The Accountancy and Business Review

Challenges Facing Sustainability of Performance Management System in Public Sector in Tanzania: A Critical Analysis of Open Performance Review and Appraisal System in the Commission for Mediation and Arbitration–Arusha

Adolf Kamwela Anosisye — 2024-08-03

This study assessed the challenges facing sustainability of performance management system in Tanzania Public Sector: A critical analysis of Open Performance Review and Appraisal System in the Commission for Mediation and Arbitration (CMA) - Arusha. The study was guided by three specific objectives which were to; explore the participation of employees in goals setting in the performance management system at the CMA, examine the effectiveness of the implementation of the goals in the performance management system at CMA and identify the influence of employee rewarding on the effectiveness of the performance management system at CMA. The study adopted Models and one Theory namely Theory “S” of Sustainability of Performance Management System. The study employed a mixed method case study design. The study involved 15 respondents who were the whole target population, with purposive sampling techniques. Data were collected through questionnaires and interviews. Questionnaire data were analyzed through descriptive statistics while interview data were analyzed through content analysis. The findings of the study revealed that a considerable number of workers in Tanzania do not understand well how to use the performance management system in place (Open Performance Review Appraisal System). Participatory goal setting was found to be challenging since most of employees are not given sufficient autonomy to identify and discuss what they are supposed to achieve. More on that goal implementation has been also affected by the fact that organizations are allocated with limited resources. The study recommends designing and implementation of capacity building programs to help employees from public sector organizations mastering the use of Open Performance Review Appraisal System. It obvious that, supervisors and managers should insist participatory goal setting to stir-up motivation and commitment of employees. The study concluded by encouraging the government to increase budget allocation in performance management system to increase employee performance.

Enhancing National Security: Integrated Border Management Strategies at the Namanga Border in Arusha Tanzania

Lusekelo John Mwakangale — 2024-08-03

This study investigated the integrated border management strategies used for national security at the Namanga border in the Arusha Region of Tanzania. The aim was to identify these strategies and examine the challenges they face. The study was guided by the Panic Theory of Border Control, the Mutual Benefits Theory, and the Segmentation Theory. A mixed-method approach with a parallel convergent research design was used. Data were collected using interview guides and questionnaires. Cluster-based simple random and purposive sampling was employed to select 44 respondents, including 18 immigration officers, 5 customs officers, 12 police officers, 8 clearing and forwarding officers, and 4 heads of departments from immigration, police, customs, and clearing/forwarding offices. Quantitative data were analyzed descriptively, while qualitative data were thematically analyzed. The findings revealed that the integrated border management strategies included intra-service cooperation, inter-agency cooperation, and international cooperation. Intra-service strategies involved cooperation between central, regional, and local levels and information exchange within one ministry/agency. Inter-agency strategies included coordinated processing at border crossings and awareness-building among agencies. International strategies comprised local cooperation between officials on both sides of the border, bilateral cooperation between neighboring countries, and multinational cooperation. Major challenges identified were the lack of adequate and relevant tools and infrastructure; lack of customs harmonization, corruption, border disputes, insufficient staff, inadequate communication technology, and poor coordination within and among agencies. The study recommends that the Ministry of Foreign Affairs and East African Cooperation work towards improving coordination and cooperation among all agencies at the Namanga border.

Assessing the Impact of Foreign Direct Investment on the Manufacturing Sector in Developing Countries: Empirical Evidence from Tanzania

Ahobokile H. Mwakasungula — 2024-08-03

The present study aimed to investigate the impact of foreign direct investment (FDI) inflows on the manufacturing sector's performance in developing countries, focusing on Tanzania. Using a non-experimental explanatory research design and a quantitative approach with time series data, the study aims to generalize the results to the entire population. A sample size of 32 annual observations from 1990 to 2021, sourced from international organizations, was employed. Data analysis involved multiple linear regression using the Ordinary Least Squares (OLS) method. Diagnostic tests addressed potential time series data issues, and STATA software facilitated econometric techniques. Findings indicate a significant positive correlation between FDI and manufacturing value added (MVA) in Tanzania. The ARDL bounds test established a long-term equilibrium relationship between FDI, MVA, GDP, and the inflation rate. Notably, a 1.961 unit increase in MVA corresponds to a unit rise in real GDP, with a 0.08 unit decrease linked to a unit increase in inflation. The error correction model shows a 0.66 percent adjustment from short-run to long-run equilibrium. Granger causality results suggest a bi-directional causal effect between MVA and FDI, with MVA causing FDI. Diagnostic tests confirm the model's stability, normality, and absence of serial correlation or heteroscedasticity. In conclusion, the study highlights FDI's positive role in propelling manufacturing sector growth in Tanzania, contributing to economic development and employment generation. Recommendations for Tanzanian policymakers include creating a conducive environment for FDI in the manufacturing sector, emphasizing policies to ease business operations, encourage technology transfer, and address inflationary pressures.

