Publication: Zanzibar - The Effect of the Investment Climate on Performance of Micro and Small Enterprise in Zanzibar : A Comparison with Mainland Tanzania and Other Countries
Date
2007-10
ISSN
Published
2007-10
Author(s)
World Bank
Abstract
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.
Citation
“World Bank. 2007. Zanzibar - The Effect of the Investment Climate on Performance of Micro and Small Enterprise in Zanzibar : A Comparison with Mainland Tanzania and Other Countries. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/86177fb0-090e-5990-a407-39fa0493f85b License: CC BY 3.0 IGO.”