Role of the Union in Promoting Economic Development Regarding Trade Opportunities: A Case Study for Zanzibar.

Nassor, Mohamed Mansour (2023) Role of the Union in Promoting Economic Development Regarding Trade Opportunities: A Case Study for Zanzibar. Masters thesis, The Open University of Tanzania.

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Abstract

The study sought to examine the significant contribution of the union on the economic development of Zanzibar. This study employed a descriptive research design together with the aid of both quantitative and qualitative approaches. The study conducted in two districts of Zanzibar; Urban district Ungujaand ChakeChake district in Pemba. The study involved 100 respondents selectedfrom the traders in community, government leaders and owner of business companies and managers. This study adopted both a quantitative and qualitative approach.The quantitativedata were collected through questionnaire provided to 90 respondents, while qualitative data were collected through In-Depth Interviews (IDS),Secondary data were obtained through Documentary review. The Data collectedwere also analyzed through using SPSS and Microsoft excel computer package. The study found out that, the Union government has done much on the growth of businesses in Zanzibar. Among the benefits mentioned was the creation of conducive environments of trade, investment and market, the financial and human capital development and easy access of market. Furthermore, the findings noted that availability of market for Zanzibar’s products especially agricultural products likes cloves to get market in the Tanzania mainland enabled traders to expand their business and create employment opportunities from Unguja and Pemba Islands. Other traders of imported goods such as electrical products like TV, radio, fan and refrigerator have been also sold in the mainland Tanzania. The study concluded that the union between Tanganyika and Zanzibar have benefited majority of Zanzibar economic development in terms of growth of trade, growth of market for Zanzibari commodities and generation of employment opportunities though trade.However, regardless the benefits and opportunities,Zanzibari traders are encountered by some challenges such double taxation, high tax rates and low competitive advantage. Moreover, the study recommends that policymakers are required to identify the business environment which should be favorable to traders. Key words: Union, economic development, traders

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