BUSINESS FORMALIZATION PROVIDES NEW OPPORTUNITIES Geoffrey Yohana Mbuna (29) started making organic fertilizer in 2022 from a passion for safeguarding the surrounding ecosystem in his community in Mbarali, Mbeya. Geoffrey was delighted that demand for his organic fertilizer from local farmers was increasing; however, to grow as an entrepreneur, he needed to formalize his business. “My informal business had been growing steadily until the lack of being formalized affected my ability to connect to critical stakeholders for expansion of my business.” Many youth entrepreneurs do not see the need for formalization, especially those in rural Tanzania who are often satisfied with what they have; however, formal and reliable markets, with access to customers, competitors and market information, is an important factor that prompts entrepreneurs to seek formalization. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi provides business development services that match youth enterprises’ unique needs to strengthen their operational capacity. In 2023, together with 1,673 (females 619, males 757) other youth enterprises located in Feed the Future Tanzania Imarisha Sekta Binafsi zones of influence Iringa, Mbeya, Morogoro, Unguja and Pemba, Geoffrey participated in business formalization workshops organized by the Activity. Working closely with local government authorities, financial institutions and tax authorities, these workshops help youth enterprises understand the benefits and processes of formalization and directly assist them with their business and tax registration. “The business formalization workshop has changed my business mindset. As an informal business owner, I was afraid of registering my business with the tax authorities,” Geoffrey says, “However, after the workshop, I learnt that I may be exempted from high-income tax payments because my turnover is below a certain threshold.” There are numerous benefits to formalizing youth businesses within the agriculture sector, including access to financial services, access to business development support, access to public procurement and the ability to apply for certifications and licenses to access national and international markets. “After formalizing my business, USAID-Feed the Future Tanzania Imarisha Sekta Binafsi connected me with crucial fertilizer quality control partners, the Tanzania Fertilizer Regulatory Authority and the Tanzania Agriculture Research Institute, who supported me in preparing fertilizer samples currently being tested at the Tanzania Bureau of Standards,” says Geoffery, “I now have a pro license to distribute organic fertilizer with expectations to receive a full license in 2024.” So far, through the support of USAID-Feed the Future Tanzania Imarisha Sekta Binafsi, 100 (females 40, males 60) youth enterprises now have TIN numbers, and 57 (females 49, males 8) have business licenses. Addressing informality among youth enterprises requires business development services that take into account their unique conditions. USAID-Feed the Future Tanzania Imarisha Sekta Binafsi supports youth entrepreneurs to utilize business development services that improve their business systems and give them the freedom to operate in formal markets.
After formalizing my business, USAID-Feed the Future Tanzania Imarisha Sekta Binafsi connected me with crucial fertilizer quality control partners. I now have a pro license to distribute organic fertilizer with expectations to receive a full license in 2024.
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Geoffrey Yohana Mbuna , youth entreprenuer from Mbeya
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