The Small Industries Development Organization Act

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CHAPTER 112
THE SMALL INDUSTRIES DEVELOPMENT
ORGANISATION ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
1. Short title.
2. Interpretation.
3. Establishment of Organisation.
4. Composition and proceedings of Board.
5. Functions of Organisation.
6. Powers of Board.
7. Director General.
8. Minister may give directions to Organisation.
9. Funds of Organisation.
10. Appointment of employees.
11. Remuneration and allowance of members.
12. Superannuation benefits.
13. Powers of Board to delegate.
14. Annual and supplementary budget.
15. Director General’s report.
16. Investment.
17. Power to borrow.
18. Accounts and audit.
19. Laying of accounts before National Assembly.
20. Power to make regulations.
SCHEDULE

16. Investment.
17. Power to borrow.
18. Accounts and audit.
19. Laying of accounts before National Assembly.
20. Power to make regulations.
SCHEDULE

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1. This Act may be cited as the Small Industries Development
Organisation Act. 2.

book may be reproduced or distributed without permission of OAG.528
1. This Act may be cited as the Small Industries Development
Organisation Act. 2.

In this Act, unless the context requires otherwise-
“appointing authority” means-
(a) in relation to the Chairman of the Board, the President;
(b) in the case of any other member of the Board, the
Minister;
“Board” means the Board of Directors of the Organisation;
“Chairman” means the Chairman of the Board;
“Director General” means the Director General of the
Organisation;
‘‘industry or enterprise” means any going concern by group
of persons, an individual or entity which trades in, or
produces goods or services for profit;
“medium industry or enterprise” means any industry or
enterprise employing between fifty and ninety nine
people or with capital investment from two hundred
million shillings to eight hundred million shillings;
“member” in relation to the Board, means a member of the
Board and includes the Chairman and Vice-Chairman;
“micro industry or enterprise” means any industry or
enterprise engaging up to four people or employing
capital amounting up to five million shillings;
“Minister” means the Minister responsible for industries;
Short title
Interpretation
Act No
12 of 2023 s.56
CHAPTER 112
THE SMALL INDUSTRIES DEVELOPMENT
ORGANISATION ACT
An Act to establish the Small Industries Development Organisation.

ct No
12 of 2023 s.56
CHAPTER 112
THE SMALL INDUSTRIES DEVELOPMENT
ORGANISATION ACT
An Act to establish the Small Industries Development Organisation.

[7th December, 1973]
Acts Nos. 28 of 1973
12 of 2023

[7th December, 1973]
Acts Nos. 28 of 1973
12 of 2023

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
“Organisation” means the Small Industries Development
Organisation established under section 3. “small industry or enterprise” means any industry or
enterprise engaging five to forty nine people or with
capital investment from five million shillings to two
hundred million shillings. 3.–(1) There is hereby established an Organisation to be known
as the Small Industries Development Organisation. (2) The Organisation shall be a body corporate and shall-
(a) have perpetual succession and a common seal;
(b) in its corporate name, be capable of suing and being
sued;
(c) subject to this Act, be capable of purchasing and
otherwise acquiring and of alienating any movable or
immovable property. 4.–(1) There shall be a Board which shall be responsible for
the performance of the functions and the management of the
affairs of the Organisation. (2) The provisions of the Schedule to this Act shall have
effect as to the constitution and the proceedings of the Board.

affairs of the Organisation. (2) The provisions of the Schedule to this Act shall have
effect as to the constitution and the proceedings of the Board.

(3) The Minister may, by order published in the Gazette,
amend, add to, vary or replace the Schedule to this Act. 5. The functions of the Organisation shall be-
(a) to promote the development of micro, small and
medium industries in Tanzania;
(b) to plan and co-ordinate the activities of micro, small
and medium industry enterprises;
(c) to carry out market research in goods manufactured by
micro, small and medium industries in Tanzania;
(d) to provide services necessary for or incidental to proper
development of micro, small and medium industries to
parastatal organisations and other persons engaged in
micro, small and medium industry enterprises;
Establishment of
Organisation
Composition and
proceedings of
Board
Functions of
Organisation
Act No
12 of 2023 s.57

l and medium industry enterprises;
Establishment of
Organisation
Composition and
proceedings of
Board
Functions of
Organisation
Act No
12 of 2023 s.57

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E.

