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Tanzania - The effect of the investment climate on performance of micro and small enterprise in Zanzibar : a comparison with mainland Tanzania and other countries (Inglês)

This study looks at firm performance and the investment climate in Zanzibar. The main source of information is a 2003-2004 survey of manufacturing enterprises. The report is complementary to an earlier report looking at the investment climate in the whole of the United Republic of Tanzania, including Zanzibar (Regional Program on Enterprise Development, 2004). To avoid redundancy with the earlier report, this report focuses on areas where the investment climate is different in Zanzibar from mainland Tanzania. Zanzibar is a small island economy found close to the Tanzanian mainland. Like other small island economies, limited diversification and a small domestic market make Zanzibar vulnerable to terms of trade and other shocks. Diversifying into manufacturing a goal that is consistent with Zanzibar's Growth Strategy (2006-2015) would reduce this vulnerability. This report looks at existing manufacturing firms in Zanzibar to see how their performance compares with similar firms in other parts of Tanzania, other countries in Africa, and other small island economies. It also compares the investment climate in Zanzibar with the investment climate on the mainland and in other nearby countries. Although the investment climate in Zanzibar is more favorable in many areas than it is on the mainland, firms remained more concerned about several areas. Consistent with the evidence on worker skills and capital intensity, firms were more likely to say that access to finance and workers skills and education were serious problems than firms on the mainland were. Objective data are consistent with this-fewer firms had loans, firms reported having less capital and workers and managers were less likely to be university educated in Zanzibar. Improving education and taking steps to attract skilled workers from the mainland and elsewhere -- and improving access to finance, therefore, should be a priority.

Detalhes

  • Data do documento

    2007/10/01

  • TIpo de documento

    Avaliação do Clima de Investimento (ICA)

  • No. do relatório

    42296

  • Nº do volume

    1

  • Total Volume(s)

    1

  • País

    Tanzânia,

  • Região

    África,

  • Data de divulgação

    2008/03/25

  • Disclosure Status

    Disclosed

  • Nome do documento

    Tanzania - The effect of the investment climate on performance of micro and small enterprise in Zanzibar : a comparison with mainland Tanzania and other countries

  • Palavras-chave

    Micro and Small Enterprises;small island economies;labor productivity;finance and economic;food and beverage sector;infant and child mortality;capital per worker;total factor productivity;small economy;machinery and equipment;access to finance;unit labor costs;formal training program;net book value;wages and salary;child mortality rate;school enrollment rate;international supply chain;conferences and seminars;investment climate assessment;financial sector performance;cross country comparison;labor intensive production;skills and education;scale in production;investment climate constraint;capital productivity;small country;imported inputs;firm performance;Learning and Innovation Credit;transportation cost;international market;firm size;capacity utilization;manufacturing sector;Tax Administration;island economy;raw material;customs regulation;early assessment;net impact;large enterprise;capital intensity;export earnings;quantitative evidence;firm productivity;education outcome;foreign investor;temporary worker;local market;manufacturing enterprise;scale economy;low-income economy;import good;cross-country comparison;government contract;previous subsection;public good;Public Goods;small states;labor use;foreign competitor;macroeconomic instability;Exchange Rates;foreign exchange;economic sector;global economy;capital stock;management style;survey period;management efficiency;demand shock;estimation method;basic requirement;frontier estimation;energy cost;cross-country correlation;domestic good;maximum amount;primary commodity;Vocational Training;tertiary level;capital use;company account;audited account;domestic competitor;trade regulation;private good;firm competitiveness;external shock;social cohesion;organizational structure;intermediate input;market power;remote location;empirical evidence;air route;heavily dependent;freight cost;domestic economy;domestic producer;empirical result;domestic substitutes;high transportation;transportation problem;global tourism;macroeconomic performance;survey questionnaire;enterprise behavior;economic shock;Natural Resources;trade shock;employee account;indirect export;port facility;land border;export capacity;government source;domestic sale;clothing sector;Public Services;export performance;life expectancy;Population Growth;local good;public health;aircraft industry;motor car;private production;export market;university-level education;substandard infrastructure;garment industry;political stability;construction material;tax rate;quantitative information;informal training;Wage Bill;geographic area;survey implementation;overdraft facility;worker training;skill base;regulatory quality;regulatory burden;natural disaster;firm survey;government service;smaller share;bulk cargo;sugar factory;statistical appendix;agricultural crisis;global business;informal network;fiscal incentive;institutional framework;airline company;freight carrier;small shipments;export good;Tax Holiday;political decision;duty drawback;market strategy;manufacturing export;infrastructure service;inadequate provision;foreign multinational;local entrepreneur;

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