Financial Sector Deepening Trust (FSDT) wanted to encourage sustainable change among policymakers. FSDT contracted MSC to undertake a review of micro and small enterprise formalization requirements in Tanzania.
MSC produced a report that highlighted the key constraints to business formalization that young entrepreneurs in the country faced. The report included recommendations for improvement, best approaches to business formalization, best practices and lessons from other markets, and suggestions to develop the capacity of youth to enhance business formalization.
These reports anchored key changes in the business formalization processes and prompted the establishment of MSME formalization coordination committee spearheaded by Bank of Tanzania. The formalization committee has worked to simplify the processes to secure approval for the formalization of enterprises. It also relaxed the presumptive tax regime as a requirement for enterprise formalization in Tanzania.