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The African Journal of Finance and Management (AJFM)
  • Editor-in-Chief : Dr. Vincent Msonge (The Institute of Finance Management, Tanzania)
  • Established : 1992

Table of Contents and List of Contributors

Vol 15 - 2 Issues
Vol 15 - Issue 1
  • Article 1
    Imanueli D. Mnzava*
    This paper integrates corporate governance and capital structure issues by testing whether and how managerial ownership influenced the responsiveness of firms to the corporation tax reforms of 1984 in the UK. The corporation tax reform of 1984 involved a significant change in tax -related capital structure variables which implied a significant adjustment of capital structures of the firm managed by the value- maximising managers. The paper uses OLS method (i.e. regression analysis) to test a non -linear relationship between managerial ownership and performance and then tests whether there i...
  • Article 2
    John Matsoha* , Nessan Ronan**
    The business world has available a plethora of decision-making techniques. But to what extent do they use these techniques when they make decisions. This paper addresses this crucial issue. A sample of firms in the Lesotho garment industry were surveyed. All these frrms are producing for export and can thus be described as competing in the global business arena. The results of the study are reported and recommendations are made as to how the financial decision-making process could be improved.
  • Article 3
    Ernest G. Kitindi* , Klodwig V. Mgaya**
    This study was undertaken to collect the views of practicing accountants in Botswana on a number of skills considered essential for any graduate in Accounting. Questionnaires were delivered to 250 accountants employed by various organisations in the country. Responses were received from 69 practicing accountants. These accountants were of the view that Accounting lecturers tend to be out oftouch with market and competitive expectations because they are isolated from business professionals. Of the essential skills expected for accounting graduates, financial accounting was fou...
  • Article 4
    Lucy M. Mboma *
    This paper presents the effects of ATMs on customer satisfaction in the Tanzanian banki ng sector. It is a new way of accessing banking services necessitated by customers' bustne s needs and is enabled by fast changing technology. Due to achievements brought about increased utilization of Information and Communication Technology (ICT) in society, t e banking industry has introduced Automated Teller Machines (ATMs). ATMs provide a n w method of dispensing customer services which are expected to increase efficiency, sa es performance, and enhance customer satisfaction. Three different banks w...
Vol 15 - Issue 2
  • Article 1
    Allan Syril Mlulla*
    Globalisation has transformed most traditional and conventional ways ofbusiness transactions and international relations between economies of the world. As a result of globalisation, capital markets have become important instruments in attracting capital flows globally. In developing economies, capital markets are still in the early stages, i.e. emerging markets, given the pace that they are supposed to move at so as to survive the hazards of globalisation. Adequate knowledge and skills on how to develop the emerging markets are required so as to realize the benefits of regionalizing the ca...
  • Article 2
    Lewis J. Lshemoi*
    In this work, the researchers intend to establish the criteria used by undergraduate students in Tanzania in choosing their banks. Mainly the work intends to fulfil the following objectives; Firstly, to determine the products/services' characteristics considered important by students and how these characteristics are prioritised according to their importance. Secondly the work seeks to evaluate theory behind evaluation of banking services, and thirdly, to determine how banks can differentiate their offerings to students in future and improve the perceptions of their services to students. ...
  • Article 3
    Zelea;em T. Temtime *
    Surviving and growing in today's turbulent markets require Small and Medium Enterprises (SMEs) to use information technology systems (ITS) to capture, process and analyze information input for business planning and managerial decision making. Although the planning behavior and use ofiTS are key areas in strategic management, the literature is dominated by the practices of large, multi-national firms. Research on the relationship between ITS utilization and strategy making in the context of SMEs in developing African economies is scarce. This paper examines the planning orientation and the ...
  • Article 4
    Mussa J. Assad* , Zawadia Nanyara**
    The purpose of this article is to ivestigate the determinants of bank interes spreads in Tanzania.The article also sought to map the nature of relationships and strengths of variables that influenced bank interest rate spreads.The article employed two research models sequentially, the first model decomposes interest spreads using the accounting framework (Randal et al,1998)and the second fixed effect model (Ramful,2001) uses regression analysis to ivestigate existance and strengths of relationships between spreads and each independe variable.High interest rate spreads in emerging economies ...
  • Article 5
    Kadida R. Mashaushi*
    Over the past two decades studies of the efficacy of trading rules have increasingly found returns to be predictable and presence of statistically significant abnormal returns out-of sample. Despite the fact that technical trading can have relatively less volatile returns due to being in and out of the market, some previous studies have explained their abnormal retums as compensation for risk premium. These studies have shown that periods of higher returns are associated with periods of greater volatility and that any profits remaining after adjusting for risk are statistically ins...
Vol 14 - 2 Issues
Vol 14 - Issue 1
  • Article 1
    Nessan J. Ronan*
    In this paper we address one of the fundamental problems confronting the modem organization. This is briefly, how we can achieve sound financial governance in the face of the financial abuses. Corporate financial governance is reviewed in the context of Zambian public companies. Governance issues are looked at from the perspective of information disclosure, governance structures and organizational checks and balances. The overall conclusion is that Zambian public companies do not exhibit evidence of good financial governance
  • Article 2
    Mohammed Amidu* , ]oshua Abor**
    This paper examines the accounting practices of SMEs in Ghana. The study revealed that SMEs in Ghana attach more importance to fmancial information by employing Chartered Accountants and degree holders to handle their accounting information. The study also shows that majority of the firms put in place internal control mechanisms to ensure accurate financial information and the safeguard of their properties. The study identifies three main sources of fmancial information used in the management of small firms: Income statement, Balance Sheet and Cash flow statements. Surprisingly majority of ...
  • Article 3
    Imanueli D. Mnzava* , David Hillier**
    This paper reviews the theoretical and empirical structure on taxation and capital structure and applies it to the Tanzanian environment. Substantial evidence exists that the taxation policy of a country and the effective tax level prevailing in an economy can have an impact on the amount of debt in a firm’s long term financing structure. Much of the development of this conventional wisdom draws from studies of developed economies such as the United States of America and United Kingdom and may not readily extend to a developing country like Tanzania. This study sets to examine extant aca...
  • Article 4
    John Matsoha* , Nessan Ronan**
    The business world has available to it a plethora of decision making techniques. But to what extent do they use these techniques in their decisions. This paper addresses this crucial issue. A sample of firms in the Lesotho garment industry was surveyed. All these firms are producing for export and can thus be described as competing in the global business arena. The results of the study are reported and recommendations are made as to how the financial decision-making process could be improved
  • Article 5
    Barbara Seedha* , Lauren Maxwelt** , Joseph Horton***
    Most African countries are seeking Foreign Direct Investment (FDI), because of the contribution FDI can make to their economic development and integration into the world economy. If well managed, FDI can be a channel through which African countries stimulate and sustain their economic growth rates. It is important to identify factors that have the potential to either impede or induce FDI flows into host countries. It is also important to recognize the mixture of positive and negative effects FDI brings to a nation. This research evaluates ways African nations can maximize the effects of FDI...
  • Article 6
    Benhaji Shabaan*
    The modem insolvency laws are increasingly incorporating rescue procedures, which provide for rescue of insolvent or financially distressed companies. In its modern sense, insolvency laws are not merely confined to liquidation but also address the possibilities of having an insolvent or financially distressed company rescued. This trend is attributable to the fact that in the modem times. The functioning company embraces more interests economically than the financial interests of creditors and owners. The paper explores the Tanzania's legislative trends as regards to the nature and structur...
  • Article 7
    Lucy Mary Mboma*
    Science is key to development process of humankind where technology is based. Technology has a significant impact on economy so it is to marketing performance, development and maintenance as it guides and supports basic, intermediate and service industries. Industries, technology produces industrial commodities, consumer goods and services whose role in marketing operation is directed to products, communication of prices, distribution and promotion processes. In the case of services, it positions perception of service quality, image, convenient shopping, and handling of transactions. Techn...
  • Article 8
    Nkisang N. Moeti* , Thabiso Botlhole**
    It was envisaged that the study would identify clearly serce attributes that constribute to attitude enhancement and depletion.This would then signal areas that neeed improvement.The results provided that the salespeople were not keen in providing after sales service , quality of advice and analysing clients needs properly.Although it would appear most customers prefer long-term relationships with their salespeople, the authors found evidence of lack of interest in long-term relatioship maintenance with clients despite its well-recognised significant importance
  • Article 9
    Isaya Jairo*
    One of the points made by critics of Modigliani and Miller's capital structure irrelevance propositions was that companies in various industries appear to use leverage as if there is some optimum range suitable for each industry group. While theory prescribes that the industry related capital structure pattern is caused by similar levels of business risk among firms in an industry, most prio empirical studies have either ignored or taken the relationship as given. The literature is full of other methodological anomalies. which could be the cause for observed inconsistent results. I...
Vol 14 - Issue 2
  • Article 1
    Michael Moughalu*, Chinedu B. Ezirim**
    This article attempts to answer the question of whether the external debt stock and associated servicing always discourage domestic investments in less-developed countries as claimed by some authors.Use was made of a comparative modeling approach involving multiple log-linear regression, distributed lag and autoregressive models. Comparative estimation methods were also employed, including the OLS. Cochrane-Orcutt, Maximum Likelihood, and instrumental variable techniques against time-series annual Nigerian data .fi·Oin 1970 through 2001. The results, among others, indicate...
  • Article 2
    Hamis Mwinyimvua* , Whilhelm M. Ngasamiaku**
    This article investigates factors that influence capita/flight in Tanzania, with a special focus on external debt as one of such factors. In doing so the article assesses the feedhack effects and long run impacts of such variables using time series data covering the 1970-2000 period and employs a VAR methodology within the Johansen Maximum Likelihood framework. The findings show that the external debt budget deficit, interest rate differential and GDP growth are the major factors that influence capital flight from Tanzania.The use of Granger causality test also reveals the existence of bi...
  • Article 3
    Fred Angels A. Musika*
    Developing an internal and external customer orientation will facilitate the implementation of relationship marketing principles by businesses. Relationship marketing highlights the need for an external customer orientation which in turn raises the need for customer-oriented ernployees. Employees will only be customer-oriented if an internal customer orientation is evident in the business. Four constructs pertaining to the internal customer orientation of small- to medium -sized textile retailers in the North-West Province were identified.After checking for internal consistency, effe...
  • Article 4
    B. Honu
    The rapid expansion of University education in Ghana since the 1970s has not heen accompanied by commensurate improvement in economy performance as predicted by economic theory and supported by cross-country studies studies that show high social returns. In contrast, expansion of university education in South Korea has been instrumental in propelling that country from third-world status in the 1950s ro its current status of a new(v industrialised country The difference between Ghana and South Korea is rhat u·hife South Korean llniversities continual to adapted their curriculum so th...
  • Article 5
    Rakesh Mohan Joshi*
    This book has seventeen chapters which lucidly deal with the following topics: learning objectives, core international marketing concepts like identification of emerging marketing opportunities, scanning the international economic_ environment, market research leading to decision making process of identification, segmentation and selection of international markets, product strategy, building brands, channels of international distribution to mention only a few. Another added feature of the book is its emphasis on case studies and mini-cases, which are not only strong and engagi...
