Tanzania Competitive Industries Workstream #2

Project Timing

March – August 2017

Sector

Economic Development

Location

Tanzania

Client

The World Bank

Partners

London School of Economics

Current Status

Complete

PROJECT OVERVIEW

The scope of this work is to understand the importance of management practices for medium to large manufacturing firms and to compare Tanzanian firms to firms around the world. The focus is to better understand the type of support required for firms to upscale production, improve quality, and in many cases, prepare to become exporters.

This project aims to tackle Tanzania’s challenges of:

  • low productivity and export capacity in the private sector, particularly among medium and large[1] sized firms;
  • fragmented and underdeveloped entrepreneurial ecosystems to encourage enterprises to enter, grow and expand their market reach.

The survey will identify issues relating to production, management, technology, and quality of manufacturing industries whilst reviewing the role of management in accounting for variations in firms’ productivity, profitability, and employment. The results from this survey will be used to provide some preliminary evidence on the cause of the difference in management practices in Tanzania.

Conducted by EDI, on behalf of a joint group from the London School of Economics and the World Bank Group, the survey involves tracking firms as well as an identified representative thereof, who will be interviewed. The representative will be a senior member of staff with sufficient knowledge of the firm but not so senior that they are out of touch with the day to day operations of the firm.  A minimum of 125 firms will be surveyed across Tanzania. The survey tool involves qualitative aspects, coded to give quantitative results, and a quantitative section. A short eligibility questionnaire is conducted over the telephone or in person whilst the main survey tool will only be conducted in person.

The firm level survey currently taking place is collecting data on the following outcomes:

  • Firm and respondent characteristics;
  • Management behaviour scores on a series of management practices;
  • Reward and bonus structures for management and non-management;
  • Management structure;
  • Ownership.

PROJECT UPDATE

A period of piloting, training and practice has taken place in the large city of Mwanza, Tanzania’s ‘second city’ in commercial terms located on the southern shore of Lake Victoria, and the region of Kagera. Training took place at EDI headquarters in Bukoba with support from the World Bank Group.  Interviewers were required to track down contact and location information; contact firms to determine eligibility of the firm and of the respondent within the firm; arrange a face-to-face interview with the correct respondent; and, finally, perform the interview. Unlike household interviews, the interviewers tasks were much more varied and the interview itself took a smaller proportion of their time. Locating and gaining consent from firms to take part is key to having a successful project.

So far, we have completed tracking for all firms in the Mwanza and Arusha regions, completing more interviews than predicted. Field teams are now moving to Dar es Salaam where the majority of Tanzania manufacturing firms are located[2]. Following Dar es Salaam, we will be working in the city of Tanga, Tanzania’s second largest port city, and the region of Kilimanjaro where there will be a high number of manufacturing firms.

[1] For the purposes of this study medium and large sized firms were defined as having number of employees between 50 and 5,000.

[2]National Bureau of Statistics (NBS) and the Ministry of Industry, Trade and Investment (MITI), 2016. The 2013 Census of Industrial Production: Analytical Report. Dar es Salaam, Tanzania. Available at: http://www.mit.go.tz/uploads/documents/sw/1477466299-2013%20Census%20of%20Industrial%20Production%20Summary%20Report.pdf

Competitive Industries and Innovation Program, Tanzania – Competitive Industries Project web page: https://www.theciip.org/content/tanzania