Effective Utilizations of Performance Appraisal - University of Dar es

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FACTORS THAT INHIBIT EFFECTIVE UTILISATION OF PERFORMANCEAPPRAISAL:

The Case of Selected Local NGOs Based in Dar es Salaam

Anna Onesmo Mrema

Master of Business Administration (Human Resources Management), October 2007

This research was conducted in partial fulfilment for the requirements of Masters of Business Administration.The research was about Factors that inhibit the effective utilization of performance appraisal: The CaseStudy of Selected NGOs Based in Dar es Salaam. This was an attempt to find out the performanceappraisal practice in LNGOs, and challenges that they are facing in administering formal performanceappraisal to their employees and recommend best approaches to overcome such challenges.

The researcher employed descriptive design with clear and specific narration of facts with an overviewof the LNGOs working context in Tanzania.

The research discovered that, LNGOs use traditional secretive approach to Performance Appraisal(PA) and that; there is no formal PA programme in most of LNGOs. These practices and approaches areoutdated and highly discouraged by most human resources professionals, LNGOs staff and otherstakeholders. The researcher noted that formal and open PA practices are the most appropriate andmostly desired by LNGOs staff.

The researcher recommended that LNGOs, the donor community and the government have an importantrole to play to collectively promote effective utilization of performance appraisal in LNGOs. This is possibleby making PA programme a mandatory undertaking to be reported on a yearly basis the same as financialand development programme activities report

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THE IMPACT OF DONOR FUNDS INFLOWS ON MONEY SUPPLY IN TANZANIA

George Bantula Salvatory Kaindoah

Master of Business Administration (Finance), November 2007

The objective of this study was to investigate the impact of donor funds inflows on money supply andpolicy response. More specifically, the study intended to examine the effect of donor funds inflows onmoney supply and inflation, and determining the degree of significance of the donor funds inflows on thereserve money. The effect of donor funds inflows on real gross product was also investigated. Correlationcoefficients and regression results were used during the discussion in this study. While the relationshipbetween donor funds inflows and money supply was strongly proved to be positive and significant at onepercent level, the relationship between donor funds inflows and inflation was proved to be negative and

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significant at five percent level. Therefore, the hypothesis that there is positive relationship between donorfunds inflows and inflation was strongly rejected. Hence an increase in donor funds inflows in Tanzania didnot cause an increase in the rate of inflation.

The relationship between RGDP and donor funds inflows was strongly proved to be positive andsignificant at one percent level. Therefore the hypothesis that donor funds inflows have a positive effect onTanzania economy was not rejected at all. The study suggests that if the economy is faced with large donorfunds inflows and the cost of sterilization seems to outweigh the bank’s income, and then policy responsehas to be extended to deploy some of the options below depending on their enforcement costs.

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THE IMPACT OF MANAGEMENT PRACTICES ON SERVICE QUALITY ASPERCEIVED BY CUSTOMERS

The Case of Tanzania Telecommunication Company Limited (TTCL)

Hidaya Hamis

Master of Business Administration (Marketing), November 2007

This study examines some aspects of management practices that can impact service quality perceptions.The major research question was whether the results could help to explain the general level of servicequality as perceived by customers in the context of Tanzania Telecommunications Company Limited (TTCL).

A study of fifty customers and fifty employees in five TTCL regional offices was used to analyze theeffects on service quality of some management practices. The selected management practices include:managers’ risk aversion; centralization; and market based reward system.

The analysis was made using simple and multiple linear regression analysis and two basic findingsemerged. First, interdepartmental conflict and interdepartmental connectedness appear to influence thelevel of service quality.

Second, the results appear to suggest that interdepartmental conflict and interdepartmental connectednesscan be improved by a host of actions, including a management style that exhibits less risk aversion, greaterempowerment of employees and the development of a market-based reward structure to create commonincentives.

Generally, in order to improve service quality, organizations must work to reduce conflict and increaseconnectedness among departmental groupings. Specific managerial implications and direction for furtherresearch have been discussed.

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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONPERFORMANCE

The Case of Vodacom Limited, Tanzania Breweries Limited and Barrick Gold MiningCompany

Mgema Masunga

Master of Business Administration (Human Resources Management), November 2007

In Tanzania, in the post 1990 period after the introduction of the market economy, private sectors wereallowed to engage fully in business activities. That resulted into increased competition among different firmsproducing and selling products with similar use such a pattern forced firms to design different marketingstrategies aimed at penetrating different market segments, and increase their production, sales as well asprofits.

This study investigated the impact of firms’ corporate social responsibilities on organization performancein Tanzania in the post 1990 period. A sample of three firms, namely, Vodacom Tanzania Limited, TanzaniaBreweries Limited and Barrick Gold Mining Company Ltd were used as representatives. Overall findingsrevealed that increasing firms’ corporate social responsibilities and others have helped to advertise as wellas market products. Hence, have increased sales and profits amidst stiff competitions, though their socialresponsibilities have been limited mainly to urban areas.

It is recommended that measures be undertaken by all stakeholders in order to enable more people inremote rural areas also to benefit from their activities. The Government should increase tax incentives onproducts offered by these companies as part of their packages of corporate social responsibilities. Measuresshould be undertaken to increase employment and disposable incomes for households in order to increasehouseholds’ purchasing power. Lastly, there should be formation of one independent NGO body, whichwill supervise and coordinate the activities for organizations engaged in corporate social responsibilities.

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DEVELOPMENT AND CHALLENGES OF DERIVATIVE MARKETS IN TANZANIA

The Case of Derivatives in Commercial Banks

Mbajo Pius Mchomvu


The aim of this study was to get insight of development and challenges of derivatives market in Tanzania.The study used primary data whereby sixteen commercial banks were interviewed using Questionnaires.


The study revealed that it is right time to exercise derivatives in Tanzania and common derivatives used inTanzania are; foreign exchange swap, forwards, options, interest swaps, futures and forward rate agreement.The main participants of derivatives are commercial banks and big corporate customers. The study alsorevealed that the regulatory body hasn’t yet put enough effort to promote the derivative markets in Tanzania.

It is recommended that the Tanzania Financial market will not develop fully if banks and big corporatecompanies are not taking active part in the modern financial products like these. If banks utilize derivativesfully, then, it would help even to stabilize our Tanzanian Shillings against major currencies. It is alsorecommended that proper skills are required and the Central Bank should play the active role to engineerthe whole exercise of derivative market development in Tanzania

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MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) ACCESS TOCOMMERCIAL BANKS FINANCE IN TANZANIA

The Case of Dar Es Salaam based MSMEs and Commercial Banks

Narcis Daudi

Master of Business Administration (Finance), October 2006

The main objective of this study was to assess Micro, Small and Medium Enterprises (MSMEs) accessesto financial services in Tanzania, with special focus on Commercial Banks (CB). The study was conductedfor Dar es Salaam based Commercial banks and MSMEs as a sample group through use of questionnaires,Observation and interviews. 43 participants were involved.

Specifically, the study sought to Firstly, “Assess the extent of Commercial banks loans are madeavailable to MSMEs in Tanzania”. Secondary, “Establish the cost/price at which commercial banks’ financeis accessible by MSMEs”. Thirdly, “Find out the range of finance that can be accessed by MSMEs”.Fourth, “Examine flexibility on accessing commercial banks finance by MSMEs”. Fifthly “Assess theimpact of limited access to these credits on MSMEs performance” and lastly to put forwardrecommendations for adoption by both parties in the study.

It was found that, about 70% of the bank’s users are aware of the availability of commercial banksloans but the problem is education and awareness by MSMEs owners. This implies that, small businessowners should make extra steps in learning what are the necessary requirements and the cost involved. Onthe other hand, the government should improve the current policies to incorporate the newly ones focusingspecifically on access to Commercial Banks funds that is deregulation. Also assist on introducing moreschemes and training centers for the development of the sector and economic improvement.

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FACTORS AFFECTING PERFORMANCE OF SMALL LOCAL ENGINEERINGCONSULTING FIRMS IN TANZANIA

Phillip Makota


The research sought to establish factors affecting performance of small local engineering consulting firms inTanzania. In so doing, engineers were asked whether they find guidelines for evaluation of technical proposalsaffects small firms during tendering for various projects in the country, whether small firms have equalchances to meet threshold (benchmarks) as is the case to large local or foreign firms. The research alsolooked at among other things whether firms association may assist small firms in future projects, establishingwhether engineers perceive there is a need to classify engineering consulting firms. Lastly, the researchought to establish what engineers perceive as main obstacles to the development of engineering consultingfirms in Tanzania.

The research was able to establish that engineers perceive that qualifications and experience as well asquality of proposed staff are among major obstacles to small firms when their technical proposals areevaluated. Engineers find that small local firms have narrow chances to meet threshold when competing forvarious projects. That being the case, they do agree that there is a need to classify engineering consultingfirms. Engineers do agree that when small firms associate with large local or foreign firms their capacityincreases due to knowledge transfer from large to small firms. Generally, the research was able to achievethe intended goal; henceforth it is highly emphasised that individual registered engineers, IET, ERB, ACETand others to join hands in developing solutions to address problems mentioned in this research.

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CONTRIBUTION OF MICRO CREDIT TO POVERTY REDUCTION IN THE RURALSOCIETY OF TANZANIA

The Case of Mbinga Community Bank

Sayuni Mbwilo


Establishment of microfinance institutions for the purpose of mobilizing savings and disbursing micro creditto the poor in developing countries has been among the strategies to alleviate poverty. This study is intendedto find out whether community banks in Tanzania contribute to the growth of income, improving wellbeingand reducing capability poverty of the small scale farmers.In collecting the primary data, questionnaire was administered to 94 randomly selected households of fivevillages of Mbinga district namely; Mkwaya, Kindimba, Mbangamao, Tukuzi and Ngima. Data analysiswas done by SPSS software. Cross tabulation, one way and multiple comparisons ANOVA tests werealso done.

The empirical evidence of the study indicates that micro credit changed the life of the poor in a positiveway. Clients who borrowed at least once from MCB have relatively higher income, investment in productive


assets, accessibility to education and food sufficiency. Frequency of borrowing have been found to influencethe impact of the loan to poverty reduction because those clients who borrowed more frequently werefound to be more well off than the new and the prospective borrowers.

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FACTORS INFLUENCING CUSTOMER SATISFACTION WITH INSURANCECOMPANIES

A Case of Tanzania

Lucas Mimbi

Master of Business Administration (Marketing), October 2007

The objective of the study was to investigate the factors influencing customer satisfaction with insurancecompanies. Professional services are credence products with very few tangible cues to signal quality. Indeveloping a tool for the insurance context, the 21 attributes of service quality were operationalised generatingfive dimensions which were identified as Assurance, Tangibles, Reliability, Responsiveness and Empathy.A cross-section of 121 customers of insurance policies from different companies in Tanzania provideddata on the way they rated their Insurance Companies in respect to the features and services they offer.Using these ratings, customer satisfaction levels were calculated.

This study found that Assurance and Reliability dimensions have a significant influence on customersatisfaction with insurance companies, suggesting that these two dimensions were regarded by policyholdersas the most crucial towards meeting customer satisfaction. Managers should look into the two dimensionsvery closely as they are important to customers. Improvement of service quality should be in this orderReliability, Assurance, Responsiveness, Empathy, Tangibles.

Growing evidence that customer satisfaction drives organizations’ economic health means that managerscan no longer afford to ignore customers’ feedback. Rather, organization-specific examination of dimensionsis vital and useful so that managers are able to assess and determine the precise level of both customersatisfaction and its influencing factors. The proposed exploratory instrument used here to measure customersatisfaction with the insurance industry could serve as a starting point for other studies in the professionalservices domain.

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THE EFFECTIVENESS OF AGENCY FORCE IN FINANCIAL INSTITUTIONS

The Case of National Insurance Corporation of (T) Limited (NIC)

Vivian Jonathan Mmari


This study investigated the effectiveness of agency force in financial institutions with specific reference tothe National Insurance Corporation of Tanzania Limited (NIC). Over the years the NIC has been using

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substantial amount of money and other resources on its agency force. Until now no research has beendone to ascertain the effectiveness of the agency force. To achieve the objectives and questions raised inthe research the study gathered a variety of data in the above mentioned aspects of agency forceeffectiveness. Data was collected through interview, observations, questionnaires, NIC documents review,and news papers. Likewise literature review and empirical research work were visited in order to establishconcepts and theories pertaining to the study. The findings show that the agency force contribution to NICoverall performance is not effective especially under the liberalized market. Following the Insurance Act of1996, now there are 16 private insurance companies conducting insurance business in Tanzania. Factorsthat contributed to that situation are related to; NIC weakness, agency force and the existing regulatorymechanism. Thus the corporation is recommended to change its current organization structure, officelayout, and system of recruiting and controlling agents, computerize business operations and adequatelysupport its agents and more to finalize the privatization process.

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DETERMINANT FACTORS OF LOW COVERAGE OF SOCIAL SECURITY SCHEMESIN TANZANIA

Assumpta Maina


Socio-economic risks and uncertainties in human life result in the need for social security. Social securityschemes are the most common formal security schemes. In Tanzania, there are six major social securityinstitutions; five are in Tanzania mainland and one in Zanzibar. Those operating in Tanzania mainland are theParastatal Pensions Fund (PPF), National Social Security Fund (NSSF), the Public Service Pension Fund(PSPF), Local Authorities Provident Fund (LAPF) and Government Employees Provident Fund (GEPF).Despite the existence of the five pension institutions in Tanzania mainland and existence of the socialsecurity framework; the level of coverage is still very low, hence the general objective of this research wasto determine factors leading to low level of coverage to social security in Tanzania.

A total of 131 questionnaire responses were obtained out of which 91 were from employees and 20from institutions. Secondary data was obtained from various libraries including PPF data base. Data wasanalyzed focusing on the above mentioned objective while trying to answer the accompanying specificquestions.

The following five factors came out clearly as strongly hindering the social security scheme coverage:The reduced purchasing power of benefits offered; Workers un-willingness to contribute to social securityschemes due to paucity of their incomes; Lack of knowledge of the types of benefits offered by socialsecurity schemes; Members delays in receiving benefits when due and failure by security benefits to meetmembers’ immediate priority needs.

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FACTORS HINDERING THE EFFECTIVENESS OF STAFF TRAINING

The Case of Tanzania Postal Bank (TPB)

Gabriel Mwajombe

Master of Business Administration, November 2007

This study was conducted to investigate the factors hindering the effectiveness of staff training. The studybased on the case study approach that focused on the Tanzania Postal Bank. A Stratified technique wasused to select respondents from both management and non-management levels. 51 respondents weresampled and administered with questionnaires. Personal interviews were conducted with the human resourcesofficer. Data were analyzed using SPSS and were presented in tabular form, relative frequencies, chartsand figures.

The factors behind the ineffective staff training were; lack of autonomous training unit that coordinatestraining in the bank, insufficient budget allocated for training function, poor involvement of employeesparticularly in the TNA process, the criteria for trainees’ selection are not clearly known, and are not givena chance to determine what kind of training they actually need, the training center is poorly financed andmanaged together with the poor methods used for training( classroom based), lack of competent humanresources practitioners and poor top management support. All these have an adverse effect in staff training.The study recommends improving the approach used to carry out training programs and promotingtransparency in the whole process of training. The bank should accrue more funds for staff training, train allmanagers and supervisors through the TNA process. Further the bank should form an autonomous unitdealing with staff training and development function.

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FACTORS INFLUENCING SMALL AND MEDIUM ENTERPRISES DEVELOPMENT INTANZANIA

An Exploratory Study of Entrepreneur and Enterprise Characteristics

Sarah Isaac Ngomuo


This study sought to explore the influence of characteristics of both the entrepreneur and the enterprise onfirm performance in Tanzania. Variables covered in the study are age of the entrepreneur, education level,ethnicity, cultural heritage, previous experience, gender, five motivation variables, firm’s age, firm’s industrialsector, firm’s legal status and number of employees. The study combined quantitative and qualitative methodsof enquiry, comprising questionnaires, interviews and observations. Descriptive analysis was used to identifythe characteristics of the study population .The chi-square test was used to identify the significant associationof variables which influence firm performance.

The results reveal that SME performance is influenced by entrepreneur characteristics namely; age,level of education; ethnicity, previous experience and three motivational variables, namely desire to be

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independent, finance and self-fulfillment. The following entrepreneur characteristics, such as familybackground in business, gender and two motivational variables (job satisfaction and contribution to economicdevelopment) did not show any influence on firm performance. Enterprise characteristics observed toinfluence firm performance include age, legal status and size. However, firm’s industrial sector was notobserved to have an influence on the performance of the firm.

Furthermore, the study revealed that in Tanzania, SMEs continue to operate in a chaotic environment,where policies are inconsistent and regulatory procedures are stringent. Inadequate access to finance andtraining were also perceived as being a great hindrance to their performance.

The study recommended that regulatory institutions need to create for SMEs a friendlier environment;the policy environment should be made more favourable to SMEs; and Enterprise-Based Training. Moreover,financial institutions should review their loan scheme so as to enable SMEs to have ready access to capital.

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AN ASSESSMENT OF MICROCREDIT PERFORMANCE ON POVERTY REDUCTIONIN TANZANIA

The Case of Posta na Simu SACCOS and PRIDE -Tanzania

Victor Reginald Sungusia


The overall objective of this study was to assess the impact of micro credit on poverty reduction in Tanzania.The study investigated two Microfinance Institutions in Tanzania, PRIDE and Posta na Simu SACCOSwhere 100 customers from both PRIDE and Posta na Simu SACCOS were interviewed. At the same time10 respondents credit providers were interviewed. To tackle the research objective the study employedfour research propositions: poor people access credit easily from microcredit institutions; conditions andprocedures set favours poor people; mmicro-credit finance contributed to an increase in income to creditreceivers and micro-credit finance contributed to an increase in employment opportunities

Findings show that Microfinance Institutions lack policy and regulatory environment, have insufficientaccess to information and weak human and institutional capacity. Therefore, as a result of these impedimentsaccess to microcredit remains limited to poor population in Tanzania. It was observed that conditions andprocedures set do not favour the poor and low-income earner clients. Therefore, the proposition that poorpeople do access credit easily was not supported by the results from this study. The results from the studyindicate that both income and employment opportunities increased significantly after started borrowingfrom microfinance institutions. Therefore, the results from this study indicate that micro credit institutionshave created more employment opportunities.

It was recommended that Tanzania needs to intensify its efforts in encouraging entrepreneurship formulationthrough credit strategy. In order to improve credit growth through Microfinance Institutions, Tanzaniashould initiate market opportunities for product/services through promoting business activities, moreoverefforts are needed to simplify the procedures to start and run business through credit facilities. Creation ofawareness is another area needs to be put into consideration, because most people are not aware of theavailability of credit facilities.

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PERFORMANCE IN TANZANIA

A Study of Selected Enterprises

Salhina Mussa Mkumba


This study assesses the effectiveness of privatization on enterprise performance in Tanzania by consideringthe effect of private ownership on enterprise sales revenue, Profit Before Interest and Taxes (PBIT), andproduction volume, which are variables used in this study. The study has been carried out as a result ofcontradicting view points of various people on the subject of privatization in Tanzania. Some people are ofthe opinion that privatization has been successful in improving performance of enterprises while othersmaintain that there is no neutral evidence to the effect.

The study uses a sample of 16 privatized enterprises. It was conducted by reviewing information onperformance of firms before they were privatized. This information was mostly retrieved from the PSRCarchives. The pre – privatization information is processed to come up with an average for each variablewhich is compared with the average processed from the post privatization data. Post privatization informationwas obtained by circulation of questionnaires to the privatized enterprises and review of secondarydocuments. The averages for both pre and post privatization periods were subjected to the sign test andhypotheses are tested.

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FACTORS INFLUENCING PURCHASING COST IN PROCUREMENT SYSTEM

The Case of Public Institutions in Tanzania

Jackson Anyisile Mwampanga Mwaigonela


Most of public procurement system is characterized by frequently emergency orders, poor documentationof records, poor purchasing procedures, lack of consolidated purchase and lack of effective communicationbetween the management and procurement sections in government institutions. The main objective of thisstudy was to determine factors influencing purchasing in procurement system. The cross sectional studysurvey was conducted in Dar es Salaam region and involved different procurement officers from governmentinstitutions. Primary and secondary data were obtained through structured questionnaires and differentpublications. The study was designed to use multiple regression model to establish the relationship amongthe variables, whereby there are more than two independent variables. Independent variables were obtainedby using simple model developed by researcher. The purpose of developing this model was to obtain theweighted average of independent variables since each independent variable has its own weight and havedifferent ranks according to the perceptions and opinions of those who filled the questionnaires.

Findings show that there is a relationship between the costs associated with lack of effectivecommunication and purchasing cost. Similarly the study found direct relationship between costs associated

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with poor documentation and purchasing cost. Costs associated with lack of consolidated purchase havealso direct relationship with purchasing cost. Furthermore, purchasing costs is also directly related to costsassociated with emergency or rush orders. Lastly, costs associated with poor purchasing procedures havedirect relationship with purchasing cost. Based on the findings, the study recommends that the governmentshould continue with the efforts to enforce procurement laws and train all government staffs to avoidinterference among government staffs. The governments should also implement and train procurementstaffs on procurement planning in order to reduce rush orders and frequency purchase. There is a needalso for the government to enforce proper communication between user departments and procurementdepartment in government institutions.

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FACTORS AFFECTING BANK CREDIT MANAGEMENT

The Case of NBC Limited

Micah Elifuraha Mrindoko

Masters of Business Administration (Finance), November 2007

This study aimed at reviewing the general credit management systems in financial institutions to find outthose factors that have significant influence on credit management effectiveness among the financial institutionsin the country so that credit risk can be mitigated.

In order to achieve the intended objective, three research questions and two hypotheses were raisedand tested to guide the study. In this study primary data was collected from NBC Ltd members of staffthrough a semi structured questionnaire using a number of attitude scales.

It can also be concluded from the findings made that character, collateral and circumstance are effectivetools in assessing customers’ creditworthiness. This implies that, good character, supported with collateraland favorable circumstance are the haven for adherence to credit obligations by borrowers.

Collateral and character differ significantly in terms of their effectiveness in credit risk mitigation. This isbecause collateral is something measurable and its stability in value can be ascertained while character issomething invisible and strongly out of control of the lender.

This study recommends to all the stakeholders in lending business to consider all the six tools in thecourse of assessing customers’ creditworthiness, the six C’s of Credit.

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EFFECTIVENESS OF ADMINISTRATIVE REFORMS ON TAX ADMINISTRATIONPERFORMANCE IN TANZANIA

Kapaya S. Kisesa


This research aims at exploring the Impact of Administrative Reform initiatives at improving TaxAdministration effectiveness in Tanzania through tax modernization projects.


To realize this objective, perceptions of the Authority employees on their level of commitment, skillsand competence, strategies as well as availability of the necessary infrastructures, resources and conduciveoperating environment were used in making the general assessment of success and sustainability ofimplementation of tax administration reforms in the country.

A perception survey was conducted at TRA officers in Dar es Salaam and Coast Regional using semistructured questionnaires and a few interviews with the Authority senior officials. The study made analysisof the data using the Statistical Package for Social Sciences (SPSS) guided by simple hypothesis testsusing Chi-Square model. The study findings indicated that administrative reforms did indeed enhanced taxadministration efficiency and effectiveness.

Nevertheless, the study identified the need to explore the full potential of Information and CommunicationTechnology and Staff Training and Development projects. Other impeding factors identified were theavailability of resources at the implementation level and poor organizational responsiveness to emergingchallenges and/ or opportunities during implementation.

Several recommendations were proposed based on the research findings and other acceptable literatureson how to optimize achieved successes. Further researches were also recommended on issues whoseeffects and outcome could not be ascertained by this study.

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ANALYSIS OF FACTORS INFLUENCING HOTEL OCCUPANCY IN DAR ES SALAAM

Tenford W. L. Phiri


Hotels are part of the Tourism Industry, which also includes the travel and transportation sectors. Thehotel industry comprises hotels, motels, lodges, restaurants, cottages and guest houses. These togetherare members of the hospitality industry which is part of the service industry.

Following the liberalization of the economy in the 1990s, the country has seen growth in the hotelindustry. This growth in this sector brought about stiff competition. Hence hotels started experiencinghotel occupancy problems.

The main objective of this research was to investigate factors that influence hotel occupancy in Dar esSalaam. The research methodology employed in this study was descriptive study. The study involved bothqualitative and quantitative approach, and it was based on a cross sectional study, where a survey wasconducted and customers in selected hotels were asked to provide information in order to generate answersto the research study. Three hypotheses were tested. The results revealed that services quality, price andlocation had significant influence on hotel occupancy.

It was recommended that in order for all hotels to achieve good occupancies, should provide goodquality services, improve on their marketing strategies and be more aggressive and finally should ensurethat all hotel staff are well trained.

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THE USE OF ACCOUNTING INFORMATION IN DECISION MAKING OF SMALL ANDMEDIUM ENTERPRISES (SMEs)

The Case of Dar es Salaam Region

Anale John


The focus of this study was to explore and examine the use of accounting information in decision making ofSmall and Medium Enterprises (SMEs), the Case of Dar es Salaam Region in Tanzania.

The objectives of the study were to find out and to identify the different kinds of accounting records andthe extent to which these records were used in generating accounting information, finding out whetheraccounting information were used in the various decisions made by SMEs. Additionally, the study exploredthe extent to which SMEs used accountants as a source of expert advice.

The study used a number of data collection methods including surveys, questionnaires, observation anddocumentary analysis. The study showed that although numerous SMEs did keep some form of financialrecords/accounts. Unfortunately, a huge majority the (SMEs) hardly were aware nor convinced of theusefulness of accounting Information. Moreover, the financial reporting requirements for control and decision-making purposes were but a vocabulary to many.

The study recommends that the SMEs be educated on the importance of accounting information indecision-making. It is only after knowing the importance and role of accounting information that the SMEswill keep the proper records and use the accounting information for vital decisions.

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THE EFFECTIVENESS OF OUTSOURCING TAX COLLECTION IN TANZANIA

Hawa Wahab Ridhuan Mringo

Master of Business Administration (Finance), 2007

The study analyzed the effectiveness of outsourcing in Tanzania, using a case of Tanzania Revenue Authority(TRA). The objectives of the study were to assess the level of revenue collection prior and after outsourcing,level of risk reduction and level of customer satisfaction after outsourcing in TRA.

This study employed a descriptive research design. It was mainly based on primary data that wascollected through semi-structured questionnaire and supplemented by secondary data from review ofliterature on revenue collections in Tanzania.

The findings show that level of revenue collection has improved tremendously; the risks prior faced byTRA were reduced to a greater extent and the level of customer satisfaction improved to a great extentcompared to pre-outsourcing period.


Bases on the research findings and discussions, we have seen that the risks prior faced by TRA werecompletely eliminated, revenue collection increased and the level of customer satisfaction increased aswell.

This study was done using data from Dar es Salaam only. Further study could be done on the sametopic and sample survey to be conducted in the whole country to generalize what was found from the smallsample.

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EFFECTS OF AUTOMATION OF BANK’S PROCESSES ON CUSTOMER SERVICEDELIVERY IN COMMERCIAL BANKS

A Case Study of Citibank Tanzania Limited

William Fidelis Makoresho

Master of Business Administration (Finance), 2006

The adoption of technology into service industries is becoming a strong trend as service providers are nowbeing urged by industry bodies to invest in technology as a way of securing their future in the technologyage. Due to lack of computerized customer services banks have found difficulties in providing efficient andbetter services. They have been facing problems of long delays of services to their customers. CitibankTanzania Ltd, which was used as a case in this research, has been investing large amounts of money inautomating its processes. The research intended to explore whether investment in Information Technologydone by Citibank Tanzania is operationally justified and whether it has an impact on customer servicedelivery.

Three study hypotheses were developed. Hypothesis One tested Information system usage and customersatisfaction, Hypothesis Two tested whether the growth of electronic banking has direct relation to theimprovement of banks’ service delivery, and Hypothesis Three tested whether bank’s process automationdirectly impact service turn-around time. Cronbach’s alpha test was used to test the reliability of thequestions.

It was found that majority of respondents (over 87%) agreed that automated banking services assistfast delivery of banking services and enables settlement of transactions in less than 15 minutes. From thehypotheses testing it was found that automation of banking services had direct relationship to the improvementof banking services, direct impact on service turn-around time and direct proportional to customersatisfaction.

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CONSUMERS’ PERCEPTION OF ADVERTISING IN TANZANIA

Bernard Venant Ndunguru Kapesi


This study sets out to understand consumers’ perception of advertising in Tanzania with the view tounderstanding the perceived role of advertising in guiding purchasing decisions, exploring the role advertisingplays, whether or not the ads are entertaining and interesting enough to generate positive ad recall rates, toestablish how informative and persuasive the different types of advertisements are to Tanzanian consumersand finally to establish if there are issues regarding ethical conducts in advertising and how to address them.This study therefore examines the underlying beliefs that may account for perception of advertising amongthe Tanzanian consumers as a result of the country’s trade liberalisation policy adopted in the late 80s.

Qualitative research approach involving the use of Focus Group Discussions (FGDs) was adopted incollecting data for this study. The FGDs were made up of both males and females drawn from the C1C2Dsocio-income groups, aged 18 - 45 years. Digital recording devices were used to record the discussions.

Although research findings show that there is a positive perception of and favourable attitudes towardsadvertising in general, it does not necessarily mean that advertising alone influences purchase decisions.Discussants noted that advertising is useful in product knowledge and availability, and pointed out a fewads considered unethical and/or intrusive in the values and lifestyles of consumers. Entertaining and humourousads were said to have high recall rates. They also expressed the need for having rules and regulations foradvertising to guide both the media and advertisers on ethics.

Based on the focus group respondents the findings indicate that there are economic, social, ethical andregulatory factors of advertising to be considered when examining attitudes towards advertising in general.

Implications of the findings have been highlighted under the respective areas such as implications totheory, to advertising practice/profession, policy implications and managerial implications.

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THE USEFULNESS OF ACCOUNTING INFORMATION FOR DECISION MAKING INTANZANIA PUBLIC UNIVERSITIES

The Case of University of Dar Es Salaam

Exaut Julius


This research aimed at assessing the usefulness of accounting information for decision making in TanzanianPublic Universities. This study analysed how far users competence, information quality and nature ofaccounting information provided contributed to improvement of the usefulness of accounting informationfor decision making in Tanzania Public Universities, taking the University of Dar es Salaam as the casestudy.


In examining the usefulness of accounting information the study was conducted to answer the researchquestions like, do users of accounting information have the relevant experience and qualification? Does theaccounting information contain the relevant quality? and does the nature of accounting information influencethe usefulness of it.

In order to answer the above questions data were collected from 79 respondents, out of whom 51were Accountants, 19 Deans and Directors, 5 internal auditors, the Bursar for MUCHS and Mlimani, aswell as the Chief Administrative Officer and Chief Academic Officer of the University of Dar es Salaam.Data were analyzed using SPSS computer software program.

The research found that there were a significant relationship with respect to competence and quality ofaccounting information in decision making. However with regard to the nature of accounting, the researchfound that there was no relationship with respect to usefulness.

The conclusion reached here is that accounting information is useful in decision making with respect tousers’ competence and quality of accounting information provided. This study was carried out at theuniversity level and thus appeals for more studies in other sectors of the economy for further assurance.

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FACTORS DETERMINING DEPOSIT MOBILIZATION IN COMMERCIAL BANKS INTANZANIA

Alpha Wilson Magubila


The overall objective of this study was to analyze factors determining deposits mobilization in commercialbanks in Tanzania. More specifically the study intended to: examine the impact of information technologyin deposits mobilization; evaluate the contribution of location of the bank on deposit mobilization; examinethe impact of varieties of services offered on deposit mobilization; and assess the relationship betweenbank’s image and deposit growth.

The study employed a sample survey technique, where 60 customers and 60 bank officials from fourbanks (CRDB bank, Akiba Commercial bank, Stanbic bank and Standard chartered bank) were interviewedas representatives in this study. Both primary and secondary information were used in this study. Primarydata through questionnaires was analyzed using Statistical Package for Social Scientists (SPSS). Theresults were presented using frequencies and charts to supplement and support explanations.

The results from the analysis of both the primary and secondary data made the study to come up withthe conclusion that all the factors are influential in Deposit Mobilization in Commercial Banks in Tanzania.Also limitations and area for further research were identified.From the study, recommendations are made on improving the use of information technology in commercialbank to allow more utilization of Electronic money and credit cards. Also it recommends Commercialbanks to design a way to make deprived rural population to get the banking services.

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FACTORS INHIBITING TRAINING AND DEVELOPMENT OF NON-ACADEMICEMPLOYEES OF THE UNIVERSITY OF DAR ES SALAAM

The Case of Directorate of Investment and Resources Mobilization

Amos Langaeli Nnko


In this study the researcher wanted to examine factors inhibiting training and development of non-academicstaff of the University of Dar es Salaam and in particular the Directorate of Investment and ResourceMobilization (DIRM).

In order to probe the research problem, the study worked out a population sample drawn from employeesworking with six units of the DIRM. These units are University Student Accommodation Bureau (USAB),Research flat accommodation facilities, Silver Sand Hotel, Transportation Unit, Photographic Unit andInsurance Agency. The total of 60 employees was sampled out of a population of 100 employees.

The study was based on the case study; both qualitative and quantitative research approaches wereused. Simple random sampling method was used to select respondents from the population. The Instrumentsused for data collections were questionnaires, interviews, observations and documentary review. Thedata analysis was done through SPSS and the qualitative data were tabulated and frequented, the respectivepercentages were calculated and where necessary, tables, graphs, and narrative modes were used torepresents results obtained from the data analysis. Finally the data were interpreted.

The findings have indicated that training and development of non-academic staff is affected by variousfactors. Such factors were unavailability of training and development policy and programs for non academicstaff, Inadequate training budget, lack of management support, untrainable employees, poor recruitmentsystem, the use of poor training method, poor employees’ participation in training and development,incompetent trainers, lack of coherent staff performance appraisal system, poorly conducted TNA, Lackof job re categorization after training, improper planning on employee training, lack of competent andprofessional HRM practitioners and lack of transparency in selection of trainees. In view of these factorsthe study recommended the need to have training policies, accrue funds for employees’ training anddevelopment. Also TNA should be done effectively and professionally in order to accurately establish thequality of the workforce required by the organization.

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PUBLIC SERVICE DELIVERY AND FINANCIAL PERFORMANCE OF GOVERNMENTEXECUTIVE AGENCIES IN TANZANIA

The Case Study of the Agencies in Aviation Sector

Paul Christian Rwegasha


This study has chosen three Executive Agencies in aviation sector namely TAA, TCAA and TMA as thecase study. The broad objective of this study was to investigate how effective the established ExecutiveAgencies in Tanzania implements and achieve the objectives of their establishments. More specifically, the


study was intended to assess and establish whether the established executive agencies have managed tomake improvements on financial performance and in delivering public service, and to come up with theconclusion on whether the decision of government to create executive agencies was viable decision or not.Quantitative and Qualitative research approaches were used to collect data. The study found that, thesignificant progress has been made in the reviewed agencies compared with the period before theirestablishment. In terms of improvement in public service delivery, TCAA has made a tremendousimprovement followed by TAA which has scored average performance and TMA which has scored low inthis aspect. In terms of financial performance TCAA and TAA have managed to generate own revenues tofinance fully the expenditure budget and they are no longer dependent on government subsides. TMA dueto the nature of services it offers has not managed to generate sufficient revenues to finance its expenditurebudget, and therefore still depends heavily on government subsides. Generally the decision of establishingexecutive agencies as one of the public service reform strategy introduced by the government of UnitedRepublic of Tanzania is viable decision as most of the created agencies have shown positive trends inimproving public service delivery as well as in financial sustainability. However, agencies need to be proactivein seeking ways to scale up their role in service delivery to public. They should have in place a program ofcontinuous service quality improvement based on comprehensive and up to date information on customerneeds and preferences together with the customers perception of the quality of service that is being deliveredand to what extend this meets their expectations.

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COUNTRY OF ORIGIN EFFECTS ON PRODUCT EVALUATION

A Case of Electrical Appliances and Motor Spare Parts

Patrokil Kanje


This study aimed at investigating country of origin effects on product evaluation and specifically on theeffects on quality perception, satisfaction and intention to buy for electrical appliances and motor spareparts. The study also looked at other related factors which include price, brand name, availability, andappearance. A random sample of 93 customers was studied using a cross sectional survey and threehypotheses guided the study. The first hypothesis proposed that a relationship exists between country oforigin and customers perception of quality. The second hypothesis proposed that Countries of origineffects on product evaluation by customers are similar between electrical appliances and motor spareparts. Finally, it was hypothesized that there is an association between country of origin and purchasedecision/intention by customers

The study revealed that a significant relationship exists between country of origin and perception ofquality by customers in the purchase decision. It was also found out that customers’ perceptions differ interms of products’ durability, accessibility, ease of use and performance based on country of origin. However,price has been found to outweigh country of origin effects in influencing purchase decision. In certain cases

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country of origin effects are similar across the two product classes of electrical appliances and motor spareparts.

Relevant recommendations for prompt action and further research include research on hybrid products,places and other factors have been made to other researchers. Other studies that have been conducted inthe developed world can also be replicated in the developing world for better and more accurategeneralizations.

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FACTORS INFUENCING DEFAULT IN A GROUP LENDING MODEL USED BY MICRO-FINANCE INSTITUTIONS IN TANZANIA

A Case Study of PRIDE (T) & PTF

Suzana Sakilu


The study investigated Factors Influencing Default in a group Lending Model used by Micro-financeInstitutions (MFIs) in Tanzania. Three objectives guided this study, namely, to investigate whether or nottransaction costs incurred by MFIs’ clients result to default, to examine multiple membership in relation toloan repayments and to investigate if the default in MFIs has any impact on client population.

The study was conducted in Dar es Salaam region and a survey approach was used. The samplecomprised 120 respondents from two MFIs. Data collection was undertaken through questionnaires,semi- structured interviews and documentary review.

Findings from the study reveal that transaction costs do not have an impact to loan repayment basing onthe fact that, MFIs’ clients regard weekly meetings as a chance for exchanging new ideas about business.Likewise, the study reveals that multiple membership influence loan default. Comments given were due tosmall amount of loan, lack of clients’ awareness and culture of being unsatisfied. Lastly, the study revealsthat loan default in MFIs influence clients to dropout. The reasons given included: good clients are discouragedto waste their time and money paying for defaulters.

The study concluded that both MFIs and their clients had a vital role to play in order to improve loanrepayment. The study insisted training to MFIs clients in order to acquire basic knowledge in running theirbusiness. The study recommended that in order to assure good repayments, MFIs should train their clients,provide them a grace period as well visit their business before providing the loan.

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AN ASSESSMENT OF FACTORS LEADING TO FUNGIBILITY OF CREDIT AND ITSIMPACT ON MICROFINANCE LOAN DELINQUENCY

The Case of The National Microfinance Bank Limited

Muhidin R.S. Ally


The main objective of this study was to assess factors leading to the fungibility of credit and its impact onloan repayment in the National Microfinance Bank Limited. Fungibility is said to have significant contributionon the performance and quality of loan portfolios of the commercial banks.

The total of 111 respondents from four National Microfinance Bank branches in Dar es Salaam wassampled. Both qualitative and quantitative methods were used in data analysis. SPSS and Microsoft Excelprograms aided data analysis. Simple linear regression models were used to test relationships that theresearcher was interested to find out.

It was found that factors leading to fungibility of credit in the National Microfinance Bank Limitedincluded clients’ strategies of managing shocks, propensity to acquisition of fixed assets, high cost ofcredit, short product line and information asymmetry among others. At 5% level of significance it wasconcluded that there is significant statistical relationship between fungibility of credit and loan delinquencyin the Bank. It was also concluded that Bank’s policy on fungibility of credit does not address the problemon its entirety. Lastly it was also found that fungibility of credit has positive relationship with frauds, misconductand dishonest among employees and that it accounted for the greater part of the present delinquency andportfolio performance problem in the bank.

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DEBIT CARDS AND CUSTOMER SATISFACTION

The Case of CRDB Bank Ltd

Catherine Zakaria Ringo

Master of Business Administration (Finance) September, 2007

The general objective of this study was to investigate on debit card usage and customer satisfaction. Thestudy investigated on the level of customer satisfaction from using debit cards and challenges that customersface from using of debit cards.

The study utilized the survey method of data collection. It was conducted in Dar es Salaam and datawere collected from CRDB bank.

The study has established that there is a positive response for customer satisfaction in using of debitcards among the people interviewed. The study however established that there are challenges facing customerin using the debit cards. Challenges include frequent break downs of the ATM machine, limited cashwithdrawal amount, narrow services offered by the card, few ATMs and POS centres, time consumingservices due to long queues etc.The study recommends the need for the banking institutions to ensure cash availability at ATMs at all the

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times, increase the number of POS and ATM centres, regular servicing and monitoring of the machines toensure their reliability, sharing of debit cards among banks,. The study also recommends for the bankinginstitutions to reduce withdraw charges, more advertisements and education to create awareness andincrease number and frequency of use, increase and integrate number of services, ensure high speedservices, increase amount of money that can be withdrawn.

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DISPOSAL AS A PUBLIC ASSETS MANAGEMENT STRATEGY

AN EVALUATIVE STUDY OF DISPOSAL OF GOVERNMENT RESIDENTIALPROPERTIES IN TANZANIA

Siasa Issa


Nearly all countries own or control substantial portfolio of public assets, including residential properties.Although governments generally attend—with greater or less experience—to the day-to day operationalneeds of their assets, few such governments think of their assets as a portfolio whose composition might bemodified to better serve public purposes.

The study aims at evaluation of disposal of residential properties in Tanzania that commenced in 2002which involves the disposal of government and public corporations residential properties. The study isbased mainly on a review of practical, academic, and institutional literature. It also uses data from TBA,individuals who purchased the public residential properties in Dar es Salaam and real estate experts.The findings of this study reveal that the exercise was not properly conducted given the best practices ofthe disposal of public assets. This is substantiated by the fact the government does not maintain theNational Asset Register, not appropriately selected the buyers of public residential properties, did notfollow the disposal route and did not conducted post disposal appraisal. It also becomes evident that thegovernment still needs those houses and efforts need to be made to repossess some of the disposedresidential properties.

Finally, the study provides recommendations to the government on the actions to take to ensure that thepublic assets are managed efficiently in order to benefit all citizens who are the ultimate owners of thepublic assets.

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THE ROLE OF MARKET SEGMENTATION IN ENHANCING FIRMS SERVICEDELIVERY

The Case of Mobile Phone Companies in Tanzania

Ahimidiwe Massawe


The study had three specific objectives; to examine the role played by market segmentation in enhancing


mobile phone companies service delivery, whether quality of service delivered resulting from segmentationenhances customer satisfaction and whether the quality of service resulting from segmentation leads toincreased mobile usage.

Findings of the research show that to a great extent market segmentation improves quality of servicedelivered to customers. There is a strong relationship between the quality of service delivered and customersatisfaction and contribute significantly to increased mobile usage.

Conclusively, it is evident that in order to provide quality service and be able to satisfy customers,companies need to understand well their customers and segment them according to their specific homogenousneeds and serve them better than their competitors do.

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RELATIONSHIP QUALITY AND CUSTOMER LOYALTY IN THE MOBILETELECOMUNICATION COMPANIES IN TANZANIA

Gabriel Redson Makupa


This research studies relationship between relationship quality and customer loyalty in selected mobiletelecommunication companies (MTCs) in Tanzania. The researcher was interested in establishing therelationship between relationship quality (RQ) and customer loyalty with specific reference to mobiletelecommunication companies.

The study took the form of a cross-sectional survey design, using self-administered Questionnaires. Itwas carried out in 3 mobile telecommunication companies and involved 300 customers in Dar es Salaam.Tables were used to describe the characteristics of respondents. Pearson correlation was employed toestablish association between the studied variables and to answer the research questions. Regressionanalysis was also used to explain the extent to which the independent variable predicts the dependentvariable.

The findings revealed a significant relationship between relationship quality components, i.e social bondand customer loyalty, which is consistent with the previous works done in the same area. This call for theneed of strengthens relationship with customers if telecommunication companies in Tanzania want to wincustomer loyalty and hence sustain their business.

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CORPORATE GOVERNANCE FOR PENSION FUNDS IN TANZANIA

A Comparative Study of PPF and NSSF

Mohamed A. Ahmed

Master of Business Administration (Finance), November 2006Government-mandated pension plans exist, first and foremost, to provide some assurance of adequateincomes for citizens in retirement. The primary objective of these mandatory retirement saving programs isto ensure that workers would not face hardship in their retirement years and to ensure that governments

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are not faced with large social welfare costs if myopic workers did not save for retirement when they wereworking. The broad objective of this study was to assess and make a comparison between PPF andNSSF in the context of corporate governance in their operations. The study involved two pension funds,namely NSSF and PPF. Quantitative and qualitative research approaches were used to collect information.The results were presented and discussed using the list of criteria developed in this study.

Findings indicated that, while poor governance in both NSSF and PPF were observed in terms ofappointing and dismissal of CEO, appointing board members, good governance were observed in termsof term of office and holding of other government offices by CEOs, policy formulation of the pensionfunds, types of investments, gauging the risk of investment and procedures for investment decisions. Despitesome little weakness observed in the pension funds in Tanzania, generally they reveal good governance interms of their daily operations. To improve good governance of pension funds in Tanzania in their operations,the study suggests that CEO’s appointment should be done by the Board of Trustees instead of the Presidentas it is currently. The tripartite representation of the board of trustees is good but should include pensioners.

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FACTORS AFFECTING CELLULAR PHONE USAGE IN TANZANIA

Rick Eliud Kikota

Master of Business Administration (Marketing), 2006

Cellular phone usage in Tanzania has increased since the introduction of this important service. This researchwork were aimed on studying factors influencing the adoption and usage of cellular phone in Tanzania; androle of promotional campaign in cellular phone industry in increasing cellular phone usage. The country hasnot achieved the MDG target figure of cellular phone users.

It was hypothesized that perceived benefits, affordable pricing and other factors need to be controlledso that the country can increase the number of people using cellular phone. Primary data was collectedfrom the user of cellular phone, and was captured by the aid of a questionnaire. Collected data wereanalysed by simple frequencies and Chi-square tests.

It was revealed that majority of the respondents are of the opinion that usage of cellular phone increasesproductivity at their works and it is convenient to use. Also majority do no agreed that cellular phone usageis due to price being charged by network provider. The majority of the respondents are of the opinion thatpromotion made by network provider attracts them in cellular phone usage. Also in average usage ofcellular phone is influenced by advertisements and price review from network provider.

It was concluded that the use of marketing strategies by network provider has no significant relationshipwith increase in cellular phone usage. This suggest that there are other factors that may influence theincrease of people using cellular phone in Tanzania

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INFORMATION SYSTEMS SECURITY MODELLING IN ORGANIZATION

Abamwesiga Kiiza Beneth

Master of Business Administration (Finance and Information Systems), November 2006

The objective of this research was to formulate a model for explaining the triggers of information securitymanagement (ISM). The ISM is influenced by three major factors: the senior management perception ofsecurity risk, the internal and or external security events that are deemed significant when they occur andthe perceived strategic importance of information system in the organisation.

The research employed the positivist methods to evaluate the factors influencing the change in informationsystem security management in the organisations. A sample of 35 organisations was selected; theseorganisations were using information system as the strategic system and were using the system in the lastthree years during the period of study. The structured questionnaire was used for data collection.

Data analysis was done using quantitative techniques including proportions, factor analysis and chi-square test. The study findings are: that information risk awareness amongst directors and senior managerinfluence how information security reviews take place, the perceived strategic importance of the informationsystem in achieving the organisation objective and the influence of external and or internal security eventsthat are important by the management does influence the information security management practices.

The research concludes that, there is an intricate relationship between perception of risk and ISM, therelationship between perceived strategic importance of IS and ISM practice and external an or internalsecurity events does influence the way the ISM practice is conducted in organisation.

The research, therefore, recommends that apart from the contemporary technological approach, securinginformation should take a strategic perspective in addressing risk perception amongst senior executive andas well address other issues such as information culture, awareness and constantly scanning the environmentboth within and outside to monitor surfacing new security threats and adjust the controls to mitigate theserisks.

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TAX COMPLIANCE ISSUES ON SMALL AND MEDIUM SIZED ENTERPRISESSECTOR IN TANZANIA

The Case of Small and Medium Sized Enterprises in Dar es Salaam Region

Ndete Faraji


Tax compliance is a serious and costly problem to SMEs in most developing countries. This study seeks toexplore the tax compliance issues on SMEs in Tanzania. Thus, the study attempted to establish the keyreasons of non-compliance and give out the suggested solutions to problems that lead to non-compliance.

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`In this study, the researcher used snowball sampling approach in order to include SMEs who operateoutside of the tax net i.e. informally. The questionnaires were used to allow respondents to express theirtax views freely. The study uses both qualitative and quantitative methodologies to analyze the data.

The study found out number of factors that cause non-compliance of SMEs with the tax law in Tanzania,these are: - lack of knowledge by the taxpayers, high tax charged to SMEs, lot of time required for taxcomputation, poor business performance, limited time for tax payment, complexity of tax law, poor financialrecords, variations on turnover, corruption of some TRA officers, and liquidity problem. Further more, thestudy suggested possible solutions to problems revealed.

Non-compliance of SMEs in Tanzania with the tax law is mostly caused by lack of tax knowledge andcomplexity of the tax law. Therefore, the tax authority could improve tax compliance through educatingSMEs on tax matters and by being transparent.

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LIQUIDATION OF PUBLIC ENTERPRISES IN TANZANIAAND ASSOCIATEDPROBLEMS IN PAYMENT OF EMPLOYEES’ TERMINAL BENEFITS

The Case of Mwanza Textiles Limited

Juvenalis Motete

Master of Business Administration (Human Resource Management), November 2006

This study was conducted to investigate liquidation of public enterprises in Tanzania and associated problemsin payment of employees’ terminal benefits. MWATEX (In Liquidation) was taken as a case study. Theprinciple objective of this study was to examine and document factors behind problems associated withpayment of employees’ terminal benefits of liquidated public enterprises in Tanzania, and to suggest remedialand appropriate measures that could be taken to reverse the trend.

Data for this study was collected using both secondary sources and structured self-administeredquestionnaires. A random sample of 250 was selected out of 1,723 employees, who were on roll as ofOctober, 1993. 150 (or 60% of the targeted sample) employees responded. Data were analyzed usingSPSS.

Findings of the study revealed that terminal benefits offered to employees of liquidated public enterprisesare inadequate, there is lack of awareness on the part of the employees with respect to the proceduresinvolved and their rights to terminal benefits, and employers and pension Funds mishandle payment ofterminal benefits. As a result, the study recommends the establishment of strong and independent tradeunions to advocate for the rights of their members, and treating legal prescriptions as merely laying downminimum terms on terminal benefits thereby adopting other non legal means (e.g. social corporateresponsibility) to achieve equitable terminal benefits.

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INVESTIGATION OF THE FACTORS INFLUENCING CUSTOMER SATISFACTION INTOURIST HOTELS

The Case of Dar es Salaam

Nasra Kara


Highly significant changes are currently taking place in tourism, with a notable increase in competitionbetween hotel companies and especially between emerging and consolidated tourist destinations. Due tosuch a fact, this study specifically endeavored to investigate the factors influencing customer satisfaction intourist hotels in Dar es Salaam.

Both qualitative and quantitative data were used to generate reliable data, to identify study factors likeperceived service quality, perceived price and hotel location. Data were collected from fifteen touristhotels in Dar es Salaam. Primary data were collected through using structured questionnaires and observationwhile secondary data were considered as well. The analysis of the research data was done by using SPSSpackage whereby a non- parametric test (chi – square test) was used to test the strength of the observedvariables, and multiple regressions was used to test the proposed hypotheses.

The overall findings revealed that hotel customers were satisfied to a great extent with the services theyreceived in tourist hotels, while the hotel locations in the city centre and the reliability in maintaining dailymenu proved to be a less significant factor in influencing customer satisfaction. However, it has noted beenthat, in order for hoteliers to operate well in the competitive environment, training should be given to hotelworkers, the price of food and beverage should be reduced and additional services should be available inhotels located in the city centre.

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CHALLENGES AND POSSIBILITIES OF MAKING MARKETS WORK FOR THEPOOR:

The Case of Barrick Gold Mines in Tanzania

Chediel Nyirenda

Master of Business Administration (Finance), September 2006

The mining sector in Tanzania employs many people and therefore makes huge purchases – both locallyand internationally and could make a big market for local products. This research was conducted inKahama, Tulawaka, and Buzwagi. The objectives were to identify the needs of Barrick, to analyze localcapacity to supply these needs, to identify the challenges hampering this capacity and then suggest a localprocurement strategy that would add value to both Barrick and the local SMEs. Visits were made to the

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mine sites and to the surrounding communities and interviews conducted with key personnel. Importantdocuments were also reviewed.

This research has found out that there is a good potential for local entrepreneurs to supply the needs ofBarrick Gold Mines in Tanzania. The local entrepreneurs do not meet the quality and reliability standardsthat cannot be compromised by Barrick. It was also found that Barrick contributes a lot to communitydevelopment through building schools, wells, a market and a hospital and they employ many local people.They have done a lot of other forms of charity.

In spite of these offers Barrick still needs to take a step further and engage in social enterprise developmentto support the actual economic development. One step is by forming an Entrepreneur Resource andInformation Centre. Difficult policy regulations should be dealt with, the business formalization sped upand local entrepreneurs should engage in the formation of companies in order to become competitive

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CHALLENGES OF INFORMATION SYSTEMS IN SUPPORTING BUSINESS NEEDS OFINSURANCE COMPANIES IN TANZANIA

A Case Study of Heritage Insurance Company Tanzania Limited

Evan Makundi Elisafisha


Information system adoption has become part and parcel of modern business both in developed countriesas well as developing countries. Many organizations particularly in the financial sectors are heavily dependenton information systems to execute their daily operations and provide management with viable accurate,timely, relevant information for decision making.

Insurance companies have not been left behind in the quest for adopting information system in theirbusinesses. However the process of adopting these systems has not been without hitches. Many companieshave spent lots of money in anticipation of getting a system that will meet their business needs throughimproved service delivery and efficiency, but to their surprise they end up being frustrated by getting asystem that does not meet their requirements and expectations.

This study focused on challenges of information system in meeting business needs of insurance companyin Tanzania, a case study of Heritage Insurance Company Tanzania Limited.

Data was collected through the use of structured questionnaires from employees of Heritage Insurance.The total number of employees responded to the questionnaire were 38 out of 50 employees of HeritageInsurance. Based on the variables and the stated hypothesis, the full regression model was analyzed.Various probability theories were used in an attempt to answer specific questions based on variables andstated hypothesis.

The finding of this study reveals that usefulness, information quality, ease of use and vendor support hassignificant impact on information system user’s acceptance at Heritage Insurance. However these are notthe only variables that have significant influence on user acceptance, it may be assumed that other variablessuch as management support, user involvement in acquisition, implementation process, and motivational,behavioral and attitudinal components might as well have a significant influence on information system useracceptance.

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FACTORS AFFECTING HUMAN RESOURCES PLANNING PRACTICES IN PRIVATEORGANIZATION

The Case of CRDB Bank Limited in Tanzania

Rukia Msusa

Master of Business Administration (Human Resources), November 2009

The main objective of this study was to explore factors affecting Human Resources Planning practises inprivate organization, a case of CRDB Bank. Despite the efforts made by organizations to ensure that thereare right people, in the right place, at the right time, there are still some challenges in the whole process ofimplementation of effective Human Resources Planning in the Tanzanian private organizations. Failing toproperly plan for their human resources, employers are forced to become reactive, rather than proactive.This tendency of reactiveness causes problems of rush recruitment which sometimes led to wrong recruitments.Respondents were drawn from CRDB Bank staff in three different branches. Sample of 60 respondentsout of 196 were selected by using simple random sample. Questionnaires and documentary review wereadopted as main tools of collecting data.

Findings revealed poor implementation of HRP at CRDB Bank, and realized factors affecting HRPPractises at CRDB Bank such as limited budget, ad hoc decisions, labour turnover, improper linkage ofHRP activities with corporate strategy, improper information of HR, inadequate appreciation of the valueof HR, lack of retention plan, and poor communication. The study concluded and recommended the needfor the realization of HR as the most valuable assets and develops an appropriate reward system that willattract and retain employees in order to achieve a competitive advantage. CRDB Bank should considerrecruiting HRP professionals, who will ensure that recruitment is done with minimal errors, so that rightpeople, to be in their right place, at the right time. HRP at the CRDB Bank should be established in amaster plan where by the requirements of each project that is initiated should be incorporated in thebudget.

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ASSESSMENT OF TIMELINESS OF FINANCIAL REPORTING

The Case of Muhimbili University of Health and Allied Sciences in Tanzania

Mussa Hamid Mzuzuli


The problem of untimely financial reporting in the public institutions has become critical as far as theController and Auditor General (CAG) of Tanzania is concerned. Among the most affected areas in delayof submission of financial statements for auditing are the public Universities.

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The main objective of this study was to make an assessment of timeliness of financial reporting at publicUniversities in Tanzania and to assess factors which affect preparations and submission of financial reports.This case study conducted at the Muhimbili University of Health and Allied sciences (MUHAS). TheMUHAS financial report and nine other financial reports from donor funded research projects, from2002- 2008 were randomly selected and analysed. Questionnaire were prepared and distributed to variousstaff at the University. The financial reports for the period covered were obtained, their issue date andauditors’ report types were recorded and analysed.

The study found that; no significant associations observed between the number of staff, their experiences,professional educational level, and work structure, frequency of producing financial reports and the degreeof internal control with the timeliness of financial reports.The study results imply that; there other factors that may be associated with timeliness of financial reportthat need to be researched or the same variables using higher level of significant.

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AN INVESTIGATION OF THE STATE OF AUDITOR INDEPENDENCE IN SMALLAUDIT FIRMS IN TANZANIA

Patrice Deemay


Professional standards require auditors to be independent in the performance of attestation services. Criticsof the accounting profession have expressed concern that, pressure to maintain and develop businessopportunities may erode an auditor’s objectivity and independence especially for small audit firms whenmaking audit judgments.

This study investigated the state of auditor independence in small audit firms in Tanzania. Four specificresearch objectives were developed. These were: to assess the extent of auditor rotation in the small firms;to assess the proportion of non-audit fee to total fee from a client; to examine the extent of price competitionin the small audit firms and to assess the proportion of audit firm’s financial dependence from a client.

Data was collected from fifty-four respondents comprised of; twenty small audit firms, four big auditfirms and thirty client firms by using both close and open ended questionnaires developed for that purpose.Data obtained were analysed quantitatively using the Statistical Package for Social Sciences (SPSS)especially Frequency Tables and Percentages.

The findings indicated that the rotation of audit firms/partners in small audit firms seemed to be rarelypracticed and hence their independence is in question. Also perceptions of auditor independence werestatistically significantly lower for the cases where the audit firm performed non-audit services in additionto audit services. It was also found out that small audit firms are influenced by their clients to reduce auditfees especially during initial engagement something detrimentally impair their independence. However, theassessment of small audit firm’s financial dependence over individual client did not indicate great impact.