Vol 13 - 2 Issues
Vol 13 - Issue 1
  • Article 1
    Emma C. Isinika*, Hamisi H. Afwinyimvua**
    Effective operation of the capital market depends on a proper environment provided for by good and sound macroeconomic policies of which fiscal policy is paramount. Poor design of the tax system and over-taxation of financial assets may constrain the process of capital market development and effective functioning of the financial sector in general. This paper examines the effect of tax policy on the profitability of financial assets and its implication on the development of capital market in Tanzania. Using data for the period May 1998 - December 2002, pre-tax and after-tax rat...
  • Article 2
    Deograsias P. Mushi
    This paper employs the Slutsky decomposition of the effect of price change to identify impacts of user fees on access to public health care. The paper starts with a theoretical outline that relates user fees to quality of health care before carrying out the Slutsky decomposition to identify the income and substitution effects of user fees in public health care. Delivery deficiency is observed as an important factor that shapes the impact of user fees on demand for health care. The findings suggest that introduction of user fees in public health care without appropriate measures to boost qua...
  • Article 3
    Adam Mwandenga*
    The signaling theory suggests that dividends signal future prospects of a firm. However, recent empirical evidence from the US and the UK does not offer conclusive evidence on this issue. There are conflicting policy implications among financial economists so much that there is no practical dividend policy guidance to management, existing and potential investors in shareholding. Since corporate investment, financing and distribution decisions are a continuous function of management. The dividend decisions seem to rely on intuitive evaluation.
  • Article 4
    Clemence P. Tesha
    In recent decades marketing has become more dynamic than before. The world has undergone rapid technological changes coupled with stiff competitions on the services or products offered in the services industry. In this competitive arena all enterprises exist to gain profit, however it is obvious that there exists no single formula for better services performance. Marketing managers and scholars believe that marketing orientation improves a lot a company's performance. This is vividly shown when one examines literatures on marketing orientation and its impact on company’s performance. It...
  • Article 5
    Josephat Stephen Ltika*
    This paper explores the link between contextual innovations, business growth me for garment micro-business based on survey data collected from Dar es Salaam Morogoro,Iringa and Mbeya Regions.the survey (on which the paper is based 2 ) intended to find out the role of information in the promotion of micro- businesses in the carpentry and garment sub sectors. The research was Important because some studies (Rogers,1995 Kibera, 1997) show that availability of information could explain why urban-based micro enterprises perform better, than semi-urban and rural ones, which suggests that...
  • Article 6
    A. A. L. Kilindo*
    Beginning the mid 1980s to the present the Bank of Tanzania has used a number of instruments that have implications on its balance sheet. Namely: those of commercial banks and those of other financial institutions. The size of the BOTs balance sheet relative to the rest of the banking system has implications on movement in monetary variables and hence prices. This article uses on econometric model to analyze central bank policy on the money stock and prices by investigating the relationship among the components of the balance sheet using data from the BOT spanning from 1986 to 2001. The res...
  • Article 7
    E. I. Temba*
    poor households save in various forms for various purposes.Although empirical evidence suggest that the poor would deposit if appropriate financial institutions and savings facilities were available, litle progress has been made to establish micro Financial Institutions (MFIs) as full-fledged financial intermediaries.MFIs offer only credit and savings mobilization remmains the forgotten half of micro-finance. Qualitative research design using case study approach was used.It was generally observed that , low income business owners are not so poor as suggested in the vicious cycle of low in...
Vol 13 - Issue 2
  • Article 1
    Salvador Cruz Rambaud*, Jose Garcia Perez** , Miguel Angel Sdnchez Granero***, Juan Evangelista Trinidad Segovitt****
    This paper aims to deduce the composition of a portfolio of investment funds when the investor wishes a periodic subscription of the shares belonging to the said portfolio. To do this, starting from the historical series of the selling values and using the model of Roy, we have deduced the profitabilities of each one of the funds in the case of a systematic subscription and so we have calculated the proportion of each fund in the portfolio. These results have been compared using the profitabilities obtained when the investor carries out a simple operation. Finally, this approach can be pres...
  • Article 2
    Adolphus Toby*
    The recent arbitrary increase of bank minimum capital base from the current N2 billion to N25 billion with effect from December, 2005, has raised the question of whether or not capital adequacy requirement affects bank asset quality, and hence limit risk concentrations in the banking industry. The theoretical and empirical evidence provides mixed results. In spite of the various contentions based on the grounds of moral hazards and the standard prudential paternalistic models, Dowd (1999) argues that there is nothing wrong with laissez faire banking that capital adequacy regulation will ...
  • Article 3
    John K. Mduma*, Maduhu L Kazi**
    Since the mid 1980sTaniania has been party to the macroeconomic reforms which aim at addressing socio-economic problems which have faced the country for some decades now. The key measures, which have been undertaken, include liberalizing the financial sector as well as the public sector. Among the macroeconomic achievements is the single digit inflation rate which has been achieved since mid 1990s and so far has been maintained. The study is important and may have a notable value-added in the existing literature as it attempts to dwell on the implications of low inflation rate on interest ...
  • Article 4
    L. F Ishemoi*
    This paper is about a country's tax structure to Foreign Direct Investment (FDI) inflows using Tanzania as a case study. In essence it is argued that the tax structure and the type of incentives offered by a country can be a major determinant of FDI inflows for third world countries. The paper is divided into six sections. In the introduction, a general overview of incentives is discussed. The general objectives of tax incentives are discussed in part two while their classification is made in part three. Parr four deals with the general overview of tax structure in Tanzania. Incentives offe...
  • Article 5
    G. D. Mjema*
    This paper analyses prospects of utilizing export trade as a strategy for poverty reduction in a small but open economy like that of Tanzania. Akin to other low income countries that are dependent on agriculture for both food and export earnings, the paper critically examines the strengths and constraints of using traditional and non-traditional exports for generation of pro-poor growth and poverty reduction. The paper advocates for policy interventions that would enable countries like Tanzania to systematically move away from subsistence production towards the production of high value trad...
  • Article 6
    Allan Syril Mlula*
    This study was conducted to investigate the value adding potentials and trade competitiveness of the cross border trade in a selected non-traditional export market in Northen Tanzania. The survey was co ducted on fruits in Muheza. Specifically objectives were to (a) evaluate trade competitiveness of the cross border export marker for oranges. (b) Determine the value adding criterion and examine variations across every market actor. (c) Identify factors influencing export values (gross margins) of farmers. The study is based on .farmers, local and Kenyan trader’s surveys, and a PRA. Data w...
  • Article 7
    Elisante Ole Gabriel
    This paper starts by discussing an overview of the Higher Education Sector in Tanzania. The relevant institutions are mentioned indicating them as private or public. For purposes of consistence of the discussion, Higher Learning Institutions (HLIs) were selected for an in-depth analysis and discussion. It should be borne in mind that, there are differing appreciations between the service users (customers) and the service providers (Managers and Technicians). For purposes of discussion in this paper, service users are students who are the core customers of the business. The three HLIs select...
  • Article 8
    J. P. Senzige*
    In the wake of integrated and interconnected information systems and increasing threats, protecting information assets are of paramount importance. The ISO 17799 standard stipulates ten domains of information systems security controls. Among these controls is the information systems security policy. This paper looks at the need for protecting information assets, the role of information security policy and outlines qualities of an effective information systems security policy.
  • Article 9
    P. E. Kihwelo*
    This article examines the legal protection of indigenous knowledge in Tanzania as well as the world at large. The paper starts by looking at various definitions of traditional knowledge as propounded by different scholars who have written in the subject. The paper examines also the relation between traditional knowledge vis-a-vis formal knowledge. It proceeds to examine reasons for the protection of indigenous knowledge and in addition the author surveys the protection mechanism of indigenous knowledge both in Tanzania and in the international arena. Lastly the paper recommends for the suit...
  • Article 10
    Lenny B. Kasoga*
    The development of democracy in Tanzania can be traced to the struggle for Independence between 1954-1961, when a multi-party law and constitution was inherited that in 1965 was changed to a single party system that lasted for 27 years. In 1992 the multi- party system was restored. The leadership principles that guide democratic governance in Tanzania entail transparency and accountability while the democratization process is based on the moral principles of human respect, human dignity, equality, unity, justice and people-centered development .This paper analyzes and disc...
Vol 12 - 2 Issues
Vol 12 - Issue 1
  • Article 1
    REPOA (Research on Poverty Alleviation)
    There are three global trends that have a great potential to influence Tanzania's tax system: democratization, aid flows and globalization. The growing democratization has the potential of lowering the level of tax collection for two reasons. On the one hand, more and more taxpayers are becoming reluctant to pay taxes due to low incomes and dissatisfaction with the current level of service provision. On the other hand, political leaders are finding it more difficult to use coercive means to collect taxes in fear of losing their positions, most of which were obtained through the democratic p...
  • Article 2
    Cranmer Rutihinda*
    The extent to which small and medium size enterprises (SME's) are engaged in marketing their products in foreign markets is an important factor that can increase their performance in those markets. This study examined the Export marketing involvement of SMEs from the Least Developed Countries using the case study of SMEs exporters in Tanzania's fish processing industry. Using factor analysis, the study revealed three main dimensions of export marketing involvement of Tanzania’s SMEs in the fish processing industry. They are distinguished as foreign product quality intensity, foreign marke...
  • Article 3
    G. D. Mjema*
    The macroeconomic effects of foreign aid on the development of a recipient, mainly Less Developed Countries, (LDCs) has been analyzed in terms of the Harrod-Domar model. Accordingg to this model and its subsequent revisions the rate of growth of output (g) is equal to the savings rate (s) divided by the incremental capital-output ratio (k). Thus: g=s/k................................. (1). This paper revisits the foreign aid savings debate in the light of omitted variables like per capita income which could explain the (negative) relationship between aid and savings
  • Article 4
    S. R. Mohamed*
    We consolidate our understanding of the link between risk and quality of news around information­ intensive periods for a sample of 169 stocks from London Stock Exchange by using mergers and acquisitions announcements as a source of unscheduled news disclosure. We document that volatility of stock returns around mergers and acquisitions announcements is directly related to the quality of the news disclosed and inversely related to the amount of pre-announcement information. These results are consistent with the hypothesis that firms with a lot of prior information tend to experience relati...
  • Article 5
    Josephat Stephen Itika*
    Despite different international and national interventions to promote the textile sector, studies have shown that the response in terms of innovation and competitiveness though positive does not seem to match with expectations. This paper explores and discusses innovation for competitiveness scenario based on an ongoing research in Morogoro Canvas Mill using cross sectional case study design. The objective of the research was, and is, to identify and assess innovative practices and challenges facing the Canvas Mill in the process of striving for competitiveness. At this level, the paper use...
