Financial Inclusion and Cluster-Based Industrialization

There are two related lines of arguments which forms twin objectives for this study. The first is to assess how financial inclusion may spur industrilization in Africa,  and the second is to assess how industrialization may prosper where there is clustering of SMEs/industrial activities in Africa. The study employs a quantitative approach where regression analysis is used employing secondary data from the World Bank Development Indicators for Seven African economies. The study found that clustering promotes industrial growth. It has also found lack of evidence for the role of financial inclusion in promoting industrial growth. It also did not find statistical evidence for joint effects of these factors on industrialization. It calls for policy dressing and specific researches in the areas of clustering properties and financial inclusion and their effects on industrial growth

Capital Structure Variability of Firms Listed on the Dar es Salaam Stock Exchange: Assessing the Role of Product Diversification

This study investigated the capital structure variability of firms listed on the Dar es Salaam Stock Exchange by assessing the role of product diversification. It was led by four objectives and tested ten hypotheses. The objectives were; to assess the levels of capital structure variability, product diversification variability, effect of conventional factors on capital structure variability and effects of product diversification on capital structure variability of firms listed in Tanzania. The study employed an unbalanced panel data of 11 listed campanies from 1997 to 2014, making a total of 128 firm years. It used both static and dynamic regression analyses. The results indicated that capital structures of companies in the sample varied over time and across companies. Product diversification in its various types indicated variability over time and across companies. Both total product diversification and unrelated product diversifications were significantly positively related to capital structure. Related product diversification was significantly negatively related to capital structure. Asset tangibility, growth opportunity and non-debt tax shield were positively and significantly related to capital structure. Company size, risk of bankruptcy and going concern were either positively or negatively related to capital structure depending on the group of analysis involved. Profitability was negatively related to capital structure. Firms in Tanzania need to take into accounts product diversification among other capital structure determinants when planning for capital structure of their firms. The type of product diversification undertaken by a firm matters in capital structure decisions. Thus, managers need to consider their potential effects in managing the firms’ capital structure

A Review of the Impact of Reforms on Financial Viability and Sustainability of Tanzania’s Power Sector

In Tanzania, reforms were mooted in the 1990s to solve two intertwined problems; the financing of investment and reducing the fiscal drain on the government to the sector. This study deploys the ARDL Model and paired-sample t-statistic tests, with profitability and liquidity data from 1989 to 2020 to examine the impact of the reforms on sectoral financial condition in Tanzania. The results suggest that both profitability and liquidity did not significantly improve after reforms. Apart from commercialization policy, other variables were not statistically significant with privatization and liberalization law exerting a negative pressure on liquidity. The findings, therefore, appear to contradict the theoretical view that the reforms improve the financial condition of both the sector and the governments. The outcome can be explained by unfinished reforms manifested by continued politicization of the sector hence underpricing and underinvestment. To ensure sectoral financial viability and sustainability we recommend that the reform policies such as commercialization, corporatization, and independent regulation should be prioritized. These findings will add value to policymakers in Tanzania and beyond which are reforming their power sectors by recognizing that efficient pricing and investment are key for a viable and sustainable financial condition of the sector

Financial service access and agriculture commercialization of smallholder rice growers in Kilombero District: The moderating role of institutional cultural cognitive

The study was conducted in Tanzania to assess the effect of financial service access on the agricultural commercialization of smallholder rice growers in Kilombero under the moderating effect of institutional cultural cognition. Primary data were collected from 397 smallholder farmers, and after data cleaning, we remained with 358 responses subjected to regression analysis. Data were analyzed using hierarchical multiple regression analysis with the help of IBM SPSS software. The findings revealed that financial service access significantly positively affected commercialization. Also, the results confirm that institutional cultural cognition has a significant negative moderation effect on the relationship between financial inclusion and agriculture commercialization. The results suggest that reducing cultural cognition can increase financial service access. So, if the wrong perception and beliefs of the poor and marginalized society toward formal financial services can be reduced, then access to formal financial services will be increased, thus improving the level of agriculture commercialization. Also, we recommend that policymakers and the government set policies to reduce the cost of accessing financial services and enhance financial services availability

Financial service access and agriculture commercialization of smallholder rice growers in Kilombero District: The moderating role of institutional cultural cognitive

The study was conducted in Tanzania to assess the effect of financial service access on the agricultural commercialization of smallholder rice growers in Kilombero under the moderating effect of institutional cultural cognition. Primary data were collected from 397 smallholder farmers, and after data cleaning, we remained with 358 responses subjected to regression analysis. Data were analyzed using hierarchical multiple regression analysis with the help of IBM SPSS software. The findings revealed that financial service access significantly positively affected commercialization. Also, the results confirm that institutional cultural cognition has a significant negative moderation effect on the relationship between financial inclusion and agriculture commercialization. The results suggest that reducing cultural cognition can increase financial service access. So, if the wrong perception and beliefs of the poor and marginalized society toward formal financial services can be reduced, then access to formal financial services will be increased, thus improving the level of agriculture commercialization. Also, we recommend that policymakers and the government set policies to reduce the cost of accessing financial services and enhance financial services availability