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Fostering growth of the rural non-farm sector in Africa: The Case of Tanzania

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  • Sundaram-Stukel, Reka
  • Deininger, Klaus W.
  • Jin, Songqing

Abstract

We use a survey of small rural enterprises from Tanzania to demonstrate quantitatively the economic importance of this sector and to identify participants' characteristics and obstacles to the sector's expansion and productivity. In stark contrast to most of the findings for the formal sector where taxation and other regulatory constraints were identified as key constraints in most of the countries, infrastructure constraints (but not regulatory obstacles) pose a formidable barrier to rural households' participation in rural non-farm and to investment and increased productivity by existing ones. The fact that such constraints emerge as particularly harmful for small enterprises suggests that policies to improve delivery of the public services in question will be important to provide a basis for a flourishing rural non-farm sector which in turn will have an important role for poverty reduction.

Suggested Citation

  • Sundaram-Stukel, Reka & Deininger, Klaus W. & Jin, Songqing, 2006. "Fostering growth of the rural non-farm sector in Africa: The Case of Tanzania," 2006 Annual meeting, July 23-26, Long Beach, CA 21165, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21165
    DOI: 10.22004/ag.econ.21165
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    Cited by:

    1. Independent Evaluation Group, 2016. "Growing the Rural Nonfarm Economy to Alleviate Poverty," World Bank Publications - Books, The World Bank Group, number 28971.
    2. World Bank, 2007. "Tanzania - Pilot Rural Investment Climate Assessment : Stimulating Non-Farm Microenterprise Growth," World Bank Publications - Reports 7798, The World Bank Group.

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