Zanzibar - The Effect of the Investment Climate on Performance of Micro and Small Enterprise in Zanzibar : A Comparison with Mainland Tanzania and Other Countries

World Bank

Washington, DC

关键词: ACCESS TO CREDIT;    ACCESS TO FINANCE;    ACCESS TO FINANCING;    ACCOUNTING;    ADVISORY SERVICE;   

RP-ID  :  42296

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This study looks at firm performance andthe investment climate in Zanzibar. The main source ofinformation is a 2003-2004 survey of manufacturingenterprises. The report is complementary to an earlierreport looking at the investment climate in the whole of theUnited Republic of Tanzania, including Zanzibar (RegionalProgram on Enterprise Development, 2004). To avoidredundancy with the earlier report, this report focuses onareas where the investment climate is different in Zanzibarfrom mainland Tanzania. Zanzibar is a small island economyfound close to the Tanzanian mainland. Like other smallisland economies, limited diversification and a smalldomestic market make Zanzibar vulnerable to terms of tradeand other shocks. Diversifying into manufacturing a goalthat is consistent with Zanzibar's Growth Strategy(2006-2015) would reduce this vulnerability. This reportlooks at existing manufacturing firms in Zanzibar to see howtheir performance compares with similar firms in other partsof Tanzania, other countries in Africa, and other smallisland economies. It also compares the investment climate inZanzibar with the investment climate on the mainland and inother nearby countries. Although the investment climate inZanzibar is more favorable in many areas than it is on themainland, firms remained more concerned about several areas.Consistent with the evidence on worker skills and capitalintensity, firms were more likely to say that access tofinance and workers skills and education were seriousproblems than firms on the mainland were. Objective data areconsistent with this-fewer firms had loans, firms reportedhaving less capital and workers and managers were lesslikely to be university educated in Zanzibar. Improvingeducation and taking steps to attract skilled workers fromthe mainland and elsewhere -- and improving access tofinance, therefore, should be a priority.