Market system analysis of furniture industries in Temeke, Dodoma and Handeni Districts, Tanzania
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Date
2021
Authors
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Journal ISSN
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Publisher
Sokoine University of Agriculture
Abstract
Tanzania has diverse livelihoods activities, some of them are furniture manufacturing
industries. Due to trade liberalization, furniture is also imported by various traders.
However, the amount of furniture demanded is still higher compared to what is
manufactured. The study aimed at analyzing the market system of the furniture industry
in the Dar es Salaam, Dodoma, and Tanga regions. Specifically, the study examines the
value chain development of the industry, analyses the supportive functions for the
industry, and assesses the business environment for the industry . Data was collected using
a questionnaire survey, key informant interviews, focus group discussions, direct
observations and secondary materials. The information gathered was analyzed both
content-wise and statistically. Generally, the field results revealed that an average of
64.7% of respondents in the study area invest up to 5 million, and 35.3% above 5 million
up to 200 million. The most used tree species for furniture were Afzelia quanzensis,
Pterocarpus angolensis, Eucalyptus spp. and Acacia nilotica (Mberiti), while Comoro
Island and Mozambique were the top countries importing furniture from Tanzania.
For supportive functions, 79% of respondents work under unfriendly infrastructure, only
11.1% of respondents received capacity-building training, and 58.4% of respondents
reported accessing financial services. In the business environment, 85% of respondents
were aware of the rules and regulations while 15% were not aware. For those who were
aware, only 18% complied with the available rules and regulations that guide the industry.
The study reveals that, the industry is dominated by micro and small industries, which
still demand some improvements to become large and competent enterprises. The study
recommends focusing on product quality (skills and capacity), financial support for
businesses (finance), innovation, lower operational costs (taxes, levies), and export
promotion.
Description
Dissertation
Keywords
Market system analysis, Furniture industries, Trade liberalization, Temeke District, Dodoma District