It is recommended that regulators set certain minimum number of partners to be able to undertakerequired audit rotation; also to limit the number of non-audit services to be offered by a firm to two or threeonly, and finally a compulsory formation of audit committee in the clients firms’ corporate structure.

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COMPLIENCE IN TANZANIA

Venance Mshana


The main objective of the study was to evaluate whether Tax Practitioners enhance Taxpayers’ ValueAdded Tax compliance in Tanzania. Specifically Tax practitioner’s knowledge in VAT laws, reliability oftheir advice given to taxable persons and the level of accuracy observed on VAT returns prepared by taxpractitioners were assessed. Factors that influence taxpayers’ decision to engage tax practitioners werealso evaluated. The study is a sample survey conducted in Dar es Salaam region covering 72 VAT registeredtaxpayers, 34 Tax officials and 5 Tax practitioners.

Result from the study show that tax practitioners have sufficient knowledge in VAT laws; exhibit highskills and professional competency; and advice their clients accurately. VAT returns prepared by Taxpractitioners are more accurate than those returns prepared by the taxpayers themselves. Further resultsshow that factors which forced the VAT registered taxpayers to use tax practitioners includes amongothers lack of tax and accounting knowledge, complexity of tax laws and objectively to have the mostcorrect VAT returns.

The study recommends the enhancement of tax education program as it will increase the taxpayer’sability to understand the tax system thus enabling them to have clear conscience in carrying out theirresponsibilities. Simplification of tax laws, improvement of taxpayer services and recognition of taxpractitioners as the key stakeholders in building voluntary VAT compliance. Lastly further research areashave been identified.

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THE USE OF FINANCIAL STATEMENTS INFORMATION IN THE LENDINGDECISION PROCESS IN TANZANIA

The Cases of CRDB, NBC and NMB Bank

Salama Mohamed


This research aimed at assessing the use of financial statements information in the lending decision processin Tanzania. It analyzed the key information required by banks in their lending decisions and assessed thequality of information contained in financial statements that result into favourable bank lending. The samplewas selected randomly from loan officers of the three financial institutions which were NBC, NMB andCRDB. Total respondents were 88 and the tools used for collecting data were questionnaires and interview.The data were then processed and analyzed through SPSS and presented in form of tables, frequenciesand percentages. The findings of the study revealed that the key information required by banks in the

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lending decisions were Balance Sheet, Income statement, Business Plan and Budget for next years. Thestudy further discovered that there are other information required by banks in their lending decisions.These include stock and debtors list, residential assurance of the borrower, availability of collateral andintegrity of the borrower.

The conclusion reached is that, the quality of the financial statements information is something verycrucial in lending decision process as it influences the lending decision. Finally, the study recommendsfurther studies to examine the use of financial statements information in non banking financial institutions inTanzania and to establish a relationship between auditors attestation of the financial statements and thedegree of reliability of the same in relation to adequate repayment of the loan.

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FACTORS LEADING TO INVESTORS INACTIVE TRADING OF SECURITIES IN THESECONDARY MARKET

The Case of Dar es Salaam Stock Exchange (DSE)

Lawrence Mworia


The general objective of this study was to investigate the factors that are leading to investors inactivetrading at DSE market. The study investigated the factors that are causing the public to shy away from thesecondary trading of securities, the factors that hinder the awareness of DSE by the public as well as therelationship between the information given out by the DSE and the public’s perception. The study populationincluded the officials from the CMSA, DSE, as well as investors and non-security investors. Both primaryand secondary data were collected and analysed through quantitative and qualitative methods.

The study found out that there are a number of factors causing the public to shy away from the secondarytrading of shares, including little or lack of capital to invest, and the desire to gain a profit due to share priceappreciation. Factors identified to be hindering awareness of security trading with DSE include low level ofeducation, lack of interest by the public, difficult in understanding the technical information given and theculture of unwillingness to change. The study recommends that both CMSA and DSE should play anactive role of awareness creation and capacity building through training and aggressive promotion activitiesto raise the public awareness of the DSE operations. The public and potential investors are also advised totake a step forward to understand how the market operates, what opportunities are available and also tomobilize funds for investing in the trading of shares.

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THE EFFECTIVENESS OF CAPITAL DEVELOPMENT GRANTS IN POVERTY


ALLEVIATION IN TANZANIA

The Case Study of Four Selected Councils in Ruvuma Region

Ndaki Stephano


This study made an assessment of the effectiveness of Local Government Capital Development Grants(LGCDGs) in poverty alleviation in four councils of Ruvuma Region in Tanzania: Mbinga District Council,Songea Municipal Council, Songea District Council and Tunduru District Council. The data collectedcovered the period of 2004-2009 and provided enlightening insights for the situation in the four councilswith respect to various development growth indicators in this period. Out of 148 targeted respondents,122 (82%) gave full usable responses. Data were collected by using questionnaires, document review,interview and observation, and both quantitative and qualitative research procedures were used in dataanalysis.

The key findings of the study were: (a) the local investments were being made in accordance with localneeds as determined through local participatory planning and budgetary processes,( b) The received funds were being channeled to the projects and uses as intended and there is animprovement/expansion for physical stock of new and rehabilitated infrastructure, (c) The communities,specially the poor, have improved their access to local services, and (d) There was a positive relationshipbetween the LGCDGs received by Local Government Authorities (LGAs) and the standard of living of thelocal community.

Lastly, the study concluded that most of the local communities were aware of the LGCDG system andparticipates effectively in project’s planning and implementation, but onerous conditions set by LocalGovernment Support Project (LGSP) for access of funds did not foster the sense of development fordisqualified Councils and thus retarding the development of innocent people in those councils.This study ends by giving specific recommendations on areas of further research and to different stakeholders,including the Government to review its policies on management of LGCDGs so as to eliminate the hinderingdifficulties/challenges found.

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MAJOR FACTORS AFFECTING THE USE OF PUBLIC RELATIONS AS A MARKETINGCOMMUNICATION TOOL IN KENYAN ORGANIZATIONS

Linda Onyuka


The overall objective of the study was to investigate the major factors affecting the use of PR as a marketingcommunication tool in Kenyan organizations. It aimed to establish how Managements’ training andperceptions; positioning in the management structure and nature of the PR function; PR practitioners’ skillsand professionalism and type of organizations affected the use of PR in organizations in Kenya. The studyused a descriptive design. Survey data was gathered from various corporate organizations and PR agencies

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in Nairobi, Kenya. Various statistical analytical tools were used to analyze the responses of 100 respondentsdrawn from the above organizations.

The study established the following:-Although most top managers perceived the PR function as important,they rarely included the PR manager in the organizations’ decision making organ; The PR function in mostorganizations in Kenya was perceived as a line or support function and not a management function; ThePR manager mostly tended to occupy the middle management position in the organizational managementstructure; PR practitioners generally had no educational background in PR and professional PR skills werenot a major consideration during recruitment of PR staff.

It was concluded that PR is yet to attain full recognition as a marketing communication tool in Kenyaand it was recommended that top management be sensitized by the Public Relations Society of Kenya(PRSK) among others, on the contribution, relevance and importance of PR to their organizations.

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AN ANALYSIS OF THE EXTENT TO WHICH DISTRIBUTORS DEAL WITH THECOUNTERFEIT PROBLEM IN TANZANIA

The Case of Electronic Goods

Rosemary Mubezi

Master of Business Administration (Marketing), August 2009

This study is based on the prevailing issue of counterfeits of consumer electronic goods. Studies haveproved it to be a problem to the world economy. Regardless of many addresses, its existence is rapidlyincreasing. This study then has embarked on analyzing the extent to which distributors deal with the counterfeitproblem in Tanzania. It aimed at examining the understanding and perception of distributors towardscounterfeit electronic goods, analyzing the challenges that they encounter and identifying their contributionson government efforts towards addressing counterfeits. To attain these, collection of secondary and primarydata through a descriptive research design was done. The gathered qualitative and quantitative data wereanalyzed to bring out findings.

Findings reveal that distributors are aware of counterfeit electronic goods and are highly negative ontheir existence as they cause loss of brand integrity and customer loyalty. Distributors have identifiedassociated challenges among them being fraud in importation of counterfeits, loss of brand image andcustomer loyalty and absence of a forum to raise their opinions. Though they do not implement any,distributors currently propose some strategies against counterfeits. This led to conclude that, with theidentified challenges, the government should involve all stakeholders in its fight against counterfeits. Withthis understanding, the study recommends for distributors to create ant-counterfeiting associations forinformation sharing and undertake proactive changes in marketing mix. The government should recognizethe contribution of distributors and amend the Merchandise Marks Act, 2002 that it may cope with thesituation.

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AN ASSESSMENT OF THE CONSTRAINTS INHIBITING TANZANIA MEAT EXPORT


PERFORMANCE

Nasibu Rajabu

Master of International Trade, November 2008

This study assesses the constraints inhibiting Tanzania meat export performance. It focuses on finding outhow infrastructure, market access, supply chain, and world meat price are affecting Tanzania meat exportperformance.

This study used both primary and secondary data to examine constraints inhibiting Tanzania meat exportperformance. Ordinary Least Square (OSL) method was used to estimate the regression model. Contentanalysis was used to analyse primary data.

The study finds that soft infrastructure, meat price and the cost of compliance with sanitary andphytosanitary measures have negative impact on Tanzania meat export performance. On the other hand,the study finds a positive relationship between meat export and tariff. Also the study shows that, Tanzaniameat supply chain is inhibited by quality of meat input (livestock), and lack of meat processing industries.In order to benefit from meat trade Tanzania government has to create policies which would enable meatstakeholders to comply with SPS standards, to diversify meat market and reduce cost of soft infrastructureby promoting competition in telecommunication industry. Also government policies should be directed toenable livestock producers to get education on how to detect livestock diseases and respond upon it.Investment policies should be directed to attract more companies to invest in meat processing industries.

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FACTORS INFLUENCING CONSUMER BUYING DECISIONS IN MOBILE PHONESMARKET IN TANZANIA

A Case Study of Dar es Salaam

Neserian, Barakaeli

Master of Business Administration (Marketing), December 2008

The research study based on the factors influencing consumers buying decision in the mobile phonesmarkets a case study of Dar es Salaam city. The study aim to find the out how do different marketsstrategies e.g. pricing, promotion, presence of reliable supplier (Distribution) and product attributes influencesthe consumer buying decision in the mobile phones markets. In this research study the questionnaire surveywas used as the method of data collection where by a total of 90 respondents were surveyed at the threemunicipals of Dar es Salaam city; Kinondoni, Temeke, and Ilala.The data obtained were analyzed using Statistical Packages for Social Science (SPSS) and both descriptive

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and hypothesis testing through the data obtained was carried out. From the data analysis the results showthat pricing, some product attributes, price and presence of reliable supplier influence the consumer buyingdecision in mobile phone markets. Promotion/advertisement contributes less to consumer buying decisiondue to poor techniques used during promotion that discourage customers.

The study recommended to manufacturers and marketers that the product attributes like quality andsize as well as price and presence of reliable supplier did influence consumer buying decision. Thereforethey need to improve and put more efforts on them by introducing mobile phones of higher quality offeredat low price and increase availability of the phones. They also need to take into consideration other factorswhich can influence consumer buying decision like nature of the customers, buying classes, social class andother environmental and economic factors. The policy implication of this study is that; the government andother stakeholders like Fair Competition Commission should ensure that the manufactures or importers ofmobile phones from abroad offer/import phones of good quality so as to meet customers’ satisfaction andenhance their buying decisions

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FINANCIAL CHALLENGES FACED BY SMALL AND MEDIUM SIZED ENTERPRISES(SMEs) IN LUSHOTO DISTRICT

Zakayo Konyagi


Small and Medium Sized Enterprises (SMEs) in Tanzania gives a much contribution towards building thenational economic base. They create employment to the poor, contribute to the national income throughpaying taxes, provide raw materials to large firms, and act as the distribution outlets of large firms’ products.Despite their major contribution to the national development, they fail to grow because they are constrainedwith several challenges whereby the financial crisis is the major one. They do not get much financial supportfrom the government and financial institutions to support their businesses. In research study conducted inLushoto district, thirty (30) SMEs were studied using the random sampling method to view what makesthem perform poor regardless of their importance to the national development. The major issues identifiedin the study constraining the performance of SMEs involved, among others, insufficient amount of capitalto run the businesses, unsupportive loan conditions imposed by financial institutions that limits SMEs theaccess to financial resources, unavailability of business support services for running of businesses to enhancetheir growth, lack of business culture for many promising entrepreneurs, and, unsupportive governmentpolicies and regulations. Nevertheless there is a great deal that the government and other stakeholders cando to enhance the growth of SMEs including; adopting legal and regulatory frameworks that allow best useof financial sector infrastructure, maintaining prudential supervision of the financial sector, maintaining businesssupport services to SMEs, and encouraging banks to implement good corporate governance practicesand transparent non-bureaucratic procedures.

***************ANALYSIS OF FACTORS THAT IMPEDE REPAYMENT OF MICROFINANCE LOANS


IN COMMERCIAL BANKS

The Case of National Microfinance Bank (NMB)

Edmund Luasha


The general objective of this study was to analyse the factors that impede repayment of Microfinance loansin National Microfinance Bank Plc. Non repayment of loans is said to have significant contribution on thepoor performance and quality of loan portfolios of the commercial banks.

The total of 136 respondents from twelve National Microfinance branches was sampled. Case studydesign and qualitative research approach method was used during the study. Methods of data collectionused included interviews, observations and documentary analysis. Research instruments such as interviewresearch questions, questionnaires, documentary review schedules and observation schedules were usedto collect data. SPSS aided in data analysis.

Findings indicate that, the speed of loan repayment was low and borrowers failed to meet conditionsstipulated in loan contract forms by delaying to pay loans. Findings also indicate that, loan defaults weredue to, poor business performance, high interest rate, cheating by customers on purpose of the loan andpoor loan supervision.

Based on the study findings, the researcher recommends training to borrowers, strict scrutiny of theborrower prior to loan disbursement and the use of a well-designed loan appraisal system.

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ANALYSIS OF HOW SMALL SCALE BUSINESS ENTERPRISES ARE RUN AND THEIRRELATIONSHIP TO REQUIRED ENTREPRENEURSHIP SKILLS AND QUALITIES

A Case of Local Communities in Temeke Municipality Dar es Salaam Region

Sadiki Jose


The objective of this qualitative research was to develop a better understanding of how small businessesare run and the importance of entrepreneurship skills and qualities, and assessing their impact in carryingout business activities of small scale enterprises in Temeke municipality. The issue or problem has been thatmany of these small-scale traders tend to invade various areas and do businesses which do not looksustainable.The research method used was qualitative. It was done in different parts of the municipality, namely Temeke,

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Mbagala, Keko Yombo and Tandika by a way of in-depth interviews and direct observation. The resultsof the forty-four interviewed small-scale enterprises owners indicated that most of them did not findentrepreneurship skills and qualities to be important in carrying out their business activities.

It was also noted that the impact of not having or utilizing required entrepreneurship skills resulted intofailure of many small-scale enterprises. A mere reason of survival was proved to be behind why thebusinesses were established. No business continuity could be predicted as a result of these negative findings.The data was collected and analyzed through direct observation and in-depth interviews. This was donethrough nine questions aimed at answering research questions. The research came out with new ideasfollowing these negative findings.

All parties: Small-scale entrepreneurs, government as well as other interested stakeholders have toadopt new ways to approach this problem. Small-scale business owners must understand that they areresponsible to get necessary training and skills in running their businesses for them to see success comingtheir way On the part of government, it should design a mechanism through which, by way of subsidizingthe costs of training for the small-scale business owners

As for the part of other interested parties in microfinance activities (financing firms and NGOs) theyshould look for the way they could be of help to the small-scale entrepreneurs. Since they are firms inbusiness, they should have a feeling of corporate responsibility by assisting the very sector they are earninghuge profits from by way of interests for the borrowed monies by streamlining their financing processesand reviewing interests rates. -Self-motivation for many small-scale entrepreneurs is too minimal and thisattitude has to change for them to succeed Policy issues have to be looked at as well. SME DevelopmentPolicy (2003) contains a number of issues. They include, for example, improved legal and regulatoryframework, entrepreneurship and business training, improved marketing services, enhance access to financeand environmental issues.

Despite these issues being included in the policy document, they do not seem to have been able totackle many problems facing small-scale businesses. They may need to be reviewed periodically afterevery few years to see how effective they are.

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THE EFFECT OF ELECTRONIC PAYMENT ON CUSTOMER SATISFACTION

The Case of CRDB Bank in Tanzania

Magesa Peter Sarota

Master of Business Administration, June 2009

The objective of this study was to examine the effects of electronic payment system on customer satisfaction,with specific reference to CRDB bank. Three research questions and hypotheses were used to guide thisstudy namely; there is no significant difference in the level of satisfaction between service processed manuallyand the one processed electronically; there is no relationship between time spent in service delivery andcustomer satisfaction. Finally, the reliability of electronically processed transaction negatively impacts oncustomer satisfaction.A explanatory research design was employed to address the above objectives collecting data from a


sample of 70 respondents through the use of semi-structured questionnaire. Hypotheses raised in the studywere tested by using non-parametric tests, particularly chi-square tests.

The study found strong evidence that is a negative relationship between time spent in service deliveryand customer satisfaction. It has also been found out that there is a significant difference in the level ofsatisfaction between service processed manually and the one processed electronically in terms of reliability,relevance, accuracy, timeliness, and efficiency. Further research is needed to leverage the findings andprovide better and more in-depth implications for both theory and practice. In the future with the use of alongitudinal study it might be possible to get a broader and deeper picture of the phenomenon underscrutiny.

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THE ROLE OF INFORMATION TECHNOLOGY (IT) IN ENHANCING PROFIT ANDCOST EFFICIENCY IN BANKING INDUSTRY

Mlay, Revocatus

Master of Business Administration, October 2008

Information technology has tremendously stimulated expansion of the banking networks and range of theoffered services during recent years. This work examines the impact of the progress in information technologyon the profit and cost efficiencies of the Tanzanian banking sector.Data were analyzed quantitatively using the Statistical Package for Social Sciences (SPSS). Hypotheseswere tested using the Chi-Square test. Other findings were summarized and tabulated to depict theirfrequencies.

In the work the relationships between the level of implemented technology and the banks efficiency aretested. The research shows a positive correlation between the level of implemented IT as well as assetprofitability and cost savings.

The research also reveals that the bank faces different challenges in IT implementation. The challengesinclude shortage software and hardware, IT facilities changing very fast from time to time, high cost ofacquisition and installation IT equipment (budgetary constraints), the need for high security of data, increaseof computer virus and other malicious codes, limited technological know how to staffs, incompatibility ofnew devices with the old ones, adaptation of new technology and networking problems.

Through the data analysis contained in this research, strategies that can be used to overcome the abovementioned are proposed challenges. Research for IT needs/requirements must be done from time to timeto establish the actual IT needs in an organization. Organization must set aside enough budget for ISTechnology (cover research, training and cost of acquire technology). Branches have to be networked.Technical know-how to staff must be enhanced, timely maintenance of IT hardware and software must beensured, ant virus programs acquisitions and update software especially security software and passwords.

IT has improved efficiency in banking industry. The improvements of the cost efficiency were relativelysmaller than profit efficiency. These results indicate that introduction of the new range of services at a bank,on one hand, generates additional revenues. On the other hand the introduction of new services impliesnew significant cost changes. This means, broadening the range of the banking services may lead to increasein the cost of processing because there is an attempt to achieve economy of scale by banks conductingsuch type of banking.

***************THE EFFECTIVENESS OF MERITOCRACY IN THE RECRUITME AND SELECTION

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PROCESSES IN THE PUBLIC SERVICE OF SELECTED MDAs IN TANZANIA

George Peter Chacha


This study provides an assessment of the effectiveness of meritocracy on the recruitment and selectionprocesses of the Public Service of selected MDAs in Tanzania. The objectives of the study were: to assessif the concept of meritocracy is taken into consideration; to examine the effectiveness of the methods usedand to examine the measures taken in ensuring that the process is non discriminatory.

The study required an understanding of meritocracy in recruitment and selection phenomena within aTanzanian context. The Survey (design) approach was adopted in collecting empirical data. A sample sizeof 167 employees was selected. Both judgmental and simple random techniques were used. Judgmentaltechnique was used in selecting respondents based on their expertise and position and the later was meantto ensure that the study had respondents from every department and avoid bias. 120 copies of thequestionnaire were distributed in three selected MDAs and 100 were returned. Out of 47 respondentswho were requested for interview, only 38 turned up. Data collected were analysed using SPSS throughregression analysis method.

The findings of this research provided substantial evidence that meritocracy in the recruitment andselection processes in the public service is not effective. This ineffectiveness is a result of most CEOs notsupporting recruitment and selection.

Consequently, innovative strategies need to be implemented to enhance recruitment and selection efforts.Employers should increasingly apply electronic technology to find and place employees.

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IMPACT OF 2007 – 2009 ECONOMIC CRISES TO HUMAN RESOURCE SERVICE INFDIs IN TANZANIA

The Case of Dar es Salaam City

Thobias Magoti Ndaro


The main objective of this study was to examine the impact of 2007 – 2009 world economic crisis tohuman resources service services in foreign direct investments in Tanzania. Through literature review, itwas detected that the ongoing crisis was a result of eruption of the bank crisis in the United States ofAmerica following the mismanagement in subprime mortgages. The crises had spread from Asia, Europeand currently was penetrating to less developing countries Tanzania in particular, proving that no countryhad immunity to the going crises. The impact of the crises differ from one country to another depending onits nature of the economy under the following aspects; foreign reserve, fiscal balance, level of external


debts and account of the balance. In this study, a qualitative research approach was used to be able to geta holistic picture and detailed information and supplemented by quantitative analysis. A total sample of 65respondents was selected through purposive, stratified random sampling and snow ball sampling techniques.The study revealed that in Tanzania the effects of the crisis had already noted in various sectors includingtourism, mining and agriculture. The study also portrayed that FDIs operating in Financial andTelecommunication services had indirectly already affected by the going economic crises. The study hadrevealed that some FDIs had retrenched their employee because of ongoing crisis and that the governmentmust take immediate action such as subsidizing investors in order for them to sustain in business during thecrisis as they provide more opportunities for Tanzanians to get more services and employment.

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THE IMPACT OF TAX LAWS ON TAX EVASION IN TANZANIA

Ayoub Phillip Mkula


This study was carried out to investigate the impact of tax laws (both criminal and civil) on tax evasion inTanzania. Specifically the study aimed at investigating the impact of penalties, fines and prosecution. Thestudy also investigated relationship between tax evasion, frequent of auditing/investigation and tax laws.

The work undertaken was of a phenomenological nature and most of the data were obtained throughoral interviews and a few respondents answered the questionnaires. Both primary and secondary datawere used in this study and they were analyzed.

It has been found that, laws are not fully enforced due to less/infrequent auditing/investigation, irrationalpunishments, few convicted and majority fears punishment. Also poor litigation preparation increase evasion.

The resultant knowledge developed through this study will benefit TRA, Ministry of Finance and theGovernment as a whole.

The study recommends on changes on tax collection/evasion policies, recurrent auditing/investigation,rationale punishments, proper litigation preparation and modernization to cope with vast technologicalchanges.

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THE ROLE OF COMPUTER TRAINING ON INFORMATION SYSTEMS USAGE INGOVERNMENT DEPARTMENTS AND AGENCIES

The Case of Ministry Of Lands, Housings and Human Settlements Development

Frank Shame


This study attempts to understand the situation of computer based information systems usage in governmentdepartments by focusing on the existing skills of user in relation to ICT utilization. The study investigated onhow formal computer training can play a positive role in the success of computer based information systems

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implementation and sustainable usage of those enabler tools within the government department’s context.Put in consideration that almost all government department’s posse’s similar organizational characteristics,this research selected one government department (Ministry of Lands, Housing and Human SettlementsDevelopment) as a case study.

A total of 65 Questionnaire were distributed to operational staffs in the ministry and out of them 60 wasfilled and returned back. The result of study revealed that computer training among other things is one ofthe major factors that can determine the rate of usage and utilization of computer based information systemsin the organization

To realize the benefits of formal computer training it was therefore recommended that the computertraining (courses) should be taken as continuous process within the organization in order to ensure that allthe time staff are conversant in using and manipulating the unlimited capabilities of computers and also asinternal stake holders being more effective in contribution in designing and developing computer basedinformation system within the organization.

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ASSESSMENT OF ORGANIZATIONS INFORMATION SECURITY PRACTICE ANDMANAGEMENT IN TANZANIA

The Case of Medical Stores Department

Pascal Pastory

Master of Business Administration (Management Information Systems), November 2009

The main objective of this study was to assess the state of organizations information security practice andmanagement in order to ascertain the effectiveness of information security practice in organizations operatingin Tanzania. The assessment was based on adequacy of top management support, documented andimplemented security policy, risk assessment and security awareness and training.The study constituted a sample size of 82 respondents from Medical Stores Department as a case studywhereas descriptive analysis through SPSS was used in data analysis. The study established that effectiveinformation security practice and management depends on adequate top management support, the adequacyand effective implementation of ICT Security Policy, regularly risk assessment and adequate informationsecurity awareness and training. The analysis concluded that there are weaknesses in implementation ofICT Security Policy and regular risk assessment, whereas security awareness and training is moderatelydone. The analysis further revealed that organizations receive fairly good support from top management.

Analysis of the data and testing of hypotheses showed that effective information security practice andmanagement has been moderately implemented in organizations leading to a conclusion that organizationsoperating in Tanzania need some improvement in the areas of information security policy, risk assessmentand security awareness and training.

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EFFECTIVENESS OF TANZANIAN TRADE UNIONS ON PROTECTING EMPLOYEESRIGHTS IN MANUFACTURING INDUSTRY

A Case of Mwanza Textile Mill (2001) Limited

Ernest Leonard Masanja

Master of Business Administration (Human Resource Management)

The purpose of this study was to investigate effectiveness of Tanzanian Trade Unions on Protecting EmployeesRights in Manufacturing Industry; taking the case of Mwanza Textile Mill (2001) Limited, in MwanzaRegion. The objectives of the study were to determine the factors affecting Trade union effectiveness inMWATEX; to assess the nature of leadership of the trade union and management in MWATEX; and toassess type of stratifications and bargaining power of the trade union in MWATEX.`The study sample comprised 60 respondents drawn randomly from the field. These were 3 managementstaff, 8 trade union leaders and 49 employees of MWATEX. Data collection methods included interviews,questionnaires, observation and documentary review.

Findings revealed that lack of employees’ involvement, illiteracy, unfair treatment and abusive acts,corruption allegations, poor relationships, unrecognizing and the trade union distrust; were among thefactors that affected the effectiveness of Tanzanian trade unions on protecting employees’ rights.

Our study recommends that there should be maximum protection of employment rights by all parties:the management, trade union (TUICO), union members at workplaces, and the government.

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FACTORS AFFECTING TANZANIAN LOCAL GOVERNMENT AUTHORITIESPERFORMANCE APPRAISAL PRACTICES

The Case of Ilala Municipal Council, Dar es Salaam

Lazaro Mawingo


This study was aimed at investigating factors affecting Tanzanian local government authorities’ performanceappraisal practice. The study was carried out in Ilala Municipal Council in Dar es-Salaam region. A sampleof 80 respondents was selected for the study. A simple random and purposive sampling was used to selectthe respondents. A total of 10 questionnaires were distributed to the heads of departments of the counciland 70 questionnaires to other employees. Methods of data collection were interviews and documentarysources. Statistical package for social scientists (SPSS) was used to process data where the primary datathemes and patterns emerging from responses were identified and secondary data themes and categorieswere recorded in number to determine the adequacy of consistency and similarities of the informationaround the study objectives.

The findings of the study revealed that the majority of employees’ were aware of performance appraisalpractice carried in their council but inconsistence was noted in implementing and monitoring the top council

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management for they provided little support to the programme. Therefore, it is recommended that, forperformance appraisal to be more effective employees and their supervisors should be trained and thatmanagement should provide full support to the programme. Subordinates should be provided with enoughequipment and funds for implementation of the programme.

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CUSTOMERS’ PRODUCT KNOWLEDGE AND KNOWLEDGE BASED STRATEGIESFOR COMMERCIAL BANKS IN TANZANIA AND MALAWI

Justice Yawunthu Mhango Khimbi

Master of Business Administration (Marketing)

The main purpose of the study was to assess the use of Customers’ Product Knowledge in developingKnowledge based Competitive Strategies for Commercial Banks in Tanzania and Malawi. In the midst ofstretched out competition within the commercial banks operating in dynamic and uncertain businessenvironment, a number of customers lost business confidence and trust in some banks. The objectives ofstudy were to determine the levels of Customers Product Knowledge (CPK) considered sufficient inmaking products or bank choices and to analyse how banks leverage CPK with Banks Core Competencies(BCC) in creating a value adding strategy.A survey was conducted on 250 respondents through a structured self-report questionnaire and on 4 bankofficials through in- depth interviews in order to collect quantitative and qualitative data. The findingsrevealed that customers used more of functional than psychological consequences, more of concrete thanabstract attributes and more of terminal values than instrumental values of CPK levels. Having a higherlevel of knowledge on some products and lower levels in other products was not adequate evidence tostate that customers effectively used the CPK levels in the selection of bank products. Using the KruskalWallis Test, the results show that there was no difference in how customers rated the use of CPK inselecting and choosing bank products and services.

The conclusion is that the use of CPK when leveraged with BCC provides the opportunity to developknowledge based competitive strategies (KBCS). It is recommended that future studies be undertaken tomeasure relationships of CPK with specific BCC related to bank performance, also to extend the study tocommercial banks in other countries.

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THE EFFECTS OF TOTAL QUALITY MANAGEMENT (TQM) ON POULTRY FEEDSCOMPANY’S FINANCIAL PERFORMANCE

The Case of Four Poultry Companies in Tanzania

Linje Lucas


The main objective of this study was to investigate the effects of Total quality management in the poultryindustry financial performances to the Organizations which deal with poultry feeds manufactures. The aim


was to see whether the TQM concept is beneficial to the poultry feeds companies and whether it improvesthe financial performance of the poultry companies, Some four selected poultry companies was taken asthe sample because these companies have many features that represents most of the local and internationalcompanies and poultry companies operating in Tanzania The research uses several methods of the researchdesign to obtain the necessary and required qualitative and quantitative data. Both primary and secondarydata were collected and analyzed. Proportional’s was developed from the study in line with literaturereview. The study compared the financial performance of the poultry companies for two different periodsthat’s before the adoption of TQM concept and after adoption of the concept.

The results obtained from the study showed that the Total quality management (TQM) conceptimplementation has a greater influence on the financial performance of the poultry feeds companies. If wellimplemented can lead to growth of the revenue, profits, grow sales, liquidity and Business growth of thecompany and improve in the quality of the products and services.

This study concluded that TQM within the poultry companies has a greater impact on the financialperformance if well implemented. The results are expected to encourage poultry feeds companies andother companies that have not embrace TQM concept to do so and expect to achieve good results. Theyshould be however, link the results to the objectives of adopting such a strategy in order to measure thecontribution.

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EMPLOYEES’ PERCEPTION ON PROMOTION PRACTICES IN TANZANIAN PUBLICSERVICE ORGANIZATIONS

A Case of Ministry of Health and Social Welfare

Michael Silas Ogwari John


The purpose of this study was to assess employees’ perception on promotion practices in Tanzanian publicservice organizations. Several studies have shown that positive employees’ perception on promotion practicescreates employees trust in an organization’s management which has a great impact employees’ performanceimprovement and consequently the achievement of organizational goals.

Data was collected from 75 respondents of Ministry of Health and Social Welfare (MOHSW) throughself administered questionnaires. Other sources of data were from documentary reviews and observations.Purposive sampling technique was used in order to get respondents who have been exposed to promotionpractices such as heads of sections, heads of departments, and human resource officers who have knowledgeof promotion policies and practices.

The findings of the study revealed that most employees prefer promotion based on performance andnot on longevity of service which is the current practice. The findings were consistent even after controllingrespondents’ demography such as age, sex, length of service, and level of education. It was also found outthat some negative employees’ perceptions towards promotion practices were due to lack of employees’awareness on promotion practices as a result of poor communication between organization’s managementand employees.

The study has recommended that MOHSW should promote its employees based on performance andshould improve communication between its management and employees to enhance them with positive

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perception on promotion practices. This will lead to employees trust in the organization’s managementwhich has a positive impact on employees’ commitment, performance, organization citizenship behaviour,and achievement of organizational goals.

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THE CONTRIBUTION OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ONBANK PERFORMANCE

The Case of CRDB Bank Limited

Bruce Mwile


The main objective of this study was to assess the contribution of CRM concept implementation in a banktowards improving the bank performance. The aim was to see whether CRM concept is beneficial tobanks and whether it improves the performance of a bank. CRDB Bank Limited was taken as the casestudy because it has many features that represent most of the local and international banks and financialinstitutions operating in Tanzania.

The research used the case study design to obtain necessary and required qualitative and quantitativedata. Both primary and secondary data were collected and analyzed. Propositions were developed fromthe study in line with the literature review. The study compared the financial performance of the bank fortwo different periods that is before and after adoption of CRM concept.

The results obtained from the study showed that Customer Relationship Management (CRM)implementation has a great influence on the performance of the bank. If well implemented leads to growthin loans, deposits, revenues, profits and quality of loans improves.

The study concluded that CRM within a bank has a great impact on the financial performance if wellimplemented. The results are expected to encourage banks or organizations that have not embraced CRMconcept to do so and expect to achieve good results. They should however, link the results to the objectivesof adopting such a strategy in order to measure the contribution.

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MANAGEMENT OF OBSOLETE MATERIALS IN PUBLIC INSTITUTIONS

The case of Tanzania Electric Supply Company Limited

Mattambo Harun Rajab


The research was exploring on the Management of obsolete material in public institutions. I was moved toconduct this study on the basis of the increase in the problems emanating from the increase in the level ofobsolete material in public institutions. My concern was not only in the money that is tied up in the materialsthat have been rendered useless but also in terms of the costs that are attached to these materials. The


research is designed as a case study and it is a deceptive research. The data were collected using thequestionnaires dispatched to the sampled respondents located at Head office, and in regional offices ofDare es Salaam where more than 60% of the procured materials for the operations are utilized. Theresearch has four major findings:a)The study has revealed that Management of obsolete material means coordination among the interested

parties b) strengthening of Procurement Planning as an assurance in the management of obsolete material,c) need for procurement ethics to preempt chances of procuring material of poor quality due need to

safeguard personal ends. Lastly there is a need for control of material specifications to enhance chancesof getting the right materials.

The noted conclusion of the study provides an insight on how properly to manage the obsolete materials inthe public institutions, which poses a big challenge in the overall management of assets. It is recommendedthat for a positive result there is a need for implementation of a team work, openness and ensures properprocurement planning.

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FACTORS INFLUENCING COSUMER BRAND CHOICE AND PURCHASINGDECISION MAKING PROCESS

The Case of Bottled Drinking Water Tanzania

Danford Ahadson Sanga

Master of Business Administration (MBA), November 2007

The overall objective of this study was to assess the attributes that influence the customers in buyingbottled drinking water in Tanzania. Rather than trying to understand all the various decision making criteriainvolved in brand choice and the buying decision process, we focused solely on seven attributes andexamined what percentage of each attribute contributes to the final decision including. Price, Brand,Corporate image and Packaging elements (package color, package shape, further usage package andpackage size).

The study findings suggest that price as well brand have got strong influence towards customers brandchoice and purchasing decision process making, this implies that bottled water manufacture and marketershould put more weight on these factor when designing their brands product. Research findings reveled also that price and brand attributes do not stand alone on influencing customerof bottled water in their buying decision process. Packaging elements (i.e. package color, package shape,further usage package and package size) and corporate image attribute go hand with hand on influencingcustomer brand choice and purchasing decision making process.

Bottled companies should understand consumer needs and wants and all market efforts toward bottledwater consumer by considering above attributes. The study also revealed that customer characteristics interms of sex; education level, occupation, and location develop different consumer attitudes towards brandchoice. Thus all marketing programs should address its customer need by considering of the above customercharacteristics

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525UDBS

THE ROLE OF ADVERTISING ON CONSUMER BUYING DECISION IN TANZANIA:

The Case Study of Coca Cola Kwanza Limited

Salome Stephen Manyama

Master of Business Administration (Marketing), November 2007This study examined the buying behavior of Tanzanian consumers on Coca Cola products. It was intendedto study the significance of advertising in the consumer’s decision to purchase Coca Cola products. In thisstudy, consumer behavior relating to their buying decision namely, brand personality, individual perception,beliefs and attitudes were used for analysis. In order to achieve this study, a field research was undertakento obtain statistical information from a convenient sample of 120 respondents through questionnaires.Literatures indicate that advertising influence consumers’ buying behavior through brand personality,perception, beliefs and attitudes. However, findings of this study indicate that there is very weak relationbetween advertisements and brand personality creation, perception, beliefs and attitude.

The advertisement has been proved to be powerful tool in sending message regarding the product aswell as influencing customers on their decision to purchase the products. The study has found that advertisingthrough television is more effective than through other media in influencing decision to purchase Coca Colaproducts.

The study recommends that Coca Cola Kwanza Ltd should strive to design advertisements which fitwith Tanzania cultural environment. They should combine the three factors culture, entertainment andinformation in order to be effective and viSustainable. Their advertisements should also cover some of their products which are not currently coveredin order to increase number of consumers for these products.

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AN ASSESSMENT OF THE ADOPTION OF THE INTERNATIONAL FINANCIALREPORTING STANDARDS IN SMALLAND MEDIUM ENTERPRISES IN TANZANIA

Remi Polini Urio


This study assessed the adoption of International Financial Reporting Standards (IFRSs) by Small andMedium Enterprises (SMEs) in Tanzania. It assessed the readiness of SMEs in Tanzania in adoptingIFRSs, the capacity of Small and Medium Practitioners (SMPs) in facilitating adoption and complianceand the role of the National Board of Accountants and Auditors (NBAA) in supporting SMEs to quicklyadopt and comply with the IFRSs. Purposive and random sampling procedures were adopted to select30 SMPs and 60 SMEs respondents in Dar es Salaam city. Semi-structured questionnaires consisting ofboth closed and open-ended questions were used. Findings were processed using Statistical Package forSocial Sciences (SPSS), analyzed, summarized and presented in tables and graphs.


Results established that, majority of SMEs have adopted the IFRSs after getting assistance from theconsultants or external auditors. Lack of training and guidance on the application of the standards, lack ofawareness on the importance and advantages of the IFRS, high cost and complexity of the standards arethe constraints that hinder SMEs from adopting IFRS.

The NBAA should review its decision on full-scale adoption of IFRSs for SMEs in order to makeadoption of IFRS mandatory for only the entities with public interest. It should also prepare user guidance,conduct sensitization and application training, translate the standards into simpler language and providethem at subsidized prices.

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RELATIONSHIPS AND CUSTOMER RETENTION FOR TANZANIAN FERROUSFOUNDRIES AND ROLLERS

Numwagile Ambikile Mwaijumba


Manufacturing companies in search for new approaches to retain customers are increasingly using relationshipmarketing management as a means of retaining customers. The objective of this research was to studyapplicability of relationship marketing in Tanzania’s ferrous foundries and rolling mills to raise switchingbarriers and create customer longevity. The study also examined how relationship marketing influencesbusiness performance in ferrous foundries and rolling mills.

First, the study reviews the concept of relationship marketing and its association with businessperformance, leading to development of two hypotheses. Measurements of relationship marketing,satisfaction, and customer retention were operationalised into simple statements called “items” groupedtogether to form inventory or survey instruments. The five-point Likert scale was used to measure Managers’/Directors’ experiences and specify their agreement level to each of a list of statements. The five responsecategories represented an ordinal level of measurement. Reliability and validity of the scale were brieflydescribed to provide readers the background for data analysis. Then, several stepwise chi-square analyseswere performed to test the hypotheses.

Findings indicated that relationship marketing is applicable and is of great importance in the Tanzania’sferrous foundries and rolling mills. Relationship marketing and customer retention are directly proportional(they go in the same direction). Therefore, this study has highlighted the importance of establishing acustomer relationship strategy through relationship marketing management so as to foster customer retentionto Tanzania’s iron stakeholders.

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527UDBS

PERFORMANCE OF POST COMPLETION AUDIT OF CAPITAL PROJECTSUNDERTAKEN BY THE GOVERNMENT OF TANZANIA

The Case of Ministry of Agriculture, Food Security and Cooperatives (MAFC)

Charles Joel


This study was aimed at focusing on the performance of capital projects made by the Government ofTanzania, Ministry of Agriculture, Food Security and Cooperatives (MAFC) as the case study. This is dueto the fact that projects face problems like time and cost overrun, projects resulting to less than intended orexpected output and a resultant substandard quality.The data were collected using interviews, secondary data and questionnaires. One set of questionnaireswas administered to internal auditors and accountants of projects and those of the ministry and externalauditor from the National Audit Office. The other set was administered to seniors in the project, whoinclude project coordinators and Project’s senior accountants.

The findings of the study indicate that the targets/objectives are not met; some of the targets for theprojects are not quantifiable, such that extent of variance can not be established reliably. The reviewreports have been found out to be leading to corrective actions, whereas, management inefficiency, amongothers, to be a factor for non achievement of targets.

It has been recommended, to establish the physical outcome of supported projects and, among others,to increase involvement of more qualified and with more technical expertise personnel at district levels soas to minimize lateness of reports and provide more accurate data, which is significant input for sounddecisions.

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ASSESSMENT OF FINANCIAL PERFORMANCE OF MICRO FINANCEINSTITUTIONS IN TANZANIA

Martha Losindilo

Master of Business Administration, September 2009

The problem behind the need for this study was the use of a more effective multivariate method in assessingthe financial performance of micro finance institutions in order to avoid the ambiguity and often incorrectnessproblem inherent in most univariate models.

The study was carried out to assess the financial performance of micro finance institutions in Tanzaniaby using the Altman’s Z score model. Pure secondary data were extracted from auditing firms and librarydocumentaries for each institution and were run in the Ms Excel for calculations of the respective Z-scoresusing the Z”- score model designed for privately owned service firms. Through the cut off points specified


by the model, each firm’s performance was classified as either financially sound or financially distressedover the six years period.

The findings indicated that, some of the firms were financially sound all over the period under reviewexcept for minor and major reductions in the overall financial strength in some years. Others had experiencedboth financial soundness and distress in different years.

It was finally concluded and recommended for the firms to find alternative, external sources of finance;put in place low cost and tailor- made delivery systems and look at domestic resources instead of relyingentirely on international donors, for promoting financial self- sufficiency and reducing costs of operations.

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IMPACT OF MICRO FINANCE ON POVERTY REDUCTION IN TANZANIA

A Case Study of SIDO in Ilala District

Badi Mnenwa Lwidiko


Poverty is enemy number one within our country and other parts of the world. A number of strategies havebeen designed to enable its total alleviation in the country and the world at large. A country with poorpeople has low economic growth, but people with strong economic power will guarantee a high economicgrowth rate of the country.

This study sets out to investigate the Impact of Micro Finance on Poverty Reduction in Tanzania, usingthe case study of SIDO in Ilala District which disburses loans to small and medium enterprises throughoutthe whole Country. Data for the study were collected between April to May 2007 from 30 clients ofSIDO, from two districts, Ilala and Temeke.

Survey information collected by the study indicates that in order for the business to grow it needs morecapital, training, lower interest rates and a reduction of different charges without forgetting a conduciveenvironment for business operations. It is difficult for a poor country to benefit from micro finance if theenvironment is not conducive; otherwise the credit system is looked at as the means of distributing incometo the poor.

Throughout the study various weaknesses were identified that need both the institutions and thegovernment together to resolve in order to achieve poverty reduction through the Micro finance scheme.

Furthermore, the study revealed that, although loans from SIDO is for poor people who have notangible assets and it was set to cater for them, the programme does not follow those principles. Theamount of money clients receive is too small to boost the growth of their business and so the institutionneeds to get more seed fund in order to enhance business growth. Changes in the programme’s operationsneed to take place because a comparison of SIDO loan borrowers and non borrowers indicated that thereis no significance difference, which means that the loan did not help much and something was needed tosupplement the loan. If changes were made, SIDO loans would be a more effective tool in the effort toalleviate poverty.

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529UDBS

EVALUATION OF THE PUBLIC-PRIVATE PARTNERSHIP STRATEGY IN DEVELOPINGCOUNTRIES

The Case of Tanzania International Container Terminal Services Limited

Wang’eng’i Chacha


This study sought to evaluate Public Private Partnership strategy in improving performance of formerlyowned public enterprises (The Case study of Dar-es-Salaam Container Terminal). The study was conductedthrough secondary data collected from Dar-es-Salaam Container terminal basing on its performance forpast thirteen years from 1992 to 2005, whereas year 2000 was considered to be a base.

Due to nature of the research questions and objectives of this study, the researcher used case study asa research strategy whereby both qualitative and quantitative research approaches were employed.Results of the study show that there was an improvement in performance under the private operatorcompared to previous parastatal operations. It was revealed that the private operator was able to meetset targets set and even surpassed those targets, overall increase in the quality of services to port users andsignificant growth in movement of containers in port such that they improved customer relations. Howeverit was revealed that DSM Port’s performance was still lagging behind compared to other ports like MombasaPort in Kenya and Port Louis in Mozambique. .

The study recommends that whether or not African governments decide ultimately to follow the PPProute for any or all sectors of infrastructure and service provision, principles that underlie PPPs such asaffordability, cost effectiveness; value for money, transparency and risk management should form part inthe way that they approach service delivery in general. There is a need for Tanzanian government to forma PPP unit, which will be equipped with professionals signing projects.

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IMPLEMENTATION OF SECTOR WIDE APPROACHES (SWAPS) IN TANZANIA:LESSONS & EXPERIENCES

The Case Study of Health Sector

Justin Bimbiga


Due to inconsistency between donors’ systems, implementation of the financial aspects of SWAPs, remainproblematic. The objective of this study was to assess the implementation of the agreed financial aspects inpractice, to see if implementers of SWAPs discharge in accordance with MOU and to see whether the


AIS in place provide relevant and reliable financial information useful for managing and monitoring sectorsactivities. The researcher used multiple sources of data for this study including questionnaires, selecteddocuments and interview.

The findings includes; inaccuracy reports and delays in generation, lack of some important internalapplication controls, lack of the Professional Program Accountant at central level, Complexity of the Chartof Accounts, HSCBF reports found with double payments to suppliers, ineligible expenditures, missingsupporting documents, lack of accountabilities. From these facts the financial reports of HSCBF to someextending were less useful, with questionable relevance and reliability.

Conclusion: The findings of this research give us substantial evidence to conclude that, the soundnessof the SWAPS financial information system is below average, and the implementers do not adhere to someof the laid down procedures.It is recommended that the Ministry of Health has to acquire software to supplement the Epicor for theconsolidation of the country wide transactions. Hire or employ the Professional Accountant to improve theAIS, and update the accounting Manual. The Program Accountants should be coached and trainedregularly on the AIS.

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GOVERNMENT EXPENDITURE AND POVERTY REDUCTION IN TANZANIA

The Case of Bagamoyo District

Thomas Uiso


The objective of this study was to investigate the extent to which government expenditure has reducedpoverty in Tanzania. More specifically, the study investigated how important are education and healthsectors in poverty reduction. The study also identified the existing relationship between total expenditure inrelation to the aforementioned sectoral expenditures. The results from this study suggest that an increase ingovernment expenditure allocated to health and education has positive impact on poverty eradication. Thecorrelation shows the negative and strong relationship between expenditure on both health and educationon poverty reduction as proxy by proportion of population below the poverty line. Although an increase inexpenditure on health significantly reduces infant mortality rate, it has no impact on life expectancy. Thetrend of expenditure on education, health and development were in line with an increase in total governmentexpenditure.

The study recommends that, in setting targets for government expenditures, the government must adoptpolicies that encourage expenditure on education and health sectors. The government should also allocatemore of its resources to public investment in the development issues to supplement other sectors that haveimpact on poverty reduction. Despite the limitations and shortcomings encountered, in general, the findingsindicate that in Tanzania, government expenditure has an impact on poverty reduction, with the implicationthat policies adopted may draw from the empirical evidence presented to enhance this role. This will thusbe a useful guideline to policy makers when deciding on expenditure allocation and rationalization.

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531UDBS

THE EFFECT OF ELECTRONIC BANKING ON RISK MANAGEMENT IN BANKINGIN TANZANIA


Rose Furahini


The introduction of Electronic Banking (e-banking) has created many benefits in banking industry but atthe same time, it has brought some risks. This research analyzes the effect of e-banking on risk managementin banking in Tanzania

The case study method was used through sampling of respondents from CRDB Bank Head Office andits 9 branches in Dar es Salaam Region. The primary data was collected by using questionnaires whichwere administered through interview, while the secondary data was obtained from various CRDB bankdocuments and its website. Data collection was validated through interview, documentation and observation.Analysis of data was done quantitatively and qualitatively.

This study has established that the introduction of e-banking has increased the banking risks in Tanzania.However, banks profitability has been increasing due to fast and reliable services offered by e-bankingwhich lead to lower reputational risk. The available control measures for e-banking are effective but notsufficient to manage continuing emerging risks. In order to manage the risks associated with e-bankingactivities, the banks should apply additional control measures which are recommended in this study.

This study recommends the use of biometric control as an additional risk measure to authenticate userssince it is more reliable. It also recommends the banks to use appropriate measures to preserve confidentialityof the key banking information. New areas for further research are suggested.

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FACTORS INFLUENCING CUSTOMER RETENTION IN THE MOBILE PHONEINDUSTRY IN TANZANIA

Edwin J. Riwa,


The study aimed at examining factors, which contribute to customer’s retention in the mobile phone industryin Tanzania. It involved two mobile phone companies in Tanzania (Vodacom and Celtel). Both qualitativeand quantitative methods were used to generate data. A sample of 137 mobile users was involved in the study. Three variables, namely technological advancement,non marketing mix variables and positioning strategies were examined. The result indicated that those


variables were important in determining customer retention. Non marketing mix variables namely, theinfluence of family, friend, and the influence of employer are equally strong in attracting and retainingcustomers. The influence of technological advancement i.e. the ability of the mobile phone company toincrease value added to the service provided also attract in retaining the existing customers. The studyfurther found that each mobile phone company is trying to position itself in order to capture the market withapplication of positioning strategies which are applied by both companies. The study has deepenedknowledge and understanding of the factors contributing customer’s retention in the mobiletelecommunications. It was concluded that non marketing mix variables, technological advancement aswell as positioning strategies are important factors which influence mobile customer’s retention.

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A STUDY OF MARKETING FACTORS INFLUENCING THE PERFORMANCE OFDOMESTIC WILDLIFE-BASED TOURISM

The Case of Tanzania

Yusuph Shabani


This research was an attempt to study marketing factors influencing the performance of domestic wildlife-based tourism in Tanzania. The study specifically intended to assess whether the tourism product designand number of tourism activities influence the domestic tourist’s decision to take a wildlife tour in Tanzania,to examine whether the tourism product advertisement and other promotional activities influence the domestictourist’s decision to take wildlife tour in Tanzania, to ascertain whether tourism product pricing decision interms of special price offers influences the domestic tourist’s decision to take a wildlife tour in Tanzania.Self-administered questionnaires were used to collect data from domestic tourists visiting Tanzania’s potentialwildlife places which were analysed by using SPSS. Statistical tests were carried out by Chi-square andRegression analysis. The findings of the research revealed that marketing factors (tourism product designand number of activities, tourism product advertisement and other promotional activities and tourism productpricing decision in terms of special price offers) exert a significant influence on domestic tourist’s decision’sto take a wildlife tour in Tanzania potential wildlife places. Conclusively, it is evident that this study hassignificant implications to the future marketing tourism strategy in Tanzania. Therefore, to achieve theintended performance of the domestic wildlife-based tourism market, i.e. the increase in number of domestictourists in Tanzania potentials wildlife places, the country’s tourism operators need to practice intensivemarketing strategies to influence domestic tourists to take wildlife tour .

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533UDBS

THE LOCAL GOVERNMENT REFORM PROGRAMME AND BUDGETTRANSPARENCY IN DISTRICT COUNCILS OF TANZANIA

The Case of Bagamoyo District Council

Dome Philip Malosha


Local Government Authorities were re-introduced in Mainland Tanzania in 1984 because of poor qualityof services which were provided to the public by the Government. In 1998 the Government introduced theLocal Government Reform Programme (LGRP) in order to address the problems which constrained theperformance of the Local Authorities; one of the problems was lack of transparency in the budget process.Transparency of the budget process is the heart of the reform because it leads to better design and resultsof fiscal policy (Baker et al, 2002).

The study tries to establish how the Local Government Reform Programme has enhanced FiscalTransparency in District Councils. The researcher has taken a case study paradigm by looking into theoperations of Bagamoyo District Council.

This case study has been conceived to address the issue of transparency of budget process within thecontext of the Local Government Authorities in Tanzania. The findings are very interesting; the study hasrevealed a low rate of awareness on the reform program especially for rural residents. Also the DistrictAuthority is too much dependent on Central Government allocations; as a result the District budget isunrealistic due to a high rate of budget deviation. These findings are likely to instigate a review in the entirebudgeting process of Local Authorities. The researcher is recommending that, the District Council shouldbuild the capacity to generate adequate resources in order to be independent. Inadequacy of resourcesnegatively affects the transparency of budget process.

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ASSESSMENT OF NON-BANKING INSTITUTIONS’ ROLE IN FACILITATINGHOUSING FINANCE IN TANZANIA

The Case of NHC and NSSF

Lilian Mwesigwa


Tanzanian Government has been making efforts to solve housing problem since pre independence era.However, till now there is no formal system of housing finance in the country. Only few banks have mortgagefinance products. This study was assessing the role of non banking institutions in facilitating housing financein Tanzania.


The main objective was to study the practices of non banking institutions in facilitating housing financeand identifying their potentials and challenges. Being a case study research two case studies NHC andNSSF have been selected. The study was exploratory one and therefore used quantitative and qualitativeapproaches in analysing primary data which were supplemented by secondary data to come out with anumber of findings. It was revealed from the study that investment in residential property was viable; NHCand NSSF facilitated housing finance through, establishing housing schemes, making housing loanarrangements, residential property development fund mobilization and collateralization of longterm leases.However, NSSF and NHC have failed to satisfy low income earners. The study also determined thepotentials and challenges the institutions faced. It was concluded that Non banking institutions are verypotential in facilitating housing finance, the potential which are yet to be fully utilized. There is therefore aneed for all stakeholders in housing finance in Tanzania to be involved in ensuring housing finance is successfulin the country. The study recommended on a need for utilization of potentials the institutions possesses andcreation of better environment for both banking and non banking institutions to work better. Lastly areasfor further research have been provided in this study

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AN ANALYSIS OF THE SOCIO-ECONOMIC IMPACT OF THE PUBLIC PRIVATEPARTNERSHIP IN TANZANIA

Mbogo Alexander Munubi


This study examines the socio economic impact of PPP in the context of Tanzania. The focus was on threeingredients of the socio economic impact namely: The promotion of efficiency in service delivery by lookingat the cost reduction, cost monitoring, competition and economies of scale and scope: the distributionalimpact on workers, consumers and partners: and the environmental impact of the PPP.

Data was collected using semi structured and documentary review. The collected data was validatedthrough interview, documentation and observation. Qualitative and quantitative approach was used toanalyze data. The finding of the research revealed that the introduction of the PPP in the public service wasa complete success in one out of the three organizations while the other two one had a partial success andthe other was a complete failure.

Conclusively, the study recommend that to guarantee a success in the implementation of the PPP thegovernment and the private partner should build effective regulation by developing transparent, credibleand effective regulatory agencies that are adopted to specific need the country, develop capacity at national,regional and district level and root out corruption by implementing mechanism to guarantee transparency atall stages in the tendering process.

535UDBS

FINANCIAL REPORTING CHALLENGES IN SMALL AND MEDIUM ENTERPRISESIN TANZANIA

The Case of Small and Medium Enterprises in Dar es Salaam

Gabriel Simon Sungi


This study investigated the financial reporting challenges in SMEs in Tanzania. The study was carried outby way of a survey of a sample of 50 SMEs located in Dar es Salaam and face to face interview with a fewrespondents using structured interview guide. The respondents were divided into three groups i.e. owners/managers, accountants and respondents from Tanzania Revenue authority, entrepreneurs and tax consultantsfirms.

The result of the study revealed that financial reporting in SMEs in Tanzania is very poor and do notcomply with accounting standards. Secondly it was found that there are weak accounting controls inSMEs and thirdly the use of professional accountants in SME is very limited due to high costs of recruitingand maintaining them. Thirdly, owner/managers did not seem to make use of financial records in makingdecisions. Additionally, payable tax for almost all the sampled SMEs was not based on booked profitssince the current TRA tax regulations requires only companies with a turnover of more than twenty millionshillings to produce audited financial statements together with tax returns.

The researcher recommends that all the stakeholders for SMEs, that is, the Government through theSME department in the Ministry of Industries, Trade and Marketing, development partners, and businessdevelopment service (BDS) providers embark on a strategy that will encourage and facilitate SMEs tokeep good financial records. Good financial records are helpful in making sound financial decision andalso in protecting assets from theft and mismanagement. NBAA may also help by facilitating the designingof a simple accounting system that is suitable for small businesses..

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FACTORS INFLUENCING IMPLEMENTATION OF HEALTH AND SAFETY MEASURESIN WORK ORGANISATIONS

The Case of Kiwira Coal and Power Company Limited

Isaac Samuel Mamboleo


The study investigated the influences and effects of good health and safety practices in work organisations,and Kiwira Coal and Power Company Limited as a case study. More specifically the study intended tohighlight on the most frequently occupational hazards, assess relationship between good health & safetypractices and frequency of occupational hazards and identify factors influencing implementation of goodhealth and safety practices. The study was of particular interest given the evidence that people in work


organisations face disproportionately increased risks of work related injuries. In order to carryout thisstudy, data were collected using questionnaires, interviews and documents. Physical observations ofthe mine were also used to gain insight of the health and safety

The study results indicated that occupational hazards exist in coal mining operations. The study highlightedon the frequently occurring occupational hazards and concluded that activities such as coal mining were thesource of occupational hazards and accidents were mostly frequently occurring. Training, managementsupport, employer-employee relationship, involvement of trade union and inspection were the influencingfactors for implementation of good health and safety practices, and inspection on other part of regulatorywas the most important influencing factor. The study further concluded that relationship existed betweenimplementation of good health and safety practices and frequency of occupational hazards.

The study recommended that the standard of inspections particularly of underground mine, shouldunder no circumstances be allowed to deteriorate. Research on behavior of rocks in different miningdistricts was recommended as the mine has a unique situation with regard to strata, characteristic of coaland accumulated complexities.

THE CONTRIBUTION OF BANKS IN THE SUCCESS OF SMALL BUSINESSES INTANZANIA

The Case Study of CRDB Bank Ltd.

Oswald Henry Kweka


This study investigate the roles Commercial Banks in development small businesses in Tanzania, CRDBBank Ltd, a locally registered bank with a network of forty five branches and three agencies with at leastone in every region of Tanzania mainland was used as a case study. The contribution of Banks in thesuccess of small business in developing countries such as Tanzania has not been exploited enough tomaximize the benefits of small and Medium Scale Enterprises (small businesses) that can reap especiallyon the matters related to bank services offered by commercial banks. Banks contributions can be crucialto the development and growth of the former. Commercial Bank-firm relationships can generate positivereturns to both parties involved in the relations.