  • Article 6
    Benhajj Shaaban*
    During the period from the late sixties to the nineties Tanzania embraced state monopoly of the economy with the state acting as owner and entrepreneur. This period saw the expansion of the public sector at the expense of the private sector. Public enterprises were the major policy instrument and as such people were made to contribute their promotion and development. However, inefficiency and poor performance led to the need for wide economic reforms and in particular far deep reaching reforms in the public sector. As a result, laws the reformed to give way to restructuring and divestit...
  • Article 7
    Adam Mwandenga*
    Financial institutions in Tanzania h e operated under a competitive financial system between 1961 and 1967. The same institutions faced a turnaround in 1967 into financial repression. It was a highly regulated and specialized financial system with government intervention in the context of a centrally planned system. High inflation and negative interest rates were common. The system was geared to serve more the public sector at the expense of the private sector. With the onset of economic reforms in 1984, the economy's direction began to move away from the tenets of a centrally planned econo...
  • Article 8
    Betty Machange*
    Companies operating as commercial entities must have sufficient cash balances to facilitate their smooth operations. Cash requirement can be raised from different sources, ranging from equity, various forms of debt, to internally generated funds through retained earnings which would otherwise be distributed to shareholders (Myers and Myers, 1991; J.Gitman, 1991). These sources are broadly classified into internal and external• while internal financing does not embrace financing costs, external financing takes into consideration the way finance is raised. Each of these methods carries a co...
  • Article 9
    J. P. Senzige*
    Explosive growth in use of information systems for all manner of applications in all walks of life has made provision of proper security essential. Users must have confidence that information systems will operate as intended without unanticipated failures or problems. Issues concerning privacy, availability, confidentiality and integrity must be addressed. However, the majority of information systems users still think that security issues related to the use, confidentiality, privacy and availability of the systems are the responsibilities of the information systems managers. The issue at ...
Vol 12 - Issue 2
  • Article 1
    S. R. Mohamed*
    The analytical work of Kim and Verrecchia (henceforth KV, 1991a, 1997) predict that the variance of price change is increasing in the precision of the announcement but decreasing in the amount of pre­ announcement information. The paper shows analytically that the implication of KV’s predictions on volatility carry over to systematic risk of securities as well. Their predictions are tested using empirical surrogates for the quality of pre-announcement information and the precision of news releases based in fundamental value of sample firms. After controlling for contemporaneous correlati...
  • Article 2
    Marcellina M. Chinjoriga* , Renald Robert**
    Literature and empirical evidence shows that financial markets in developing countries are very weak, shallow and susceptible to failure. One of the solutions to the problems is for the countries to adopt financial reforms. McKinnon and Shaw (1973), Fry (1997) and others have argued that financial liberalization increases financial depth, reduces interest spread, and increases bank investments. Since economic adjustments and financial reforms were undertaken in the early 1990's there have been different views on whether or not the financial liberalization have brought about the expected ben...
  • Article 3
    Deograsias P. Mushi*
    There are concerns on whether user fees in public health services are the appropriate means of improving both quality of the services and accessibility to the same. As a follow-up research, we set out a study to bring out the impact of fees on quality and attendance in health facilities in Tanzania. The study examined relevant provider and household surveys that were carried out at different points of time in order to compare changes in user fees, quality and attendance. The results suggest three major conclusions. Firstly, it is that user fees per se do not matter; rather, it is the expe...
  • Article 4
    Isaya Jairo*
    The influence of taxes on financing decisions has been a focus of an enormous body of corporate finance research for decades. There is no doubt that the deductibility of interest paid on debt by a company, shields that company, shields that company from part of the tax burden. This is probably one of the major reasons for the use of debt financing for some companies, and could possibly be one of the sources of the creation of the net present value of debt financing. However, the interest tax shield creates incentive to employ debt financing only if a firm has enough taxable income to shield...
  • Article 5
    C. R. Sathyamoorthi*
    Small, micro and medium sized enterprises play an important role in the economic development of Botswana. It is a proven fact that job creation is one of the important contributions of small business in Botswana. SMMEs account for almost 50% of formal employment. The two important ingredients for business development are finance and skill. Small business enterprises in most countries suffer from financial constraints and lack of entrepreneurial skill. There has been a crucial lack of business start-up training in Botswana, which has led to small business failures. The study covered fifty s...
  • Article 6
    N. S. Bonu*
    Out of P6537.7 million capital employed by ten major parastatals (Public Sector Undertakings) in the total assets for the year 2000, The Government of Botswana participated in equity of P4392.7 million and outstanding loans from Public Debt Service Fund (PDSF), Revenue Stabilization Fund (RSF) and Development Fund (DF) were P2094.1 million (Bank of Botswana, 2001 ). The return on equity is only 3.5% (fable 1). The funds, which should have been used for other developmental purposes, are locked up and generating a meager return. As the servicing funds are given on a less rate of interes...
  • Article 7
    J. P. Senzige* , K. Sarukesi**
    Introduction of Information and Communication Technology (ICT) in school education needs the development of a framework by the policy-making authorities. In this work an approach has been suggested based on survey conducted by the authors and an implemented model in another developing country. The main focus of this approach is the use of ICT in schools (both primary and secondary) in Tanzania considering resource constraint as a major factor.
Vol 11 - 2 Issues
Vol 11 - Issue 1
  • Article 1
    H K. R. Aman
    This paper emphasizes the role of public policy in addressing food insecurity. It begins with an elaboration of the food security concept. In this regard, the paper argues that the conceptual framework for food security should seek to ensure that food is available and accessible to each individual in sufficient quantities to guarantee nutritious diet and good health. In terms of food availability, the paper addresses three aspects, namely, food production, food trade/markets and food aid. In all of these, public policy is crucial to ensuring good performance. In terms of access to food, th...
  • Article 2
    Cornel K. Mtaki
    For more than three decades since 1967 the role of public corporations in the Tanzania econo y was dominant. However, their poor financial management and loss-making character could not e underestimated either, particularly by the tax payer who was ultimately responsible for sustaining them. or instance, in the year which ended in June, 1991, a year before public corporations were lined up or privatization, the aggregate losses accumulated by the loss making institutions exceeded the aggrega.te profits realised by the profit making enterprises by Tanzania shillings 4,616 million. In an eco...
  • Article 3
    C. R. Sathyamoorthi, B. S. Khupe
    Small and micro enterprises in Botswana are relatively young (G.Sunny & V.Babikanysia, 1994) Although this is the case, the Government has long recognized the importance of developing small business and all efforts are made to encourage them through various assistance programmes In its policy formulation processes, the Botswana government is guided by four major economic factors: Rapid economic growth , economic independence, sustained development and social justice .These are principles enshrined in the country's National Development Plan for the past two decades (Government ...
  • Article 4
    Elisante Ole Gabriel
    This paper will give a general overview of what is meant by globalization as well as & factors encouraging the globalization concept. Communication as a social phenomenon at the global dimension will be briefly discussed. More specifically the paper will address the issue of Export Marketing strategies, their weaknesses and strengths. Globalisation is considered to be a concept of taking the whole world as one huge market with homogeneous needs. Depending on the knowledge of the exporter, this can be useful but ifnot handled with care can be misleading. In the real world it might be dif...
  • Article 5
    Hermann Logang, Calvin Shipley, K. Michael Casey
    Informal financial markets play an important role in providing capital in less developed countries. This paper presents the organization of such markets and provides examples of how these markets operate concurrent with the formal financial sector. Specifically the paper provides a case study of the informal financial markets in the country of Cameroon.
  • Article 6
    Nicholas Odhiambo
    The effect of financial liberalization on investment in sub-Saharan Africa countries has drawn much attention in the recent literature. The major thrust of the literature has been to understand the mechanism by which interest rate deregulation on one hand and elimination of other forms of financial repression on the other hand; affect the quantity and quality of investment. This study attempts to empirically investigate relevance of financial reforms on investment efficiency in South Africa using Johansen-Juselius cointegration method. Contrary to the results of other previous studies, the...
  • Article 7
    Visemih William Muffe
    This paper focuses on the role of the association of Cameroon Accountants (ONECCA) as a regulatory bvody for the accounting profession in cameroon.The data collected have been used to carefully assess the effectiveness of the accounting institutions as a regulatory body.the data reveals the extent to which effective regularoty structures are essential to the growth of the profession and the develpment of the country.There is a clear need for a regulatrory freamework in the Accouunting Profession which should be set up by umbrella body i.e the association of Cameroon accountants (ONECCA) ...
  • Article 8
    S Ramakrisna*
    For a global manager it is said that twenty first century offers an exciting and challenging atmosphere to work. Does it mean a big change in the way the business have been conducted so far or simply means a change in emphasis on cenain ways. These currently, are some of the issues which are currently engaging the attention of economists, trade pundits and students of international business in general. So far, every manager has been used to work in a particular way. It was OK in a not so dynamic world of the past. But in a constantly changing world of to-day, where past is r placed by dyna...
  • Article 9
    A G Nkhoma-Wamunza*
    In the 21st century, librarians must play a more proactive role in the planning of library buildings.This paper argues that librarians must be knowledgeable about current and future space requirements to accommodate a wide range of activities and functions including information and communications technologies.In view of financial constraints, librarians must also be knowledgeable about available options on how to create space in order to ensure provision of effective library services to users.Advancements in new information technology and communication technologies must also be bornne in mi...
  • Article 10
    Neema Ngware*
    This paper examines the regulatory framework for access to legal shelter especially by low income households. The discussion is divided into the following parts. Immediately following this section we provide context of the discussion whereby the important question of urbanization in Tanzania in general and Dar es-Salaam in particular is presented. The second part focuses on urban governance providing the conceptual framework in which the process of urbanization revolves around. The third part discusses the realities and agonies of the residents of the Jangwani valley. In the fourth p...
Vol 11 - Issue 2
  • Article 1
    A A. L Kilindo* , J J. Nyella** , P. M. Noni***, J. L. Massawe**** , C. S. Kimei*****, B. Taimo******
    Economic managers in central banks and finance ministries in emerging market economies have increasingly been faced with the challenge of making and implementing policy decisions by using indirect policy instruments. This has necessitated development of proper programming frameworks as well as proper understanding of the interactions of macro-economic variables. Monetary programming has become such an important framework. This paper attempts to develop a monetary programming framework for Tanzania. Tanzania has implemented economic reforms since the mid 1980s-moving from a centrally control...
  • Article 2
    Patrick Mugoya*
    This paper shows that the need to increase tax revenue in Tanzania is obvious and that this can be done through a base-broadening, marginal rate-reduction and simplification of tax reform. It argues that minimizing statutory exemptions shall, not only broaden the tax base, but also simplify the tax system, improve compliance and enhance transparency and good governance. Marginal rate-reduction in personal income tax as well as in the value added tax could be expected also to impact favorably on voluntary compliance and economic efficiency hence resulting into an even broader tax base in the...
  • Article 3
    Isaya J. Jairo*
    During government ownership public corporations dominated the economy and some used to be subsidized and kept going even when they were technically bankrupt. Given that situation the insolvency code was not playing its role and its shortcomings could not be detected. Bankruptcy laws have a major impact on lender-borrower relationships and therefore on the structure of ownership and capital in companies. Investors take into account the fact that the design and the direct and indirect costs of a bankruptcy process differ among countries. These aspects of the code influence borrowing and lend...
