24 December 2012

Tanzania: More Traders Get Stalls in Moshi

INDUSTRIAL units within the Small Industries Development Organization (SIDO) Estate in the municipality of Moshi have increased from 13 to 17, employing 200 permanent workers and 25 casual labourers, a report released by the Kilimanjaro Regional Commissioner's Office has shown.

"SIDO was keen at assisting small entrepreneurs to establish working places and through the initiative of combating and eradication of poverty in Tanzania. The organization has set up 10 production and business stalls which have so far employed 22 workers," says the six-page report.

The report further says that due to limited space for small entrepreneurs to establish viable projects in the municipality and the inability of SIDO to set up more stalls within the Estate, the organization has decided to invite wealthy entrepreneurs to erect business stalls and sign special contracts between them and the investing entrepreneurs.

Under this arrangement, construction costs of the business stalls will be deemed as a pre-paid tax which will be recovered through 75 per cent deduction of the monthly rent a tenant has to pay until the invested money is fully re-paid within a period of ten years.

It says that 25 per cent in tax will be used to cover the land rent of the area on which the business stalls were constructed. The report revealed that so far 112 clients have signed contracts for the 142 erected stalls worth 900m/-. The 30 stalls have started production activities creating employment opportunities for 40 people.

The remaining 112 stalls were either in the process of having requisite machinery installed and power connection or were in different stages of completion of construction.

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