The study employs the use of primary data, collected from interviews with bank officials and smallbusiness owners who are customers of the bank. The study has been restricted to Dar es Salaam regiondue to constraints of funds and time.

The results of the study show that there is a poor interaction between banks and their small businessclients in building effective relationship. The bank in one hand creates poor foundation for creation of suchrelationship which can be measured by given advice to their small business clients on services they offer.On the other hand, inadequate consumption of bank services and poor level of activities in consumingthese services by small businesses does not guarantee commercial banks to invest into the relationship. Ingeneral terms, we can conclude that there is a need for both parties to build it for benefit of all of them.

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537UDBS

BUSINESS PROCESS RE-ENGINEERING IMPLEMENTATION EFFORTS INDEVELOPING COUNTRIES

A Case of UNDP Tanzania

Illuminate Rutageruka Maerere

Master of Business Administration, May 2007

The main objective of this research (study) was to evaluate the various factors attributable to implementationof the business process reengineering (BPR) as an important strategy for internal transformation aimed toimprove its capacity, efficiency and accountability in UNDP country offices, UNDP Tanzania being one ofthem.The study used a structured questionnaire to gather data from a sample of 100 staff members of UNDPTanzania and other UN agencies operating in Tanzania. The study also employed simple frequencies in theanalysis of descriptive part of the research. Pearson Correlation and Regression analysis were used intesting the hypothesis developed from a conceptual model.

The study reports that UNDP was able to achieve success in the implementation of BPR. The studyreveals the importance of the organizational support in implementation of BPR. Top management mustvisibly demonstrate its full support and commitment to the BPR implementation at the outset, througheffective planning, control and communication mechanisms. The study further found that organizationalsupport plays of a pre-condition for the other factors. When the organizational support is high, the degreein respect of productivity, financial performance and quality of services is also higher.

The study concluded that implementation of BPR should be dynamic and it is important to emphasize,that through the process the actions and the value of them should be reviewed so that corrective measurecan be taken if something doesn’t work.The study recommends that successful implementation of large-scale information systems requires enoughfunding for the project from the beginning to the end.

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PERFORMANCE MANAGEMENT AND MOTIVATION OF WORKERS IN TANZANIANWORK ORGANIZATIONS

Lessons from University Computing Centre Ltd.

John Johnasy Sanga

Master of Business Administration (Human Resource Management), July 2007

Motivation of employees as human resources is poorly understood and poorly managed in our workorganizations. The main thrust of this study was to establish factors motivating employees in Tanzanian


work organizations and match the motivators with the implementation of performance management. Giventhe nature of the research problem, it was deemed fit to use the case study method because of the need fora rich understanding of the problem in context and the need to relate some motivational theories to workpractices. The study was conducted at the University Computing Centre Ltd, from which the researcherbelieved that data would be a fair representative of the entire ICT industry in the country and other Tanzanianwork organizations in general.

The findings from analysis of the current situation of UCC’s HRM in general, and motivation policy inparticular, have confirmed to the researcher that HRM programmes are poorly designed and implemented.In principle, however, almost all key HRM programmes are in place but what is lacking is good design andeffective implementation.

Each organization has a unique human resource situation, reflecting its stage in the relevant industry.Accordingly, there is no overall blueprint on how to best improve worker motivation. However, establishmentof an independent HRM department is recommended for all organizations and UCC Ltd in particular. Thiswill be responsible for effective development and implementation of HR Policies, which include but notlimited to Orientation; Training and Development; Remuneration, Performance Appraisal policies. Theinvolvement of employees in the development of the said policies is strongly recommended.

For UCC to have an improved motivation policy, it is highly recommended that equitable remunerationschemes should be designed and implemented. Employees’ capabilities and performance should beconsidered in designing reward schemes. It is also important that the company appreciates employees’contribution towards accomplishment of its goals and opportunities for employees to participate in decision-making should be created. In addition, top management should provide support to HRM department byincorporating human resource plans in the company’s strategic plans.

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BANKING SECTOR REFORMS IN TANZANIA AND THEIR IMPACT ON THEQUALITY OF CUSTOMER SERVICE IN COMMERCIAL BANKS

The Case of CRDB Bank Plc, Azikiwe Branch, Dar es Salaam

Andrew Germanico Omary Mazwile

Master of Business Administration (Finance) November 2009

The main objective of this study was to examine whether bank reforms in Tanzania have had any impact onthe quality of customer service offered. To achieve the objectives, the Azikiwe branch of CRDB waschosen as the case. Questionnaires, interview, observation and documentary sources were employed asmethods of data collection.

The study results show that banking sector reforms have contributed to improvement in the quality ofcustomer services through provision of more reliable bank services, faster bank services, better customercare and more appealing physical facilities, among others. Improvement in the quality of customer serviceswas due to increased adoption of and use of technology, inflow of foreign capital, change in the nature ofbank ownership, and employment of qualified personnel. The findings also reveal a number of customerrelated problems like frequent failure of ATMs systems, inadequate branch network, and high service

539UDBS

charges. Some of the challenges to the provision of quality customer services include non-use of technologyfor customer service management, and network overload.

The main recommendations given for improving customer service include adopting modern technology,overcoming network overload, expanding countrywide coverage and effective staff recruitment.

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EFFECTS OF STAFF TRAINING ON LABOUR TURNOVER

The Case of Tanzania Revenue Authority

Anna Eliakunda Mndeme


Organizations train its staff as part of human capital investment for future economic benefit. In the long runthese staff quit their organizations searching for greener pastures. This leads to recruitment of new staff inturn to replace the staffs that have left. Recruited staffs are later trained to match their job requirement andtheir qualification to perform better.

This is a sample survey study conducted in Tanzania Revenue Authority Head Offices located in Dar esSalaam Region. The study relied solely on primary data collected from 50 staff whereas 47 responded toquestionnaires sent to them. Also respondents were interviewed in testing validity prior to using thequestionnaire to collect data. Data were analysed using content analysis method.

Results from the study show that staffs have sets of expectations to be met by the organisation; if theexpectations are unmet they may quit or request to be re-categorized to another job. The study concludesthat in order to retain trained staff, the organisation has to utilize skills acquired through training, increasepay package, promote trained staff and recognize employees’ effort in training. Finally the study recommendsthat organisation needs to design and manage career development programmes that use training programmesto prepare employees for promotion.

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ASSESSMENT OF THE INVESTMENT ANALYSIS TECHNIQUESUSED BY SME’S ANDTHE PRACTICES IN TANZANIA

The Case of SME’s in Morogoro Municipality

Erasmus Liberatus Fabiani Kipesha


The main objective of the study was to identify and assess the investment appraisal methods used bySMEs and the practices in Tanzania taking Morogoro Municipality as a case study. Review of the literatureconsisted of the theoretical and empirical review on SMEs perspective, SMEs failure, investment appraisalmethods used by SMEs and investment selection practices in SMEs. A case study design was used, inwhich 50 SMEs from Morogoro municipal were selected using both probabilistic and non probabilistic


sampling procedures for different purposes. Primary data was collected using questionnaire and face toface interviews from the owners/managers of SMEs while secondary data was collected from financialrecords and other related documents kept by the SMEs.

The study results indicated that, all SMEs use a particular investment appraisal method when selectingwhich investment to undertake. Most of SMEs do not use the discounted cash flow appraisal methodssuch as NPV, IRR and PI rather, they select investment basing on they are personal perception, markettrends and external attractiveness of the investment. It was observed that, the methods used by mostSMEs were not accurate and appropriate and do not take into account the time value of money, henceleading to poor performance of most of them. The study recommends that, SMEs owners/managersshould be exposed to different trainings on financial management in order to create awareness among themon how to handle financial issues.

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THE ASSESSMENT FOR RURAL MICRO-FINANCE SERVICES AND DEMAND INTANZANIA

A Case Study of Kibaha District

Maneno Andalwisye Mwakatundu


The objective of this study was to assess Micro-finance services and demand in rural areas, specifically toexamine the saving, borrowing procedures and to determine the type and significance of Micro-financeinstitutions in rural areas. The research used simple random sampling (SRS) and purposive (PS) methods.Questionnaires and documentary were used as data collection methods. The study data were drawn fromtwo villages namely Lulanzi and Mwendapole in Kibaha District. The sample comprised of 70 respondents.The study showed that, 80% of the respondents they were not aware on the conscious of the financialinstitutions that operate in their villages. About 80% of respondents said that they never borrowed fromany financial institution while 45% of mentioned the poor income as a root factor for not fascinated withcredit. 25% of respondents pointed out that there is high interest rate that charged by financial institutions.The commonest way of savings in rural areas is in the form of farm produce which accommodates 64.5%of the respondents. 75.1% of the respondents at one time or another save their income in money or cash.The emerging implication from this study is that the rural microfinance services reach few rural peoplecompared to the entire rural population. Also the provided services are less encouraging rural activitiessuch as agriculture, livestock and fisheries due to high rate of interest, short period for credit return andlack of entrepreneur skills among rural dwellers. This suggesting that the micro-finance services should bereaching many rural people and the cost, procedures for credits and savings to rural people should bereduced. The business and entrepreneurial skills should be provided among rural people for sustainableactivities.

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FACTORS INFLUENCING EMPLOYEE TURNOVER IN TANZANIA

A Case Study of Lindi District Council

Mary Ntira


The motivation for undertaking this study emanates from the existing turnover problem within the LindiDistrict Council (henceforth, LDC), where it has been observed that despite the retention efforts made bythe government and the council, the turnover has been increasing over time. The general objective of thestudy is to investigate factors influencing employee turnover in LDC. In order to achieve this objective, thestudy employed both primary and secondary data. Primary data were collected by using questionnaireswhich were distributed to a hundred employees, however, only sixty four were returned. Observation wasanother tool employed in collecting primary data. Secondary data were collected from various sourcessuch as yearly reports, office files, circulars, and strategic plan. The collected data were analyzed usingthematic analyses.

The findings suggest that managerial controllable factors such as inadequate compensation package,unequal treatment of workers, lack of employee involvement in decision making, lack of promotion, jobstress and poor working environment primarily contribute to employee turnover in LDC. In addition,demographic factors such as sex, age, education level, and working experience were identified ascontributors of turnover among LDC employees. The general implication drawn from the findings is that,the current retention strategies are inefficient. This calls for new initiative by the council to redesign HRMpolicies that will achieve positive behavioral performance and financial outcomes.

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CUSTOMERS PERCEPTIONS OF M-PESA AS A MOBILE BANKING SERVICEOFFERED BY VODACOM TANZANIA LIMITED

Dickson Elias Nyakiha


Mobile Technology advancement has made telecommunication industry to introduce more new services inorder to continue retaining and attracting new customers, these new services delivered have mixed effectson customers and practitioners. Activity in mobile payment service is now accelerating in many emergingmarkets .The market is still in its infancy , yet it has the potential to become a mass-market service .Thethrust behind the study is to assess how customers perceive the introduction of M-Pesa as a mobilebanking service by Vodacom Tanzania Limited.

In order to meet the intended objectives, exploratory research design was employed. The instrumentused for gathering data was questionnaire for randomly sampled customers who were buying services inselected Vodacom outlets. Both qualitative and quantitative data were utilized in this study.


The study revealed that customers perceive positively the introduction of M-Pesa service as a mobilebanking service by Vodacom Tanzania. The level of customer satisfaction and usage is high, also customershave positive attitude toward mobile banking service. Despite the positive perception toward mobile bankingservices customers do face challenges and security threats when utilizing the service.

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AN ASSESSMENT OF EFFECTIVENESS OF EMPLOYEES’S TRAINING PRACTICES INTANZANIA LOCAL GOVERNMENT

A Case study of Bagamoyo District Council

Malimi Sayi


The study was on an Assessment of Effectiveness of Employee’s Training Practices, focusing on TanzaniaLocal Government. Particular attention was put on identifying the existence of training program,implementation and evaluation of training progamme, if any problem facing employee’s training practicesLocal Government.

The policy in the Standing Orders for the Public Service directs organizations to establish trainingprograms and make sure that organizations have sufficient trained and skilled manpower for the developmentof the Council. Unfortunately same of employees of Bagamoyo District Council leave the organizationafter training and the human resource department is not involved in fully coordination of employees trainingand development.

The objective of the study were: to identity the existing of training programme; to evaluate theimplementation of training programme; to determine problems facing employees training practices and toexamine the employee’ training practices.The study adopted mainly a case study qualitative research approach for collection of data in the field.However, the instruments used to collect data, namely questionnaires, observation and documentary reviewshas also generated quantitative data. Therefore, the qualitative and quantitative methods complementedeach other. The study was conducted in Bagamoyo District Council in Tanzania Mainland.

The finding from the study revealed that most of employees were not satisfied with the training programmepractices in the council due to some reasons such as lack of enough fund to support the programme, lackof support from top management, employees readiness for training, no replacement of employees whengoing for training and the last one was the change of the work structure. Moreover the majority of employeesidentified the training programs they seem to urgently needs by them for the better performances of theirduties. Therefore, The findings reveal that majority of employees agreed with the existence of trainingprogram, its implementation and practices and finally found that employee’s training practices at BDC isineffective.

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MARKET DYNAMICS OF ICT TRAINING WITH SPECIAL FOCUS IN SECONDARYSCHOOLS AND COMPUTER TRAINING CENTERS IN DAR ES SALAAM

The Case of Dar es Salaam Secondary Schools and Computer Training Centers

Willa Ishengoma


The introduction of computer course as part of syllabus in secondary schools has been a threat to thecomputer training centers. This can lead to loss in the business of the computer training centers. Thisresearch aims at finding the market possibility for the computer training centers in the future.

The descriptive research design was used, raw data was collected using questionnaires in Dar esSalaam from 130 form four students. Purposive and random sampling designs were used. From the findingsobtained, it was observed that 81.54% of respondents said they will still join the computer training centersfor computer course in spite of studying it as a subject in secondary schools. 63.207% of the femalerespondents and 36.792% of the male respondents said that they will join the computer training centers forcomputer courses. Out of the respondents, 85.227% of the respondents taking science subjects, 72.222%of those taking arts subjects and 75% of those taking commercial subjects said they will attend thecomputer training centers even if they already had computer course in secondary school. Computer coursecontents in secondary schools are different to those in computer training centers. It was concluded thatthere will still be market for the computer training centers and the market will have students from all fieldsof specialization. The study recommended that ICT course syllabi in secondary schools and computertraining centers should be harmonized and updated from time to time. For computer centers to maintainand improve their market, they need to improve the quality of the ICT service provided so as to meetcustomer expectation causing customer satisfaction which will lead to a profitable and growing business.

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AN EVALUATION OF MASS MEDIA IN PROMOTING WILDLIFE TOURISM INTANZANIA

The Case of Tanzania National Parks

Eliavera Aminiel Timoth


This study evaluated mass media used in promoting wildlife tourism in Tanzania by local authorities andtour operators in attracting tourists Tanzania National Parks. It identified the media used and otherpromotional activities and assessed their effectiveness and efficiency in delivering information to targetedcustomers.


The study involved desk and field research. Desk research involved collection of information related tothe theories and concepts of communication and official statistics. Field research was conducted in Dar esSalaam and Arusha cities. Forty tour operators and sixty international tourists were interviewed.Combinations of sampling techniques were used. These were purposive and incidental sampling. An SPSSprogram was used to analyze data. Hypotheses were tested using Kolmogrov Sminov to investigateeffectiveness level of media and Satisfaction level. Cross Tabulation was used to test relationships togetherwith Chi-Square.

The findings show that the following were more effective in promoting wildlife tourism: the Internet,Word of Mouth, Brochures, Overseas Agencies and Trade fair and Exhibitions. However, Television,Radio, Newspapers and Road shows were not very effective in promoting wildlife tourism in Tanzania. Itis therefore recommended that tourism stakeholders should invest more in identified media which are moreeffective in promoting wildlife tourism.

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DETERMINATS OF TANZANIA’S AGRICULTURAL EXPORT PERFORMANCE

The Case of EU’s Trade Arrangements with ACP Countries

Fred Phanuel


The study set out to analyze the performance and determinants of Tanzania’s agricultural exports to EU forthe period 1980 - 2008. Ordinary Least Square technique was adopted to regress the secondary timeseries data. Stata 10 was used for econometric analysis. The analysis found that the general trade performanceof Tanzania is experiencing trade balance deficit with the increase in imports than exports. In those exportsfrom Tanzania, non-traditional export is doing well than traditional exports. Traditional exports, in particularagricultural exports are not doing well due to constraints facing agricultural sector performance.

The econometric results found that four out of five variables were significantly determining the performanceof Tanzania’s agricultural exports to ED. The results indicated that a unit increase in GDP and inflation ofTanzania and EU facilitates trade in agricultural products which ultimately improves exports of Tanzania’sproducts to ED. So from the analysis it is found that determinants of Tanzania’s agricultural exportsperformance are GDP of EU and Tanzania, inflation rates of EU and Tanzania.An important lesson from this study is that policy makers should put in place a well designed policy toaddress supply side constraints and thus enable Tanzania benefit from preferential market access given bythe ED. Tanzania should therefore; target to attract export oriented foreign direct investment so as toimprove the production of agricultural goods for export markets. This could to a great extent be donethrough a better legal system and institutional framework.

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THE IMPACT OF FOREIGN DIRECT INVESTIMENTS ON EXPORT PERFORMANCEIN TANZANIA

Fredrick Kivuyo


This study estimates the potential impact of FDI inflows on export growth in Tanzania over the 1980-2007. This study used secondary data to examine the impact of FDI on export performance in Tanzania.Ordinary Least Square (OSL) method was used to estimate the regression model using STAT A 10sofu;yare. The major hypothesis of the study is that FDI has had a positive impact on Tanzania exportperformance. The evidence is that FDI inflows contributed to higher supply capacity in Tanzania, leadingto higher export growth during the period of study. The estimation result also shows that Infrastructure,Gross Domestic Product and World GDP have significant impact on export growth. While Inflation, Exchangerate, and Tanzania prices relative to World prices have negative sign as expected but they are insignificant.Overall, the result of this study shows that the Tanzanian government’s intervention on FDI has a positiveeffect on the growth of foreign investment. The reforms on FDI and foreign trade both have generatedpositive effects on exports. Therefore, the implication of the result is that foreign trade and investmentreforms are recommended in the future development of Tanzania economy.

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EVALUATION OF NEW CUSTOMER CHARTER ON POWER CONNECTIVITY ANDSERVICE DELIVERY ON TANESCO PERFORMANCE

The Case of Head Office and Kinondoni South Regional Office

Philidon Daud Mkoma Siyame


The rejuvenation of old policies has been considered as one of the important tools of product and servicedelivery improvement. As a result of revitalization of old policies firms in most cases strengthen competitiveability to their competitors as the rejuvenated product or service increases in quality and performance tomeet the expectation of the customer. The researcher in this study embarked on evaluating the effect of thenew regulations (rejuvenated) on power connectivity policy and customer service delivery (new customercharter) at TANESCO Head office and in Kinondoni South Region in particular the effect on increase inconnections, reduction in connectivity period, prompt response to customer calls and ultimately increasesin revenue. Thus the bottom line was to evaluate whether there is improvement in service delivery tocustomers.

Findings show that TANESCO still need to improve quality of services rendering to customer especiallyon meeting promises to customers on construction activities and instantaneous response to customer callswhenever such call is received. Customer trustworthiness to service provider is built on reliable and promptresponse to problem solving as well as quick and prompt service provision (Kotler and Keller, 2005)

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ASSESSMENT OF FINANCIAL FORECASTING PRACTICES IN SMALL ANDMEDIUM ENTERPRISES IN TANZANIA

Case Study of Morogoro Municipal

Joseph Sungau


Financial Forecasting is the practice of projecting the quantitative impact of trends and changes in anoperating environment on future operations. Lack of business skills to foresee business issues are amongthe factors which contribute to SMEs failure. This research aimed at assessing Financial Forecasting amongSMEs. The general objective of the study is to assess Financial Forecasting practices in SMEs and whetherthey contribute to SMEs’ performance.

The study was conducted on SMEs owners at Morogoro Municipal. SMEs owners were selectedthrough simple random technique in purposive selected area of Morogoro Municipal. In this research,questionnaires and interviews were used to collect data in which Statistical Package for Social Scientist(SPSS) was used to analyse the collected data. A total of 70 questionnaires were distributed to SMEsowners/managers. 64 questionnaires were filled in and returned to researcher. From 64 filled questionnaires,61 questionnaires were correctly filled in and found to be useful in this research.

The research findings revealed that, 54% of SMEs are not practising Financial Forecasting. Lack ofknowledge on Financial Forecasting was identified to be significant factor hindering SMEs in PractisingFinancial Forecasting. It is recommended that training on Financial Forecasting should be provided toSMEs owners and consulting servicing should be made available at affordable cost to enable SMEsowners or managers to hire consultants.

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DETERMINANTS OF INTERNET AND CELL PHONE BANKING ADOPTION BYCONSUMERS IN TANZANIA

Gad Oneya


This study investigates determinants of Internet and Call phone adoption in the context of Tanzanian Internetand cell phone banking services. A research framework based on the Innovation Diffusion Theory/Modelwas adapted to identify factors that would influence the adoption of Internet and Cell phone banking. Chi-Square test was used to examine the entire pattern of intercorrelations among the three proposed constructsand to test related propositions empirically. The results revealed that both Perceived behavioral controlfactors, subjective norm and attitudinal factors play significant roles in influencing the adoption and intentionto adopt Internet and cell phone banking. Theoretical contributions and practical implications of the findingsare discussed and suggestions for future research are presented.

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From a managerial standpoint, the findings of this study reveal the importance of cultivating and solidifyinga positive perception of how Subjective Norm (social factors) is important and how it can highly determineor influence adoption and/ adoption intent of the banking services consumers and how it is crucial indetermining and usefulness it has to the intended user group.Therefore managers who are (consider) offering Internet and cell phone banking services should considerplacing a high priority on demonstrating subjective norm (social factors) the technology can appeal tosociety, and communicating its services and value added features through a well-designed Web interfaceor mobile phone interface.

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INFLUENCE OF COMPENSATION STRATEGIES ON ATTRACTING AND RETAININGSTAFF IN LOCAL GOVERNMENT AUTHORITIES

A Case Study of Sumbawanga District Council

Tenganamba Epaphras


This study seeks to address the problem of the gap between service facilities and current staff in workingstations. Its main objective was to explain the extent to which compensation strategies have attracted andretained staff in local government authorities specifically Sumbawanga District Council. The study waspurely qualitative. The data was collected through documentary sources, focus group discussion,questionnaires and observation and it was analyzed using Software Package for Statistical Sciences (SPSS).

The findings show employees positive impression towards compensation strategies, but reveal differenttensions as regards to its distribution and identify bonus pay as being the most effective strategy on attractingand retaining staff in the council. The findings reveal that many employees who received benefits andincentives are willing to stay in the council and are observed being committed. The packages on the otherhand, are unable to limit completely unwanted termination of contract of services. The study concludes thatcompensation strategies used by Rukwa Region Civil Service Facilitation Fund (RCSFF) and SumbawangaDistrict Council (SDC) are acceptable and effective on attracting and retaining employees in the council.However, there are discrepancies on the process of distributing the packages as such have created tensionsexpressed in a form of complaints. Thus Local government authorities should institute enforcementmechanisms upon distribution of packages that will ensure equal distribution.

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THE MODEL OF EVALUATION OF INFORMATION SYSTEM SUCCESS IN TANZANIA

A Case of Passport Issuance and Control System

Ally Mohamed Mtanda


The objectives of the study were to measure the effectiveness and efficiency of the computer system inimmigration services delivery, by looking at its effects on organizational impacts, service quality, systemquality, and user’s satisfaction with information as an important measure of success of the system

A total of 280 questionnaires, were distributed to respondents and the researcher received back 249questionnaires, with 31 not being returned by respondents. All respondents were drawn from immigrationhead office in Dar es Salaam, Julius Nyerere International Airport Immigration Office, Namanga borderStation and Zanzibar Immigration Head office. Apart from collecting data by using questionnaires, theresearcher had time to observe the way ICT users in this department interacted with the ICT facilities.

It is statistically significant that there is a relationship between ICT and organizational impact and Servicequality and a relationship between system quality, user satisfaction and success of the system. Factorscontributing to this relationship are associated with improved performance, increased speed of passportissuance, increased customer satisfaction and reduced passport counterfeit cases. Other factors includethe ability of the system to provide a prompt to customer’s services as promised, and at the right time. Inaddition, system flexibility, maintainability, accessibility and data accuracy had improved as a result of IS aswell as ease of use, management support, users understanding the system and relevance of outputinformation.

Therefore, this study concludes that passport issuance and control system adopted and implementedby immigration department yielded successful results. There is thus a crucial need of making a policy forsensitization about the potential of ICT to meet service delivery needs.

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ASSESSMENT OF CUSTOMER SATISFACTION ON THE HEALTH SERVICE INTANZANIA

A Case of Health Centers Owned by Local Governments

Semkiwa, Mashaka

Master of Business Administration, December 2009

Customer satisfaction is the ultimate goal of total quality management efforts in service industries. Anessential prerequisite to attain this goal is detection and prevention of problems which customer encountersin the service consumption process. The objective of this study was to assess the customer satisfaction on

549UDBS

health service in Tanzania. The study was conducted by a way of survey strategy whereby four councilswere involved. The samples were randomly selected and 152 respondents were interviewed by use ofquestionnaire. The respondents were divided into three groups i.e. the patients, employees and executivesdealing with health centers. Both primary and secondary data were used; for qualitative analysis andhypothesis testing of the data.

The result revealed that there was low satisfaction of customers on the health service offered by thesehealth centers due to lack of Interaction, Timeliness, Outcome and Atmosphere. Although the managementhas some strategies to improve the situation, yet other strategies need to be continuously devised. This isbecause some constrains are results of the policy made at the national level which are not flexible for bothhealth centers and Local Government. Health status of majority of Tanzanian population depends on thesecenters as they are comparatively easily accessible to most of them. Unfortunately, their contribution hasbeen constrained by ill policies, lack of autonomy and insufficient number of staff, drugs, medicine andother physical facilities.

To attract new customers and to retain old customers, public health centers should formulate customer-oriented marketing policies and improve the quality of services. Also increase training of health employeesespecially on customer care education. Motivation in terms of materials and non materials for those workingin remote areas should also be considered to compensate the hardship they are facing. Policy regardingworking hours should also be competitive and considerate to allow full time access by patients to thesecenters.

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RURAL ELECTRIFICATION PROJECTS IN TANZANIA

A MANAGEMENT PERSPECTIVE

Benedict Michael Mushi


The rural areas in most poor countries like Tanzania are home to large populations that eke their living outof subsistence agriculture. However their living standards have been negatively affected by under-developedsystems of infrastructure like water supply, electricity and transport in their villages. One of the reasons forthe deprived condition of the populations in the rural areas is the very low access to development inputslike electricity. Demand for electricity in the rural areas is growing faster than the available power supplyand the gap between the demand and supply does not seems to narrow down to a significant dimensiondespite the efforts being made by the Government to alleviate the situation and this phenomenon needs tobe looked into.

The objective of this study was therefore to seek an insight into the rural electrification projects inTanzania from a management perspective with regards to planning, coordination and control. Six questionswere developed to meet the research objective. The research was based on qualitative (descriptive)paradigm and in the process; fifty senior officials from MEM, REA and TANESCO were interviewedusing semi-structured questionnaires. The respondents disclosed that the Government was responsible for


inadequate and delayed funding of the rural electrification projects. Frequent political interferences werealso a constraint factor in rural electrification thereby eclipsing application of important project managementprinciples and theories.

As a result, Tanzania’s current level of access to electricity can at best be described as meagre and atthe current rate of electrification (12%-overall) it is unlikely that a significant proportion of the populationwill access electricity in the near future. In order to enhance electrification, alternative approaches to gridextension and off-grid systems must be considered. In this regard, new renewable technologies would beexpected to play an increasing role. However, for the full potential of these technologies to be realized,legal, policy (e.g. taxation, tariffs, subsidy, etc.), technical and institutional factors must be addressed inorder to lift barriers to the penetration of these technologies.

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UTILIZATION OF E-COMMERCE AND E-FINANCE BY SMALL AND MEDIUMENTERPRISES (SMEs) IN URBAN TANZANIA

The Case of Selected SMEs in Dar es Salaam Region

Faith Shayo


The broad objective of this study was to explore the extent to which owner-managers of SMEs in urbanTanzania are making use of e-commerce and e-finance related activities with a focus on selected SMEs inDar es Salaam region. Specific objectives were to explore SME owner-managers level of awareness onthe meaning of e-commerce and e-finance, to examine current practices by owner-managers in makinguse of e-commerce and e-finance, to identify challenges that SMEs owner-managers are facing in theadoption of e-commerce and e-finance, and lastly to solicit ideas/views for promoting greater use of e-commerce and e-finance to promote SME development.

Data for this study were collected using a combination of techniques namely; observations, face-to-face interviews and using a questionnaire with open and close ended questions. Sixty respondents participatedin this study. These were drawn from SMEs located in the Ilala, Temeke and Kinondoni Municipalities inDar es Salaam region. Both quantitative and qualitative data analysis methods were used in this study.Quantitative data were analysed through SPSS while qualitative data were synthesized and reduced intoshort frequencies and tables for easy analysis and interpretation.

Key findings revealed that most SMEs owner-managers have basic knowledge and awareness of e-commerce and e-finance. However, most of these SMEs do not use the technologies due to privacy andsecurity issues, high cost of internet connectivity, credit card and online fraud, and the majority do not havecredit cards. In general, this study concluded that e-commerce and e-finance is at an infant developmentstage for SMEs in Dar es Salaam region as most SMEs have limited knowledge of the advantages of thetwo technologies to their businesses. As a recommendation, the government (GoT) is encouraged to findways and strategies to promote the use of e-commerce and e-finance in order to promote SMEs growthand improve their competitiveness in the global market.

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THE IMPACT OF DOWNSCALING COMMERCIAL BANKS ON SMEs ABILITY TOACCESS FUNDS

A Case Study of Barclays Bank in Dar es Salaam

Jeremiah Mhada


The main objective of the study was to identify the impact of downscaling a commercial bank on SMEsability to access funds, many banks have downscaled their operations making it possible for SMEs toaccess their services and funds. The study was propelled by the thinking that lack of sufficient funds hasbeen an impediment to SMEs survival and growth.

The study focused on how the downscaled operations of a commercial banks has brought about microfinance services to these banks, and how this process changed SMEs ability to access funds from thedownscaled commercial bank. The study also shows the growing participation of Banks in Micro financeand these has greatly affected the targeted groups such as SMEs.

The study constituted a sample size of 27 respondents out of the 12 branches of Barclays bank in Dares Salaam whereas descriptive analysis through SPSS was used in data analysis. The main reason ofselecting Dar es Salaam is because it’s Tanzania commercial hub and where almost 50% of Barclay’sbranches are located.

The study findings indicate that the downscaling was an appropriate program to facilitate and improveaccess to finance of SMEs. But more needs to be done so as there will be significant changes when itcomes to SMEs access to funds and improved relations with banks.

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A STUDY ON THE IMPACT OF EU SUGAR REFORMS ON TANZANIA SUGAREXPORT PERFORMANCE

Ayoub Jones Mndeme


EU sugar market that provides preferential MA for sugar from ACP has a significant influence on the worldsugar market. The EU sugar market reforms that have been agreed by the EU Agricultural Ministers in2005, interacts with preferential trade initiatives and with the need to comply with the outcome of the tradedispute on export subsidies. Apart from EU sugar producers, the reform will affect ACP countries thatdepend on the preferential treatment they enjoy for sugar exports to the EU. This study examines theimpact of the EU sugar market reforms on the Tanzania Sugar export performance, by assessing the sugarindustry performance and determinants of sugar export performance in EU. The OLS technique ofeconometric analysis has been used for regression analysis by application of E Views. Results show that


Tanzania will experience significant reduction in sugar export revenue as a result of ED sugar reforms, andthis will have negative effect to the Tanzanian economy especially for people involved in sugar industry. Theresults further show that exchange rate, income of trading partners and domestic production costs determinessugar export performance. It has been recommended that, there is need for collaborative efforts (PPP) toaddress constraints facing sugar industry especially physical and financial infrastructure in order to reduceproduction costs which are pertinent in sugar export competitiveness .This will build the competitive exportcapacity to explore other market opportunities than EU reformed market and ultimately facilitate the industryto compensate the revenue shortfall from export market as a result ofEU sugar market reforms.

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THE EFFECTIVE USE OF INTERNET FOR COMMERCIAL PURPOSE INRAILWAY COMPANIES

The Case of Tanzania Railways Limited (TRL)

Vera Florence Shadrack


The effective use of Internet for commercial purposes in railway companies is very minimal as not manypeople are making use of it. Very little literature on the subject is available in Tanzania. In this study anattempt has been made to analyse the current situation with regard to the commercial use of Internet inrailway companies. In testing hypotheses the non-parametric statistical analysis was used to test hypothesesthat have been derived from research questions and qualitative analysis was done to test the propositionsof the study.

From the analysis it was revealed that using Internet commercially has importance to TRL managementbecause of the benefits obtained through the use of Internet including improvement of business performancein the organisation, enhancement of effectiveness and quick accomplishment of tasks, performance of thetasks successfully and satisfaction of effect of using Internet in job performance. Lack of adequate knowledgeamong users, problem of network and hardware facilities, poor connectivity and unreliable power supplyfound to hinder ease of use of Internet among users.

The problems are likely to be solved if railway companies appreciate the benefits obtained throughusing Internet commercially and create conducive environment for Internet users and service providers.These companies should practice the better use of Internet in exchange, transfer and sharing of informationlocally and globally.

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CHALLENGES FACING THE IMPLEMENTATION OF ONLINE TAX FILLING INTANZANIA

Mabula Emmanuel Sambayukha


The study investigated the challenges facing the implementation of online tax filling in Tanzania, the case ofTanzania Revenues Authority. The study examined whether taxpayer had enough knowledge on online taxfilling with Tanzania Revenue Authority. Secondly, the study examined the factors causes Tanzania toimplement online tax filling system. Finally, the study examined the factors that can hinder implementationof online tax filling practice in Tanzania. The study comprised of a total number of 150 of respondents. Thestudy used various instruments of data gathering such as questionnaires and documentary review.

The findings of this study revealed factors led Tanzania to implement online tax filling which include; thesystem was easy to use, fast and affordable; it provides accurate reduction, save time, made easy to gettax reduction, maximize reductions and helped to decrease the number of tax filed. The findings revealedfactors that hinder implementations of the system such as problem of internet; the system was not acceptableby users, lack of promotion on system, poor level of customer’s involvement and lack of knowledge ononline tax filling system.

The findings of this study suggested that Tanzania Revenue Authority should provide enough knowledgeto the taxpayer and customers on online tax filing through various media like television and radios. TanzaniaRevenue Authority should find the way out to eliminate all factors hinder the implementation of online taxfilling system because the system is advantageous to the Country like Tanzania.

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FACTORS INFLUENCING LABOUR TURNOVER IN THE PUBLIC SECTOR

A Case of the Immigration Department

Fatma Ally Suleiman


This study seeks to examine the factors influencing labour turnover in the Public Sector with the ImmigrationDepartment as its case study. The study investigates the factors that account to employees’ retention; thecauses of employee exit, examination of the retention strategies and the attitudes of employees related tostaying or leaving an Organization.

The theoretical literature review reveals that dissatisfaction is associated with labour turnover. In anorganization, employees have individual taste of expectations, when those expectations are unmet, theresult is dissatisfaction.


The study involved a sample of 60 respondents from Immigration Headquarter, Immigration Regionaloffice, and Mwalimu Nyerere International Airport. Documentary research, questionnaire and interviewwere used in collecting data and Content analysis was used in analysing data with the assistance of SoftwarePackage for Statistical Science (SPSS).

Study results showed that low wages, unfair treatment between employees on deciding their rightsspecifically in the selection for scholarships, promotion and provision of allowances and incentives. Availabilityof alternative employers and poor working environment are also the factors that contribute to turnover.In order to retain employees the study suggests that, the Organization should have just and fair policies togovern the selection for scholarships, promotion should be done as stipulated in Public Service Act of2002, thorough salary structure review should be done so as to match income with the prevailing economicconditions.

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ASSESSMENT OF THE EFFECTIVENESS OF TANZANIAN TRADE UNIONS

A Case Study of Tanzania Union for Industrial and Commercial Workers (TUICO)

Nsajigwa Dick Mwankenja


The purpose of this study was to assess the effectiveness of Tanzanian trade unions; a case of TanzaniaUnion for Industrial and Commercial Workers (TUICO). The survey method was used as a technique fordata collection, using both questionnaire and interview schedules as data gathering instruments. A total offive (5) work organizations and the Head Office of TUICO were surveyed and a total of 114 respondentswere interviewed.

The liberalisation and privatisation reforms which began in Tanzania during early 1990s have had asocio-economic impact on the effectiveness of the trade unions. The major findings of this study revealedseveral socio-economic factors which have contributed to retarding the effectiveness of TUICO and othertrade unions in Tanzania. Some of the factors which have been identified include poor leadership, poorparticipation of members in union activities, the arrival of foreign investors and the government reformprogramme. Despite the constraints that have been identified that hinder the effectiveness of TUICO, it hassucceeded in various negotiations with employers for better terms of employment and has secured theregistration of a good number of collective agreements. Also it has represented employees in arbitrationand conciliation proceedings.

Among other things the study recommends the government to empower the Registrar of Trade Unionsto impose penalties on employers, who discourage or ignore the trade unions at their workplaces, as wellas to provide training on trade union administration and labour laws to all union leaders and members.

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THE ROLE OF KILIMANJARO COOPERATIVE BANK LIMITED IN THE GROWTHOF MICRO AND SMALL ENTERPRISES

Asanterabi John Msigomba


The main objective of this study was to assess the role of Kilimanjaro Cooperative Bank Limited (KCBL)in the growth of Micro and Small Enterprises (MSEs). Data were collected from staff and clients ofKilimanjaro Cooperative Bank through questionnaires, interviews and documentary review methods. Thetotal sample size was 100 respondents from Moshi Municipality. Statistical package for social science(SPSS) software was used in the data analysis. Results show that all financial indicators (sales, investmentand employment level) grew, though finance from KCBL had significant effect on employment level only.That means as the level of finance increases the employment level increases. On the other hand, non-financial growth rate was not significant. In addition, result show that most of the respondents who participatedin this study were male (57%) and that majority (54%) of MSEs who obtained finance from KCBL weredoing retail businesses.

In order to enhance the growth of MSEs, the following recommendations are given;There is a need for MFIs to provide large loans so that MSEs realize non-financial growth. In this case,MFIs are recommended to offer pre-loan training to SMEs in terms of management of finance. In addition,MFIs should reduce interest rates charged against microfinance advanced to them. On the other hand,MSEs should deliberately put their records and reports in order, not just when they want to borrow, butthroughout. This will enable them to provide MFIs with the right picture of the business when required todo so.

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THE USEFULNESS OF INFORMATION AND COMMUNICATION TECHNOLOGY INMANAGING ORGANIZATIONS

A Case of Operations Management in Manufacturing Organizations in Tanzania

Lilian Patrick Mnzava


Despite heavy investment in information and communication technology (ICT), many organizations haveinvested much in ICT. Many research reports have been done and models written have revealed manyfactors that influence performance such as management readiness to its usage, financial capability, awareness,literacy level and other factors. Its benefits have also been revealed as reduced cost, time saving, easierjob and other benefits.


This research examined the usefulness of ICT in managing organizations, especially in manufacturingorganizations. The researcher conceptualized four hypotheses containing contents of cost minimization,value adding, factors contributing to its usefulness i.e. literacy level and technical factors.

The findings and analysis have shown the necessity of concentrating to technical factors so as to yieldusefulness of ICT application in OPM

In this content, all OPM practitioners should work hand and hand with ICT specialists to yield maximumperformance level through getting right personnel, software and hardware.

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ASSESSMENT OF EMPLOYEES’ JOB SATISFACTION IN TANZANIA LOCALGOVERNMENT AUTHORITY

A Case Study of Ilala Municipal Council (IMC)

Henry Patrice

Master of Business Administration (Human Resource), November 2009

The study was conducted at Ilala Municipal Council (IMC) on assessment of employees’ job satisfactionin Tanzania Local Government Authority. The general objective of the study was to undertake the assessmentof employees’ job satisfaction in Tanzania Local Government Authorities (LGA’s). Specific objectivesincluded: investigation of the factors that may lead to job satisfaction or dissatisfaction, determination of theextent to which employees’ level of satisfaction or dissatisfaction influence employees’ turnover, andassessment of the implication of job dissatisfaction in LGA’s.

The study involved the samples of 60 employees’ from IMC in a cross-sectional of departments in theorganization using questionnaire and interview. Employees responded to the questionnaires were 59 out of60. Data analysis was done using Statistical Package for Social Sciences (SPSS) and content analysis.The findings of this study generally reveals that due to low employee’s compensation as compared toprivate and other government sectors, professionals think to look for better jobs elsewhere. Poor workingenvironment, rigid policies, political interference in the implementation of LGA programs, poor leadershipand lack of involvement revealed to be a critical problem in the efficiency and performance of LGA’s.Other factors that contribute to job dissatisfaction were absence of recognition of employee’s efforts, andprofessionalism not properly valued from the management.

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AN ASSESSMENT OF CLEARING AND FORWARDING AGENTS’ PERCEPTION ONCUSTOM VALUATION METHODS IN TANZANIA

Nyarobi Boniphace Dittu

Master of Business Administration (Human Resource Management), November 2009The study investigated the perception of Clearing and Forwarding Agents on Custom Valuation Methods:the case of study of Tanzania Revenue Authority (TRA). The study assessed the perception of Clearingand Forwarding Agents on Custom Valuation. The study as well examined the factors caused TRA andTISCAN to reject the invoice values declared by importers. Finally, the study examined the implications ofallegations raised by importers to TRA and TISCAN. The study comprised of a total number of 170 ofrespondents; 120 were Clearing and Forwarding Agents and 50 was valuation staff. The study usedvarious instruments of data gathering such as questionnaires, personal interview and documentary review.The findings of this study revealed the following views raised by importers to TRA and TISCAN, unfairvaluation by rejecting the invoice value of imported goods, unreasonable uplifting of the custom value, lackof transparency on indicator prices used in uplifting and arbitrary determination of Customs Value.

The findings as well revealed factors that led TRA and TISCAN to ignore the use of transaction valuesof imported goods as required by ACV, such as incomplete supporting documents, untruthful of importers,unreliable Country of consignment, higher revenue targets given to TRA by Ministry of Finance and chargingof service fees paid to TISCAN based on FOB. The study suggested that Tanzania Government shouldensure that the laws or regulations of valuation in places are followed. The Government should place agood look on TRA to ensure that the increase revenue target by Ministry of Finance is not a source ofignoring the regulation in place

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EVALUATION OF IMPLEMENTATION OF HUMAN RESOURCE POLICY ONRECRUITMENT AND SELECTION IN PUBLIC SERVICE

A Case of Public Service Commission

Athanasia Kabuyanja

Human Resource policies are guidelines that identify the organizations intentions in recruitment, selection,promotion development, compensation, motivation and others. Human Resource policies serve as a roadmap for managers. Human resource policy on recruitment and selection governing public service is foundin the Public Service Management and Employment Policy (1999), which were given legal force by theenactment of the Public Service Act No. 8 of 2002. This act established the Public Service Commission tosupervise the implementation of the policy.

This study evaluates Implementation of Human Resource Policy on Recruitment and Selection in thepublic service. The study was conducted at Public Service Commission in Dar es salaam region in Tanzania.The Commission was chosen for evaluation because is the one responsible for ensuring proper implementationof the policy in the public service.


Data were collected using questionnaire, interview and documentary review, with the aim of assessingclarity of the policy statements, test understanding of the policy among members of the management andhuman resource officers and checking consistence in application of the policy in the Commission. Researchwas guided by research questions.

The study found that the policy statements were clear to be understood by users, highly understood byboth management and human resource officers and that it was consistently applied in the commission indealing with new recruits in the entry post. The study suggested review of the policy since some of therecruitment and selection practices in the public service have changed.

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DETERMINANTS FOR SUCCESSFUL TURN-AROUND OF A FAILED BANK

The Case of Azania Bank Limited, Dar es Salaam, Tanzania

Gothalm Carnysyus Karlhessoh Mbele


The aim of this study was to examine determinants for successful turn-around of a failed bank i.e. given thata bank had failed and later the bank was successfully turned-around, the study sought to know the specificfactors that contributed to the success of the turn-around process.

The study took Azania Bank Limited as the case study and used views and opinions of employees andboard members of Azania Bank Limited and Bank of Tanzania through survey method. A sample of 78respondents was taken whereby 74 respondents submitted their responses i.e. 95% response rate.Documentary review assisted in obtaining additional important information in respect of the Bank. Theanalysis of the collected data used descriptive statistics approach whereof Statistical Package for SocialScientists (SPSS) was used in the analysis.

The findings of the study revealed that change of board of directors, top management, bank name andtarget market is very important to the success of the turn-around of a failed bank. The study also revealedthat effective oversight of the new board of directors and top management is equally important for thesuccess of the turn-around process. The study further revealed that supportive regulatory authority andbanking laws and regulations are extremely important to the success of the turn-around of a failed bank.From the study, recommendations were made to Azania Bank Limited, the banking industry and theGovernment/regulatory authority on how to ensure that there is effectiveness in the turnaround process fora failed bank. The recommendations are expected to provide more profound knowledge and guidelinesfor turning around a failed bank.

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EFFECIVENESS OF PARTICIPATORY PLANNING AND IMPLEMENTATION OF TASAFSCHOOL PROJECTS IN LOCAL AUTHORITY

A Case of Tanzania Social Action Fund (TASAF II) School projects in Mpanda DistrictCouncil, Rukwa Region.

George Juma Mhema


The study established how effective was the participatory planning through examining the planning process,management and implementation strategies by TASAF II in local authority. Mpanda District Council wasused as a case study area.The literature included different books, working papers, journals, workshop reports and research papersdone by individuals and institutions both nationally and internationally. It covered the concepts of communityparticipation, empirical studies on participation and effectiveness of project implementation, general factorsthat influence sustainability of project services, project characteristics affecting people’s participation andhindrance to community participation.

The methodologies used to boost participatory planning were clearly discussed. Five groups of individualswere interviewed by using both structured and unstructured guide of questions in securing data in therespective areas of work.The study revealed that there are different stages in project selection process, the need for involvement ofvillagers in project selection and the need of enhancing capacity building to CMC members for sustainabilityof projects.

Finally the recommendations was put forward to improve participatory planning, these include : reductionof women workload, frequent facilitation, support and monitoring from relevant bodies, cooperation amongthe key stakeholders is important among leaders and CMCs and making analysis of village situation andidentification of bottleneck to village development.

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AN ASSESSMENT OF THE EFFECTIVENESS OF INTERNAL FINANCIAL CONTROLSYSTEM IN LOCAL GOVERNMENT AUTHORITIES IN TANZANIA

The Case Study of Kisarawe District Council

Edwin Peter


The objective of this study was to assess the effectiveness of the internal financial control system in localgovernment authorities in Tanzania. Specifically the study aimed at the assessment of the effectiveness of


internal financial control system in accounting department of local government authorities; determination ofthe effectiveness of the internal audit unit in local government authorities; determination of the effectivenessof the procurement management unit in local government authorities and the assessment of the effectivenessof budget as internal control tool in local government authorities.

A cross-sectional study design was employed, basically quantitative method of data collection wasused where by both structured questionnaires with open and closed ended options were used. The researchercollected data from sixty three respondents comprised of; nineteen councillors, seventeen heads ofdepartments and projects, thirteen procurement unit staffs and tender board members, thirteen financedepartment staffs and one internal audit staff. Data obtained were analysed quantitatively using the StatisticalPackage for Social Sciences (SPSS) and tested using CHI-square.

The findings indicated that there was poor internal financial control in accounting department includinglack of monthly bank reconciliations and trial balances. Also there were lack of updated fixed asset register,vote book and computerized accounting package. Budgeted votes and procurement regulation were notfollowed accordingly. Internal auditing was understaffed and lack facilities which impair its efficiency.The study recommended that there should be close supervision of accounting procedures with job descriptionand rotation in finance department. Also the use of full computerized accounting system to enhance internalfinancial control and timely financial report delivery. The procurement regulations and plan should beproperly adhered. The internal audit unit should be added with more staffs and given more facilities toperform its work efficiently.

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MARKET ORIENTATION AND PERFORMANCE RELATIONSHIP IN INSURANCEINDUSTRY IN TANZANIA

The Case Study of Insurance Companies in Dar es Salaam

Elias Daniel Msabi


The main objective of this study was to explore the relationship of Market orientation and Performance.This objective has been derived from the objectives of liberalizing the Insurance industry in Tanzania ofbeing Market driven industry and this research is aimed at establishing if there is any relationship betweenfocusing markets.

The specific objectives were, to find out the relationship between Market orientation and performancein Tanzania’s insurance industries, to find out if Tanzania Insurance Industry is market oriented and to findout how strong the relationship is between the market orientation and performance in Insurance Industriesin Tanzania.

The study used a sample of 12 Insurance Companies and 20 registered Insurance Brokerage Companies.General observation showed the general trend that still there was poor participation among the people injoining with the Insurance policies in Tanzanian. This is because all the Marketing activities of these companieswhich have been targeting major cities like Dar es Salaam.

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The result shows that there are positive relationships between market orientation and performance. Inother words, Tanzanian Insurance Industry performance is largely influenced by its market orientation ormarket driven culture. This is because the association between the acting of the industries and the responsefrom the market are positive. It is recommended to the companies that, time has come for them to startconsidering direct marking. And also all companies should prepare themselves to offer services oninternational standard accepted not only within East African Community but the entire world.

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CORPORATE GOVERNANCE PRACTICES IN THE PUBLIC SECTOR

A Case Study of Air Tanzania Company Ltd

William Rodgers Haji

Master of Business Administration (Finance), March 2010

The study investigates the corporate governance practices in the public sector in Tanzania. The studyutilized an explorative method of inquiry to provide data on which conclusions were drawn. Data has beenobtained from annual reports and through face to face detailed interviews. Four categories of respondentswere involved in the interviews: The shareholder (government of Tanzania), members of the board ofDirectors, senior management (both former and current) and lastly other management members and staff.

The study findings show that since its legacy as ATC, the corporation has been operating under losses.In terms of corporate governance, eight measures were used in assessing the involvement of the board ofdirectors to the company’s strategy development process. Setting the vision and mission was ranked asthe most important role of the board. The second important role was found to be setting the future directionof the company, this includes reviewing company’s objectives. Reviewing and evaluation of present andfuture opportunities, threats and risks in the external environment and current and future strengths, weaknessesand risks was found to be the third most important role of board.

The study findings indicate that there exists a lack of congruence in setting strategies between theshareholder and the board of directors. Areas mentioned includes decisions made by the Government onstrategic issues without the knowledge of the Board which is the responsible organ for the formulation ofcompany strategies. Several measures were recommended that may improve corporate governancepractices and revamping ATCL including funding, government involvement in daily operations of the company,involvement of the Board of Directors in strategic decision making, appointment of effective board ofdirectors and management team and sharing of goals and objectives across the company. Board of Directorsand the CEO should be given clear messages about what is expected from them, their roles and responsibilitiesas directors and head of the corporation. Their scopes of authority must be defined in corporate bylaws,regulations and codes of conduct. There should be one organ within the government machinery vestedwith the mandate to make decisions, and approve transactions related to the operations of ATCL.

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THE ROLE OF MOBILE BANKING IN CUSTOMER SATISFACTION

The Case Study of National Microfinance Bank (NMB)

David Mujemula

Master of Business Administration (Marketing), November 2009The study set out to determine the role of mobile banking in customer satisfaction. Mobile banking is a keycomponent in any success of today’s financial offerings as it offers high ability to provide services anywhere,anytime, high rate of penetration and potential to grow.To achieve the objectives the study used a sample of 50 respondents who were randomly selected. Datawere collected through the use of questionnaire instrument and interviews, observation and focus groupdiscussions. Data were computed and analyzed to determine the impact of the variables on customersatisfaction.The findings indicate that mobile banking facility positively influences customer satisfaction. Based on thefindings, it was therefore concluded that there is customer satisfaction on the use of mobile banking. Thefollowing major recommendations were made; banks should improve their customer care services byresponding timely to customers queries; increase security over mobile financial transactions; the governmentshould review the legal framework to combat network crimes. Banks should embark on the provision offinancial education to their members to stimulate awareness and features of the facility.

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THE USE OF ICT TO ENHANCE CUSTOMER SERVICES IN THE BANKINGINDUSTRY IN TANZANIA

A Case Study of CRDB Bank

Daniel Richard Methusela

Masters of Business Administration (Business Administration), November 2009

This dissertation is about The Use of ICT to Enhance Customer Services in the Banking Industry inTanzania: A Case Study of CRDB Bank PLC. The study covers three branches namely CRDB Bankheadquarters, Mlimani City and Kijitonyama in Dar es Salaam and this will be researcher’s primary sourceof data. Eighty (80) questionnaires were administered to the customers of CRDB Bank for the selectedbranches. Categories of variables that relate to the quality of services were identified for the study andthese include the customer support, technical support, customer satisfaction and security issues.

The study revealed that there are fundamental changes in the content and quality of banking business inthe banking industry, banks have improved customer services, prompt and fair attention, and enhancedfaster services, however, there are still additional strategies that if well adopted can improve the customerservices. Some of the strategies recommended include proper adaptation of technology, as this is one of

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the driving forces of the competition in the banking industry, security measures, and involvement of customersin decision-making, product design and raising awareness among customers of the bank. The suggestedstrategies if adopted will make the work easier for the bank, improve and compete with other banks,improve relationship with customers and assist in solving basic problems and operational planning.

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PERFORMANCE OF ZANZIBAR TOURISM INDUSTRY

Factors Influencing Availability of Foreign Exchange Earnings

Salmin Sharif Khatib

Master in International Trade, November 2009

Tourism is one of the largest and fastest growing industries in the Small Island Developing States (SIDS).It is an increasingly important source of income, employment and wealth in the world. International tourismcurrently accounts for a larger share of foreign exchange receipts and export earnings than any otherindustry in the world (WTO, 2004).

The main objective of this thesis is to analyze the factors influencing availability of foreign earnings. Thisthesis carries out to analyses annually data and be tested by OLS time series regression analyses. Theresults of the estimation showed that the variable of tourist arrivals and number of hotel beds found to bestatistically significance and their coefficients’ signs were positive as expected, while variable of promotionwas statistically insignificance. This concludes that the tourist arrivals and hotel bed are factors that influenceavailability of foreign earnings from the tourism industry in Zanzibar.

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ASSESSMENT OF THE MICRO FINANCE INSTITUTIONS’ CONTRIBUTION TO THEEMPOWERMENT OF SMEs IN TANZANIA

The Case of Standard Chartered Bank - SME Banking

Barry Dismas Chale


The study assessed the performance of microfinance institutions in Tanzania from different angles. It lookson the MFI outreach, financial sustainability and identifies challenges faced by the MFIs in their operationsspecifically as related to empowering of SMEs. Both qualitative and quantitative research designs wereused. Two categories of respondents namely internal (senior management officials and the supporting staff)and bank clients were covered. To choose respondents to be included in the study, two sampling techniqueswere employed. Purposive sampling was employed to cover the senior management officials while simplerandom sampling was employed to cover the supporting staff and the bank clients.

To a large extent, SCBT-SME Banking’s operations in Tanzania has brought about positive changes inthe standard of living of people who access their services. Although some of the clients have not benefited,most SCBT SME Banking clients have benefited positively. Despite the achievements of SCBT SME


Banking clients, most of them complained that the interest rates charged were very high. The findingsreveal that the process of application for loans starts with small amount and after repayment the client canapply for next higher amount. This process was observed to be a limiting factor for those customers whoneeded a large amounts right from the beginning.

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FINANCIAL SECTOR REFORMS: FINANCIAL DEEPENING AND BANKPERFORMANCE BEFORE AND AFTER PRIVATIZATION IN TANZANIA.

Edna Kwami


The 1980s were characterized by public ownership of financial institutions plagued with large proportionof non-performing loans in their portfolios; these institutions also lacked the necessary management skills.Further, the excessive political interference in the operation of banking institutions by governments coupledwith policies adopted damaged the economies by reducing savings and encouraging unproductiveinvestments. Many African countries in the 1980s embarked on financial sector reforms in order improvethe legal, regulatory, supervisory and judiciary environment and also to restructure and privatize some stateowned banks.

This study concentrates solely on Tanzania, by looking again at the reforms with respect to its effect onfinancial deepening in Tanzania banking industry using additional financial deepening indicator, then furtherassess how privatization as part of the reform process, impacted on the performance of CRDB bank, aformerly state owned bank. Data used are secondary, macro data were collected to help in assessing theextent of financial deepening after the reforms, whilst micro data were used to compute the ratios forassessing the performance of CRDB after privatization. Methodology employed for the analysis of CRDB’sperformance is based on the analysis of means and medians of different financial ratios that reflect profitability,efficiency, risk, capital investments and leverage. Financial deepening indicators and a structural measurewere used (monetary and credit aggregates) to measure the extent of financial deepening in Tanzanianeconomy by comparing ratios before and after the reforms.

The results obtained using the monetary and credit aggregates to GDP by comparing the post reformsperiod to the pre reform periods shows that financial deepening in the Tanzanian financial sector did notimprove for the few years following the reforms, however these ratios, improved after 2002. Using thestructural measure however, Tanzania experienced more financial deepening over the post reform periodsconsidered. There were also slight improvements in financial prices (real interest rates) as some of theyears registered positive real rates for deposits (for example 1996, 1999 and 2007) and real lendingrates, the reforms however did not improve interest rates spread. Considering the performance of CRDBbefore and after privatization, the results showed an improvement in profitability, efficiency risk and leverageratios after privatization; however capital investment did not improve.

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FACTORS AFFECTING THE EFFECTIVENESS OF PERFORMANCE APPRAISALFUNCTION

The Case of Tanzania Electric Supply Company Limited

Edwin Lameck Swai

Master of Business Administration (Human Resources Management), November 2009This study aimed at examining the factors that affect the effectiveness of Performance Appraisal Practice inthe working organizations and Tanzania Electric Supply Company (TANESCO) as a case study. In orderto carry out this study, data were collected using questionnaires, interviews and documentary analysis andwere quantitatively and analyzed with the help of SPSS software programme. Total respondents were 105; 25 leaders and 80 non leaders and had been obtained through simplerandom, stratified random and purposive sampling procedures. The study revealed that performance appraisal at TANESCO was less effective due to lack ofknowledge about the appraisal system, low top management support, ineffective performance feedbackmechanism in the Performance Appraisal process, However Performance Appraisal was crucial inaddressing institutional as well as staff member needs if effectively regularly and timely done in aparticipatory manner. From the study it is recommended that; the management through the human resource departmentshould organize an elaborate training program for both managers (appraisers) and employees (appraised)on the performance appraisal process to include appreciation of the concepts and objectives, settingof performance standards, and also keeping and maintaining accurate records of employee’sperformance. The performance appraisal system should be redesigned to embrace a propercommunication channel through performance interview for feedback on the performance appraisalresults. Management should ensure good performance is rewarded. Furthermore, the study recommends further studies to investigate and determine the linkagebetween Open Performance and Review Appraisal System (OPRAS) in TANESCO and the otherpublic service Institutions.