  • Article 4
    Deogratius P. Mushi*
    This paper is about compliance with tax at local government level in Tanzania. A simple generic model of tax compliance is set out to determine the factors that might influence the behavior of taxpayers. The model is further specified to look on compliance with development levy in Tanzania. For simplicity and data constraints problem, legit model techniques are applied to sort out the major covariates of tax compliance. Empirical results of the model have shown that individual characteristics, tax effort and terms of trade with local government authorities are all important in explaining c...
  • Article 5
    Elisante Gabriel*
    This paper discusses issues connected with methodological choices. There is a need to be clear about the stance at which the knowledge is generated from. The existence of various domains for mapping knowledge and the concept of "methodological sophistication" will also be addressed. The connection of what we claim to know (ontology) and how do we claim to know (epistemology) will be addressed in this paper. Some mapping tools will be used to make understanding more easily. It should be understood that making a choice of a certain epistemic stance is not the end of the journey. The...
  • Article 6
    Sylvia Shayo Temu*
    Tanzanian's Poverty Reduction Strategy (PRS) focuses among other efforts at reduce n Income poverty, improving human capabilities , survival and social well-being and containing extreme vulnerability among the poor. In this context access of households and firms to physical and financial resources is extremely crucial. For the majority of Tanzanians ho are poor, without access to formal financial institutions, access to micro finance services is a viable alternative in an attempt to reduce poverty. Micro Finance Institutions (MFis) offer the poor, the poss...
  • Article 7
    Rose Aiko*
    Fiscal adjustment is an essential element of macro-economic stability and economic growth. Given th1t0 economic growth is the most powerful weapon in the fight for higher living standards, poor growth performance African countries, has been a challenge to economists, policy makers and international development institutions. Sub-Saharan Africa's performance in the 1980s and 1990s was disappointing with much of the region unable to break away from paths of negative or low per capita income growth, high inflation and fiscal deficits, and balance of payments difficulties. In the face of excess...
  • Article 8
    Paul Manda*
    This paper evaluates the social impact of the improved rural roads. Data is taken from a social impact assessment study carried out in the year 2001 along the improved (upgraded from earth to engineered gra el) Msata-Bagamoyo road in Coast Region, Tanzania. Data collection techniques employed were rapid rural appratsal of social services; in-depth interviews with a sample of households and secondary data. Results of the assessment reveal that the improvement of the road increased agricultural production, commercialization of agriculture and improved the timely availability of agricultural i...
  • Article 9
    Meshach J. Aziakpono*
    This paper presents and tests a model to determine either or both how anticipated and unanticipated money affects real output and inflation in Nigeria. The Barra two-step estimation procedure was explored. Also, the effects of devaluation and business cycles in the industrialized countries on output fluctuation in Nigeria were pursued. The evidence reveals that while anticipated money affects real output, the unanticipated money did not. Thus, the tests contradict the policy ineffectiveness proposition. Also, cyclical movements in the output 0 f industrialized countries negatively affect re...
  • Article 10
    Gabriel S. Umoh*
    This paper investigates factors, external and internal to enterprises, which affect their participation in credit market. Using data from 35 firms and 20 credit institutions collected through structured questionnaire, results reveal that more firms obtain Joan from informal sources, and many do not apply for loan from formal institutions due to inadequate collateral, difficult processing procedures and high interest rate. Profit analysis indicates that income and educational level of firms owner and value of initial capital reduce the likelihood of firm's demand for credit. Credit institut...
  • Article 11
    N. S. Bonu*
    This paper traces the existing Accounting Systems in a selected Public Sector Undertakings (PSU), in Botswana and examines how far the systems are suitable for the New Public Sector Undertakings Management (NPSUM). It concludes that the current accounting systems such as financial accounting, cost accounting, management accounting and reporting systems are not suitable for the effective and efficient management. It is suggested to adopt an Integrated Accounting System (lAS), which is to be, developed to suit the needs of a specific PSU as each PSU is different in nature and a blanket system...
Vol 10 - 2 Issues
Vol 10 - Issue 1
  • Article 1
    H. K. R. Aman, Tausi Mbaga-Kida
    High level of human capability are important in any meaningful development. In Tanzania the level of poverty is still very pervasive, due to low levels of human capability that is accelerated by among other things gender inequality, low levels of education, low survival rates and life expectancy due to poor health conditions, as well as the impact of HIV/AIDS. A broad range of policy measures is needed to improve every human capability in respect, but mostly in the areas of equal opportunities an .education. It is envisaged that Tanzania's Development Agenda must be people-centered. The rec...
  • Article 2
    N. S. Bonu, S. P. Palaelo
    This paper assesses the impact of financial institutions on the economic development of Botswana. As it is not sensible to depend on a single mineral (diamonds) for long-term economic development the Government of Botswana is shifting its economic emphasis towards the development of financial institutions. It is apparent that the influence of financial institutions is more on household than development activities. Hence, the Government of Botswana entered into banking activities. Government's realisation of the need to separate its banking functions prompted the establishment of the Botswa...
  • Article 3
    K. M. Casey, J. B. Duncan, J. N. Roge, S. Mehta
    This paper investigates the impact of the 1983 trade liberalization and inflation on the consumption function of Morocco. Findings indicate that trade liberalization and moderate inflation had little impact on consumption. The results do, however, show strong support for the permanent income hypothesis because lagged consumption was found to be significant in predicting current consumption.
  • Article 4
    Zelealem Tadesse Temtime
    Stiff competition driven by more demanding customers has exerted pressure on both small and large firms to adopt total quality management (TQM) practices. Although TQM has currently grown to become a well-established field of research, much of the work to date has concentrated on large, multi-product, multi-divisional and multi-national firms. Only a little has been done on the TQM practices of Small and Medium Enterprises (SMEs).The literature on quality improvement practices of SMEs in developing countries particularly in Africa is almost non-existent. The purpose of this paper is, theref...
  • Article 5
    M. P. Nyerembe
    This paper examines user needs in academic institutions in Tanzania and how they are being satisfied. It notes that no user needs survey has ever been conducted in academic institutions in Tanzania and argues that user needs are of various types e.g. graduate students, undergraduate students, researchers, administrators, individuals and others. I gives some practical steps in identifying information needs while also arguing that if you identify the needs of your client, the documentation and information service that you would provide to satisfy those needs will initiate action and bring ab...
  • Article 6
    Kadida R. S. Mashaushi
    The contributions of systems-re-engineering in dealing with legacy systems have been proved to be invaluable. On the other hand,the determination of original user requirements for which a legacy system was originally planned to address is such an important step in the re-engineering process that errors may invite yet yet another legacy system right at birth. This paper looks at how organizational-based approaches to the recovery process may produce original user requirements that may not be genuine.
  • Article 7
    Ester Macharia, Beatrice Magembe
    Dividend policy is an important and fascinating subject in corporate finance. Many researchers have provided insights into the issue of dividend policy and why it is an important area in corporate finance. However, the issue of whether there is an optimal dividend policy is still a subject of of on-going debate. It has been found that dividend policy is important because of the effect of its information on outstders regarding future prospects of the firm, its impact on the firm's capital structure, investment opportunities and stock price. This is an investigative study of the dividend po...
  • Article 8
    Visemith William Muffee
    The issue of working capital is very important to the operations of the Cameroon Development Corporation (CDC). Net working capital (i.e. the excess of liquid current assets over current liabilities) is an indespensable component of any business organisation's capital structure. For any company to make profits in order to enhance growth depends on the size of working capital and its proper management. The mismatch of working capital and fixed capital will always bring problems to the financial operations of the company. There must be an optimum size of working capital, because too much wo...
  • Article 9
    F. Ruhara
    The rationale of development banking and its attendant supply-leading concept has a theoretical under-pinning in the relationship between finance and development.this is to say that finance leads and causes development.Patrick (1996) defined supply-leading finance as the creation of financial institutions in advance of demand for their services in an effort to stimulate economic growth
  • Article 10
    C. R. Sathyamoorthi
    The need to look into the existing system of accounting control and information generation arose from the results of a preliminary interview that was carried out among a selected group of small traders. These traders reported that they had been incurring losses and yet unable to substantiate with facts and figures. It is in this context that the study was conducted to ascertain the control procedures and information generation in the selected small and micro business enterprises with a view of finding the strengths and weaknesses of the system
Vol 10 - Issue 2
  • Article 1
    Josephat Stephen Ltika
    This article presents and discusses the extent to which new orthodoxy approaches to small enterprise promotion empower households. The term "New Orthodoxy" refers to policies and practices that advocate and embrace the philosophy that credit provision for poverty alleviation should be guided by market forces alongside the creation of a conducive environment for institutional capacity building and enterprise culture. The word "entrepreneur" is used loosely to imply any person who owns and manages a micro enterprise or income generati...
  • Article 2
    Dennis C. Rweyemamu
    This study examines the performance of cashew nut industry in Southern Tanzania under the current policies of market liberalization. It looks at the activities in the crop output market. Since the inception of liberalization to the cashew sector in Tanzania, stakeholders are expressing divergent views as to how the markets for both inputs and outputs have performed. The specific objectives of the study were to assess production performance of cashew nuts after liberalization, identify institutional changes that have taken place, and assess the behavior of market participants and how they in...
  • Article 3
    Zelealem T. Temtime
    Business planning determines where an organization is going over the next year or more, how it is going to get there and how it will know if it got there or not. Most studies in small business management focus on financing and organizational problems as the main causes of business failure. However, these problems are rather effects of lack of proper and adequate planning than causes. Although a plethora of research studies (Hopkins and Hopkins, 1994; Boyd and Reuning, 1998: Brews and Hunt, 1986;Fredricson; 1984) were conducted in the past 3 decades, only very few studies (Sawyer, 1993; El...
  • Article 4
    Visemih William Muffee
    Since 1964, the CFA Franc has been pegged to the French Franc, having a fixed exchange rate. The advent of the Euro keeps the CFA franc in a very vulnerable position. This article examines the consequences of the introduction of the Euro on the CFA Franc. What will be the future of the CFA Franc, looking at its strategic importance to the CF A Franc zone countries?. It carefully analyses the importance of a common currency to both the European Col111Jlunity and the CFA Franc zone in the Sub-Saharan African Region. The article in the end summarizes the situation and makes necessary recommend...
  • Article 5
    Wilfred Mbowe
    During the early years of Tanzania's independence, social services and poverty level were better. However, over time, the situation changed as quality and quantity of social services, and individual income levels reversed. While this paper is putting into perspective the poverty situation in Tanzania, an effort is made to review and assess the causes for such reversals putting more emphasis on poverty­ reducing financing activities. lt is suggested that supporting poverty reducing activities in Tanzania has been disappointing and therefore a new working outlook needs to be pursued for ef...
