Business practices in Tanzania exhibit regional variations influenced by socio-economic factors such as climate, infrastructure, and governance. A mixed-methods approach including surveys and qualitative interviews was employed to gather data from a stratified sample of businesses across four major regions: Dar es Salaam, Lake Victoria, Kilimanjaro, and Southern Highlands. There is a significant disparity in business practices between the Kilimanjaro region, characterized by traditional agricultural-based enterprises, and the urbanized Dar es Salaam region, with its emphasis on modern services and manufacturing industries. Specifically, 60% of businesses in rural areas rely solely on cash transactions compared to only 35% in urban centers. The findings highlight the importance of regional context in shaping business practices, underscoring the need for tailored policies that address specific challenges faced by different regions. Policymakers should develop region-specific interventions aimed at improving infrastructure and reducing transaction costs in rural areas to enhance economic integration and competitiveness.
Chituwo et al. (Sat,) studied this question.