Resource information
Tanzania's Pilot Rural Investment
Climate Assessment (RICA) measures the economic environment
of non-farm entrepreneurs. The pilot assessment has three
key objectives: it aims to better understand the rural
non-farm economy in Tanzania, shed light on rural enterprise
dynamics and business constraints, and reflect on areas
where government policies are readily directed to help
promote rural non-farm enterprise activity. The RICA is
based on an analysis of a unique survey data set collected
by the National Bureau o f Statistics (NBS) during January
and March 2005, covering enterprises, households, and
communities in all seven geographical zones of the country.
Some of the main findings of the study are: 1) Rural non
farm enterprises matter; 2) Tanzanian rural non farm
enterprises differ from their urban counterparts; 3) Rural
trade dominates; 4) Labor productivity is low; 5)
Registration is associated with higher labor productivity;
6) The rate of new firm creation appears to be lower than in
other African countries; 7) A minority of enterprises
propels employment growth; and 8) Due to relatively rapid
agricultural growth in recent years, demand exists for more
rural non-farm economic activity. However, entrepreneurs are
now constrained mainly from the supply-side in their
response to this increased demand.