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AN ASSESSMENT OF TRANSPARENCY AND FAIRNESS IN PUBLIC PROCUREMENT

The Case of Kinondoni Municipal Council

Azamah Omary Ngwada


The study’s main objective was to review and discuss the actual practice of public procurement in KinondoniMunicipal Council, focusing on transparency and fairness. The specific objectives were to assess thenature and size of public procurement in Kinondoni Municipal Council; to establish how the ProcurementManagement Unit performs its functions in relation to the user departments,


The target population in this study were employees of Kinondoni Municipal Council (KMC). Purposefulsampling method was employed to ensure each stratum (level) of staff is well represented. A total of 74respondents were randomly selected from all strata. Fundamentally, the study utilized both primary andsecondary data which was collected through face-to-face interview and administration of questionnairesto the existing literature related to this study. Statistical Package for Social Sciences (SPSS) for Windowswas used to formulate statistical calculations to establish frequencies, percentages, tables and figures.

The findings show that the average values of goods and services procured annually at KinondoniMunicipal Council is about Tshs. 16 billion. This is a substantial amount of money whose expenditurethrough procurement of goods and services. In general, the advertisements of tenders have been well donein the Municipal. The provisions of tender documents were fairly done indicating that the provision oftender documents is transparent and fair. In addition, the PMU staff cooperated well with other stakeholdersIt is recommended that further studies be done to assess transparency and fairness in the procurementsector. To avoid complaints from the stakeholders, Municipal authorities should see to it that the PublicProcurement Act, 2004 and Public Procurement Regulations, 2005 is put into practice. All procurementofficers should be trained on how best to handle their customers both internally and externally.

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ASSESSMENT OF THE FACTORS THAT CAUSE NON-REPAYMENTS OF LOANS INCOMMERCIAL BANKS

The Case of National Microfinance Bank

Mwantum Glory Mraba


Factors which caused non-loan repayments among borrowers were assessed with a special focus toNMB and 50 respondents participated. The general objective of the study was to find factors to whichlead to failure to repay loans (NMB Bank borrowers). Specific objectives included: To establish therelationship between lenders methods in coordination and follow up schedules during collection of debt, toestablish relationship between loan repayment rates and business experience for the borrowers who obtainedmicro credits, to establish the effect of pre-loan training time on the loan repayment rates and to examinethe screening criteria used by NMB in issuing loan.

Case study design was adopted in the study and qualitative and qualitative research approaches wereused in this study. Data collection methods used were interviews, observations and documentary reviewand instruments used were interview questions, observation and documentary review schedules. Findingsindicated that lenders employed various methods to provide services to borrowers and that involved aprovision of education borrowers in order to access and the department was established for effectivecoordination. Findings indicated that there was a mutual relationship between loan repayments and businessperformance. Findings indicated that those who timely paid their loans were those who were doing betterin business. It was revealed from the study that they were able to get profit which they used to pay loanseither annually, quarterly or monthly.

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Findings also indicated that those who were not effective in repaying their loans had problems in business.Factors which affected the business and hence loan repayments included: weather, market competition,miss-use of loans, poor planning and lack of adequate business education. Findings also indicated thatpre-loan training increased the number of borrowers and the rate of loan repayments. It was revealed fromthe study that the bank benefited from the increase in capital and the capacity to provide loans to manypeople. Recommendations put forward included: Provision of extensive training to people in both rural andurban areas, collateral to be abolished for borrowers from lower class and the department for loan provisionand repayments to be developed.

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DECISION MAKING PRACTICE AND ITS EFFECTS IN WORK ORGANIZATIONS INTANZANIA

A Case of the Mwalimu Nyerere Memorial Academy

Erasto Maurice Mhagama


This study sought to see if people were satisfied with the extent of their participation in the decision makingpractices in the whole system from the top to the bottom examining the extent of workers and studentsinvolvement in decision- making cutting across all decisions making organs, how the decision makingprocess enhances the attainment of organizational objectives and the weakness or challenges in existingadministrative structure.

In the research methodology, the targeted population was the members of the Mwalimu NyerereMemorial Academy which consisted of the management, workers, who were the teaching staff and non-teaching staff, and students. A sample of 100 people was used, and 90 questionnaires filled. The main datacollection techniques were questionnaires, interviews and documentary review. The findings of this studyrevealed that involvement of workers in decision making process was low due to having a small number ofrepresentatives in the various decision making organs, and the communication systems were not efficient.However, the decisions made in this work organization to a greater extent enhanced the attainment of theorganizational objectives. The findings revealed that there were many decision making organs in this workorganization where both workers and students had representatives. However, the number of representativeswas small. The recommendations of study were that there should be reasonable representation of workersand students. And information should be provided on time and an effective modern communication systemshould be put in place.

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FACTORS AFFECTING APPLICATION OF EMPLOYEE PERFORMANCE APPRAISALIN PUBLIC INSTITUTIONS IN TANZANIA

A Case of Tanzania Automotive Technology Centre (TATC)

Makoye Gervas Mayala


The study deals with the Open Performance Review Appraisal System (OPRAS) implemented in 2004 inthe Public Institutions in Tanzania. It aims at investigating the factors affecting the application of OPRAS atTATC. To this end, the discussions starts by explaining the introduction of OPRAS into Public Institutionsand then narrows its scope and investigate the factors affecting its application at Tanzania AutomotiveTechnology Centre. The research data gathered from 60 respondents at TATC by using questionnairesand written documents. Descriptive statistics, frequency tables and figures have been applied to dataanalysis.

The study identified factors that obstructed the application of OPRAS at TATC including, lack ofemployee’s awareness on the application of OPRAS, individual objectives at TATC were neither a reflectionof the corporate plan nor incorporated fully the individual duties, and poor process of setting objectives.However, evidence also reveals that objectives were not communicated to the subordinates, poorPerformance Appraisal feedback mechanism at TATC and the lack of management support on thePerformance Appraisal process.

In this general review, the Performance Appraisal was ineffective and the discussion concludes withsuggestions such as initiating regular training to all employees, participatory objectives setting, clearcommunication of formulated objectives and finally, management should keep on supporting the subordinatesproviding them with materials and moral support.

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FACTORS AFFECTING EFFECTIVE UTILIZATION OF LOANS FOR SMESDEVELOPMENT

Shekha Diwani,

Masters of Business Administration, September 2009

SMEs constitute a huge portion of the enterprise population in Tanzania. SMEs contribute to employment,GDP, and exports. The main objective of this study was to investigate Factor that affect effective utilizationof loans for SMEs development.

The study was conducted by a way of survey strategy where by forty (40) SMES based in Dar esSalaam. The respondents were divided into two groups that is SMEs owner and SMEs loan officer inNational Microfinance Bank. Descriptive approach was based on the primary data, qualitative analysis of

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data was used, and comparison, explanation and tabulation were used as the method of data analysis.The result revealed that SMEs lack entrepreneur, management and marketing skills. They also faced withthe problem of competition, high interest rate, fail to obtain amount of loan they need, lack of proper placeto sell their product and high production cost. Also it was found that SMEs diversify their loan given byNMB for other current purpose rather develops their business.

The result show that there need to NMB Bank to provide regular education to SMEs, Governmentalso should establish more building like Machinga complex in order SMEs to obtain right place to sell theirproduct, Banks should reduce interest and reduce their condition in order SMEs to obtain amount of loanthey apply for and at a right time. In deed the study has gradually evolved an appreciation of the need foreffective utilization of loans given to SMEs.

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AN ASSESMENT OF SOME PRODUCT, PRICE, QUALITY, PACKAGE, LABEL ANDPROMOTIONAL FACTORS THAT AFFECT CONSUMER CHOICE OF BRAND

A Case of Carbonated Soft Drink Brands in Tanzania Market

Sihiana Ramadhani Mkanda


This study analyzes the consumer buying behaviors of Carbonated Soft Drinks in the Tanzanian market. Itinvestigated critical product attributes that influence consumer preference for a particular brand of carbonatedsoft drink. It examines consumer buying behavior and assesses some product, price, quality, packages,label and promotional issues that affect the choice of brand by consumers. The research aims to contributeto theoretical knowledge and at the same time guide market practitioners in deciding on which of the bestmarket tactics to adopt.

The research methodology consists of a survey of 167 carbonated soft drinks consumers from fiveregions, through use of a standard questionnaire. Chi-square statistical method and technique was used tomeasure the indicators while multiple regression method was used for testing the hypotheses.

Five hypotheses were empirically tested and the results showed that there is a significant negativerelationship between the price of the pack and the choice of brand of carbonated soft drinks. Regardingquality the results revealed that the perceived quality of the product negatively influenced the decision topurchase a carbonated soft drinks brand. The negative correlation might result from the fact that consumersare often judge the quality of the products on the basis of variety of information cues that they associatewith products. Generally, the study found out that the explanatory variables greatly influence the decisionto purchase carbonated soft drink brands on the Tanzanian market.

The study recommends that; carbonated soft drinks companies should redirect their resources to fundprojects that will address marketing issues that are relevant to consumer so as to sustain loyalty. Thegovernment is strongly advised to create a sustainable business environment by revising its taxation, importand export polices to safeguard the local soft drinks industry.

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THE IMPACT OF OPERATION OF AUTOMATIC TELLER MACHINES IN PROVIDINGBANK SERVICES TO ITS CUSTOMERS

The Case of Tanzania Postal Bank

Sosthenes Nyenyembe

Master of Business Administration (Finance Management), November 2008

Many Bank and Financial Institutions in the country installed Automatic Teller Machine (ATM) so as toincrease the flexibility in serving customers. The other purpose is to reduce the risk of holding hard cashand reduce the workload to Tellers. The number of Automatic Teller Machines installed by these Banksand financial Institutions has increased from two in 2000 to 366 in 2007.The overall objective of undertaking the study was to analyse the efficiency and effectiveness of ATM’smachines in providing Bank’s operation and customer’s satisfaction. Other objectives were to assess thelevel of ATM usage knowledge amongst Bank clients, problems experienced by clients and identifying theways to mitigate the problems experienced. Specific objectives were to determine the awareness of ATMusers and the satisfaction level delivered from the services, to investigate the impact on Bank performancein terms of labour, cost efficiency and profitability.

The study area was TPB branches within Dar es Salaam region Data collection involved Interview andQuestionnaires from customers selected on simple random sampling and employees were stratified todetermine the level of satisfaction and benefits accrued out of usage of ATM’s.

The findings of the study includes the full awareness of usage of ATM’S by customers respondent toquestionnaires and confirmed usage of the devices for the past six months before the study. Notablefindings on the Customer’s frequency of usage of ATM noted that most of the customer use the facility onlyonce per month to transact with the bank and only few customers managed to transact more than once permonth. The ATM were located within vicinity of clients as it took within 30 minutes to reach and transactwith ATM machines within Dar es salaam where majority of ATMs are installed. Respondents’ opinion inregards to Price/Cost of transacting with ATM revealed that it cost higher to customers to transact withATM rather than visiting Bank halls. The customers responded that most of TPB branches do not haveBank employees to assist customers who fail to operate ATMs and most of the services are not availableduring Saturdays and Sundays due to outage.

Respondents recommended that the TPB management should address the weakness of Customer careby ensuring presence of TPB staff within ATM machines and installation of generators so as to eliminate theprocess of outage and reduce the cost of ATM transaction cost.

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INVESTIGATION ON INFORMATION EFFICIENCY IN FINANCIAL MARKET

The Case of Dar es salaam Stock Exchange (DSE)

David Allan Dotto


The study was on investigation of information efficiency in financial market, A case study of Dar es salaamstock exchange (DSE), the main objective of the study was to find out the extend of information efficiencyin financial market The study was an attempt to test the efficiency of Dar es Salaam stock Exchange withrespect to Dividends announcement by listed companies. The researcher explained historical backgroundof the study, statement of the problem, objective of the study which was divided into two parts namelygeneral objective and three specific objectives, three research questions, three hypotheses and significanceof the study, limitation of the study, organization of the study were formed. Researcher dealt with literaturerelating to the study, various books and research reports relevant to the study were reviewed.

Researcher also presented research methodology, 10 listed companies were involved into study, out ofthese 6 companies which satisfied criteria set were selected; the researcher used interview, observationsand documentations as the method of collecting data. Data were analyzed by using the following tools,these were: Daily returns, Security returns variability, average security returns variability, average abnormalreturns, cumulative abnormal returns and T-test.The researcher presented and discussed results of the study. Lastly researcher drew the conclusion on thestudy and expressed his recommendations on how to improve performance of capital markets in the nearfuture.

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THE ANALYSIS OF FACTORS AFFECTING HUMAN RESOURCE DEVELOPMENT INPOST PRIVATIZATION ENTERPRISES IN THE MINERAL SECTOR

A Case of Tanzanite Firms in Simanjiro, Tanzania

Lenana Soipey Lenganasa

Master of Business Administration (Human Resource), November 2009

This study is on the analysis of factors that affects human resource development in post privatizationenterprises in the mineral sector, a case of tanzanite firms in Simanjiro, Tanzania. The study was carried outin 31 firms that are situated in the tanzanite mining belt at Mirerani. The firms involved include TanzaniteOne Company and some 30 small scale mining organizations in the area. The purpose of the study was toanalyse factors affecting human resource development in the mineral sector in particular.

The researcher formulated two propositions and two hypotheses to guide the study. The propositionswere used to assess adequacy of initiatives by both government and then mining organizations towards


developing human resources in the sector. Hypothesis one aimed to determine the relationship betweenconditions set by government for the private mining firms and development of human resource atorganizational level. Hypothesis two intended to examine the association between factors that relates tohuman resource and human resource development process in the mineral sector.

Data collection instruments that were used in the study included questionnaires, interviews andobservation. A total of 75 questionnaires were distributed to the sample population for filling. A total of 63questionnaires were filled and returned, that is 84 percent of the questionnaires issued. The collected datawas analyzed using SPSS program, where the responses from questionnaires were summarized, tabulatedand percentages were computed. Other techniques used were correlation analysis, and analysis of variance(ANOVA).

The findings revealed that initiatives taken by both government and private mining firms to develophuman resources in the mineral sector are still inadequate. Descriptive frequencies indicated little effortsmade on policy awareness, organization’s policy, plans, programs and competent human resource personnel.They also provided enough statistical evidence to conclude that there are positive relationships betweenconditions set by government for private mining firms in the mineral sector and the development of humanresource at organizational level. Finally it was found that that various factors that relates to human resourceaffects the process of human resource development among private firms in the mineral sector. Thus themineral sector requires adequate support institutions, more funding and programs, adequate qualifiedpersonnel to support private firms through increased extension services and the ability to place moreincentives to attract graduates from different mineral study institutions to join private mining firms.

Based on the results of the study it is recommended that both the government and private mining firms inthe sector should increase their efforts directed towards the development of competitive local humanresources. The new mineral policy, which is currently underway, should therefore among other thingsconsider a review of the provisions of the human resource regime in mining with aim to address variousfactors that affects development of local human resource.

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UTILIZATION OF SERVICES PROVIDED BY MARKETING RESEARCH FIRMS INDEVELOPING COUNTRIES

The Case of Tanzania and Kenya.

Involatah Kharano Mukana


The main purpose of this study was to assess the Utilization of Services provided by Marketing ResearchFirms in Developing Countries: A case of Tanzania and Kenya. The Marketing Research Industry is a newphenomenon in most developing countries though it seems to be picking up at a very fast rate. Specificallyit aimed at finding out whether factors like attitude and experience/intuition of top managers, culture, costand time taken to obtain information and nature of company do affect the extent of utilization of theseservices. It also sought to find out the services that are mostly sought from MR firms.

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A survey was conducted on 50 companies through structured self report questionnaires and 8 in depthinterviews were conducted to collect qualitative data from top managers in the Marketing Research Industry.Using the Chi square, Kolmogorov Smirnov and Kruskal Wallis tests for analysis, the findings revealedthat some of these factors affected the utilization of these services while others did not. The results of thetests revealed that attitude, cost and culture affected the utilization of these services while managers’ valueof past experience/intuition, time and reputation of firms did not affect the consumption of these services.However, the type of organization did not affect in Kenya but affected in Tanzania due to the differences interms of maturity of the two industries.

The conclusion is that consumption of these services is not only restricted to these factors but otherslike budget constraints, shortage of expertise and awareness.

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ASSESMENT OF SACCOS AND SMEs CONTRIBUTION IN POVERTY REDUCTION,EMPLOYMENT CREATION AND INCOME GENERATION:

A Case of Dar es Salaam Region

Jonas John Mushy

Masters of Business Administration (Finance), November 2008The study’s main objective was to asses the contribution of SMEs in poverty reduction in Dar es Salaamregion. The study based on the SACCOS, SMEs and employees working with these SMEs. Simplerandom, stratified and purposive techniques were used to select respondents from SACCOS, and SMEs.Administered questionnaires and personal interviews were conducted with SACCOS staffs, SMEs owners/employer and employees. A sample of fifty five SACCOS and SMEs staff responded to the administeredquestionnaires. SMEs involved in this study were ten while SACCOS were ten.

The findings of this study revealed that: SMEs contribute greatly in the employment/job creation andincome generation, improvement in technology, and performance of these SMEs in the industry createemployment opportunities. SACCOS were found to have great role in the formation and growth ofSMEs, hence play a vital role in the job creation through the SMEs established. Besides, SACCOSreduce poverty through loans and the activities financed.

Also From the study it is recommended that: SACCOS should provide higher amount of Loans to itsclients so as to create more job opportunities, SMEs should increase the salary to its employees to covertheir financial obligations.

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SOCIAL HEALTH INSURANCE AND CUSTOMER SATISFACTION

The Case of National Health Insurance

Joyce Sumbwe


The purpose of this study was to examine the level of satisfaction of various social- demographic groupsof National Health Insurance Fund beneficiaries. Key health insurance variables included: rate of contribution;benefit package; identity cards processing and services rendered by accredited health service providers.These were analyzed through a sample survey of 120 respondents from regional and local governmentoffices, government ministries and departments and executive agencies.

The Kruskal Wallis and Mann- Witney test were used to examine differences among those groups.Findings revealed high propensity of health services utilization and that the NHIF was serving satisfactoryits intended beneficiaries. There were no differences on perception of the fairness of rate of contributionamong different income groups and non existence of difference in opinions on benefit package offeredbased on gender.

No bureaucracy in applying identity cards and distribution, registration forms were unavailable andwere not user friendly. There was dissatisfaction on accuracy of identity cards. Replacement of identitycard as provided in section 10 of NHIF regulation needs to be redefined. Statistical results indicateddifferences in inadequacy information at providers’ reception counter and absence of medical staff basedon location. The Fund needed to increase members’ awareness on its operation, improve quality of healthservices by conducting regular inspection and effective utilization of its Marketing unit in developing customerfeedback strategies.

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CHALLENGES AND OPPORTUNITIES IN PENETRATING INTERNATIONALMARKETS

The Case of Selected Producers of Consumer Products in Tanzania

Joseph Andrew Kihulla


This study was about challenges and opportunities in penetrating international markets in selected producersof consumer products in Tanzania.

The Findings revealed that export challenges included: variations (increase or decrease) of wages,peoples’ beliefs, family growth rates, and the current global crisis whereby, developed nations where

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consumer products were exported, especially to United Kingdom and United States of America hadregistered “aging population”. Change in taxation system and tax amounts in both Tanzania and importingcountries were explained not favoring consumer product export business. The same applied to changinghabits in consumers’ tastes and fashions, fast technological changes that producers could not cope.Opportunities like: high demand in the foreign market; good cooperation from outside partners; lessbureaucracy in external dealings; were also uncovered and recommendations made.

A descriptive research methodology was used together with SPSS package for uni-variate, bi-variateand cross Tabulations data analysis. Furthermore, a Chi-square model was used to test data reliability andvalidity

The study recommends further study to cover other areas and products to get a biggerpicture of the available export business in Tanzania

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ATTITUDE TOWARD JOB APPLICATION THROUGH E-RECRUITMENT SYSTEM INTHE TANZANIA PUBLIC SECTOR

Elieza Baraka


Due to rapid changes which are occurring in the Information Technology sector globally, the way recruitmentpractice is being carried out is also changing. I have set out in this dissertation to identifY the attitudetoward job applications through electronic recruitment (e-recruitment) system in the Tanzania Public sectorsdue to the existing application gap in developing countries and developed countries. The research focusedinto addressing the said gap mainly with objective of assessing the opinions of the personnel from thepublic sectors as far as the e-recruitment is concerning. The research was based on questionnaire surveywhere by data were gathered through self administered questionnaires responded by sampled of 49 personnelfrom public sectors.The study identified a number of findings which indicates that respondents were III favors of job applicationsthrough e-recruitment system because of its advantages compared to the conventional method though e-recruitment application level is still very low. Furthermore, a number of challenges were given out such asinadequate infrastructure, applicants’ computer skills, less management commitments which hinder adoptionand application of e-recruitment practices.

It is recommended to policy makers to facilitate infrastructure development and be a role model in e-recruitment applications. On the other hand practitioners have to adopt recruitment strategically with aimingto attain the associative advantages out from recruitment systems.

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MICROFINANCE NGOs AND POVERTY REDUCTION IN TANZANIA

A Case Study of VS & LAs under CARE Programs in Coast Region

Renatus Anathory Mchembe

Master of Business Administration, December 2009

There is still a very large gap between the needs of the poor for financial services and the ability of Banksand large Microfinance Institutions (MFIs) to provide these services. This study assessed the impact ofMicrofinance Non-Government Organizations (MF- NGOs) on poverty reduction in Tanzania. A sampleof respondents comprising of ninety Village Savings and Loan Association members and ten NGO leaderstaken from Coast region was used. The research instruments used to collect data from the field werequestionnaires, interviews and observations. The four Null Hypotheses used in this study were: There is nochange in livelihood of borrowers after receiving loans from MF- NGOs; The interest rates charged byMF NGOs doesn’t affect the borrower’s ability to repay the loan; The entrepreneurial skills provided byMF NGOs does not affect the improvement of entrepreneur’s business; and There is no relationshipbetween the amounts of loans provided by Microfinance NGO’s to VS & LA members and the contributionto business growth.

The findings from this study revealed that people’s well being improved after receiving loans frommicrofinance NGOs, e.g. before taking loans, out of 47 people interviewed in Kibaha district, only 6, 7,30, 12 and 4 people were able to pay medical, education, clothes, meals, ownership of assets expensesbut after taking the loans 27, 28, 47, 44, and 20 were able to pay the expenses respectively. Borrowerswere able to repay the loans because the interest rates were low. Training given was focused on how toform and manage VS&LA groups and savings/credit instead of entrepreneurial skills. Amount of loanreceived was found to be not enough to start and expand businesses. It is concluded that MicrofinanceNGOs which are tailor made to suit the needs of poor and the pro-poor people are able to reduce povertyby providing grants and microfinance services to them. Finally it is recommended that MF-NGOs shouldstrengthen training of VS&L members on entrepreneurial skills and give them grants. Large MFIs andGovernment should provide grants and conducive policies to support the development and sustainabilityof VS&LAs.

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THE SIGNIFICANCE OF FACTORS INFLUENCING CUSTOMER PERCEPTIONTOWARDS SERVICES PROVIDED BY TANZANIA ELECTRIC SUPPLY COMPANY

(TANESCO) LTD

A Case of Dar es Salaam Region

Sosthenes Deusdedit Majula Sindaguru


Besides various measures taken by TANESCO to improve its services for social and economic developmentin Tanzania, there remain public outcries and complaints on the quality of TANESCO services. The problemis perception and satisfaction with its services. This work focused on the significance of factors influencingcustomers’ perceptions to TANESCO services in Dar es Salaam region. Non probabilistic convenientsampling techniques in sample selection was employed. Analysis was performed in exploration data analysis(EDA) or sample characteristics and statistical inference (SIA) stages. The computer package used wasSPSS and Ms Excel.

This study revealed that out of 104 informants, 67.3 percent of the respondents had somewhat negativeperception on the quality of TANESCO services, 2.9 percent of respondents had negative perception,29.8 percent of the respondents had somewhat positive perception on the quality of TANESCO services.The factors influencing customers’ perceptions of TANESCO services are not uniform in terms of significanceand magnitude. This study recommends that fighting against theft and vandalism to TANESCOinfrastructures, reducing time taken to respond to emergencies, phone calls, e-mails, customer complaintsas well as corruption among TANESCO employees are indispensable measures. In the near future, it willbe not a bad idea to study other regions which were not the focus of this study.

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ASSESSMENT OF THE EFFECTIVENESS OF COMPENSATION PRACTICES INTANZANIA PUBLIC SERVICES

A Case of Dodoma Municipal Council

Balthazar Katendegwa Murishi


The study assessed the effectiveness of compensation practices in Tanzania public services, focusing DodomaMunicipal Council. Its objectives were to identify types of compensation for public employees and theextent they meet their needs, to determine the criteria considered to compensate the employees, to determinewhether public employees were satisfied with remuneration and to determine sources of income supplement.The study employed questionnaires for 240 selected employees and interviews for 5 members of staff.Findings revealed that majority of public employees were compensated salary and transport assistance onleave and very few of them got allowances, criteria for compensation policy consideration were not adhered


to and majority of public employees were very much dissatisfied /dissatisfied with salary, banks were themain sources of income supplement and financial institutions, SACCOS, borrowing from friends andrelatives and employees own businesses were the least sources of incomes.

The study concluded that majority of the employees were not compensated fairly, salaries and allowancescould not meet employees needs. It recommended that the government should review both salary and allforms of allowances, allowances should be offered to all cadres of employees, trade should be involvedunions when considering compensation policy and salary regularly. Finally, sources of employees incomesupplement should be enhanced with better terms of borrowing.

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ASSESSMENT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)USAGE IN PROMOTING TOURISM SECTOR IN TANZANIA

A case of Hotels in Tanzania

Samwel Mwaisumbe


The main objective of this study was to determine the relationship between ICT usage in promoting hotelbusiness and the increase of guest inflows into hotels which results in to promoting tourism sector inTanzania. The study has focused on the importance of ICT usage in performing promotion activities whenpromoting hotels business that result in to increasing guest inflows. The importance of ICT usage should beregarded as a potential factor for any business development and it is because many people in Tanzania donot participate fully in this technology world which bring about inefficiencies and less productive businessventure.

Only field data that were obtained through structured questionnaires which used to interview 80respondents from different 20 hotels residing in Dar es Salaam and Tanga were used in the analysis withthe help of SPSS. The major findings show that hotels apply ICTs in performing promotion activities,which includes advertisements, sales promotion, personal selling and publicity. The findings have indicatedthat all of the above factors are direct related with the increase of guest inflows in to hotels. It has also beenobserved that there other factors that could not been focused by this study which influences guest inflowsin to hotels apart from applying ICTs in promotion because the findings has indicated that ICT applicationsin to promotion activities has only influenced about 70% of guest who visit hotels.

The results of this study have the following policy implications to the government, public and tourismpractitioners. It is important to reduce ICT running costs that are associated with acquiring and maintainingICT tools and facilities so as to enable many hotels especially those in lower grades to be able to applythese facilities. Operating cost associated with TV air time, internet, telecommunications etc are mostly notaffordable.

Furthermore, ICT training of staff should be implemented in the hospitality sector so as to enable manystaff apply ICTs in all process of their business. The Government should assist in designing an infrastructurethat can connect all different players in the hospitality industry by using internet facilities and other computerizedsystems

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ANALYSIS OF STRATEGIES FOR CUSTOMERS RELATIONSHIP MANAGEMENT

The Case of National Microfinance Bank Plc

Janeth Shango


From time NMB Plc has managed to establish mutually and business relationship that forms bases for itssuccess, reduction of risk and increased customer relationship. However high competitive environment infinancial industry has threatening its existence where long served and potential customers are attracted toother banks.

This situation formed the main objective of the study to examine strategies for building customerrelationship and retention in NMB Plc. The study involved questionnaires with a sample of 100 for internaland external customers selected from NMB in DSM. Data was analyzed using multiple regressions andtwo hypotheses developed to test retention and commitment. Study findings conclude that there is positiverelationship between strategies and the retention of customer as well as commitment of customer to thebank.

Findings imply that business firm must be constantly in close contact with both its existing and potentialcorporate customers and check out every time to ensure the practicability of its policies in daily processing.Thus the study recommends NMB Management to make a clear guide on CRM, Customer segmentation,Develop business to the need of customers and impose more market strategies focus both to employee aswell as customers to strengthen the existing customer relationship in line with the growing banking industryas the ultimate goal for every business in today’s world is to increase its market share through customers.

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FACTORS INFLUENCING PROCUREMENT SERVICE SATISFACTION AND VALUEFOR MONEY IN HIGHER LEARNING INSTITUTIONS

The Case Study of University of Dar es Salaam

Donatha Souvenir Makombe Mugassa


This study explored factors that influence procurement service satisfaction and value for money in highereducation institutions. The study analyzed existing procurement system of higher learning institutions usingUniversity of Dar es Salaam as a case study. The objective of the research was to identify procurementfactors that influence service satisfaction and achievement of value for money. The study employed bothqualitative and quantitative research approaches. Procurement activities included works, goods and services.


The study observed inordinate delays in procurement, untimely deliveries, poor quality deliveries, lack oforganizational procurement plan, and unawareness of Tender Board’s activities by system users andbureaucratic steps, which cause time as well as cost inefficiencies in procurement processes. Othersincluded partially computerized procurement system and lower satisfaction on procurement services renderedto academic institutions.

It implied that procurement service satisfaction and value for money in any procurement system isinfluenced by seven factors, namely, Procurement management system that is fair, equitable, transparent,competitive and cost effective so as to achieve the right cost, right source right quantity, accurate andtimely procurement planning and its execution. Other included supplier’s performance evaluation andfeedback, procurement professional sufficiency (sufficient and competent staff), accurate organizationstructure and management support, computerization of procurement systems, quality supplies and timelydeliveries/completion of procurements. Results have implications to policy makers, management andpractitioner.

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THE ASSESSMENT OF EFFECTIVENESS OF TRAINING PROGRAMME IN PUBLICSECTOR

The Case of Iringa Municipal Council

Japhet S. Joachim


This study was aimed at assessing the effectiveness of training programmes in the public sector in IringaMunicipal Council. In particular, the study examined the criteria used in selecting employees for training;the department responsible for making decisions about training issues; acceptability of training programmesas well as benefits accrued from the training by the council and individual employees.

The population of the study was 84 respondents. The methods of data collection were questionnaireand documentary sources and these were analyzed using content analysis.Findings of the study shows that the training programme of IMC is unacceptable to the majority of employeesdue to the fact that, 51 (60.7 percent) of the respondents were not aware of the existing training programmeand therefore leading us to presume that the training programme of IMC is not effective.Based on the findings of the study, it can be stated that the effectiveness of Iringa Municipal Council

Training Programme is not effective due to the fact that the majority of respondents were not aware onthe existence of training programme.

Therefore, in order to ensure that the Iringa Municipal Council Training Programme is effective, thestudy recommends that: selection of employees for training should based on training needs; feedbackshould be given to staff regarding the training programmes; the current training programmes should berevised to suit the councils requirements and employee needs and finally they should establish a trainingevaluation system to assess the job performance and service delivery of staff.

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FACTORS INFLUENCING LOAN REPAYMENT AND DELINQUENCY ON SACCOSPERFORMANCE IN TANZANIA

The Analysis of Selected SACCOS in Kilimanjaro Region

Nchundi Mayalla Matogoro


This study examined factors influencing loan repayment and delinquency on SACCOS performance inTanzania. The specific objectives of the study were to find out the factors influencing loan repaymentperformance of borrowers; to evaluate the techniques used by SACCOS on screening creditworthyborrowers; and to examine the strategies used by SACCOS for enhancing loan repayment performance.A multiple case study was opted for research design. The cases included were Okoa, CHAWAKUKO,Same Kaya, Mashati, Ushiri and ELCT-ND SACCOS, all in Kilimanjaro region. Simple random andpurposive sampling was used to obtain SACCOS and respondents in the study. Respondents were selectedfrom members, employees, board members and SACCOS’ management. Methods used for data collectionwere interviews, questionnaires and documentary review. A descriptive method was used to analyze dataand it was presented in frequency/ percentages tables.

The overall findings revealed that, loan diversion and multiple borrowing from different institutions werethe most significant factors influencing negative loan repayment performance. It also indicated that, the useof valid salary slip from employed members and the savings capacity of members evidenced to improvethe loan repayment performance. Based on the findings, it is recommended that members and SACCOSofficials’ should be trained in order to build their capacity and entrepreneurial skills so as to invest inproductive activities and enhance loan repayment performance. The suitability of loan repayment periodshould be improved so as to minimize the loan delinquency problem and enhance profitability andsustainability of SACCOS.

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ASSESSMENTS OF EFFECTIVENESS OF TANROADS IN ROAD MAINTENANCE INTANZANIA

Kamaley Ramadhan Kitery


The main purpose of this study was to assess effectiveness of TANROADS in road maintenance in Dar esSalaam. Specifically, the study aimed at finding out the extent to which TANROADS has been effective inroad maintenance in Dar es Salaam, to find out whether the road service level report by TANROADSreflect the actual service level, to find out the extent to which the Road Fund Board (RFB) is capable offulfilling the funds requested by TANROADS. Data was collected through questionnaires, interviews and


review of documentary sources. The study results showed that TANROADS has not been very effectivein road maintenance, and the main reason given is the persistent deterioration and poor quality of theroads.

The study results revealed doubts related to the service level reports that TANROADS produced,because basing on the report and the TANROADS proposed annual budget, RBF disbursed funds asrequested, yet road maintenance was not effectively done by TANROADS, raising the question ofmismanagement of road management funds. Views on ways of ensuring sustainability of roads were alsogiven, among which are the following: service level reports to be prepared by an independent body, on-sitesurvey to be conducted by RBF to determine validity of the service level reports, proper management offunds released by RBF, timely release of road funds, practicing good governance, as well as educationprograms for road users on road matters. This study recommends proper management of funds releasedby RBF, on-site survey to be conducted by RBF to determine validity of the service level reports and alsoconducting seminars and workshops on maintenance and sustainability of roads so as to create awareness.

The main purpose of this study was to assess effectiveness of TANROADS in road maintenance in Dares Salaam. Specifically, the study aimed at finding out the extent to which TANROADS has been effectivein road maintenance in Dar es Salaam, to find out whether the road service level report by TANROADSreflect the actual service level, to find out the extent to which the Road Fund Board (RFB) is capable offulfilling the funds requested by TANROADS. Data was collected through questionnaires, interviews andreview of documentary sources. The study results showed that TANROADS has not been very effectivein road maintenance, and the main reason given is the persistent deterioration and poor quality of theroads.

The study results revealed doubts related to the service level reports that TANROADS produced,because basing on the report and the TANROADS proposed annual budget, RBF disbursed funds asrequested, yet road maintenance was not effectively done by TANROADS, raising the question ofmismanagement of road management funds. Views on ways of ensuring sustainability of roads were alsogiven, among which are the following: service level reports to be prepared by an independent body, on-sitesurvey to be conducted by RBF to determine validity of the service level reports, proper management offunds released by RBF, timely release of road funds, practicing good governance, as well as educationprograms for road users on road matters. This study recommends proper management of funds releasedby RBF, on-site survey to be conducted by RBF to determine validity of the service level reports and alsoconducting seminars and workshops on maintenance and sustainability of roads so as to create awareness.

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IMPACT OF TAX POLICY HARMONIZATION ON THE ECONOMIC PERFORMANCEIN ZANZIBAR

Ahmady Ali Othmani


The study was designed to asses the impact of tax policy harmonization on the economic performance inZanzibar. In carrying out this study, tax performance were critically reviewed for the past 10 years, wheredifferent dimension of share of different taxes on total revenue and GDP were investigated and compared

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between Tanzania Mainland and Zanzibar. Research mostly used on-depth documents review for the caseof economic performance and semi-structured interview and extensive consultation? to assess stakeholders’perceptions about the tax harmonization process and its impact on the various macro economic variables.

The study found that, Tax harmonization has negatively affected the economy of Zanzibar by restrictingthe rate of growth of GDP, consumption, investments, and re-exports trade and favouring the growth ofimports from Mainland Tanzania. This study also found that it is not easy for a single tax policy to cater forthe interest of the two different economies. Socially, the harmonization of taxes have increased tax burdento the Island citizens, increased share of revenue paid by poor, decreased purchasing power and increasedpoverty. In addition, there was a decrease in the volume of trade which is directly linked with unemployment.

Finally, we recommend that, The Revolutionary Government of Zanzibar and Union Government shouldagree on some minimum tax rates to be imposed leaving more latitude for both sides of union. Alternativelythe Government of Zanzibar should have moderate autonomy over the tax regime with respect to CorporateIncome Tax (CIT) and customs tariffs in order to suit its requirements encourage Investments as well asimprove the revenue performance and contribution of tax revenue to GDP. Lastly the Government of bothsides of union should initiate efforts within the Joint Finance Commission (JFC) to address all the uncleartax issues in the Union and Zanzibar in particular.

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ANALYSIS OF THE ROLE OF MICROFINANCE INSTITUTIONS TOWARDS POVERTYALLEVIATION IN TANZANIA

A Case of PRIDE and FINCA in Dar es Salaam Region

Moses George


The main objective of this study was to analyze the role of MFIs towards poverty alleviation. MFIs inTanzania have significant contribution on business growth and increase in incomes. Data were collectedusing primary data and secondary data. The primary data were collected by the researcher from the MFIemployees and clients while the secondary data were collected from books, journals and previous researches.

Analysis of the data was done through chi square test and goodness of fit test and testing of hypothesisenabled to answer research questions. The conclusions made are on whether there is inclusion of poorestpeople. The other analyses were on the relationship between MFIs loans on income (sales) and growth ofbusiness enterprises.

First, it was concluded that the poorest people are being excluded in MFIs services. The analysis showthat the people with no capital are not considered in the loans that are provided as they have no capital toestablish business.

It was further concluded that the amount of loans offered to MFIs clients have positive impact on theirbusiness incomes and the growth of business enterprises. The analysis and test statistic had shown that theMFIs loans have enabled firms to increase sales (income) and the growth of business enterprises.

The study has proposed some policy changes to the government such as provision of guarantee to thepoorest so as to make them bankable. The government should also spearhead the establishment of centralized


database for all clients that will show the status of loans they have taken from different banks. The MFIshave been urged to change their policies on interest rates so as to lower them to establish more branches.

The study has also found out areas for further research in the last sub-section of chapter five whichinclude study on the role of MFIs towards poverty alleviation in rural areas, study on repayment practicesof MFIs clients in rural areas and study of impacts of MFIs meetings on the businesses of their clients interms of time and money spent on travellings to and from MFIs meeting centres.

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FOREIGN DIRECT INVESTMENTS IN TANZANIA: IMPACT ON EMPLOYEESBENEFITS

Aimbora Mathew Swai


The main issue in this study was doubts on employees’ welfare and professional development in ForeignDirect investment. The study attempted to find out how Foreign Direct Investment impacted employmentand technological skills for local citizens in Tanzania. It examined how development policies in Tanzaniaencourage and ensure that the Foreign Direct Investments employ local citizens to promote technical skills.It also assessed the impact of Foreign Direct Investments on job quality of the local employees in technicalpositions.

The study was informed much by various literatures on Development and FDI policies, and theoriesand regulations for the development of human resources through foreign Direct Investment. The study wasqualitative in nature applying phenomenological approach. It was conducted in Dar es Salaam and itcovered one parastatal (TTCL) as a case study. Four methods of data collection were applied and thesewere documentary review, interview, observations, focused group discussion and questionnaires. Thedata were processed by firstly presenting the raw data, categorizing them into groups, reassessing, interpreting,discussing them critically and eventually organizing them for report writing. Generally, it was found that thedevelopment policies were just verbally accepted by top managers and foreigners but they were noteffectively applied during the implementation.

The study concluded that the situation of not adhering to human development policies in FDI resulted tomany negative impacts. The negative impacts found were such as Low Participation of employees inForeign Direct investment, workers to engage in corruption and the raise of antagonism among the staffmembers. However, this study recommended that the decision makers in Foreign Direct Investment onhuman resource development should be transparent and do not violate the set policies. All matters relatedshould be communicated to employees.

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ROLE OF MARKETING STRATEGY ON THE PERFORMANCE OF THE SERVICEORIENTED FIRM

The Case Study of Tanzania Zambia Railway Authority (Tazara) Operations

Christopher Makukula


The main objective of this research is to examine the role of marketing strategy on the performance of theservice oriented firm. Some problems being experienced by some service oriented firms are due to lack offunding, reduced maintenance, reduction in traffic volumes and continuous growing financial deficit. Theresearch methodology employed was descriptive study which uses both qualitative and quantitative approachand was based on a cross sectional study, where a survey was conducted in selected areas or regions.Respondents provided information to the research study to which four hypotheses were tested. First, to betested was the examination of the role of marketing strategy and services marketing whether it had strongerinfluence on performance of service oriented firms. Secondly, it tested the extent to which high price wasperceived to influence railway utilization and performance. Thirdly, it tested whether location had significantinfluence on the performance of the transport service firm. Fourthly, it tested whether high promotionadvertisement cost had an influence on the performance of the service firm. This research developedtheoretical framework that examined the role and factors that influence marketing strategies in globalmarkets with emphasis on transportation service sector. Eventually it used business models, generic strategicmodels, pricing models and gaps models to develop the hypotheses. In pursuit to determine the role ofeffective marketing SERVQUAL model was applied in view of the five dimensions of quality service.Volatile political environments, high degrees of ownership in affiliates and global competitors’ standardizedmarketing strategies encourage firms to tailor physical attributes. Customer relationship management, valuechain and service marketing are used in collaboration with the role of marketing strategy.

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CONTRIBUTION OF SMALL CREDIT TO POVERTY REDUCTION IN THE RURALSOCIETY OF TANZANIA: CASE OF MWANGA RURAL COMMUNITY BANK

Apolinary Andrew


This study was carried out in Mwanga District, Kilimanjaro region, with the aim of assessing the contributionof small credit to poverty reduction in the rural society of Tanzania. The study emanated from the fact thatRural Community Bank which had been operating in the rural areas would have to a certain extent playeda role in reducing poverty in the area of the study. The study was based on the fact that Microfinance hadproved to be an effective and powerful tool for poverty reduction. A total of 93 Mwanga Rural CommunityBank clients were interviewed.


The study indicated that loans secured from Rural Community Bank contributed towards povertyreduction that could be evidenced through a number of ways, such as opening up new investments, abilityto pay school fees, paying for health services and ensuring food sufficiency. Access to loans from RuralCommunity Bank therefore significantly contributes to poverty reduction, improving the standard of livingamong the bank clients loan recipients.

The study made various policy recommendations to the government and further future research tofocus on a deeper understanding of poverty reduction since microfinance is only treating the symptomsthan attacking the real causes of poverty.

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THE ASSESSMENT OF EMPLOYEE TURNOVER IN THE TELECOMMUNICATIONSINDUSTRY

The case of Tanzania Telecommunications Company Limited, Dar es Salaam

Bupe Lusan Ndelwa


At one end of the labour market extreme in the current globalized world, employee turnover is one of themajor Human Resource challenges, while at the other, a strategy for employee retention calls for thorough-going creativity.

The thrust of this study is to assess the reasons for persistent employee turnover in the telecommunicationsindustry, the Tanzania Telecommunications Company Limited (TTCL) being a case study.

Human Resource Managers are endlessly investigating and monitoring the rationale for employees’turnover and constantly initiate, develop, execute and monitor new strategies for their retention. My missionhas primarily been driven by curiosity over why, in spite of retention strategies adopted by TTCL, someemployees still leave the company. The Human resources Department at TTCL headquarters was thefocus of the study, under which a total sample of 80 questionnaires were received from ex-TTCL employees.What emerged from the study, in a nutshell, is that factors influencing departure from TTCL include lack ofcareer development and promotion, higher salaries offered by other organizations, poor management-worker communication, family matters, poor working environment rigid and bureaucratic organizationstructure

It is recommended that Managers should strike a judicious balance between control, enforcement ofpolicies and procedures; and employee commitment.

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THE INFLUENCE OF GOVERNANCE ON THE PERFORMANCE OF SACCOS

A Case Study of Lumumba SACCOS

Katunzi Cyriacus


The study set out to investigate whether good corporate governance has influence in the performance ofSACCOs. Governance is a key component in any success endeavor as it puts structures in place to ensuretransparency, accountability and sound management practices for the benefit of members.

To achieve the objectives the study used a sample of 26 members, 5 staff and 4 members of the probecommittee board who were randomly selected. Data collected by use of questionnaire instrument andinterviews, observation and focus group discussions were computed and analysed to determine the impactof the variables on performance

The findings established that good corporate governance practices positively influence the performanceof SACCOs. Based on the findings, it was therefore concluded that a balanced and well constitutedgovernance structure will lead to attainment of objectives. The following major recommendations weremade: the government should review the legal framework and strengthen supervision of SACCOs. SACCOsshould embark on the provision of financial education to their members to stimulate awareness. SACCOsshould implement proper guidelines and safe governance principles for them to become financial institutionsof choice.

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IMPACT OF MICROFINANCE ON POVERTY ALLEVIATION

The Case Study of PRIDE in Ilala Municipal Council, Dar es Salaam

Sadock Christopher Malima Mugendi


Microfinance is not a new development. Its origin can be traced back to 1976, when Muhammad Yunusset up the Grameen bank. Since then several microfinance institutions came. Microfinance is now beingconsidered as one of the most important and an effective mechanism for poverty alleviation. Understandingthe relationship between small businessmen excellent performance as a result of loans from MFIs has beena key factor in undertaking this research. I mainly concise my dissertations through client’s (the poorpeople, who borrowed loan from microfinance institutions) perspective and build my research based on it.Therefore, the objective of this study was to show how microfinance works, by using group lendingmethodology for reducing poverty and how it affects the living standard (income, saving etc.) of the poorpeople in Tanzania. So on the light of my research objective; I developed my research title, which was: TheImpact of Microfinance on Poverty Alleviation.

To find out that how this mechanism helps poor people to improve their living standards


as: income, savings etc. I chose my sample based on the random sampling technique, from PRIDE officeat Kariakoo in Ilala Municipal Council and I interviewed the people who are already involved in microfinanceactivities. The study therefore concluded and recommended that for poverty alleviation in Tanzania the roleof MFIs cannot be ignored. The contribution of Pride Tanzania in increasing the living standards of loanbeneficiaries is marvelous. In addition the graduation of loans from 5000 to 20,000,000 of loan beneficiariesgives big credit to MFIs on the poverty alleviation.

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THE IMPACT OF MICRO-FINANCE SERVICES ON POVERTY ALLEVIATION

An Empirical Assessment of Selected Households and Micro-Finance Institutions in Kenya

Josiah Omollo Aduda

Ph.D. (Finance) November 2009

The thesis examines the depth of outreach and impact of micro-finance services on poverty alleviation andwomen empowerment in Kenya. The Study employed a cross-sectional impact assessment, which usedboth the treatment and control groups. The Principal Components Analysis was used to isolate and measurethe poverty component embedded in the various poverty indicators and to create a household specificpoverty index. In addition two non-parametric tests, Kolmogorov Smirnov and Mann-Whitney, wereperformed to assess the impact of micro-finance services on women empowerment. The findings of thestudy confirm that micro-finance services have a positive impact on poverty alleviation in Kenya by helpingthe poor people to increase their sources of income which is an essential path out of poverty, hunger anddeprivation. The micro-finance services have a positive impact on the empowerment of women becausethe access to savings and credit gives women a greater economic role in decision-making. The study,however, found that a majority of the poor households in Kenya do not have access to micro-financeservices due to several factors, namely, physical and economic challenges, self-exclusion, sector risks,lack of awareness, negative publicity, cost structure of MFIs, capacity constraints as well as environmentalfactors. The study recommends that MFIs should intensify savings mobilization and establish strongpartnerships with commercial banks in order to obtain sufficient funds for lending to the poor. The studyalso recommends the need for effective prudential supervision of MFIs by the CBK to ensure full compliancewith the Micro-finance Act (2006). The Government should also implement stable macro-economic policiesand develop infrastructure in the rural areas to enhance the capacity of MFIs to alleviate poverty.

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EVALUATION OF MARKETING STRATEGIES FOR PROMOTING CULTURALTOURISM IN TANZANIA

The Case of Cultural Tourism Program

Joseph John Sendwa


There is a considerable potential to promote cultural tourism products in Tanzania. Of particular significanceis the fact that this segment of tourism stands a better chance of alleviating income poverty of local people.To increase the synergetic effect of cultural tourism and community based tourism to alleviating localcommunities’ poverty, the Government established the Cultural Tourism Program in 1996.

However, hither to, there has never been any study conducted on cultural tourism with a view toimproving marketing strategies. Hence this study investigated the effectiveness of the current marketingstrategies employed by Cultural Tourism Enterprises in terms of developing and presenting marketingstimuli directed at selected target markets to influence what they think, how they feel, and what they do.The specific objective was to examine and compare tourists’ prior perception/expectations and actualexperience in order to determine their degree of level of satisfaction toward cultural tourism experience.The expectancy-disconfirmation theory provided a conceptual framework for this study.

The study areas for this research were the CTEs in Arusha, the northern tourist circuit (Ilikiding’s,Moduli Juu, Mto wa Mbu and Tengeru), and CTEs in Morogoro and Tanga, the southern tourist circuit(Chilunga and Pangani respectively).

The paired sample T-test analysis revealed that tourists were satisfied with majority of cultural tourismattributes. These were scenery, accessibility, local peoples’ traditions, friendliness of staff and locals, andprofessionalism of tour guides.

Based upon this study, several recommendations were made to enable the CTEs increase the effectivenessof their marketing strategies. But the most outstanding one is that the CTEs should make a paradigm shiftaway from a product focus in favor of visitor focus based on the conceptualization of cultural tourismconsumption as an experiential process.

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THE ROLE OF CAPITAL STRUCTURE IN FINANCIAL PERFORMANCE

A Case Study of Precision Air Services Company Ltd

Moses Bwana Ng’iela


PW has registered what has been viewed as a good financial performance over the past, nearly onedecade. Among the reasons floated for this is the capital structure of the company and preference for debtfinancing. This study was borne out of the need to establish the presence or otherwise of the responsiveness


of financial performance to the capital structure of PW, hence the following hypothesis: that the financialperformance is directly related to the capital structure of PW, that the evolution of the capital structure hasled to improved financial performance of the airline and that the benefits of such leverage are a reality in thesuccess of the company.

Both Primary and secondary sources of data were used in the study. We analyzed the PW financialstatements by computing the performance ratios in order to achieve our study’s objective. The relationshipbetween the ratios and the relative growth over the 8 years (2001-2008) was subjected to regressionanalyses. Further we interviewed the senior management of the company on the possible explanations forthe marked growth in the company performance.

In order to recognize the role of the alternative factors that may have impacted on performance, otherexplanatory variables as gathered from interviews with the management have been used in this study ascontrol variables, namely: the huge capital outlay in Aircraft purchase, the level of customer service andhuman skills capacity, IATA regulations, IT advancement, the local development of the financial sectorespecially in aviation and debt financing. The impact of all such factors noted in the process of the studywas held constant and only the impact of capital structure analyzed.

Our results indicate that performance indicators used in our study are fairly sensitive to the capitalstructure of PW but do not wholly explain the apparent good performance of the airline. Most of theresults indicate R2 factor of between 40% and 65% which reflects a significant contribution of capitalstructure to the performance.We; however, recommend further research into the other non quantitative factors above to establish theextent to which they’ve influenced the airline performance.

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THE IMPACT OF FORMALISATION OF INFORMAL ENTERPRISES IN TANZANIA

The Case of Selected Informal Sector in Dar es Salaam Region

Andrew Jumbe Mkisi

Masters of Business Administration (Human Resource Management), November 2009

This dissertation presents factors limiting formalization of informal Enterprises in Tanzania, particular in Dares Salaam. Factor that contributed to failure of formalization of informal business are Registration coststhat are made up of a chain of different taxes, Bureaucracy, working premises, financial support fromfinancing Institutions, and good Governance. All these factors were clearly identified and derived fromliterature, empirical study reviews and analyzed data.

The study used phenomenological paradigm and relied on qualitative research approach where bydescriptive primary data were analyzed from BRELA, TRA, and informal businessmen. The sample andsample size comprised of five respondents from TRA officials, five respondents from BRELA Officials,and One hundred and fifty informal business people based in Dar es salaam.

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Result show that many taxes charged during registration process at the initial stage, Bureaucracy, lackof financial support from financial Institutions and good Governance frustrate and hinders formalization ofinformal business. Overall operations were adversely affected by high costs result from registrationprocess that include stamp duty costs, company registration process cost, as well as document keepingfile costs at BRELA.

Result have implication to knowledge, management practice and policy changes. The government isurged to revise its Business regulations in order to support, promote and facilitate formalization of businessso as to increase National income through tax collection from business sector. Furthermore, businesspolicy review should be undertaken to enhance good environment for business to grow, compete, improveservices, and finally contribute to National income through tax.

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AN ASSESSMENT OF THE INFLUENCE OF TRAINING AND DEVELOPMENTPROGRAMMES ON JOB SATISFACTION IN THE HEALTH SECTOR

The Case Study of Ruvuma Regional Hospital Employees

Charles Mulebya


Job satisfaction has been the focus of many research studies because of its importance to employingorganizations. With today’s mobile and floating working population it has become increasingly importantfor organizations to know how they can motivate their employees so as to influence job satisfaction ofworkers. The main objective of this research was to assess the influence of training and developmentprogrammes on job satisfaction in the health sector. The health workers in Ruvuma regional hospital weretaken as the case study to represent the whole. Data collection was done through administering questionnaireswhich had items with five (5) point scales to different health workers. Reading various documents relatedto the study and interviewing key resource persons from the Regional hospital staff were also used in datacollection. A simple random sample of 80 employees was chosen for this study. The nine common jobrelated variables were used to measure job satisfaction of health workers. Data was analysed interpretivelywith the guide of research questions and SPSS assisted in computing percentages and tabulation. Theresearch findings revealed that Training and Development Programmes influenced job satisfaction of workersthrough sense of achievement, co-workers, job content, working harder, relationship with supervisor, useof initiative and working for organisation but not working environment and job security variables. Deliberateefforts should be made by the government through its responsible ministry to improve the ways and themanner in which training and development programmes have been provided and essential training needassessment (TNA) should always be adhered to so as to yield positive impact on job satisfaction of healthworkers.

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THE EFFECT OF AWARENESS AND DELAYS IN THE PROVISION OF EFFECTIVESOCIAL SECURITY SERVICES IN TANZANIA

A Case Study of Public Service Pensions Fund (PSPF)

Chacha M. Nyaikwabe

Master of Business Administration (Marketing) September, 2009

The overall objective of the study was to examine effects of awareness and delays in the provision ofefficient and effective social security services in Tanzania including effects they exert to beneficiaries. Researchquestions were examining the effects of low level of awareness of social security services and the effects ofdelays in services delivery as well as determining clients’ satisfaction with services delivery and how thefund could possibly advocate its products.

Both qualitative and quantitative research approaches have been used to explain fully the researchproblem. A carefully selected sample of 59 respondents distributed across the four major regions of Tanzanianamely Dar es Salaam, Kilimanjaro, Mbeya and Mwanza was studied. The sample constituted clients(members), employers, few retirees/survivors and employees from the Fund who engage directly or indirectlywith daily operations in the Fund.

The findings reveal that, there is a low level of understanding of the requirements for terminal benefitsprocessing because members submit incomplete documents for payments processes. While there aredelays in services delivery to members after and before documents submission, majority of the membersare satisfied with PSPF services at large and very few are aware with the PSPF Zonal offices.

Based on the findings, it can be suggested that, there is a need to observe the shortcoming in relation toservices delivery and put the corrective measures in place with the view to provide better services tomembers.

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THE CAUSAL RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT ANDECONOMIC GROWTH

The Case Study of Tanzania

Joachim Clemence Otaru


Although there is considerable evidence on the link between Foreign Direct Investment (FDI) and economicgrowth in developing countries, the causal relationship of these two variables still remains an importantquestion. Therefore, the study attempts to examine the possible causal relationship between FDI andeconomic growth in Tanzania, during the period of 1975 - 2007 by using econometric model estimation

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together with the Ordinary Least Square technique that adopted and applied for regression analysis usingStata 10 software.

Findings show that FDI has a positive relationship with country’s economic growth for period understudy. While total exports and imports have positive relationship with economic growth, the inflation andnominal exchange rate are found to have negative relationship with economic growth of the country.The Government is advised to consider the above economic growth factors in its policy making machinery.

Specifically, Tanzania to gain from FDI, deliberate efforts on policies should be put in place to attractand channel the same to sectors bearing higher potential for growth and trickle down effects preferablyagriculture and industrial sector.

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THE ROLE OF MFI LOANS ON POVERTY ALLEVIATION IN URBAN AREAS

A Case Study of Retail Traders in Mbezi Luisi, Dar es Salaam

Ahmed Abdallah


The main concern of this study was to examine the extent to which loans from MFIs have been contributingto poverty alleviation in urban areas. Specifically, the study aimed at finding out the level of access to loansfrom MFIs among retail traders, and its contribution to poverty alleviation in urban areas, factors hinderingeffectiveness of MFI loan schemes, as well as getting views on strategies to adopt in order to improveeffectiveness of MFI loan schemes. Data was collected through questionnaires, interviews and observation.The study findings showed that all the respondents had secured loans from microfinance institutions, andthat the loans had been playing a significant role in poverty alleviation, such as through employment creationand business expansion. However, as the initial amount of capital provided was so small, it posed a limit onthe type and size of business enterprise that the borrower would establish.

The study findings also showed a number of factors that hinder effectiveness of MFI loan schemes,such as loans provided being too little, poor business environment as well as loan defaults by some groupmembers. The respondents also gave their views on ways of improving the microfinance schemes, includingincreasing the amount of loans provided to micro-enterprises, providing comprehensive and relevant trainingto borrowers and providing comprehensive and relevant training to borrowers, among others.

This study recommends increasing size of loans provided to micro-enterprises, provision of adequateand relevant training to the borrowers, and the Government to provide conducive environment for bothMFI and MSE.

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ORGANISATIONAL SAFETY AND HEALTH PRACTICES AND THEIRCONFORMANCE WITH TANZANIAN SAFETY AND HEALTH LEGAL PROVISIONS.

The Case of Tanzania Construction Industry

Raymond Ernest Swai

Master of Business Administration Dissertation, September 2008

Tanzania mainland reported occupational accidents during the last two decades standing at an annualaverage of 3,132 accidents. 50 % of these occurred at Dar es Salaam region which is economically themost developed regions hence a vibrant work place and site activities. Therefore the study sought to studyhow and why do construction industry accidents continue to occur while OSHA and other legal mechanismssafeguarding the industry and health are available.Since there were no general theories on the nature of safety and health aspects in construction industry, thestudy employed the phenomenological approach as a theoretical frame work. Primary and Secondarymethods of data collection were also used in the study. The study however employed structured questionnaireand personal interviews as data collection methods. Lickert type scale was used for questionnaire analysiswhile Qualitative and Quantitative methods were used for data analysis techniques.

