Poverty Reduction through Productive Activities

UNIDO areas of intervention

UNIDO addresses Poverty Reduction by focusing on enabling the poor to earn a living, rather than providing help to deal with the symptoms of poverty. As such, UNIDO focuses on micro, small and medium scale enterprise development and rural & agro-industrial development, including rural energy for productive use, by supporting the development of clusters, rural development and women entrepreneurs (including post-crisis assistance), improving business environment and institutional support and strengthening business information services.

Additionally, UNIDO offers programmes to support market access while providing assistance to allow for the SME’s adherence to the Global Compact. UNIDO is indeed a core agency of the Global Compact, and a member of the Donor Committee for Small Enterprise Development. As such, UNIDO co-chairs the Working Group on Business Linkages and Value Chains.

One of the challenges that Tanzania continues to face is in the development of the agro-industrial sector as a major contributor to economic growth and the poverty reduction effort. It is therefore no coincidence that the next cycle of the Integrated Programme for Tanzania will invariably focus on strengthening industrial governance through capacity building in policy and strategy support for the development of the industrial sector as well as support to the SME sector through Agro -Value Chain Upgrading.

In Tanzania, UNIDO is implementing several activities targeting this area, including:

  • Capacity Development for SMEs in Agro/Food Processing: the food processing activities in the framework of the UNIDO/MITM Integrated Programme include support through policy advice and establishment of pilot centers to demonstrate the potential of agro processing in value addition, mitigation of post harvest losses and improved income of rural communities.
  • Joint Programme 1: UNIDO is one of the most active UN agencies involved in the implementation of the first Joint Programme addressing Wealth Creation, Employment and Economic Empowerment. JP1 has been developed by ILO, UNDP, FAO, UNIDO, WFP, UNICEF, IFAD and UN Habitat and targets the promotion of rural and private-sector development with a particular focus on youth employment and rural livelihoods.
  • Food security in Northwestern Tanzania: UNIDO, UNDP, FAO, WFP and UNICEF are working closely with Regional authorities in the execution of one of the joint programme components which aims at “Strengthening Human Security through Sustainable Human Development in Northwestern Tanzania (Kigoma and Kagera regions).  UNIDO’s activities relate to the component for improving food security of peasant farmers through reduction of post-harvest losses, by upgrading and enhancing agro-processing activities as well as promoting renewable energy technologies for productive use.

Women entrepreneurship programme in food processing
Sorting of peanuts for paste and butter processing