. No part of this book may be reproduced or distributed without permission of OAG.530
THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E.

2023]
(e) to advise the Government on all matters relating to the
development of micro, small and medium industries in
Tanzania;
(f) to carry out research in the development of micro, small
and medium industries and marketing of their products
including the standard and quality of such products;
(g) to facilitate orderly and balanced development of
micro, small and medium industries in the regions;
(h) to provide technical assistance to persons engaged in
micro, small and medium industries;
(i) to provide and promote trainings and facilities for
persons engaged in or employed or to be employed in
micro, small and medium industries and to assist and
co-ordinate the activities of other institutions engaged
in such training;
(j) to provide management and consultancy services to
micro, small and medium industry enterprises;
(k) to co-ordinate and supervise business development
service providers for micro, small and medium
industries or enterprises;
(l) to lend or advance money to any person, company,
corporation, association, institution or group of
persons engaged in micro, small and medium industry
or enterprise;
(m) to undertake or assist any institution or person in the
undertaking of technological research and to encourage
and promote technological advancement in Tanzania; and
(n) to perform such other functions which the President
may, by order published in the Gazette, confer upon
the Organisation.

ncement in Tanzania; and
(n) to perform such other functions which the President
may, by order published in the Gazette, confer upon
the Organisation.

6.–(1) Subject to the provisions of this Act, the management
and control of the Organization shall vest in the Board of
Directors. (2) Without prejudice to the generality of subsection (1),
the Board of Directors shall have powers to-
Powers of Board
Act No
12 of 2023 s.58

ectors. (2) Without prejudice to the generality of subsection (1),
the Board of Directors shall have powers to-
Powers of Board
Act No
12 of 2023 s.58

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
(a) administer properties of the Organisation, both
movable and immovable;
(b) approve the annual financial budget and annual
financial statements of the Organisation;
(c) approve Organisation Strategic Plan, Policy Guidelines
and Procedures relating to aims and objectives of the
Organisation;
(d) review and supervise the performance of the Organisation;
(e) ensure the Act, regulations and rules made thereunder
are duly observed;
(f) constitute such committees as it may deem necessary
or expedient to assist the Board in the performance of
its functions;
(g) appoint officers of the Organisation which it may
consider necessary; and
(h) perform all other acts and things which may be
provided for in this Act or as may be necessary or
expedient for the proper discharge of the functions of
the Organisation.

ts and things which may be
provided for in this Act or as may be necessary or
expedient for the proper discharge of the functions of
the Organisation.

7.–(1) The President shall appoint upon the terms and
conditions which he may specify, a Director General of the
Organisation who shall be the Chief Executive Officer of the
Organisation and secretary to the Board. (2) The Director General shall be entitled to attend the
meetings of the Board and to participate in its deliberations
but shall not, save where he is also a member, be entitled to
vote on any resolution or other matter before the Board. 8. The Minister may give the Organisation directions of a
general or specific nature and the Organisation shall give effect
to every such direction. 9. The funds and resources of the Organisation shall consist of-
(a) any sums which may be provided for purposes of the
Organisation by parliament, either by way of grant or loan;
Director General
Act No
12 of 2023 s.59
Minister may
give directions to
Organisation
Funds of
Organisation

parliament, either by way of grant or loan;
Director General
Act No
12 of 2023 s.59
Minister may
give directions to
Organisation
Funds of
Organisation

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
(b) any sums which the Organisation may, borrow in
accordance with the provisions of this Act;
(c) any sums which may in any manner become payable
to or vested in the Organisation under the provisions
of this Act or incidental to the carrying out of its
functions. 10. The Board may appoint at salaries and upon terms and
conditions which it may think fit, any officers and employees
of the Organisation whom it may deem necessary for the
proper and efficient conduct of the business and activities of
the Organisation. 11. The members of the Board shall be entitled to receive
remunerations, allowances and other benefits which the
Minister may direct. 12.

rganisation. 11. The members of the Board shall be entitled to receive
remunerations, allowances and other benefits which the
Minister may direct. 12.