An assessment of the Effects of Government Policies on the Development of Tourism Industry in Tanzania: A Case of Meru District Council

Glory Itael Ndossa — 2024-08-03

Meru District Council is facing the problem of poor development of tourism industry due to poor implementation of government policies related to this industry. In response to the problem, the current study aimed to assess the effects of government policies on the development of tourism industry in Tanzania. A case of Meru District Council. The study was guided by three specific objectives which were to; - evaluate the interdependence between government policies and investment in the tourism industry in Tanzania, identify the government policies implemented to promote the development of the tourism industry in Tanzania as well as examine the relationship between government policies and infrastructure development of the tourism industry in Tanzania. The study was guided by the two theories namely;- Policy diffusion theory and Sustainable Development theory to guide this study effectively. The study employed a mixed method case study design. The study involved a sample size of 144 respondents with stratified and purposive sampling techniques. Data were collected through questionnaires and interviews. Data analysis methods were descriptive statistics and content analysis. The study findings discovered the government of Tanzania has tried to put an effort on policy formulation related to tourism activities however there is poor emphasis in their implementation resulting into unsatisfactory tourism investments as well as poor infrastructure systems. The study concluded that this situation has been affected by several challenges such as poor government support and lack of awareness among the community and stakeholders. Thus the government must support effectively this industry by implementing the existing government policies and cooperate well with all tourism stakeholders. The study recommends policy makers at the Ministry of Natural Resources and Tourism to adhere the decentralization by devolution policy by allowing the tourism stakeholders to participate fully in the policy formulation process and implementation.

An Investigation of joint significance of economic growth and inflation rate on unemployment rate in Tanzania

Rashid Suleman — 2024-08-03

This study aims at investigating the joint significance of economic growth and inflation rate on unemployment rate in Tanzania using time series data for the period of 1990-2021. Quantitative research approach was used. The study used only secondary data to achieve its main objective. In data analysis, the researcher employed Dynamic Ordinary Least Square (OLS) method as a basis of estimation because of its superiority in taking care of simultaneity and small sample bias. To ensure reliability result of the study and hence validity, the researcher applied different test in solving the problem such as using ADF and PP test for unit root. Moreover, through obtaining data from approved credible source, the researcher ensured validity of data and information as well as reliability of data. The researcher observed all ethical issues throughout the study. The findings of this study revealed that gross domestic product (GDP) and inflation rate have effects to unemployment rate in Tanzania. The regression output model showed that inflation has a positive effect to unemployment rate while gross domestic product has a negative effect to unemployment rate in Tanzania. The recommendations made in this study include, Policy makers need to use monetary policy instruments in boosting up the economic growth while maintaining inflation rate at a very moderate level as high inflation rate is the sign of economic instabilities, and efforts should be made by the policymakers in Tanzania to increase the level of output in the economy by enhancing on productivity in order to reduce unemployment rate.

Dividend Policy and Share Price Valuation of Listed Commercial Banks in Tanzania

Gregory Dominick Lyimo — 2024-09-11

Dividend payment signals good news to investors. Thus, it influences firm share price valuation. Over time, two contradicting theories have propounded the relevance and irrelevance of dividend policies to influence firm share price valuation. Despite the existence of the irrelevance theory, dividend payment has remained a key financial decision of corporate managers that has impacted firm’s share price valuation over time. Therefore, this study aimed at examining the effect of dividend policy on share price valuation of commercial banks in Tanzania. Specifically, the study examined the influence of four dividend policy proxies: dividend per share, dividend payout ratio, dividend yield and propensity to pay dividends on share price of commercial banks. The study used panel data extracted from annual reports of four listed commercial banks from 2011 to 2022. The study used Panel Corrected Standard Error (PCSE) regression estimator in estimating the relationship. The findings revealed that dividend per share, dividend payout ratio and propensity to pay dividends have a profound positive influence on share price of commercial banks in Tanzania. The findings showed that when management efficiently utilises profit to pay dividends, it affects positively share price of commercial banks. However, it was only found that dividend yield is significantly inversely linked with share price of commercial banks in Tanzania. This implies that an increase in dividend yield affects significantly negatively share price of commercial banks. In general, the findings support the dividend relevance theory and corporate managers are advised to maximise payment of dividends to enhance the share price valuation of commercial banks.