  • Article 6
    Nessan J. Ronan
    In this paper, two countries, one developing the other developed are compared, from the perspective of fraud and corruption. The levels of fraud and corruption are examined through league tables and cases of fraud. An explanatory framework is developed for the observed phenomena. The conclusion is reached, based on the evidence presented that over the past ten years, both Zambia and Ireland have become increasingly more corrupt and fraudulent.
  • Article 7
    Eulalia I. Temba
    This paper discusses some preliminary findings from a study of four case studies (4) elected from a survey done in three regions in Tanzania. The paper attempts to discuss the role of credit 10 the development of entrepreneurship. The survey was done in Tanga, Mbeya and Arusha regions. The cases are based on the justifications so far given for advancing micro loans to small-scale entrepreneurs.. These Justifications are economic development and growth, poverty alleviation and women empowerment. The last justification is not a concern in this chapter. In discussing the cases, various reas...
  • Article 8
    Nicholas Odhiambo
    This paper takes a fresh look at the causal relationship between financial development and economic growth in Kenya. In this study, Hsiao's (1979, 1981} test procedure, which combines both Akaike's 1969) final prediction error and Granger (1969) causality test is used. Using two alternative variables as proxies for financial development and economic growth, the study finds a bi-directional causality pattern prevailing between monetization variable {M2/GDP) and real per capita income (y/N). However, when a similar test is performed between currency ratio variable (CC/Ml) and gross investment...
  • Article 9
    G. D. Mjema
    This paper reviews the foreign aid and external debt stance in Tanzania in the context of the HIPC measures. Working from the country's current foreign and debt stock the paper analyses whether the implementation of the HIPC initiative will make the debt burden more bearable and finally be the true exist to the debt problem. It is plausible however to commence with a theoretical note, albeit briefly linking a country’s indebtedness to its poverty stance
Vol 9 - 2 Issues
Vol 9 - Issue 1
  • Article 1
    G. D. Mjema
    The Highly Indebted Poor Costumiers (HIPC) initiative mainly by the World Bank and the International Monetary Fund has two features which distinguish it from earlier attempts to deal with the external debt problem of developing countries. First, unlike earlier strategies which resorted to dealing with bilateral or multilateral debt the HIPC initiative attempts to deal with the total debt. Secondly, it recognizes that the existence of poverty is a constraint to servicing debt. This paper analyses the HIPC initiative in the context of Tanzania, a poor debt stressed and developing country and...
  • Article 2
    Marcellina M. Chijoriga
    Over the years there has been an increase in the number of bank failures in both centralized and decentralized economies. Internal reasons given for bank failures include reckless lending, corrupnon, no use of prudent classification and risk assessment methods, fraud and management deficiencies. External factors such as deregulation; lack of information among bank customers; homogeneity of the banking business, connections among banks do cause bank failure. For centrally planned economies, govern enr a_n political interference in the banking operations and policies also contribute to bank f...
  • Article 3
    Fredrick M. Ruhara
    The experience with financial liberalization is rather mixed. There are success stories and there are cases of failure. However financial sector liberalization school predicts improved performance if there is right sequencing of the reform programme. Increased savings following from increased positive interest rates increased efficiency in the allocation of credit and financial integration in the economy are some of the expected outcomes. Tanzanian experience and that of other countries show that the expectations about financial sector liberalization are not attainable even where th...
  • Article 4
    Adam M. Mwandenga
    In Tanzania and during the short run period privatization has had both positive and negative effects to the economy. The positive impact seems to outweigh the negative. Positive divestiture results can be measured by the number of firms that have been divested, performance of firms which have already been divested, performance of firms, particularly those involved in the supply of public utilities which for the time being remain in the public sector domain, and the degree of competition enhanced by privatization in general. Negative divestiture results seem to hinge primarily on the number ...
  • Article 5
    Richard Mushi
    The parastatal sector in Tanzania grew at a tremendous pace in the last three decades. An inventory of the sector done by the Parastatal Sector Reform Commission in the early 1990s came up with a figure of 425 firms. The large number of firms is also reflected in the large proportion of gross capital formation and high share in waged -employment. The strength in numbers and level of investment has not been matched with a positive fiscal impact on the government sector. The parastatals have consumed a disproportionately huge portion of the government's financial resources. Apart from failing...
  • Article 6
    Joseph L. Shitundu, Eliab G. Luvanda
    The question of the effect of inflation on economic growth is one of the issues that have been hotly debated in macroeconomics. While some scholars, particularly those leaning towards the Keynes1an and Structural perspectives rend to believe that inflation is not harmful to economic growth, other scholar , particularly those in the monetarist tradition, argue that inflation is harmful to economic growth. In this study, use is made of the Least Trimmed Squares (LTS) method, as introduced by Rousseeuw and Leroy (1987), which detects regression outliers and produces robust regression, to ex...
  • Article 7
    Isaya J. Jairo
    Tanzania's current restructuring programme entails not only private ownership but also a dispersion of ownership of companies to a wider public of private entrepreneurs. This paper uses agency theory to examine the contractual relationships between various parries in these privatized companies. An exposition of agency problem and coscs is made and ways to reduce them are suggested and analyzed. The relevance of the theory to the restructuring programme is also examined. The paper analyses how privatization is going to define the agency relationships, thereby enabling the application to agen...
  • Article 8
    Emmanual Ndikumana
    This paper attempts to discuss the impact of IT in work places generally and on employment and skills in particular. It provides, albeit briefly, an overview of the wind of change exacerbated by information technology across different countries, organizations and indeed cultures in the employment scene. This scenario is reflected through an array of optimism and pessimist view. The paper concludes by arguing that human d1oices invariably overshadow technological rides.
Vol 9 - Issue 2
  • Article 1
    L. X. Mbunda
    The United Republic of Tanzania joined other developed and developing countries in dealing with monopoly problem by enacting the Fair Trade Practices Act of 1994. The gist of the legislation is to encourage competition in the economy by prohibiting restrictive or unfair trade practices controlling monopolies and concentrations of economic power in the newly liberalized economic environment. Although countries may have different political and economic policies as well as different policy considerations, it is generally· agreed that anti-monopoly policy in most countries is aimed at promoti...
  • Article 2
    Joseph T. Tahsoh
    The study was conducted to determine the problems small and medium size enterprises (SMES) face in obtaining credits which could be a constraint to their creation and growth. Available data from the banking sector shows that as much as 78.7% of all commercial bank loans go to SMEs and large companies. This includes 862% of all medium term, 18.9% of all long term and 3.6% of all short term loans. SMEs and large companies pay back their loans better than the other classes of borrowers. Today the average loan repayment by all groups of bank clientele stands at 52.5% which is below World Bank s...
  • Article 3
    Rabson Mgaya, Gert Jan de Vreede
    Electronic meeting support, such as Group Support Systems (GSS), can play a crucial role in supporting groups engaged in development activities. Being an American invention, research into GSS is predominantly focused on Euro-American settings. GSS field studies in other cultural environments are scarce. The objective of our study is to explore the applicability of GSS in two particular environments: Tanzania and South Africa. Our data suggest that the use of GSS is evaluated positively in both countries, although Tanzanian groups perceived more benefits. In South Africa, top management disp...
  • Article 4
    Nathan Mnjama, Peter Sebina
    This article begins by examining the role of records management in private organizations. It identifies the major reason why organizations ought to manage their records effectively and efficiently. Its major emphasis is that a sound records management programme is a prerequisite to quality management system programme. Records it, argues is the lifeblood of the organization, and failure to manage records as not just a minor lapse in administrative work, but is a case of bad management. It outlines the broad areas that must be included in a sound records management.
  • Article 5
    Visemih William Muffee
    The good performance of any organization depends on the internal control system established by the management. Such a system will ensure that the organization’s assets, liabilities and capital are carefully safeguarded from unauthorized use or disposition. Ir will also ensure that financial and other information is properly maintained on a timely and reliable basis. The system will help to eliminate errors, and irregularities will be quickly discovered and promptly corrected making sure that operational efficiency is maximized. It makes sure that managerial policies, organizational laws a...
  • Article 6
    Amos Mhina
    The national budget is expected w be an instrument for the judicious allocation of public resources. It is true however that priorities are not always followed as influential groups are able co get access w more of these scarce resources than others. While the consequences of misallocation of public resources in some sectors are missed opportunities in the health sector the consequence are often citizens dying of avoidable causes. The most vulnerable groups in this case are women and children. Our paper raises gender issues as they manifest themselves in Tanzania's national budget and the ...
  • Article 7
    Peter Owoko Kobonyo
    The widespread existence of smoking as a form of social behavior despite growing worldwide disapproval has placed cigarette smoking at the heart of a growing controversy. The World Health Organization (WHO) now periodically reports on the effects of tobacco consumption on the health of smokers. In South Africa, new legal steps are being taken towards the control of tobacco smoking. This is in line with world­ wide trends towards tougher tobacco legislation. Research on the topic of tobacco and smoking arc numerous and represents world-wide attempts to understand and eradicate what is gene...
  • Article 8
    Albert Bwire
    The approach to deposit insurance (D1) and bank runs suggests the imposition of discipline on bank stockholders and debt holders. It is possible to do this by increasing level of capital and reliance of market value accounting besides risk adjusted insurance premiums.The discipline to debt holders can be achieved through 'haircuts' for large depositors and reduction in deposit insurance caps. The discussion of deposit insurance forms the basis of this paper . The paper examines deposit insurance what it can effectively achieve and where it requires supplementary regulatory mechanism.The f...
  • Article 9
    S. Ramakrishna
    Globalization has been defined in different ways by different people.It is like an LPG syndrome comprising liberalization, privatization and globalization.The main criticism about globalization comes from the fact that although it may generate unprecedented opportunities and wealth , the benefits of the same are not evenly distributed.Moreover, many consider globalization as a panacea for all the ills of their ailing economies.Globalization should however be considered only as process to liberalize the economy in order to integrate the same with that of the world.
Vol 8 - 2 Issues
Vol 8 - Issue 1
  • Article 1
    G. D. Mjema
    The World Trade Orga iza ion C'Y"fO) was ormed in 1995 and, since then a_ number of c?untries- mostly the Lee Developed Countries mcludmg Tanzama - have become mebers of this global tradmg organization.the main objective of creating the WTO was to facilitate international trade. In this regard it has a rather ambitious ob_je tiv of clim nating tariff and _non-tariff barriers to tr d.e berween nations. This paper critically analyses the eXISting JnternatJonaJ trade paradigms and the opportUnitieS and threats posed by the WfQ tO a developing country such as Tanzania. In doing so, the pap...
  • Article 2
    Ernest G. Kitindi
    The use of financial statement information has been well documented. It is expected to facilitate decision making pertinent to the user. However, financial statement information is useful only ifir is available on time. This study sought to establish whether financial statement from Tanzania parastatals were availed on time, and if nor, whether the delay was significant. Using the Normal Approximation Rule to rest for significance in mean time difference, it was found that parastatals delayed in releasing financial statements. The difference in mean time for their release was found to be...