The Board may-
(a) grant gratuities or other retirement allowances
or benefits to the officers and employees of the
Organisation;
(b) establish and contribute to a superannuation fund or a
medical benefits fund for the officers and employees of
the Organisation;
(c) require any officer or employee of the Organisation
to contribute to any superannuation fund or medical
benefits fund and fix the amount and method of
payment of the contribution. 13.–(1) Subject to subsection (5), the Board may by writing
under the seal of the Organisation, delegate, subject to any
terms, conditions and restrictions which it may specify, to
any Committee of the Board or to any officer or employee of
the Organisation, or any other person or body of persons, all
or any of its functions, powers, authorities or duties under
this Act, and where any delegation is so made the delegated
Appointment of
employees
Remuneration
and allowance of
members
Superannuation
benefits
Powers of Board
to delegate

delegation is so made the delegated
Appointment of
employees
Remuneration
and allowance of
members
Superannuation
benefits
Powers of Board
to delegate

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
function, power, authority or duty may be performed or, as
the case may be, exercised by the delegate subject to the terms,
conditions and restrictions specified in writing. (2) Any delegation under subsection (1) may be made to
the holder of any office under the Organisation specifying the
office but without naming the holder, and in every case each
successive holder of the office in question and each person
who occupies or performs the duties of the office may, without
any further authority, perform or, as the case may be, exercise
the delegated function, power, authority or duty in accordance
with the delegation made. (3) The Board may revoke a delegation made by it under
this section. (4) A delegation made under this section shall not prevent
the Board from itself performing or exercising the function,
power, authority or duty delegated.

delegation made under this section shall not prevent
the Board from itself performing or exercising the function,
power, authority or duty delegated.

(5) The Board shall not have power under this section to
delegate-
(a) its power of delegation; or
(b) the power to approve annual budget or any
supplementary budget or receipts and expenditure, the
annual balance sheet or any statement of account. 14.–(1) In this Act, “financial year” means any period not
exceeding twelve consecutive months designated in that behalf
by the Board:
Provided that, the first financial year after the
commencement of this Act shall commence on the date of the
commencement of this Act and may be of a longer or shorter
period than twelve months. (2) Not less than two months before the beginning of any
financial year other than the first financial year the Board
shall, at its meeting especially convened for that purpose, pass
a detailed budget, in this Act called “the annual budget” of the
amounts respectively-
(a) expected to be received; and
(b) expected to be disbursed,
Annual and
supplementary
budget
Act. No. 12 of 2023 s. 60

of the
amounts respectively-
(a) expected to be received; and
(b) expected to be disbursed,
Annual and
supplementary
budget
Act. No. 12 of 2023 s. 60

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
by the Organisation during that financial year. (3) Where in any financial year the Board requires to make
any disbursement not provided for or of an amount in excess
of the amount provided for in the annual budget detailing the
disbursement. (4) The annual budget and every supplementary budget
shall be in the form and include the details which the Minister
may direct. (5) Forthwith, upon passing any annual budget or any
supplementary budget, the Board shall submit the same to the
Minister for his approval. (6) The Minister shall, upon receipt of the annual budget or
any supplementary budget, approve or disapprove the same or
may approve subject to any amendment which he may deem
fit.

eceipt of the annual budget or
any supplementary budget, approve or disapprove the same or
may approve subject to any amendment which he may deem
fit.

(7) Where the Minister has approved any annual budget
or supplementary budget, the budget, as amended by him,
shall be binding on the Board which, subject to the provisions
of subsection (8), shall confine the disbursements of the
Organisation within the items and the amounts contained in
the applicable estimates as approved by the Minister. (8) The Board may-
(a) with the sanction in writing of the Minister, make a
disbursement notwithstanding that the disbursement
is not provided for in any budget;
(b) adjust expenditure limits to take account of
circumstances not reasonably foreseeable at the time
the budget was prepared, subject to submitting a
supplementary budget to the Minister within two
months of the alteration of expenditure limits becoming
necessary. 15. The Director General shall, within sixty days of the end
of each financial year, prepare a report on the activities of the
Organisation during the year and submit the report to the
Chairman who shall forward the same to the Minister. Director General’s
report

vities of the
Organisation during the year and submit the report to the
Chairman who shall forward the same to the Minister. Director General’s
report

