Creating innovative business ideas in view of the emerging market dynamics and changing political economy landscape is increasingly becoming inevitable to enhance local economic development and industrialisation agenda in Tanzania.  In his Key Note to the FYDP II, H.E President Magufuli stressed government’s commitment to ensuring efficient delivery of public goods and to searching for innovative solutions “outside the box” when it comes to addressing the obstacles to business, promoting investments and growth as well as ensuring development of the private sector.  The President further emphasised Government’s determination to continue improving the business environment; providing a wide range of appropriate incentives and support to unleash creativity of private sector and other stakeholders in harnessing Tanzania’s comparative advantages and thereby boosting productivity, enhancing innovation, and fostering economic integration and deepening participation in the regional and global value chains.

In line with the Government new thinking and positioning, UNDP Tanzania proposes a new initiative: “Harnessing Innovative Solutions for Local Economic Development (HAISOLED). This resonates with the prevailing political economy development context in Tanzania especially the need for innovative business solutions and harnessing the untapped potential to creatively unlock the opportunities to enhance successful businesses for local economic development. The HAISOLED initiative focus on Local Economic Development (LED) is motivated by the LED model approach to economic development which allows and encourages local people and communities to work together with and in partnership with other actors such as private sector to achieve environmentally sustainable and socially acceptable economic growth and development. The approach makes it possible to harness various potentials to deliver economic benefits and improved quality of life for all and spur national economic growths aspirations. The FYDP II LED framework calls for harnessing the fertile innovations ground to enhance entrepreneurship development  and generate sustainable income from the otherwise would be untapped, unutilized and underutilized vast human, natural and material resources to foster local content-based LED. Overall, the Tanzania second FYDP II puts emphasis on harnessing Tanzania’s comparative advantages and vast latent potentials to boost productivity in a number of sectors through enhancing innovation, fostering economic integration and deepening participation in the local economic development. These will spur national economic growth agenda such as industrialization agenda.