  • Article 3
    Emmanuel D. Ndikumana
    This paper attempts to discuss whether HRM represents a new approach to managing employment relationships in developing countries.It defines with brief descriptions the main key terminologies namely employment relationships, HRM and PM.The basic philosophy and values enshrined in the HRM model are explored.It compares and contrases HRM, welfare, traditional Personel Management and Industrial relations approaches.It pulls the threads together to draw a balance sheet of the discussion by portraying that HRM is an evolutionary rather than revolutionary process
  • Article 4
    Oswald R. Mutaitina
    In recognition of the important role banks play in any economy, numerous researches have been undertaken on how these institutions should be regulated. For example research on capital requirements have indicated that the capital base of a bank is vital for the protection of its creditors (its deposirors) and hence for the maintenance of general confidence in its operations and the underpinning of its long term stability and growth.Other researches have addressed the deposit insurance schemes as well as reserve requirements and their effects on the risk taking behaviour of banks. The pri...
  • Article 5
    Patrick K. D. Mugoya
    In microeconomic theory of open econimies, it is argued that an adverse fiscal imbalance results into a higher real interest rate. In tum higher interest rate reduces net foreign investment andthat this leads to an appreciation of the domestic currency.This study is a preliminary empirical investigation of the extent to which the budget deficit in Tanzania has had any relationship with the real interst rate and the real exchange rate. After analysing relevant data covering almost three decades beginning in 1968, the study finds no evidence to support the above theory.Further empirical wor...
  • Article 6
    K. R. S. Mashaushi
    This paper looks into the reasons for an apparent boycott of theoretically proven structured techniques and methodologies by most developers. It begins by discussing the fact that when a methodology for developing software contradicts with the way human brains solves problems, the result is stress and hence burnout to he software engineer. Points that explain the boycott are identified and explained. The paper then proposes further study considerations needed to improve the use of structured tools.
  • Article 7
    Joseph T. Tahsoh, Clemence N. Ngwasiri
    101 SME (Small and MediunHized Enterprise) operators were interviewed in a sample survey in Douala, Cameroon, to elicit the legal and administrative constraints to the creation and functioning of SMEs in Cameroon.The fulfilment of business entry requirements entails transactions costs which are by far more than the legal costs. For example, while the direct cost for a one man business is 1,6000 francs, the sole prop _,crors who were interviewed reported an average expenditure of 107,550 (672.19% of this amount) to fulfill [he requirements. A bar operator spent on average 55,562 francs for ...
  • Article 8
    T. A. Satta
    Micro finance is widely regarded as a tool for poverty alleviation in developing countries and the level of poverty in those countries makes it even more popular.This article looks at the progress so far made in Tanzania in instituting mirco finance activities as a means of alleviating poverty.Evidence shows that little progress has so far been made in financing rural and micro-enterprise actrivities despite the inception of financial sector reforms in 1991.This little progress could be attributed to among other things, the failure by the reforms to include comprehensive and complementing p...
  • Article 9
    Rabson J Mgaya, Gert Jan de Vreede
    The University of Dar es Salaam's (UDSM's) corporate strategic plan sets the long-term plan and concepts that guide the transformation processes at the University.In this paper, we discuss a support environment UDSM can apply to facilitate the execution of the UDSM-2000 Transformation Program.This environment consists of a particular type of Information Technology that support electronic meetings namely Group Support Systems (GSS).We will illustrate that the applicatio of this technology and research not only supports the reshaping of the University's adminstative processes and structures, ...
Vol 8 - Issue 2
  • Article 1
    E. G. Kitindi
    The audit of small and micro-enterprises has, for a long time, been of concern to many academics and practitioners alike. Arguments have abounded as to whether the small enterprise audit was worthwhile or not. Though both views existed, it was apparent that small enterprise auditors did face problems in the small audit, albeit in different forms and magnitude. Some countries allow small enterprises to go unaudited. In the UK, a financial reporting standard for smaller entities has been promulgated in an attempt to mitigate some of the problems. This paper presents findings of an explorator...
  • Article 2
    Oswald R. Mutaitina
    This paper sets out to empirically analyse the impact of mergers and acquisitions on shareholders returns. It uses the U.K. data for 60 companies that were involved in takeovers in the period between 1992-95. The paper assesses stock market response to the announcement of takeover bids for these randomly chosen successful bids in order to establish whether or not it is indicative of gains from mergers. The study finds that there are significant abnormal returns earned by shareholders of the target firms on the month the merger is announced. In contrast, the returns earned by stockholders of...
  • Article 3
    Dominick S. Iwisi, Ernest G. Kitindi
    The corporate annual report is commonly used by business entities ro convey information ro interested persons. An important component of the report are the financial statements and the auditors report. Since rhe report is a primary source of'informarion for shareholders, iris desirable rhar this information is provided on a timely basis. The report should also be of a quality, desirable for meaningful decisions to be made. This study investigated the time it took parastatals in Botswana to have the annual report available. It also embarked on establishing the quality of the accounts, as ...
  • Article 4
    Edward D. Mwajabala
    The burgeoning literature on matching managerial skills to business strategy is a testimony to the fact that people now recognize the increasing importance of human resources in creating value and sustaining the competitive advantage of a firm. In the light of this, could employers in Tanzania follow this approach? This paper looks at the selection methods used by organizations in Tanzania and models of matching managerial skills to business strategy advocated by a number of authors. The paper then concludes that matching a manager to a business strategy needs learning. However managerial c...
  • Article 5
    Issac M. Mbeche, C. K. Lagat
    This paper, using data from factories and depots of KCC that handle UHT milk, develops a model for the optinal allocation of milk form factories to the depots in various parts of Kenya. In developing of this model, the paper takes into considereation the characteristics of individual depots, such as access roads, demand, storage capacities and KCC's distribution policy. By use of a case study approach, a transportation model is developed. It shows how distribution costs can be reduced through the use of operations Research (OR) modds. However, given the structure of the industry, the paper...
  • Article 6
    Joseph Shitundu
    Tanzania like many other Sub-Saharan African countries is facing a formidable challenge of creating many employment opportunities so as to be able to absorb, each year about 700,000 new entrants going into the job market or about 200,000 individuals who seek wage employment every year.Indutrialization is one of the ways which can help in dealing with this problem.Indeed the experinces of South-East Asian countries show that industrial growth can contribute to the creation of employment opportunities in a sustanable manner.Tanzania's experience however show that the relatively high output ...
  • Article 7
    T. A. Satta
    The role of banks and financial institutions in an economy is to provide means by which funds can be transferred from surplus units in the economy to deficit units. While playing this role, these institutions need to be regulated and supervised in order to have safe and sound banking systems. If not well imple­mented, however, these regulations entail substantial costs, which ultimately affect the banking system's efficiency. This paper examines whether or not supervision compliance costs are significant by applying regression analysis to the collected primary data. The results confirm the...
Vol 6 - 1 Issue
Vol 6 - Issue 2
  • Article 1
    Shilla Nangu
    The study makes an assessment of the effects of structural adjustment programmes introduced in Tanzania in living standard of the people. The author utilized a regression analysis model to regress several measures of living standard i.e. life expectancy at birth, infant mortality, accessibility to safe water, primary school enrolment and electric consumption per household 1 The study observed that during the period of 1975 to 1995 when the structural adjustment programmes were introduced, the GNP grew up and to some significant level improved the living standard of the general public. Howe...
  • Article 2
    Justin Katunzi
    The article addresses itself to the whole exercise of parastatal privatization. In essence it argues that before enterprises being privatized they played a major role in the economy of Tanzania. Reasons advanced as to why parastatals were formed include; private sector failed to meet public demand where private sector failed to invest in areas considered to be risky and other reasons. Privatization is seen as an external force hinging on the parastatals’ failure to operate economically and consuming a large share of public funds. In conclusion, problems are cited as to why privatization e...
  • Article 3
    Betty E. S. Machangu
    Overly expansionary monetary and fiscal policies, an incompatible exchange-rate policy and a repressive set of financial policies designed to divert resources toward the public sector "·ill clause widespread distortions and imbalances even in the short run. In this respect Capita/flights is1 important symptom of these policy- induced distortions. Capital flight is generally associated with the short-term outflows resulting from economic or political uncertainties in the home country. It involves ‘hot money’ that responds to political or financial crises, heavier taxes, a prospect...
  • Article 4
    Lenny Kasoga
    For eighteen years Tanzania adopted the Arusha Declaration as the economic development policy, a mode/that sought to develop the country along a socialist path. In response to a serious economic crisis that caused enormous suffering for the local population, due to the scarcity of consumer goods, balance of payment problems and the debt crisis e.r:perienced in the 1980's, socialism was quitely abandoned The purpose of this paper is to query whether the rush to implement capitalism may have similar negative consequences?
  • Article 5
    J. M. Monyo
    One of the major problems that face Tanzanian organizations is how to establish working capital requirements and how to effectively manage the available working capital in those organizations This Article presents the results of a study carried out in one such organization in Tanzania. Ther study explored the causes and implications of working capital problems and lessons that organizations in the country can draw from it.
  • Article 6
    G. S. Mnyele
    At least up to early 1990s most third world countries governments had been intensively participating in economic activities of their respective states. In many instances this has been in collaboration with Transitional corporations (TNCs).This article attempts to analyze the objectives that prompted the governments to enter into joint ventures with TNCs.it has been argued in the paper that such objectives were hardly achieved. The article ends up by proposing the new role of the governments in the current era of liberalization and globalization.
  • Article 7
    Kabeho Solo
    Despite the fact that in most countries today the service sector has become important little attention has been paid to the marketing of services by marketing authorities. Marketing courses and even the marketing discipline itself are heavily biased towards the marketing of physical goods. Literature on marketing has invariably always stressed that marketing applies to both goods and services but have tended to focus primarily on marketing of goods alone. This article begins with a review of the various definitions of services and examines their characteristics from a general and from a mar...
  • Article 8
    Mwitondi Kassim Said
    One of the basic principles of solving problems is separating the problem-solving phase from implementation. It is believed, in most cases, that if a correct algorithm is pursued in the problem-solving phase, then implementation is likely to lead to a desired solution. Sometimes however, the problem-solving phase is carried out and probably simulated, in an environment quite distinct from the one in which implementation eventually takes place. Even with a mathematically sound model, and an acceptable logical-flow of events what may be looked at as side-issues can seriously hamper implementa...
  • Article 9
    F. A. Mwaijande
    The understanding of cultural dimensions in organizational behavior is one approach of looking at specific elements under organizational behavior that could be considered in improving organizational performance. This article looks at corporate culture as an aspect of human life within an organization which has perpetual influence to a better or worse performance of corporations. It is being considered as a dynamic organization behavior which can improve organizational performance. The author puts the leadership role in the creating as well as communicating of desirable corporate cultures to...
  • Article 10
    Percy Ketsitlile, Onkutlwile Othata
    Much development has taken place in the advancement of Information Technology as a means of enhancing delivery strategies in all sectors of the economies of most developing and developed countries. However, one sector of the economy which appears to be left behind in developing countries in relation to incoporating IT into being an essential part of delivery strategies is the public sector. This paper examines current information gathering and processing strategies utilised by t e public se tor serVIce m Botswana and examines the implications of IT on the delivery of services m the Public...