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
16. With the prior approval of the Minister, the Board may
invest any part of the moneys available in any fund of the
Organisation in the investments which are authorised
investments in relation to investment of funds by a trustee
under the Trustees Investments Act. 17.–(1) With the prior approval of the Minister, the Board
may borrow moneys for the purposes of the Organisation by
way of loan or overdraft, and upon any security, and any terms
and conditions relating to the repayment of the principal and
the payment of interest which, subject to any directions by the
Minister, the Board may deem fit. (2) A person lending money to the Organisation shall not
be bound to enquire whether the borrowing of that money by
the Board has been approved by the Minister.

on lending money to the Organisation shall not
be bound to enquire whether the borrowing of that money by
the Board has been approved by the Minister.

18.–(1) The Board shall cause to be provided and kept proper
books of accounts and records with respect to-
(a) the receipt and expenditure of moneys by, and other
financial transactions of the Organisation;
(b) the assets and liabilities of the Organisation,
and shall cause to be made out for every financial year a
balance sheet showing details of the income and expenditure
of the Organisation and all its assets and liabilities. (2) Within six months of the close of every financial year,
the accounts including the balance sheet of the Organisation in
respect of the financial year shall be audited by the Controller
and Auditor-General established under the Public Audit Act. (3) As soon as the accounts of the Organisation have been
audited, and in any case not later than six months after the close
of that financial year, the Board shall submit to the Minister a
copy of the audited statement of accounts together with a copy
of the report made by the auditors. (4) Every audited balance sheet shall be placed before a
meeting of the Board and where adopted by the Board shall be
endorsed with a certificate that it has been so adopted. Investment
Cap.

placed before a
meeting of the Board and where adopted by the Board shall be
endorsed with a certificate that it has been so adopted. Investment
Cap.

53
Power to borrow
Accounts and
audit
Cap. 418

53
Power to borrow
Accounts and
audit
Cap. 418

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
19. The Minister shall, as soon as practicable after he has
received the financial reports under section 18(3) and not later
than seven months after the close of a financial year or any
longer period which the National Assembly may, by resolution,
approve in that behalf, lay before the National Assembly the
following documents in relation to that financial year:
(a) a copy of the Organisation’s annual balance sheet;
(b) a copy of the auditor’s report, if any;
(c) a copy of the Director General’s annual report. 20.–(1) The Minister may make regulations for the better
carrying out of the provisions and purposes of this Act.

he Director General’s annual report. 20.–(1) The Minister may make regulations for the better
carrying out of the provisions and purposes of this Act.

(2) Without prejudice to the generality of subsection (1),
the regulations may provide for-
(a) recognition of private persons or institutions providing
business development services for micro, small and
medium industries or enterprises;
(b) manner and procedures for recognition, nurturing
and developing micro, small and medium industry or
enterprise;
(c) manner and procedures for trainings;
(d) matters in respect of which fees and other charges shall
be payable; and
(e) prescribing any other thing which under this Act is
required or permitted to be prescribed. SCHEDULE
(Made under section 4(2))
1. The Board shall consist of-
(a) a Chairman appointed by the President;
(b) not less than six and not more than ten other members
appointed by the Minister. 2. The members of the Board shall, from among their number, elect
a Vice-Chairman, who shall hold office for so long as he remains a
member of the Board. Laying of
accounts
before National
Assembly
Power to make
regulations
Act No
12 of 2023
s. 61
Constitution
Vice-Chairman

emains a
member of the Board. Laying of
accounts
before National
Assembly
Power to make
regulations
Act No
12 of 2023
s. 61
Constitution
Vice-Chairman

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
3.–(1) A member of the Board shall, unless his appointment is sooner
determined by the appointing authority, or he otherwise ceases to be a
member, hold office for the period which the appointing authority may
specify in his appointment:
Provided that, in the case of a member who is a member by virtue
of holding some other office, he shall cease to be a member upon his
ceasing to hold that office. (2) Any member of the Board may at any time resign by giving notice
in writing to the appointing authority and from the date specified in the
notice or, if no date is so specified, from the date of the receipt of the
notice by the appointing authority, he shall cease to be a member. 4. The Board shall appoint a suitable person to be the Secretary of the
Board. 5. Where a member is unable for any reason to attend a meeting, the
Board or the Minister, as the case may be, which he represents, may, in
writing, nominate another person in his place for the purpose of that
meeting. 6.

rd or the Minister, as the case may be, which he represents, may, in
writing, nominate another person in his place for the purpose of that
meeting. 6.

