Carol Ndosi
5 min readApr 27, 2020

#COVID19TZRealities — The Economic Impact on Entrepreneurs, Startups, Small and Medium Enterprises in Tanzania

As COVID 19 pandemic continues to affect global and local value chains across the world, many countries have taken commendable proactive measures to ensure they contain the socio-economic effects that have come with the pandemic. While many have deployed protective measures in cities going as far as total shutdowns and lockdowns, there have been considerable initiatives deployed by governments to provide for their people through rapid relief and stimulus programs that can mitigate national and regional economic impact.

Tanzania like many other developing countries has the majority of its workforce working in the informal economy. The workers in this sector are the first to be hit by COVID 19 socio –economic impact as they do not have the privileges that come with formal employment, and the running of their businesses and work is already dominated by uncertainty even before COVID 19. Many of the workers affected are young people and women who survive on minimum wage and very low income.

Additionally, there have been reports of even those in formal employment in some sectors who have suffered from job losses due to the mere fact that the sector they work in is collapsing during this pandemic. Workers and owners of businesses in the travel and tourism sector have had to suspend without pay or totally close down operations due to the travel ban the country has put in place. The education sector is also suffering tremendous effects as educators struggle to transition to digital platforms to provide remote learning and innovative approaches to reach the most vulnerable children. Staff retention has become a huge challenge as parents have stopped paying the school fees as their children are now home educated and consequently the income for the schools has fallen drastically which has in turn impacted on the teachers’ wages.

The Launchpad Tanzania and Maarifa Hub (Tanzania) as stakeholders working at the intersection of sustainable development and decent work and economic growth, took the initiative of running a survey on COVID 19 economic impact on small and medium businesses as well as entrepreneurs in Tanzania to determine the severity of the impact.

Although Tanzania has seen a low rise in number of infected and affected persons with the virus, the socio-economic impact has been evident due to the effects on the global value chains. The survey was shared in social media platforms and received 201 responses…

Carol Ndosi

🇹🇿 |Development Advocate|#GlobalGoalsTZ Champion|Feminist|MWF ‘16|Social & Biz Entrepreneur @MaMaendeleo @nyamachomafest @bongofesttz @thelaunchpadtz