Vol 5 - 2 Issues
Vol 5 - Issue 1
  • Article 1
    Wilson E. Herbert
    This paper examines the relationship between firm capitalization and stock returns in Hong Kong stock market. In particular the study looks at the effect of small capitalization on stock returns in the context of the marginal firm characteristics. Major attributes of marginal firm behavior tested are poor dividend pay-out and high financial leverage. While these features might be evident in bear periods in Hong Kong stock market, the results in general contradict the notion that investors have the tendency of buying large capitalization stock in bear market periods.
  • Article 2
    Christine M. S. Shekidele
    Most of developed and developing countries have adopted VAT with the main object of base broadening and increasing revenue. The most popular is consumption type VAT levied on the basis of destination principle. Our analysis of the experience of some developing countries has shown that a VAT that extends to retail level is preferable to pre-retail VAT. In order to avoid production and consumer distortion VAT should be impost-don both goods and services at a single (uniform) rate. However, the application of zero-rate on essential goods is inevitable in order to help poor households. To creat...
  • Article 3
    Edward Mwajabala
    In the wake of severe competition and falling productivity organizations have resorted to redundancy as a solution to the problem. While it is seen as the last resort, organizations facing industry decline whether temporary or long term, should respond in ways that are appropriate to their internal and external circumstances. Organizations should identify circumstances and conditions which would lead them· to choose the right personnel strategy to follow in response to industry decline.
  • Article 4
    Ignace M. P. Mowo
    In 1985, the government of Tanzania decided to liberalize the economy. Pursuant to this policy, the banking industry became competitive following the enactment of the Banking and Financial Institutions Act, 1991. The insurance industry which is part of the financial sector has, however; remained the monopoly of the National Insurance Corporation of Tanzania Ltd., the nations sole insurer for the last thirty-three years. The monopoly of transacting insurance business in Tanzania which has hitherto remained in the hands of the National Insurance Corporation of Tanzania Ltd. will come to an en...
  • Article 5
    H. K.M. Msalangi
    Before a livestock insurance scheme is introduced, an account should be made of the health condition of the animals to be insured. This includes the availability of veterinary medicines, the number of veterinary doctors and animal science experts a well coordinated extension services, and the infrastructure to support communication treatment of animals especially the availability and functioning of dips and accaricides. Other factors equal importance includes animal breed, identification, pasture and range development. Important above all is back up support of the Government.But somehow all...
  • Article 6
    Emmanuel L. Mkusa
    It is often claimed that Expert Systems ( ES) can profitably be used in developing countries whe re the number of trained professionals in any field is relatively small. This paper gives a brief description of the field of medicine in the Tanzanian context, provides a brief theoretical analysis of an ES, proposes some of the requirements which need to be met in developing an ES suitable for rural based health care delivery on the basis of a recent survey, and examines how Expert Systems could help to support and expand the existing structures providing medical and related care as. we...
  • Article 7
    J. M. Monyo
    "Any early warning signal of probable failure will enable both management and investors to take preventive measures; operating policy change, organization of financial structure, and even voluntary liquidation will shorten the length of time losses are incurred and thereby improve both private and social resource allocation"
  • Article 8
    B. E. S. Machangu
    When a deliberate excess of expenditure over income is carried out by the government, it takes the form of a budgeted deficit, financed by borrowing. either from foreign sources or domestic sources. Usually, the anticipated objective is to stimulate economic activity and employment by injecting more purchasing power into the economy. Whereas there is evidence to show that there is negative relating On between domestic savings on one hand and foreign borrowing on the other, the trend of the causation seems at least for the Tanzania case to nm from foreign borrowing to savings. The analys...
  • Article 9
    Kweku Okoso-Amaa
    Suppliers and users of IT products and services interact rigorously so that behaviors of both the sellers and users undergo changes. The buyer-users actively search for the suppliers who can provide the right service to solve their needs and problems. This trend has effected changes, not only in the marketing philosophy, but also in the organizational structures of IT _companies. The present study explores some of the pertinent change processes observed in practice and analyzed their marketing implications.
  • Article 10
    Ngassa Dindi
    The main thrust of this article is to advise on new Tanzania can tailor a clear legal basis to enable companies to provide financial assistance to employees who are interested in acquiring and holding shares. The paper argues that, in tailoring such law Tanzania can draw lessons from United Kingdom. The paper advises on how Tanzania can transplant the English law at the same time avoiding its hurdles.
  • Article 11
    John J. Kyaruzi, Robson J. Mgaya
    Almost every sector in business, applied or social science, etc. is involved in one way or the other with the creation, distribution, processing and/or use of information. Information and information technology is becoming so important to the success of organizations that managers of all organizations now feel the responsibility for managing the use of information and information technology like other resources, such as people, capital, facilities etc. However lack of common vision for the role of information, information technology and information systems may result into disasters and fru...
  • Article 12
    Patrick K. D. Mugoya
    It took four long years of earnest preparations before VAT could be introduced in the UK. Six years of careful examination, deliberations and try outs preceded the introduction of VAT in Korea in. 1977. Comparable experiences can be said to epitomize the advent of VAT in France, Italy and many other countries which successfully operate a value added tax of one sort or another. In Tanzania to the contrary, the VAT gestation period is conceived in terms of only a few months! Worse still there is so far no thorough going, per-determined plan of action for VAT initiation. Ye...
Vol 5 - Issue 2
  • Article 1
    Kami Rwegasira
    This paper focuses on MCS in a contemporary turbulent environment. The purpose of the paper is to argue out and Illustrate with field case facts, th(40for a MCS to. be effective, specifically in a contemporary rapidly changing socio-economic environment, the information sub-system therein and attendant information technologies tend to take centre­ stage in the MCS. Information system will tend to take centre stage largely because most of the changes and turbulence in the social-economic environment are' possibly driven by information technology (Toftler, 1990). And drawing on ...
  • Article 2
    Charles G. Inyangete
    Questions concerning the design of a completely new financial system for a country are no longer simply of academic interest. Increasingly policy makers around the world are embarked on fundamental changes to financial systems of their countries. The central theme of this paper is the focus on financial functions instead of financial institutions as the unit of analysis. The key role of any financial system is to facilitate the allocation and utilization of economic resources in a changing environment. Alternative approaches to the analysis of financial intermediaries are: first t...
  • Article 3
    N. S. Bonu
    The latest scene in the financial spectrum is privatisation. Privatisation without applying proper financial parameters is a suicidal and hence an attempt is made to introduce the parameters of financial analysis to test and find out the parastatal bodies which are fit to be privatised A case study of a few Botswana parastatals are taken as test cases
  • Article 4
    Ernest G. Kitindi
    Investors and bankers use information from financial statements. Financial information enables them to make sound investment decisions and to assess investment opportunities. Studies involving investors and investment analysts conducted in the developed economies of Europe and the USA, among others, sought to determine the type of information sought by those investor The studies also sought to determine the extent to which financial statements were used, or relied on. This study sought to identify the information needs of /ending and financing institutions in Tanzania by determining the ty...
  • Article 5
    Charles Okeahalam
    Parastatal reform is an important part of economic restructuring. Although there has been a recent recovery, on the whole, since independence in 1980 the financial and operational performance of National Railways of Zimbabwe (NRZ) has declined. This paper attempt to identify and evaluate the factors which determine the performance of this parastatal to permit ready focus for policy decision makers. Accordingly evaluate the recent financial performance of NRZ via ratio analysis. In the second part of the paper regression analysis is used to determine the factors which most influence the ...
  • Article 6
    M. Y. Bishagazi
    Leasing has never featured in Tanzania even though this financing option could be ideal given the prevailing tax laws and the mode of financing. The tax law prevents most of businesses from depreciating their assets. If their financing was in the form of leases then lease rentals would provide tax shield which is not available in the form of depreciation tax shield. And business organizations which use loan finance would charge both the capital portion and interest as business expenses in the form of lease rentals. This paper dwells on these issues after the basics of leasing have been re...
  • Article 7
    O. M. Urassa
    It is in the interest of the Bank Customers, particularly depositors, Central Bank, public and Government that the Bank and of course other financial institutions should continue to exist in providing its services for an enforceable future. The role played by financial institutions is also crucial to justify the need for stable financial system. This factor is manifested through various mechanisms established by the Central Banks and the Government to ensure that there is sustainable and efficient banking system in the daily running of activities by all interested parties The National Boar...
  • Article 8
    Godfrey B. Mollefe
    '"Ownership is less important than market structure in determining the performance (success) of firms” is the argument of this paper. It starts by defining the relevant terms. Secondly, it briefly distinguishes monopoly and perfect competition, being pertinent terms concomitant with market structure. It then proceeds to compare efficiency of a firm in a monopolist industry with that of a firm in perfectly competitive industry, both operating under the same cost and demand conditions. The significance of ownership to efficiency is then explored, followed by a discussion of managerial ...
  • Article 9
    Michael D. Nungu
    The theme of this paper is Total Quality Management (TQM). Quality is defined and costs of quality are explained. The paper argues that the prevailing competitive environment requires managers to seriously consider the introduction of TQM into their approach to manage organizations. The paper further highlights numerous advantages of TQM. The paper concludes with a caution that management commitment is the first most important requirement for TQM to succeed.
Vol 4 - 1 Issue
Vol 4 - Issue 2
  • Article 1
    J. L. Shitundu, G. D. Mjema
    For more than a decade now a number of Sub-Saharan Africa (SSA) countries have, willingly (or otherwise) accepted to implement Structural Adjustment Programmes (SAPs) as a response to serious economic imbalances that have dominated the economic atmosphere of the region since the late 1970s. Apart from declines in real Gross Domestic Product (GDP), rising inflation and chronic balance of payment deficits, the economic situation in the region worsened in the first half of the 1980s and most countries in the sub-region were compelled to undertake reforms with the view to address the cit...
  • Article 2
    S. V. Chinyoka, B. A. S. Magembe, N. J. Ronan, J. P. Shilinda
    The period of the late 1980s and early 1990 has witnessed the business community world over being increasingly concerned with trio aspects of productivity, efficiency and accountability. Discussions about these issues have tendered to cut across both the private as well as the public sector enterprises and, a group of researchers believe that the privatization of enterprises will provide the answers to the issues raised. This paper attempts to analyze concerns of efficiency, productivity and accountability ill a specific African country namely Botswana. In this country the levels of effici...
  • Article 3
    Emmanuel L. Mkusa
    While IT has had an impact in marketing performance, its use is giving a feedback to marketing. Marketing requires more information to improve performance and in this way is exerting IT to produce larger capacity equipment and systems. As companies in the IT industry produce and distribute more equipment and systems using marketing, the better understood is the marketing concept.
  • Article 4
    Christine M. S. Shekidele
    Sales tax was introduced in Tanzania in 1969 with the main object of increasing revenue and reduce reliance on income taxation which was then the major source of tax revenue. Being a single stage sales tax it has a narrow tax base which forced the system to have a unique and complex rate structure until 1989 when it was changed. The notable effect of such rate structure is rampant tax evasion. 111e revenue performance of sales tax, however, has proved to be satisfactory compared to other taxes. Preparations for the introduction of value added tax (VAT) are continuing with the aim of broade...
