AMSCO, Mr Kofi Andah, said the ATMS project's objectives were to address this shortfall, encourage good corporate governance and eventually assist local businesses become globally competitive as is the case with Raffia Bags Tanzania Limited.

Mr Andah was hopeful that more locally owned Tanzania companies would embrace this unique initiative by UNDP.

Over the years the private sector in Tanzania has suffered a shortage of skilled human resources in various industries such as insurance, health and finance.

This has in turn resulted in more and more foreigners managing business in Tanzania; hence the need for an urgent intervention.

The impact of industries in Tanzania is yet to be felt in the region.

Just like the rest of Africa, Tanzanian companies are still grappling with a number of challenges.

These include poor management, low capital and inadequate skills.

On its part the government has embarked on a fundamental restructuring exercise.

This is meant to bring the country to a point where it will be able to compete in the mainstream of the emerging global economy.

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Through its efforts, the government, with the backing and support of international financial institutions and other bilateral development partners, has embarked on programs that will see a vibrant growth of the private sector; hence its support of the ATMS project.



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