Seventy eight (78%) percent of the interviews revealed that care for workers’ health in constructionindustry was not adequately provided. Generally the study was able to show that the organisation safetyand health practices in Tanzania construction industry do not conform to the applicable legal provisionsdespite the existence of several regulatory bodies monitoring the industry. The study however revealed thatthe institutional causes and health aspects in Tanzania construction industry were amongst the two criticalcauses which led to poor performance in the safety and health aspects in the industry. The above twocritical aspects consequently led to the construction industry finding itself in a rampant non conformancewith legal provisions thus endangering the lives of the workers.

The study recommended a number of measures to address the problem. These include disengagementof occupational safety and health discipline in the construction industry from the OSHA and establishingthe directorate of construction industry safety in the MoID responsible for safety and health implementationin the Tanzanian construction industry. The study concluded that the construction industry, being one of themost important and most dangerous industries in any country, needs a more rigorous regulatory mechanismto control its activities.

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THE IMPACT OF POOR PROCUREMENT PLANNING ON THE ORGANIZATIONOPERATIONS

The Case of Precision Air Services Limited

Leonard Christian Makombe

Master of Business Administration (MBA) May, 2009

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Procurement Planning is one of the aspects that contribute significantly to the profitability of the organizations.In recent years, many organizations have revealed bigger losses and sometimes forced to close theirbusiness operations mainly due to bad procurement practices. The Government insists its institutions tohave Procurement Plans, as may be depicted in Procurement Act of year 2004. Procurement Planningassists the institutions and organizations on good allocation of scarce resources that are available.In recent years there has been complains in different news media on over and under procurement ofworking tools and materials in different organizations and government institutions, this has been the motivebehind this study.

The aim of this study was to identify factors that contributed to poor procurement planning, and theirimpacts on organization operations. The study was conducted at Precision Air Services Limited, whereemployees who work in different departments were the respondents. The survey methodology was usedto collect the quantitative data using simple random sampling and 40 respondents were contacted in total.The research findings revealed that, lack of qualified staff and procurement planning had an impact on theprocurement performance of the Precision Air Services Limited.

The study recommends that Precision Air Services Limited should recruit qualified staff to handle theprocurement activities. It should also train the current staff who are involved in the supply chain andintroduce the procurement policy and over hall the whole procurement process in order to attain betterperformance.

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ASSESSMENT OF EFFECTIVENESS OF PROMOTION TECHNIQUES UPON SALESPERFORMANCE IN THE TELECOMMUNICATION INDUSTRY

The Case Study of Tanzania Telecommunication Company Ltd

Francis Sianga Moshi

Master of Business Administration (Marketing & Finance), November 2009

The study assed the effectiveness of promotion techniques upon sales performance in the telecommunicationindustry.

Three objectives guided this study namely, examining the extent to which advertisements influenceTTCL customers in buying the services, examining the extent to which sales promotion have impact onoverall sales performance and lastly to ascertain the promotion techniques which have most impact oncustomers buying behaviour.

The qualitative and quantitative data were used to generate reliable data for the study. Primary datawere collected from study area using structured questionnaires and observations, secondary data wereobtained by reading the existing literatures. The research data were analyzed by using Statistical tools. Theoverall findings revealed that effective promotion techniques have significant influence on sales performance.In all the promotion mix, personal selling has been effectively used by the organization, and thereforeproved to be handy especially for corporate customers. Nonetheless the intensity of the influence of marketingpromotion variables on consumer buying decision varies according to the degree of stimulation influencedby other factors like social groups, and the type of the product promoted.

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INVESTMENT APPRAISAL (DECISION) TECHNIQUES IN FOR-PROFIT PRIVATESECONDARY SCHOOLS IN TANZANIA

The Case of Kinondoni District in Dar es Salaam

Amos Ludzabiko Mgongolwa


The study intended to investigate the investment techniques used in For-Profit Private Secondary Schools,belonged to individuals, Groups and Companies run for aim of profit and maximizing the owners wealth.The sample of eight schools were selected at random, from the sample selected after studying, all werefound to be individual owned schools except one.The data were analyzed using SPSS computer program. By using the frequencies, Means, and standarddeviations tables and figures were use to reveal the findings. In capital budgeting techniques study revealedthat Payback period, Internal Rate of Return and Net present Value are commonly used. The finding wereconsistent to Sangsters (1993) when means were used; It was also revealed PB being the most common.IRR and NPV consider the time value of money where PB does not, also that IRR is more popular thanNPV. Risk, currency inflation, social and environmental impacts in the capital budgeting techniques alsoconsidered; social and environmental impacts were mainly planned in financial perspectives.

It recommends on multiple usage of techniques, seminars conduction for entrepreneurs so as to use theopportunity of education provision as business since it is still an infant phenomenon and therefore there isa market. The studies should aim in finding all developing model to ascertain clearly which method will bemore useful for For-profit Private Secondary School investment in Tanzania Setting that any one whowould like to establish such school will use it and be successful.

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IMPACT OF THE WORLD FINANCIAL CRISIS TO THE ECONOMY OF TANZANIA: AREFLECTION FROM MACROECONOMIC INDICATORS

Albert Maneno


Towards the end of the third quarter of the year 2007, several financial corporate in USA and UK collapsedas a result of excessive defaults in low quality mortgages named sub-prime mortgages. The collapse weakenedmajor economies and eventually spread to other economies ending up in the world financial crisis.This research has attempted to evaluate quantitatively and qualitatively whether Tanzania’s macroeconomicindicators reflect any signs of our economy being impacted. Three phases were defined, Phase I (Jan.2003-Dec. 2005 in HE. Mkapa’s era, and two other 21 months’ each, Phases II and III in PresidentKikwete’s era covering pre and during crisis periods. The study was secondary data based mostly obtainedfrom BOT reports and other reliable sources including the government web site. Data were cleaned andtested for significance of means’ differences between two Kikwete’s eras using ANOVA and Brown-

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Forsythe and Welch F tests. The tests were done on absolute values, month on month growth percentagesand indexed percent growth, where the first month of the phase was fixed at 100% and the rest grown onit.

Except for value of loans, exports and, government debt which did not indicate signs of being impacted,all other indicators tested (financial instruments, FDIs, Interest and exchange rates, employment levels andforeign reserves) indicated signs of being impacted. Although impacted, the monthly percentage growthsdid not indicate abrupt changes which is a sign of economic stability. These findings triggers the need forworld governments entering global/regional unified and enforceable economic pacts, a push for enhancedIMF and world bank roles in managing world economy stability, need for strengthening financial sectorregulations to manage negative side of highly increasing “financial engineering” and the need for governmentsto invest in in-depth study on financial crises to establish the best ways to build effective economic ‘shockabsorbers”.

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IMPORT PERFORMANCE DETERMINANTS IN TANZANIA CONSTRUCTIONINDUSTRY

Robert Suphian


Tanzania construction industry policy tells the goal of the industry development as to be a competitiveindustry that will be able to undertake most of the construction projects in Tanzania and be able to exportits services and products. This is contrary to the fact that the industry is dominated by foreign servicesproviders to the tune of approximately 70 percent in terms of market share. This study employed aneconometric model estimation to answer the question of what determines the import performance ofconstruction services in Tanzania for the period 1985-2008. The Ordinary Least Square technique adoptedand applied for regression analysis using Stata 10 software. Findings reveal that four out of five variablesare significant in determining the performance of construction services imports to Tanzania. While the totalcountry GDP is insignificant, both FDI inflows to the industry and cost of construction or affordabilitynegatively determine the construction services imports of Tanzania. Both productivity and total countryimports are positive determinants for the construction services imports. To safeguard the existence,participation and performance of local construction services providers, the Government is advised toconsider the above determinants in its policy making machinery especially encouraging investment basedservices imports which in the long run will build capacity of local construction services providers andultimately reduce the foreign dominance of foreign providers.

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AN ASSESSMENT OF MOTIVATION AND INFLUENCING FACTORS FOR ICTADOPTION IN TANZANIAN ORGANIZATIONS

The Case Study of Tanzania Telecommunication Company Limited

Romed Kavenuke


The purpose of this paper is to report upon research undertaken of motivation and influencing factors forthe adoption of information and communication technology (ICT) in Tanzanian organization. This paperseeks to explain how cost reduction, service provision effectiveness, factors influencing the adoption andproblems associated with adoption.

The sample was purposefully limited to 120 respondents covering TTCL management, employees, andcustomers who are IT-literates telecommunication organizations with need to adopt ICT for their operationaleffectiveness. The research observed that ICT adoption at the organization level are constrained by alimited budget for ICT investment, commitment from other management team, issues of ICT skilled personnel,and ICT implementation associated problems. Also in the organizational level, there are constraints such asbasic levels computer experience, time available to learn, and the identification of clear benefits of ICT use.This also includes time available to share information, quality of personal contact and geographical distance.The driver and barrier models presented indicate that ICT innovation, implementation requires intensemanagement interventions to facilitate a supportive workplace environment that strongly links personal andorganization resource investment with demonstrated outcome benefits. This study provides rich insights ofthe dynamics of ICT innovation implementation. Few studies in the literature have provided such insightsthat link the organizational levels.

The study generally revealed that, service delivery effectiveness is more effective in motivating organizationsto adopt ICT in their operations, this study suggest that, Tanzania Telecommunication Company Limited(TTCL) should open doors for further ICT innovations in order to enjoy the competitive advantage in thetelecommunication industry.

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HUMAN RESOURCES MANAGEMENT PRACTICES AND EMPLOYEEJOB SATISFACTION IN PRIVATE WORK ORGANISATIONS: A TANZANIAN

CONTEXT

Francis Kasavubu Michael

PhD Business Administration in Human Resources Management), October 2009

The main objective of this study was to investigate the nature of relationships between the Hard and SoftHuman Resources Management (HRM) practices and employee job satisfaction in private work

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organisations in Tanzania. This was due to labour unrest that manifested itself through a series of industrialconflicts between the employees and the management of private work organisations in Tanzania. Thestudyapplied Structural Equation Modelling statistical tool for data analysis with a sample of 299 employeesfrom Private work organisations which fell within the manufacturing, service and trading industries locatedin Dar es Salaam, Arusha, Kilimanjaro and Morogoro regions of Tanzania. Findings of the study revealedthat the Soft management practice relates positively with the Compensation, Labour Relations, PerformanceAppraisal, Job Design plus Training and Development Human Recources functions. Likewise, the HardManagement practice relates negatively with the Compensation, Labour Relations, Performance Appraisal,Job Design plus Training and Development Human Resources functions. This implies that the Soft andHard Management practices lead to employee job satisfaction and job dissatisfaction respectively whenapplied in private work organisations in Tanzania. Human Resource Management policies in workorganisations therefore need to be formulated basing on more accommodative management tendenciesthat are inclined towards the Soft HRM practices in Tanzania to engender employee job satisfaction.

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THE IMPACT OF MARKETING MIX ELEMENTS ON THE PRINTING INDUSTRIES’PERFOMANCE IN TANZANIA

Selected Printing Companies in Dar es Salaam

Willy Geofrey Urio

Master in Business Administration, November 2008

The main objective of this study was to examine the effectiveness of the marketing mix elements on theprinting industry’s performance in Tanzania with specific reference to Dar es salaam.

The study involved 45 respondents in which a sample of 30 respondents from printing companies wascategorized into small, medium and large scale. These gave their opinion regarding how they appliedmarketing mix elements in their business to enhance performance. Similarly 15 respondents from printingcompany’s stakeholders were interviewed to give their opinion on how they evaluate the general performanceof printing companies in terms of the speed of delivery, the quality of products, pricing methods andpromotion activities.

This research used interview and questionnaires design where officials from printing firms and users ofprinted products were interviewed to give their opinion regarding how they executed the elements ofmarketing mix in their operations.

Data were analyzed using (SPSS) in which frequency tables, cross tabulations, pie charts and barcharts were used for the presentation and interpretation of data.Findings reveal that marketing mix elements which are products, price, promotion and distribution (place)play a big role in enhancing performance of printing firms. The findings also show that there are otherfactors to be considered including networking, maintaining good will and security of the document inenhancing the organizations’ performance.

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CHALLENGES ENCOUNTERED BY BANKS IN LENDING TO SME’S IN TANZANIA

Alfred Shao


This study presents an assessment of the challenges encountered by banks in lending to SME’s in Tanzania.From the previous researches we noted that most researches were done on the problems facing SME’s inaccessing loans and other financial services. The outcome of most researches indicated the lack of creditsupport to SMEs as a problem created by banks, the challenges encountered by banks in lending toSME’s have been overlooked. Which justify the need for the study.

The method of data collection deployed in the study was predominantly a descriptive census fieldsurvey. Questionnaires were developed in line with the objectives of the study, and were used in conductingthe interviews.

The study revealed that there are challenges encountered by banks in lending to SME in Tanzania includes;poor quality of the financial statements, insufficient collateral, lack of market information, and unrealisticbusiness plans/proposal.

The study therefore recommended for the government to establish SME learning centers, to introducea Credit reference bureau, And banks should provide financial advice to all their SME clients, Banks toprovide personalized services and assist their clients grow their businesses.

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ASSESSMENT OF INTERNAL INCOME GENERATION PERFORMANCE IN PUBLICHIGHER LEARNING INSTITUTIONS

The Case of University of Dar es salaam

Agnes Kokwangisa Mutalemwa


Lack of sufficient funds in public higher learning institutions is a common problem which affects the operationof Tanzanian universities like the University of Dar es Salaam. Since funds are central to the smooth runningof higher learning institutions, the researcher conducted the present study with the view to assessing theperformance of internal income generating activities done by the Dar es Salaam University. The researcherused questionnaires and interviews to collect data from members of staff of the University of Dar esSalaam. The data sought was on income generating activities, their performance and management of thefunds generated. This data was supplemented by secondary data.

Generally, the study found that although income generating activities in place at the University of Dar esSalaam perform satisfactorily, there are still other opportunities, which if seized and utilized well, wouldgenerate additional funds for the university.

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University managements in the country should ensure that universities offer quality education in terms ofteaching and research. This is significant because provision of quality education attracts many clients whopay tuition fees and other charges. Finally, universities will operate well in future if sources of funds areutilized effectively.

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FACTORS THAT HINDER SMALL AND MEDIUM ENTERPRISE CUSTOMERS TOACCESS CREDIT FROM COMMERCIAL BANKS IN TANZANIA

The Case of CRDB Bank PLC

Esther Peter Njawa


The main objective of this research was to investigate whether or not there are factors that hinder SMEs’access to credit from commercial banks in Tanzania. CRDB Bank PLC was taken as the case study of theresearch. In addition, the study assessed contributions from commercial banks in Tanzania focusing onprovision of funds (credit) to SMEs’ performance and growth.

Bank credit provides different opportunities on funds when raising short and long term capital fromformal and informal financial markets. Credit provides the basis for increased SMEs’ production throughefficiency specialization of businesses and functions. The measure brings together skilled managers withsmall financial resources and those who have substantial resources but who lack Management ability.

Data collection was done through questionnaires, interviews and documentary review. Research findingsrevealed that there are factors that hinder SMEs to access credit from commercial banks in Tanzania.Factors include lack of collateral, bank policy as well as bank procedures on SMEs’ credit, SMEs’ poorbusiness management and SMEs’ small business size.

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ASSESSMENT OF FACTORS AFFECTING SERVICES QUALITY OF UPCOUNTRYBUSES IN TANZANIA

Raphael John Kisoka


The study investigated factors that influence quality of service offered by upcountry buses. The four mostfrequently mentioned dimensions used in evaluating upcountry bus services were chosen for this studynamely: Availability, Reliability, Flexibility and Security. In order to achieve this objective both desk andfield research methods were used which were both descriptive and analytical. Furthermore, extensive fieldresearch was undertaken to obtain relevant data from a random sample of 157 passengers by means ofquestionnaires and interviews, which were then analyzed statistically. The findings of the study reveal that;


Availability, security, flexibility and reliability to a great extent influences the quality of service offered byupcountry buses. The findings have also revealed that the quality of service to a great extent influencescustomer satisfaction, which in turn has a significant influence on customers’ intention to recommend theuse of the service. The study also found out that availability and flexibility were the most important factorsinfluencing the quality of service in upcountry buses.

The overall findings of the study indicate that there are great possibilities for more improvement in thequality of service offered by upcountry buses if the factors identified are taken into account during thewhole process of service delivery. The study recommends that the Transport Regulatory Authority commonlycalled SUMATRA should effectively ensure the quality of transport services dimensions in order to improvethe quality of service due to its relative importance as revealed by passengers.

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THE IMPACT OF RELATIONSHIP QUALITY ON CUSTOMER RETENTION

A Case of Mobile Phone Companies in Tanzania

Nancy Crispin Mwanyika


The mobile phone market in Tanzania has grown incredibly fast over the past decade and the introductionof new networks and services looks set to further fuel that growth. As market growth slows or as marketsbecome more competitive, firms are more likely to attempt to maintain their market share by focusing onretaining current customers. Customer retention has been advocated as an easier and more reliable sourceof superior performance. To improve customer retention, firms initiate a variety of activities, includingprograms on customer satisfaction, complaint management and loyalty.

This study was conducted on the mobile phone industry in Tanzania. One hundred and sixty fiverespondents from the 3 districts of Dar es Salaam were interviewed and their responses were analyzedusing SPSS. Chi-square tests were applied to determine the association between categorical variables.

The results indicate that there is a strong association between customer relationship quality and customerretention. The implication of this result is that customer service quality is the most significant of all themobile service attributes in Tanzania.

Policy makers must create a conducive environment to enable Telecommunication companies to extendservices cost effectively to a wider context. The study has also empirically tested how satisfaction isrelated to customer relationship, retention and the contributions of service quality towards these constructs.

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INDEPENDENCE AND GENERAL AUDIT ENVIRONMENT OF INTERNAL AUDITORSIN SMALL AND MEDIUM SIZED BANKS IN TANZANIA

Jacqueline Felix Tinkasimile

Master in Business Administration

The independence of internal audit function of an organization has been the topic of a considerable amountof attention and this resulted to a debate over corporate governance and the board’s supervision of internalcontrol mechanisms (IIARF 2008). The Code of Corporate Governance 2001 of Singapore amended2005 recommends that the company should establish an internal audit function that is independent of theactivities it audits. The Corporate Governance Committee (CGC) also suggests that there should besafeguards to protect the independence of internal auditor as such it recommends that internal audit shouldreport direct to the Chairman of the Audit Committee. CGS also stated the need to have Audit Committeeto ensure that Internal Audit function is adequately resourced and has appropriate standing within thecompany. The code recommends that Audit Committee at least annually should ensure the adequacy of theinternal audit function, and how it meets stake holder’s needs and interests.The purpose of this study was to examine independence and general audit environment of internal auditorsin small and medium sized banks in Tanzania.

The study was conducted by way of survey by administering questionnaires. Out of sixty distributedquestionnaires forty six were received back. The responses were entered to a set of Excel spreadsheet foranalysis. Responses from each questionnaire were input into respective cell. Responses entered from eachcategory were added to obtain totals. Each category was given weights in frequency and percentageterms from population.

The study results confirmed that Internal Audit reports to Board Audit Committee but the Board AuditCommittees were not seen effective to enhance internal Audit independence. Issues such as of setting andapproval of Internal Audit budgets, compensation were left to management. Other issues were lack ofprivate meetings and close follow-up of Board Audit Committee with internal auditors. The results confirmedthat Internal Auditors desires that Board Audit Committee should be responsible for governance andperformance evaluation of internal audit function, ensuring internal audit has adequate resources to dischargeits increasing scope of activities. The study results has enabled researcher to come up with recommendationsto each governance group on how to effectively ensure internal audit independence by addressing BoardAudit Committee, Management and Internal Auditors themselves. Some of the recommendations includeAudit Committee should work very close with Chief Audit Executive to ensure they understand internalaudit observations and business processes in order for them to be effective in pursuing oversight function.They should also ensure there are sufficient resources for internal audit function by discussing internal auditbudget with Chief Audit Executive. On the side of management, internal auditors should be given chance toparticipate in all projects in order to understand all processes, and be proactive in noting control weaknessesand risks involved. Management should understand that, Internal Audit reporting administrative to theChief Executive Officer does not prohibit internal auditors from reporting noted weaknesses from executivemanagement. They should ensure good corporate governance to minimize the conflict that may arise wheninternal auditors report their weaknesses. Internal Auditors should strive to go with the pace of increasingresponsibilities so as to satisfy various stakeholders’ interests.

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EFFECTIVENESS OF INTERNAL AUDIT IN FRAUD DETECTION IN TANZANIACOMMERCIAL BANKS

Godfrey Nimrod Sigalla


Internal audit processes are integral part of fraud fighting functions in organisations. The main thrust of thisresearch was to explore the effectiveness of internal audit function in fraud detection in Tanzania commercialbanks. It also examined ways through which internal audit function and other functions can further helpfraud detection in Tanzania commercial banks. Given the nature of the research, it was deemed appropriateto use the survey approach with deployment of questionnaires to selected commercial banks, from whichthe researcher believed that data would be a fair representative of the commercial banking industry inTanzania.The study found out that analytical reviews, independent confirmations and inquiry techniques are effectiveways of detecting fraud. It also found that other ways through which fraud can be detected includes use offorensic accountants, continuous auditing, staff rotation, whistle blowing and fraud reporting. The studyalso found that relevant training has a direct impact on internal auditors’ ability to detect fraud.

For effectiveness of internal auditors in fraud detection to be more pronounced, it is recommended thatcommercial banks’ management should extend more support to their respective internal audit functions interms of training, resources and general attitude change towards internal audit. Management of commercialbanks should consider staff rotations, introduction of continuous auditing and defining clear and reward-full whistle blowing channels to supplement the existing fraud fighting efforts. These initiatives, if implemented,will go a long way in enhancing internal audit capacity to effectively detect and prevent significant frauds incommercial banks in Tanzania.

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FINANCIAL SUSTAINABILITY OF MEDIA INDUSTRY IN TANZANIA

The Case of Selected Radio Stations and Newspapers in Iringa and Dar es salaam Regions

Jacob Gabriel


The main objective of this study was to investigate the financial sustainability of media industry in Tanzania;a case of selected newspapers and radio station in Iringa and Dar es Salaam regions. Since 1990s, Tanzaniahas been experiencing the emergency and mushrooming of newspapers and radio stations. Current statisticshave shown that Tanzania has 53 radio stations and 31 active newspapers. Deep consideration for thesemedia houses has been taken to their great role they play in the Tanzania’s social-economic development.The study examined income generating practices to ensure financial sustainability in these media housesbasing on the current business environment in the country.

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Data were gathered through three methods. These are interview, focus group discussion andquestionnaire. The findings of the study indicated that newspaper and radio stations face stiff competitionin terms of limited financial resources from both advertisers and sponsors. However, these media housesare striving hard to partner with companies and different sources of revenue for the purpose of beingfinancial sustainable. It was further revealed that there are a lot of businesses that could be used to generaterevenue and make newspapers and radio stations financially sustainable, but advertising culture has notgrown enough, and thus threatening media sustainability in the country. The findings revealed that,mismanagement of fund, physical infrastructure, readership habit, lack of support for training opportunities,unclear training policies, business and management skills; low salaries which have caused high labor turnoverand entrepreneurial skills have shown to have impacted the smooth growth of newspapers and radiostations in the country. The study also discovered that the increasing number of advertising agencies havenegatively affected financial sustainability through charging these newspaper and radio station exorbitantcommission.

In the light of the findings, the study recommended that the newspaper and radio organizations shouldstrive and diversify their source of revenue, find and partner with public and private businesses that willprovide adverts and sponsorship to generate revenue and technical support. Newspapers and radioorganizations should provide and find support on short and long training opportunities and create strongnetwork to ensure their employees are paid and assured of good working condition for sustainabilitypurposes.

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ASSESSING BARRIERS TO TRADE IN HIGHER EDUCATIONWITHIN THE CONTEXT OF THE GENERAL AGREEMENT ON

TRADE IN SERVICES (GATS) IN TANZANIA

Mohamed Athuman Semkunde

Master of International Trade, July 2009

This study explains barriers to trade in education within the context of the General Agreement on Trade inServices (GATS) in Tanzania. The study mainly focuses on assessing barriers to trade in higher educationusing time series data for the period 1980 to 2007. It employs econometric analysis in which the OrdinaryLeast Square technique is adopted and applied for regression analysis. Stata 10 is used for econometricanalysis. Econometric findings show three out of five variables were significant on contribution to dynamicsof international mobility of students to Tanzania. The estimation results for the regression equation showthat the unit increase of GDP per capita, tertiary school enrolments and teacher student ratio are the keydeterminant of international students to flow in the higher learning institutions in Tanzania.

It is recommended that the government should be aware on increasing the number of enrollments inhigher learning institutions. Also the policy makers need to understand that there is a significant positive linkbetween trade in higher education and economic growth processes. Apart from that, there should beencouragement of the private sector and foreign providers to invest in higher education sector by formulatingappropriate higher education policy that accommodates liberalization processes within the context of GATS.

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IMPACT OF COMMERCIALIZATION ON FINANCIAL PERFOMANCE OFMICROFINANCE INSTITUTIONS IN TANZANIA

Juma Buhimila


This study examined the impact of commercialization to financial performance and outreach of MFIs inTanzania. The question of concern is on profitability and how MFIs adhere to the social mission of reachingthe poor while they scale up and commercialize. The study examined nine MFIs which have their datareadily available in the mix market; these are taken to be representative of the Tanzania MFI’s industry.The study assessed the status of Tanzania MFIs commercialization, the extent of the mission drift and theimpact of commercialization on financial performance of the MFIs.This study employed the commercialization framework, trend analysis and regression analysis to assessthe appropriate indicators in each aspect.The results indicate that there is a general low level of commercialization, no significant mission drift andinsignificant contribution of commercialization on financial performance the MFIs in Tanzania.

Commercialization of microfinance in Tanzania holds the promise of capitalizing on the achievements infinancial performance and outreach. The general improvement in MFI’s financial self sufficiency and efficiencyare promising but the industry is far from achieving all potential benefits of microfinance commercialization

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ASSESSMENT OF THE FACTORS THAT AFFECT THE DEVELOPMENT OF CAPITALMARKET IN TANZANIA

The Case of Dar es Salaam Stock Exchange

Sesilia J. Nzenga

Master of Business Administration (Finnance), November 2009

This research made an assessment of factors that affected the development of Capital Market in Tanzania.The study based on the premises that there were notable developments of securities market in the country,but the public response was still small. The research was conducted at Dar es Salaam Stock Exchangespecifically in Dar es Salaam where most of the securities market stakeholders in Tanzania were based.The data was collected through documentary sources, focus group discussion and questionnaires. Simplelinear regression analyses and Chi-Square test were applied to determine the relationship betweenindependent and dependent variables.

Results of the data analysis using regression and Chi- square analyses provided evidence to support thehypotheses formulated by this study, implying that significant relationships exist between capital marketreforms, transaction costs and information disclosure with the growth of Capital Market in Tanzania. Itwas concluded that capital market reforms have positive effects, while transaction costs and informationdisclosure have negative effects towards the growth of capital market in Tanzania. It was recommended

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that the Government, CMSA, DSE and the brokers should educate and inform the public concerning theoperations of stock market through training, promotion, seminars and media. In addition to that, issuerswere argued to be ready to grab the opportunities available in the capital market, rather than keeping theirfirms away from the public for fear of disclosing affairs of their companies as well as fear of dilution ofcontrol.

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THE IMPACT OF NETWORKING ACTIVITIES ON PERFORMANCE OF SMES:

A Study of Tanzanian Manufacturing Firms.

Issack Shimba Allan

Ph.D. (Business Administration), September 2006

This research was conducted between 2000 and 2005, focusing on the impact that networking activitiesamong owner-managers of Small and Medium Enterprises (SMEs) have on performance of their firms.Networking activities were examined in terms of actor-bonds, activity linkages and resource sharingprocesses; while performance of firms was analysed on the bases of financial results, innovation andlearning, internal operations and the extent to which firms meet their customers’ needs. The findings haveshown that establishment and deployment of networks support performance of enterprises. In particular,better performance was revealed in the areas of services to customers, innovation and learning, internaloperations and financial results.

The findings imply that networking activities are instrumental in enhancing performance of SMEs inTanzania and other developing countries, especially in the African context. Thus, SME owner-managers,the government and other stakeholders who deal with the SMEs’ sector need to understand that thedevelopment of this sector can not only be brought up through interventions related to financial support,but also from deployment of appropriate networking skills and attitudes, which support firms to leveragetheir resources. This is because networking activities among SME actors enable enterprises to overcomehurdles, which for many years have been observed to hinder development of SME sectors in developingcountries. These include those associates with newness, smallness and isolation of business undertakings.

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THE ROLE OF PROMOTIONAL SERVICES IN ENHANCING TANZANIACOMPETETITIVENESS TOURISM AS AN ILLUSTRATIVE CASE.

Julitha Ndamugoba

Master of International Trade, December 2006

Tanzania tourism sector is among the sectors with a great economic growth potential. It provides a substantialamount of foreign exchange earnings and employment. It also stimulates other sectors like agriculturethereby contributing to the economic growth. Its contribution to the Gross Domestic Product is about18%, but this is very minimal compared to country’s potentials of the industry. The nation has yet to exploit


this sector’s full potential as a way of making Tanzania a favoured tourist destination tremendously. Marketingof tourist products is an essential element to promote Tanzania’s desirable tourist destination.

The infrastructure of marketing of Tanzania tourist products is in place and destined in Tanzania TouristBoard and Diplomatic missions abroad. The two institutions depend on each other for effective Tanzaniatourist attractions promotion. This study investigates into the status of tourist promotion in Tanzania, capacityof the two promotion institutions, constraints to effective promotion and ways of improving the touristattractions promotion especially by the Diplomatic missions, Tanzania’s commercial agents so that Tanzaniabecomes competitive in the tourist sector.

The findings reveal a severe capacity problem (budgetary and human resource). Also the sector continuesto face general deterioration of supportive infrastructure, particularly those related to accessibility andreliability of international and land transport as well as poor information technology facilities. The inadequatequality accommodation, high operational costs and a weak linkage between the two tourist attractionspromotion institutions were also identified as bottlenecks.

Policy recommendations aiming at overcoming the identified problems form part of this study. Therecommended policy options which relate to improved tourist attractions promotion will complement otherefforts by the Government of developing and utilizing tourist attractions through improvement in touristrelated facilities and services which would boost this sector’s performance tremendously.

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FACTORS INFLUENCING UNDERUTILIZATION OF DISCOUNT VOUCHERS INACQUISTION OF INSECTICIDES TREATED MOSQUITO BED NETS

The Case of Women in Lushoto District-Tanzania

Pelagia Pesha Muchuruza


Malaria is a public Health problem in Tanzania for quite sometimes now. The most affected populations arewomen and children less than five years. Various interventions are in place for malaria control. The use ofinsecticides treated mosquito nets (ITNs) is one of the interventions. To enable women to get ITNs, thegovernment has introduced a Discount Voucher Scheme, which enables women to get ITN at a reducedprice. Despite of this move, which expected to increase demand of such mosquito nets, there is lowpercentage of people using Discount Vouchers to purchase ITNs.

Under- utilization of Discount Vouchers to purchase ITNs necessitated a study to look into the underlyingreasons for this behaviour. From this background, a study to determine factors influencing under utilizationof Discount Vouchers in Purchasing of ITNs was conducted in Lushoto District Council from 9th to 28thAugust 2006.

Respondents were selected using stratified sampling technique. Women aged 15 to 48 years, who hadbabies of one and half years, and who were attending antenatal clinic were interviewed. A structuredquestionnaire was used to collect information.

The results of this study indicate that important factors that were found to be related to under utilizationof discount voucher in purchasing insecticides treated mosquito nets were age of respondents, occupation,husbands’ education level, low socio economic status which lead to lack of additional money to add to aDiscount Voucher, negative attitude towards the discount voucher scheme and distance to retail shops,where ITNs are sold.

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This study concludes that decision making to buy ITNs using Discount Vouchers is influenced bymultifaceted factors. The government needs to strengthen its activities on improving economic status ofcommunities and continue educating people about the importance of ITNs and their roles in malariaprevention.

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OF FINANCIAL SERVICES IN RURAL AREAS

The Case of Arumeru District

Mwakilema Nicodemus Simon

Master of Business Administration (Finance) .

The study sought to assess the role of saving and credit cooperative societies (SACCOS) in provision offinancial services in rural areas. It covered members involved in income generating activities in Arumerudistrict. Specific objectives included: to investigate whether or not members who joined SACCOS havedeveloped savings behaviour; to analyse SACCOS’ contribution to members in terms of economicempowerment; and to evaluate whether or not there was an increase in capital investment after joiningSACCOS rather than before.

80 respondents from 4 surveyed SACCOS were involved in the study. Both qualitative and quantitativemethods were used in data collection and analysis. Quantitative data were analyzed through the SPSS andMicrosoft excel computer packages.

The Findings show that SACCOS played a very fundamental role in providing financial services tomembers. Data analysis and hypotheses testing have led to the following conclusions: first, there was asignificant relationship between members joining SACCOS and increase in their savings behaviour. Secondly,there was a significant increase in household members spending after joining SACCOS rather than beforein that it led to improvement in members’ living standards due to increase in their purchasing power. Lastly,there was a significant increase in investment activities after joining SACCOS rather than before due toincrease in loans and micro credits provisions by SACCOS in Arumeru district.

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ANALYSIS OF OPERATIONAL ASPECTS OF THE VALUE ADDED TAX IN THETANZANIAN MANUFACTURING INDUSTRY

Magaluda Magobe


There has been improvement in revenue collections since operationalisation of Tanzania Revenue Authority(TRA). The authority instituted many changes and reforms in the past nine years geared at enhancingrevenue collections. It is argued, however, that the TRA is not collecting to its capacity level and theauthority is, as a result currently initiating even more major reforms in tax administration and organizationstructure.


This study analyzed the one specific area of focus in reforms which is the review as to whether Sales Taxwas still effective and efficient in contemporary tax administration. Sales Tax which was collected onlocally manufactured and imported items was embodied with a lot of weaknesses, both administrativelyand operationally.The study utilized a survey method of research using structured and unstructured questionnaires as well asinterviewing customers and TRA officials. Both primary and secondary data were collected coveringimports and operational results of the target companies.

The study analysed data using the Statistical Package of Social Sciences (SPSS). The study findingsshow that consumer behaviour, taxpayers’ compliance, level of the economy, the tax rate, and taxadministration efficiency have a significant impact on the level of tax compliance. It is recommendedmeasures should be taken to improve the efficiency of the tax regime and educate the public on taxcompliance.

ASSESSMENT OF EFFECTS OF DEBT COVENANTS ON ACCESSIBILITY TO LOANSBY SMALL BUSINESSES IN TANZANIA

Shaaban Hassan Ngalupia


The main objective of this study was to assess effects of debt covenants on accessibility to loans by smallbusinesses in Tanzania and also its impact on their growth. Debt covenants are said to have significanteffects on accessibility to loans by small businesses in Tanzania.

A total of 117 respondents from six National Microfinance Bank branches in Dar es Salaam and Coastregions were sampled. Both qualitative and quantitative methods were used in data analysis. SPSS programaided data analysis. Simple linear regression models were used to test relationships that the researcher wasinterested to find out.

It was found that loan covenants had effects on accessibility to loans from NMB Ltd by small businesses.At 5% level of significance, the study showed that there is significant statistical relationship between NMBloan covenants and accessibility to loans, at the same level of significance, the researcher found significantstatistical relationship between small business growth and access to loan facilities from the Bank. The studyhowever, found other factors that delimit small businesses from accessing loans from banks and otherfinancial institutions.

It is recommended that banks should look for alternative soft covenants in their loan agreements toenable as many small businesses as possible to have access to loans. On the other hand small businessowners are advised to be proactive and aggressive in adopting new ideas, technology and market knowledge.

FACTORS AFFECTING GROWTH OF WOMEN OWNED BUSINESS IN TANZANIA

Sophia Mgonja

Master of Business Administration (Finance), August 2007

This study sought to assess factors affecting growth of women owned business in Tanzania. Specifically itanalyzes the extent to which level of education, access to credit; family status and market availability affectthe growth of women owned businesses. A survey method was used to extract information from women

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owners of business. Data was analyzed using frequencies, and results presented in the form of table andfigures.The results reveal that education has a very significant effect on growth of women owned business; thatwomen lack training in the business they are doing. They need more training in business skills, planning,sales and products. Most women business owner started business using their own savings. Women are stillfacing problems in accessing capital due to requirement of collateral by financing institutions. This is reallyan obstacle. Combining business and family was also found to have a negative growth of their business.Finally, on marketing availability it was found out that the growth of business can be facilitated by theavailability of market. Women reported that they need training in area of marketing, i.e. how to acquirenew markets and identify market opportunities. Taken all together, women owned businesses have lowgrowth and need assistance in reaching expansion and growth.

The study recommends that business women should be supported by assisting in searching for marketsfor their products and providing relevant training. It is also recommended that current high interest rates bereduced to attract business women to borrow from financial institutions.

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THE EFFECT OF HUMAN RESOURCES MANAGEMENT IN THE PERFORMANCE OFPARASTATALS IN TANZANIA

A Case of Urafiki Textile in Dar es Salaam

Agnes Anthony


Human resource management is and will remain a serious concern to all institutions, governmental and nongovernmental organizations. It is the only heart for the survival of the organizations and therefore should begiven the first priority.

The purpose of this study was to assess the human resources management so as to describe the relationshipbetween it and the performance of Parastatals.

The research was conducted using a case study of a single firm, Urafiki Textile. The study resultsindicate that Urafiki Textile was affected by human resources management. The findings leads to theconclusions that poor management of human resources in terms of recruitment, treatment and workingenvironment that exists in work organizations, contributes to the poor performance of Parastatals.

The study recommends that: Parastatals in Tanzania should make sure there is good human resourcesmanagement in their organizations that treasure and maintain employees. Also employees should be recruitedin a competitive way; treated well and provided with a good working environment for better performanceof the organizations.


IMPACT OF ISO 9000 CERTIFICATION ON PERFORMANCE

The Case of Tanzania Cigarette Company

Charity Nduta Mwakio


In Tanzania today several firms have adopted the ISO 9000 standard and more are in the process of doingso. The certification requires substantial input of time and resources and once acquired, it is touted as agreat achievement. Empirical studies reviewed found that ISO 9000 adoption results in a more streamlinedfirm but has no effect on the bottom line. This study aimed to assess the impact of ISO 9000 certificationon the performance of one of Tanzania’s leading corporations, Tanzania Cigarette Company (TCC). Thisstudy used questionnaires that were designed based on quality management critical factors and resultsdeveloped by Claver et al (2003). Using data collected from 16 of 26 top management members and asample of 47 non management employees, the findings showed that the ISO 9000 quality program wascomprehensively implemented. The study revealed that during the period following ISO 9000 implementation,TCC recorded positive social impact, improved business results and increased customer satisfaction.However these glowing results were however not as a result of the quality standard but were attributed tothe firm’s privatization, 6 years earlier. Findings further revealed a significant difference in opinion betweenthe managers and employees on the levels of implementation of the ISO 9000 standard with the lattershowing signs of apathy.

The study concluded that standard does not improve performance and that firms already on a steadygrowth path should seek the standard so as to maintain good performance. The paper also concludes thatadoption of the ISO 9000 standard should involve all the staff, with managers providing appropriateleadership to the employees.

PERCEIVED QUALITY OF PHYSICAL EVIDENCE AND CUSTOMER SATISFACTION

The Case of Muhimbili National Hospital (MNH)

Erica Eden Thomas


This study investigated quality in hospital physical evidence components as perceived by the customersand customer satisfaction at Muhimbili National Hospital. The objectives of the study were to assesscustomers’ perception on the hospital’s physical environment quality, their satisfaction levels with the differentphysical environment components to assess relationship between overall perceived quality of the physicalenvironment components and satisfaction on service rendered, and identifies challenges and priorityimprovement areas. A survey tool was developed as a methodology to determine perceived quality levels

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among a random sample of patients attending clinical departments housed within sampled renovated, andnewly built service areas. It included seventy-five questions, in Likert-type questions based on Hospitalquality audit reports, and literature review. 114 questionnaires were returned for analysis out of 125distributed questionnaires.

Frequency and percentage distributions, Pearson correlation for significance (at 0.05) obtained fromSPSS output were used to report findings that answer the research questions.

Clarity and adequacy of signs including symbols, service areas layout for convenient accessibility are ofpoor quality rated by majority of patients. Reliability, responsiveness, safety and security are of good orvery good quality with a few exceptions. The overall environment components qualities were perceived tobe good. Patients were satisfied with the hospital’s overall physical evidence and service rendered. Thecustomer subgroups’ quality perception difference is not statistically significant.

Customer satisfaction with service rendered is independent of quality of physical evidence perceived.Components rated poor and neutral in quality, which elicited dissatisfaction feelings, rated by majority ofrespondents comprised improvement areas. Some challenges mentioned included shortage of nursing staff,demotivated by workload, long service ques, comparably fewer equipment, and inadequate ward spacehindering smooth service delivery.

The hospital is a complex organization, with complex physical environments, tangible and intangibleaspects of the physical environment whereby planning and improvement should consider user definedquality features. A stressful visit to a hospital can be minimized by assuring, reliable, and responsive,hospital physical evidence embraced by consistency in all the dimensions. The Hospital management shouldreconsider incorporating patients’ views while ongoing renovations and improvements are undertaken.Solo waiting can be avoided by incorporating background music, television, broadcasts, refreshments inwaiting areas, and so forth.

FACTORS IMPEDING JOB SATISFACTION AMONG EMPLOYEES IN TANZANIANWORK ORGANIZATIONS

The Case of Muhimbili National Hospital

Jacqueline Constantine Mumba


This study examined factors that impede job satisfaction in Tanzania work organization; Muhimbili NationalHospital was taken as a case study. The objectives of the study were:

(i) To establish major factors that hinder job satisfaction among employees in work organizations;(ii) To find out the extent to which job dissatisfaction causes strikes;(iii) To establish the extent to which human resources management does affect job satisfaction;(iv) To establish the extent to which poor remuneration causes job dissatisfaction; and(v) To find out the extent to which working conditions hinder job satisfaction.

The study has uncovered a number of specific factors that impedes job satisfaction among employees atMuhimbili National Hospital including poor salaries, poor work environment and poor human recourses


management. The study further confirmed that, the strikes done by the employees are due to dissatisfactionin their job.

The Muhimbili National Hospital organization’s senior management team and the Ministry of Healthneed to work closely together in order to see into current organizational climate so as to rescue thesituation. Serious measures needs to be taken into account to address the identified factors of jobdissatisfactions so as to improve employees’ working conditions.

This will enhance the retaining of its historical known of quality and skilled service delivering which wereeffective, efficient and patients caring.

FACTORS INFLUENCING DEMAND FOR PROCESSED CASHEW NUTS INTANZANIA:

The Case of Dar es Salaam region

Dasik Mohamed


This study focused on identifying factors that influence demand for processed cashew nuts. Various factorsthat contribute to deriving demand were identified such that research hypotheses were formulated focusingon those factors present on the sample. Both qualitative and quantitative methods were used to conductthe study in Dar es Salaam region.

The study revealed that cashew-nut appearance is a major factor, which influences people to buy it.Package type as well as price for certain packing determines demand level.The study further observed that customers unaware of different grades of processed cashew nuts. Hence,they failed to distinguish between wholly and split cashew nuts. It was further confirmed that both salt-roasted and sugar roasted cashew nuts had the same demand level.

The study recommends that Small-scale processors and sales outlets should continue offering assuredsupply and promoting their product to get more customers. More efforts should be used to continueprocessing cashew nuts locally and packaging to create more jobs as well as local consumption.This study focused on identifying factors that influence demand for processed cashew nuts. Various factorsthat contribute to deriving demand were identified such that research hypotheses were formulated focusingon those factors present on the sample. Both qualitative and quantitative methods were used to conductthe study in Dar es Salaam region.

The study revealed that cashew-nut appearance is a major factor, which influences people to buy it.Package type as well as price for certain packing determines demand level.

The study further observed that customers unaware of different grades of processed cashew nuts.Hence, they failed to distinguish between wholly and split cashew nuts. It was further confirmed that bothsalt-roasted and sugar roasted cashew nuts had the same demand level.

The study recommends that Small-scale processors and sales outlets should continue offering assuredsupply and promoting their product to get more customers. More efforts should be used to continueprocessing cashew nuts locally and packaging to create more jobs as well as local consumption.

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TOWARDS EXCELLENCE IN e-GOVERNMENT IMPLEMENTATION: CHALLENGESIN TRANS- BOUNDARY INFORMATION SYSTEMS INTEGRATION

The Case of G2G Partnership in Tanzania

Marialauda Jua Goyayi


Despite the number of e-government initiatives taking place in Tanzania, there is an increase in the demandfor the improvement in service provision by various government ministries, departments and agencies(MDAs) particularly in information collection and dissemination. To address this issue this study poses twomain objectives to achieve which are to determine the level of trans-boundary information systems integrationbetween various Ministries, Departments and Agencies (MDAs) in Tanzania and to identify variouschallenges in information systems integration. In order to achieve these objectives a data collection wasembarked, upon which a self-administered questionnaire was distributed to various MDAs located in Dares Salaam City.

A two-phase analysis was conducted. Phase one analysis is based on frequency distribution and asimple t-test for hypothesis testing. It is found that in overall the level of trans-boundary information systems’integration across MDAs is significantly insufficient to support the desired information flow despite thatwithin MDAs the level was found to sufficient.

Phase two analysis is based on frequency distribution of the respondents’ claim regarding challengesthat hinder the information systems’ integration. ICT infrastructure is claimed to be the top most challenge,it includes computer accessibility, communication infrastructure and ICT literacy. Other challenges identifiedinclude change management, partnership and collaborations, leadership role, policy and strategy issuesand lastly human capital development.

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FEASIBILITY OF ISLAMIC BANKING IN TANZANIA

A Survey of Dar-es-Salaam Muslim Community Members

Mussa Bally Natty


The objective of this study is to evaluate the feasibility of Islamic banking in Tanzania at a formal level. AnIslamic bank is a deposit-taking banking institution whose scope of activities includes all currently knownbanking activities, excluding borrowing and lending on the basis of interest.

To achieve the above objective, current and emerging practices towards access to and mobilisation offinance within Muslim communities were explored and documented; perceptions of Muslims towards


Islamic banking were also investigated. Finally the extent to which the regulatory environment facilitates orhinders Islamic banking was examined.

Two mini cases were selected and used to study the current, emerging practices of Muslims on financeand the perceptions of Muslims towards Islamic banking. Secondary data was used to cover the extentwhich the regulatory environment facilitates or hinders Islamic banking.

From the observations, some elements of Islamic banking exist within the Muslim communities in Tanzania.Basing on the questionnaire results there is a positive perception toward Islamic banking within Muslimcommunities in Tanzania. Secondary data suggests that the law is silent on Islamic banking and that theexisting regulations for banks were established specifically for interest based banking. These regulationshinder the establishment of Islamic banking.

From the findings it is clearly recommended that a Charter for Islamic banking has to be enacted tofacilitate Islamic banking at a formal level.

This research recommends further studies on issues not covered by this study such as thesize of the potential market for Islamic banking in Tanzania

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CORPORATE SOCIAL RESPONSIBILITY PRACTICES FROM STAKEHOLDERS’PERSPECTIVE – A CASE OF BP TANZANIA LIMITED

Frederick George Kibodya


This research aims at studying BP Tanzania stakeholders’ views pertaining to BP Tanzania Limited’s CorporateSocial Responsibility (CSR) practices. The study specifically endeavours to establish stakeholders’understanding of CSR phenomenon; identifying prioritization given by the company stakeholders regardingCSR components and finding out how stakeholders rate BP Tanzania’s CSR performance.

Qualitative research methodology was applied to study the CSR phenomenon. Interviews, personalobservations and focus group discussions were key means of data collection. Analysis was done at thesame time to give room for investigating emerging concepts. A qualitative analysis software “Qualrus” wasapplied to analyse the data. The study findings indicate divergence of CSR understanding but majority ofBP Tanzania’s stakeholders are looking at CSR through a philanthropic lens rather than its broader contextencompassing four CSR aspects namely; economic, legal, ethical and philanthropic responsibilities. Withthat understanding, the stakeholders have high regard for the company’s CSR performance. A call for thecompany to engage in more social programs especially in education and health sectors has been echoed asroom for improvement exists. Furthermore, a growing significance of CSR in Tanzania society is notedmuch as is in other parts of the world.

This study recommends that business corporations need to balance their economic need and the socialneed of the surrounding communities. CSR need to be an integral part of business operations and not asideway or cosmetic ingredient. Globalization will make requirements to fulfil CSR obligations more intense.Hence businesses, especially local companies need to institute measures to ensure that they allow CSRprograms in their corporate and strategic plans

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THE ROLE OF STOCK VERIFICATION IN MANAGING GOVERNMENT ASSETS

A case Study of the Ministry of Finance

George Julius kanyama


Asset Management assets is one of the popular talks of many private and public organizations including thegovernment in many countries. This is because many organizations are faced with significant challenge totrack the location, quantity, condition, maintenance, and depreciation status of their assets.The objective of the study was to examine the role of stock verification in managing government assets.The study was conducted using a case study approach where the Ministry of Finance was taken as thesetting of the study.

The findings show that stock verification plays a big role in managing government asset.In addition, the study also found that, there are factors that contribute to inefficient assets management

in public sector, these include lack of compliance to applicable regulations governing verification andassets management, absence of assets data base (assets inventory), centralization of auditing institution,lack of adequate procurement auditors and absence of strict action against poor procurement practitioners.

This study recommends that, the management of the Ministry institutes measures on capacity building ofthe stock verification department in terms of training, working facilities and moral and material incentivesso as to enable the department increase the ability to handle the asset management responsibility.

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REVIEW OF THE NEW FOREIGN POLICY – IMPLEMENTATION OF ECONOMICDIPLOMACY

Masha Hussein

Master of International Trade, September 2007

This study report focused on the review of the new foreign policy, the primary focus was on the implementationof economic diplomacy. The Government of Tanzania has come out with both the New Foreign Policydocument and an implementation plan of which has formulated a new foreign policy that has mainstreamedeconomic considerations; while at the same time consolidated the fundamental principles of the past. Thestudy set to investigate if the existing institutional arrangements and practices can accommodate the properimplementation of economic diplomacy as one of the key pillars of the new foreign policy.This study makes use of qualitative methods to analyze the implementation and performance of new foreignpolicy focusing on implementation of economic diplomacy. It was found that the current institutional frameworkcannot adequately deliver the policy objectives, thus a need for restructuring the whole institutional framework.The finding provide an evidence for a need of restructuring the Ministry of Foreign Affairs and InternationalCooperation (MFAIC) and the whole institutional framework to accommodate the smooth implementationof new foreign policy, either empirical evidence has shown that Ministries of Foreign Affairs (MFAs)


around the world are restructuring their offices to accommodate the new challenges, MFAIC need torestructure by eschewing its old identity as a major gatekeeper of the nation and assume a less monopolistic,more flexible, position vis-à-vis the other ministries.

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TANZANIA E-READINESS IN TOURISM INDUSTRY

Faith Wineza Ntukamazina


The study aimed at determining the e-readiness of tourism sector in Tanzania. It involved tourist’s visitorsat Ngorongoro Conservation Area and Serengeti National Park, tour operators and other players andpractitioners in the tourism industry.

Data was collected from primary source (tourists), who filled the questionnaires on the spot, interviewswith tour operators and some staff of Ngorongoro Conservation Area Authority.

The results showed that both use of website in marketing, use of online payment and connectivity arerelated to the e-readiness. The model developed was found to have a weak predictive measure of e-readiness since it only represents nearly one third of variations which occur in e-readiness. The resultsshowed that there is a lot of work to be done in order to ensure the e-readiness is taking place in thetourism industry due to the fact that the level of connectivity is still very low and the internet connection isvery slow, factors which hinder business participation in a globalized world market. Last but not the least,most of Tanzania’s tourism websites are just used for advertising and not for e-business and thus onlinetransaction system is not utilized. The use of online transaction (e-business) will end the ongoing financialloss that is taking place in Tanzania since most tourists’ transactions take place in western countries.

Therefore as the study proclaims, tourism is one of the major economic sector in Tanzania and thus inorder to ensure its successful utilization in the era of science and technology there is a need of e-readinessassessment.

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THE ANALYSIS OF THE ROLE OF PORTS/HARBOURS IN FACILITATINGINTERNATIONAL TRADE

The Case of Tanzania, Dar es Salaam Port

Christopher Japhet

Master of International Trade, February 2007The new millennium has witnessed increasing importance of the physical infrastructure as a means offacilitating trade. According to the Economic Survey of 2004, the Tanzania’s transport sector contributesabout 6.3 percent to GDP.

Although Tanzania acknowledges the importance of the physical infrastructure as a tool for facilitatingboth local and external trade and investments, the country’s speed to develop the same has been very low.The transport systems in Tanzania has suffered many years of neglect and decay, the ports in the countryare supported by such weak roads and railway networks, a situation that reduces the ability of the ports to

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function as gateways to both local and external markets. The objective of this study is therefore to investigatethe reasons or causes that underlie the poor performance by the Dar es Salaam port thus limiting thecountry to benefit from her geographical position as a maritime nation on a competitive and sustainableinternational trade basis.

This study was done in Dar es Salaam, and the port of Dar es Salaam was an area of study. A self-administered questionnaire, together with interviews with the port officials and port users, were used tocollect primary information while secondary data were obtained through library search, documentary reviewsand also materials retrieved from the internet, were subjected to content analysis.The conclusions drawn from this study have important policy implications that if adapted are believed thatwill make the port very competitive.

THE EFFECT OF BANK LOANS ON SMALL AND MEDIUM ENTREPRISES’ GROWTH

The Case of National Bank of Commerce Ltd

Elyne C. Sanga


The Small and Medium Enterprises (SMEs) is one of the major pillars in private sector that enhance andpromote economic growth in our country. This study was taken in order to underscore whether loansprovided by banks and lending rates charged by the bank have effects on the growth of this sector (SMEs)mainly in terms of Total assets, Sales Revenue and Net profits after Tax.

To make the study possible, the researcher took the National Bank of Commerce (NBC Ltd) in Dar essalaam headquarter as the case study since it is one of the biggest commercial bank that provides loans toSMEs operators’ national wide. A sample of twenty (20) SMEs operators were drawn from Dar es salamregion. Data were collected, analysed and presented in an orderly manner; interpreted so as to bringmeaning to the final users.

In conclusion, from the findings, the researcher finds no significance relationship between the amountsof loan provided to the SMEs and their growth. Further, the researcher found that lending rates charged bythe bank do not affect the growth of the SMEs in a negative way. The researcher foresees other factorsthat probably contribute to SMEs growth rather than loans and rates. Such factors include; quality ofmanagement, commitment of the owners and their employees, training, reasonable policies and regulation,availability of markets, technology and access of information, good infrastructure, also accessible andgood communication networks.

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EVALUATION OF SERVICES’ OUTSOURCING OF UTILITIES AND SERVICESIMPROVEMENT IN TANZANIA

The Case Study of Tanzania Electric Supply company Limited (TANESCO)

Samwel Mollel


The broad objective of this study was to evaluate the impact of services’ outsourcing of utilities andServices improvement in power supply and service at Kinondoni South region in Dar es Salaam. Thestudy interviewed 60 TANESCO staff and 100 customers to avoid biased results. The results obtainedwas based on the model where regression analysis was used in addition of the, frequencies and charts.

The results from the study show that TANESCO has not improved in power services to customersdespite outsourcing some of the services to private agent. It was observed that generation of power doesnot satisfy the available demand leading to overloading that may cause power fluctuation. Despite themeter reading service being outsourced to private company, there has been no substantial improvement asit was pointed out by both TANESCO employees and customers interviewed in this study. The findingsalso show that the degree of inaccuracy of customers’ bills has not yet improved even after the NetGroupsolution took over the TANESCO’s management. Basing on the results, services outsourcing of utilities isnot the only way that guarantee services improvement.

Due to current climatic change where prolonged droughts have been order of the day and ongoingenvironmental degradation in many parts of the world, including Tanzania, hydro-electric power generationmay no longer be guaranteed. The study suggested alternative sources of power generation like natural gasand coal and hence lessen dependence on hydropower.

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FINANCIAL MANAGEMENT OF LOCAL GOVERNMENT CAPITAL DEVELOPMENTFUND IN TANZANIA

The Case Study of Four Selected Councils

Anna Phillip Mbogo


This study aimed at examining the extent of effectiveness of financial management in the district councilsthat qualified to access Local Government Capital Development Funds (LGCDF) and those that did not interms of availability of qualified staff, the ability of the LGA staff in managing Capital Development Fund(CDF) and effectiveness of computerized financial management system. Some literature on LGCDF was

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reviewed and a conceptual framework was developed by the researcher to guide the study. The study wasconducted in four district councils of Morogoro, Mbarali, Muheza and Njombe. Total respondents were106 in categories of councilors, financial management specialists from ZRT, district council officials andvillage community members who were obtained through purposive, simple and stratified random techniques.Data were gathered through questionnaires, interviews, observation and documentary reviews and werequalitatively and quantitatively processed and analyzed through SPSS and STATA.

The study revealed that there was no significant difference in terms of availability of qualified staff, theability of the LGA staff in managing CDF and effectiveness of computerized financial management systembetween the councils that accessed LGCD funds and those that did not. The study noted that the minimumconditions set for eligibility to access the CDF were retarding the development of village community memberswho, however, had not contributed to the reasons that led to disqualifying their councils from accessingthese funds. The study recommends possible ways to be taken into account by the central government,district councils and community members to improve the effectiveness of financial management. There is acall for the government (PMORALG) to review the criteria for accessing the LGCDF and for districtcouncils to employ the IT personnel for technical use in outputting their financial reports timely and accurately.Also the study recommends increased efforts in sensitizing people on their participation in the developmentprocess. Finally, the study recommends further studies to examine the effectiveness of financial managementin a wider setting and to examine the strength of personnel in the lower level government in managing theCDF

MANAGEMENT CHALLENGES FACING SMEs TO INVEST IN INFORMATION ANDCOMMUNICATION TECHNOLOGY

The Case of Tanzania, Dar es Salaam Region

Peter Jacob Mayala

Master of Business Administration (IT Systems), November 2008

The major objective of this study was to examine and identify management challenges facing SMEs inmaking investment decisions for improved performance competitiveness.The study was conducted in Dar-es-salaam region and surveyed SMEs involved in manufacturing, foodprocessing, textile, tourist and other services.

Data were obtained from a sample size of 45 Tanzanian SMEs operating in Dar es Salaam City. Thisincluded 13 for Manufacturing, 9 for Transportation, 8 for Tourism, 5 for Wholesale, 5 for Retailing andother service provision firms were 5. Data were collected through a semi-structured questionnaire, bothclosed and open-ended questions were used in the questionnaire to collect the required information toanswer the study problem. The questionnaire was used as the main data collection instrument to avoidbiases likely to be caused by the Interviewer. In addition, structured interview guide was used to supplementquestionnaire. Data analysis was performed using Statistical Package for Social Scientists (SPSS).

Findings of this research reveals that ICT business planning and strategy, inadequate ICT managementskills, inadequate finance, Size of SMES in terms of number of employees and the nature or type ofbusiness all influenced SMEs to invest on ICT.


