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creation, and productivity improvements. Investment policies
By fostering entrepreneurship and The investment policies and incentives
supporting the growth of Small and Medium available to medium-sized businesses
Enterprise (SMEs), policies contribute to in Tanzania are designed to stimulate
poverty reduction, income generation, and economic growth, attract domestic
inclusive economic development, thereby and foreign investments, and create
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improving living standards and enhancing employment opportunities. In Tanzania,
social welfare. several national investment strategies,

Ensuring social and environmental policies, and programs have stipulated
responsibility: Policies promote responsible some interventions with important
business practices by establishing implications on medium-sized enterprises
regulations, standards, and incentives growth and sustainability as exhibited
to address social and environmental in some of the following policies and
challenges. Through measures such as strategies:
environmental regulations, Corporate Tanzania Development Vision - 2025
Social Responsibility (CSR) initiatives, (TDV 2025)
and labour standards, policies encourage
businesses to operate sustainably, ethically, Tanzania Development Vision 2025 (TDV
and in harmony with communities, thereby 2025) was developed in the late 1990s to
fostering long-term societal well-being and guide economic and social development
value creation. In several cases, socially efforts up to the year 2025 with the aim
responsible enterprises tend to outperform of transforming Tanzania into a middle-
those that are not. income country and transforming the
economy from a predominantly agricultural
Policies promoting medium-sized one to a diversified and semi-industrialized
businesses economy with a substantial industrial
Policies play a crucial role in fostering sector comparable to typical middle-
economic growth, innovation, and income countries. Among the investment
consequently job creation in Tanzania. priorities that aim to steer Tanzania to
By creating an enabling environment for achieve middle-income status by 2025,
medium-sized businesses to thrive, these the vision strategizes on how to support
policies stimulate investment, enhance medium-sized businesses to implement
productivity, and promote sustainable light manufacturing activities. The
development across various sectors. targeted industries are agro-processing,
There are several policies, laws, and by- manufacturing of consumer durables,
laws promoting medium-sized businesses, and assembly industries (processing of
however, in this chapter investment and meat, leather, fruits, nuts, wood, and paper
industrial policies are discussed. production).

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