Study highlights why Tanzania's SMEs miss lucrative public tenders
A study from the University of Dodoma suggests that Tanzanian SMEs struggle to win public tenders due to a lack of technological capabilities. While preferential policies exist, the research emphasizes that digital adoption is necessary for smaller firms to compete with large corporations.
Why it matters
Understanding the barriers to SME participation in public procurement is vital for fostering inclusive economic growth.
Dar es Salaam. Tanzania's efforts to use public procurement as a catalyst for the growth of small and medium enterprises (SMEs) are beginning to bear fruit, but businesses still need stronger technological capabilities if they are to compete effectively for government contracts, a new study has revealed.
The study by researchers from the University of Dodoma (UDOM); "Preferential Purchasing Policies and SME Participation in Public Procurement Markets: Do Technological Capabilities Matter?” was authored by Baraka Israel and Alban Dismas Mchopa.
It was published in the African Business Management Journal (ABMJ) by the University of Dodoma in 2026 and it examines whether preferential procurement policies are helping Tanzanian SMEs secure a larger share of the country's public procurement market.
The findings come at a time when successive governments have emphasised local content, industrialisation and private-sector-led growth, with SMEs widely regarded as the backbone of Tanzania's economy.
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