Where any member ceases to be a member for any reason before the
expiration of his term of office, the appointing authority shall appoint
another person in his place and the person so appointed shall hold
office for the remainder of the term of office of his predecessor. 7.–(1) An ordinary meeting of the Board shall be convened by the
Chairman and the notice specifying the place, date and time of the
meeting shall be sent to each member at his usual place of business or
residence not less than seven days before the date of the meeting. (2) In case the Chairman is unable to act by reason of illness, absence
from the United Republic or other sufficient cause, the Vice-Chairman
may convene that meeting. (3) The Chairman or in his absence, the Vice-Chairman, shall
be bound to convene a special meeting of the Board upon receipt of
request in writing in that behalf signed by not less than three members
of the Board and not less than seven days’ notice of the meeting shall
be given to all members of the Board in the manner prescribed in
subparagraph (1).

the Board and not less than seven days’ notice of the meeting shall
be given to all members of the Board in the manner prescribed in
subparagraph (1).

(4) The Chairman, the Vice-Chairman, or the temporary Chairman
elected in accordance with the provisions of paragraph 8 presiding at
any meeting of the Board may invite any person who is not a member
to participate in the deliberations of the Board, but that person shall not
be entitled to vote. 8.–(1) One-half of the total number of the members of the Board or
four members, whichever is the lesser number, shall form a quorum for
a meeting of the Board. Tenure of office
Secretary
Absent member
to be replaced at
meetings
Casual vacancies
Meetings
Quorum

, shall form a quorum for
a meeting of the Board. Tenure of office
Secretary
Absent member
to be replaced at
meetings
Casual vacancies
Meetings
Quorum

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THE SMALL INDUSTRIES DEVELOPMENT ORGANISATION ACT [CAP. 112 R.E. 2023]
(2) In the absence of the Chairman from a meeting of the Board, the
Vice-Chairman shall preside or in the absence of both the Chairman
and the Vice-Chairman from any meeting, the members present shall
elect one of their number to be a temporary Chairman of that meeting. (3) At any meeting of the Board a decision of the majority of the
members present and voting shall be deemed to be a decision of the
Board and in the event of an equality of votes, the Chairman of the
meeting shall have a casting vote in addition to his deliberative vote. (4) Notwithstanding the provisions of subparagraph (2), where the
Chairman so directs, a decision may be made by the Board without a
meeting by circulation of the relevant papers among all the members
and the expression in writing of their views, but any member shall be
entitled to require that any decision be deferred until the subject matter
is considered at a meeting of the Board. 9.

views, but any member shall be
entitled to require that any decision be deferred until the subject matter
is considered at a meeting of the Board. 9.

Minutes in proper form of each meetings of the Board shall be kept
and confirmed by the Board at the next meeting and signed by the
Chairman of the meeting. 10. Subject to the provisions of paragraph 8 relating to quorum, the
Board may act notwithstanding any vacancy in its membership and
an act or proceeding of the Board shall not be invalid by reason only
of some defect in the appointment of a person who purports to be its
member. 11. All orders, directions, notices or documents made or issued by the
Board shall be signed by-
(a) the Director General; or
(b) any member of the Board or other officer of the Organisation
authorised in writing by the Director General in that behalf. 12. The seal of the Board shall not be affixed to any instrument except
in the presence of the Director General or the Chairman or the Vice-
Chairman or the Secretary and at least one other member of the Board. 13. Subject to the provisions of this Schedule, the Board shall have
power to regulate its own proceedings. Minutes of
meetings
Vacancies, etc.,
not to invalidate
proceedings
Orders,
directions, etc. Seal of Board
Board may
regulate its own
proceedings