The research also tested hypotheses, which were divided into four parts namely preparedness to invest inICT, Management skills, adequate finance, and size, type and nature of business. Results on these hypothesesindicate that majority of SMEs with ICT plans reflecting business goals allocated budget each year tofinance ICT investment in comparison with those who do not allocate budget each year to finance ICTinvestment. Allocation of budget each year to finance ICT Investment depended on relevant ICT plans tosupport business goals. Moreover preparedness of SMEs in ICT investment was influenced by ICT planslinked to business goals. Overall the results suggest lack of up to date ICT skills hindered owners/managersof SMEs to make decisions regarding ICT investment to aid their business operations. Overall the resultssuggest that lack of training affected the owners/managers thought about investing in ICT. Generally fromthe standpoint of those findings it appears that attendance to ICT training improved the thinking of owners/managers to positively deciding investing in ICT.

Furthermore the study findings suggest that lack of the required ICT knowledge among owners/managersof the SMEs hindered their decision to invest in ICT as a strategic investment to improved businessOperations. Generally the results show that a bigger number of SMEs with employees 21 and aboveacquired ICT facilities whereas a bigger number of SMEs with employees 1-20 did not acquire ICTfacilities to aid their business operations. Moreover, the results revealed that acquiring ICT facilities isdepended on the type of business undertaken by respective companies. The study finally has recommendedareas for future research or further investigations.

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INTERNAL MARKETING FACTORS AND PERFORMANCE OF POSTAL SERVICES INTANZANIA

Josephine M. Shokolo

Master of Business Administration (Marketing), December 2008

Tanzania Posts Corporation has experienced improper implementation of internal marketing. This situationhas negatively affected both job satisfaction and customer satisfaction. The overall objective of this studywas to examine the IM factors and performance of postal services in Tanzania. Specifically the studyintended to examine the relationship between internal marketing factors, job satisfaction and businessperformance.

The study was descriptive and explanatory in nature. It was a quantitative study that interviewed asample of 100 employees and 169 customers. Simple random and judgmental sampling techniques wereused to select the sample for employees and customers respectively. Data were analyzed by descriptivestatistics and correlation analysis.

The study revealed a strong positive relationship between IM factor and job satisfaction as well asorganizational performance while the relationship between job satisfaction and business performance wasmoderate. It was revealed further that employees as well as customers were not satisfied with servicesoffered by the Corporation. This situation contributed to low business performance in terms of profitabilityand service quality. The conclusion was reached that improvement in implementation of internal marketingfactors may lead to employees and customer satisfaction as well as improved business performance.

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GLOBALIZATION AND LABOUR RELATIONS IN TANZANIA

The Case of Tanzania Cigarette Company Limited

Lucy Sawaya- Mandara


This research studies on the way Globalization has affected the labour movement at a place of work. TheResearcher was interested in investigating on how Globalization has influenced labour movement andlabour market. The Researcher took Tanzania Cigarette Company Limited (TCC), a major cigaretteproduction company in Tanzania as a case study.

The study took the form of self-administered questionnaire as well as archival research. The questionnairewas carried to selected employees and those who resigned from TCC in year 2004 to 2006. This has onthe other hand, had effect in the labour movement where employees resigned looking for better workingcondition, more pay and career opportunities.

TCC has to improve and come up with more competitive package to compete than it is now, otherwise,as a result of Globalization, new and small employers are joining the bandage of employers in the market,and are coming up with sweet packages, benefits and career opportunities.

The major cause, which made Respondents to leave employment, was promotional aspects. Thusconsidering the size of TCC, it is such a big organization for one to climb up to the top management soeasily. Globalization has caused change in the global market, competition and influence in the labour marketand labour relation.

TCC should therefore, come up with the long term incentive plan to retain key talented employees so asto avoid voluntary turnover.

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EXTENT OF COMPLIANCE TO PUBLIC PROCUREMENT ACT AND REGULATIONS

A survey of Selected Water Supply and Sewerage Authorities of Arusha, Babati and Moshi

Charles Ilago Kondela


The extent of compliance to Public Procurement Act number 21 of 2004 and it is regulations of 2005 inUrban Water Supply utilities are still questionable. In order to elucidate more light of this area the researcherexamines the extent of compliance to Public Procurement Act to water utilities of Arusha, Babati andMoshi.


The researcher used both qualitative (narrative) and quantitative approach in analyzing data. On quantitativethe Programme of SPSS was used and the primary data from questionnaires were categorical, henceresults of percentage, Chi-squire and P-Value were shown from dependent and independent variables.

The results showed that extent of compliance with Public Procurement Act and its regulations was in alow going motion in procuring entities and suppliers/and service providers. Procurement ManagementUnits was not established in Arusha Urban Water Supply utility as per section 35 of the Act. However thePMU of Moshi was working as a committee contrary to functions in the Act section 36. Only PMU ofBabati was established as per Requirement. Inspection Committee of goods and services were not wellestablished as per Government notice number 97 regulations 122, 126 and 127. The said inspectioncommittees were merely user departments.

To redress the above weakness in compliance, the procuring entities, the Government, and Suppliersshould focus on education and awareness, praising of all parties to procurement. The major aim would befor public interest to increase transparency in use of Government resources in order to obtain value formoney.

THE IMPACT OF MICROFINANCE ON URBAN POVERTY ALLEVIATION

Deogratias Sangu Manumbu


The main Purpose of this study was to examine the impact of Microfinance Institutions on the alleviation ofUrban Poverty. To achieve this objective, the research was done through a survey of 165 individuals (150borrowers and 15 non – borrowers). The Research was conducted in the FINCA branch in Ilala, Dar esSalaam Region. Data was collected using questionnaires which were distributed to FINCA clients andofficials. Data was analyzed quantitatively. Histograms and frequency distribution tables were used topresent the findings. The SPSS method of analysis was used. The results showed that the income and thelevel of employment of participants are greatly influenced by loans obtained from Microfinance Institutions.The income level of borrowers was found to increase compared to non–borrowers.

Further, the results show that Microfinance credits have an impact on the alleviation of poverty but donot affect individual control and autonomy to make decisions on business affairs. The study recommendsthat MFIs should revise the lending conditions especially the interest rate, the repayment period and alsodevice a new way of tackling loan defaulters instead of leaving the burden to other clients in the group orconfiscation. Lastly, there is a need to conduct further study to assess the capabilities and strength includingways that MFIs could use to help clients and eventually lead to poverty alleviation in the country. Indeed,the study has gradually evolved an appreciation of the need to do similar study in other Regions of Tanzaniawhere credit schemes operate.

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COSTING AND PRICING METHODOLOGIES IN TELECOMMUNICATION SECTOR

Fabian G. Lyimo


Today, telecommunication is one of the most competitive business sectors in the World. This sector’spenetration has a positive impact to economy growth (measured by GDP per capita); so with higher ratesof telecommunication services adoption in Tanzania, economic growth is certain. Telecommunications hasdrawn attention of both consumers and scholars and there are lots of claims that pricing of services withinthe sector are exploitive. This and many other factors led to the essence of examining the costing phenomenain the sector that leads to pricing decisions so that to draw a unified understanding of the factors underlying.

A cross sectional study method was adopted and a combination of research approaches, mainlyexploratory, qualitative and quantitative were used to make justifications of the key arguments.

While operators might be using costing and pricing methodology of same principles, the actual setup ofprices (tariff) is more of a competitive tool than a standard arena. Tariff setting and services bundling isseen to be more of a competitive and distinguishing tool adopted by operators.

This study concludes and recommends that for a capital intensive industry such as telecommunications,bearing high inherent risks of such an investment, it is best for market forces to be left to determinecompetitive prices. The key function of regulation should be to create a level playing field for operators sothat to wipe off any rising monopolistic behavior in the marketToday, telecommunication is one of the mostcompetitive business sectors in the World. This sector’s penetration has a positive impact to economygrowth (measured by GDP per capita); so with higher rates of telecommunication services adoption inTanzania, economic growth is certain. Telecommunications has drawn attention of both consumers andscholars and there are lots of claims that pricing of services within the sector are exploitive. This and manyother factors led to the essence of examining the costing phenomena in the sector that leads to pricingdecisions so that to draw a unified understanding of the factors underlying.

A cross sectional study method was adopted and a combination of research approaches, mainlyexploratory, qualitative and quantitative were used to make justifications of the key arguments.

While operators might be using costing and pricing methodology of same principles, the actual setup ofprices (tariff) is more of a competitive tool than a standard arena. Tariff setting and services bundling isseen to be more of a competitive and distinguishing tool adopted by operators.

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APPLYING CIPP MODEL TO APPRAISE POWER UTILITY PERFORMANCE

The Case of TANESCO

Deogratias R. Ndamugoba

Master of Business Administration, November 2008The purpose of the study was to apply CIPP (Context, Input, Process, Product) model to appraise theelectric power utility performance in Tanzania which customers assert was not satisfactory despite providingservices for 43 years. Arusha region and Dar Es Salaam Headquarters were case studies. Four variablesassumed to be influencing the performances of TANESCO were investigated these being TANESCOoperational conditions; resources channeled TANESCO (finance, physical and human resources),programme administration and effectiveness of TANESCO services.

Purposeful and Stratified Sampling techniques were employed to select 186 informative respondents.Stuflebeam ‘s CIPP model guided the study at the conceptual level and collection of data by employing thequestionnaire, interview schedule, documentary review, and focus group discussion guide which were pilottested before data collection.

The findings show that the context within which the utility operates is not favorable. The physical,human, and financial capital channel in the utility is not adequate. Also processes particularly technologiesare outdated and not suitable and final product (electricity) and its related services are not desirable bycustomers. It is recommended that the utility (TANESCO) needs political support from the Government,TANESCO need to invest in other social services so as to solicit support from general public. Capitalinvestment in physical plant and human capital is imperative now.

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FINANCIAL MANAGEMENT OF LOCAL GOVERNMENTS’ PROJECTS

The Case of Kinondoni Municipal Council

Ruth Elias


This study investigated project financial management as part of project management with a special look onthree areas; organization structure, information technology and accounts and payroll procedures and howeffective and efficient do those areas were on good financial management.

This study used case study strategy to collect and analyze data. Key findings included CIUP projecthaving general meetings of every three months that generated violence and made new way forward for thebetterment of the project, staffs operated as municipal staffs at the same time in the projects, projectcoordinator did not have financial management knowledge. As well, CIUP project lacked necessaryknowledge of advanced IT, which was essential in that era and especially in project management.

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Furthermore, accounting and payroll procedures were perfectly done although manually and it was centralizedto financial specialist at city level with little support from municipal accountants who did not involve himselfdirectly with the project.

Contribution of this study based on three areas; academically, it brings knowledge on how localgovernment can improve project financial management by introducing matrix structure, training of staffs tohave skilled and competent staff, introduction of information technology and improved accounting andpayroll procedure to adopt new technology. To policy makers, the study will be supporting formulation ofpolicies relating to improvement of project financial management within local government

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DO LINKAGES BETWEEN FORMAL AND INFORMAL FINANCIAL INSTITUTIONSAFFECT THE SUSTAINABILITY OF MFIs?

The Case of SACCOS in Dar es Salaam

Bezil Ewala


Financial Linkages between Formal and Informal Financial Institutions has been regarded to be one offactors that can bring up sustainability of Microfinance Institutions. This study was carried out in order tofind out if MFIs institutions, in this case SACOOS in Tanzania can be sustainable if they have financiallinkages with formal financial institutions like banks.

In collecting the primary data, interviews were conducted and questionnaires were distributed to selectedSACCOS committee members and officers who perform administrative work of selected SACCOSnamely; NSSF, Wanama, Lumumba, Ukonga Stakishari, Usaka and Kinondoni. Data analysis was doneby SPSS software. Statistical tests by way of percentage measurements were also done.

The study reveals that financial linkages between formal and informal financial institutions have a positiveinfluence on financial sustainability of MFIs. SACCOS that have linkages activities have been found to bedoing better than those without linkages. Therefore for MFIs to become financially sound and sustainablethey should engage in financial linkages.

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OPPORTUNITIES AND CHALLENGES FOR MARKETING OF ECOTOURISM INZANZIBAR

The Case of Jozani Chwaka Bay National Park and Selected Stakeholders in Zanzibar

Ally Khalfan

Master of Business Administration (Finance), August 2007

The objective of this study was to discover ecotourism potentials existing in Zanzibar and the factorsinfluencing marketing of these in Zanzibar. The study was conducted through a survey of 111 actors in thetourism sector in Zanzibar Archipelago as well as interviews with key informants.


The study has discovered eight ecotourism potentials that can be developed into ecotourism productsat JCBNP alongside with 9 villages adjacent to Jozani forest, they include: Machaga cave at Pete village,Wangwani grassland area, Fungoni and Shakani birds sighting areas, Juja Island (Zoo Island) and Chwakatour to name a few. However, results of the study established that: price of tourism products, the destinationattractions and facilities, transport infrastructure, customer care, and awareness of tourism value are thekey factors influencing marketing of ecotourism in Zanzibar. The factors found to hinder marketing ofecotourism were: Limited financial resources to conduct public campaign or awareness, limited supportfrom the local citizens, limited support from the Government, limited tourism marketing education andthere are no synergies between firms in promoting domestic ecotourism.

Esprit de corps between the private firms and the responsible ministry would expansively create awarenessof ecotourism value to the local people inexpensively. However much effort must be expended to establisha centre responsible for the promotion of ecotourism potentials existing in the Isles. Future research onecotourism should cover the whole islands in both high and low season of tourism.

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FINANCIAL MANAGEMENT OF DONOR FUNDED PROJECTS

The Case of Lower Kihansi Environmental Management Project (LKEMP)

Harold Joseph Materu

Master of Business Administration (Finance)

The purpose of this study was to determine the effectiveness of financial management systems on sub-projects supported by the Lower Kihansi Environmental Management Project (LKEMP). It includedestablishing major challenges faced by the people implementing the sub-projects.

The methodology used was by survey of the three riparian Districts of Kilolo, Kilombero and Mufindi.A questionnaire was designed where the respondents answered the questions from their own perceptionof the projects. In some cases interviews were conducted.

The interviewees included Chairmen and Secretaries and/or treasurers of the relevant sub-projects.Where these were not readily available, other members of the given sub-project were interviewed. Discussionswere also held with Executive Directors of the respective Districts.

The sample covered 70 sub-projects in all the three districts. Out of these, 56 sub-projects respondedto the questionnaires and these formed the basis of the research findings and conclusions.

Based on the analysis we found out that the financial management function is carried out according toInternational Financial Reporting Standards (IFRS). It was also found out that the Financial ManagementReports are of good quality in terms of timeliness, accuracy and reliability. However there are hindrancesin some projects due to little financial management knowledge and experience by the implementers. Thereis need for scholars to do more studies on the ways to improve Financial Management Function especiallyin rural based projects.

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ANALYSIS OF THE EXTENT TO WHICH BUSINESS DEVELOPMENT SERVICES(BDS) ADDRESS THE NEEDS OF WOMEN - OWNED ENTERPRISES (WOES)

The Case of Dar es Salaam BDS Providers

Donati Salome


The aim of this study was to analyze the extent to which Business Development Services (BDS) addressthe needs of Women-Owned Enterprises (WOEs). The BDS Providers in Dar es Salaam were used asthe population of the study where the purposive sampling technique was used to obtain the sample for bothsurvey and in-depth study. The information collected from the survey was analysed using the frequenciesand cross-tabulations. The in-depth study involved two selected cases where by the analysis was done bytracking the common themes, experience and evidences on supportive services and barriers which havehindered or facilitated BDS from reaching out to WOE.

The findings showed that the proportion of women clients that are served by the BDS Providers arevery few compared with men clients. There are less than 25% of women clients among the 42.9% of thenumber of BDS Providers. Also a lot of BDS Providers (85%) have admitted that women entrepreneursneed special support in their businesses, but only a few have taken the initiative to design special programmesto support WOEs.

The common problems that seem to have been experienced by the BDS Providers who deal withwomen entrepreneurs are failure to pay fees, failure to attend training courses on time and dropouts. It wassuggested that, in order to solve those problems, mobile training courses should be introduced at anaffordable cost to enable women to improve the entrepreneurship skills. This would enable them to growtheir businesses and contribute to wealth creation for themselves and for the nation at large

THE IMPACT OF THE TREASURY MANAGEMENT FUNCTION ON BANKPERFORMANCE

The Case of Tanzania Postal Bank

Marijani Salma M.


The main objective of this study was to assess the impact of the treasury management function on thecontribution to bank performance, how it supports the effective management of assets, liabilities, andworking capital in achieving the overall objectives of the organization. In particular, the research wanted toexamine and evaluate the structure of the treasury management function that exist at Tanzania Postal Bank,assess the extent to which the bank follows the rules and regulations established by BOT and to analyzehow ALCO support working capital management.

The study was based on a case study strategy within a descriptive and explanatory framework in orderto get a detailed account of the problems being studied. The study also incorporates the deductive approach


into the research design. The sampling units were treasury department and branches located in Dar esSalaam. The data used were both primary and secondary. The study comprises three propositions thefinding of which show that there was a mismatch of assets over liabilities due to inadequate treasurymanagement analysis. The findings on the second assumption illustrate that top management considerstreasury management analysis as a daily management tool. The findings on the last proposition indicatethat the tendency of neglecting rules and regulations set by BOT did not exist because the bank strictlyobserves the rules and regulations. The study concluded that the treasury management function and thestructure of bank treasury department do contribute a lot to bank performance. But the number of employeeswas unfavourable for effective treasury management in such banking institutions

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THE IMPACT OF FDI ON EXPORT PERFORMANCE – LESSONS FROM TANZANIA

Charles T. L. T. Domician

Master in International Trade, January 2007

OLS and ECM econometric techniques are employed to estimate the impact of total FDI stock andselected variables on Tanzania’s overall export performance over the 1973 to 2005 period. The findingssuggest that the present FDI stock is either negatively correlated with export performance or has a negligiblefavourable contribution to the export sector in terms of backward and forward linkages. Consequently, thetrickle-down effects of the gains derived from FDI to the general economy remain low principally due toinadequate investments in the agricultural sector, potentially idle FDI stock in manufacturing and less thanproportionate mineral rents accruing to the domestic economy. The exchange rate and GDP, both laggedone year, have positive effects on export performance; while the present exchange rate and public investmentbehave negatively towards the country’s export activity. The external debt stock and net capital formationare found to have insignificant bearing on the country’s export performance; whereas the ECM lagged oneyear capably estimates the adjustment speed of the variables in the model from short run behaviour to longrun equilibrium setting, hence confirming the existence of cointegration between export performance andthe regressors. Policies should thus be geared towards improving the GDP contribution of the key sectorslike mining and manufacturing plus directing more public investments to infrastructural development forenhancing productivity in the tradable sectors. In this way, the country’s prevailing high exchange ratewould render exports competitive. Regarding FDI, policies and laws should be calibrated in a manner thatobjectives and targets of foreign investments are consistent with and integral part of, the country’s broaderstrategic mission. This would entail building a competitive and sustainable export sector with elements ofdomestic ownership through diffusion of key skills, knowledge and technology to indigenous producers.

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ANALYSIS OF IMPEDING FACTORS IN ACCESSING MICROFINANCE SERVICES INTANZANIA’S RURAL AREAS

Slahhay Daniel Gehandu


The study focused on identification and analysis of key factors that makes rural households remain unattractiveand not credit accessible by the formal micro credits. The study came up to investigate the problemthrough the narrow and few MFIs existing in the district of which hundred responsive questionnairesformed part of the research findings. In addressing the study, specific research objectives were used alongwith research propositions that proved valid.

Accessibility of the poor to microfinance services still remain a big problem as the micro credit conditionsare inflexible in accommodating rural potentials to serve as the traditional collateral. In this effect MFIslack policy and regulatory framework that recognize rural potentials to be compatible with creditrequirements.

The study confirmed that marginally Community Based financial institutions (SACCOS) have played arole of outreach. Sustainable rural outreach calls for innovation of suitable rural financial products.Establishment of Community Banks is of paramount importance, which can serve best interest of the poorrather than the commercial financial institutions which are of more profit motive.

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FINANCIAL PERFORMANCE OF NGOS AND ITS IMPACT ON SUSTAINABILITY

The Case of HakiElimu in Tanzania

Shafii Kachenje Mmile


This study attempts to examine the financial performance of NGOs, and assess its impact on developmentin Tanzania. It examines to what extent they accept and use of financial principles, relevant methods andtechniques for seeking funds and what impact that had on the sustainability of the HakiElimu NGO. Inorder to be knowledgeable with the literature on the topic, a literature review was done to trace thehistorical background of NGOs, their characteristics, various methods and techniques used for seekingfunds, dimensions of NGO sustainability, barriers to financial sustainability in the NGOs and the primacy ofadhering to financial principles.

The study was both quantitative and qualitative in its approach. It was conducted in the KinondoniMunicipality, in Dar es Salaam City, where the headquarters of the HakiElimu NGO are located. Seventyrespondents including directors, coordinators and other workers were consulted to provide data for thestudy. Four methods of data collection were applied and these were document review, observation, interviewand questionnaire. The data were processed by firstly presenting the raw data, categorising them into


groups, reassessing, interpreting, discussing them critically and eventually organising them for report writing.Generally, it was found that the HakiElimu NGO adhered to financial principles to the extent of enabling

it to survive for seven years despite the barriers it faced from various forces. The causes for such a situationto persist were the good foundation set from the beginning for adhering to financial principles in the firm,unity and integrity among the founders, their education background, relevant objectives and plans in relationto the society it served and the great efforts in implementing them as well as the capacity of the NGOrunners to overcome the challenges they faced from different forces. These led us to conclude that thesustainability of the NGO depends on adherence to financial principles and the capacity to face andovercome challenges. The level of education, integrity, hard work and unity of the NGO runners are uniqueand paramount criteria for NGO sustainability. The study, therefore, commends the NGOs which haveimproved in their unique criteria which have been articulated in this study and those which have collapsedor are in a bad situation financially to learn from the HakiElimu NGO.

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FOREIGN DIRECT INVESTMENT FLOW IN AGRICULTURE IN TANZANIAMAINLAND 1995 -2005

Mwanawetu Mbonde

Master of International Trade, September 2007

This study set to identify and analyze determinants of FDI inflow in agriculture in Mainland Tanzania from1995 – 2005. The analysis was done using quantitative analysis based on eclectic theory by Dunning.Quantitative analysis involved the econometric estimation of selected variables on FDI inflows in agricultureusing E-view method.

FDI flow to agriculture remains small and come from less diversified traditional sources, namely U.K,Kenya, India, German and Netherlands, together accounting for 72 percent of the investment projects.Regional distribution of investment in agriculture is skewed favoring Arusha, Tanga, Morogoro and Dar esSalaam. Favorable climate, developed infrastructure and location of privatized public enterprises aredeterminants of regional distribution of FDI projects in agriculture.

It was found that corporate tax affects FDI inflows negatively as it leads to less FDI inflow in agriculture,while exchange rates dynamics it is important for the net FDI inflows in the country, the more the overvaluedexchange rate the more foreign investment flows in.

Infrastructure is an important determinant in the FDI inflow in agriculture, as a well developedinfrastructure reduces the cost of doing business and poor infrastructure leads to less inflow of FDI in thesector.

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ASSESSMENT OF EFFECTIVENESS OF FOREIGN MANAGEMENT CONTRACTORSIN PUBLIC ENTERPRISES

The case of TTCL and TANESCO

Mrisho Shabani

Master of Business Administration (Finance) November, 2008

The objective of the study was to examine the role and effectiveness of foreign management contractors inTanzanian commercial public enterprises. It focused on two cases namely, Tanzania TelecommunicationsCompany Limited (TTCL) and Tanzania Electric Supplies Company Limited (TANESCO) (“the publicenterprises”). Both of them were managed by foreign management contractors at different times.The case study method was adopted. The primary data was collected through questionnaires and directinterviews with TTCL and TANESCO managers and staff and Government officials. The secondary datawere obtained from the enterprises’ audited financial statements for the period of the management contractors.The interpretation of the findings from the research shows that the foreign management contractors wereunable to achieve fully the key performance objectives in accordance with the terms of contracts. Theresearch has not identified improvements in the key performance areas of revenue and profitability,commercial (sales and marketing), technical performance (infrastructure development), financing andknowledge and skills transfer (capacity building) as per TTCL management contracts. Likewise, thefindings revealed lack of improvements in quality and reliability of power supply in the country during thetenure of the management contractor, Net Group Solutions in TANESCO, against the contract terms. Inaddition, specific objectives of engaging Net Group Solutions of restructuring and unbundling the electricitysector and advising on the privatisation transactions for the companies which would have been created aspart of the restructuring process were not achieved.

Challenges that affected the performance of the public enterprises in general included poor marketing/sales strategy; lack of adequate capital; poor industrial relations/staff morale; and poor executive managementand organization culture. Organisation culture affected performance because the management contractorswere unable to transform fully staff working practices they found into modern and effective internationalpractices. It was also revealed that the foreign managers faced resistance from local staff and trade unionsbecause of the poor performance and inability to meet their expectations. Furthermore, staff sentimentswere still negative and the experienced resistance is likely to continue until the relationships between managersand staff are improved.

It is recommended to search and pursue alternative management strategies for the public enterprises toimprove performance. These include, but not limited to engagement of foreign counter parties to performthe capacity building role, not as executive managers as well as emphasis and enforcement on goodgovernance practices to local managers.


THE SIGNIFICANCE OF AFRICAN GROWTH AND OPPORTUNITY ACT (AGOA) ONTANZANIA TRADE PERFORMANCE FOR THE PERIOD OF 2001-2005

Cecylia Njau

Master of Degree in International Trade, January 2007

In 2002, Tanzania joined the GSP of the United State of America called AGOA which was enacted underthe AGOA Acceleration Act of 2000. AGOA offers duty free and quota free market access for 6700products from Sub-Saharan African (SSA) countries. In addition, since the country joined AGOA-GSPFramework, her trade performance in comparison with other SSA-countries has not been impressive inutilizing such preference. Therefore, this study examines the significance of AGOA on Tanzania’s tradeperformance for the period of 2001 to 2005, and examine whether such bilateral trade presents an opportunityfor Tanzania’s exports to United States of America (USA).

However, the findings of this study revealed that the country has not well utilized this opportunity inaddressing her trade development in comparison with other SSA countries like Kenya, Lesotho and SouthAfrica. In that regard, AGOA appears to be significance for Tanzania trade performance as hypothesised.

In order for Tanzania to utilize the opportunities emanates from multilateral trading system it has toaddress the supply-side constraints and make reforms in its institution framework and the issue of legal andregulatory framework.

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TESTING THE CONVERGENCE OF THEORY AND EMPIRICAL EVIDENCE ON THEDETERMINANTS OF EXPORT PERFORMANCE – LESSONS FROM TANZANIA

Gandye, George

Master of International Trade, January 2007

What determines export performance is the main thrust of this study. Using gravity model, a regressionanalysis is run for the period of thirty years and the result is as anticipated to depict a positive relationshipbetween dependent and the explanatory variable with exception of macro - economic condition and tradefairs. However, while the relationship is positive, the level of significance has largely been low an indicationthat the explanatory variables have not sufficiently influenced the dependent variable. These pillars essentialto address the supply side constraints are so embedded and got to be improved in an integrated manner ifat all Tanzania is to perform well in the external sector given the potential market access.

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ASSESSMENT OF IMPACT OF TRADE LIBERALISATION ON TANZANIA TRADEBALANCE 1975 – 2005: AN ECONOMETRIC ANALYSIS

Vedastus Biswalo Manumbu


This study is about assessment of impact of trade liberalization on Tanzania balance of trade and otherfactors that influencing it. It shows that apart from the fact that Tanzania has been undertaking variousmacroeconomic reforms including trade liberalization but she still facing deficit balance of trade since1970’s.

The study also reveals that Tanzania has not been performing well in external sector since early 1970swhich in turn lead to low export and high import. This low performance is caused by a number of factorsamong others include, inappropriate policies adopted in accessing foreign markets, non trade barriers inthe foreign markets, supply side constraints, soft and hard infrastructure constraints.

The study shows that trade liberalization and other factors such as household consumptions, governmentexpenditure, real exchange rate and foreign direct investments are contributing toward worsening Tanzaniatrade balance. But only income to the rest of the world is variable which improve Tanzania trade balance.

Tanzania government has to do a lot of things in order to improve her balance of trade by employingvarious measures among others are: - creation of policies which would make our local products to accessforeign markets, the government has to reduce its expenditure on luxury goods, addressing supply sideconstraints, to attract foreign direct investments for foreign market, to sensitize the public to consume localproducts and to increase negotiation on removal of Non Tariff Barrier in foreign markets.

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THE IMPACT OF FOREIGN DIRECT INVESTMENT ON MANUFACTURED EXPORTSIN TANZANIA MAINLAND

John Mathew

Master of International Trade- February, 2007

This study seeks to establish the impact of FDI on manufactured exports in Tanzania Mainland for theperiod 1975 – 2005. Despite substantial increase in FDI and growth of the manufacturing during the studyperiod, the share of manufactured exports has been growing slowly. E – View 3.1 was used for theeconometric analysis. The study found that growth of manufactured exports in Tanzania is mainly affectedby the real GDP growth rate, manufacturing sector growth rate and Foreign Direct Investment. Whilenominal exchange rate and inflation rate had minimal impact on the share of manufactured exports inTanzania during the analysis period.

The small share of manufactured exports was explained by the fact that, Production of FDI projectsinvested in the manufacturing sector was not export oriented during the study period. These results implythat efforts to promote FDI projects for manufacturing export products should be emphasized by thegovernment. Possible areas for further research are on the impact of FDI on government revenue, technologytransfer and employment in Tanzania.

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WILL TANZANIA BENEFIT FROM THE EAST AFRICA CUSTOMS UNION?

Hodrum Benedict Suleiman

Master of International Trade, February 2007

This study focuses on the implications of the EAC-CU in the Tanzanian perspectives. In view of theimportance of trade to economic development, this study provides a cost benefit analysis of Tanzania’sparticipation in the revived East African community specifically, the EAC-CU within the context of thefast-tracking to the proposed East African Federation by 1212. The study dwells on how Tanzania willmaximize the benefit of its EAC-CU membership and at the same time minimize the negative consequencesresulting from the same in the short run as well as long run.

The study used mainly desk research for purpose of data collection and fact-finding. Interviews withgovernment officials responsible with the EAC-CU, Export producers, business leaders and ordinarycitizens were also conducted in order to get the real feelings from stakeholders. We also usedMacroeconomics assumptions and computer-based spreadsheets for data analysis and trends forecast.The study analysed the tariff structure under the EAC-CU, trade flows and revenue implications resultingfrom CET as well as internal tariff elimination.The study concludes by giving the impacts, opportunities available, the challenges facing Tanzania and theforeseen threats to the Tanzania’s businesses resulting from the country’s participation in the EAC-CU. Ingeneral, the study found that EAC-CU has significant welfare benefits arising from grater competition,economies of scale and higher level of trade and investment. The study recommends that the EAC-CU becarefully crafted to avoid imbalances, as it was the core cause of the collapse of the 1967 EAC.

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PARTICIPATION OF DEVELOPING COUNTRIES IN THE MULTILATERAL TRADENEGOTIATIONS

The Case of Tanzania

Erick E. Kirumba

Master of International Trade, July 2007

The objective of the study was to analyse and point out how developing countries and Tanzania in particular,participating at WTO multilateral negotiations.

In preparing this study, both primary and secondary data were collected.The study has found that participating in WTO negotiations is important to developing countries and

Tanzania in particular. It has also been revealed that despite developing countries participating in WTOmultilateral negotiations, they have not benefited much in terms of cost invested, time and economicdevelopment. The majority of the population are still living in poverty. Agriculture dominated the economy,contribution to national GDP is more than 46.7%; trade contributes less than 17% of the national GDP.In this study it has also been noted that developing countries fail to defend their interests at WTO negotiations

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effectively because of three major factors which include: capacity building, involvement of stakeholders inthe negotiation process and finally insufficient attention being paid to demands of developing countries atWTO multilateral negotiations.

It is recommended that developing countries should embark on human resources training in tradenegotiations techniques, make adequate preparations before the meetings, proper utilization of WTO andJITAP technical support and ensure effective involvement of stakeholders in preparation of the country’spositions.

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THE IMPACT OF GOVERNMENT PROTECTED DISTIBUTORS ON THEPERFORMANCE OF OTHER PUBLIC PROCURING ENTITIES IN TANZANIA

A Case of Regional Medical Officers’ Procuring Units Of Iringa And Ruvuma Regions

Benezeth Kamala Ruta

Master of Business Administration November, 2008One of the key issues in good governance is spending public funds in an efficient, effective and economicalmanner, which may be achieved through among other measures the use of a value for money publicprocurement process coupled with accountability for procured goods and services.

As one of the strategies for achieving value for money procurement objectives, the Government ofTanzania decided to have in place some public protected distributors from which other public procuringentities would source their goods, supplies and services, which however, could not work as expected.

In an attempt to investigate the impact which protected public intermediaries have on other publicprocuring entities, two regional medical offices for Iringa and Ruvuma were studied. The conclusion reachedwas that protected distributors affect the performance of other procuring entities adversely, due to existenceof conflicting laws.

Given the above conclusions, it is recommended that all laws and regulations which govern publicprocurement should be harmonized to eliminate conflicting operations, and that protectionism of publicdistributors should be withdrawn thereby letting them to operate semi-autonomously in an open competitiveenvironment.

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CUSTOMER CARE TOWARDS BUILDING CUSTOMER SATISFACTION

A Case of the University of Dar es Salaam

Casmir Fabian

Master of Business Administration (Human Resource Management ) November 2008

The major objective of the study was to investigate the impact of customer care towards building customersatisfaction. The study was conducted using survey by taking the University of Dar es Salaam as a casestudy.


The findings show that there were significant contributions of customer care on the customer satisfaction.Apart from that, the study revealed that University of Dar es Salaam customers are moderately satisfied.This suggests that more customer care efforts are desired in order to make the customers very satisfied.

The study recommends that all UDSM supporting staff should be trained on customer care issues. Inaddition to that, the UDSM management should explore and implement other strategies which will maketheir customers very satisfied apart from employing customer care approach.

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ASSESSMENT OF EFFECTIVENESS OF ELECTRONIC BANKING IN TANZANIA

The Case of CRDB Bank Ltd.

Peter Emilian


Technology has introduced new ways of delivering banking services to customers, such as ATMs andInternet Banking. Banks began to look at e-banking as a means to replace some of their traditionalbranch functions. E-banking products/services like ATM and electronic funds transfer were a source ofdifferentiation for banks that utilized them. Introduction of Electronic Banking has created many benefits inbanking industry but at the same time, has brought some challenges.

This research analyzed effectiveness of e-banking on improving performance of banking business inTanzania. It specifically examined contributions of e-banking on banking business performance, enablingfactors for e-banking and the challenges of e-banking. Also it sought to find out whether or not adoption ofe-banking has brought positive changes on banking business growth. The case study method was usedthrough sampling of respondents from CRDB Bank Ltd employees.

Primary data were collected by using questionnaires; Secondary data were obtained from variousCRDB Bank Ltd documents such as bank’s annual reports and its website. This study has established thatintroduction of e-banking has increased the bank’s profitability due to fast and reliable services offered bye-banking, increased customer base, quality customer services, and low overhead expenses.

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THE IMPACT OF OUTSOUCING DISTRIBUTION FUNCTIONS ON THE COST OFDISTRIBUTION

A Case Study of Coca Cola Kwanza ltd.

Franciscus Mwandalima Kipanga


This study intended to investigate the impact of outsourcing distribution functions on the cost of distribution.Interview and documents review were methods which were adopted in collection of information in whichcase Coca Cola Kwanza Ltd was the company of study.

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Findings indicate that outsourcing of distribution function has a great role to play in reducing costs ofdistribution of the manufacturing firms. It was also noted that success of this strategy depends on howaccurately the outsourcing firm has evaluated the parties who will distribute the products on their behalf. Ithas found that the outsourcing company must not withdraw completely from distribution but they mustprovide support to distribution so that the function runs successfully. This includes training, rewarding thebest distributors, incentives also developments of mechanism to control and measure performance.

Manufacturing companies were advised to outsource distribution functions to third party so that theyconcentrate on core function such as production and other issues relating with the improvement of qualityof the product. It was also re-emphasized that outsourcing companies must properly evaluate distributionnetwork of the parties they expect to hire their services. This factor is very important because an agent witha wide network will enable products to penetrate the market through the distributors’ channels of distribution.

The government has advised to ensure that it creates a sustainable business environment through provisionof good business policies guiding fair competitive practices, reviewing taxes on distribution which willinfluence investors in this sector.

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INDIVIDUALS’ AWARENESS AND PARTICIPATION ON THE DAR ES SALAAMSTOCK EXCHANGE

The Case of Individuals of Dar es Salaam Region

Herman Patrick Goodluck


This study conducts an assessment on the awareness and participation of the residents of Dar es Salaam inthe Dar es Salaam Stock Exchange (DSE). Additionally, the study analyses the factors that cause minimalparticipation in the DSE more than a decade since its inception.

The study suggests a theoretical framework to explain the process whereby awareness may be acquired.Producers and distributors of information have an incentive to inform those who once informed are morelikely to invest in shares and have lower cost of spreading information. In addition, social learning representsa further channel through which potential investors can become aware.

Field survey shows among other things, many of the local individuals can be described as low incomeinvestors. A significant percentage has no post primary education and their knowledge of the capital marketis quite poor.

The study recommends a strong campaign to educate the Tanzanian public about the activities of theDSE and to promote investment in general. There is need for the government to perform regular review ofthe legal and regulatory framework within which the investment laws operate in order to boost the confidenceof investors.

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A STUDY ON THE MARKETING STRATEGIES INFLUENCING THE PERFORMANCEOF WILDLIFE-SELLING OPERATIONS

The Case of Wildlife Management Areas

Sisti Wilbald Marishay


This research attempted to study the marketing strategies influencing the performance of wildlife-sellingoperations in the Wildlife Management Areas (WMAs) in Tanzania. This study specifically intended toassess whether there was a proper application of marketing strategies in the wildlife protected areas toinfluence the performance of the wildlife-selling operations. The study also assessed whether there wasany relationship between the marketing strategies and the customers’ buying decision, to ascertain whetherwildlife-selling operations, including pricing decisions in terms of special price offers, influence the customers’decision to buy wildlife products or services in the WMAs.

Self-administered questionnaires were used to collect data from the visitors, Authorised Leaders ofWMAs and the workers of the wildlife-based businesses operating in the area. The findings of the researchrevealed that marketing strategies (through newsetters, word of mouth, reading wildlife updates, tourismpromotion programmes, and organized clubs/association tour programmes) has a significant influence oncustomers, by attracting and reminding them to product or service in the WMAs of what is on offer andpersuading them to either buy or take part in wildlife-selling operations. A statistical test also shows thepositive relationships between marketing strategies and revenue performance in the wildlife-selling operations.In terms of special price offers, statistical tests show that entry fee offer and accommodation (i.e. campingfee offer) exerts a significant influence on customers’ decision to buy wildlife products/services from theprotected areas. Conclusively, it is evident from this study that marketing strategies have a significantinfluence on wildlife-selling operations in wildlife management areas in Tanzania.

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DETERMINANTS OF FINANCIAL SAVINGS IN COMMERCIAL BANKS IN TANZANIA

Ramadhani Saidi


This study investigates the Determinants of Financial Savings in Commercial Banks in Tanzania. The specificobjectives of the study were; to examine the main determinants of financial savings in Tanzania; to measureelasticities of the factors which determine financial savings in Tanzania and to investigate the behavior offinancial savings over time. To answer the research questions, two hypotheses were tested using Ordinaryleast squares from which long run relationship among the variables was established and using partialadjustment model short run relationship among the variables was established.

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The results suggest that increases in disposable income, deposit rate, population growth and financialreforms influences significantly financial savings. The analysis indicates that increases in disposable income,deposit rate, and population growth have positive impact on financial savings. An increase in inflation isfound to have negative impact on financial savings. Furthermore, financial savings and lending rate werefound to be significant in explaining credit available in commercial banks.

These findings imply that disposable income, deposit rate, inflation, population growth, lending rate,financial savings and financial reforms play important role in influencing financial savings and credits availablein commercial banks. Thus, policies that foster financial savings in commercial banks focusing on the aboveinfluential variables are highly recommended.

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EFFECTIVENESS OF INTERNAL AUDITING IN THE TANZANIAN PUBLIC SECTOR

Case of Selected Ministries, Independent Departments and Agencies (MDAs)

Josephat Machura


This study assesses the effectiveness of internal auditing in Tanzanian public sector whereby ministries,independent department and agencies (MDAs) were selected as case study. The study is based on fieldwork that concentrated in Dar es Salaam and Dodoma regions whereby discussions and intervieweeswere used to collect data. The study revealed that generally internal auditing in Tanzanian public sector isnot effective.

It was found that internal audit units are inadequately staffed, and there is little understanding among keystakeholders on the roles of internal auditing services in MDAs. Some perceive it as policing service henceprovide little or no support to internal auditors. Internal audit units in MDAs have low organizational status,many operating without budget lines, and very few executives who take actions on findings raised by chiefinternal auditors.

The results also showed that internal auditors contribute to the ineffectiveness by performing financialaudits only, and performing their duties without having official auditing standards and manuals which couldbe used as guidance.

The researcher therefore recommends to the Ministry of Finance to make sure that the required numberof internal auditing staff with relevant skills is recruited and maintained, action enforcing provisions withinthe legislations are in place, and independent and functional audit committees within MDas are madeoperational. Executives should provide conducive working environment by allocating enough funds tointernal auditing units, also by raising the status of internal auditing units in terms of remuneration and theorganizational status.

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FACTORS AFFECTING EFFICIENT AND TIMELY SETTLEMENT OF INDUSTRIALDISPUTES IN TANZANIA

The Case Study of the Bank of Tanzania

Faustin Paul Kayombo


The Government’s intention to establish separate machinery outside the Ordinary Court System to dealwith Trade dispute settlement was to speed up the resolution process, yet the practice is opposite. Manytrade dispute cases take so long to be finalized. The objective of the study was to investigate factorsaffecting efficient and timely settlement of industrial disputes in Tanzania. It was a field research whichfocused on present occurrences and it used cross section approach.

This study has come up with findings on the factors that affect efficient and timely settlement of industrialdisputes such as lack of training of the key players, lack of other resource such as finance and machinery,outdated laws etc. Findings gathered in this study show that the current administrative and litigation processin trade dispute settlement does not provide what was actually expected at the time of establishment.

The Study concludes that the bottlenecks that cause delay and inefficiencies in settlement of tradedispute in Tanzania should be completely eliminated and the machinery responsible for settlement of tradedisputes should be transformed and strengthened.

It further recommends that an efficient system of trade dispute settlement should be established shouldbe able to involve both the employee and the employer, capable of solving disputes efficiently and timely,come up with decision that are consistent with the law and should not involve a lot of costs in a dueprocess.

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PERFORMANCE DIFFERENCES OF BROILER PRODUCTION BY LARGE ANDSMALL SCALE FARMS: A COMPARATIVE STUDY IN DAR ES SALAAM

Hassan Kassim Seyvunde


As it has been usual for Tanzanians to invest in new booming businesses, the same practice has fallen topoultry business. People have been inquiring to those in poultry business how to run the poultry businessefficiently.

The overall objective of this study was to identify performance differences of broilers growing in largeand small scale farms by efficiencies parameters. Specifically, the study looked at areas to identify causesof mortality and how to control the mortality rate in broiler growing, to examine the quantity as well asquality of feed used including resultant broilers weight gained after eating that feed, the Feed Conversion

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Ratio (FCR) and to assess whether or not broilers gain desired weight at the time of cropping after allmanagement and supervision activities. Research design used was descriptive, involving both qualitativeand quantitative approaches based on cross sectional study and surveys.

The study found evidence that mortality, Feed Conversion Ratio (FCR) and broilers’ general managementaffected farms where they were not well managed. Also the study supports other literature sources. Largefarms were found with many resources but still they did not, on average, perform well as expected. On theother hand, small farms with little resources, on average, performed well. Low workers’ motivation leveland slow response in broilers problems let large farms down. Small farms were managed better than largefarms due to close supervision and quick reactions on broilers issue.

It was concluded that being large and full of resources alone were not enough to produce broilersefficiently. It was crucial to address other problems especially when faced with problems for a long time. Itwas imperative to give training to broilers workers, while the government has to abolish Value Added Tax(VAT) on broilers feed, which is not recovered to enable small farmers afford as well as use good qualityfeed for far better results.

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TO LIST OR NOT TO LIST AT DSE: WHY CANDIDATE COMPANIES HESITATE?

Zainab Msimbe

Master of Business Administration (Finance) November, 2007

The Dar es Salaam Stock Exchange (DSE) is being regulated by the Capital Markets and SecuritiesAuthority (CMSA). The stock exchange was established in 1996 and is governed by the Council whichconsists of 10 members representing various interest groups in the society.

Since its establishment in 1996 there are only ten (out of which three are cross-listed) are listed with theStock Exchange. There are so many companies in Tanzania that meet the entry criteria into the DSEhowever the companies do not take initiatives to get listed at the DSE. The findings from this study will beuseful in evaluating the reasons that make companies in Tanzania hesitate to be listed at the DSE.

To assess such effect this study inquired on the reasons that make companies hesitate to get listed at theDSE and whether companies are aware of the opportunities that are offered by the stock exchange. Alsothe study evaluated whether listing has improved financial position of listed companies.

Data were analyzed quantitatively using the Statistical Package for Social Sciences (SPSS). Hypotheseswere tested using the Chi-Square test.

The findings show that the companies that are listed at the DSE are those that have been in operationsfor more than five years. It was also observed that the size of the company does not have any relationshipwith the listing status of the company. Other respondents said that they could not meet listing requirementsdue to their size. It was also noted that subsidiaries of foreign companies were in opinion that parentcompanies are listed in other markets and therefore it was not necessary for them to get listed at the DSE.

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THE IMPACT OF FINANCIAL REGULATIONS ON COMMERCIAL BANK LENDINGIN TANZANIA

The Case of the National Bank of Commerce

Matilda Anselim


This research presents a study on how commercial bank lending problems can be impeded by the strictgovernment financial regulations. Based on the number of texts and regulatory documentations worldwide,it is clearly viewed that bank lending experiences many regulations that cause inefficiency in credit provision.From the literatures a case of a leading commercial bank in Tanzania was used to test the problems thatblock free flow of credit to various sectors of the economy, ranging from individuals to corporate firms.A methodology employed towards this study took care of guided questionnaires and some interviews tobank officers working in credit related departments of the National Bank of Commerce (NBC) headoffice. Secondary data used were those that covering legal and regulatory framework and available financialinformation on bank lending, deposits, interest rate, and capital.

The study further analyzed data gathered using the Statistical Package of Social Sciences (SPSS)guided by simple hypothesis tests and chi-square model. From the study findings show that there exists anobstruction to efficient lending due to underlying regulations applicable in the process of bank lending.Measures recommended include a great need to review the regulations in place especially credit concentrationand other exposure limit so as to diversify the risk, liquidity regulation in order to increase the loanable fundby decreasing ratio of cash to deposit, capital adequacy and reserves both to be reduced to increase theloan provision.

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THE IMPACT OF MICROLENDING ON POVERTY REDUCTION IN SMALL ANDMEDIUM ENTERPRISES (SMEs)

The Case of National Microfinance Bank

Atupele Mwakalinga


The main objective of this study was to investigate the impact of microlending on poverty reduction inSmall and Medium Enterprises. The study was carried out using the survey approach where only SMEs inDar es Salaam were involved. The study covered Magomeni, Manzese and Karume areas.

Findings of the study indicate that, microlending activities have really changed the social economicstatus of SMEs. These changes include increase of sales units, level of employment and sustainability of thewhole programme.

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It is thereby recommended that MFIs should open more branches, especially in rural areas where themajority of the Tanzanian are found. If this is done the process of economic development of the nationwould speed up.

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ASSESSMENT ON HOW MICRO FINANCE INSTITUTIONS SERVICES INFLUENCESME’s GROWTH

The Case of SMEs in Arusha

Alex Reuben


The main objective of the study was to assess the influence of Micro Finance Institutions (MFIs) ongrowth of Small and Medium Enterprises (SMEs) in Arusha town. The study rely on the thinking that lackof sufficient services from MFIs to SMEs has been a serious obstacle to acceleration of SMEs growth.The findings of the study have revealed that MFIs services offered to their clients have an impact on salesturnover, profitability of business, capital investment, employment and hence SMEs growth. The findingsalso have revealed that Micro Finance Institution’s clients encounter short repayment period, high loancosts, bureaucracy guidelines and high interest rate. Furthermore, findings have revealed that small andmedium businesses are dominated by people with low level of education, therefore; Finance must go alongwith efficient superior quality of services from MFIs, trainings, sound marketing and business knowledge.This would imply the need for scientific, technical and administrative assistance to SMEs besides financial.However lack of government control on MFI interest rates and imprecise strategies to boost Small andMedium Enterprises were among the factors discovered that they hinder SMEs growth. In order to enhanceSMEs quick growth the following recommendations were put forward: increase loan size, review loanrepayment, undertaking effective training to enhance entrepreneurial skills and government involvement bycreating conducive and favourable environment for SMEs sector growth.

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EVALUATION OF THE EFFECTS OF LOAN CONDITIONS ON SACCOS’S CUSTOMERSATISFACTION

The Case of Kinondoni Municipality

Mary David


The study attempted to evaluate the effects of two loan conditions namely loan size amount and loanrepayment period of the SACCOS on customer satisfaction. The first objective of this study was todetermine whether the size of loan amount offered by SACCOS satisfied the purpose of their customerswho joined the institutions and the second was to determine whether loan repayment period satisfied thecustomers.


Data collection process employed two data collection instruments namely questionnaire andinterview. The researcher distributed the questionnaires to customers and employees of SACCOS andalso conducted interviews with the management. Thereafter, the data were coded and cleaned beforethe analysis using. The frequency tables and regression analysis were used in analysing and testing theresearch objectives as well as research hypotheses. The findings showed that customer satisfaction fromSACCOS was not affected by small loan size amount although short loan repayment period affected it.It was however affected by other factors like collateral, education level and skills, and type of businesscustomers dealt with.

The study recommends the need for the SACCOS to take the necessary measures in addressing theabove mentioned factors that dissatisfy customers. The measures were suggested include improvementof loans conditions, flexibility in loan amounts, increased repayment period and introduction of trainingfor both employees’ and customers.

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FACTORS INFLUENCING REVENUE GROWTH IN EXECUTIVE AGENCIES INTANZANIA

Robert Lucas Nzingula


The objective of this study was to examine the key factors affecting revenue growth of the establishedExecutive Agencies in Tanzania and to determine the major factors that lead to different revenue growthrates among the Executive Agencies.

It was hypothesized that the formation of Executive Agencies has promoted revenue growth and thatrevenue grows at different rates among the Executive Agencies due to the different impact of factorsaffecting revenue growth.Views from respondents were analyzed separately using tables and calculatingpercentages/frequencies.The study concluded that most of the factors under the study affect revenuegrowth. However Agencies with high revenue growth rates were found to be the ones which are ingrowing industries, which have suitable human resources management and which are well protected byback-up laws.

It is therefore recommended that the Government should look at all the factors which affect revenuegrowth and critically look at the nature of the industry in which the department is, and whether there areback-up laws before establishing or launching the respective Agencies. Executive Officers on the otherhand should be equipped with suitable human resourse management techniques.

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CONSTRAINTS IN FINANCING SMALL AND MEDIUM ENTERPRISES IN TANZANIA


Ibrahim Amulike Mwangalaba


Access to finance from the financial institutions for investment and working capital is a critical problem inthe country. The question is “what are the main constraints faced by SMEs in accessing credit from theformal financial institutions in the country?” The objective of the study is to establish constraints that contributeto the unavailability of credit to the SMEs sector in Tanzania.

The research used the case study design to obtain necessary and required qualitative and quantitativedata. SMEs operating in Dar es Salaam region have taken as the case study because SMEs in the countryare well developed in Dar es Salaam region than in the rest of the other regions. Both primary and secondarydata were collected and analyzed. The findings of this study reveal that while most SMEs use the servicesof the commercial banks in one or other respects, they still have difficulties obtaining finance. The mainreasons for the lack of finance are considered to be stringent lending conditions, bureaucratic decisionmaking and high loan processing costs on the part of the commercial banks and low financial managementskills on the part of SMEs.

It is thus, recommended that commercial banks should look into the possibility of creating a constantrapport in order to eliminate the perceptions they considered to be risk averse in financing SMEs by meansof training and substantial public awareness campaign that will bring together the commercial banks andthe SMEs concerned to discuss possible solutions to the problems at hand. This will increase confidencethe banks may have in the SMEs.

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FACTORS INFLUENCING REVENUE GROWTH IN EXECUTIVE AGENCIES INTANZANIA

Robert Lucas Nzingula


The objective of this study was to examine the key factors affecting revenue growth of the establishedExecutive Agencies in Tanzania and to determine the major factors that lead to different revenue growthrates among the Executive Agencies.

It was hypothesized that the formation of Executive Agencies has promoted revenue growth and thatrevenue grows at different rates among the Executive Agencies due to the different impact of factorsaffecting revenue growth. Views from respondents were analyzed separately using tables and calculatingpercentages/frequencies. The study concluded that most of the factors under the study affect revenue


growth. However Agencies with high revenue growth rates were found to be the ones which are in growingindustries, which have suitable human resources management and which are well protected by back-uplaws.

It is therefore recommended that the Government should look at all the factors which affect revenuegrowth and critically look at the nature of the industry in which the department is, and whether there areback-up laws before establishing or launching the respective Agencies. Executive Officers on the otherhand should be equipped with suitable human recourse management techniques.

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ASSESSMENT OF THE USE OF INTERNET TECHNOLOGY BY SERVICE SMEs INTANZANIA

The Case of Accounting Firms in Dar Es Salaam Region

Adelatus Cleophas Muttayabalwa

Master in Business Administration (Finance), November 2007.

The objective of this study was to examine if SMEs use internet technology effectively in their operations.The study used accounting firms in Dar Es Salaam in the survey and focused on checking if SMEs realizethe importance of internet technology and if they know all potentials the internet can provide. Also itfocused on the identification of internet category which is most used by SME and check if there are anycrucial category which is not currently utilized by SMEs. Another area which was focused on was thebarriers encountered by SMEs in their attempt to use this information highway.

Descriptive research method was employed using surveys and fact-finding inquiries. Data collectionwas through semi-structured questionnaire and analyzed using qualitative as well as quantitative techniquesincluding means, proportions and chi-square.

The study has revealed that the accounting firms are aware of the importance of the internet technologybut not aware of all the potential the Internet can provide. The internet is used by a majority of the firmsmainly for communication purposes, e-mail was found to be the most used. The study identified obstaclesas poor infrastructures, lack of internet resources and budget constraints to be hindering the effective useof internet by accounting firms. Another finding is that there exist a general reluctance by firms’s CEOs tochange and adapt these new technology especially use of the internet. Also it has been revealed that manyfirms’s CEOs had obtained internet knowledge through informal training.

Following these findings the study suggests that stakeholders should put a lot of emphasis on ICTtraining right from secondary school level. Accounting professional Regulatory authority (NBAA) is advisedto include ICT seminars and workshops as one of the priority in their Continuing Professional Educationprogramme for registered accountants.

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PERFORMANCE EVALUATION OF GOVERNMENT AGENCIES IN TANZANIA

The Case of Tanroads Agency

Charles Yohana Mhina

Master in Business Administration (Finance), November 2007

Most of the public sector reform programmes that have taken place in developing countries during the lasttwo decade were introduced as part of the Structural Adjustment Programmes(SAPs) of the World Bankin the 1980s.However, most of the more recent reforms, under the influence of the new public management,have been driven by the combination of economic, social, political and technological factors, which havetriggered the quest for efficiency and for ways to cut the cost of delivering public services. Additionalfactors, particularly for Africa, include lending conditionality and the increasing emphasis on good governance.

The public service (ministries, parastatals and extra ministerial department) has been always beenthe tool available to Tanzanian Government for the implementation of developmental goals and objectives.It is seen as a pivot for growth of Tanzania economies. It is responsible for the creation of an appropriateand conductive environment in which all sectors of the economy can perform optimally, and it is thiscatalytic role of the public service that propelled Government to find the permanently solution for thebetter ways to deliver their services.

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DETERMINANTS OF FINANCIAL SAVINGS IN COMMERCIAL BANKS IN TANZANIA

Ramadhani Saidi


This study investigates the Determinants of Financial Savings in Commercial Banks in Tanzania. The specificobjectives of the study were; to examine the main determinants of financial savings in Tanzania; to measureelasticities of the factors which determine financial savings in Tanzania and to investigate the behavior offinancial savings over time. To answer the research questions, two hypotheses were tested using Ordinaryleast squares from which long run relationship among the variables was established and using partialadjustment model short run relationship among the variables was established.

The results suggest that increases in disposable income, deposit rate, population growth and financialreforms influences significantly financial savings. The analysis indicates that increases in disposable income,deposit rate, and population growth have positive impact on financial savings. An increase in inflation isfound to have negative impact on financial savings. Furthermore, financial savings and lending rate werefound to be significant in explaining credit available in commercial banks.

These findings imply that disposable income, deposit rate, inflation, population growth, lending rate,financial savings and financial reforms play important role in influencing financial savings and credits availablein commercial banks. Thus, policies that foster financial savings in commercial banks focusing on the aboveinfluential variables are highly recommended.

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EVALUATION OF THE PERFORMANCE OF GOVERNMENT REGULATORYAUTHORITIES IN TANZANIA

Said Mteule Mohamed Ulaya


The government of Tanzania between financial year 2001 and 2003 established Government RegulatoryAuthorities to promote and enforce compliance by Regulated service Providers. The problem, whichleads to this study, is importance of evaluating the performance indicators Regulatory Authorities that havebeen in existence for the past three years ended June 30, 2007 to establish their sustainability.

The research was conducted through the structured questionnaires, the researcher obtained secondarydata (the documentary audited financial statements and statistical report) from Government RegulatoryAuthorities that have been in the operations for the past three years.

The results show that Regulatory Authorities had adequate financial resources to live up within theirown means and were financially healthier during the studied period hence their were unlikely to facefinancial distress.

The study gives an insight for future policy making to the Government. The going concern of all RegulatoryAuthorities was positive and all three Government Regulatory Authorities under the study pass Altman’s Z-Score test. The study recommend to the stakeholders to review conflicting legislations, retain the currentsources of revenue and revise downwards the rates charged to service providers and consumers.

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ACCESS OF ECONOMICALLY ACTIVE CUSTOMERS TO UNSECURED OR PARTLYSECURED CREDITS FROM BANKS IN TANZANIA


Xavery Makwi


The study attempts to look for and examine the effectiveness of alternative non-asset based credit riskmitigants. The literature suggests that collateral, though not the first way out in lending decisions, is thesecond dependable way out. Its importance is given weight by banks’ supervisors to the extent of havingexposure limits based on collateral adequacy (BOT, 2001). The study was prompted by the fact thatdespite having the collateral requirement, banks cannot fully recover the loans through sale of mortgagedassets in case of default (Mlabwa, 2004).