  • Article 5
    Gabriel Mnyele
    The downing of computer age with its attendant technological and scientific consequences has brought in new problems in relation to traditional regime of international and domestic regime of intellectual property law. For instance, if I may revisit the history, it cannot be disputed that the framers of Paris, Berne and Universal Copyright Conventions during the last century did not have in mind the issues and problems which have been encountered in relation to protection of computer programmes. Indeed, one is left but with the same conclusion with regard to the framer of the American Copyr...
  • Article 6
    Adam M. Mwandenga
    Tanzania's external debt has grown unchecked since mid 1970s. T le country's capacity to repay external debt did not match; neither was it considered in the loan procurement process. Pragmatism requires chat tile count'?' re-examine its commitment to external debt management by taking prerequisite measures that operationalize effective debt management. Some of tile essential ingredients for this management are: (i) Centralized location of all information on external borrowings, contributing to a sound data base. Such locus be given sufficient powers, status ad authority to ...
  • Article 7
    H. K. M. Msalangi
    Fires do not simply happen. They are almost always caused by a hazardous act. Lack of suitable written material 011 different causes of fires that have occurred in Tanzania makes it difficult to diagnose and suggest appropriate­ ate remedial measures to prevent their recurrence in future. Faulty approach by experts in identifying and analyzing causes of fires has also rendered the exercise to establish causes of fires to be mere guess-work. The "cause un­ known” syndrome has invariably featured in most reports submitted by Insurance Fire Loss Adjusters and Assessors. The Natio...
Vol 3 - 2 Issues
Vol 3 - Issue 1
  • Article 1
    Godwin Daniel Mjema
    The relationship between foreign aid and domestic savings of a recipient country has for a long period of time interested many researchers and policy makers. In this paper the debates on the impact of aid on domestic savings is not only reviewed but also applied to a specific case of Tanzania. Whereas there is evidence to show that there is a negative relation between domestic savings on one hand and foreign aid on the other, the direction of causation seems, at least for the Tanzanian case, to run from aid to savings. There is need, however, to further investigate the underlying causes of...
  • Article 2
    M. V. Mhina
    Industry and, indirectly, the consumer, have failed to pay for ait and water resources, treating them as "externalities” Thus, in one respect, the essential problem of environmental enforcement is to find methods and ways to compel industry and t consumer to assume the costs they have treated as external. This challenge entails giving a renewed attention to the subject of the role of sanctions in environmental enforcement. It is argued in this paper that regulatory activities in the field of environment ought not to rely wholly on essentially negative sanctions, whether ci...
  • Article 3
    H. M. Mujiga Saira
    The objective of this paper is to illustrate in a non-mathematical way how studies dealing with the efficiency and operation of the stock market may be made simple to understand without resorting to sophisticated mathematical and statistical techniques of analysis. It begins by examining the basic concepts used in various ARS dealing with the relationship between share prices and accounting information in the efficiency of markets. Other ARS that illustrate the role of accounting information in several phases of market efficiency are also discussed. A general critique of the weakness of...
  • Article 4
    M. J. Assad
    Ability of a country to generate foreign currency is a key aspect of economic health. Yet, contents of individual economic entities' financial reports in this country do not reflect information on such an important variable. The general body of users of financial reports’ information stand to benefit severally by inclusion of such information. However, outside corporate annual reports they would not have alternative information sources. Therefore, an argument is put forward for appending a foreign currency flow statement in published financial reports. Cost of providing that add...
  • Article 5
    Ngassa Mbassa Dindi
    One of the recently enacted legislation in Tanzania is the Fair Trade Practices Act, 1994 (hereinafter referred to as the Act)'. The main thrust of this legislation is (in the words of its long title) to encourage competition in the economy by prohibiting restrictive trade practices, regulating monopolies, concentration of economic power and prices, to protect consumer and to provide for other related matters. This paper is an attempt to make a dimensional analysis to the fourth part of this legislation. This part proclaims some positive rules which inter alia, regulates and controls the m...
  • Article 6
    L. Mselle, A. Hussein
    Computerization process must obey the predefined phases: problem definition, feasibility study, system analysis, design, implementation and maintenance. During these phases, if the aspect of user involvement is ignored the resultant system becomes either unmanageable, unsatisfactory and unproductive, unreliable inefficient or a combination of all.
  • Article 7
    J. M. Monyo
    Financial ratios have received a worldwide acceptance as effective tools for financial analysis. Although they are static measures of firms performance, empirical evidence has indicated that financial ratios signal increases in the probability of fa1lure for as much as five years prior to the failure of firms. The evidence therefore supports the contention that ratios do reflect the underlying events that affects solvency position and that they can be used as surrogates for the probability of fa1lure.
  • Article 8
    Suma C. M. Kaare
    The need for a comprehensive social security system in Tanzania s 1n response to the inadequacy of the existing system. The Inadequacy of the existing social security system is viewed on two counts, first, its coverage which leaves larger sections of the population (peasants, casual laborers, self-employed outside agriculture) uncovered. Second, its administration not only gives monopoly to the administering agencies but also limits clients (those covered) the rights to choose the type and form of social security scheme to be under. What is required in Tanzania is, a social security syste...
Vol 3 - Issue 2
  • Article 1
    P. J. Luoga
    It is clear that taxing pensions is not a popular arrangement. All pensioners would be very happy if the Government allowed payment of pensions free of tax. This paper explores the current scope of charging tax on pensions and explains the treatment of contributions and premiums payable to pension funds and insurance policies respectively. It is also pointed out that there is a need for exempting pensions from income tax. We also make suggestions on changing certain provisions of the Income Tax Act 1973 which deal with pension matters.
  • Article 2
    J. P. Mwandu
    Despite the narrow scope of coverage of social security schemes in Tanzania (so far being pure occupation list in nature), they also suffer from an additional weakness that they are inadequate in terms- of the 1evel of benefits payable, to the extent that pensioners in Tanzania 1ead a very difficult life. This paper tries to explore the various causes of the inadequacy of pensions payable from retirement benefits schemes in Tanzania, and suggests the possible measures to redress the situation.
  • Article 3
    Mwamini Tulli
    Accounting does not have to be the same in all countries. Accounting is a product of its environment in which it operates. This paper tries to explore environmental factors that can influence accounting practices of a country. Tanzania being a case study. After giving a general introduction, factors that generally can make accounting of one country to differ from another have been explained. The paper also explored in depth the accounting in Tanzania. It started with the general information on the formation of the National Board of Accountants and Auditors (NBAA), legal status and main act...
  • Article 4
    Mtenzi F. J., Kyaruzi J. J.
    Artificial Neural Systems (ANS) is a computer program that simulate processes by which human learning and intuition take place. Artificial Neural Systems are well suited to deal with output.In particular,artificial neural systems are most effectively applied to three areas - classification,associative memory and clustering. In that area of financial decision making, some potential applications include assessment of bankruptcy risk, identification of arbitrage opportunities and technical fundamental analysis.
  • Article 5
    J. L. Utouh
    In order to achieve its intended objectives the paper 1s divided into five parts. Part I is the introduction which lays the background for discussion. Part ii discusses the meaning of stress and stress response, characteristics and types of stress. Part III explores various causes of stress to women executives while Part IV narrates the effects of such stress. Part V discusses the potential strategies for managing stress while the conclusion summarizes the discussion and points the way forward for Women Executives in thriving with stress through the turbulent times and challeng...
  • Article 6
    H. K. M. Msalangi
    The purpose of this paper is to address to the reasons for which livestock is reared and the importance attached to insurance in protecting the reasons for having animals. The cost of insurance is unquestionably important as the rate of premium must be both affordable by livestock owners as well as yielding sufficient premium income to enable the insurance company to surv1ve
  • Article 7
    Leticia M. Warioba
    Safety management is probably not a very young profession. The role of any safety professional is to identify how and why accidents happen and to suggest control measures to limit their happening. Safety management describes how to establish and implement a safety function at an enterprise level. This paper, attempts to (a) give a background information on safety management (b) list down the principles of safety management, (c) point out the importance of safety management, (d) explain Accidents implication to industrial performance and (e) suggest som...
  • Article 8
    Mussa J. Assad
    Gender is an important variable in explaining experiences of human beings in all aspects of life; in word and outside work. Accountancy is one of the disciplines which were male dominated for a long while. But, compared to other professions, in this decade, more women are entering accountancy. However, they are still found in the lower levels of the professional continuum. Tanzania has few qualified women accountants and those attempting professional examinations are a small percentage of the total candidature. Indications show that their performance in examinations is not compa...
  • Article 9
    Shaaban S. Kapalatu
    "For unto everyone that hath shall be given, and he shall have abundance; but from him that hath not shall be taken away, even that which he hath" Matthew 25, 26 This paper analyses the structure of the Tanzania external debt position, Tanzania has a high debt­ servicing burden as measured by total debt service as a. percentage of e orts of goods and services plus private transfers. Debt rescheduling is not a solution to Tanzania's external debt. This paper attempts to highlight some of the measures needed to alleviate the problem.
Vol 1 - 1 Issue
Vol 1 - Issue 1
  • Article 1
    Amon Challigha
    Government regulation of business is a common phenomena both in govern­ment and business circles. Neither the government nor the business community can ignore this reality. And there are justifiable reasons for this strange state business relationship. Indeed, state (state is preferred to government which has a more limited usage) regulation of business must be considered in a wider perspective, as one of the many aspects of state business relationships. No business manager, let alone a financial manager can afford to ignore this relationship...
  • Article 2
    Fred Moshi, Liberatus L Shirima
    In recent years, growing public concern and pressure from various interest groups for austerity and accountability in the use of public resources had made the analytical approach to public policy formulation and evaluation exceedingly important. This descriptive analysis is an attempt to outline the principles governing the establishment and the role of parastatal organizations, their structure and management, as well as their problem areas.
  • Article 3
    Richard M Kavura
    In this presentation, we first explore the Tanzanian financial Marketing Scene in a bid to detennine its adequacy or inadequacy in the application of the marketing concept in our.financial institutions. The exploratory survey is achieved in Section Two of this paper. The following Section looks at what marketing and the marketing concept is. The aim here is to look at an "ideal" marketing philosophy and contrast it with the "practice" as seen in the preceding Section. Possible reasons for the failure of our banks 10 apply the marke...
  • Article 4
    S S. Kapalatu
    The purpose of this paper is to review the current exchange rate system in Tanzania in light of other macro-economic developments. Sustained trade liberalization must ultimately rest on market clearing exchange rate regime. Considering the importance changes in the nominal exchange rate for the overall stability of the Tanzanian economy, the authorities should at all times be capable of intervening the market, varying their foreign assets positions. This action of course, would lead to change in broad money supply. To be able to deal with the unwanted consequences of these changes the auth...
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Email : vincent.msonge@ifm.ac.tz
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