2007年-世界发展银行全球_Zanzibar_-_The_Effect_of_the_Investment_Climate_on_Performance_of_Micro_and_Small_Enterprise_in_Zanzibar___A_Comparison_with_Mainland_Tanzania_and_Other_Countries_98页_4mb

Summary of the Report: The Effect of the Investment Climate on Performance of Micro and Small Enterprise in Zanzibar

Core Content

This report examines the impact of the investment climate on the performance of micro and small enterprises (MSEs) in Zanzibar, comparing it with mainland Tanzania and other countries. It is based on data from the World Bank Enterprise Survey (WBES) conducted in 2003 and 2004, focusing on manufacturing firms. The report highlights the challenges faced by Zanzibar due to its small island economy status and evaluates its economic performance in relation to the mainland and other African countries.

Main Points

• Zanzibar's Economic Profile:

  • A small island economy near the Tanzanian mainland, with a population of around 1.07 million and an area of about 2,654 square kilometers.
  • The economy is heavily reliant on agriculture, particularly clove production and related products, which account for a large share of exports and employment.
  • Manufacturing contributes only about 5-6% of GDP and less than 5% of export earnings.
  • Zanzibar's Growth Strategy (2006–2015) emphasizes manufacturing as a key growth sector.

• Investment Climate and Firm Performance:

  • The investment climate in Zanzibar is relatively favorable in some areas, such as lower levels of corruption and tax administration.
  • However, firm performance, particularly in terms of productivity, remains low.
  • Labor Productivity:
    • The median firm in Zanzibar produces $1,000 of value-added per worker, compared to over $2,000 in mainland Tanzania.
    • This is also lower than in other Sub-Saharan African countries like Kenya and Senegal.
  • Capital Productivity:
    • The median MSE in Zanzibar has less than $300 of capital per worker, compared to about $1,400 in mainland Tanzania.
    • This is significantly lower than in countries like Kenya and Senegal.
  • Total Factor Productivity (TFP):
    • TFP in Zanzibar is lower than in mainland Tanzania and even lower than in most productive low-income countries in Sub-Saharan Africa.
    • Despite lower capital and labor intensity, MSEs in Zanzibar are less productive than those in mainland Tanzania and other African countries.

• Export and Import Behavior:

  • Only 3% of Zanzibar firms export outside Tanzania, compared to 29% in Dar es Salaam and 30% elsewhere in mainland Tanzania.
  • This suggests that the poor export performance is not solely due to the small size of the economy but is also influenced by other factors such as access to finance and worker skills.
  • Zanzibar firms are less likely to import raw materials from outside Tanzania (11% vs. 69% in mainland Tanzania).

• Workforce and Skills:

  • Worker skills are a major constraint for MSEs in Zanzibar.
  • About 43% of workers have only primary education or less, compared to 20% in Kenya and Uganda.
  • Despite this, firms in Zanzibar invest less in worker training than those in mainland Tanzania.
  • Formal training is associated with higher TFP, indicating that training could be a key factor in improving productivity.

• Access to Finance:

  • Access to credit is a significant challenge for MSEs in Zanzibar.
  • Firms in Zanzibar are less likely to have loans or overdraft facilities.
  • Firms without loans are less likely to express a desire for one in Zanzibar than in mainland Tanzania.
  • This suggests that access to finance is more problematic in Zanzibar than elsewhere in Tanzania.

• Comparative Analysis with Mainland Tanzania and Other Countries:

  • While Zanzibar's investment climate is somewhat better in areas like corruption and tax administration, it still faces significant challenges in terms of firm performance and competitiveness.
  • The report concludes that improving access to finance and enhancing worker skills could lead to increased productivity and, consequently, higher wages without sacrificing competitiveness.

Key Information

• Survey Details:

  • Conducted by the Economic and Social Research Foundation (ESRF) and the Regional Program on Enterprise Development (RPED) in collaboration with the National Bureau of Statistics (NBS).
  • 40 MSEs in Zanzibar were surveyed, with 21 in 2003 and 19 in 2004.
  • The sample was stratified by firm size and location, with a focus on MSEs.

• Mainland Tanzania Comparison:

  • Mainland Tanzania has a more diverse and competitive manufacturing sector.
  • It has a higher proportion of large firms and better access to finance and infrastructure.
  • Despite some favorable aspects of Zanzibar's investment climate, its overall performance is lower than mainland Tanzania and other low-income countries in Sub-Saharan Africa.

• Recommendations:

  • Improving access to finance and worker skills is crucial for enhancing firm performance.
  • Enhancing productivity could allow for wage increases without reducing competitiveness.
  • Diversification into manufacturing is a strategic goal for Zanzibar to reduce its vulnerability to terms of trade and other shocks.

Conclusion

Zanzibar's investment climate is relatively favorable in some areas, but its economic performance is constrained by low labor productivity, limited capital intensity, and poor access to finance. These factors are more pronounced than in mainland Tanzania and even in other low-income countries in Sub-Saharan Africa. Addressing these issues could lead to improved firm performance, higher wages, and greater economic resilience.