The study was conducted using CRDB Bank Limited as a case study utilizing secondary data collectedfrom customers’ credit files and database for court cases by use of a secondary data collection form.Questionnaires were administered to bank lending staff, customers and land as well as company registrystaff for collection of primary data. The data were analyzed through descriptive and inferential statistics.

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The main finding of the study is that credits can perform better regardless of the level of collateral adequacyprovided that sound lending procedures are adhered to at all levels of credit management during the life ofthe credit. Banks need to enhance credit processing, supervision and monitoring and ensuring a goodcustomer-banking relationship.

In order to enhance access to credits for small-scale customers, perceived as high risky, the studyrecommends for banks to have dedicated units to cater for the needs of that segment.

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PURCHASES MANAGEMENT AND REPORTING IN PUBLIC SECTOR

The Case of Tanzania Ministries

George Mayenzeka Mokaka

Master in Business Administration (Finance), November 2007

This research paper is concerned with the Purchases Management and Reporting in Public sector. Thestudy was conducted in the Tanzania Ministries in Dar es Salaam.

Briefly the research makes use of descriptive statistics to analyse the Purchases Management andReporting in Public sector. A sample of 100 respondents was picked from 10 ministries in Dar es Salaam.The results show that the Purchases management and reporting in public sector plays a big role in thewhole process of public procurement. In order public procurement to be conducted properly the governmenthas to establish appropriate tools to manage it and procurement practitioners have to comply with thePPA, 2004 and PPR, 2005 in executing their duties and responsibilities.

Despite having these controlling and managing tools the study also found that, there are factors thatcontribute to poor procurement practices in public sector, these include lack of knowledge and understandingof PPA 2004 and PPR 2005 by both procurement practitioners and bidders; lack of procurement auditors;absence of stern measures against poor procurement practitioners; poor preparation of specifications andterms of references; pressures from other interested parties like senior officials and politicians and thedecentralization of auditing institutions.

This research, though limited by inadequate availability of empirical literature particularly those discussingpurchases management in public sector; the limitation however does not substantially reduce thegeneralizations of the results.

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THE IMPACT OF MARKETING PROMOTION ON CONSUMERS INCREASEDSERVICE USAGE RATE

The Case Study of Mobile Phone Services in Tanzania

Fahamuel Elinazi Mnkeni

Master of Business Administration (Marketing), November 2007The study investigated the impact of marketing promotions on consumers’ decision to make increased useof the mobile phone services in Tanzania. Five objectives guided this study, namely, investigating the influence


of marketing promotion elements on consumers’ attitudes to make increased use of the cellular phoneservice, the direct influence of marketing promotion elements on consumers’ intention to make increaseduse of the service and to assess whether reinforced attitudes cause consumers intention to make increaseuse of the service. Lastly, to assess whether consumers who intended to make increased use of the serviceeventually did so and to explain the factors causing mobile phone service consumers to change to anotherservice provider.

The qualitative and quantitative data were used to generate reliable data for the study. Primary datawere collected from five regions, using structured questionnaires and observations, including considerationof the secondary data. The research data were analyzed by using the SPSS package and non-parametrictest (chi- square test) was applied to verify the proposed hypothesizes.

The overall findings revealed that marketing promotion has a significant influence on increased usagerate decisions. The study established that advertising and sales promotion are effective and efficient marketingpromotion strategy that can provide proper marketing information to the consumers.

The study concluded that marketing promotion has a significant influence on consumers’ decisions tomake use of the increased service. Therefore mobile phone service providers need to understand theirconsumers well and apply the most effective and efficient promotion elements that make consumers awareof the service to consumers with minimal inconveniences.

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THE EMPLOYABILITY OF TANZANIANS AMONG INTERNATIONALORGANISATIONS

The Case of Dar es Salaam Based International Organizations

Faustine Rutahigwa Gerald Nzigu


This study intended to document the state of employability of Tanzanians among International Organisations.In order to attain that this study’s methodology was based on field survey within a framework of participatoryresearch methodologies.

As it was expected, several factors that determine the employability of both Tanzanians and non-Tanzanians were established. The causes for international organisations’ tendencies of selecting non-Tanzanians for positions whose qualifications are possessed by Tanzanians is due to competence criteriathat have been established to be due to lack of required job skills. In order to determine Tanzanians’ labourmarket competitive advantage in the East African region, the human resources possible solutions havebeen suggested. It has been found out that Tanzanians competitive advantage is in jeopardy due toglobalisation, regional integration and lack of job skills if steps to address these are not taken immediately.However, it is positively indicated that the Tanzanians have the required knowledge, experience and butweak again in job commitments and attitude. The study has documented suggestions that Tanzaniansshould be exposed to wide worldviews and get involved in world issues and avoid parochial closed-doorpolicy. In so doing the Tanzanians will be well placed in the international and local labour markets and thuslikely to be equally competitive in the coming East Africa Federation.

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FACTORS INFLUENCING DEMAND FOR PROCESSED CASHEW NUTS INTANZANIA:

The Case of Dar es Salaam region

Dasik Mohamed


This study focused on identifying factors that influence demand for processed cashew nuts. Various factorsthat contribute to deriving demand were identified such that research hypotheses were formulated focusingon those factors present on the sample. Both qualitative and quantitative methods were used to conductthe study in Dar es Salaam region.

The study revealed that cashew-nut appearance is a major factor, which influences people to buy it.Package type as well as price for certain packing determines demand level.The study further observed that customers unaware of different grades of processed cashew nuts. Hence,they failed to distinguish between wholly and split cashew nuts. It was further confirmed that both salt-roasted and sugar roasted cashew nuts had the same demand level.

The study recommends that Small-scale processors and sales outlets should continue offering assuredsupply and promoting their product to get more customers. More efforts should be used to continueprocessing cashew nuts locally and packaging to create more jobs as well as local consumption.This study focused on identifying factors that influence demand for processed cashew nuts. Various factorsthat contribute to deriving demand were identified such that research hypotheses were formulated focusingon those factors present on the sample. Both qualitative and quantitative methods were used to conductthe study in Dar es Salaam region.

The study revealed that cashew-nut appearance is a major factor, which influences people to buy it.Package type as well as price for certain packing determines demand level.The study further observed that customers unaware of different grades of processed cashew nuts. Hence,they failed to distinguish between wholly and split cashew nuts. It was further confirmed that both salt-roasted and sugar roasted cashew nuts had the same demand level. The study recommends that Small-scale processors and sales outlets should continue offering assuredsupply and promoting their product to get more customers. More efforts should be used to continueprocessing cashew nuts locally and packaging to create more jobs as well as local consumption.

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ATTITUDES TOWARDS BORROWING

A Case Study of Entrepreneurs of Kinondoni Municipality in Dar es Salaam Region, Tanzania

Lucia Damas


The objective of this study was to investigate on the attitudes towards borrowing for entrepreneurs ofKinondoni Municipality. The sample of the study was identified through snowball technique in order to getmodest sample for the efficiency of the study.

The primary data were collected by using structured questionnaires and interviews in order to obtainreliable information for the study. The questionnaires and interviews results were run through Micro SoftExcel to obtain data for analysis. However, the conclusion as to entrepreneurs’ attitude towards borrowingwas drawn using both qualitative and quantitative analysis.

Generally the study revealed that despite Tanzanian sector being liquid, many SMEs owners meet mostof their financial needs through informal financing, such as friends, and relative sources. Further the studyreveals that entrepreneurs attitude towards borrowing is influenced by lengthy lending procedures, thequestion of collaterals, high interest rates, asymmetric information and lack of knowledge on bankablebusiness plan.

Therefore, in order to improve SMEs and banks relationships the elimination of asymmetric informationis of paramount importance. Further it recommends that the government of Tanzania and its regulatoryauthorities should review all laws and regulations that impede the achievement of efficiency in lending toSMEs hence improving Tanzania’s overall economic performance.

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THE INFLUENCE OF SELECTED FACTORS ON CUSTOMER SATISFACTION

The Case of Corporate Banking in Tanzania

Theresia Peter


The objective of this study was to examine the influence of product characteristics, logistical support andinformation quality on customer satisfaction in the corporate banking in Tanzania with specific reference toDar es Salaam. Three research questions and hypotheses were operationalized in this study namely; thevalue of the product characteristics provided to corporate clients is inversely related to satisfaction; thelogistical support provided to corporate clients, is negatively related to the perceived customer satisfaction,and the reliability of information to corporate clients, is negatively related to satisfaction.

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A descriptive research design was employed to address the above objectives collecting data from a sampleof 65 respondents through the use of semi-structured questionnaire. Hypotheses raised in the study weretested by using non-parametric tests, particularly chi-square tests.

The study found out that the value of the product characteristics provided to corporate clients is positivelyrelated to satisfaction. Besides that, it has been found out that, the better the logistical support provided tocorporate clients the higher the perceived customer satisfaction with an exception of the customer care andfollow ups provided to clients which seem not be of significance in the satisfaction of the clients. It wasfurther found out that, the more reliable the information offered to corporate clients, the higher the levels ofcustomer satisfaction.

Further research is needed in this area of corporate banking to leverage the findings and provide betterand more in-depth implications for both theory and practice.

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THE IMPACT OF CREDIT GUARANTEES ON CREDIT POLICIES AND OPERATIONSOF BANKS IN TANZANIA

Revocatus Jeremiah Mtaki


The study attempts to look for and assess the impact of credit guarantee schemes on the credit policies ofbanks in Tanzanian environment. Implicit to that the study investigated the existence of moral hazards toboth banks and borrowers for guaranteed credits. According to Deleen and Molenaar (2004) the guaranteeschemes widen the credit facility accessibility. Gudger (1998) contends that credit guarantees have beenrecommended as a means of addressing the difficulty in developing countries around the world in obtainingformal sector credit for SME and micro borrowers. However HM Treasury (2005) cited one majoradverse consequence of offering protection through credit guarantee schemes to be the emerging of moralhazard.

The research used the qualitative approach and data was collected using both questionnaires andinterviews. Secondary data was collected from banks data base for credits extended under the guaranteeschemes arrangement.

The study concludes that there is no distinction between loans guaranteed by Credit Guarantee Schemesand those secured by other acceptable collaterals. The study found the existence of moral hazards to someextent and that banks should put internal supervision mechanism to ensure lending staff adhere to bankcredit policies.

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AN ANALYSIS OF TANZANIA’S EXPORT DIVERSIFICATION

A Case of Spices Export

Crispin Francis Chalamila

Master of International Trade, November, 2008.

This study is set out to assess and analyze export diversification of Tanzanian, a case of spices export.The E - Views was employed on econometric analysis of quarterly spices export data for the 2001-2007period. The focus was to see how different variables such as; real exchange rate(RER), investment as aratio to GDP(INVGDP), GDP index of Tanzania’s major trading partners(YTRADI), domestic income(Y)and previous years’ spices export (SX) impact Tanzania’s spices export.

The study has found that the main determinants of export diversification in Tanzania include REER, Y,YTRADI, and INVGDP. Generally, the factors confirmed the theoretical postulates and findings of previousstudies that export diversification is by large extent driven by the economic level of income, investment andGDP index of the trading partners and the real exchange rate.

Generally the study concludes that spices export growth is dependent on the real exchange rate, thenational income, the GDP index of Tanzania’s main trading partners and total investments as a ratio toTanzania’s GDP. Furthermore the study recommends that Tanzania enhances trade with other countries inorder to promote export diversification and spices export growth in particular. This is due to the significanceof of the GDP index of Tanzania’s major trading partners (YTADI) variable included in the model.

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MOBILE PHONE FINANCIAL SERVICES AND BUSINESS PERFORMANCE

The Case of Vodacom (T) Ltd.

Boniface Emmanuel


This paper examines mobile phone financial services and business performance. The empirical data for theexploratory study was collected by establishing six focus group sessions supplemented by secondary datafrom Vodacom and the sampled agents in the city of Dar es salaam. The results show that there is relativeadvantage of mobile money transfer including time and place independence, availability, possibilities forremote transfers, and queue avoidance. Premium pricing of transfers, complexity of transfer procedures, alack of widespread merchant acceptance, and perceived risks were identified barriers.

With regards to business performance, as of July 2008, the service had a total of 254 active agentscountrywide. Customer growth projection up to January 2009 is estimated to be more than twice of thatof October, 2008 (111,102 clients). Intuitively, the introduction of M-Pesa service has contributed in new

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customer connection from 4.2million to 5million with new 1,000 customers daily from M-Pesa. Additionalaverage revenue per user (ARPU) of Tsh 800 has been realized from 55,551 M-pesa registered customers.

The study recommends to Vodacom (T) Ltd to develop the belief of usefulness (adequately provisionof education programmes) and ease of use of the service including also rectification of the perceivedweaknesses like poor inter network connectivity, security and service availability. Further to this is for theM-pesa agents to be flexible in the identification of customers.

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FACTORS CONSTRAINING THE DEVELOPMENT OF LEASING IN TANZANIA

The Case of Selected Banks in Dar es Salaam

Deodatha Mutagonda


The main objective of the study was to find out factors that limit the development of leasing services inTanzania with a focus to banks. The study also found out means for making leasing become available topublic especially the SMEs. The services currently being rendered by some of the institutions, banks inparticular, are at a minimal scale. There are no much studies done in the country that explain in depth whyleasing services are not being rendered by the banks and other finance companies as compared toneighboring countries of Kenya and Uganda.

The research method involved the use of questionnaires and interviews as a means of collecting datafrom different levels of bank employees of selected banks in with headquarters/offices in Dar es Salaam,as well as documentary review. Data obtained were analysed both qualitatively and quantitatively. Theresults from questionnaire methods were generated by the use of SPSS package through which findingswere deduced. The interview method involved face-to-face meetings with selected staff whereby responseswere recorded and reported to complement the questionnaire responses.

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INVESTMENTS OF SOCIAL SECURITY FUNDS: A NEED FOR COMMONGUIDELINES IN TANZANIA

William Emmanuel Baruti


The current Social Security System seems to have many shortcomings due to lack of common guidelinesfor investments of social security funds in the country. The Social Security Sector in Tanzania is fragmentedand the Social Security Funds are placeunder different ministries with different operational and administrativerules and procedures.


In radiance of the potential need of common guidelines for investments of social security funds in thecountry, this research examines whether there is rationale justifying its establishment of the same guidelinesin Tanzania. It also highlights an overview of Social Security Schemes in Tanzania, their traditional investments,draws conclusions and recommendations on the efficacy of establishment of common guidelines forinvestments of social security funds in Tanzania.

Specific objectives of this study are to assess the need of common guidelines for investments of socialsecurity funds in the country; identification of opinions of Social Security Stakeholders on the need of thesame common guidelines. In relation to the need of common guidelines for investments of social securityfunds in Tanzania, findings from the field revealed that 91.0% of respondents agreed that there is a need ofcommon guidelines for investments of social security funds in the country, 6.7 % disagreed while only2.2% were unable to make decision.

In its concluding remarks, the study urges that, lack of common guideline for investments of socialsecurity funds in Tanzania, is a significant problem which has to be addressed properly before it causestringent and intricate implications on provision of Social Security protection to the Tanzanians by theSocial Security Institutions and other players in the Social Security Sector.

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THE IMPACT OF FINANCIAL SECTOR REFORMS ON INTEREST RATE SPREADS INTANZANIA

Mohamed Papa Kailwa


In sub - Saharan Africa, financial systems have been shackled with extensive, imprudent regulations operatedon inefficient grounds and dominated by few institutions, mainly state owned commercial banks (Mwega etal 1990). Despite the world implementation of financial sector programmes in the developing world, bankingsectors in many developing countries are still characterized by persistently high interest rate spreads. Thequestion that deserves attention however is whether financial sector reforms had significant effect on interestrate spreads in the country. In recent years, interest rate spreads have become of paramount importance toboth investors and borrowers in making their respective decisions. This has an important implication forthe growth and development of the economy, because there is a significant link between the efficiency offinancial sector intermediation and economic growth (Ndung’u 1997).

The research hypothesis of the study among others was to test whether there is no direct relationshipbetween financial sector reforms and interest rate spreads. The study employed various measurementmethods to generate field data i.e. survey (interview) and observations.

Findings from the study indicate that financial sector reforms have not managed to address the questionof high interest rate spreads in the country as financial institutions particularly commercial banks continue toenjoy high interest rate on their various lending products. Our results, therefore, suggest that while certainmacro and policy variables are important determinants of interest rate spreads (IRS), other factors relatedto operational efficiency and profitability of individual financial institutions should be considered too.

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659UDBS

THE IMPACT OF POWER RATIONING ON THE PERFOMANCE OF SMALL ANDMEDIUM MILLING BUSINESSES IN TANZANIA


Theodory F. Bayona


This research evaluated the impact of power rationing on the performance of the small and medium millingbusinesses in Tanzania. The study sited the milling enterprises in the three districts of Dar es salaam region.The evaluation of the impacts concentrated most on the income and cost of production of the millingenterprises, the income of the workers of the milling enterprises and their families as well as the overallperformance of TANESCO and milling enterprises during power rationing period.

The total number of questionnaires that were administered was 100. Out of those, 94 were receivedgiving the response rate of 94%. The questionnaires were aimed at capturing responses from TANESCOemployees, owners of the milling businesses and the workers of the milling enterprises in Ilala, Kinondoniand Temeke districts in Dar es salaam region. To complement the results from questionnaires, the focusgroup discussions were conducted comprising of owners of the milling enterprises and their employees.From the research findings, it was observed that the impact of power rationing on the income of the millingenterprises was significant and some of them were closed. It was also revealed that cost of production ofthe enterprises went high causing the price of their product also to be high. The incomes of workers werereduced causing hardship in their families. The research concluded that the impacts of power rationing onthe performance of small and medium businesses were significant.

It was then recommended that owners and employees of the milling enterprises need assistance todevelop general enterprising tendencies to enable them succeed in the market.

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EFFECTS OF LIBERALIZATION OF COFFEE MARKETING TO SMALLHOLDERFARMERS IN MBOZI DISTRICT TANZANIA

Christwill Laimos Sichone


This study determines the effects of liberalization of coffee marketing to smallholder farmers in MboziDistrict, Mbeya Region, Tanzania. The primary data for the study was collected from randomly selectedfarmers, businessmen, SACCOS leaders and district council officials of nine (9) villages in Igamba, Iyulaand Vwawa wards. Secondary data were obtained from libraries, the Internet, newspapers and journals.


Findings from the study indicated that the structural adjustment policies and economic development changes,in this study, market liberalization of agricultural commodities, had exerted a considerable impact on theperformance of smallholder coffee farmers in Mbozi District, Mbeya Region, Tanzania. These include highinput prices and low coffee prices, which have been caused by removal of subsidies and increased numberof middlemen respectively, lack of credit inputs, etc. As a result, coffee farmers in Mbozi District havedecided to switch from growing coffee as a cash crop to other alternative cash and food crops. This hasfurther caused a decrease in farms acreage under coffee cultivation and farmers revenues. Additionally,people had been discouraged to join the coffee farming sector as now they perceived it as laborious andunderpaying sector compared to other economic activities.

In view of the above, the government and policy makers should devise strategies that would enablesmallholder farmers to compete in the free market. For example, extension services should be strengthenedand subsidies be fully availed to farmers especially on costly pesticides. Also I suggest that similar studies,covering other aspects not covered in this study, such as the impact of financial institutions and theeffectiveness of strategies used by coffee producers in Tanzania, be carried out.

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PUBLIC EMPLOYEES’ JOB SATISFACTION

The Case of Employees under the Ministry of Water

Emmanuel John Munda


This study investigated the job satisfaction of employees under the Ministry of Water in relation to qualityof services delivered. The study had two specific objectives. First, it investigated factors that lead to jobsatisfaction or dissatisfaction. Second, the study sought to find out the extent to which employees’ level ofsatisfaction influenced quality of services delivered. The study involved a total of 150 respondents at theheadquarters of the Ministry of Water. Data were collected by the use of questionnaires, selected itemsfrom Client Service Charter of the Ministry of Water and documentary reviews.

The findings of this study indicated that the majority of employees at the headquarters of the Ministry ofWater were not satisfied with their jobs. The factors for job dissatisfaction included among others littlesalary, poor motivation, little recognition, poor interpersonal relationship, little involvement in decisionmaking and poor working conditions. Also, the findings revealed that the services delivered under theMinistry of Water were generally poor on the basis that most of them were delayed. Further, the studyfound out that there was a positive relationship between poor service delivery and little job satisfactionamong the employees

The study gave recommendations to the policy makers of the Ministry of Water and to the administratorsof at the headquarters of the Ministry on issues that could be addressed in order to improve employees,job satisfaction as a prerequisite for improved quality of services delivery.

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661UDBS

CUSTOMER RELATIONSHIP MARKETING AND ITS INFLUENCE ON CUSTOMERRETENTION

A Case of Commercial Banking Industry in Tanzania

Chacha Magasi Malengo


The purpose of this research was to investigate the extent to which customer relationship marketing influencescustomer retention with commercial banks in Tanzania. It assessed how the antecedents of relationshipmarketing notably customers’ trust, commitment, satisfaction and relationship influence customers’ retentioneither directly or indirectly with their commercial banks. The research aimed at contributing to theoreticalknowledge and at the same time guide marketing practitioners with the strategies, tactics and programs touse in order to retain their customers.

The research methodology consisted of questionnaire survey to actual customers of 22 commercialbanks in Tanzania. The Chi-square method and multiple regression models were used in the analysis ofdata. The former was used to judge the variation of observed variables in explaining the latent variablewhile the latter giving the conclusion for the stated hypotheses.

The results suggest that there is a positive relationship between customers’ trust and satisfaction on theircommitment to commercial banks in Tanzania. Also, there is a positive relationship between customers’commitment and their relationship with commercial banks in Tanzania. However, there is no positiverelationship between customers’ satisfaction and their retention. Lastly, there is a positive relationshipbetween customers’ relationship and their retention with commercial banks in Tanzania.

This research based on external customers i.e. customers who are not employees in those banks. Therole of other researchers and other business firms is to further investigate on the influence of internalcustomers (employees) and potential customers on their retention with commercial banks in Tanzania.

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CONTRIBUTION OF MICROFINANCE INTERVENTION TO HUMANDEVELOPMENT - IMPACT ANALYSIS OF MICROFINANCE INSTITUTIONS (MFIs)

The Case of PRIDE Tanzania

Shimimana N. Ntuyabaliwe


The main objective of this study was to explore and underscore the impact of microfinance on humandevelopment. The study assesses firstly the effectiveness of microfinance as a tool for poverty alleviation;secondly, whether long term access to microfinance services impacts on some of the human development


indicators; and lastly, it attempts to provide stakeholders with insights of the broader benefits of microfinance.The study used the case of PRIDE TZ, the choice of which was mainly attributable to its long service, wideoutreach, and client diversity in terms of economic distribution. The study provides an overview of thevarious tools and methodology for microfinance impact assessment and adopted the AIMS-SEEP ImpactAnalysis framework to guide the research design. Structured questionnaires were adopted for data collection.Variables and hypotheses were identified and developed to test statistical relationships. The findings suggestthat microfinance is an effective tool for poverty alleviation. It also suggests that long-term participation iscritical to the significance of the impact. The study concludes by reaffirming the social-economic impact ofmicrofinance and its linkage to the overall human development indices. This was also gauged against theMillennium Development Goals, which have been acknowledged in this study as indicators for humandevelopment. The study closes with a set of recommendations encouraging microfinance institutions tofocus on widening outreach and improve retention by offering market responsive products, both of whichshall pave way to wider impact.

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THE EFFECTIVENESS AND THE PERCEIVED VALUE OF INTERNAL AUDIT INTANZANIA COMMERCIAL BANKS

Uphoo Swai


Internal Audit has been part of good corporate governance. To achieve this potential, however, an internalaudit must show superior levels of performance and effectiveness. The purpose of this study was to determinethe effectiveness and perception of internal audit function in Tanzania commercial banks. The study alsoexamined major challenges facing banks’ Internal Auditors when undertaking audits and captured viewsfrom auditees on factors affecting the effectiveness of internal audit function. how internal audit function isperceived and how to make Internal function more effective and positively perceived.The study was conducted by way of a survey. Out 145 questionnaires distributed, one hundred and nine109 questionnaires were received back. The collected data was statistically analyzed using SPSS tool.Results indicate that auditees in commercial banks views Internal Audit function as a value adding functionthat the banks can not do without. However, respondents had some reservations on a number of issuesthat hinders effectiveness of Internal Audit function. For example shortages of internal audit staff, limitedinternal auditors’ exposure and using manual system to audit computerized environment. The researchermakes some recommendations that take into account the study findings including suggestions fromrespondents for improving effectiveness of the Internal Audit in the banks.

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663UDBS

ASSESSING CUSTOMER SATISFACTION IN PRE-AND POST- PRIVATISATION ERAs

A Case of Dar-es-Salaam Handling Company Limited (DAHACO)

Joyce Emmanuel


This research aimed at assessing customer satisfaction in pre- and post- privatisation eras, a case of Dar esSalaam Handling Company Ltd (DAHACO).This study analysed how far privatisation has contributed to an improvement of customer satisfaction inTanzania. Data were collected from 74 respondents, out of whom 18 were Airlines Managers, 56DAHACO employees by using questionnaires.

The study revealed that there was variation among responses of airline managers in maintaining customerretention. So the study recommends the company to make clear and frequently communication with airlinemanagers on things to be done so as to improve customer satisfaction. Finally, it can be stated that servicequality dimensions defined under SERVQUAL are not given the same importance by customers who getservices from different service industries. It is thus concluded that in airline industry, the service qualitydimensions are measured by the following: waiting time at check-in hall, priority baggage labelling, baggageirregularities, gate attendance, cabin cleaning, readiness of equipment, baggage delivery, priority baggagedelivery, station delays and transfer baggage loading.

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FACTORS THAT INFLUENCE THE PURCHASE OF BRANDED GOODS

The Case of Purchase of Mobile Phones in the Tanzanian Market

Anne Masenga


This study attempted to investigate the factors that influence the purchase of mobile phones in the Tanzanianmarket. This study surveyed 277 respondents. Data collection was done through the administration oftwo sets of questionnaires involving first time buyers and repeat buyers of mobile phones.

The major findings of the study revealed that information exerts significant influence on consumers’perceived risk about a new brand for first time buyers. The effect of experience of using the brand issignificant on influencing consumers’ perceived risk about a new brand for repeat buyers. The results showthat the effect of information on brand identification is significant for first time buyers .Experience of usingformer brand is significant on influencing brand identification for repeat buyers. The degree of Loyalty tocompeting brands exerts a less significant effect on consumer’s intention to purchase a new brand for firsttime buyers while the degree of Loyalty to competing brands exerts significant effect on consumer’s intention


to purchase a new brand for repeat buyers. Degree of perceived risk about the product has significantnegative influence on consumer’s intention to purchase a new brand for first time buyers. For the case ofrepeat buyers the degree of perceived risk about the product has no significant influence on consumers’intention to purchase a new brand. Brand identification has a less significant effect on consumers purchaseintentions for first time buyers, for the case of repeat buyers brand identification has significant effect onpurchase intentions.

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THE FACTORS INFLUENCING CUSTOMER SATISFACTION IN REFERRAL ANDOTHER BIG HOSPITALS IN TANZANIA

Flora Mwakyusa


The study investigated the factors influencing customer satisfaction in referral and other big hospitals inTanzania. Three specific objectives guided this study, namely, examining the relationship between thecompetence of the service providers, and the level of patient satisfaction, investigating the quality of theHospital facilities, and the level of patient satisfaction and to assess whether there is relationship betweenhospital costs and the level of customer satisfaction.

The qualitative and quantitative data were used to generate reliable data for the study. Primary datawere collected from four regions, using structured and unstructured questionnaires and observations, includingconsiderations of the secondary data. The research data were analyzed by using Regression analysis inSPSS package. Different variables such as cost, Hospital facilities and competence of the provider wereanalyzed.

The overall findings revealed that all variables have significant influence in customer satisfaction. Thestudy established that competence of the service provider and availability of hospital facilities are effectivefactors that influence customer satisfaction.

The study concluded that cost, competence of the service providers and availability of hospital facilitieshave a significant influence on customer satisfaction and on the decision to make use of the service.Therefore health care providers need to understand what customers were expecting from their services byconducting research, complaint analysis, customer panels and the like. The health care providers shouldstrive to solve customers’ complaint, problems timely and accordingly in order to satisfy their customers.Also the hospitals should consider customer satisfaction as vital issue in a competitive business environmentto meet their needs and attracting patients to use their services.

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665UDBS

ASSESSMENT OF THE EFFICACY OF THE NATIONAL PAYMENT REGULATORYFRAMEWORK FOR THE PROVISION OF AN EFFICIENT AND SECURE PAYMENT

SYSTEMS IN TANZANIA

Casmir Faustine Nkuba


This study presents an assessment of the efficacy of the National Payment Regulatory Framework for theprovision of efficient and secure Payment Systems in Tanzania. This study was prompted by the greattransformation and developments which have occurred in the Tanzanian Payment System during the pastone decade. Unlike the payment systems which existed during the period up to mid 1990s, the paymentsystems of Tanzania today are greatly characterized by the use of modern technology.

In this study, the researcher conducted literature review and field study with a view to elicit a scholarlydiscussion on the efficacy of the Tanzanian Payment Systems Regulatory Framework which is crucial forcreation of an efficient and secure payment system.

This study’s findings are that the Tanzanian Payment system has undergone tremendous changes andimprovements in the past one and half decade, being a result of the economic liberalization policy adoptedby the country in the early 1990s. The modernization of the financial systems has enabled the financialsector to respond positively and at a reasonable pace to the rapidly changing demands in the bankingsector. The study, however, has revealed a number of weaknesses in the payment system regulatoryframework which made the Researcher come up with a conclusion that the payment system of Tanzania isnot adequately regulated to guarantee an efficient and secure National Payment System. This work carriesrecommendations for correction of the weaknesses to ensure existence of an efficient and secure PaymentSystem which is a necessary factor for the existence of an effective financial system.

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EFFECTIVENESS OF INTERNAL CONTROL IN SMALL AND MEDIUM ENTEPRISES(SME) IN TANZANIA

Anad Grayson


SMEs constitute a huge portion of the enterprise population in Tanzania. SMEs contribute to employment,GDP, and exports. Unfortunately, SMEs contribution has been constrained by a number of problems;including problem on maintaining proper internal controls over record keeping and other operations.

The main objective of this study was to investigate whether or not small and medium enterprises (SMEs)maintain effective internal control in their day-to-day operations.


The study was conducted by a way of survey, fifty SMES (employing between 1-49) based in Dar esSalaam were randomly selected and 60 respondents were interviewed by use of questionnaires. Therespondents were divided into two groups i.e. the owners/ managers and employees working in SMEs.Theanalysis was performed using statistical package for social sciences (SPSS) where by comparisons andtabulations were obtained to help explain the results.

The result revealed that there is weak accounting control in SMEs due to lack of segregation of duty,inadequate documentation, unclear organization structure, few numbers of employees and possibility formanagement override. Also it was found that the use of professional accountant in SMEs is very limiteddue to high cost s of recruiting and maintaining them.

The result point to he need of professional body responsible for formulating and supervising accountingstandards in the country to formulate standards, which are tailored to suit SMES. The result also point tothe need of NBAA to promote accounting professional by conducting seminars, workshops to their memberson the need of maintaining effective internal controls. Also the result point to the need for government toformulate policies, which will facilitate growth of SMEs economically.

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THE IMPACT OF DONOR FUNDS INFLOWS ON MONEY SUPPLY IN TANZANIA

George Bantula Salvatory Kaindoah

Master of Business Administration, November, 2007

The objective of this study was to investigate the impact of donor funds inflows on money supply andpolicy response. More specifically, the study intended to examine the effect of donor funds inflows onmoney supply and inflation, and determining the degree of significance of the donor funds inflows on thereserve money. The effect of donor funds inflows on real gross product was also investigated. Correlationcoefficients and regression results were used during the discussion in this study. While the relationshipbetween donor funds inflows and money supply was strongly proved to be positive and significant at onepercent level, the relationship between donor funds inflows and inflation was proved to be negative andsignificant at five percent level. Therefore, the hypothesis that there is positive relationship between donorfunds inflows and inflation was strongly rejected. Hence an increase in donor funds inflows in Tanzania didnot cause an increase in the rate of inflation.

The relationship between RGDP and donor funds inflows was strongly proved to be positive andsignificant at one percent level. Therefore the hypothesis that donor funds inflows have a positive effect onTanzania economy was not rejected at all. The study suggests that if the economy is faced with large donorfunds inflows and the cost of sterilization seems to outweigh the bank’s income, and then policy responsehas to be extended to deploy some of the options below depending on their enforcement costs.

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667UDBS

THE IMPACT OF MANAGEMENT PRACTICES ON SERVICE QUALITY ASPERCEIVED BY CUSTOMERS

The Case of Tanzania Telecommunication Company Limited (TTCL)

Hidaya Hamis


This study examines some aspects of management practices that can impact service quality perceptions.The major research question was whether the results could help to explain the general level of servicequality as perceived by customers in the context of Tanzania Telecommunications Company Limited (TTCL).

A study of fifty customers and fifty employees in five TTCL regional offices was used to analyze theeffects on service quality of some management practices. The selected management practices include:managers’ risk aversion; centralization; and market based reward system.

The analysis was made using simple and multiple linear regression analysis and two basic findingsemerged. First, interdepartmental conflict and interdepartmental connectedness appear to influence thelevel of service quality.

Second, the results appear to suggest that interdepartmental conflict and interdepartmental connectednesscan be improved by a host of actions, including a management style that exhibits less risk aversion, greaterempowerment of employees and the development of a market-based reward structure to create commonincentives.

Generally, in order to improve service quality, organizations must work to reduce conflict and increaseconnectedness among departmental groupings. Specific managerial implications and direction for furtherresearch have been discussed.

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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONPERFORMANCE

The Case of Vodacom Limited, Tanzania Breweries Limited and Barrick Gold MiningCompany

Mgema Masunga


In Tanzania, in the post 1990 period after the introduction of the market economy, private sectors wereallowed to engage fully in business activities. That resulted into increased competition among different firmsproducing and selling products with similar use such a pattern forced firms to design different marketingstrategies aimed at penetrating different market segments, and increase their production, sales as well asprofits.


This study investigated the impact of firms’ corporate social responsibilities on organization performance inTanzania in the post 1990 period. A sample of three firms, namely, Vodacom Tanzania Limited, TanzaniaBreweries Limited and Barrick Gold Mining Company Ltd were used as representatives. Overall findingsrevealed that increasing firms’ corporate social responsibilities and others have helped to advertise as wellas market products. Hence, have increased sales and profits amidst stiff competitions, though their socialresponsibilities have been limited mainly to urban areas.

It is recommended that measures be undertaken by all stakeholders in order to enable more people inremote rural areas also to benefit from their activities. The Government should increase tax incentives onproducts offered by these companies as part of their packages of corporate social responsibilities. Measuresshould be undertaken to increase employment and disposable incomes for households in order to increasehouseholds’ purchasing power. Lastly, there should be formation of one independent NGO body, whichwill supervise and coordinate the activities for organizations engaged in corporate social responsibilities.

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DEVELOPMENT AND CHALLENGES OF DERIVATIVE MARKETS IN TANZANIA.

The Case of Derivatives in Commercial Banks

Mbajo Pius Mchomvu


The aim of this study was to get insight of development and challenges of derivatives market in Tanzania.The study used primary data whereby sixteen commercial banks were interviewed using Questionnaires.

The study revealed that it is right time to exercise derivatives in Tanzania and common derivatives usedin Tanzania are; foreign exchange swap, forwards, options, interest swaps, futures and forward rateagreement. The main participants of derivatives are commercial banks and big corporate customers. Thestudy also revealed that the regulatory body hasn’t yet put enough effort to promote the derivative marketsin Tanzania.

It is recommended that the Tanzania Financial market will not develop fully if banks and big corporatecompanies are not taking active part in the modern financial products like these. If banks utilize derivativesfully, then, it would help even to stabilize our Tanzanian Shillings against major currencies. It is alsorecommended that proper skills are required and the Central Bank should play the active role to engineerthe whole exercise of derivative market development in Tanzania

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669UDBS

MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) ACCESS TOCOMMERCIAL BANKS FINANCE IN TANZANIA

The Case of Dar Es Salaam based MSMEs and Commercial banks

EFFECTIVENESS OF TAX INCENTIVES IN PROMOTING INVESTMENTS INTANZANIA

Alfred Pius Tekere Ngeja Mregi


Governments provide tax incentives to attract investment and promote economic activities for economicgrowth. The objective of this study was to evaluate effectiveness of tax incentives in promotion of investmentin Tanzania.

The researcher adopted descriptive methodology in the study. 95 out of 452 Dar es Salaam investors,26 consultants from consultancy firms and 24 government officers working with the Ministry of Financeand Economy, TRA, NDC, TIC and the National Bureau of Statistics were interviewed by usingquestionnaires.

In the course of evaluating the effectiveness of tax incentives other relevant factors attributable toinvestments were also considered to enable the researcher to make precise conclusions on the study. Itwas established that non-tax factors such as opening up of the economy, proximity to market, politicalstability, etc are the primary determinants of investment growth and FDI inflows.

To improve the investment climate and FDI inflow in the country the research recommends continuousimprovement on physical infrastructure, human capabilities, access to vital utilities and stimulation of linkagesbetween different sectors of the economy just to mention a few. However, although tax incentives are noteffective, they cannot be ignored completely. Thus, improvements in the tax system, tax administration andrevenue management are required.

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PROCUREMENT CONTRACT MANAGEMENT AND VALUE FOR MONEY

The Case of Tanzania Food and Drugs Authority

Anael Kaale


The research study explored the way effective procurement contract management can ensure that valuefor money is achieved by Tanzania Food and Drugs Authority. The study aimed at identifying factors thatled to poor management of procurement contracts at TFDA. It identified the way procurement contracts


were solicited and managed to establish sources of procurement risks that hindered value for money frombeing achieved.

Quantitative research design was used to conduct the study. Questionnaires, interviews, observationand documentary reviews were the tools used to generate data. The findings showed that procurementcontracts were not properly managed as evidenced by problems in quality of deliveries, presence of thelong lead-times and service interruption due to stock-out or late deliveries. It was concluded thatprocurement contract management was influenced by lack of capacity among procurement staff to handleprocurement activities, which impairs achievement of value for money. The results have implications formanagement policy. The study recommends deployment of sufficient personnel in Procurement and Contractmanagement with qualification and experience to handle procurement contracts to ensure achievement ofvalue for money. Training, seminars and refresher courses to equip the existing staff with new skills andknowledge in managing procurement contracts can be initiated now.

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ASSESSMENT OF FACTORS AFFECTING GROWTH OF PHARMACEUTICALPRODUCTION IN TANZANIA

Sadi I. Kajuna

Master of Business Administration (Marketing), November, 2008

The main objective of this study was to assess factors affecting growth of pharmaceutical production inTanzania. The study involved five out of eight available pharmaceutical industries in Tanzania that are basedin Dar es Salaam and Arusha.

To achieve the stated objectives, four hypotheses were developed so as to study the situation. Thehypotheses rested on four major factors, laws and regulations, availability of local skilled and experiencedlabour, competitiveness of local pharmaceutical products and availability of technology. Data were collectedfrom selected pharmaceutical industries by using questionnaires and informant interview to selected officials.The five point likert rating scale was used to develop questions that were used to test the hypotheses. Inthe data analysis, both qualitative and quantitative methods were applied. The decision for accepting orrejecting hypotheses was based on an average score of 50%.

The study findings indicate that, the growth of local pharmaceutical industries is affected by law andregulations, availability of local trained and experienced labour, competitiveness in terms of quality andprice, and availability of suitable technology. The research findings are in conformity with other studyfindings indicated in the literature reviewed.

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671UDBS

CAUSES OF FAILURE OF SMALL BUSINESS IN TANZANIA

The Case of Business in Kinondoni Municipality Council

Revina Raphael


This study examines the factors that lead to the failure of small businesses in the KinondoniMunicipality. The high failure rate can be partially attributed to the lack of support that the small,medium and micro-enterprises (SMEs) receive from support institutions as well as to their owninternal weaknesses. Strategies are recommended that will help small businesses be more successful.

The study was exploratory, descriptive and qualitative in nature. Semi- structured interviews withquestionnaire guidance were used to gather data.

Results indicated that the most common causes of business failure were lack of knowledge regardinglegal matters, lack of funding and a general lack of business acumen, lack of financial support from financialinstitutions, lack of technology, poor location and infrastructure, bureaucratic framework in businessregistration and licensing.

The study recommends that the government should improve the effectiveness of its support mechanismsand that record keeping and cash flow management training is critical for SMEs. These recommendations,if applied properly, will ensure small businesses’ success in Kinondoni Municipal Council and the rest ofTanzania

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THE ROLE OF PACKAGING IN THE CONSUMER BUYING BEHAVIOUR

The Case of Supermarkets in Tanzania

Christina Felician Tungaraza

Master of Business Administration, November, 2008

The objective of this study was to identify role played by food packaging in customer buying decision andhow package color, package size, package shape and further how the usage of packages influencescustomers buying decisions.

Data were collected using semi-structured questionnaire from customers who are day to day buyers offood stuff from two supermarkets at Shoppers Plaza and Game. Data was analyzed using a SoftwarePackage, (Statistical Packages for Social Scientists)–SPSS. The Chi-square test was used in testing thehypotheses.

Three packaging elements that are color, size and shape were tested. The study scored whether packagecolor package, size package and shape of package had a positive influence towards the customer’s buying


decision. The finding revealed that only colour influences consumer buying decisions.Brand name, country of origin as well as price of food product are other factors which were used to

tested and depict whether they contribute in influencing customers buying decision. In addition,environmental friendliness of package is any important aspect was used in testing buying decision. Thisstudy eventually ended with personal recommendations on gray areas for further research in the future.

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THE INFLUENCE OF INFORMATION TECHNOLOGY OPERATING ENVIROMENTON INTERNAL AUDIT FUNCTIONS IN TANZANIA COMMENCIAL BANKS

Crispin Paul Kweka


This study analyzes fish production and fisheries export trade in Tanzania Mainland for the 1984-2007period. Specifically, it aims at determining how fish production and export performance are affected bydifferent economic variables such as fish export quantity (export market), world fish price, number offishers, number of fishing vessels, and rate of inflation, exchange rate, per capital fish consumption (domesticmarket), amount of fish catch, climate and royalty. STATA 10 Special Edition was used to carry out theeconometric analysis.

The Fisheries Division is the competent authority responsible for rational utilization of the fisheriesresources and has been managing the fishery resources in the history of the Independent Tanzania. Due toinadequate research work coupled with outdated information on the fishery stocks and fish trade, exploitationof fishery resources in the country has mainly been managed by using precautionary approaches, a practiceused in many developing countries.

Findings from this study show that while the export and domestic markets; and the rate of inflation havesignificant impact on fish production; fish production, world fish price, the domestic market, rate of inflationand the amount of fish caught indicated significant impact on fishery export.

Based on these findings and also considering the economic importance of the sector, the government ofTanzania may take deliberate efforts that will enhance increased production and export earnings but throughsustainable utilization of the resource.

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673UDBS

WAGE DIFFERENTIAL BASED ON GENDER: The Case of Urafiki Textile Industry

Tumpale Sakijege Mwankenja

Master of Business Administration (Human Resource Management), October 2008

A number of changes have taken place in the financial sector in Tanzanian during the past twenty years.Among the factors in those changes is the information technology, which had an impact in financial sectordevelopments. The purpose of this study was to determine the Influence of Information technology operatingenvironment on internal audit functions.

The study was conducted by way of a survey. Statistical analysis was via SPSS tool.The study found that there is influence of information technology operation environment on internal

audit functions in Tanzania Commercial Banks. The Information Technology has had a considerable impacton internal auditing, changing the environment in which internal auditors work hence forced them to use itin compiling and presenting the results of their works. It was also found that, the majority of respondentsindicated satisfactory performance of their internal auditors. Others observed lack of adequate trainingsupport to internal auditors to enable them cope with changing Information Communication Technology.

The researcher ends by making a number of recommendations that (i) Internal Auditors should beprovided with adequate training support to cope up with changes in technology so as to enhance theirperformance due changes in operating environment in work place. (ii) The internal audit department shouldbe sufficiently staffed to match with the organization growth.(iii) Auditing function should be carried by competent auditors with sufficient knowledge of the area theyreview so as to provide desired results to the management, shareholder and community at large.

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EFFECTS OF TRAINING AND DEVELOPMENT PROGRAMMES ON EMPLOYEESPERFORMANCE

The Case of Action Aid International Tanzania

Axel Ellison Malekia

Master of Business Administration (Human Resource Management), October 2008

This study attempts to find out the effects of employee training and development on the employeesperformance at Action Aid International Tanzania. It assessed the relationship between the methodologiesused for training the employees and their impact on the performance of the employees in the organization.

Theoretical framework of this study was built by perusing various literatures on human resources theoriesespecially training. The study was qualitative in nature applying phenomenographical approach. It wasconducted in Kindondoni Municipal in Dar es Salaam, a case study of Action Aid International Tanzania.

Thirty two (32) respondents were involved in the study including managers, facilitators, trainees andother employees. Four (4) methods of data collection were used and these were documentary review,interview, observation and questionnaire. The data were analysed by firstly presenting raw data, categorizingthem into groups, reassessing, interpreting, discussing them critically and eventually organizing them for


report writing. Generally it was concluded that the strategies (approaches, methods and techniques) usedin training and development programme were inadequate due to facilitator’s lack of knowledge in trainingand lack of funds, which led to lack of instructional materials and proper venue for trainings. This studyrecommends for the facilitator to provide oral, written and practical examinations at the end of eachtraining programme for evaluation of what has been achieved or failed.

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DEMAND DEPOSITS MOBILISATION IN SAVINGS AND CREDIT COOPERATIVESOCIETIES (SACCOS) IN KILIMANJARO

The Case of Moshi District

Nathaniel Naiman Towo


The objective of the study was to examine the extent to which member based microfinance institutionsnamely SACCOS mobilize demand deposits from their members in Moshi district, Kilimanjaro region. Asample of 60 respondents from 3 SACCOS was used and it constituted employees, members and boardmembers. Data were collected through questionnaires and documentary review methods. Descriptivestatistics were used in the data analysis.

The study revealed that SACCOS provide demand deposits services to their members who use it fordifferent purposes, however the amount deposited is relatively low. In both rural and urban areas, SACCOSface competition from banks which provide more convenient services. It was also found that training andparticipation in social events are the only techniques used to mobilize demand deposits. Furthermore,SACCOS members expressed mistrust to their institution and staff. SACCOS staffs were found to havelow work morale and lack motivation to mobilize demand deposits.

Successful mobilization of demand deposits in SACCOS can be attained by involving members,employees and management and utilizing social and resource mobilization techniques that can change theirattitude. It is recommended that SACCOS should employ competent staff and provide them with attractiveincentives; allocate education fund to provide training; use of current technology in service provision; useparticipatory mobilization techniques and cooperative department should be strengthened so that demanddeposit can be mobilized.

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EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS OVER CASH IN FINANCIALINSTITUTIONS

The Case of Bank of Tanzania

Christopher Yustini Nyondo


The general objective of this study centered in assessing the effectiveness of internal cash control systems

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which are being used by financial institutions in Tanzania using the case of the central bank of Tanzania(BOT). The population of this study was the employees of the Bank of Tanzania (BOT) covering senioremployees and operational (supporting) employees. The simple random sampling was employed to selectrespondents from the supporting staff after stratifying the respective supporting staff into their respectivedepartments. On the other hand purposive sampling was applied to the senior management officials. Thesurvey instrument comprised six sections: employee fraud incidence, internal control procedural quality,organizational justice perceptions, ethical environment, and general information on various governancefeatures such as internal audit activities, risk management activities and participants’ perception of theinternal cash control systems in the bank.

According to the study findings, the first model revealed that internal control procedural quality has amoderating effect on the relationship between perceptions of organizational justice and employee fraud. Inspecific, the negative relationship between perceptions of organizational justice and employee fraud is seento grow stronger as internal control procedural quality improves. The second model found that internalcontrol procedural quality was significantly and positively related to three organizational factors: theorganization’s ethical environment, internal audit activity level and the extent of risk management training.

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AN EMPIRICAL INVESTIGATION OF CUSTOMER SATISFACTION WITH BANKSERVICE ENCOUNTERS IN THE CONTEXT OF RETAIL BANKING IN TANZANIA.

Julieth Selemani Nyomolelo


The aim of this study was to investigate on the effects of selected factors on customer satisfaction ofservice encounters in the context of retail banking industry In Tanzania. It has been found out that thetangible elements in service encounters in banks such as human elements, ATMs, banking halls and serviceproviders are of significant influence to customer satisfaction. It has also been found out that unpromptedemployee actions such as attending or helping customers with problems without their enticement do influencecustomer satisfaction during service encounters. Furthermore current services provided through retail bankingare reliable and satisfactory.

The study also found out that customers tend to choose and subscribe to use a particular bank’sservices under the influence of the reliability of the services, technology used in service delivery, bankcharges and minimum balanced allowed in an account in that order.More research is needed to leverage the findings and provide better and more in-depth implications forboth theory and practice. To specify, the research presented measured its subjects’ perceptions of differentfactors affecting satisfaction during service encounters. In the future with the use of a longitudinal study itmight be possible to get a broader and deeper picture of the phenomenon

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FACTORS INFLUENCING CUSTOMERS TO ADOPT PREPAYMENT SYSTEMS INTANZANIA

Case Study of Electricity Prepayment System in TANESCO

Aidan Aloyce Mwingizi

Master of Business Administration

Utilities world wide are engaged in switching to prepayment systems, primarily to protect their businessesfrom credit defaulters. However in many countries consumers are protected by law against unilateraldecisions by utilities to force them to use prepayment system, unless proven that such customers arehabitual defaulters on payments.

The objective of the study was to identify main factors that help to influence customers to adopt aprepayment system in Tanzania.

The research methodology consisted of questionnaire survey to 170 Tanesco LUKU customers in Dares Salaam. The multi regression method was used to determine a causal model and to predict the comparativemagnitude of factors that will influence acceptance of the system.The results of the study suggest that Ease of Use, and Relative Advantage are the two (2) significant factorsthat will determine acceptance of online prepayment system. Ease of Use was found to be the slightly thestronger factor of the two. Compatibility was found to have a small indirect effect via the two significantfactors of Ease of Use and Relative Advantage in determining acceptance. Image was found to have nosignificance effect in influencing acceptance.

The implications of the study results are two fold. First the advantages of any online prepayment systemmust be communicated exhaustively to customers prior to it’s launching. Second the system must be simpleto use. Simplicity of the system.

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FACTORS INFLUENCING CUSTOMERS’ ACCEPTABILITY OF MOBILE SERVICES INTANZANIA

The Case of TTCL

Humphrey Joseph Ngowi

The study investigated factors that influence customers’ acceptability of mobile services in Tanzania, thecase of Tanzania Telecommunications Company Limited (TTCL). Specifically, the study sought to examinethe extent to which customers prefer TTCL mobile services; to examine the extent to which mobile servicedelivery influences acceptability of mobile services and to assess the extent to which wide coverage influencesmobile service acceptability.

Findings indicate that service acceptability is influenced by customer care, mobile service delivery andwide coverage of mobile services. Thus, mobile service companies should work on these three dimensionsof service acceptability so as to increase the acceptability of their services. These findings imply that TTCL

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and the management of mobile companies should properly assess the mobile service acceptability dimensionsand impose them in order to improve mobile service acceptability and help mobile service companies toprovide the high quality of service required by customers. This will help mobile service companies tocompete and expand their networks internally and beyond the borders, i.e., internationally.

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FACTORS AFFECTING EMPLOYEE JOB SATISFACTION IN THE MILITARYSERVICES IN TANZANIA

The Case of Public Employees under the National Service

Omary Ramadhani Sambuguni


This study had the general objective of investigating the factors affecting job satisfaction of public servantsemployees in relation to National Service performance. Study put forward two specific objectives. Firstly,it investigated factors that affecting job satisfaction. Secondly it tried to outline the extent to which employees’level of satisfaction influence the organizational performance.The study involved a total of 40 respondents at the National Service Headquarters. Data were collectedusing questionnaires, documentary reviews and interviews. The survey data employed the application ofSPSS and Chi-square test in its analysis.

The findings of this study indicated that the majority of public servant employees under the NationalService are not satisfied with their jobs and this leads to employee turnover. The findings reveal the reasonsto job dissatisfaction among other things being little salary, poor working conditions, poor motivation, littleinvolvement in decision making and insufficient recognition. Finally the study found out that there was apositive relationship between job satisfaction and organization performance.

It is suggested from these research findings therefore that job dissatisfaction not only increases inefficienciesand human capital deficits in organizations, but also involves costs in terms of lost relationships, particularlywhere individuals hold critical bridging positions. It therefore raises a need to establish HR department inmilitary institutions.

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IMPACT OF TOURISTS HOTELS ON LOCAL BUSINESS FORMATION

The Case Study of East Coast Hotels in Zanzibar

Said Khalid Said

Master of Business Administration , November 2007

Tourist hotels are an important investment sector within international tourism. Its importance will continueto increase as tourism has now become the largest economic activity in the world. Apart from contributing3-5% of the world’s GDP and providing direct employment for about 200 million people in the world, this


sector is also a catalyst for business formation as hotels need everyday supplies to cater for the touristdemands.

The objective of this study was to determine the impact of tourist hotels on local business formation onthe manner on the extent to which tourist hotels enhanced the business opportunities of the citizens ofTanzania and especially those living around tourist hotels. It went further to determine hindrances to localbusiness formation, possible measures to be taken, and explored business opportunities available so thatpolicy makers, NGOs and the people themselves would find means to exploit them with the overall aim ofimproving their income and social development. The study, using a case study format, concentrated alongthe Zanzibar east coast villages of Michamvi, Bwejuu, Paje, Jambiani and the tourist hotels in that area.Questionnaires were used to gather data related to the study objectives from the villagers, hoteliers and theinstitution dealing with tourism and trade. The statistical software CSPro 3.3 was used as data entrysoftware and SPSS was used to analyze the data.

The study revealed that while it is Tanzania citizens who mainly supply east coast hotels with their dailyrequirements, only 6.5% of suppliers come from those living within the villages where the hotels are located.Despite of that small percentage of direct supply to Hotels which makes up 31% of villagers businesses;the study revealed that 62% of the villagers businesses done within the villages’ vicinity to cater for thedemands of the villagers, the people who works on the hotels and indirectly to hotels and the tourists. Thatcould be connected with the figure given by Office of Chief Government Statistics - Zanzibar that numberof businesses in South Region has increased by 400% as before 1990 to 2004.The study also revealed that only 4% of the products supplied to tourist hotels are from villages around thehotels and that only 41% of the products come from Zanzibar. The study showed various hindrances forboth tourist hotels and village business persons to conduct business with each other, but it is greatly encouragingthat most stakeholders nevertheless do see the potential for doing business together through a variety ofopportunities. This document concludes with recommendations aimed to help the villagers increase businesswith hoteliers for the betterment of themselves, hoteliers and the nation at large.

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ASSESSMENT OF CUSTOMERS’ SATISFACTION ON RELIABILITY AND EFFICIENCYPROVISION OF POWER BY TANESCO

The Case of TANESCO Dar es Salaam Region

Dorothy Kerenge


This study intended to make an assessment of customers’ satisfaction on reliability and efficiency provisionof power by TANESCO in Dar es Salaam region. The study is being conducted at the time when customers’complaints are being leveled against the quality of power supply and service rendered by the local utilityfirm, TANESCO. Specifically the study intended to evaluate the time taken from application to powerconnection for new customers, investigate whether time taken to respond to power outages and othercustomers’ problems and investigate the accuracy of electricity bills provided by TANESCO to hercustomers.

The findings of the study are in line with those complaintsas both customers and employees haveshown high level of pessimism with the company operations. While most of them do agree that the companyis inefficiently performing in many areas, notably; lack of quality and competitive service delivery with

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corruption being order of the day, power fluctuations resulted from high power demand compared tosupply and the time taken to restore power supply after a forced outage, and inaccurate in meter reading.Among of the suggested immediate and long term measures to rescue the company from its total collapseinclude using alternative power generation sources like natural gas and coal and hence lessen dependenceon hydropower, customer care courses to its frontline staff, providing enough working tools, improvementof billing system, introduction of LUKU system to all customers, and replacement of old facilities liketransformers, meters, poles, e.t.c.

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GENDER AND WOMEN EMPOWERMENT: THE CASE OF MANAGERIAL CADRESIN SELECTED ORGANIZATIONS IN DAR-ES-SALAAM, TANZANIA

Lulu Jacob Namfua

Master of Business Administration (Human Resources Management)

The objective of the study is to critically examine and analyse obstacles to gender empowerment withrespect to women in managerial positions in selected organizations and institutions in Dar-es-Salaam,Tanzania.Both qualitative and quantitative methods of data collection were used in a complementary way so as tofacilitate a comprehensive grasp and understanding of the issues under study.

The findings show that, despite their high levels of education attained and their zeal to fight for theirrights, women face two main obstacles towards gender equality; on one hand are the traditional customs,and on the other hand are the social-cultural pressures, economic and political factors emanating from thecapitalist system all of which constitute formidable factors towards women subordination in most areasincluding employment. The study recommends that, women empowerment at any level can be achieved ifboth women and men are given enough education, finance and infrastructure as a whole rather than womendoing it and in isolation from men.

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CONTRIBUTION OF ELECTRONIC TICKETING IN IMPROVING AVIATIONINDUSTRY IN TANZANIA

A Case Study of the Precision Airways- Tanzania

Mussa Ismail


The overall objective of this study was to analyze the use of E-ticketing technology in airline industry andits contribution in improving aviation industry in Tanzania. More specifically the study intended to: reviewthe electronic ticketing process within experience of precision airways; provide an overview of ElectronicTicketing and interline air E-ticket process; and its benefit to progressing air transport in Tanzania; and to


discuss future ticketing practices and provide an update on latest industry activity.The study employed observation method, interview and questionnaires, where sixty two (62) persons

from three districts Kinondoni, Ilala and Temeke in Dar es Salaam region were interviewed. The majorityof persons interviewed were workers and business persons performing their activities within Dar es Salaamregion. Farmers/peasants and students were also interviewed at the Julius Nyerere International Airportwhen waiting for their flights. Primary data through questionnaires were analyzed and the results werepresented using tables to supplement and support explanations.

The results from the analysis of both the primary and secondary data made the study to come up withthe conclusion that, e-ticketing transformation proves itself as a definite, positive step forward for bothconsumers and air travel industry. Also areas for further research were identified.From the study, it is recommended that aircraft activity generally has a greater effect on the demand andcapacity of the runway and apron system, while passenger activity has a greater impact on the terminal andland side facilities.

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DETERMINANTS OF INBOUND TOURISM IN TANZANIA

Philip Sebastian Chitaunga


This study is set out to investigate determinants of inbound tourism in Tanzania in a theoretical frameworkof the tourism demand model. The E - Views was employed for econometric analysis. The focus was tosee how different variables such as GDP of tourist sending countries, the budget allocated to promotetourism across Tanzania Territorial borders and the level of prices in a tourist sending country compared toprice level in Tanzania impact on the tourist arrivals to Tanzania. To test for stationarity of data, unit roottest was conducted while the long run relationship of variables was established by carrying out cointegrationtests. Preferred model was generated from the over parameterized model, based on statisticalconsiderations. The empirical results revealed that the main determinants of inbound tourist in Tanzaniainclude GDP for leading tourist sending countries, Domestic price levels (PL), Real Exchange Rate (REER),and the Dummy variable which represented economic reforms. The Findings confirm to the theoreticalpostulates and findings of previous studies that tourist movements are by and to a large extent driven by theeconomic levels.

