Improved business environment and investment climate, making the business sector in Dodoma and Kigoma ready for further growth and competiveness and in doing so capacitating the LGA's to support this development.

Updates Published by: Captek Solution

LIC has established a specific fund known as Small Industrial Facilitation Fund (SIFF) with the objective of catalyzing investments in local business facilities in selected value chain to unlock the flow of investments into the local economy. The targeted SIFF business facilities can be owned or operated by public entities such as an LGA, private investors, or through partnership arrangements (e.g, Public Private Partnerships, PPP). The SIFF has set aside funds that will support investments in strategic areas identified under LIC in selected LGAs. Initially, LIC will target Dodoma, Kongwe, Kigoma-Ujiji and Kasulu LGAs (districts), but ultimately it is expected that LIC will operate in all districts in the two Regions. The investments are intended to catalyse increased resource flows that will propel business and economic growth. The investments will be awarded as matching grants to those who meet specified criteria and for a maximum period of the 4 initial years of LIC implementation.

SIFF intention

The intention of SIFF is to support viable projects that can be “bankable”. For larger projects that need external intervention specific on financial or technical assistance the LIC and SIFF can team up with other organization such as UNCDF and PASS to assist an applicant to develop a bankable business plan which backed up with well financial analysis can solicit funds from financial institutions. Even small projects must provide as a minimum a consolidated 1 years monthly cash flow and 3 years annual cash flow estimate. For a medium project a bankable business plan including a comprehensive financial analysis must be provided. LIC can financially as well support such business plan preparation for potential strategic or promising business growth areas.

SIFF support areas

The SIFF will provide funds in three broad categories which are:

(i) local business facilities,


(ii) local Infrastructure


(iii) Local cluster

A brief summary on these support areas is given below;

(a) Local business facilities:

The SIFF will provide matching grant funds to support PPPs developing strategic business facilities. In many cases, the lack of appropriate and fully functioning business facilities hinders the operations and growth of local businesses. Examples of the kinds of facilities the SIFF could support include local business stalls, business sites, market places, cold storage, and business incubators.

(b) Business infrastructure:

While the SIFF will not have large volumes of funds typically required to support infrastructural projects (e.g., roads, energy and water supply, irrigation), many of which are expensive and have a long timeframe (e.g., 7-15 years), it will be able to catalyse other investments into these projects. It will do this by financing technical assistance in the preparation of feasibility studies and PPP proposals.

(c) Cluster enhancements:

The SIFF will provide financial support to specific initiatives that enhance the performance of local clusters operating in selected value chains. Local clusters require investments that can enhance the opportunities for increased investment and participation by local business. This may involve the removal of legal, regulatory or administrative bottlenecks and strategic investments to improve the functioning of value chains (e.g., subsidizing inputs, developing market linkages, promote new technology, green investments both at producer as well as processors level, new varieties of approved seed, and demonstration plots).

SIFF supported projects as of June 2017