To maintain and even increase the number of tourist arrivals in the country, responsible Ministry shouldmaintain the quality of tourism services and activities as well as increasing tourism marketing budget.Through reforms, the responsible institutions should emphasise on increased marketing campaign to countrieswith sound economic capabilities.

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PERFORMANCE OF TANZANIA’S MANUFACTURED EXPORTS IN EAST AFRICANREGION: OPPORTUNITIES, CHALLENGES AND FUTURE PROSPECTS

Deusdedit Rwehumbiza

Master in International Trade, November 2008

Until now, little empirical research exists on the relationship between the revived EAC and the factorsinfluencing performance of Tanzania’s manufactured exports in East African region. This study uses simpledescriptive statistics, which is later supplemented with export intensity and export competitiveness indicesto determine both, the intensity and competitiveness of Tanzania’s intra-EAC manufactured exportsrespectively. Manufactured export intensity is found to be above 100 whereas export competitiveness isfound to have increased but below unity since the establishment of the current EAC. Such results could beattributed to special trade preferences, real exchange rate, Non Tariff Barriers (NTBs), infrastructure,inflation and firm size. After identifying the policy implications, in order to rescue the situation, the authorrecommends concerted efforts to be taken within both, the country and the EAC as a whole. The conclusionspoint out that EAC is quite useful only that supply side and market access related constraints are still themain hurdles to Tanzania’s intra-EAC manufactured exports.

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SERVICES TO POOR HOUSEHOLDS

The case of Muwakapa and Wadoki in Mwanza region

Mary Onesmo


After independence in 1961, Tanzania declared to fight poverty, disease and ignorance in order to bringdevelopment to its people. But up to now the majority of Tanzanians are faced with poverty. Experienceshows that economic empowerment of poor people is needed. One way of economic empowerment topoor is the establishment of SACCOS, which are user-owned micro finance institutions that offer varietyof financial products including savings and credit services to their members to help them engage in productiveactivities.

The study was investigating factors influencing capacity of SACCOS in providing long-term financialservices to its members. The study was carried out in MUWAKAPA and WADOKI SACCOS in Mwanzaregion. It was a survey study where primary and secondary data were collected through interviews,observation, document analysis and questionnaires, then analyzed by using descriptive statistics where asresults were presented in Tables. The trend in issuance of loans to members reveal that, from 2005 to2008 MUWAKAPA managed to allocate micro credits to 47 Members, out of 519 while WADOKImanaged to allocate micro credits to 545 members from 2005 to 2008 out of 2174. This means that thecapacity of these SACCOS is still low.

Generally these SACCOS should encourage savings mobilization from members so as to build a financialbase for credit provision which can help them to increase the capacity.

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EFFECTIVENESS OF INTERNAL AUDIT IN PUBLIC HIGHER LEARNINGINSTITUTIONS IN TANZANIA

Mbosela, Mbosela John


The rapid increase of higher learning institutions in Tanzania has come along with a set of challenges to thehigher education sector. These challenges have become constraints to the development of public higherlearning institutions and has forced to put in place a better internal control system in order to get value formoney from the increasingly little funds they get. The purpose of this study was to examine the effectivenessof internal audit in public higher learning institutions in Tanzania.

In examining the effectiveness of the internal audit, triangulation method was employed; reason behindusing it is that it compliments each other and assists to clarify issues arising from one method. Thequestionnaires and interview were instituted. A total of 88 questionnaires were distributed of which 80(90.9%) questionnaires were filled and collected back. The data collected was analysed using SPSS andpresented through tables.

The study found out that internal audit in public higher learning institutions is effective. The above findingled the researcher to conclude that the internal control system whereby internal audit is one of the elementinstituted by the institutions is very effective in ensuring those little funds allocated to these institutions arewell utilised. However, a number of recommendations are put forth; Management of public higher learningInstitutions have to increase number of internal auditors, recruit internal auditors on permanent basis withright qualifications and skills, restructuring of internal audit units to increase independence, increase workingtools such as audit software and office space and allocate more financial resources to internal audit unit.The recommendations aimed at strengthening effectiveness of internal audit in public higher learning institutions.

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CREDIT GUARANTEE SCHEMES AND MSMEs IMPROVED ACCESS TO FINANCIALSERVICES.

A Case Study of CRDB BANK PLC

Dorah H. Ngaliga

Master of Business Administration, January 2008

There is limited knowledge on why there is limited success in the utilisation of Credit Guarantee Schemes(CGS) by Banks in Tanzania particularly those Schemes which have been established to support theMicro, Small and Medium Enterprises(MSMEs). The objective of this study, was to explore the factorsthat may have contributed to this slow pace by banks in utilising CGS.

A case study design was used and a qualitative approach was chosen whereby semi structured andindepth interviews were conducted . Judgemental sampling was adopted to select the interviewees andboth primary and secondary data was collected. The study covered four Credit Guarantee Schemesnamely; SME CGS, Microfinance CGS, Juhudi CGS and PASS CGS.

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From the study it has been observed that Banks find comfort in utilising those guarantees which arepackaged with products other than the guarantee. Lending to small businesses is recognised by banks ashaving many inherent risks for which collateral alone cannot mitigate. These risks include limited financialexpertise, asymmetry of information, unsupportive legal framework which makes the enforcement ofcollateral difficult, volatile revenues and lack of track records. Furthermore, it has been observed that thebanks have limited knowledge in micro financing hence employ standardised procedures for lendingirrespective of the size of the borrower.

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THE EFFECTIVENESS OF TAXPAYERS’ EDUCATION ON TAX COMPLIANCE INTANZANIA

Muchunguzi Hezron Kabonaki


Globally, Education to Taxpayers has always been recommended in various literatures as a major tool inpromoting tax compliance and in turn thus boosting tax collection rates. However, to date, in Tanzania,there are limited studies on the effectiveness of Taxpayers’ Education on Tax Compliance. This researchattempted to assess the effectiveness of taxpayers’ education in Tanzania. The purpose was to find out theways and extent to which one may improve the existing strategies in disseminating tax information to bothpotential and existing taxpayers.

The study used questionnaires, interview schedules and observation to collect data deploying stratasampling of taxpayers in Dar es Salaam. About 62 businesspersons responded to the structuredquestionnaires. Face to face interviews were administered on two officers from TRA in the Department ofTaxpayers’ Service and Education.

Findings from the study show that, at present, majority of the taxpayers are still ignorant about taxmatters affecting their businesses. This is a major setback on self-assessment as a major indicator of taxcompliance. In order to address this problem, it is suggested to the TRA to increasing tax educationoutreach, proper involvement of tax consultants in tax education systems and establishing more tax-centersfor disseminating tax

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THE IMPACT OF AUTOMATED TELLER MACHINES (ATMs) SERVICE QUALITY ONCUSTOMERS’ SATISFACTION

The Case of Customers of Banking Institutions in Dar es Salaam, Tanzania

Frank Stanslaus Shayo


Automatic teller machines (ATM) being an almost instantaneous communication medium that connectsbank customers to their accounts is now a phenomenon that has grown and spread around the globe at anamazing speed. Given the current trend of ATMs usage and its potential growth, this research examinedhow service quality of the bank’s ATMs affect customer behavioral intentions to continue to use ATMswhich in turn affect the extent of ATMs usage and satisfaction in the post ATMs adoption phase.

The study constituted a sample size of 165 respondents out of 200 questionnaires from 16 commercialbanks operating in Dar es Salaam, Tanzania whereas descriptive analysis through SPSS was used in dataanalysis. Chi-square statistical test was applied to determine the probability (likelihood) that two categoricaldata variables are associated.The study revealed that quality of services is a major factor that affects customer satisfaction in the bankingsector. The level of customer satisfaction and usage were high. In addition, the research indicated thatcustomers have positive attitude toward technology based services. Despite the high usage and satisfaction,customers do face problems, challenges and security threats when utilizing ATMs.

Policy makers must create conducive environment in enabling extension of ATMs services cost effectivelyto wider context. Theoretically the study has empirically tested how service quality, satisfaction and usagerate are related to each others and the contributions of service quality towards these constructs.

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THE RELATIONSHIP BETWEEN LENDING RATES AND BORROWING LEVELS BYSMEs

The Case Study of Dar es Salaam

Edes Said Tairo


The average lending rates by Commercial Banks and MFIs in Tanzania has been falling from 25% in theyear 1990s to 16% recently. Despite the above trend there was a circumstantial doubt as to whetherborrowing levels by SMEs has been proportionate with falling rates.

Descriptive research design was applied because the problem was well known and therefore the desirewas to test the variables. 34 questionnaires were administered to SMEs in the following areas in Dar Es

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Salaam, Kinondoni, Mlimani City, Sinza Kijiweni, Temeke, Kariakoo, Magomeni and Kimara Temboni.The Questionnaires intended to test as to how SMEs respond to changes in interest rates and how itaffects their borrowing decisions. Also 6 questionnaires were administered to six commercial banks whichare NBC, CRDB, STANBIC, Standard Chartered Bank, Akiba Commercial Bank, and Tanzania PostalBank and three to MFIs which are FINCA T Ltd, PRIDE Tanzania and Dar Es Salaam Community Bank.The intention was to asses as to whether any deliberate changes in interest rates had any relationship withborrowing levels by SMEs.

The study reveals that there is no strong relationship between changes in interest rates and borrowingdecisions by SMEs in Dar es Salaam. Since, Dar Es Salaam region is a good representative sample of allregions in Tanzania whereby there is presence of all banks and MFIs, the study can generalize that thesame situation applies in Tanzania as a whole.

Based on the research findings, this study recommends various strategies that need to be taken by thegovernment, and financial institutions that engage in the lending business. Among of the strategies is for thegovernment to formulate regulatory authority for MFIs so that they are regulated and monitored for thebenefit of SMEs. There should be consistent sensitization for SMEs and people at large to build culture ofsaving, borrowing and repaying, Government cooperate with entrepreneurship centers like UDEC to buildbusiness incubation centers. MFIs should include in their marketing strategies aspects of promoting differentloans, through different media about the loans they offer, conditions etc.

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THE ASSESSMENT OF THE PERFORMANCE OF HEALTH INSURANCE SCHEMES

The case of National Health Insurance Fund (NHIF)

Jane Lewis Malisa


The need to design and implement a national health insurance scheme in Tanzania reflected a number ofconcerns that were raised regarding the financial sustainability of the health sector. This study analyses theperformance of National health insurance fund, to see if it has fulfilled the policy objectives of its establishment.In addition, more importantly to see if it has created increased and assured revenue flow for financinghealth services. The study used secondary and primary data collected from different sources and it usedsome statistical methods to summarize the data. National Health insurance Fund, has tried to achieve thegoals for its establishment by increasing the health sector revenue and covering 89% of the public sectoremployees.

The study revealed that, for the period of six years of establishment NHIF succeed to cover 4 percentof the population in Tanzania and registered 9.78% annual compound growth rate of membership for theperiod between 2001/02 to 2006/07. It also shows that it offers a good benefit packages compared toother health Insurances and have a strong financial accessibility and sustainability where the fund contributionsare growing at the increasing rates and also generate money from investment. On the other side NHIFaccredited health facilities are discontented about NHIF delays in reimbursing them for cost of servicesprovided to NHIF beneficiaries while the perception of beneficiaries revealed that there is Customers’


dissatisfaction regarding services provided by NHIF accredited health facilities.

The study therefore, recommends that NHIF should increase Public awareness regarding NHIF servicesand offer training on customer care to all accredited services providers in order for them to offer qualityservices to beneficiaries. NHIF should be given administrative and quasi judicial powers to deal withdefault health care providers. The law should be amended to that effect. Furthermore, in the preparatoryprocess for universal coverage, there is a need for adequate studies, consultations with countries whichhad long established universal coverage and other stakeholders.

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MANAGEMENT CHALLENGES FACING SMEs TO INVEST IN INFORMATION ANDCOMMUNICATION TECHNOLOGY

The Case of Tanzania, Dar es Salaam Region

Peter Jacob Mayala

Master of Business Administration (IT Systems), November 2008

The major objective of this study was to examine and identify management challenges facing SMEs inmaking investment decisions for improved performance competitiveness.The study was conducted in Dar-es-salaam region and surveyed SMEs involved in manufacturing, foodprocessing, textile, tourist and other services.

Data were obtained from a sample size of 45 Tanzanian SMEs operating in Dar es Salaam City. Thisincluded 13 for Manufacturing, 9 for Transportation, 8 for Tourism, 5 for Wholesale, 5 for Retailing andother service provision firms were 5. Data were collected through a semi-structured questionnaire, bothclosed and open-ended questions were used in the questionnaire to collect the required information toanswer the study problem. The questionnaire was used as the main data collection instrument to avoidbiases likely to be caused by the Interviewer. In addition, structured interview guide was used to supplementquestionnaire. Data analysis was performed using Statistical Package for Social Scientists (SPSS).Findings of this research reveals that ICT business planning and strategy, inadequate ICT managementskills, inadequate finance, Size of SMES in terms of number of employees and the nature or type ofbusiness all influenced SMEs to invest on ICT.

The research also tested hypotheses, which were divided into four parts namely preparedness to investin ICT, Management skills, adequate finance, and size, type and nature of business. Results on thesehypotheses indicate that majority of SMEs with ICT plans reflecting business goals allocated budget eachyear to finance ICT investment in comparison with those who do not allocate budget each year to financeICT investment. Allocation of budget each year to finance ICT Investment depended on relevant ICTplans to support business goals. Moreover preparedness of SMEs in ICT investment was influenced byICT plans linked to business goals. Overall the results suggest lack of up to date ICT skills hinderedowners/managers of SMEs to make decisions regarding ICT investment to aid their business operations.Overall the results suggest that lack of training affected the owners/managers thought about investing inICT. Generally from the standpoint of those findings it appears that attendance to ICT training improvedthe thinking of owners/managers to positively deciding investing in ICT.

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Furthermore the study findings suggest that lack of the required ICT knowledge among owners/managersof the SMEs hindered their decision to invest in ICT as a strategic investment to improved businessOperations. Generally the results show that a bigger number of SMEs with employees 21 and aboveacquired ICT facilities whereas a bigger number of SMEs with employees 1-20 did not acquire ICTfacilities to aid their business operations. Moreover, the results revealed that acquiring ICT facilities isdepended on the type of business undertaken by respective companies. The study finally has recommendedareas for future research or further investigations.

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CAPABILITY OF SACCOS IN DELIVERING FINANCIAL SERVICES TO MEMBERSAND ITS EFFECT ON MEMBER RETENTION

A Case of Savings and Credit Co-operative Societies (SACCOS) in Tanzania

Mashaka Joseph Dalali


The purpose of this research was to investigate the extent to which capability of SACCOS in deliveringfinancial services to members affect member retention with SACCOS in Tanzania. It assessed how theantecedents of capability of SACCOS notably service quality, members’ savings, loan portfolio and capabilityaffect member retention either directly or indirectly with their SACCOS in Tanzania. The researchmethodology consisted of questionnaire survey to actual members of 20 SACCOS in Tanzania. The Chi-squire method and multiple regression models were used in the analysis of data. The former was used tojudge the variation of observed variables in explaining the latent variable while the latter giving the conclusionfor the stated hypotheses. Structural equation modeling was used to test the reliability and validity of data.The results suggest that there is positive relationship between service quality and members’ savings, thereis a positive relationship between service quality and member retention, there is a positive relationshipbetween members’ savings, loan portfolio and capability of SACCOS in delivering financial services tomembers in Tanzania, and lastly, there is a positive relationship between capability of SACCOS andmember retention with SACCOS in Tanzania.

The role of other researchers and other business firms is to further investigate on the effect of co-operative societies’ governing laws and support institutions on member retention with SACCOS in Tanzania.The research aimed at contributing to theoretical knowledge and at the same time guide SACCOSpractitioners with the strategies, tactics and programs to use in order to retain their members.

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A MACRO ANALYSIS OF SACCOS LOAN PERFORMANCE

A Case of Singida Municipal Council

Robert Maggo Alila


The main objective of this study was to investigate macro economic factors that influence loan performancein SACCOS as one of the Micro Financial Institution (MFI) in the context of liberalized economy.

In order to test whether there has been a relationship between loan performance and selected macroeconomic variables in the context of the opportunistic model, data were collected using questionnaire,interview and documentary review from entire population of 28 SACCOS that exist in Singida municipal,and data were analysed using linear regression analysis with help of SPSS.

The study found out that there is negative relationship between GDP, inflation, and monetary aggregatewith loan performance of the SACCOS. While, there is a positive relationship between loan performancewith interest rate and the number of SACCOS.

The recommendations given out with regard to the findings are:The SACCOS’ management should consider GNP, servers’ savings, interest rate and monetary aggregatewhen making the loan decisions.

Municipals should enact by laws that enforce members of the SACCOS in case of transfer and resignationfrom the jobs to ensure reduction of non-performing loans to the SACCOS.The SACCOS have to institute follow-up mechanisms including having SACCOS’ lawyer, who will dealwith cases of the SACCOS.

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CHANGE MANAGEMENT AND ORGANISATIONAL EFFECTIVENESS

A Case of The Accountant General’s Department

Mwero, Gabriel Lawrence


Change Management involves making changes in a planned way for purposes of organizational efficiencyand effectiveness. For quite sometime, a number of operating entities, especially in Public Sector; haveignored relevant skills required to manage changes including the management of people at workplaces.This study identifies some contributory factors towards organizational effectiveness and it gives a fewrecommendations on how change management can be managed, preferably by managing people at theAccountant General’s Department.

The aim of this study is to determine the essence of change management for purpose of organizationaleffectiveness in the Accountant General’s Department. The study further explores contributory factorstowards shaping the Department’s organizational culture in satisfying customers.

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The study was both qualitative and quantitative. It was carried out in Dar es salaam and other five sub-Treasuries namely Morogoro, Kilimanjaro, Iringa, Mwanza and Manyara covering only those employeeswho were by then working with the ACCEN’S Department.

The study found out that Change Management and Organizational Effectiveness was a complex construct.While Organizational effectiveness was a result of a combination of a number of managerial factors such asfinishing a day’s work in advance, using high-tech tools and software, organizing one’s office and doingright things, the pre-requisite for Change Management was planning to change so as to manage change.

The study concluded that Change Management was antecedent to organizational effectiveness.

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PRIVATE SECTOR GROWTH AND EMPLOYMENT COMPETITIVENESS INTANZANIA

ANALYSIS OF ITS CHALLENGES TO THE PUBLIC SECTOR

Musa Nkuba


This study argues that, the current growth in the private sector resulting from globalization contributes toemployment competitiveness. Subject to this, the public sector in Tanzania is considered to have strategiesto accommodate the associated challenges for effective labour management to improve performance andemployees’ well-being. To justify the matter, objectives focusing on identifying the challenges, their causesand influences to sector performance and employees well-being were set. Using a case study researchstrategy, qualitative and quantitative data collection from health and education sectors to investigate on theobjectives was done.

Findings reveal that the public sector in Tanzania encounters disparity in labour force distribution,competition in labour acquisition, labour mobility, scarce financial resources to meet employee needs andchange of its status as an employer. These contribute to reduced sector performance and employees well-being. It is concluded that, private sector growth causes employment challenges to the public sector inTanzania, challenges that are mainly categorized into labour acquisition competition and incompetence inmeeting employee needs. The former varies with the nature of the sector and profession of employeeswhereas the latter cuts across the sector institutions.

The study recommends for the public sector to focus at improving employees’ quality to meet the globallabour market demands, involve all stakeholders to devise strategies for improving institutions generalworking conditions and establish mechanisms for tracking and projecting labour mobility. Attaining theseamong others will assist the sector to move with the global labour dynamics and hence improved performance.

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MICROFINANCE AND POVERTY ALLEVIATION IN TANZANIA:

The case of Dar es Salaam

Oberd Mwampullo


Today one of the most compelling challenges facing Tanzania is the problem of poverty. Poverty is not onlyon a steady increase but also wide spread in rural and suburban areas. Microfinance is becoming one ofthe most popular options as credit has been identified as a barrier facing the poor. However, there is aconsensus that microfinance is not for all the poor. One wonders whom the poor are benefiting from theintervention. The overall aim of this thesis is to explore the impact of microfinance on common people. Thequestions that have guided me in the empirical investigation are based on what impact does micro financeprogrammes have on household welfare, can microfinance programmes savings reduce risks faced byclients, can microfinance empower people and under what circumstances can microfinance help the poorout of poverty?

This thesis is divided into two parts namely a qualitative study and a minor field study conducted inSeptember to December 2007 in Dar es Salaam. The methods used in the field were mainly questionnaireframework and semi-structured interviews. Other sources include written materials. The theoreticalframework is based on written literature about grass root models that create change like social capital,participatory and livelihood. I tried to get a better understanding of them during interviews.

The results that have been analyzed with microfinance institutions permit the following conclusions: Allthe clients reported an increase in their incomes, sent their children to schools, have been able to pay fortheir medical bills and can feed their families, can cope with future crises using their savings, and womenhave been empowered economically. However, some of the findings may not be conclusive and thereforeone should be careful in drawing conclusions. In order microfinance to produce the required results, it wasrecommended that NGOs and government should intensify the support of other factors, such asentrepreneurial skills, functioning infrastructure like financial services and the service should extended tothe remote areas where poorest of the poor live.

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THE IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT PERFORMANCEON THE MANUFACTURING SECTOR IN TANZANIA

Remmy Fidelis Temba


This study seeks to establish the impact of Foreign Direct Investment (FDI) on the export performance onthe manufacturing sector in Tanzania for the period 1975-2006. The paper determines the factors affecting

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the export performance of the manufacturing sector in Tanzania. Specifically, economic status characteristicslike exchange rate, foreign direct investment flows, growth of national GDP and world Demand of exportswere identified and tested to determine if they affect the sector’s capability to export. The study uses Stata10.0 for econometric analysis. The study found that growth of manufactured exports in Tanzania is mainlyaffected by the exchange rate, world demand and foreign direct investment (FDI).The study revealed thatthe national GDP growth and domestic investment had minimal impact on the export performance on themanufacturing sector. These results imply that efforts to promote FDI projects for manufacturing exportsshould be emphasized by the government. Appropriate mechanism to monitor the growth in the worlddemand of exports should be in place to help in the identification of opportunities in the foreign markets forthe country’s manufactured products. The country should maintain stable exchange rates as an incentive toboth the exporters and importers of capital goods for the manufacturing sector. Possible areas for furtherresearch are on the impact of FDI on employment and productivity on the manufacturing sector andinfluence of inflation on the export performance in Tanzania.

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CAUSES OF INFRASTRUCTURE VANDALISM IN TANZANIA

A Case of Optical Fiber Cable

Adolphina Mwesiga

Master of Business Administration, November 2008.

Tanzania Railways Limited is a privatized company since 1st October 2007. The company experiencedvandalism problems as it’s for many public and private Companies in Tanzania. The study aim was toestablish the causes of infrastructure vandalism that continues to face the organization, a case of opticalfiber installed by the company since 1998. The research has been conducted using both desk and fieldresearch methodologies. The study was designed as descriptive, a case study. Tanzania Railways Limitedhas about 3450 employees a sample of 94 employees was selected. The researcher’s judgment was usedfor selecting items she considered as representative of population. The data were analysed qualitativelyand quantitatively by using a statistical package for social sciences version 15.0 for windows. The studyrevealed that infrastructure vandalism is caused by people with intention of wealth creation for personalgain. Partnership among infrastructure vandalism victims is the way of preventing and controlling vandalism.Ignorance did not exist among employees but villagers needed to be educated about cultivation along theoptical fiber installation. The availability of market for scrap metals did not contribute to scrap metalbusiness in Tanzania. The researcher recommended that the victims of infrastructure vandalism must buildpartnership among themselves and scrap metal sold to industries or exported must be inspected to ensurethat no stolen metals are sold. Also the Government should completely ban the scrap metal business torescue the infrastructure from vandalism. The company TRL, must educate villagers on use of land alongthe railway track. The study has recommended further studies on availability of markets for scrap metalsin Tanzania.

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ASSESSMENT OF MARKETING STRATEGIES OF COMPUTERIZATION ONBANKING IN TANZANIA

The Case of National Microfinance Bank (NMB) Dar es Salaam

Sarah Naigaga Hezron

Master of Business Administration , November 2008

A strong and well-managed banking industry is necessary to support and sustain the growth and diversificationof the country’s economy and to improve the lives of typical Tanzanians throughout the country. The studyassesses marketing strategies of computerization in the banking industry in Tanzania focusing on NationalMicrofinance Bank (NMB).

NMB records and questionnaires to one hundred and fifty NMB bank staff and customers were thesource of data used in the study. Financial analytical tools were used to measure performance and marketpositioning of NMB in the banking industry. Published financial statements were the main source of informationused for comparative (comparison between banks) and trend (comparison between years) analysis.

NMB’s identified critical success factors included establishment of a functional and up to-dateinfrastructure with emphasis on the three components of the service marketing triangle (company, employeesand customers) linked together at the center by technology to achieve efficiency to meet customers’expectations. In addition, there was a change in management; from a bureaucratic government ownedpublic institution to a sound independent corporate competitive business. Information technology enableddiversification of products to meet market needs of the targeted customers and tailor human resourcesframework to cope with competition and growing market.

The way forward for NMB would be to focus on identifying customer needs and using the informationtechnology in place to introduce products that meet the specific needs. It was recommended that in orderto diversify products available to customers and ensure all their banking needs were addressed by onebank, NMB needed to diversify its customer base and products, change its working style to cope with thetechnological advancements; utilize Customer Relation Management strategy to minimize customer acquisitioncosts, have information technology security measures in place to ensure security of customers depositsand consider IT interaction with other banks to provide interactive automated bank services rather thanworking in isolation.

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USE OF COLLATERALISED COMMODITIES TO MITIGATE CREDIT RISKS:

The Case of Cotton Financing in Tanzania

Goodluck Nkini

Master of Business Administration (Finance), November 2008This study has been prompted by the growing concerns for credit risks in lending business. By and largecredit risk is still regarded as the most pervasive of banking risks and efforts to control its impacts are

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not conclusive. This entails that banks must continue to be conscious and wherever necessary imposestrict and conscious lending requirements including demanding adequate security to ensure banks aresecured against credit risks.

Collateral in a form of collateralized agricultural commodities is being used by banks in Tanzania tomitigate credit risks, however considering that the commodities involved are subject to price volatility,there are doubts that the adverse effects of price volatility may erode the value of the security held. Thisstudy has used deductive research methodology to analyze data gathered from commercial banks a sampleof which comprised of big and small banks of local and international status to establish the extent whichbanks are covered.

The empirical findings show that banks are covered against price volatility by applying a discount ratioless than 76% which the buffer allows the banks to hedge against price volatility in the global market.Banks are however, facing enormous credit risks associated with the practices of the traders to engageinto forward contracts prior start of the season and also holding onto stock waiting for prices to raise.Collateral management services have been found to be inadequate due to lack of qualities as required bylaw and international practices. It is recommended to banks to review the applicable ratio in order tomaximize their lending business not only to cotton and coffee but also to other commodities. It is furtherrecommended that banks should put strict policies in the appointment of collateral management companieswho play the major roles of safeguarding the collateralized assets being the only security for banks’ exposure.

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IMPACT OF INTEREST RATE ON LOAN REPAYMENT

A Comparative Study between PRIDE Tanzania and SEDA

Nicolaus Frank


The study’s main objective was to identify the impact of interest rates charges on loan repayment to MFIsin Tanzania. The study based on the comparative study approach between PRIDE Tanzania and SEDA.Simple random, stratified and purposive techniques were used to select respondents from both clients andstaffs. Administered questionnaires and personal interviews were conducted with both clients and staffs.Data were analyzed and presented using cross-tabs, frequency distribution tables and clustered bar charts.The study results envelope the following: high interest rate charged by MFIs has negative impact on loanrepayments, multiple loans contributes to hardship on loan repayments and increases default risks; higherloan levels than clients’ business capacity leads to loan default. Lack of clients’ knowledge about businessevaluations, channel of loan to non business activities, lack of detailed loan appraisals and transparencybetween clients and MFIs was also found to have negative impact on loan repayments.

The study recommended that MFIs need to reduce the number of clients served per credit officer,employ qualified personnel for clients’ business visitation, provide business training to their clients andreduce amount of interest rate as a result to reduce default risk. MFI clients need to consider the value ofinterest amount and measure the capacity of their businesses to repay the loan before applying for thespecific loan amount and avoid use of multiple loans as it increases the burden of interest amount.

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DETERMINANTS OF EMPLOYEE TURNOVER IN TANZANIAN FINANCIALINSTITUTIONS

Cases of Barclays, Exim and Akiba Commercial Bank

Kokusima Clement


Many Public and Private, Profit and non Profit work organization in Tanzania are experiencing high rates ofemployee turnover. In this study the researcher wanted to determine the factors which lead to employeeturnover in Tanzanian Financial Institutions.

The study was based on the case study approach that focused the three Financial Institutions (Barclays,Exim and Akiba Commercial Bank). A total sample of 75 respondents (23 from Barclays bank, 24 fromExim bank and 28 from Akiba Commercial Bank). Any employee in the designated departments who wasready to participate in the study by giving enough time was taken for interview until when saturation wasreached.The study showed various factors leading to employee turnover, such as looking for greener pastures, lackof recognition, poor supervision, lack of job satisfaction, job security and training, poor methods used inconflicts resolution and poor flow of information and communication.

The main recommendations of the study are that: conducting exit interview and periodic workerssatisfaction, providing job security, making sure that the new joiner have realistic expectations of their jobsand receiving sufficient induction training, recognizing employees, making good supervision, and makinguse a grievance procedure are among the methods which may be used to tackle the problem of employeeturnover.

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ASSESSMENT OF SERVICE QUALITY IN TRANSPORT INDUSTRY

The Case of Tanzania Zambia Railways Authority

Christostom O. M. Kayombo


TAZARA is facing competition not only from Tanzania Road transport but also from other transportcorridors (Roads, Railways and Ports) in Mozambique and South Africa. Another strategic challengefacing TAZARA is the growing and changing needs and expectations of customers as they demand broaderrange of products and services at competitive prices through more efficient transport.

The main objective of the research was to find out factors affecting service quality in TAZARA. Fivehypotheses were developed which rested on the five service quality dimensions as tangibles, reliability,responsiveness, assurance and empathy. The study shows that there is a gap between customer expectationsand management perceptions of TAZARA.

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The researcher concludes that the broad dimensionality of service quality as proposed by Parasuramanet.al, (1988) is not wholesale adhered to by Tazara staff..

The research therefore recommends how; Management visible involvement and commitment to service,quality values, undertaking frequent market research, implementing human resources development, investingmore resources for quality provision and conducting internal audit of Tazara’s own service performancestrengths and weaknesses.

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THE DETERMINANTS OF EXPORT PERFORMANCE

The Case of Zanzibar Export

Ashura Mrisho Haji

Master of International Trade, August 2007

This study seeks to examine and analyze the prominent factors that affect Zanzibar’s export performance.Specifically this study looks at the impact of human capital development in developing the Zanzibar economy,analyzes the contribution of FDI in boosting export activities and lastly evaluates the price effect of majorexport products in export performance. E-View 3.1 was used for the econometric analysis of the determinantsof Zanzibar’s export performance and the analysis is carried out using Ordinary Least Square method, ontime series data covering the period 1980-2005. The focus was to examine how the factors have beeninfluencing Zanzibar export performance.

The study found out that export prices have a positive effect on export performance and thus supportthe hypothesis of the study. Also the study reveals the negative impact on farm gate price (FGP) andforeign direct investment (FDI) towards Zanzibar’s export performance, and their coefficients are statisticallysignificant at 5 and 1 percent levels respectively.

The Price of cloves is an important factor for improving Zanzibar export and the development of theZanzibar economy, and its fluctuation trend provides earning instability for farmers who depend on clovesfor their livelihood and impedes Government to take on development programs.

To improve export performance for the Zanzibar economy, extra efforts need to be devoted to theeducation sector to improve the quality of education so that the skill imparted and outcomes can have adirect influence on export activities. More incentives and encouragement should be provided to the FDIthat can impact export, and value addition for the major export products should be encouraged withinformation sharing, producer’s participation in price setting body and orienting export strategy beingstrongly encouraged.

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TRADE FINANCE SOURCES AND INSTRUMENTS ACCESSIBILITY ANDUTILIZATION PROBLEMS FOR EXPORTERS FROM TANZANIA

Goodluck Nkini

Master of International Trade, April 2007This study has been prompted by existing imbalances in the global trading system whereby majority of thedeveloping countries are facing declining exports despite the fact that they have to a large extent liberalizedtheir markets and the volume of world trade has been on increasing trend since the world of Mercantilism.At least in the literature it is now evident that developing countries have a great deal to gain from free trademainly through improved quality of goods and services and general competitiveness. This is, however,difficult considering existing supply side constraints among them limited sources and instruments of tradefinance. This study has confined itself to existing supply side constraints related to trade finance and, inparticular, has sought to investigate factors limiting development and usage of trade finance sources andinstruments in Tanzania, hoping that the findings will be able to highlight issues requiring immediate actionand also lays foundation for further studies in this subject. The study has used data collected from banks,financial institutions, exporters, Bank of Tanzania, Tanzania economic review reports, interest and exchangerates daily reports and high court performance reports to investigate the actual problems facing exporters.The empirical findings show that there are number of obstacles which include but not limited to absence ofadequate support from legal and regulatory systems, high cost of borrowings, cumbersome procedures onthe side of granting institutions, lack of knowledge on the part of both exporters and support institutions,volatile local currency exchange rate and government inefficiencies in managing export credit guaranteeschemes. These findings have important policy implications.

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THE IMPACT OF EXPORT PROCESSING ZONE ON TANZANIA’S EXTERNALSECTOR

Ernest Elirehema Mnzava


This study attempts to establish the impact of export processing zone regime on the external sector forboth Tanzania Mainland and Zanzibar. It discusses EPZs impact on exports, employment and investment.The study argues that EPZs have been formed to solve the supply side constraints while the objectives forEPZs in their current trend as a regime are untenable. The EPZ regime focuses only on the manufacturingsector, which is not sufficient to attain the desired, export target of USD 25 billion per annum in 2025.Furthermore, the market is more interested in integrated value chain operations with some operations notcovered by the EPZ Act. Some respondents have requested that the regime extend its services to farming,processing and packaging for export. While EPZ implementation requires the participation of multiplestakeholders, practically it has not been easy for the line Ministry to influence plans and priorities of

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institutions of other Ministries for the success of EPZs. It has been difficult to integrate EPZ activities in thecountry’s economic development strategies. It has been observed in Zanzibar that the Amaan IndustrialPark is not well managed to meet EPZ criteria. On assessing its impact to the economy it looks comparativelyinsignificant in terms of its contribution to the economy. In addition, the study analyses the circumstancesfacing the EPZ scheme given that the window of opportunity has closed down coupled with the fact thatthe multi-fiber agreement has come to an end thus aggravating the situation even more. The study confirmsthat the poor infrastructural network and inadequate investment climate has rendered the contribution ofEPZs to the external sector to be negligible.

THE IMPACT OF TRADE LIBERALIZATION ON EMPLOYMENT IN INDUSTRIES INTANZANIA

Jumanne I .K. Ndayigeze


This study explores the impact of trade liberalization on employment in manufacturing industries in Tanzania.It focuses on the benefits of trade liberalization and also gives the negative impact of trade liberalization toemployees in manufacturing industries in the country. It gives an outline of trade regimes that the countryadopted in reform process. The objective was to measure the impact of trade liberalization on employmentin industries in Tanzania, the aim being to help in establishing some of the reasons for increased unemploymentin the country.

The study is organized in six chapters, chapter one provides background information on trade liberalizationin Tanzania, while the country trade overview is provided in chapter two. Theoretical and empirical literaturesare discussed in chapter three. The rest of the chapters that is chapter four five and six provide themethodology, empirical analysis and conclusions respectively. The study used secondary data, and thedata type is time series obtained from the Ministry of Planning and Economic Empowerment and, TheTanzania Bureau of Statistics

Results of the study provide that as imports increases the number of employees in manufacturing industriesincreases an indicator of having manufacturing industries that are dependent on imported inputs. Moreover,changes in exports appear to have insignificant positive relationship with the changes in the number ofemployees in manufacturing industries in Tanzania, explaining the fact that, the contribution of manufacturedproducts to national exports being also not significant

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EXAMINATION OF EVENT-RELATED PRICE REACTION OF EQUITY SECURITIESLISTED AT DAR ES SALAAM STOCK EXCHANGE”

Flavia Balthazar

Master in Business Administration (Finance)

From the efficient market hypothesis, a market is deemed efficient if security prices at all times fully andcorrectly reflect all available information that is relevant for the share pricing. The market efficient hypothesisholds a tool for examining the event-relate price reaction for equity security listed in a stock exchange. Theobjective of the study was to assess the security price reaction around the ex dividend day at the Dar esSalaam Stock Exchange (DSE). The study used the daily share prices of the six equity securities at DSEcovering 1st January, 2000 to October, 2004. The percentage change of share prices to dividend wascomputed. The data were analyzed using the descriptive statistic and Chow test. The chow test was usedto examine the presence of structural break around the ex dividend date. Primary data was used with theintention of corroborating evidence from secondary data.

The study reveals that most of the share price showed the percentage change of share price to dividendis higher than fifty percent. Further more the market found to be efficient with the presence of structuralbreak of share price around the ex dividend date. Moreover the dealers revealed that the share price tendto react whenever there is information releases. The few securities were used during conducting this study.This is because in DSE few securities have been listed. It was thus difficult to make a concrete conclusionabout the share price behavior during the ex dividend date. Since one of the government policies isencouragement of locals to develop indigenous ownership through development of the capital and stockmarket, then the government should find an easier way to increase the number of security at DSE.

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THE ROLE OF LOCAL GOVERNMENT AUTHORITIES IN TRAINING ANDDEVELOPMENT PLANNING

A Case of the Muleba District Council

Zephyrin, Gerald


The primary objective of this study was to assess the Muleba District Council’s capacity to plan thetraining and development programme in pursuit of the stability between performance capabilities andperformance demands in line to the LGRP orientation. The research based on descriptive survey. It wasqualitative research designed to employ the case study for exploratory study to establish characteristicfeatures of the LGAs HRs training and development plans.

Findings indicated that the existing HRs training and Development programme suffered from absenceof explicit policy to guide the preparations. This state made it possible for ad hoc training to occupy large

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portion in relation to the planned training implementation. This mostly was resulted by limited funds thathampered implementation of the plan. Also lack of the computerised database for the training undertakingsmade it difficult to have clear assessment of the plan. Nonetheless, the majority interviewees were of theview that HRs training and development plan was important and thus needed to be improved.

The study recommends a number of issues to consider. The Council is to institute mechanism to allowclear and acceptable procedures for training plan preparation. There is the necessary need for concreteintegration of the departments’ training plans to the Council training planning. There is also a need toinclude in the plan the forecasted percentage of ad hoc trainings. Ministries are urged to communicate withLGAs on the arranged trainings to be offered. On the other hand, the Council has to allocate sufficientfunds by increasing training budget from all sources of funds. More importantly, training for planners is tobe taken as requisite to reinforce capacity to properly project training needs. Training policy for trainingplanning management is of great magnitude. It sets guiding principles to observe in planning. In all, it is ofsignificance to establish and develop computerised database for training accomplishments.

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CHALLENGES FACING UTILITY COMPANIES ON MANAGEMNT OF FOREIGNEXCHANGE TRANSACTIONS EXPOSURE

The Case of Tanzania Electric Supply Company Limited (TANESCO)

Octavian Barnabas Komba


The appropriate level of firm business foreign exchange risks associated with foreign exchange volatility isthe key variable in any utility sector involved in transactions denominated in foreign currencies. With foreignexchange volatility effects, there is a need for a better understanding of foreign exchange risks managementtechniques to reduce risks.The study aimed at finding out the relationship between the firm expected profits and the exchange ratevolatility effects and assesses foreign exchange risk awareness and general practices within utility firms.The research was conducted at TANESCO head office where the researcher reviewed the energy purchaserecords imported from Uganda, Zambia and Independent power producers within the country. The casestudy and Survey approaches were used to collect the quantitative and qualitative data for the analysis.

The results show that there was lack of strong relationship between the expected level of profitabilityand exchange rate volatility and it has expected other factors have direct influence and have significantimpact to the firm expected profit or loss. Also it is evident that the firm has no sound policy on foreignexchange transaction risks management and low level of general practices in the foreign exchange risksmanagement activities as there is a perception that the capacity within the country to manage foreigncurrency risk is either weak or mostly non existent or where it is somewhat in existence there is a need tostrengthen that capacity.

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COMPENSATION AND RETENTION OF WORKERS

The Case of Health Workers in Public Hospitals in Dar es Salaam.

Grace Diyu


The main objective of this research was to investigate whether compensation has a positive relationshipwith retention problem of health workers in Tanzania. The Public Health Facilities in Dar es Salaam weretaken as the case study of the research to represent the whole.

Data collection was done through administering of questionnaires which had items with 5 point scale todifferent health workers, reading various documents related to the study and interviewing key resourcepersons from the Ministry of Health and Social Welfare.

The research findings revealed that, overall, the majority of health workers feel that they are inadequatelyremunerated in terms of benefits and incentives and would therefore not hesitate to shift to greener pasturesgiven opportunity.Since most workers are not satisfied with the overall working conditions in their respective fields, theywould not recommend their sons or daughters to follow in their footsteps by pursuing careers in the healthsector. This may have a negative impact on the number of future aspirants hence lead to future shortage ofhealth workers further compounding the retention problems currently experienced.

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EVALUATION OF MARKETING COMMUNICATION STRATEGIES OFCORPORATIONS IN TANZANIA

Frederick Bernard Msumali

Masters of Business Administration (Marketing), October 2007

This study aimed at researching effectiveness and integration of marketing communication strategies employedby corporations in Tanzania especially in the banking sector, with CRDB, NBC, NMB and Stanbic Bank(T) Ltd as a case study.

The study tried to answer the following research questions: Do banks design and implement marketingcommunication strategies in an integrated manner and are those strategies effective? What attracted thecustomers to the banks? Which bank has been relatively more successful than others and in which ways dothe banks communicate to its customers? The study was descriptive in nature with some elements ofexploratory and explanatory research. Questionnaires were administered to randomly sampled customersof the banks as well as staff of the banks. The analysis was done mainly using the SPSS statistical package.

The study established that CRDB and NBC have been relatively exemplary in communicating positivelywith their customers and that most customers willingly chose to join those two banks and were happy withthe services. On the other hand, NMB and Stanbic Bank retail customers were either forced to join thebank due to the monopoly or did so as a result of employers’ pressure. It has also revealed that the banksare aware of the IMC concept though they do not practice it.

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The study concludes that banks in Tanzania still need to harmonise their marketing communicationstrategies and hence an advice to the management of the banks to plan and implement their marketingcommunication strategies in an IMC manner.

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IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)ADOPTION ON MICROFINANCE INSTITUTIONS (MFIs)

The Case of PRIDE Tanzania

Richard Joseph


The main objective of the case study was to explore and gain an understanding of the impact of ICTadoption in the Microfinance industry in Tanzania. The study specifically addresses the following issues;first, the extent of ICT investment in PRIDE Tanzania and level of ICT competence to staff. Second, thestudy assessed whether the ICT adoption has helped the organization to improve organizational performanceand quality of services. Lastly, the study tried to expose major constraints associated with effectiveimplementation and utilization of ICT.

Respondents were drawn from PRIDE Tanzania staff in six different branches. This study used purposivesampling to obtain respondents from total population. Questionnaires were adopted as the main tool ofcollecting data. Variables and hypotheses were identified and developed to obtain statistical relationships.

Findings reveal that ICT adoption have helped PRIDE Tanzania to reduce some of operating costs,offer more products, increase productivity, monitor loan repayment and serve clients timely. The study alsoreveals management attitude towards ICT investment and utilization. ICT investment only refers to theacquisitions of ICT facilities, undermining the aspect of ICT training to ICT users (staff).

The extent of ICT utilization is solely automation, speeding up the processes rather than making useICT options to reorganize business operations. This study concludes that for the ICT to have substantialimpact, MFIs should stop using technology to mechanize old ways of doing businesses. The study arguesthat MFIs to utilize ICT to radically redesign business processes in order to achieve substantial impact ofICT investment.

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ANALYSIS OF SERVICE MARKETING STRATEGIES USED BY UTILITYORGANIZATIONS IN TANZANIA

The Case Study of Tanzania Electric Supply Company Limited

Sana B. Idindili


The purpose of this research is to analyse the service marketing strategies used by utility organizations inTanzania by taking a case study of Tanzania Electrical Supply Company Limited. The study cited theservice marketing mix which are people, physical evidence and process and aimed at establishing if these


strategies are used by TANESCO in their day-to-day activities and if they help TANESCO employees toprovide quality services.

The use of service marketing strategies was ascertained by assessing the functional quality dimensions,and the relationship between functional quality and customer satisfaction was examined using customerperception of satisfaction factors. A total number of 80 customers and 40 TANESCO employees weredrawn from TANESCO offices in Dar es Salaam region.

The study found deficiencies in the use of service marketing strategies. The results of the study showedthat a significant portion of the interviewed respondents showed dissatisfaction with TANESCO servicesregarding process, physical environment and staff behaviour towards customers. Further, the studyrecommended the improvement of customer care training for TANESCO employees, improved electricityconnection procedures and providing adequate technical and office equipment for company work.

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USABILITY OF MONEY TRANSFER INFORMATION SYSTEMS: THE CASE OF SWIFTAND TISS IN TANZANIA

Maduhu Mshangi


The main objective of this study was to explore the usability of money transfer information systems inTanzania. The study specifically addressed: linkage between reliability and usability; relationship betweenaccessibility and usability; relationship between affordability and usability; relationship between efficiencyand usability of money transfer information systems.Respondents were drawn from 36 financial institutions which are members of SWIFT and TISS in Tanzania;34 members are in Dar es Salaam region, 1 in Zanzibar and 1 in Kilimanjaro region. Questionnaires wereadopted as the main tool of collecting data,

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A CRITICAL APPRAISAL OF SALARY AND UPWARD MOBILITY IN TANZANIA

The Case of National Insurance Corporation (T) Limited.

Blasius Martin Lupenza

Master of Business Administration (Human Resources Management), July 2007

In a rapidly changing environment, each time an innovation occurs making an Organization competitive.Past success is not a guarantee of the future success. As a result, the Organization must re-evaluate theirstrategies. One consequence of the fight for survival and success is realization that employees are the mostimportant resource. Having in place the motivational frameworks for the employees is essential for effectiveperformance in the Organization. The main purpose of this study was to examine factors hindering effective

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performance within NIC. The specific objectives of the study were to examine the employee’s motivationalframeworks and practices related to salary and establish how they inhibit or enhance employee’s performancein the Organization. Also to examine the existing employees motivational framework and practices relatedto upward mobility and establish how they inhibit or enhance employees‘ performance. Finally suggestways of improving employee’s motivational packages and practices in the Organization. The study foundthat there was a low understanding by employees of the existing salary and upward mobility motivationalframeworks, the existing mobility arrangement plus the existing salary largely inhibited the employee’spositive work attitude and employee’s effective performance. The study therefore concludes that motivationis an integral part of the Organization that can either lead employees towards effective performance or betoxic in terms of work morale. I therefore recommend that the NIC Management should consider employeesas the most important resource that the organization can not do without. In this regard it should re-visit andreview the current motivational frameworks so as to boost the employees‘ morale and improve performance.

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GLOBALIZATION CHALLENGES ON LOCAL SMALL AND MEDIUM SCALECONSTRUCTION FIRMS IN TANZANIA

Tumsifu Meena

Master of Business Administration, July 2007

The main objective of this study has been to investigate and identify weaknesses faced by local contractors.Specifically, the study intended to investigate managerial capability, financial capability and technologicalcapability of local contractors as compared to foreign contractors; and investigate whether political influencesweaken or strengthen local small and medium scale contractors.The research was carried in Dar es Salaam region and involved the local small and medium scale contractors.A structured undisguised questionnaire was used as basic tool for collection of primary data, secondarydata collected from various sources and both were used in the analysis of the main key elements of thisstudy

The results from this study show that entry of foreign construction firms into the local economy has notspeeded technological transfer to local firms. There is little partnership or sub-contracting of constructionactivities between local and foreign construction firms. It was observed that most of bidding conditionsimposed do not favour local firms. Most of the hindering problems facing small and medium local constructionfirms in Tanzania were poor access to credit, high cost of construction equipments, poor technology, andpoor managerial capabilities. These problems claim to cause technical capability to participate in most ofconstruction projects including foreign funded projects.

It was recommended to put special opportunities and priorities to local construction firms to protectlocal construction firms. Polices on lending or leasing, subcontracting of works to small and mediumconstruction firms have to be prioritized to enable them to compete with foreign firms. Policy makers needalso to put in place conditions for the operations of foreign firms that will enable local firms to learn acquiretechnology from foreign firms.

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EFFECTIVENESS OF COLLECTING REVENUE IN LOCAL AUTHORITIES

The Case of Produce Cess in Korogwe District Council

Miraji Mohamed

Master in Business Administration (Finance), October 2006

One of the cardinal problems in local government authorities is to improve the critical financial conditioncaused by lack of revenue. Therefore, the purpose of the study was to examine the effectiveness ofcollecting revenue: a case of Produce cess in Korogwe District Council.

In examining the effectiveness of the method, control mechanism instituted and criteria used in levyrating by the council in collecting produce cess were taken into account.A total of 100 respondents were contacted from the district. The data were collected using three instrumentsnamely; documentary review, interviews/discussions and questionnaires. These instruments were appliedto the 100 respondents purposefully chosen. The data collected are presented and analyzed throughtables, graphs and percentages.

The study found out that produce cess collection has surpassed development levy collection becausethe revenue has increased by an average of 71.4 percent over and above revenue collected per annumthrough development levy method. The study also found that the guidelines and procedures used in collectingproduce cess as the major source of council’s revenue, has been very effective in comparison to theprevious method. Thus making produce cess the major source of revenue.

The above finding led the researcher to conclude that the procedures and guidelines instituted by thecouncil have been very effective in ascertaining maximum revenue collection. However, a number ofrecommendations are put forth, all aimed at tightening effective control and supervision in revenue collection.

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ACCOUNTING AND ACCOUNTABILITY IN FAITH BASED ORGANISATIONS

A Case Study of the Evangelical Lutheran Church in Tanzania, Eastern and Coastal Diocese

Felister Samuel Mushi

Master of Business Administration (Human Resourses Management), October 2006

This study sought to examine accounting and accountability in the context of governance in the Eastern andCoastal Diocese of the Evangelical Lutheran Church in Tanzania. We focused on four ingredients ofaccounting and accountability relationship, namely (i) conformance with rules, norms and canons of thechurch by church leaders and functionaries; (ii) performance in service delivery plans and developmentplans; (iii) the amount of information available to members of the church, and (iv) structure of roles andpower distribution in the church organization. All these four ingredients could affect accounting andaccountability positively or negatively. The significant findings of the study include the following:

First, there are adequate systemic controls to ensure conformance with church rules, norms and canons.However, as far as conformance with financial regulations is concerned, controls are rather weak at thecongregation and church district levels.

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Second, performance in service delivery plans and development plans is generally assessed as ‘medium’at the congregation and diocese levels, but as ‘low’ at the church district office level.

Third, the church organization affords all stakeholders adequate information and opportunity to participatein decision and policy making processes. This gives the congregants potential power to call church leadersand functionaries into accountability.

Fourth, the study finds that accounting and accountability in the church are influenced by two apparentlycontradictory orientations held by the congregants. One orientation is spiritual, originating from the Biblicalteaching that judgment should be left to God and that the clerics, as servants of God, are “anointed” by thespirit of God. These and related teachings make some congregants shy and soft in criticizing church leadersor making demands. On the other hand, we found adequate secularization of values in the church to enablecongregations and other stakeholders to call church leaders and functionaries into accountability as severalcases have shown.

Finally, the study makes several recommendations, including the need to strengthen financial accountinginstruments at the congregation and church district levels; the need to strengthen the church district officesorganizationally, financially and manpower wise; the need to create autonomous boards for major projectsat congregational, district and diocese levels; and the need to commit more time and funds to evangelisticwork.

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AN EVALUATION OF SERVICE GAPS IN POSTAL SERVICE QUALITY

The Case of Tanzania Posts Corporation

Said Kipagame Kaswella

Masters of Business Administration (Marketing), November 2006The main object of the study was to empirically examine the service gaps in postal service, the case ofTanzania Posts Corporation was chosen for the study.

A conceptual model linking the service gaps in the service quality aspects was developed and testedthrough a sample survey of 100 customers, 20 TPC Directors/ Managers and 50 TPC employees.

The findings indicate that service gaps analysis in TPC have no significant effect on service qualityprovision. The respondent’s (i.e customers and employees) have influence on the way they expect andperceive the quality of service in TPC.

The implication of the findings to the theory of customer satisfaction is that expectations play a minorrole in satisfaction process and thus supporting the proposition of understanding the service performanceand subsequent customer satisfaction in services and constant maintenance of durable products, serviceinclusive.

Practically, the findings indicate that the management side of an organization like TPC and other similarfirms should further strive to underscore the importance of customer focus and satisfaction by not solelyconcentrating on the monopoly nightmares in provision of their services, rather should examine a closelook from how customers requirements are met and satisfied including critical aspects of competitivepositioning, and increased customer relationship by the management and the organization as a whole.

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THE EFFECT OF ICT ON SERVICE QUALITY PERCEPTION AND CUSTOMERSATISFACTION

The Case of ICT-Enabled Services in National Microfinance Bank (NMB) Limited andCRDB Bank Limited

Najim Soud Ali


In order to achieve better lightning protection and Electromagnetic Compatibility (EMC) requirements forthe electrical power networks, it is important that the knowledge of surge propagation on the power linesshould be well known to protection engineers. This includes the knowledge of identifying the points onpower lines which would have the probability of having the higher values of induced surge voltages for aparticular Electrical Power Network in the event of a lightning strike terminating on the line or close to theline. Therefore, this work investigates the various factors that could influence the induction and propagationof transient surges in an Electrical Power Network when direct lightning strikes terminate on one of theoverhead conductors that has a greater probability of being struck.

In this work, the Medium Voltages and Low Voltages (MV/LV) Electrical Power Network (overheadprimary and secondary distribution lines) have been modelled as Multi Transmission Lines system (MTLs)for transient propagation studies. Two cases of transmission line parameters representation have beenconsidered i.e. lossless and lossy (conductor internal loss) conductors. The simulation results of lossyconsideration differ slightly from the simulation results of lossless cases in terms of wave shapes and peakmagnitudes of the induced voltage. In this study the struck conductor of the overhead primary and secondarydistribution lines is referred as the emitter whereas other conductors below the emitter are referred asreceptors. With different loads at the ends of the receptors, it has been found that the peak surge voltageis the highest on the emitter near the point of strike when all receptors are terminated with very lowimpedances. On the other hand, the obtained peak induced voltage is higher at either ends of each receptorwhen the receptors are terminated with very high impedance.

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DETERMINING INFORMATION TECHNOLOGY PERFORMANCE IN NON-PROFITORGANISATIONS

The Case of Bank of Tanzania

Leonard Lugega Ikombe Masano

Master of Business Administration (Information Technology and Marketing), November 2006

Information Technology (IT) has become a dependable organisational resource, but determination of itsperformance is still problematic as available evaluation tools were predominantly derived from finance

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management discipline that emphasise reporting performance in monetary terms.Unavailability of suitable methodologies and factors has hindered Bank of Tanzania (BOT) from

adequately determining performance of IT, as part of its corporate governance practices and regulatoryrequirements.

A combination of several tools from other scholars was used to develop a construct where Likert typequestionnaires was used to determine which of the benefit and value factors are suitable for evaluation ofIT Performance, and test them in Bank of Tanzania as a non-profit organisation. Results show that valuefactors are more preferred than benefit factors, but a combination of the two factors was also preferred.

BOT IT performance determined using these factors was found to be low, which concurred with lowIT maturity levels obtained from an alternative measurement using ITSM evaluation tool.

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PERCEPTIONS, KNOWLEDGE AND EFFECTS OF LOAN INSURANCE FUND (LIF)

Evidence from Clients and Staff of Pride Tanzania

Sethielf


Microfinance Institution (MFI) is an organization that offers finance services to the very poor. MFI semerged to serve the financial needs of these poor the community.

The main objective of this study was to assess the perception of MFI s clients on loan insurancefund.

To meet the study objectives, data was collected from three branches of PRIDE Tanzania namely,Kariakoo, Buguruni and Magomeni. Questionnaires were distributed to PRIDE Tanzania clients as wellas officials. Questionnaires were coded into statistical package known as SPSS and analyzed.Collected data and descriptive analysis was conducted and presented in tabular formats. Researchhypotheses were tested using chi-squire statistics.

The study shows that, there are mixed results on the perception and benefits of LIF to clients. Otherperceives LIF is used as collateral especially when client fails to repay loan, while, others perceived thatLIF do not help at all, instead, PRIDE is benefiting by holding/locking their money during the period of theloan.

The study concluded that, MFI s clients have positive perception about LIF, however, the problem thatarises is the way LIF is locked for certain period as well as delaying in disbursing LIF when loan is fullyrepaid.

The study recommends that PRIDE Tanzania should train their credit officers about LIF to enableclients to have proper information and knowledge about LIF and its benefits.Lastly, PRIDE Tanzania should try to reduce the restrictions to LIF to some extent whereby clients accesscertain amount of deposit he/she has deposited.

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EFFECTIVENESS OF INTERNAL CONTROL IN SMALL AND MEDIUM ENTEPRISES(SME) IN TANZANIA

Anad Grayson


SMEs constitute a huge portion of the enterprise population in Tanzania. SMEs contribute to employment,GDP, and exports. Unfortunately, SMEs contribution has been constrained by a number of problems;including problem on maintaining proper internal controls over record keeping and other operations.

The main objective of this study was to investigate whether or not small and medium enterprises (SMEs)maintain effective internal control in their day-to-day operations.

The study was conducted by a way of survey, fifty SMES (employing between 1-49) based in Dar esSalaam were randomly selected and 60 respondents were interviewed by use of questionnaires. Therespondents were divided into two groups i.e. the owners/ managers and employees working in SMEs.Theanalysis was performed using statistical package for social sciences (SPSS) where by comparisons andtabulations were obtained to help explain the results.

The result revealed that there is weak accounting control in SMEs due to lack of segregation of duty,inadequate documentation, unclear organization structure, few numbers of employees and possibility formanagement override. Also it was found that the use of professional accountant in SMEs is very limiteddue to high cost s of recruiting and maintaining them.

The result point to he need of professional body responsible for formulating and supervising accountingstandards in the country to formulate standards, which are tailored to suit SMES. The result also point tothe need of NBAA to promote accounting professional by conducting seminars, workshops to their memberson the need of maintaining effective internal controls. Also the result point to the need for government toformulate policies, which will facilitate growth of SMEs economically.

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Documents

Effective Utilizations of Performance Appraisal - University of Dar es